Document:

exv10w14

Exhibit 10.14

WESTERN DIGITAL CORPORATION

AMENDED AND RESTATED

CHANGE OF CONTROL SEVERANCE PLAN

     1. Purpose of Plan. The Executives have made and are expected to make major
contributions to the profitability, growth and financial strength of the Company and its
affiliates. In addition, the Company considers the continued availability of the Executives’
services, managerial skills and business experience to be in the best interest of the Company and
its stockholders and desires to assure the continued services of the Executives on behalf of the
Company and/or its affiliates without the distraction of the Executives occasioned by the
possibility of an abrupt change in control of the Company. This Plan was initially approved by the
Board on March 29, 2001 and subsequently amended and restated on November 6, 2008.

     2. Definitions. Whenever the following terms are used in this Plan, they shall have
the meaning specified below unless the context clearly indicates to the contrary:

          2.01 “Board” shall mean the Board of Directors of the Company.

          2.02 “Cause” shall mean the occurrence or existence of any of the following with
respect to the Executive, as determined by a majority of the disinterested directors of the Board
or the Committee:

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

          (b) whether prior or subsequent to the date hereof, the Executive’s willful engaging in
dishonest or fraudulent actions or omissions which results directly or indirectly in any
demonstrable material financial or economic harm to the Company or any of its subsidiaries or
affiliates;

          (c) the Executive’s failure or refusal to perform his or her duties as reasonably required by
the Employer, provided that the Executive shall have first received written notice from the
Employer stating with specificity the nature of such failure or refusal and affording the Executive
at least five (5) days to correct the act or omission complained of;

          (d) gross negligence, insubordination, material violation by the Executive of any duty of
loyalty to the Company or any subsidiary or affiliate of the Company, or any other material
misconduct on the part of the Executive, provided that the Executive shall have first received
written notice from the Company stating with specificity the nature of such action or violation and
affording the Executive at least five (5) days to correct such action or violation;

 

 

          (e) the repeated non-prescription use of any controlled substance, or the repeated use of
alcohol or any other non-controlled substance which in the Board’s reasonable determination renders
the Executive unfit to serve in his or her capacity as an officer or employee of the Company or any
of its subsidiaries or affiliates;

          (f) sexual harassment by the Executive that has been reasonably substantiated and
investigated;

          (g) involvement in activities representing conflicts of interest with the Company or any of
its subsidiaries or affiliates;

          (h) improper disclosure of confidential information;

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

          (j) falsifying or misrepresenting information on the records of the Company or any of its
subsidiaries or affiliates; or

          (k) the Executive’s physical destruction or theft of substantial property or assets of the
Company or any of its subsidiaries or affiliates.

          2.03 “Change in Control” shall mean an occurrence of any of the following events,
unless the Board shall provide otherwise:

               (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act, a
“Person”), alone or together with its affiliates and associates, including any group of persons
which is deemed a “person” under Section 13(d)(3) of the Exchange Act (other than the Company or
any subsidiary thereof or any employee benefit plan (or related trust) of the Company or any
subsidiary thereof, or any underwriter in connection with a firm commitment public offering of the
Company’s capital stock), becomes the “beneficial owner” (as such term is defined in Rule 13d-3 of
the Exchange Act, except that a person shall also be deemed the beneficial owner of all securities
which such person may have a right to acquire, whether or not such right is presently exercisable,
referred to herein as “Beneficially Own” or “Beneficial Owner” as the context may require) of
thirty-three and one third percent or more of (i) the then outstanding shares of the Company’s
common stock (“Outstanding Company Common Stock”) or (ii) securities representing thirty-three and
one-third percent or more of the combined voting power of the Company’s then outstanding voting
securities (“Outstanding Company Voting Securities”) (in each case, other than an acquisition in
the context of a merger, consolidation, reorganization, asset sale or other extraordinary
transaction covered by, and which does not constitute a Change in Control under, clause (c) below);

               (b) a change, during any period of two consecutive years, of a majority of the Board as
constituted as of the beginning of such period, unless the election, or nomination for election by
the Company’s stockholders, of each director who was not a director at the beginning of such period
was approved by vote of at least two-thirds of the Incumbent Directors then in office (for purposes
hereof, “Incumbent Directors” shall consist of the directors holding office as of the Effective
Date and any person becoming a director subsequent to such date whose

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election, or nomination for election by the Company’s stockholders, is approved by a vote of
at least a majority of the Incumbent Directors then in office);

