VMware 2010 Annual Report Download - page 132

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Exhibit 10.12
OPTION AGREEMENT
(UNITED STATES)
THIS OPTION AGREEMENT (this “Agreement”) dated as of [TO COME] (“Grant Date”), is between VMware, Inc., a Delaware
corporation (the “Company”), and [TO COME] (the “Participant”), relating to options granted under the VMware, Inc. 2007 Equity and
Incentive Plan (the “Plan”). Capitalized terms used in this Agreement without definition shall have the meaning ascribed to such terms in the
Plan.
1. Grant of Equity Option, Equity Option Price and Term .
(a) The Company grants to the Participant an option (the “Option”) to purchase
[TO COME]
shares of Stock, at a price of $
[TO
COME] per share, subject to the provisions of the Plan and the terms and conditions herein. The Option is not an incentive stock
option within the meaning of Section 422 of the Code.
(b)
The term of this Option shall be a maximum period of six (6) years from the Grant Date (the
“
Option Period
”
).
The Vesting
Commencement Date shall be , 201 . During the Option Period, the Option shall be exercisable as of the date set forth
below according to the percentage set forth opposite such date, subject to the Participant’
s continued employment with the Company,
a Subsidiary, the Parent or an Affiliate in which the Company and/or Parent hold, directly or indirectly, at least 80% of the equity or
voting interest through each vesting date:
Date
Cumulative Percentage Exercisable
18 months following the Vesting
Commencement Date
37.5%
Monthly, commencing 19 months
following the Vesting Commencement
Date, until fully vested
2.0833 (rounded down to the
nearest whole share)%
(c)
Notwithstanding the foregoing, unless otherwise determined by the Committee in its sole discretion, in the event the Participant
incurs a termination of employment for any reason whatsoever such that the Participant is no longer employed by any of the
Company, the Subsidiaries, the Parent or an Affiliate in which the Company and/or Parent hold, directly or indirectly, at least 80% of
the equity or voting interest, then the Option, to the extent not otherwise exercisable shall terminate and to the extent exercisable at
the time of such termination, may be exercised for the lesser of ninety (90) days from the date of such termination of employment or
the remainder of the Option Period, unless such termination is (i) for Cause, in which case the Option will terminate immediately or
(ii) due to the Participant’s death or disability (as defined under the applicable long-term disability plan of the Company, Subsidiary,
Parent or Affiliate or, if there is no such plan, as determined by the Committee), in which case the Option shall become 100%
exercisable and may be exercised for three (3) years from the date of such termination of employment or if earlier, the remainder of
the Option