Document:

Exhibit
4.1

 

LOCK-UP
AGREEMENT

 

_____________,
2021

 

Maxim
Group LLC

405
Lexington Avenue

New
York, NY 10174

 

Re:
Public Offering of Newegg Commerce, Inc.

 

Ladies
and Gentlemen:

 

The
undersigned, a holder of common shares, par value $0.021848 per share (“Common Shares”), or rights to acquire Common
Shares, of Lianluo Smart Limited (to be renamed Newegg Commerce, Inc.) (the “Company”), understands that you are the
representative (the “Representative”) of the several underwriters (collectively, the “Underwriters”)
named or to be named in the final form of Schedule I to the underwriting agreement (the “Underwriting Agreement”)
to be entered into among the Underwriters and the Company, providing for the public offering (the “Offering”) of Shares
pursuant to a registration statement filed with the U.S. Securities and Exchange Commission (the “SEC”). Capitalized
terms used herein and not otherwise defined shall have the meanings set forth for them in the Underwriting Agreement.

 

In
consideration of the Underwriters’ agreement to enter into the Underwriting Agreement and to proceed with the Offering, and for
other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby agrees, for the benefit of the
Company, the Representative and the other Underwriters that, without the prior written consent of the Representative, the undersigned
will not, during the period specified in the following paragraph (the “Lock-Up Period”), directly or indirectly, unless
otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, convert, exercise, exchange, grant any
call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a
“Transfer”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (b)
establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in
each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
and the rules and regulations thereunder with respect to any Relevant Security or otherwise enter into any swap, derivative or other
transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security,
whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration,
or otherwise publicly disclose the intention to do so. As used herein, the term “Relevant Security” means any Share,
Common Shares, warrant to purchase Common Shares or any other security of the Company or any other entity that is convertible into, or
exercisable or exchangeable for, Shares or any other equity security of the Company, in each case owned beneficially or otherwise by
the undersigned on the date set forth on the front cover of the final prospectus used in connection with the Offering (the “Effective
Date”) or acquired by the undersigned during the Lock-Up Period.

 

     

     

    

 

The
Lock-Up Period will commence on the date of this Lock-up Agreement and continue and include the date that is 180 days after the closing
of the Offering.

 

In
addition, the undersigned further agrees that, without the prior written consent of the Representative, during the Lock-Up Period, the
undersigned will not: (i) file or participate in the filing with the SEC of any registration statement or circulate or participate in
the circulation of any preliminary or final prospectus or other disclosure document, in each case with respect to any proposed offering
or sale of a Relevant Security; or (ii) exercise any rights the undersigned may have to require registration with the SEC of any proposed
offering or sale of a Relevant Security.

 

In
addition, if: (i) the Company issues an earnings release or material news or a material event relating to the Company occurs during
the last seventeen (17) days of the Lock-Up Period; or (ii) prior to the expiration of the Lock-Up Period, the Company announces
that it will release earnings results during the sixteen (16)-day period beginning on the last day of the Lock-Up Period, then the restrictions
imposed by this Lock-Up Agreement shall continue to apply until the expiration of the eighteen (18)-day period beginning on the issuance
of the earnings release or the occurrence of the material news or material event (the “Extension Period”). However,
for purposes of clarity, only one Extension Period may occur.

 

In
furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period
to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register
and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a
violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record
owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer,
and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such
transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding
the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

		(i)	as
                                            a bona fide gift or gifts;

 

		(ii)	to
                                            any trust for the direct or indirect benefit of the undersigned or a member of members of
                                            the immediate family of the undersigned;

 

		(iii)	if
                                            the undersigned is a corporation, partnership, limited liability company, trust or other
                                            business entity (1) to another corporation, partnership, limited liability company, trust
                                            or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under
                                            the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited
                                            liability company members or stockholders of the undersigned, or (3) in connection with a
                                            sale, merger or transfer of all or substantially all of the assets of the undersigned or
                                            any other change of control of the undersigned, not undertaken for the purpose of avoiding
                                            the restrictions imposed by this Lock-Up Agreement;

