Form of Notice of Grant of Performance Stock Units



 Exhibit 10.1.7 

 

			
	
Western®

 Digital
	  	 Western Digital Corporation
  

ID: 95-2657125

3355 Michelson Drive, Suite 100
 Irvine, CA 92612
 (949) 672-7000 x 27985/27986


 Notice of Grant of Stock Units 
 and Stock Unit Award Agreement – Executives 
  

					
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	  	Award Number:	  	«nbr»
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	  	Plan:	  	«pln»
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	  	ID:	  	«id»
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 Congratulations! Effective «optdt», you have been granted stock units of Western Digital
Corporation (the “Corporation”). These stock units were granted under the 2004 Performance Incentive Plan (the “Plan”).1 
 Total
Target Number of Stock Units: [            ] 
 First Measurement
Period covered by grant: June 30, 2012 to June 28, 2013 (the “First Measurement Period”). [            ] of your total target number of stock units
(the “First Measurement Period Units”) will vest and become payable based on the achievement of performance goals established for the First Measurement Period by the Compensation Committee of the Board of Directors of the Corporation (the
“Committee”). Upon determination by the Committee of the performance goals for the First Measurement Period, the goals shall be communicated to you in writing. The actual number of stock units that vest and become payable based on
performance during the First Measurement Period may range from 0% to 200% of the number of First Measurement Period Units. 
 Second
Measurement Period covered by grant: June 29, 2013 to June 27, 2014 (the “Second Measurement Period”). [            ] of your total target number of
stock units (the “Second Measurement Period Units”) will vest and become payable based on the achievement of performance goals established for the Second Measurement Period by the Committee. Upon determination by the Committee of the
performance goals for the Second Measurement Period, the goals shall be communicated to you in writing. The actual number of stock units that vest and become payable based on performance during the Second Measurement Period may range from 0% to 200%
of the number of Second Measurement Period Units. 
 Your stock unit award is subject to the terms and conditions of this Notice, the attached
Standard Terms and Conditions for Performance Stock Unit Awards – Executives (the “Standard Terms”) and the Plan. 

 

	1 	 The number of stock units subject to the award is subject to adjustment under Section 7.1 of the Plan (for example, and without limitation, in
connection with stock splits). 









 By accepting the award, you are agreeing to the terms of the award as set forth in those documents. You
should read the Plan, the Prospectus for the Plan, and the Standard Terms. The Standard Terms and the Plan are each incorporated into (made a part of) this Notice by this reference. You do not have to accept your award. If you do not agree to the
terms of your award, you should promptly return this Notice to the Western Digital Corporation Stock Plans Administrator. 
 A copy of the Plan,
the Prospectus for the Plan, and the Standard Terms have been provided to you. If you need another copy of these documents, or if you would like to confirm that you have the most recent version, please contact the Corporation’s Stock Plans
Administrator. 

  
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 Western Digital Corporation 3355 Michelson Drive, Suite 100 

Irvine, California 92612 Telephone 949 672-7000 
 STANDARD TERMS AND CONDITIONS FOR 
 PERFORMANCE STOCK UNIT AWARDS –
EXECUTIVES 
 Amended and Restated 2004 Performance Incentive Plan 

 1. Stock Units Subject to 2004 Performance Incentive Plan 

 The Stock Unit Award (the “Award”) referred to in the attached Notice of Grant of Stock Units and Stock Unit Award Agreement
(the “Notice”) was awarded under the Corporation’s Amended and Restated 2004 Performance Incentive Plan (the “Plan”). Each stock unit covered by the Award (“Stock Unit”) is a non-voting unit of measurement that is
deemed for bookkeeping purposes to be equivalent to one outstanding share of Common Stock (subject to adjustment as provided in Section 7.1 of the Plan). The holder of the Stock Units is referred to herein as the “Participant.” Stock
Units shall be used solely as a device for the determination of the number of shares of Common Stock to eventually be delivered to the Participant if Stock Units held by such Participant vest pursuant to Section 4, Section 7 or
Section 8 and shall not be treated as property or as a trust fund of any kind. The target number of Stock Units granted to the Participant shall be credited to an unfunded bookkeeping account maintained by the Corporation on behalf of the
Participant (a “Stock Unit Account”). 
 The Stock Units are subject to the terms and provisions of the Notice, these Standard Terms
and Conditions for Performance Stock Unit Awards – Executives (these “Standard Terms”), and the Plan. To the extent any information in the Notice, the prospectus for the Plan, or other information provided by the Corporation conflicts
with the Plan and/or these Standard Terms, the Plan or these Standard Terms, as applicable, shall control. To the extent any terms and provisions in these Standard Terms conflict with the terms and provisions of the Plan, the Plan shall control.
Capitalized terms not defined herein have the meanings set forth in the Plan or in the Notice, as applicable. 

