EX-10.1.5






Notice of Grant of Stock Option

and Option Agreement – Non-Executives




Western Digital Corporation


20511 Lake Forest Drive


Lake Forest, CA 92630-7741



ID: 95-2647125



	 	 	 
	Name

Address Line 1

City, State Zip

	 	Option No.: #######

Plan:2004 Performance Incentive Plan

ID: ####






Congratulations! Effective <<date>>, you have been granted a(n) <<option
type>> to buy <<number>> shares of Western Digital Corporation stock at <<$
option price>> per share. The option was granted under the 2004 Performance Incentive Plan
(the “Plan”).1



Vesting:



Shares1 Vest Type Full Vesting Expiration
Date2



Your option is subject to the terms and conditions of this Notice, the attached Standard Terms and
Conditions for Stock Options – Non-Executives (the “Standard Terms”), and the Plan. By accepting
the option, you are agreeing to the terms of the option 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 option. If you do not agree to the terms of your option, 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 any of these documents, or if you would like to confirm that you have
the most recent version, you may obtain another copy in the Company Library on the E*TRADE web
site. The documents are also available on the Western Digital Intranet site under Legal.




	1.	 	The number of shares subject to the option and the per-share exercise price of the option
are subject to adjustment under Section 7.1 of the Plan (for example, and without limitation,
in connection with stock splits).






	2.	 	The option is subject to early termination under Section 5 of the attached Standard Terms and
Conditions for Stock Options.





1



Western Digital Corporation 20511 Lake Forest Drive



Lake Forest, California 92630 Telephone 949 672-7000



STANDARD TERMS AND CONDITIONS FOR STOCK OPTIONS

Amended and Restated 2004 Performance Incentive Plan





	1.	 	Option Subject to Amended and Restated 2004 Performance Incentive Plan.	 





The option (the “Option”) referred to in the attached Notice of Grant of Stock Option and Option
Agreement (the “Notice”) was issued under Western Digital Corporation’s (the “Corporation’s”)
Amended and Restated 2004 Performance Incentive Plan (the “Plan”). The Option is subject to the
terms and provisions of the Notice, these Standard Terms and Conditions for Stock Options (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. The holder of the Option is referred to herein as the “Participant.”
Capitalized terms not defined herein have the meanings set forth in the Plan.



Unless otherwise expressly provided in other sections of these Standard Terms, provisions of the
Plan that confer discretionary authority on the Board or the Administrator do not and shall not be
deemed to create any rights in the Participant unless such rights are expressly set forth herein or
are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate
action of the Board or the Administrator under the Plan after the grant date of the Option.




	2.	 	Option Agreement.	 





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




	3.	 	Type of Stock Option	 





The Notice indicates whether the Option is intended to qualify as an incentive stock option (an
“ISO”) under the Internal Revenue Code of 1986, as amended (the “Code”), or is a nonqualified stock
option (an option that is not an ISO). ISOs are subject to additional requirements under the Code
as generally described in Section 5.1 of the Plan. If the aggregate fair market value of the
shares with respect to which ISOs (whether granted under the Option or otherwise) first become
exercisable by the Participant in any calendar year exceeds $100,000, as measured on the applicable
option grant dates and as determined in accordance with Code Section 422 and the regulations
promulgated thereunder, the limitations of Section 5.1.2 of the Plan shall apply and to such extent
the Option will be rendered a nonqualified stock option.



4. Vesting



The Option shall vest and become exercisable in percentage installments of the aggregate number of
shares subject to the Option as set forth in the Notice. The first vesting installment of the
Option shall be a fixed installment covering the number of shares, and vesting on the fixed vesting
date, set forth in the first line of the Notice under “Vesting.” In each case, the Option is
subject to earlier termination in accordance with Section 5.



The Option may be exercised only to the extent it is vested and exercisable. To the extent that
the Option is vested and exercisable, the Participant has the right to exercise the Option (to the
extent not previously exercised), and such right shall continue, until the expiration or earlier
termination of the Option as provided in Section 5. Fractional share interests shall be
disregarded, but may be cumulated.