 

		(iv)	if
                                            the undersigned is a trust, to the beneficiary of such trust;

 

    2

     

    

 

		(v)	by
                                            testate or intestate succession;

 

		(vi)	by
                                            operation of law, such as pursuant to a qualified domestic order or in connection with a
                                            divorce settlement; or

 

		(vii)	pursuant
                                            to the Underwriting Agreement;

 

provided,
in the case of clauses (i)-(vi), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing
with the Underwriters and the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any
filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

For
purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more
remote than first cousin.

 

The
undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and
that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and
binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional
documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors
and assigns of the undersigned from the date of this Lock-Up Agreement.

 

The
undersigned understands that, if the Underwriting Agreement does not become effective, or if the Underwriting Agreement (other than the
provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Shares to be
sold thereunder, the undersigned shall be released from all obligations under this Lock-Up Agreement.

 

The
undersigned, whether or not participating in the Offering, understands that the Underwriters are entering into the Underwriting Agreement
and proceeding with the Offering in reliance upon this Lock-Up Agreement.

 

This
Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict
of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective
as the delivery of the original hereof.

 

	 	Very truly yours,
	 	 	 
	 	Signature:	 
	 	 	 
	 	Name (printed):
	 	 	 
	 	Title (if applicable):
	 	 	 
	 	Entity (if applicable):

 

 

3EX-10.1

 Exhibit 10.1 
  

			
	

	  	

  
 VMware, Inc

3401 Hillview Avenue
 Palo Alto, CA 94304

May 11, 2021 
 Raghu Raghuram 

Dear Raghu,
 We are pleased to offer you a position with
VMware, Inc. (the “Company”) as Chief Executive Officer, commencing on June 1, 2021 (the “Effective Date”). You will report directly to the VMware Board of Directors (the “Board”), and in
connection with your new position you will be nominated for election to the Board.
 Salary 

Your annual salary starting on the Effective Date, $1,000,000, will be paid semi-monthly in accordance with the Company’s normal payroll
procedures. You will continue to be eligible to participate in the Company’s benefit plans and programs in accordance with their terms, which may be amended from time to time.

Bonus 
 You will be eligible to participate in
VMware’s Executive Bonus Plan starting on the Effective Date, pursuant to the terms and conditions of the Executive Bonus Plan, as it may be amended from time to time by the Compensation and Corporate Governance Committee of the VMware Board of
Directors (the “Committee”). You will be eligible for an annual target bonus opportunity of 150% of your base pay starting on the Effective Date. Pursuant to the terms and conditions set forth in VMware’s Executive Bonus
Program, any bonus for which you become eligible will be measured and funded on an annual basis, with the actual payout based on achievement of VMware financial goals and your individual performance, as approved by the Committee. VMware reserves the
right to modify or discontinue either or both the Executive Bonus Program or your bonus opportunity at any time. Your bonus opportunity for the portion of Fiscal Year 2022 (“FY22”) prior to the Effective Date will be measured
based on your previous bonus target and base salary and will continue to be under and calculated pursuant to the Executive Bonus Plan. 
 Outstanding
Equity Awards 
 Your existing equity awards will remain in effect in accordance with their terms. You will be eligible for future equity award grants by
the Committee in accordance with VMware’s ongoing compensation programs for its executive officers. 
 FY22 Equity Awards 

In April 2021, you were granted Restricted Stock Unit (“RSU”) and Performance Stock Unit (“PSU”) awards with a total target
value of $8,000,000. In connection with your new position, a recommendation will be made to the Committee that you be granted additional equity awards with a total target value of $5,000,000. The total value of the additional awards will be split

			
	

	  	

  

 
equally between a RSU and a PSU award. The number of RSUs and PSUs in each award will be determined by dividing the average of the closing sale price per share of VMware Class A Common
Stock (the “Shares”) for the 45 trading days ending on (and inclusive of) April 30, 2021 ($152.128). These equity awards will be subject to the approval of the Committee and will be governed by the terms and conditions of
the applicable grant agreement and the VMware Amended and Restated 2007 Equity and Incentive Plan (the “Plan”). The details of the grant recommendation are as follows:

 

	 	•	 	 An RSU award for 16,433 RSUs. Subject to continued employment, the RSU award will vest over four years from the
vesting base date, with 25% of the RSUs vesting after 12 months, and the remaining shares vesting 12.5% semi-annually thereafter. The vesting base date will be June 1, 2021. 