 2. Award Agreement 

 The Notice and these Standard Terms, together, constitute the Award Agreement with respect to the Award pursuant to Section 5.3 of
the Plan. 

 3. Deferral of Stock Units 

 Notwithstanding anything to the contrary contained herein, the Participant may elect, on a form and in a manner provided by the
Corporation and by any applicable deferral election deadline, to defer the Stock Units subject to the Award under the Corporation’s Deferred Compensation Plan (the “Deferred Compensation Plan”). If the Participant makes such a
deferral election, the Stock Units will be paid (to the extent vested) in accordance with the payment provisions of the Deferred Compensation Plan (including without limitation the provisions requiring a six-month payment delay in the event that the
Participant is a “specified employee” for purposes of Section 409A of the Code), which are incorporated herein by this reference, and any applicable deferral election made by the Participant under and in accordance with the rules of
the Deferred Compensation Plan. Whether or not the Participant elects to defer the Stock Units, any shares of Common Stock issued or delivered with respect to the Stock Units shall be charged against the applicable share limits of the Plan.









 4. Vesting 

 Within a reasonable period of time following the end of the First Measurement Period, the Committee shall determine, in accordance with
the performance goals and related criteria and methodology established by the Committee for the First Measurement Period, the extent to which the performance goals have been achieved and the actual number of First Measurement Period Units becoming
vested based on performance during the First Measurement Period. Similarly, within a reasonable period of time following the end of the Second Measurement Period, the Committee shall determine, in accordance with the performance goals and related
criteria and methodology established by the Committee for the Second Measurement Period, the extent to which the performance goals have been achieved and the actual number of Second Measurement Period Units becoming vested based on performance
during the Second Measurement Period. Any Stock Units (including any related Stock Units credited as dividend equivalents pursuant to Section 5) that have not become vested based on performance during the First Measurement Period or Second
Measurement Period, as applicable, shall terminate as of the end of the applicable measurement period, and the Participant shall have no further rights with respect to such terminated Stock Units. 

Except as expressly provided in Sections 7 and 8 below, (i) the vesting schedule for the First Measurement Period Units requires continued
employment through the end of the First Measurement Period as a condition to the vesting of any First Measurement Period Units that vest based on performance and the rights and benefits under this Award Agreement with respect to such Stock Units,
and (ii) the vesting schedule for the Second Measurement Period Units requires continued employment through the end of the Second Measurement Period as a condition to the vesting of any Second Measurement Period Units that vest based on
performance and the rights and benefits under this Award Agreement with respect to such Stock Units. Except as expressly provided in Sections 7 and 8 below, employment for only a portion of the applicable vesting period, even if a substantial
portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment as provided in Section 8 below or under the Plan. 

 5. Dividend Equivalent Rights Distributions 

 As of any date that the Corporation pays an ordinary cash dividend on its Common Stock, the Corporation shall credit the
Participant’s Stock Unit Account with an additional number of Stock Units equal to (i) the per share cash dividend paid by the Corporation on its Common Stock on such date, multiplied by (ii) the number of Stock Units remaining
subject to the Award as of the related dividend payment record date, divided by (iii) the Fair Market Value of a share of Common Stock on the date of payment of such dividend. For these purposes, any Stock Units that vest and become payable in
excess of the number of First Measurement Period Units or Second Measurement Period Units, as applicable, shall be considered to have been granted on the grant date set forth in the Notice. The Stock Units credited pursuant to the foregoing
provisions of this Section 5 shall be subject to the same vesting, payment and other terms, conditions and restrictions as the original Stock Units to which they relate (including, for any Stock Units deferred pursuant to Section 3, the
payment provisions of the Deferred Compensation Plan and any applicable deferral election made by the Participant under and in accordance with the rules of the Deferred Compensation Plan). 

