Document:

Letter Agreement-Tod Nielsen

 Exhibit 10.34 
 [VMware, Inc. letterhead] 
 Tod Nielsen 
 Dear Tod, 
 We are pleased to offer you a position with VMware, Inc. (the “Company”) as Chief Operating Officer,
commencing on January 5, 2009. You will report to Paul Maritz, the Company’s CEO. Your annualized base salary of $600,000 will be paid semi-monthly in accordance with the Company’s normal payroll procedures. You will be eligible to
participate in the Company’s benefit plans and programs available to our full-time regular employees. 
 You will be eligible to earn a performance
bonus in accordance with VMware’s bonus program as it may be amended from time to time. Currently, you will be eligible to earn a bonus with an annual target of 100% of your annual base salary, on a prorated basis from your date of hire through
the end of the applicable bonus period. At this time, eligibility and the amount of the bonus, if any, is based upon your performance and that of the Company. 
 A one-time sign-on bonus of $120,000, less applicable withholdings and deductions, will be paid to you within 45 days of your start date. If you voluntarily terminate employment on or before the first anniversary of your start date with the
Company, you agree to reimburse the net amount of the bonus within 10 days of your termination date. 
 The Company will also provide you with an executive
relocation package which is described in Attachment A. Should your employment with Company terminate voluntarily or with Cause (as defined below) within two years of your starting date with the Company, all relocation reimbursements and payments
made on your behalf must be repaid according to the following schedule: 
  

	 	•	 	 Payment in full if the termination of employment occurs within one year of your start date; 

  

	 	•	 	 50% repayment if termination occurs between one and two years of your start date; 

  

	 	•	 	 No repayment is required for termination after two years of your start date. 

 As a key employee of VMware, a recommendation will be made to the Compensation and Corporate Governance Committee (the “Committee”) of the Board of Directors that you be granted a non-qualified stock option
to purchase shares of VMware Class A common stock and restricted stock units as detailed below at an upcoming meeting of the Committee following your date of hire. The vesting, exercise price and other terms of the stock option and restricted
stock units, as applicable, will be set by the Committee at that meeting. Any stock option and restricted stock units granted to you will be governed by the terms and conditions of the applicable grant agreement and the VMware 2007 Equity and
Incentive Plan. The details of the grant recommendation are as follows: 
 Stock Options 
 You will be recommended for a non-qualified stock option to purchase 400,000 shares of VMware Class A common stock. Subject to the terms of the
VMware 2007 Equity and Incentive Plan and the stock option agreement, this stock option will vest over four years, with 25% of the shares subject to the option vesting on the first anniversary of the date of grant and monthly thereafter at a rate of
2.0833% of the shares subject to the option. The option exercise price will be equal to the fair market value of VMware Class A common stock on the date of the grant. 
 Restricted Stock Units 
 You
will be recommended for a grant of 200,000 restricted stock units (the “RSUs”). Subject to the terms of the VMware 2007 Equity and Incentive Plan and the restricted stock unit agreement, these restricted stock units will vest over four
years, with 25% of the restricted stock units vesting on each anniversary of the date of grant (the “Grant Date”). 

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 Change in Control 
 If there is a Change in Control (as defined below), in lieu of any other severance or termination compensation (unless otherwise required by law), 50% of any unvested RSUs (from the recommended grant of 200,000 RSUs,
described above) and 50% of any unvested stock options (from the recommended grant of 400,000 shares, described above) will become immediately vested (“Change-in-Control Acceleration”) in the event that: 
 1. The Company terminates your employment without Cause (as defined below) during the first twelve months after a Change in Control, or 
 2. You terminate your employment for Good Reason (as defined below) during the first twelve months after a Change in Control. 
 Definitions 
 1. For purposes of this
offer letter agreement, a Change in Control will be deemed to have occurred if: 
 (a) any Person (as defined below), is or becomes the
Beneficial Owner (within the meaning set forth in Rule 13d–3 under the Securities Exchange Act of 1934, as amended (“the Exchange Act”)), directly or indirectly, of securities of the Company representing 35% or more of either the then
outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with (b) below; 
 (b) there is consummated a merger or consolidation of the Company with any other corporation, other than (i) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent
thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any
securities acquired directly from the Company or its affiliates) representing 35% or more of the combined voting power of the Company’s then outstanding securities; or 
 (c) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power
of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 
 Notwithstanding anything in the foregoing to the contrary, no Change in Control shall be deemed to have occurred for purposes of this offer letter
agreement by virtue of (i) any transaction which results in you, or a group of Persons in which you have a substantial interest, acquiring, directly or indirectly, 35% or more of either the then outstanding shares of common stock of the Company
or the combined voting power of the Company’s then outstanding securities or (ii) EMC Corporation’s (“EMC”) distribution of the Company’s shares in a transaction intended to qualify as a distribution under section 355
of the Internal Revenue Code of 1986, as amended. 
 2. For purposes of this offer letter agreement, the occurrence of any of the following
shall constitute “Cause,” provided that you have been given notice by the Company of the existence of Cause and, if the existence of Cause is curable, a reasonable opportunity to cure the existence of such Cause: 
 (a) willful neglect, failure or refusal by you to perform your employment duties (except resulting from your incapacity due to illness) as reasonably
directed by the Company; 
 (b) willful misconduct by you in the performance of your employment duties; 