 

	 	•	 	 A PSU award for 16,433 PSUs. Each PSU may convert into a number of Shares based on achievement against
performance metrics previously established by the Committee for the Company’s FY22 Operating PSU Plan. Subject to continued employment, the PSU award will vest on April 1, 2024. 

FY22 TSR PSU Equity Award 
 In addition to the
above-referenced equity award, a recommendation will be made to the Committee that you be granted a promotional PSU award (“TSR PSU”) determined with a value of $12,000,000 based on a Monte-Carlo simulation-based probability model
based on the TSR values specified in the award terms attached as Schedule A. The number of PSUs and the baseline stock price used for measuring TSR appreciation will be determined as of the close of trading on the Effective Date. Subject to
continuing employment, the TSR PSU award will vest and may convert into Shares based on achievement against performance metrics as set forth in the attached Schedule A. 

Board Service 
 During your term of service as CEO, you
will continue to be nominated for service on the Board. Effective upon termination of your service as CEO, you shall immediately resign from the Board and the board of directors or comparable body of every subsidiary, parent or other affiliated
corporation of the Company, and every committee thereof. 
 Obligations to the Company 

During your employment, you shall devote your full business efforts and time to the Company, except as provided herein. Except as set forth on Attachment A,
without express written consent of the Board, you shall not render services in any capacity to any other person or entity and shall not act as a sole proprietor or partner of any other person or entity and own more than five percent (5%) of the
stock of any other corporation. Notwithstanding the foregoing, you may (i) serve on corporate, civic, or charitable boards or committees, including the corporate boards on which you currently serve as set forth on Attachment A;
(ii) continue to provide advisory services to the entities set forth on Attachment A; or (iii) deliver lectures, fulfill speaking engagements, teach at educational institutions, or manage personal investments, in the case of each of
clauses (i), (ii), and (iii) of this sentence, without such advance written consent; provided that such activities do not individually or in the aggregate interfere with the performance of your duties hereunder. 

			
	

	  	

  

 Change in Control 

You are eligible to continue to participate in the Company’s Change in Control Program, as it may be amended from time to time subject to your
previously-executed consent. For more details on the CIC Program, please refer to the enclosed VMware Change in Control Retention Plan. 
 Executive
Severance Plan 
 You are eligible to continue to participate in the Company’s Executive Severance Plan, as it may be amended from time to time,
subject to your previously-executed consent. For more details on the Executive Severance Plan, please refer to the enclosed VMware Executive Severance Plan. 

Section 409A Exemption 
 It is intended that the
payments and other compensation contemplated by this agreement satisfy, to the greatest extent possible, the exemption from the application of Section 409A of the Code, provided under Treasury Regulation Section
l.409A-l(b)(4) or to comply with Code Section 409A, and this agreement will be so interpreted and administered. Notwithstanding the foregoing, if the Company determines that payments and other
compensation pursuant to this agreement may not either be exempt from or compliant with Code Section 409A, the Company may, with your prior written consent, adopt such amendments to this agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to (i) exempt such payments and other compensation from Code Section 409A and/or
preserve the intended tax treatment of such payments and other compensation, or (ii) comply with the requirements of Code Section 409A; provided, however, that there is no obligation on the part of the Company to adopt any such amendment,
policy or procedure or take any such other action, and in any event, no such action will reduce the amount of payments or other compensation that is owed to your under this agreement without your prior written consent. 

