Document:

Exhibit

Exhibit 10.12

APPROVED April. 16, 2018  
VMware, Inc.
Executive Bonus Program

Executive Bonus Program Objectives
Among the objectives of the VMware Bonus Program are to:  

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

		
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	reward superior performance

		
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	attract and retain exceptional executives; and

		
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	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 payouts will be made annually after the conclusion of the annual measurement periods ending on the last day of the Company’s fiscal year 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 designated percentage (the “Target Bonus Percentage”) of a Participant’s actual annual base salary earned for the Performance Period (the “Annual Base Salary”). The Target Bonus Percentage will be determined by the Committee within 90 days of the commencement of the performance period. 

The Calculated Bonus Amount, if any, may range 0% to 240% of the Target Bonus Percentage multiplied by the Participant’s Annual Base Salary depending upon performance achievement.  Minimum bonus thresholds are described below.  For purposes of this calculation, a Participant’s Annual Base Salary shall not exceed 200% of the Participant’s base salary rate as of the date that annual performance targets are approved.

Performance Period
Unless otherwise determined by the Compensaiton and Corporate Governance Committee, the performance periods for bonuses granted under the Executive Bonus Program shall run for the duration of the Company’s fiscal year (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.  

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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 based on  base pay and bonus at the start of each period.  

Termination: In order to vest in 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.

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 minimum performance threshold established within the Corporate Financial Metric in order for any bonus payouts to be made. If the minimum threshold is not achieved, the Executive Bonus Program shall not be funded and no bonus payouts shall be made.  The Corporate Financial Metrics and the relative weighting of the Corporate Financial Metrics and the MBOs shall be determined by the Committee within 90 days of the commencement of the performance period. The MBOs shall be determined by the Committee within 90 days of the commencement of the performance period; provided, however, that if the MBOs are used solely solely as a factor for the Administrator to consider in determining whether to exercise negative discretion, then they can be established or amended at any time during 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 the threshold achievement under the Corporate Financial Metric is met, then the MBO component is funded at a multiple of the Corporate Financial Metric percentage to be set by the Compensation and Corporate Governance Committee. 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, recoupment or other action at the discretion of the Compensation Committee as set forth in Section 7(d) of the Plan in the event of a restatement of 

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incorrect financial results, the Participant’s termination for “Cause” as such term is defined in the Plan and any other clawback policy that the Compensation and Corporate Governance Committee may adopt or impose. 

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 4Exhibit

Exhibit 10.23

VMware, Inc
3401 Hillview Avenue Palo Alto, CA 94304 (877) 486-9273
www.vmware.com

April 16, 2018

Dear Maurizio Carli,

We are pleased to confirm the details of your employment with VMware, Inc. (“VMware” or the “Company”) in the United States (the “US”) in connection with your localization, effective May 1, 2018 (the “Effective Date”). Your continuity of employment, which began on December 1, 2008, remains unaffected by the termination of your UK employment contract and your transfer to the US. However, the terms and conditions of your employment in this letter supersede and replace in their entirety those outlined in your Amended and Restated Long Term International Assignment Letter Agreement dated June 16, 2016 and any other compensation and benefits set forth in any prior agreements and arrangements between you and the Company or its subsidiaries.

Title and Position
Your position with the Company remains Executive Vice President, Worldwide Sales and Services reporting to Sanjay Poonen, Chief Operating Officer, Customer Operations. The Company, in its sole discretion, may modify job titles and managers from time to time as it deems necessary. As a full-time employee you will be eligible to participate in the Company's US benefit plans and programs, which may be amended from time to time.

Salary
Your annual salary commencing on the Effective Date will be $800,000, and will be paid semi-monthly in accordance with the Company’s normal payroll procedures.

Bonus
You will continue to be eligible to participate in VMware's Executive Bonus Program as it may be amended from time to time. You will be eligible for an annual target bonus opportunity of 100% of your eligible compensation. 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 the Executive Bonus Program and/or your bonus opportunity at any time.

Equity
Your existing equity awards will remain in effect in accordance with their terms, provided that, as applicable, the terms and conditions of the portions unvested as of the Effective Date will be adjusted to conform to VMware’s standard forms of such agreements for US employees. You will be eligible for future equity award grants by the Compensation and Corporate Governance Committee of the VMware Board of Directors in accordance with VMware’s ongoing compensation programs for its executive officers.

Localization Support
In light of your localization from the UK to the US, the Company will provide the following related support:
		
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	Post-employment relocation benefit: If you separate from service with the Company, other than for “Cause” as defined in VMware’s 2017 Equity and Incentive Plan, and provided that you do not provide services to a competitor of VMware for a period of twelve months after your termination date from 

Exhibit 10.23

VMware, VMware will pay for or reimburse you for the shipment of your household goods from the US to no more than two locations in Europe occurring within twelve months following your termination date in accordance with the VMware Relocation Policy then in effect. Such payment or reimbursement will be provided to you within 18 months of your termination date.
		
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	Three years of US, UK and France tax preparation assistance covering the US tax years of 2018, 2019 and 2020, UK tax years ending 5 April 2019, 2020 and 2021, and France tax years ending 2018, 2019, 2020 and 2021. The assistance offered is limited to the tax preparation only, and does not include compensation or reimbursement for trailing tax liabilities, if any. In addition, if you are subject to a dispute with tax authorities in the US, UK or France related to the tax years 2015 through 2021, VMware will provide assistance to you provided that such dispute is in connection with your employment with VMware and not in relation to your personal or other non-VMware-related tax matters.

Change in Control
You will continue to remain a participant in the VMware Change in Control Retention Plan adopted on February 25, 2015 as it may be amended from time in accordance with and subject to its terms and conditions.

Work Authorization
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. Your continued employment with VMware is conditioned upon maintaining your work authorization.

At Will Employment
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. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice.

Employment Verification
On or before the third business day after the day you execute this letter agreement, you will be asked to submit verification of your legal right to work in the U.S. If you do not submit verification of your legal right to work in the
U.S. by the third day after the Effective Date, the Company reserves the right to rescind this employment letter.

Conflict of Interest
You agree that during 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. Similarly, you agree not to bring any third party confidential information to the Company, including that of your former employer(s), and that in performing your duties for the Company you will not in any way utilize any such information.

Policy Compliance Statement
By agreeing to this employment letter, you will be expected to comply with the Company's rules and regulations, including but not limited to the Company's Business Conduct Guidelines and VMware Employment Agreement, which requires, among other provisions, the assignment of patent rights to any invention made during your employment at VMware and non-disclosure of proprietary and confidential information both during and after your employment at the Company.

Entire Agreement
This employment letter, along with the policies enclosed herewith, contain all of the terms, promises, 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 employment letter you agree 

Exhibit 10.23

that you have received, read, understand and agree to comply with the enclosed VMware Employment Agreement, VMware Business Conduct Guidelines, Equal Employment Opportunity Policy, VMware Acceptable Use Policy and VMware Anti-Discrimination, Anti-Harassment and Anti-Retaliation Policy as a condition of your employment.

Any modification or amendment of this employment letter must be in writing and signed by an officer of the Company and you.

Sincerely,

Pat Gelsinger
Chief Executive Officer

By providing my signature below, I accept this employment letter. I have read, understand and agree to the terms and conditions set forth within, as a condition of my employment.

Signature: /s/ Maurizio Carli

Date: April 30, 2018

Enclosures:
VMware Employment Agreement VMware Business Conduct Guidelines
VMware Anti-Discrimination, Anti-Harassment and Anti-Retaliation Policy VMware Equal Employment Opportunity Policy
VMware Acceptable Use Policy

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