 6. Timing and Manner of Payment of Stock Units 

 Except as provided in Sections 3, 7 or 8, (i) any First Measurement Period Units that vest pursuant to the terms of the Notice and
these Standard Terms shall be paid within seventy (70) days following the end of the First Measurement Period and (ii) any Second Measurement Period Units that vest pursuant to the terms of the Notice and these Standard Terms shall be paid
within seventy (70) days following the end of the Second Measurement Period. For any Stock Units that become payable (whether pursuant to this Section 6, Section 7 or Section 8 hereof or Section 7 of the Plan), the
Corporation shall deliver to the Participant a number of shares of Common Stock (either by delivering one or more certificates for such shares or by entering such shares in book entry form, as determined by the Corporation in its sole discretion)
equal to the number of Stock Units becoming payable (including any Stock Units credited as dividend equivalents pursuant to Section 5 with respect to the Stock Units that vest and become payable), subject to adjustment as provided in
Section 7 of the Plan. The Corporation’s obligation to deliver shares of Common Stock with respect to Stock Units that vest and become payable is subject to the condition precedent that the Participant (or other person entitled under the
Plan to receive any shares with respect to the vested Stock Units) delivers to the Corporation any representations or other documents or assurances required pursuant to Section 8.1 of the Plan in advance of the scheduled payment date. The
Participant shall have no further rights with respect to any Stock Units that are paid pursuant to this Section 6 or that are terminated pursuant to Section 4 or Section 8 hereof or Section 7 of the Plan, and such Stock Units
shall be removed from the Participant’s Stock Unit Account upon the date of such payment or termination. The Corporation may, in its sole discretion, settle any Stock Units credited as dividend equivalents by a cash payment equal to the Fair
Market Value of a share of Common Stock on the date of payment (as opposed to payment in the form of shares of Common Stock). 

  
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 7. Change in Control Event Generally 

 Subject to Sections 7.5, 7.6 and 7.7 of the Plan, upon (or, as may be necessary to effectuate the purposes of this acceleration,
immediately prior to) the occurrence of a Change in Control Event in which the Stock Units subject to the Award are to terminate (i.e., the Administrator has not made a provision for the substitution, assumption, exchange or other continuation of
the Award and the Award will not otherwise continue in accordance with its terms in the circumstances), the target number of Stock Units subject to the Award that are then outstanding and unvested immediately prior to the Change in Control Event (or
such greater number of Stock Units as the Committee, in its sole discretion, may deem appropriate in the circumstances, and subject to pro-ration as provided in Section 8(a) in the event the Participant had died during the First Measurement
Period or Second Measurement Period and prior to the Change in Control Event) shall vest and be paid as soon as practicable following (and in all events no more than seventy (70) days after) the Change in Control Event. Notwithstanding the
foregoing or anything in this Award Agreement or the Plan, if the Participant has elected to defer the Stock Units as provided in Section 3, then payment with respect to such deferred Stock Units shall not be made until such Stock Units would
have become payable without regard to this Section 7 or Section 7 of the Plan and the Administrator may (to the extent the Stock Units subject to the Award would otherwise terminate in connection with the Change in Control Event) provide
for a cash amount of equivalent value at the time of the Change in Control Event to be paid in respect of the deferred Stock Units in lieu of the shares otherwise subject to such Stock Units. 