Immigration 
 The Company agrees to provide
assistance to you in securing and maintaining authorization for employment in the U.S. The Company retains sole discretion to determine what efforts, if any, it will take in the future to secure or maintain your continuing authorization to work
in the U.S., should your authorization to work in the U.S. end or otherwise lapse during the period of your employment with the Company.
 At-Will Employment 
 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. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without advance notice.

Conflict of Interest
 You agree not to bring any
third-party confidential information to the Company, including that of your former employers, and that in performing your duties for the Company you will not in any way utilize any such information. Further, during your employment with the
Company, you agree not to engage in any other employment, consulting, or other business activity directly related to 

			
	

	  	

  

 
the business in which the Company is now involved or becomes involved during your employment, and neither will you engage in any other activities that conflict with your obligations to
the Company.If you want to become involved in activity which might present a conflict of interest, you will immediately disclose it and seek approval through the VMware conflict of interest vetting process. 

Policy Compliance 
 This offer letter, along with
the enclosed policies, contain all of the terms, representations, and understandings between the parties, and supersedes all other oral or written agreements or understandings between the parties regarding these matters prior to
the date hereof. By accepting this offer, you agree that you have received, read, understand and agree to comply with the enclosed VMware Employment Agreement, VMware Business Conduct Guidelines, VMware Acceptable Use Policy, Equal
Employment Opportunity Policy, VMware’s Global Travel and Expense Reimbursement Policy and VMware Respectful Workplace Policy as a condition of your employment. In addition, after your start date, you are expected
to familiarize yourself with and comply with the Company’s additional policies available on the Company’s internal website.     

Background Check 
 This offer is contingent upon you
successfully passing the Company’s background check. As a US technology company, VMware is subject to certain restrictions with respect to nationals of the following countries: North Korea, Syria, Libya, Iran, Sudan, and Cuba. If you
are a national of one of these countries, please contact the Global HR Services Team at offers@vmware.com.
 No
Modification
 Any modification or amendment of this offer must be in writing and signed by an authorized representative of the Company and
you.
 Sincerely,
 Paul Sagan 

Lead Independent Director, VMware Board of Directors
 By
providing my electronic signature below, I accept this offer of employment. I have read, understand and agree to the terms and conditions set forth within as a condition of my employment.

Signature: /s/ Rangarajan (Raghu) Raghuram 
 Date:
May 11, 2021 
 Email: 
 Enclosures:

VMware Employment Agreement Rev. July, 2019 

			
	

	  	

  

 VMware Business Conduct Guidelines Rev. May, 2021 

VMware U.S. Respectful Workplace Policy Rev. Oct. 30, 2018 

VMware U.S. Equal Employment Opportunity and Pay Transparency Policy Rev. Oct 1, 2019 

VMware Acceptable Use Policy Rev. Sep 30, 2019 
 VMware Global
Travel and Expense Reimbursement Policy Rev. February 15, 2021 
 VMware Change in Control Plan 

VMware Executive Severance Plan 

 Exhibit 10.1, Schedule A 

Terms of FY22 TSR PSU Award 
  

			
	Performance Period:	  	June 1, 2021 (“Effective Date”) – June 1, 2026
		
	Award Value:	  	$12 million
		
	Number of PSUs:	  	Determined on the Effective Date using a Monte-Carlo simulation-based probability model of the potential appreciated value upon vesting as set forth in Table I below based on the 15-trailing
trading day VWAP of VMware Class A common stock (“VMW”) on the Effective Date.
		