The vesting schedule requires continued employment or service through each applicable vesting date
as a condition to the vesting of the applicable installment of the Option and the rights and
benefits under this Option Agreement. Employment or service for only a portion of the 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 or services as provided in Section 6 below or under the Plan.




	5.	 	Expiration of Option	 





The Option shall expire and the Participant shall have no further rights with respect
thereto upon the earliest to occur of (a) the termination of the Option as provided in
Section 6 below, (b) the termination of the Option as provided in Section 7.4 of the Plan,
or (c) the Expiration Date set forth in the Notice. The Option may not be exercised at any
time after a termination or expiration of the Option.




	6.	 	Termination of Employment, Total Disability or Death	 





The Option shall be exercisable by the Participant (or his or her permitted successor in interest)
following the Participant’s termination of employment only to the extent provided below in this
Section 6. Except as provided in Section 6(f) below, 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.” In each case described below, the Option shall
be subject to earlier termination as contemplated by Section 5.



(a) Termination of Employment Generally. In the event the Participant ceases to be an
employee of the Corporation or any of its Subsidiaries for any reason (other than a termination of
employment by the Corporation or one of its Subsidiaries for Cause (as defined below), due to the
Participant’s death or Retirement (as defined below), or at a time when the Participant is Totally
Disabled (as defined below)), the Option shall terminate on the Participant’s Severance Date to the
extent that it is not vested and exercisable on that date and, to the extent that the Option is
exercisable by the Participant on the Participant’s Severance Date, it may be exercised by the
Participant at any time within three months following the Participant’s Severance Date. The
Option, to the extent exercisable for the three-month period following the Participant’s Severance
Date and not exercised during such period, shall terminate at the close of business on the last day
of the three-month period.



(b) Total Disability. In the event that the Participant ceases to be an employee of the
Corporation or any of its Subsidiaries at a time when the Participant is Totally Disabled and is
not eligible to Retire, the Option shall terminate on the Participant’s Severance Date to the
extent that it is not vested and exercisable on that date. In such circumstances, or in the event
that the Participant incurs such a Total Disability within not more than three months of the
Participant’s Severance Date if the termination of the Participant’s employment was for any reason
other than a termination of employment by the Corporation or one of its Subsidiaries for Cause, the
Option may, to the extent the Option was exercisable by the Participant on the Participant’s
Severance Date, be exercised by the Participant (or, if the Participant is then incapacitated, by
the Participant’s personal representatives, heirs, or legatees) at any time during the one-year
period following the Participant’s Severance Date. The Option, to the extent exercisable for the
one-year period following the Participant’s Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the one-year period. For purposes of
the Option, “Total Disability” (which term shall include “Totally Disabled”) means a “permanent and
total disability” within the meaning of Section 22(e)(3) of the Code.



(c) Death. If the Participant dies while he or she is an employee of the Corporation or
any of its Subsidiaries, the Option (to the extent outstanding and not previously vested and
exercisable) shall vest and become exercisable on the Participant’s Severance Date and shall
continue to be exercisable by the Participant’s personal representatives, heirs or legatees, as
applicable, at any time during the three-year period following the Participant’s Severance Date.
The Option, to the extent exercisable for the three-year period following the Participant’s
Severance Date and not exercised during such period, shall terminate at the close of business on
the last day of the three-year period.



