VMware 2013 Annual Report Download - page 104

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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