	Vesting Schedule:	  	50% of eligible PSUs, calculated based on performance from Effective Date through June 1, 2024 (“First Vesting Date”)
		  	75% of eligible PSUs, calculated based on performance from Effective Date through June 1, 2025 (“Second Vesting Date”)
		  	100% of eligible PSUs, calculated based on performance from Effective Date through June 1, 2026 (“Third Vesting Date”)
		
		  	On each vesting date, the number of PSUs eligible to vest on that date will be calculated pursuant to the Stock Price Appreciation Goals Table (Table I) and the Relative TSR Modifier Table (Table II). The number of PSUs that
actually vest will be the percentages set forth above of each Tranche that has Funded. To the extent that the amount of PSUs calculated as eligible to vest on a subsequent vesting date is less than the total that has previously vested, the amount
that will vest on the subsequent vesting date will equal zero. To the extent that the amount of PSUs calculated as eligible to vest on a subsequent vesting date exceeds the total that has previously vested, the excess amount will vest on the
subsequent vesting date.
		
		  	See Examples 1 and 2 in the Appendix.
		
	Holding Period	  	
	Requirement:	  	To the extent that PSUs vest on either or both of the First Vesting Date and the Second Vesting Date, 50% of the net shares of VMware Class A common stock (the “Shares”) issued after tax withholdings must be
held and may not be sold, pledged or used as the basis of any swap or other derivative instrument until June 1, 2026, regardless of any earlier termination of employment.
		
	Conversion Ratio:	  	Each PSU that vests on a vesting date will convert to one Share.
		
	Base Price:	  	The VMW Base Price (“Base Price”) will be measured based on a 15-trailing trading day VWAP of VMW ending on and including the Effective Date.

			
	VMWARE	  	FY22 TSR PSU Award

  

 Table I: Stock Price Appreciation Goals 

 

					
	 	  	Stock Price Appreciation Hurdle	 	Total Funded PSUs
	 Tranche 1
	  	+50% above Base Price	 	12.5% of total PSUs
	 Tranche 2
	  	+75% above Base Price	 	25.0% of total PSUs
	 Tranche 3
	  	+100% above Base Price	 	37.5% of total PSUs
	 Tranche 4
	  	+125% above Base Price	 	50.0% of total PSUs
	 Tranche 5
	  	+150% above Base Price	 	62.5% of total PSUs
	 Tranche 6
	  	+200% above Base Price	 	75.0% of total PSUs
	 Tranche 7
	  	+250% above Base Price	 	87.5% of total PSUs
	 Tranche 8
	  	+300% above Base Price	 	100.0% of total PSUs

 Stock Price Appreciation Measurement: 

Stock price appreciation will be measured based on 90-trailing trading day VWAP of VMW (“90-day VWAP”). The VMW 90-day VWAP will be measured on each day of the performance period. When the VMW 90-day VWAP equals or
exceeds a stock price appreciation hurdle set forth in the above table (a “Stock Price Appreciation Hurdle”) during the performance period, that hurdle is considered achieved. 

PSUs become “Funded” once a Stock Price Appreciation Hurdle is achieved. Additional PSUs are not Funded until the next higher Stock Price
Appreciation Hurdle is achieved. PSUs remain Funded with respect to a Stock Price Appreciation Hurdle even if the VWAP subsequently drops below that hurdle. 

Relative TSR Modifier: 
 VMware’s relative total
stockholder return (“TSR”) will be measured on each vesting date. The number of PSUs eligible to vest on a vesting date will equal the percentage of Funded shares as set forth in the following table, based on VMW’s TSR since
the start of the Performance Period relative to companies in the S&P 500 Information Technology Industry Index (“Index”). With respect to calculating the Index TSR on a vesting date, any company that has ceased to be publicly
traded due to M&A or being taken private since the Effective Date is excluded from the calculation, and the TSR for any company that has become insolvent is treated as -100%. 