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 (c) your indictment for a felony (other than traffic related offense) or a misdemeanor involving moral
turpitude; 
 (d) your commission of an act involving personal dishonesty that results in financial, reputational, or other harm to the
Company and/or its affiliates and/or its subsidiaries, including, but not limited to, an act constituting misappropriation or embezzlement of property; or 
 (e) your material violation of VMware’s Key Employee Agreement and/or a material violation of any other VMware policies including but not limited to the Business Conduct guidelines. 
 The determination of Cause will be made by the Company in its sole discretion. 
 3. For purposes of this offer letter agreement, “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) EMC, the Company or any of their respective subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or any of its affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities and (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company. 
 4. For purposes of this offer letter agreement, “Good Reason” for
termination by you of your employment shall mean the occurrence (without your express written consent) of any of the following: 
 (a) any
materially adverse alteration in your roles, titles, reporting relationship or in the nature or status of your responsibilities; 
 (b) a
material diminution by the Company in your Base Salary (excluding a reduction that also is applied to all other executive officers of the Company and that reduces your Base Salary by a percentage reduction that is no greater than the lowest
percentage reduction applied to any other executive officer); or a material diminution by the Company in your aggregate annual bonus target; 
 (c) the relocation of your principal place of employment to a location more than seventy-five (75) miles from your principal place of employment immediately prior to such relocation; or 
 (d) a material breach of this letter agreement. 
 In order
for you to invoke a termination due to Good Reason following a Change in Control, as described above, (A) you must provide written notice to the senior officer of VMware’s Human Resources group of your intention to terminate due to such
condition within 90 days of the initial existence of such condition and provide VMware with 30 days from receipt of the notice to remedy such condition, and (B) VMware must fail to remedy such condition within the 30 day cure period.”

 The Company agrees to provide assistance to you in securing and maintaining authorization for employment in the U.S. in accordance with the terms of our
Immigration Policy, a copy of which is included with this letter. You will be asked to sign this document on your first day of employment with the Company. Furthermore, given the nature of your particular immigration situation, the company retains
sole discretion to determine what efforts, if any, it will take to secure or maintain your future authorization for employment in the U.S., if and when your permission to work in the U.S. has otherwise lapsed. 
 You should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time,
for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. 
 You agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company
is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. 

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 On your first day of employment you will be asked to submit verification of your legal right to work in the U.S., and to
sign and comply with our Key Employee Agreement which requires, among other provisions, the assignment of patent rights to any invention made during your employment at VMware, non-disclosure of proprietary and confidential information and compliance
with VMware’s Conflict of Interest Guidelines. As a VMware employee, you will be expected to abide by company rules and regulations. 
 This letter,
along with the standard employee agreement, contains all of the terms, promises, representations, and understandings between the parties regarding these matters prior the date hereof. To indicate your acceptance of the terms and conditions set forth
in this letter, please sign and date it in the space provided below and return it to me. A duplicate original is enclosed for your records. 
 This letter
may not be modified or amended except by a written agreement, signed by an officer of the Company and by you. 
 We are looking forward to having you join
VMware. 
  

							
	Sincerely,	 	
			
	 /s/ Betsy Sutter
	 		 	
	Betsy Sutter	 	
	Vice President, Human Resources	 	
		
	ACCEPTED AND AGREED TO this 2nd day of January, 2009.	 	
				
	 /s/ Tod Nielsen
	 	Start Date:	 	 1/5/09
	 	
	Tod Nielsen	 		 		 	

 Attachment A 
 TN – Executive Relocation Package Details 
  

			
	Household Goods Shipment	  	 •     Packing, Transporting and Insuring (20,000 lbs Cap)
  
 •     Customary
Crating
  
 •     Appliance Services
  
 •     Two Automobiles, if over 500 miles
  
 •     No Bulky Articles
  
 •     Homeowner: 60 days of
storage

		
	Final Move	  	 •     For one person
  
 •     One-Way Economy Airfare
if over 500 miles or
  
 •     Mileage for two cars at current rate, (each car must travel 400 miles/day)
  