 8. Termination of Employment 

 (a) Termination of Employment Generally. Subject to earlier vesting as provided in Section 7 or below in this
Section 8, if the Participant ceases to be employed by the Corporation or its Subsidiaries for any reason (the last day that the Participant is employed by the Corporation or a Subsidiary prior to a period of non-employment by any such entity
is referred to as the Participant’s “Severance Date”), the Participant’s Stock Units shall be forfeited to the Corporation to the extent such Stock Units have not become vested upon the Severance Date; provided, however, that in
the event of the Participant’s death at a time when the Participant is employed by the Corporation or any of its Subsidiaries, a pro-rata portion of the then outstanding and otherwise unvested target number of Stock Units shall remain
outstanding and eligible to vest based on the achievement of the applicable performance goals as set forth in Section 4, and shall be paid to the Participant’s legal representative as provided in Section 6 above. In the event the date
of the Participant’s death is at a time when the Participant is employed by the Corporation or any of its Subsidiaries, the pro-rata portion of the target number of Stock Units that shall remain eligible to vest equals: (a) for any then
outstanding and otherwise unvested First Measurement Period Units, the number of First Measurement Period Units multiplied by a fraction the numerator of which is the number of days in the First Measurement Period that the Participant was employed
by the Corporation or one of its Subsidiaries prior to the Participant’s death and the denominator of which is the total number of days in the First Measurement Period, and (b) for any then outstanding and otherwise unvested Second
Measurement Period Units, the number of Second Measurement Period Units multiplied by a fraction the numerator of which is the number of days in the Second Measurement Period that the Participant was employed by the Corporation or one of its
Subsidiaries prior to the Participant’s death and the denominator of which is the total number of days in the Second Measurement Period. 

(b) Involuntary Termination of Employment. In the event the Participant ceases to be employed by the Corporation or any of its Subsidiaries during
the First Measurement Period or Second Measurement Period as a result of a termination of employment under circumstances that give rise to the payment of severance payments under either the Corporation’s Executive Severance Plan or Amended and
Restated Change of Control Severance Benefits Plan (in accordance with the terms of such plans and as each may be amended from time to time), the target number of Stock Units subject to the Award that are then outstanding and unvested immediately
prior to such a termination of employment shall vest and be paid within seventy (70) days following the date of such termination of employment. For the avoidance of doubt, and not in any way in limitation of the Participant’s rights to
earn the First Measurement Period Units based on performance, if such a termination occurs after the end of the First Measurement Period, the Participant shall not be entitled to receive by virtue of his termination of employment any First
Measurement Period Units to the extent not otherwise earned based on performance pursuant to Section 4. Notwithstanding the foregoing payment terms of this Section 8(b), if the Participant has elected to defer the Stock Units as provided
in Section 3, then payment with respect to such deferred Stock Units shall not be made until such Stock Units would have become payable without regard to this Section 8(b). 

  
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 9. Adjustments 

 Upon the occurrence of certain events relating to the Corporation’s stock contemplated by Section 7.1 of the Plan, the
Administrator will make adjustments if appropriate in the number of Stock Units then outstanding and the number and kind of securities that may be issued in respect of the Award. No such adjustment shall be made with respect to any ordinary cash
dividend for which dividend equivalents are paid pursuant to Section 5. 

 10. Withholding Taxes 

 Upon or in connection with the vesting of the Stock Units, the payment of dividend equivalents and/or the distribution of shares of
Common Stock in respect of the Stock Units, the Corporation (or the Subsidiary last employing the Participant) shall have the right at its option to (a) require the Participant to pay or provide for payment in cash of the amount of any taxes
that the Corporation or the Subsidiary may be required to withhold with respect to such vesting, payment and/or distribution, or (b) deduct from any amount payable to the Participant the amount of any taxes which the Corporation or the
Subsidiary may be required to withhold with respect to such vesting, payment and/or distribution. In any case where a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Award Agreement, the
Administrator may, in its sole discretion, direct the Corporation or the Subsidiary to reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of whole shares, valued at their then fair market value (with the
“fair market value” of such shares determined in accordance with the applicable provisions of the Plan), to satisfy such withholding obligation at the minimum applicable withholding rates. Any deferred Stock Units shall be subject to the
tax withholding provisions of the Deferred Compensation Plan. 

 11. Nontransferability 

 Neither the Award, nor any interest therein or amount or shares payable in respect thereof may be sold, assigned, transferred, pledged
or otherwise disposed of, alienated, encumbered, either voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the Corporation, or (b) transfers by will or the laws of descent
and distribution. 

 12. No Right to Employment 

 Nothing contained in this Award Agreement or the Plan constitutes an employment or service commitment by the Corporation or any of its
Subsidiaries, affects the Participant’s status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Participant any right to remain employed by or in service to the Corporation or
any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Participant’s
other compensation. 

