Document:

2010 Executive Bonus Plan

 Exhibit 10.1 

VMware, Inc. 

2010 Executive Bonus Program 

Executive Bonus Program Objectives 

Among the objectives of the VMware Bonus Program – 2010 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 2010 (the “2010 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 2010 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 2010 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 2010 Program. 
  

  

Page 1 

 VMware, Inc. 

2010 Executive Bonus Program 
  

 Administration 

As Administrator, the Compensation and Corporate Governance Committee is ultimately responsible for administering the 2010 Program. The Administrator has
all powers and discretion necessary or appropriate to review and approve the 2010 Program and its operation, including, but not limited to, the power to (a) determine Participants, (b) interpret the provisions of the 2010 Program,
(c) adopt rules for the administration, interpretation and application of the 2010 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 2010 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 2010 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 (“Bonus Targets”) and bonus formulas for the 2010 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
“Target Bonus Percentage”). 
 The Calculated Bonus Amount, if any, may range 0% to 200% of the Target Bonus Percentage depending upon
performance achievement. Minimum bonus thresholds are described below. 
 Performance Period 

Unless otherwise indicated, the performance periods for bonuses granted under the 2010 Program shall run from January 1, 2010 to June 30, 2010
and from July 1, 2010 to December 31, 2010. (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 2010 bonus-eligible position to a different 2010 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 2010 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 2010 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 2010 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. 

 

	
	Page 2

 VMware, Inc. 

2010 Executive Bonus Program 
  

 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 2010 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 2010 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 2010 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 2010 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. 

 

	
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 VMware, Inc. 

2010 Executive Bonus Program 
  

 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. 

 

	
	Page 42007 Employee Stock Purchase Plan

 Exhibit 10.2 

AS AMENDED FEBRUARY 24, 2010 

VMWARE, INC. 

2007 EMPLOYEE STOCK PURCHASE PLAN 

Section 1. Purpose of Plan 

The VMware, Inc. 2007 Employee Stock Purchase Plan (the “Plan”) is intended to provide a method by which eligible employees of
VMware, Inc. (“VMware”) and its subsidiaries (collectively, the “Company”) may use voluntary, systematic payroll deductions or other contributions (as described in Section 5 below) to purchase VMware’s class A common
stock, $.01 par value, (“stock”) and thereby acquire an interest in the future of VMware. For purposes of the Plan, a subsidiary is any corporation in which VMware owns, directly or indirectly, stock possessing 50% or more of the total
combined voting power of all classes of stock unless the Board of Directors of VMware (the “Board of Directors”) determines that employees of a particular subsidiary shall not be eligible. 

The Plan is intended qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986,
as amended (the “Code”). Notwithstanding the foregoing, the Board of Directors may establish comparable offerings under the Plan that are not intended to qualify under Code Section 423. Such offerings will be designated as being made
under the non-423 component of this Plan. 
 For purposes of this Plan, if the Board of Directors so determines, the employees
of VMware and/or of any designated subsidiary will be deemed to participate in a separate offering under the 423 component of the Plan, even if the dates of the applicable offering period of each such offering are identical, provided that the terms
of participation are the same within each separate offering as determined under Code Section 423. 
 Section 2. Options to Purchase
Stock 
 Under the Plan, no more than 6,400,000 shares of stock are available for purchase (subject to adjustment as provided
in Section 16) pursuant to the exercise of options (“options”) granted under the Plan to employees of the Company (“employees”). All of the shares of stock are available for purchase under the Plan may be used for offerings
under the 423 component of the Plan. The stock to be delivered upon exercise of options under the Plan may be either shares of VMware’s authorized but unissued stock, or shares of reacquired stock, as the Board of Directors shall determine.