 •     Reasonable meals and lodging

		
	Home Finding Trip	  	 •     For one person
  
 •     Homeowners - 1 Trip (7
days/6 nights)
  
 •     RT Economy Airfare or mileage for one car at current rate
  
 •     Meals, Lodging and Rental Car for employee and sig. other

		
	Departure Home Sale Assistance	  	 •     SELL SMART!SM
Marketing Assistance
  
 •     Customary Closing Costs (no points/pre-paid) up to 8% of the selling price

		
	 Destination Home Purchase
 Assistance
	  	 •     BUY SMART!SM 
Assistance
  
 •     Must have been homeowners previously
  
 •     Customary Closing Costs (no points/pre-paid) up to 2% of the purchase
price

		
	Misc. Allowance	  	 •     $7000

		
	Tax Gross-Up	  	 •     Equalization2009 Executive Bonus Program

 Exhibit 10.35 
 VMware, Inc. 
 2009 Executive Bonus Program 
 Executive Bonus Program Objectives 
 Among the objectives of
the VMware Bonus Program – 2009 are to: 
  

	 	•	 	 motivate our executives to achieve our strategic, operational and financial goals 

  

	 	•	 	 reward superior performance 

  

	 	•	 	 attract and retain exceptional executives; and 

  

	 	•	 	 reward behaviors that result in long term increased stockholder value 

 Overview 
 The Compensation and Corporate Governance Committee has adopted a cash bonus program relating to
performance in 2009 (the “2009 Program”) under the 2007 Equity and Incentive Plan (the “Plan”) providing for possible cash bonuses to specified executives of VMware, Inc. and its consolidated subsidiaries (the
“Company”). Unless otherwise indicated herein, provisions of the Plan shall apply to the 2009 Program. 
 In keeping with VMware’s philosophy
of tying a substantial portion of our executive compensation to the achievement of measurable achievements, a goals-based cash bonus program has been developed and implemented. The determination of bonus payout will be made semiannually after the
conclusion of the semi-annual measurement periods ending on June 30 and December 31 based on results achieved by the company, as reported to the Compensation and Corporate Governance Committee by the Corporate Controller. Bonuses will be
determined by the Compensation and Corporate Governance Committee of the Board of Directors (the “Administrator”). Bonus payments will only occur if certain predetermined company and individual (“MBO”) objectives are successfully
achieved. 
 Bonus awards represent an unfunded, unsecured promise by the Company to pay a bonus amount determined by the Compensation and Corporate
Governance Committee to each Participant, but only upon satisfaction of the performance criteria determined by the Compensation and Corporate Governance Committee in accordance with the provisions set forth below. 
 Eligibility 
 All senior executives are eligible to be
considered for participation. However, no person is automatically entitled to participate in the 2009 Program. Participants will be approved solely at the discretion of the Compensation and Corporate Governance Committee and may be amended at any
time by the Compensation and Corporate Governance Committee. Additionally, the executive must be an employee of the Company at the time the bonus is paid out in order to vest in right to receive payment. 
 Participants may include officers of the Company as defined under Rule 16a-1 of the 1934 Securities Exchange Act (“Section 16 Officers”) and other senior
executives who are not Section 16 Officers. At its discretion, the Compensation and Corporate Governance Committee may delegate authority to the Chief Executive Officer to add senior executives who are not Section 16 Officers to the 2009
Program. 
 Administration 
 As Administrator, the
Compensation and Corporate Governance Committee is ultimately responsible for administering the 2009 Program. The Administrator has all powers and discretion necessary or appropriate to review and approve the 2009 Program and its operation,
including, but not limited to, the power to (a) determine Participants, (b) interpret the provisions of the 2009 Program, (c) adopt rules for the administration, interpretation and application of the 2009 Program consistent with the
Plan, and (d) interpret, amend or revoke any such rules. All determinations and decisions made by the Administrator and any decision 

 
of the Administrator shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. The Administrator, in
its sole discretion, may amend or terminate the 2009 Program, or any part thereof, at any time and for any reason, subject to the limitations set forth in Sections 3, 6(b)(iv) and 7 of the Plan. 
 The Administrator shall exercise full authority to make final determinations with respect to bonuses granted under the 2009 Program to Section 16 Officers. The
Administrator may, in its discretion, delegate authority over bonuses to Participants who are not Section 16 Officers to the Chief Executive Officer of the Company. 
 Target Percentage 
 The Administrator shall establish target bonuses and bonus formulas for the 2009 Program.