(d) Retirement. If the Participant Retires from the Corporation or one of its
Subsidiaries, the Option (to the extent outstanding and not previously vested and exercisable)
shall vest and become exercisable on the Participant’s Severance Date and shall continue to be
exercisable by the Participant (or if the Participant is then deceased, by the Participant’s
personal representatives, heirs or legatees, as applicable) at any time during the three-year
period following the Participant’s Severance Date. The Option, to the extent exercisable for the
three-year period following the Participant’s Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the three-year period. Notwithstanding
the foregoing, in the event a Retired Participant provides services to a competitor of the
Corporation or any of its Subsidiaries as an employee, consultant, director, officer,
representative, independent contractor or otherwise, or otherwise competes with the business of the
Corporation or its Subsidiaries (in each case as determined by the Administrator its sole
discretion), the Option, to the extent not previously exercised, shall immediately terminate. In
addition, in such event the Corporation shall have the right to recover any profits realized by
such Retired Participant as a result of any exercise of the Option during the six-month period
prior to the date such Retired Participant commenced providing such services to a competitor. For
this purpose, the Participant shall be deemed to have “Retired” (which term shall include
“Retirement,” “Retire” and “Retires”) if the Participant retires from employment with the
Corporation or one of its Subsidiaries for any reason other than Cause after satisfying all of the
following at the time of such retirement: (i) the Participant is at least 65 years of age, (ii) the
Participant’s age plus total years of continuous service with the Corporation or any of its
Subsidiaries (as determined by the Administrator in its sole discretion) totals at least 75, and
(iii) the Participant has five (5) or more years of continuous service with the Corporation or any
of its Subsidiaries (as determined by the Administrator in its sole discretion) ending on the date
of such retirement. For purposes of calculating “age plus total years of continuous service” under
clause (ii) above, fractional years shall be disregarded but may be cumulated (so that, by way of
example only, a Participant who is age 65 and 6 months with 9 years and 6 months of continuous
service would satisfy the requirements of clause (ii), while a Participant who is age 65 and 6
months with 9 years and 5 months of continuous service would not satisfy the requirements of clause
(ii)). For purposes of calculating the Participant’s “years of continuous service” under clause
(ii) or clause (iii) above, in no event shall the Participant accrue more than one year of service
with respect to any period of twelve consecutive months (that is, concurrent employment by both the
Corporation and one or more of its Subsidiaries, or by multiple Subsidiaries, for a month shall not
be counted as more than one month of service).



(e) Termination for Cause. Notwithstanding the foregoing provisions of this Section 6, if
the Participant’s employment with the Corporation or any of its Subsidiaries is terminated by the
Corporation or one of its Subsidiaries for Cause, the Option (whether or not all or any portion of
such Option is then vested and exercisable) shall immediately terminate on the Participant’s
Severance Date. For these purposes, the term “Cause” shall mean the occurrence or existence of any
of the following with respect to the Participant, as determined by the Administrator or its
delegate or delegates in its or their sole discretion:




(i) the Participant’s conviction by, or entry of a plea of guilty or nolo contendre in,
a court of competent and final jurisdiction for any crime involving moral turpitude or any
felony punishable by imprisonment in the jurisdiction involved;




(ii) whether prior or subsequent to the date hereof, the Participant’s willful engaging
in dishonest or fraudulent actions or omissions;




(iii) the Participant’s failure or refusal to perform his or her duties as reasonably
required by his or her employer;




(iv) negligence, insubordination, violation by the Participant of any duty (loyalty or
otherwise) owed to the Corporation, one or more of its Subsidiaries, or any of their
respective affiliates, or any other misconduct on the part of the Participant;




(v) the repeated non-prescription use of any controlled substance, or the repeated use
of alcohol or any other non-controlled substance which in the Administrator’s (or its
delegate’s or delegates’) reasonable determination interferes with the Participant’s service
as an officer or employee of the Corporation, one or more of its Subsidiaries, or any of
their respective affiliates;




(vi) sexual harassment by the Participant that has been reasonably substantiated and
investigated;




(vii) involvement in activities representing conflicts of interest with the
Corporation, one or more of its Subsidiaries, or any of their respective affiliates;




(viii) improper disclosure of confidential information;




(ix) conduct endangering, or likely to endanger, the health or safety of another
employee;




(x) falsifying or misrepresenting information on the records of the Corporation, one or
more of its Subsidiaries, or any of their respective affiliates;




(xi) the Participant’s physical destruction or theft of substantial property or assets
of the Corporation, one or more of its Subsidiaries, or any of their respective affiliates;




(xii) breach of any policy of, or agreement with, the Corporation, one or more of its
Subsidiaries, or any of their respective affiliates applicable to the Participant or to
which the Participant is otherwise bound.