 Section 3. Eligible Employees 

Except as otherwise provided in Section 20, each employee who has completed three months or more of continuous service in the employ
of the Company, or any lesser number of months established by the Committee (if required under local law), shall be eligible to participate in the Plan provided such inclusion is consistent with requirements under Code Section 423 or offered
under the non-423 component. Notwithstanding any other provision herein, individuals who are not contemporaneously classified as employees of VMware or an eligible subsidiary for purposes of VMware’s or the applicable eligible
subsidiary’s payroll system are not considered to be eligible employees and shall not be eligible to participate in the Plan. In the event any such individuals are reclassified as employees of VMware or an eligible subsidiary for any purpose,
including, without limitation, common law or statutory employees, by any action of any third party, including, without limitation, any government agency, or as a result of any private lawsuit, action or administrative proceeding, such individuals
shall, notwithstanding such reclassification, remain ineligible for participation. Notwithstanding the foregoing, the exclusive means for individuals who are not contemporaneously classified as employees of VMware or an eligible subsidiary on the
applicable payroll system to become eligible to participate in this Plan is through an amendment to this Plan, duly executed by VMware, which specifically renders such individuals eligible to participate herein. 

Section 4. Method of Participation 

Option periods of any duration up to 27 months in length shall be determined by the Committee. In the event no period is designated by the
Committee, the option periods shall have a duration of six months commencing on the first day following termination of the prior period. For example, if an option period ends on July 31, the following option period would be August 1
through January 31 unless the Committee determines otherwise prior to commencement of such following option period. Each person who will be an eligible employee on the first day of any option period may elect to participate in the Plan by
executing and delivering, at least one business day prior to such day, a payroll deduction authorization and/or other required enrollment agreement(s)/form(s) in accordance with Section 5. Such employee shall thereby become a participant
(“participant”) on the first day of such option period and shall remain a participant until his or her participation is terminated as provided in the Plan. VMware may permit participants to elect or indicate whether an enrollment election,
once made, will apply to subsequent option periods without being required to submit a new enrollment form. If an employee makes an enrollment election that does not apply to subsequent option periods, the employee will be deemed to have terminated
his or her participation with respect to subsequent option periods unless and until the employee submits a new enrollment form in accordance with the Plan. 
  

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 Section 5. Contributions 

A participant may elect to make contributions under the Plan at a rate of not less than 2% nor more than 15% from the participant’s
compensation (subject to a maximum of $7,500 per six-month option period and pro-rated for longer or shorter periods, at the Committee’s discretion), by means of substantially equal payroll deductions over the option period; provided,
however, where applicable local laws prohibit payroll deductions for the purpose of participation in the Plan, the Committee may permit all participants in a specified separate offering under the 423 component or an offering under the non-423
component of the Plan to contribute amounts to the Plan through payment by cash, check or other means set forth in the enrollment form. For option periods beginning after October 1, 2008, any amount remaining in a participant’s
contribution account at the end of an option period representing a fractional share that is rolled over to the contribution account for the next option period pursuant to Section 8 below (a “rollover”) may be used to purchase
additional stock; provided that the maximum dollar amount per option period shall be reduced by the amount of any rollover. For purposes of the Plan, “compensation” shall mean all cash compensation paid to the participant by the
Company. 
 A participant may only elect to change his or her contribution rate by written notice delivered to VMware (or its
designated agent) at least one business day prior to the first day of the option period as to which the change is to be effective. Following delivery to VMware (or its designated agent) of any enrollment form or any election to change the
withholding rate of a payroll deduction authorization, appropriate payroll deductions or changes thereto shall commence as soon as reasonably practicable. All amounts withheld in accordance with a participant’s payroll deduction authorization
or contributed by other permitted means (if any) shall be credited to a contribution account for such participant. 
 Section 6. Grant
of Options 
 Each person who is a participant on the first day of an option period shall, as of such day, be granted an
option for such period. Such option shall be for the number of shares of stock to be determined by dividing (a) the balance in the participant’s contribution account on the last day of the option period by (b) the purchase price per
share of the stock determined under Section 7, and eliminating any fractional share from the quotient. In the event that the number of shares then available under the Plan is otherwise insufficient, VMware shall reduce on a substantially
proportionate basis the number of shares of stock receivable by each participant upon exercise of his or her option for an option period and shall return the balance in a participant’s contribution account to such participant. In no event shall
the number of shares of stock that a participant may purchase during any one six-month option period under the Plan exceed 750 shares of stock, and pro-rated for longer or shorter periods, at the Committee’s discretion. 

