On February 12, 2008, the Compensation and Corporate Governance Committee of the VMware, Inc. Board of Directors established corporate and individual performance goals for its 2008 cash bonus plan for its President and Chief Executive Officer, Diane B. Greene, and its other named executive officers: Mark S. Peek, Carl M. Eschenbach, Rashmi Garde and Dev R. (Richard) Sarwal. The 2008 cash bonus plan provides for the payment of incentive bonuses upon achievement of certain corporate and individual performance objectives. Pursuant to her employment agreement, Ms. Greene's bonus target is 100% of her annual salary. Each other officer was assigned a bonus target ranging from 45% to 50% of the officer's base salary. 75% of the bonus target is tied to the achievement of corporate goals based on VMware's annual financial performance and 25% of the bonus target is tied to the achievement of individual Management by Objectives, or MBO, plan goals established for each officer. Bonus payments are based on annual performance. If a minimum of at least 80% of the corporate performance targets are not met, then no bonus amounts will be paid. The calculated bonus amount will vary up to a maximum payment of 137.5% of the bonus target if actual performance equals or exceeds 150% of the corporate performance target and all MBO targets are achieved.