(f) Continuation of Services. If the Participant’s employment with the Corporation or any
of its Subsidiaries terminates (regardless of the reason) but, immediately thereafter, the
Participant continues to render services to the Corporation or any of its Subsidiaries as an
employee, director or consultant, such Participant’s Severance Date for purposes of the Option
shall not be the date such Participant’s employment terminates, but instead shall be the last day
that the Participant either is employed by or actually renders services to the Corporation or any
of its Subsidiaries. As provided in Section 6.1 of the Plan, the Administrator shall be the sole
judge for purposes of the Option of whether the Participant continues to render services the
Corporation or its Subsidiaries and the date, if any, upon which such services shall be deemed to
have terminated.



(g) Exercise Period for ISOs. Notwithstanding any post-termination exercise period
provided for herein or in the Plan, the Option will qualify as an ISO only if it is exercised
within the applicable exercise periods for ISOs under, and meets all of the other requirements of,
the Code. If the Option is not exercised within the applicable exercise periods for ISOs or does
not meet such other requirements, the Option will be rendered a nonqualified stock option.




	7.	 	Exercise of Option	 





The Option shall be exercisable by the delivery to the Secretary of the Corporation (or such other
person as the Administrator may require pursuant to such administrative exercise procedures as the
Administrator may implement from time to time) of:




	 	•	 	a written notice stating the number of shares of Common Stock to be purchased
pursuant to the Option or by the completion of such other administrative exercise
procedures as the Administrator may require from time to time,






	 	•	 	payment in full for the purchase price (the per-share exercise price of the Option
multiplied by the number of shares to be purchased) in cash, check or by electronic
funds transfer to the Corporation, or (subject to compliance with all applicable laws,
rules, regulations and listing requirements and further subject to such rules as the
Administrator may adopt as to any non-cash payment) in shares of Common Stock already
owned by the Participant, valued at their fair market value on the exercise date,
provided, however, that any shares initially acquired upon exercise of
a stock option or otherwise from the Corporation must have been owned by the
Participant for at least six (6) months before the date of such exercise;






	 	•	 	any written statements or agreements required by the Administrator pursuant to
Section 8.1 of the Plan; and






	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.





The Administrator also may, but is not required to, authorize a non-cash payment alternative by
notice and third party payment in such manner as may be authorized by the Administrator.



The Option will qualify as an ISO only if it meets all of the applicable requirements of the Code.




	8.	 	Nontransferability	 





The Option and any other rights of the Participant under this Option Agreement or the Plan are
nontransferable and exercisable only by the Participant, except as set forth in Section 5.7 of the
Plan. For purposes of clarity, the Administrator has not authorized any transfer exceptions as
contemplated by Section 5.7.2 of the Plan.




	9.	 	No Right to Employment	 





Nothing contained in this Option Agreement or the Plan constitutes a continued 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.




	10.	 	Rights as a Stockholder	 





Neither the Participant nor any beneficiary or other person claiming under or through the
Participant shall have any right, title, interest or privilege in or to any shares of Common Stock
subject to the Option except as to such shares, if any, as shall have been actually issued to such
person and recorded in such person’s name following the exercise of the Option or any portion
thereof.




	11.	 	Notices	 





Any notice to be given under the terms of this Option 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 11.




	12.	 	Arbitration	 





Any controversy arising out of or relating to this Option 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
or claim arising out of or related to the Option or the Participant’s employment, 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 Option 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 Option, the Participant consents to all of the terms and conditions of this Option
Agreement (including, without limitation, this Section 12).




	13.	 	Governing Law	 





This Option 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.



14. Severability



If the arbitrator selected in accordance with Section 12 or a court of competent jurisdiction
determines that any portion of this Option Agreement (including these Standard Terms) or the Plan
is in violation of any statute or public policy, then only the portions of this Option Agreement or
the Plan, as applicable, which are found to violate such statute or public policy shall be
stricken, and all portions of this Option 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 Option 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.




	15.	 	Entire Agreement	 





This Option 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. The Plan and this Option 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.



16. Section Headings



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




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