 

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 Section 7. Purchase Price 

The purchase price of stock issued pursuant to the exercise of an option shall be 85% of the fair market value of the stock at
(a) the time of grant of the option or (b) the time at which the option is deemed exercised, whichever is less. “Fair market value” shall mean the closing sales price per share of the stock on the principal securities exchange on
which the stock is traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported; if the stock is not listed for trading on a national securities exchange, the fair market value of the stock
shall be determined in good faith by the Board of Directors. 
 Section 8. Exercise of Options 

If an employee is a participant in the Plan on the last business day of an option period, he or she shall be deemed to have exercised the
option granted to him or her for that period. Upon such exercise, VMware shall apply the balance of the participant’s contribution account to the purchase of the number of whole shares of stock determined under Section 6, and as soon as
practicable thereafter shall issue and deliver certificates for said shares to the participant (or have the shares deposited in a brokerage account for the benefit of the participant). No fractional shares shall be issued hereunder. Any balance
accumulated in the participant’s contribution account that is not sufficient to purchase a full share shall be retained in such account for any remaining or subsequent option period, subject to early withdrawal by the participant as provided in
Section 10. Any other monies remaining in the participant’s contribution account under the Plan after the date of exercise shall be returned to the participant or his or her beneficiary (as applicable) in cash without interest (unless
otherwise required by local law). 
 Notwithstanding anything herein to the contrary, VMware shall not be obligated to deliver
any shares unless and until, in the opinion of VMware’s counsel, all requirements of applicable federal, state and foreign laws and regulations (including any requirements as to legends) have been complied with, nor, if the outstanding stock is
at the time listed on any securities exchange, unless and until the shares to be delivered have been listed (or authorized to be added to the list upon official notice of issuance) upon such exchange, nor unless or until all other legal matters in
connection with the issuance and delivery of shares have been approved by VMware’s counsel. 
  

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 Section 9. Interest 

No interest will be payable on contribution accounts, except as may be required by applicable law, as determined by the Committee.

 Section 10. Cancellation and Withdrawal 

A participant who holds an option under the Plan may cancel all (but not less than all) of his or her option by written notice delivered
to the Company, in such form as the Committee may prescribe, provided that VMware (or its designated agent) must receive such notice at least 15 days before the last day of the option period (the “Withdrawal Deadline”). Any participant who
delivers such written notice shall be deemed to have canceled his or her option, terminated any applicable payroll deduction authorization with respect to the Plan and terminated his or her participation in the Plan, in each case, as of the date of
such written notice. In the event that the date of the Withdrawal Deadline with respect to the applicable option period, shall be a Saturday, Sunday or day on which banks in the State of Delaware are required to close, a participant may cancel his
or her option by written notice given on or prior to the last business day immediately preceding such date. Following delivery of any such notice, any balance in the participant’s contribution account will be returned to such participant as
soon as reasonably practicable. Any participant who has delivered such notice may elect to participate in the Plan in any future option period in accordance with the provisions of Section 4. 

Section 11. Termination of Employment 

Except as otherwise provided in Section 12, upon the termination of a participant’s employment with the
Company for any reason whatsoever, he or she shall cease to be a participant, and any option held by him or her under the Plan shall be deemed cancelled, the balance of his or her contribution account shall be returned to him or her, and he or she
shall have no further rights under the Plan. For purposes of this Section 11, a participant’s employment will not be considered terminated in the case of a transfer to the employment of a subsidiary or to the employment of the Company.
However, in the event of a transfer of employment, VMware may transfer participant’s participation to a separate offering or non-423 component offering, if advisable or necessary, considering applicable local law and Code Section 423
requirements. For purposes of the Plan, an individual’s employment relationship is still considered to be continuing intact while such individual is on sick leave, or other leave of absence approved for purposes of this Plan by the Company;
provided however, that if such period of leave of absence exceeds ninety (90) days, and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have
terminated on the ninety-first (91st) day of such
leave. 
  