			
	VMWARE	  	FY22 TSR PSU Award

  

 Table II: Relative TSR Modifier: 

 

					
	 VMW Relative TSR Percentile Rank
	  	% of Funded Shares That Are Eligible to Vest	 
	 >=P50
	  	 	100	% 
	 P25
	  	 	50	% 
	 <P25
	  	 	0	% 

 The Relative TSR Modifier is applied to the number of Funded PSUs on each vesting date to determine the total number of PSUs
eligible to vest on such vesting date. Next, the percentage of PSUs eligible to vest on that date is applied to the result of the Relative TSR Modifier calculation. The result is then compared to the total number of PSUs previously vested to
determine if any additional shares will vest. 
 Example 1 in the Appendix illustrates that zero shares are issued on the Second Vesting Date because the
total number of PSUs eligible to vest on such date is less than the amount that vested on the First Vesting Date; and that on the Third Vesting Date additional shares are issued because the total number of PSUs eligible to vest on such date is
greater than the total amount that vested on the previous vesting dates. 
 Example 2 in the Appendix illustrates that more shares are issued at each of the
Second and Third Vesting Dates because the shares eligible to vest on each vesting date exceeds the total amount previously vested. 
 Relative TSR
Modifier Measurement: 
 The performance of the VMW 90-day VWAP during the performance period will be compared to
the 90-day VWAP of each company that remains in the Index throughout the performance period to determine VMware’s percentile ranking. To make the determination, the
90-day VWAP for each company measured at the end of the trading day preceding the first day of the performance period will be compared to the respective 90-day VWAP
measured at the end of the last day prior to or on the vesting date upon which the TSR Modifier is being determined. 
 To the extent that VMware’s
percentile ranking falls in between the 25th and 50th percentiles, the number of PSUs that are eligible to vest will be scaled in proportion to
VMware’s percentile ranking. 
 Dividends: 
 Any
dividends paid by VMware or by any company in the Index during the Performance Period will be included in the calculation of the VMW 90-day VWAP and the 90-day VWAP of
the companies in the Index. 
 Vesting Conditions: Participant must remain employed by VMware on a vesting date in order to receive shares that are
eligible to vest on such date. 

			
	VMWARE	  	FY22 TSR PSU Award

  

 Change in Control: In the event of a
“change-in-control” of VMware as such term is defined in VMware’s Change in Control Retention Plan in effect at the start of the performance period
(“CIC Plan”), the consideration paid for each share of VMW will be utilized in place of the VMW 90-day VWAP for determining the Stock Price Appreciation Measurement and the Relative TSR
Modifier. Additionally, the Holding Period Requirement shall terminate on the effective date of a Change in Control. 
 Termination of Employment:

  

	 	1.	 If Participant’s employment terminates due to death or disability, this award will continue to vest on
each vesting date in accordance with the terms set forth above (other than the continued employment condition set forth in “Vesting Conditions”), except that such payout will be pro-rated based on
the proportion of the Performance Period that has elapsed as of the date of Participant’s termination of employment. In such event, any Shares paid out on the First Vesting Date and Second Vesting Date will not be subject to the Holding Period
Requirement. 

  

	 	2.	 If Participant becomes eligible for benefits under the CIC Plan due to involuntary termination following a
Change in Control of VMware (as defined in the CIC Plan), this PSU award will be eligible to vest in accordance with the terms of the CIC Plan to the extent that PSUs have become eligible to vest by applying the Stock Price Appreciation Hurdle and
Relative TSR Modifier calculations as of the effective date of the Change in Control, and the Shares will not be subject to the Holding Period Requirement. Any PSUs that are not eligible to vest as of the effective date of the Change in Control will
be forfeited. 

  

	 	3.	 If Participant’s employment terminates for any other reason, this award will terminate as of the
termination date and no further PSUs will vest. Any Shares previously issued will remain subject to the Holding Period Requirement. This award is not eligible for acceleration under VMware’s Executive Severance Plan. 

			
	VMWARE	  	FY22 TSR PSU Award

  

 Appendix 

Example 1 (presumes no additional Stock Price Appreciation Hurdles are met after First Vesting Date) 

 

	 	(1)	 On Second Vesting Date less shares are eligible to vest than previously vested on the First Vesting Date so
zero shares vest on the Second Vesting Date. 

  

	 	(2)	 On Third Vesting Date, more shares are eligible to vest than the total previously vested on the First and
Second Vesting Dates, so the excess number of shares vest on the Third Vesting Date. 