 13. Rights as a Stockholder 

 Subject to the provisions of the Plan, the Notice and these Standard Terms, the Participant shall have no rights as a
stockholder of the Corporation, no dividend rights (except as expressly provided in Section 5 with respect to dividend equivalent rights) and no voting rights with respect to Stock Units awarded to the Participant and any shares of Common Stock
underlying or issuable in respect of such Stock Units until such shares of Common Stock are actually issued to and held of record by the Participant. No adjustments will be made for dividends or other rights of a holder for which the record date is
prior to the date of issuance of the stock certificate. 

  
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 14. Notices 

 Any notice to be given under the terms of this Award Agreement shall be in writing and addressed to the Corporation at its principal
office to the attention of the Secretary, and to the Participant at the address last reflected on the Corporation’s payroll records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall
be delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained
by the United States Government. Any such notice shall be given only when received, but if the Participant is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given five business days after the date mailed in
accordance with the foregoing provisions of this Section 14. 

 15. Arbitration 

 Any controversy arising out of or relating to this Award Agreement (including these Standard Terms) and/or the Plan, their enforcement
or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of their provisions, or any other controversy arising out of or related to the Award, including, but not limited to, any state or federal
statutory claims, shall be submitted to arbitration in Orange County, California, before a sole arbitrator selected from Judicial Arbitration and Mediation Services, Inc., Orange, California, or its successor (“JAMS”), or if JAMS is no
longer able to supply the arbitrator, such arbitrator shall be selected from the American Arbitration Association, and shall be conducted in accordance with the provisions of California Code of Civil Procedure §§ 1280 et seq. as the
exclusive forum for the resolution of such dispute; provided, however, that provisional injunctive relief may, but need not, be sought by either party to this Award Agreement in a court of law while arbitration proceedings are pending, and any
provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the arbitrator. Final resolution of any dispute through arbitration may include any remedy or relief which the arbitrator deems just
and equitable, including any and all remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the
arbitrator’s award or decision is based. Any award or relief granted by the arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties acknowledge and agree that
they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with any of the matters
referenced in the first sentence above. The parties agree that Corporation shall be responsible for payment of the forum costs of any arbitration hereunder, including the arbitrator’s fee. The parties further agree that in any proceeding with
respect to such matters, each party shall bear its own attorney’s fees and costs (other than forum costs associated with the arbitration) incurred by it or him or her in connection with the resolution of the dispute. By accepting the Award, the
Participant consents to all of the terms and conditions of this Award Agreement (including, without limitation, this Section 15). 

 16. Governing Law 

 This Award Agreement, including these Standard Terms, shall be interpreted and construed in accordance with the laws of the State of
Delaware (without regard to conflict of law principles thereunder) and applicable federal law. 

 17. Severability 

 If the arbitrator selected in accordance with Section 15 or a court of competent jurisdiction determines that any portion of this
Award Agreement (including these Standard Terms) or the Plan is in violation of any statute or public policy, then only the portions of this Award Agreement or the Plan, as applicable, which are found to violate such statute or public policy shall
be stricken, and all portions of this Award Agreement and the Plan which are not found to violate any statute or public policy shall continue in full force and effect. Furthermore, it is the parties’ intent that any order striking any portion
of this Award Agreement and/or the Plan should modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties hereunder. 

  
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 18. Entire Agreement 

 This Award Agreement (including these Standard Terms) and the Plan together constitute the entire agreement and supersede all prior
understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof, including, without limitation, any provisions of the Participant’s employment agreement with the Corporation that entitle the
Participant to receive a grant of “integration performance units”. By accepting the Award, the Participant hereby agrees that the Award is in full satisfaction of the Participant’s rights to receive “integration performance
units” pursuant to the terms of the Participant’s employment agreement with the Corporation. The Plan and this Award Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the
Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to be a
subsequent waiver of the same provision or a waiver of any other provision hereof. 

 19. Section Headings 

 The section headings of this Award Agreement are for convenience of reference only and shall not be deemed to alter or affect any
provision hereof. 

  
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