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 Section 12. Death of Participant 

In the event a participant holds any option hereunder at the time his or her employment with the Company is terminated by his or her
death, whenever occurring, then his or her legal representative, may, by a writing delivered to VMware on or before the date such option is exercisable, elect either (a) to cancel any such option and receive in cash the balance in his or her
contribution account, or (b) to have the balance in his or her contribution account applied as of the last day of the option period to the exercise of his or her option pursuant to Section 8, and have the balance, if any, in such account
in excess of the total purchase price of the whole shares so issued returned in cash. In the event his or her legal representative does not file a written election as provided above, any outstanding option shall be treated as if an election had been
filed pursuant to subparagraph 12(a) above. 
 Section 13. Participant’s Rights Not Transferable, etc. 

All participants granted options under a specified offering under the 423 component of the Plan shall have the same rights and privileges.
Each participant’s rights and privileges under any option granted under the Plan shall be exercisable during his or her lifetime only by him or her, and shall not be sold, pledged, assigned, or otherwise transferred in any manner whatsoever
except by will or the laws of descent and distribution. In the event any participant violates the terms of this Section, any options held by him or her may be terminated by VMware and, upon return to the participant of the balance of his or her
contribution account, all his or her rights under the Plan shall terminate. 
 Section 14. Employment Rights 

Neither the adoption of the Plan nor any of the provisions of the Plan shall confer upon any participant any right to continued employment
with the Company or a subsidiary or affect in any way the right of the participant’s employer to terminate the employment of such participant at any time. 

Section 15. Rights as a Shareholder/Use of Funds 

A participant shall have the rights of a shareholder only as to stock actually acquired by him or her under the Plan. 

 

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 All contributions received under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such funds, but may do so if required under applicable local law. 

Section 16. Change in Capitalization 

In the event of a stock dividend, stock split or combination of shares, recapitalization, merger in which VMware is the surviving
corporation or other change in VMware’s capital stock, the number and kind of shares of stock or securities of VMware to be subject to the Plan and to options then outstanding or to be granted hereunder, the maximum number of shares or
securities which may be delivered under the Plan, the option price and other relevant provisions shall be appropriately adjusted by the Board of Directors, whose determination shall be binding on all persons. In the event of a consolidation or
merger in which VMware is not the surviving corporation or in the event of the sale or transfer of substantially all VMware’s assets (other than by the grant of a mortgage or security interest), all outstanding options shall thereupon
terminate, provided that prior to the effective date of any such merger, consolidation or sale of assets, the Board of Directors shall either (a) return the balance in all contribution accounts and cancel all outstanding options, or
(b) accelerate the exercise date provided for in Section 8, or (c) if there is a surviving or acquiring corporation, arrange to have that corporation or an affiliate of that corporation grant to the participants replacement options
having equivalent terms and conditions as determined by the Board of Directors. 
 In the event of a corporate restructuring,
VMware may transfer or terminate participant’s participation to a separate offering or non-423 component offering, if advisable or necessary, considering applicable local law and Code Section 423 requirements. 

Section 17. Administration of Plan 

The Plan will be administered by the Board of Directors. The Board of Directors will have authority, not inconsistent with the express
provisions of the Plan, to take all action necessary or appropriate hereunder, to interpret its provisions, and to decide all questions which may arise in connection therewith. Except with respect to officers of VMware who are subject to the
reporting requirements of Section 16 of the Securities Act of 1934, management of VMware is also authorized to resolve participant disputes under the Plan, consistent with the terms of the Plan and any agreements thereunder and any
interpretations or guidance issued under the Plan by the Board of Directors or the Committee. 
  