  

											
	 	  	 	 	 	First	 	Second	 	Third
	 	  	 	 	 	Vesting Date	 	Vesting Date	 	Vesting Date
	 Shares Funded Based on Stock Price Appreciation Hurdle Achievement
	  	 	a	 	 	1,000	 	1,000	 	1,000
		  				 		 	(assumes no additional
Hurdles achieved)	 	(assumes no additional
Hurdles achieved)
	 Relative TSR vs. S&P 500 IT Index
	  	 	b	 	 	>50%ile	 	25%ile	 	>50%ile
	 Relative TSR Modifier
	  	 	c	 	 	100%	 	50%	 	100%
	 Application of Relative TSR Modifier to Funded PSUs
	  	 	d = a*(1 + c)	 	 	1,000	 	500	 	1,000
	 Applicable Vesting Percentage
	  	 	e	 	 	50%	 	75%	 	100%
	 Total Shares Eligible to Vest
	  	 	f = d*e	 	 	500	 	375	 	1000
	 Already Vested Shares
	  	 	g	 	 	n/a	 	500	 	500
	 # Shares Vesting (Minimum 0)
	  	 	h=max (f-g, 0)	 	 	500	 	0	 	500
	 Explanation:
	  				 	Hurdle and
relative
TSR
achievement
results in
1,000
shares, but
only 50% of
achieved
shares may
vest on First
Vesting
Date.	 	Although only 375
shares are eligible to
vest at Second Vesting
Date and 500 shares
previously vested, no
shares are required to
be returned.	 	Hurdle and relative
TSR achievement
results in 1,000 shares
to vest at Third
Vesting Date, of
which 500 already
vested, so remaining
500 vest on Third
Vesting Date.

			
	VMWARE	  	FY22 TSR PSU Award

  

 Example 2 (presumes no additional Stock Price Appreciation Hurdles are met after First Vesting Date)

  

	 	(1)	 On Second Vesting Date more shares are eligible to vest than previously vested on the First Vesting Date so the
excess shares vest on the Second Vesting Date. 

  

	 	(2)	 On Third Vesting Date, more shares are eligible to vest than the total previously vested on the First and
Second Vesting Dates, so the excess number of shares vest on the Third Vesting Date. 

  

											
	 	  	 	 	 	First	 	Second	 	Third
	 	  	 	 	 	Vesting Date	 	Vesting Date	 	Vesting Date
	 Shares Funded Based on Stock Price Appreciation Hurdle Achievement
	  	 	a	 	 	1,000	 	1,000	 	1,000
		  				 		 	(assumes no additional
Hurdles achieved)	 	(assumes no additional
Hurdles achieved)
	 Relative TSR vs. S&P 500 IT Index
	  	 	b	 	 	>50%ile	 	37.5%ile	 	>50%ile
	 Relative TSR Modifier
	  	 	c	 	 	100%	 	75%	 	100%
	 Application of Relative TSR Modifier to Funded PSUs
	  	 	d = a*(1 + c)	 	 	1,000	 	750	 	1,000
	 Applicable Vesting Percentage
	  	 	e	 	 	50%	 	75%	 	100%
	 Total Shares Eligible to Vest
	  	 	f = d*e	 	 	500	 	562.5	 	1000
	 Already Vested Shares
	  	 	g	 	 	n/a	 	500	 	562
	 # Shares Vesting (Minimum 0)
	  	 	h=max (f-g, 0)	 	 	500	 	62	 	438
	 Explanation:
	  				 	Hurdle and
relative
TSR
achievement
results in
1,000
shares, but
only 50% of
achieved
shares may
vest on First
Vesting
Date.	 	562.5 shares are
eligible to vest at
Second Vesting Date
and 500 shares
previously vested, so
62 shares are eligible
to vest on the Second
Vesting Date.	 	Hurdle and relative
TSR achievement
results in 1,000 shares
to vest at Third
Vesting Date, of
which 562 already
vested, so remaining
438 vest on Third
Vesting Date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]