Document:

First Amendment to Tax Sharing Agreement

 Exhibit 10.22 
 FIRST AMENDMENT 
 to 

TAX SHARING AGREEMENT 
 by and among 
 EMC CORPORATION 

AND ITS AFFILIATES 
 and 
 VMWARE, INC. 

AND ITS AFFILIATES 

  
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 FIRST AMENDMENT TO TAX SHARING AGREEMENT 

THIS FIRST AMENDMENT (the “Amendment”) dated effective as of January 1, 2011, to the Tax Sharing Agreement (the
“Agreement”) dated effective as of August 13, 2007, is made and entered into by and among EMC Corporation, a Massachusetts corporation (“EMC”), each EMC Affiliate (as defined in the Agreement), VMware, Inc., a Delaware
corporation (“VMware”), and each VMware Affiliate (as defined in the Agreement). 
 RECITALS 

WHEREAS, as of the date hereof, EMC and its direct and indirect domestic subsidiaries, including VMware and each VMware Affiliate are
members of an Affiliated Group (as defined in the Agreement); and 
 WHEREAS, the parties have determined that it is appropriate
to amend the Agreement as set forth in this Amendment. 
 AMENDMENT 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, EMC, for itself and on behalf of the EMC
Affiliates, and VMware, for itself and on behalf of the VMware Affiliates, hereby agree as follows: 
 Section 1.
        Amendments 
 1.01 Amendment 1. The definition of the term
“VMware Separate Tax Liability” in Section 1 of the Agreement is hereby amended in its entirety to read as follows: 
 “VMware Separate Tax Liability” means an amount equal to the Tax liability that VMware and each VMware Affiliate would have incurred if they had filed a consolidated return, combined
return (including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination), unitary return or a separate return, as the case may be, separate from the members of the EMC Group,
for the relevant Tax period, and such amount shall be computed by EMC (A) in a manner consistent with (i) general Tax accounting principles, 

  
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(ii) the Code and the Treasury regulations promulgated thereunder, and (iii) past practice, if any, and (B) taking into account any Tax Asset of VMware and any VMware Affiliate
attributable to any Tax period beginning on or after January 1, 2007; provided, however, that, although the VMware Separate Tax Liability is to be computed on a hypothetical basis as if VMware and each VMware Affiliate were
separate from the members of the EMC Group, the fact that VMware or any VMware Affiliate is included in a Consolidated Return or a Combined Return and the effect that such inclusion has on the calculation of any Tax Item, shall nevertheless be taken
into account for purposes of computing the VMware Separate Tax Liability (for example, for purposes of calculating its R&D credit, VMware shall be entitled to its allocable share of the consolidated R&D credit of the EMC Group). For the
avoidance of doubt, the VMware Separate Tax Liability shall be computed for the relevant Tax period without regard to whether or not VMware or any VMware Affiliate would be able, on a hypothetical basis separate from the members of the EMC Group, to
utilize in an earlier or later Tax period a Tax Asset resulting from such computation. 
 1.02 Amendment 2.
Section 7.01 of the Agreement is hereby amended in its entirety to read as follows: 
 7.01. Estimated Tax Payments.
Not later than three (3) days prior to each Estimated Tax Installment Date with respect to a taxable period for which a Consolidated Return or a Combined Return will be filed, VMware shall pay to EMC on behalf of the VMware Group an amount
equal to the amount of any estimated VMware Separate Tax Liability that VMware otherwise would have been required to pay to a Taxing Authority on such Estimated Tax Installment Date. If the VMware Separate Tax Liability for such taxable period is
less than zero, then EMC shall pay to VMware an amount equal to the Tax Benefit that the EMC Group anticipates it will recognize for the entire year as a result of the VMware Separate Tax Liability being less than zero for such taxable period. Not
later than seven (7) days prior to each such Estimated Tax Installment Date, EMC shall provide VMware with a written notice setting forth the amount payable by VMware, or the amount payable by EMC, as appropriate, in respect of such estimated
VMware Separate Tax Liability and a calculation of such amount. 
 1.03 Amendment 3. Section 7.02 of the
Agreement is hereby amended in its entirety to read as follows: 
 7.02. True-Up Payments. Not later than ten
(10) business days after receipt of any VMware Separate Tax Liability computation pursuant to Section 3.05 of this Agreement, VMware shall pay to EMC, or EMC shall pay to VMware, as appropriate, an amount equal to the difference, if any,
between 

  
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(i) the VMware Separate Tax Liability and (ii) the amount equal to (A) the aggregate amounts paid by VMware to EMC with respect to such period under Section 7.01 of this Agreement
minus (B) the aggregate amounts paid by EMC to VMware with respect to such period under Section 7.01 of this Agreement. 