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 The Board may, in its discretion, delegate its powers with respect to the Plan to an
Employee Benefit Plan Committee or any other committee at VMware (the “Committee”), in which event all references to the Board of Directors hereunder, including without limitation the references in Section 17, shall be deemed to refer
to the Committee. A majority of the members of any such Committee shall constitute a quorum, and all determinations of the Committee shall be made by a majority of its members. Any determination of the Committee under the Plan may be made without
notice or meeting of the Committee by a writing signed by all of the Committee members. 
 Determinations of the Board of
Directors, the Committee or where appropriate, management of the Company, shall be conclusive and shall bind all parties. 
 Section 18.
Amendment and Termination of Plan 
 The Board of Directors may at any time or times amend the Plan or amend any outstanding
option or options for the purpose of satisfying the requirements of any changes in applicable laws or regulations or for any other purpose which may at the time be permitted by law, provided that (except to the extent explicitly required or
permitted herein) no such amendment will, without the approval of the shareholders of the Company, (a) increase the maximum number of shares available under the Plan, (b) reduce the option price of outstanding options or reduce the price
at which options may be granted, (c) change the conditions for eligibility under the Plan, or (d) amend the provisions of this Section 18 of the Plan, and no such amendment will adversely affect the rights of any participant (without
his or her consent) under any option theretofore granted. 
 The Plan may be terminated at any time by the Board of Directors,
but no such termination shall adversely affect the rights and privileges of holders of the outstanding options. 
 Section 19. Approval
of Shareholders 
 The Plan shall be subject to the approval of the shareholders of the Company, which approval shall be
secured within twelve months after the date the Plan is adopted by the Board of Directors. Notwithstanding any other provisions of the Plan, no option shall be exercised prior to the date of such approval. 

 

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 Section 20. Limitations 

Notwithstanding any other provision of the Plan: 

(a) An employee shall not be eligible to receive an option pursuant to the Plan if, immediately after the grant of such option to him or
her, he or she would (in accordance with the provisions of Sections 423 and 424(d) of the Code own or be deemed to own stock possessing 5% or more of the total combined voting power or value of all classes of stock of the employer corporation or of
its parent or subsidiary corporation, as defined in Section 424 of the Code. 
 (b) No employee shall be granted an option
under this Plan that would permit his or her rights to purchase shares of stock under all employee stock purchase plans (as defined in Section 423 of the Code) of VMware or any subsidiary or parent corporation to accrue at a rate which exceeds
$25,000 in fair market value of such stock (determined at the time the option is granted) for each calendar year during which any such option granted to such employee is outstanding at any time, as provided in Section 423 of the Code.

 (c) No employee shall be granted an option under this Plan that would permit him or her to withhold more than $7,500 in each
six-month option period, and pro-rated for longer or shorter periods, at the Committee’s discretion, or $15,000 per calendar year, less the amount of any rollover. 

(d) No employee whose customary employment is 20 hours or less per week shall be eligible to participate in the Plan, unless otherwise
required under applicable law. If participation in the Plan is offered to employees whose customary employment is 20 hours or less, the offering will be made under a separate offering under the 423 component or under the non-423 component of the
Plan. 
 (e) No independent contractor shall be eligible to participate in the Plan. 

Section 21. Jurisdiction and Governing Law. 

The Company and each participant in the Plan submit to the exclusive jurisdiction and venue of the U.S. federal or state courts of
Delaware to resolve issues that may arise out of or relate to the Plan or the same subject matter. The Plan shall be governed by the laws of Delaware, excluding its conflicts or choice of law rules or principles that might otherwise refer
construction or interpretation of this Plan to the substantive law of another jurisdiction. 
 Section 22: Compliance with Foreign Laws
and Regulations. 
 Notwithstanding anything to the contrary herein, the Board, in order to conform with provisions of local
laws and regulations in foreign countries in which the Company or its subsidiaries operate, shall have sole discretion to (i) adversely modify the terms and conditions of options granted to participants employed outside the United States to the
extent consistent with the U.S. Treasury regulations under Code Section 423; (ii) establish comparable offerings that are not intended to qualify under Code 

 

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 Section 423 with the shares to be taken from the allotment available under this Plan and with modified
enrollment or exercise procedures and/or establish such other modifications as may be necessary or advisable under the circumstances presented by local laws and regulations; and (iii) take any action which it deems advisable to obtain, comply
with or otherwise reflect any necessary governmental regulatory procedures, exemptions or approvals with respect to the Plan or any sub-plan established hereunder. 

 

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