 Target bonus amounts will be a percentage of a Participant’s semi-annual base salary as of the date the target bonus percentage is established. The
earned bonus amount, if any, may range from 80% to 200% of the Target Bonus Percentage depending upon performance achievement. 
 Performance Period

 Unless otherwise indicated, the performance periods for bonuses granted under the 2009 Program shall run from January 1, 2009 to June 30,
2009 and from July 1, 2009 to December 31, 2009. (each, a “Performance Period”). Participants are rewarded during the period that they are actively employed by VMware. 
 Participants are not eligible to participate in any other Company bonus or incentive plan during a Performance Period. This exclusion does not apply, however, to
applicable employee referral bonuses, spot bonuses, equity awards, or Company contributions to qualified retirement or savings plans. 
 New Hires: Bonus payouts will be prorated for newly hired participants based on the number of days they are employed during the Performance Period. 
 Leaves of Absence: Bonus payouts will be prorated for any time during the Performance Period that a Participant is on an unpaid leave of absence status. Unpaid leaves of absence exclude those absences for which
vacation, sick leave or other compensation is paid directly by the Company. Unpaid absences include those absences for which compensation is received from any source other than directly from the Company. 
 Changes in Position: Participants who move from one 2009 bonus-eligible position to a different 2009 bonus-eligible position with a different
target bonus percentage may earn a target bonus prorated on base pay and bonus at the start of each period. 
 Termination: In order to
vest and the right to receive a bonus under the 2009 Program, an employee must be in an active employment status or on approved leave at the day the bonus is paid out. An employee whose employment ends for any reason prior to that date will not earn
and will not be paid any bonus under this 2009 Program. 
 The Compensation and Corporate Governance Committee shall have the exclusive discretion to
determine when a Participant is no longer actively employed for purposes of the 2009 Program. Participants have no right or interest in any bonus and such bonus is not earned unless the Administrator determines a bonus payout is due. 
 Performance Metrics 
 Bonus payment calculations will depend on
both a company component (“Corporate Financial Metric”) and an individual component (“MBO”) selected from the performance goals from the 2007 Plan. The Company must meet a threshold of 80% of the Corporate Financial Metric in
order for any bonus payouts to be made. If the 80% threshold is not achieved, the 2009 Program shall not be funded and no bonus payouts shall be made. The Corporate Financial Metrics, the MBO’s and their relative weighting shall be determined
by the Committee within 45 days of the commencement of the performance period. 

 Corporate Financial Metric Component  
 The Corporate Financial Metric shall be determined by calculating success against company-wide financial metrics and, as applicable, business unit performance metrics, as determined by the Compensation and Corporate
Governance Committee. 
 MBO (Individual) Component 
 Each Participant will be assigned individual performance goals by the Compensation and Corporate Governance Committee that are appropriate to the Participant’s role at the Company. If threshold achievement of 80% of the Corporate
Financial Metric is met, then the MBO component is funded at the same percentage as the Corporate Financial Metric. The Compensation and Corporate Governance Committee can exercise negative discretion to reduce the bonus for the MBO component based
on the Committee’s assessment of individual performance. 
 Bonus Determination and Payment 
 The Compensation and Corporate Governance Committee shall determine final bonus payouts to Participants based upon achievement of the foregoing metrics and goals. The
Administrator reserves the right to reduce or not award bonus amounts in its sole discretion. 
 Cancellation, Rescission and Recoupment of Awards

 Any bonus granted under this 2009 Program to a Participant shall be subject to cancellation, rescission, repayment or other action at the
discretion of the Compensation Committee as set forth in Section 7(c) of the Plan in the event that such Participant engages in “Detrimental Activity” as such term is defined in Section 7(c) 
 Additionally, the Compensation and Corporate Governance Committee shall have the discretion to require that each Participant reimburse the Company for all or any portion
of any bonuses paid under the 2009 Program if – 
 (a) the payment was predicated upon the achievement of certain financial results that
were subsequently the subject of a material financial restatement, 
 (b) in the Board’s view, the Participant engaged in fraud or
misconduct that caused or partially caused the need for a material financial restatement by the Company or any substantial affiliate, and 
 (c) a lower payment, award, or vesting would have occurred based upon the restated financial results. 
 In each such instance, upon the
determination of the Compensation and Corporate Governance Committee to require recoupment of a previously paid bonus awarded under the 2009 Program, the Company will, to the extent practicable and allowable under applicable laws, require
reimbursement of any bonus awarded for the relevant period exceeded the lower payment that would have been made based on the restated financial results, provided that the Company will not seek to recover bonuses compensation paid more than three
years prior to the date the applicable restatement is disclosed. 
 At-Will Employment (US Only) 
 This Plan does not affect the terminable-at-will status of the employment relationship. Neither the attainment of goals nor the continuous service requirement
necessary to earn a bonus alters the ability of an employee or the Company to terminate employment at any time, with or without reason and with or without advance notice.

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