Section 2.         Construction. 

2.01 Definitions. Terms capitalized but not defined herein shall have the meaning set forth in the Agreement. 

2.02 Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same Amendment. 
 2.03 Severability. If any term,
provision, covenant, or restriction of this Amendment is held by a court of competent jurisdiction (or an arbitrator or arbitration panel) to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions set
forth herein shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated. In the event that any such term, provision, covenant or restriction is held to be invalid, void or unenforceable, the parties hereto shall
use their best efforts to find and employ an alternate means to achieve the same or substantially the same result as that contemplated by such terms, provisions, covenant, or restriction. 

  
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 IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be executed by a
duly authorized officer on March 28, 2011, but effective as of the date first above written. 
  

			
	EMC CORPORATION
	on behalf of itself and the EMC Affiliates
		
	By:	 	 /s/  David Goulden

	Name:	 	David Goulden
	Title:	 	Executive Vice President and Chief Financial Officer
	
	VMWARE, INC.
	on behalf of itself and the VMware Affiliates
		
	By:	 	 /s/  Mark Peek
                March 29, 2011

	Name:	 	Mark S. Peek
	Title:	 	Chief Financial Officer

  
 5Executive Bonus Program

 Exhibit 10.23 
 Adopted February 14, 2011 
 VMware, Inc. 

Executive Bonus Program 
 Executive Bonus Program Objectives 
 Among the objectives of the VMware Bonus Program
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 (the “Executive Bonus 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 Executive Bonus 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 Chief Financial Officer, Chief Accounting Officer or 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 amounts will be calculated
(“Calculated Bonus Amounts”) based upon the degree of achievement of the predetermined objectives. The Compensation and Corporate Governance Committee shall determine final bonus payouts and, in its discretion, taking into account review
and discussion of recommendations made by the Chief Executive Officer, may reduce, but not increase, final bonus payouts from the Calculated Bonus Amounts. 
 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 Executive Bonus 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 executive officers of the Company as defined under Rule 3b-7 of the 1934 Securities Exchange Act (“Executive Officers”) and other senior executives who are not Executive
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 Executive Officers to the Executive Bonus Program. 

  
  

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 Administration 
 As Administrator, the Compensation and Corporate Governance Committee is ultimately responsible for administering the Executive Bonus Program. The Administrator has all powers and discretion necessary or
appropriate to review and approve the Executive Bonus Program and its operation, including, but not limited to, the power to (a) determine Participants, (b) interpret the provisions of the Executive Bonus Program, (c) adopt rules for
the administration, interpretation and application of the Executive Bonus 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 Executive Bonus 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 Executive Bonus Program to Executive Officers. The Administrator may, in its discretion, delegate authority over bonuses to Participants who are not Executive
Officers to the Chief Executive Officer of the Company. 
 Target Percentage 

The Administrator shall establish target bonuses and bonus formulas for the Executive Bonus Program. 

Target bonus amounts will be a percentage of a Participant’s actual semi-annual base salary during the course of the Performance Period as of the
date the target bonus percentage is established (the “Target Bonus Percentage”). 
 The Calculated Bonus Amount, if any, may range 0%
to 200% of the Target Bonus Percentage multiplied by the Participant’s actual semi-annual base salary depending upon performance achievement. Minimum bonus thresholds are described below. For purposes of this calculation, Participant’s
actual semi-annual base salary shall not exceed 200% of the Participant’s base salary as of the date that semi-annual performance targets are approved. 
 Performance Period 
 Unless otherwise indicated, the performance periods for bonuses
granted under the Executive Bonus Program shall run each year from January 1 to June 30 and from July 1 to December 31 . (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: Calculated Bonus Amounts will be prorated for newly hired participants based on the number of days they are employed during the Performance Period. 

Leaves of Absence: Calculated Bonus Amounts 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 bonus-eligible
position to a different 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 Executive Bonus 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 Executive Bonus Program. 

  
  

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 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 Executive Bonus 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 
 The
Calculated Bonus Amount 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 Executive Bonus 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. In making its determination whether to reduce the bonus for the MBO component, the Committee’s shall review and discuss the Chief Executive Officer’s assessment of each Participant’s achievement of his
or her individual performance goals. 
 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 Committee reserves the right to
reduce bonus payouts below Calculated Bonus Amounts or not make any bonus payouts in its sole discretion. 
 Cancellation, Rescission and
Recoupment of Awards 
 Any bonus granted under this Executive Bonus 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(d) of the Plan in the event that such Participant engages in “Detrimental Activity” as such term is defined in
Section 7(d) 
 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 Executive Bonus 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 Executive Bonus Program, the Company will, to the extent practicable and allowable under 

  
  

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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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