               (c) consummation of any merger, consolidation, reorganization or other extraordinary
transaction (or series of related transactions) involving the Company, a sale or other disposition
of all or substantially all of the assets of the Company, or the acquisition of assets or stock of
another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each
case unless, following such Business Combination, (1) all or substantially all of the individuals
and entities that were the Beneficial Owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such Business Combination Beneficially
Own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity that, as a result of such transaction, owns the Company
or all or substantially all of the Company’s assets directly or through one or more subsidiaries (a
“Parent”)), (2) no Person (excluding any entity resulting from such Business Combination or a
Parent or any employee benefit plan (or related trust) of the Company or such entity resulting from
such Business Combination or Parent, and excluding any underwriter in connection with a firm
commitment public offering of the Company’s capital stock) Beneficially Owns, directly or
indirectly, more than thirty-three and one third percent of, respectively, the then-outstanding
shares of common stock of the entity resulting from such Business Combination or the combined
voting power of the then-outstanding voting securities of such entity, and (3) at least a majority
of the members of the board of directors or trustees of the entity resulting from such Business
Combination or a Parent were Incumbent Directors at the time of execution of the initial agreement
or of the action of the Board providing for such Business Combination; or

               (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company (other than in the context of a merger, consolidation, reorganization, asset sale or
other extraordinary transaction covered by, and which does not constitute a Change in Control
under, clause (c) above).

          2.04 “Code” shall mean the Internal Revenue Code of 1986, as amended.

          2.05 “Committee” shall mean the Compensation Committee of the Board.

          2.06 “Company” shall mean Western Digital Corporation, a Delaware corporation, and, as
permitted by Section 13.03(b), its successors and assigns.

          2.07 “Date of Termination” following a Change in Control shall mean the dates, as the
case may be, for the following events: (a) if the Executive’s employment is terminated by death,
the date of death, (b) if the Executive’s employment is terminated due to a Permanent Disability,
thirty (30) days after the Notice of Termination is given (provided that the Executive shall not
have returned to the performance of his or her duties on a full-time basis during such period), (c)
if the Executive’s employment is terminated pursuant to a termination for Cause, the date specified
in the Notice of Termination, and (d) if the Executive’s employment is

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terminated for any other reason, fifteen (15) days after delivery of the Notice of Termination
unless otherwise agreed by the Executive and the Company.

          2.08 “Disability” shall mean that the Executive is unable, by reason of injury,
illness or other physical or mental impairment, to perform each and every task of the position for
which the Executive is employed, which inability is certified by a licensed physician reasonably
selected by the Employer.

          2.09 “Effective Date” shall mean March 29, 2001.

          2.10 “Employer” shall mean the Company or its subsidiary employing Executive, provided
however, that nothing contained herein shall prohibit the Company or another of its subsidiaries
fulfilling any obligation of the employing entity to the Executive and for such purposes will be
deemed the act of the Employer.

          2.11 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          2.12 “Executive” shall mean any Tier 1 Executive or Tier 2 Executive.

          2.13 “Good Reason” shall mean any of the following without the Executive’s express
written consent:

          (a) a material diminution in the Executive’s authority, duties or responsibilities in effect
immediately prior to the Change in Control;

          (b) a material diminution by the Employer in the Executive’s base compensation in effect
immediately prior to a Change in Control;

          (c) any material breach by the Company or the Employer of any provision of this Plan;

          (d) the requirement by the Employer that the Executive’s principal place of employment be
relocated more than fifty (50) miles from his or her place of employment immediately prior to a
Change in Control; or

          (e) the Company’s failure to obtain a satisfactory agreement from any successor to assume and
agree to perform the Company’s obligations under this Plan, as contemplated in Section
13.03(b) hereof;

provided, however, that any such condition shall not constitute “Good Reason” unless both (i) the
Executive provides written notice to the Company of the condition claimed to constitute Good Reason
within ninety (90) days of the initial existence of such condition, and (ii) the Company fails to
remedy such condition within thirty (30) days of receiving such written notice thereof; and
provided, further, that in all events the termination of the Executive’s employment with the
Company shall not be treated as a termination for “Good Reason” unless such termination occurs not
more than one (1) year following the initial existence of the condition claimed to constitute “Good
Reason.”

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          2.14 “Notice of Termination” shall mean a written notice which shall indicate the
specific termination provision in this Plan relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated.

          2.15 “Permanent Disability” shall mean if, as a result of the Executive’s Disability,
the Executive shall have been absent from his or her duties with the Employer on a full-time basis
for six (6) months of any consecutive eight (8) month period.

          2.16 “Separation from Service,” with respect to an Executive, shall mean that the
Executive dies, retires, or otherwise has a termination of employment with the Company that
constitutes a “separation from service” within the meaning of Treasury Regulation Section
1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.

          2.17 “Termination of Employment” shall mean the time when the employee-employer
relationship between the Executive and the Employer is terminated for any reason, voluntarily or
involuntarily, with or without Cause, including, without limitation, a termination by reason of
resignation, discharge (with or without Cause), Permanent Disability, death or retirement, but
excluding terminations where there is a simultaneous re-employment of the Executive by the Company
or a subsidiary of the Company.

          2.18 “Tier 1 Executive” shall mean an officer of the Company who is elected or
appointed by the Board of Directors and is subject to Section 16 of the Exchange Act.

          2.19 “Tier 2 Executive” shall mean an employee who is appointed as an officer of the
Company by the President of the Company pursuant to the Company’s Bylaws and such other employee of
the Company or any of its subsidiaries who is designated as a Tier 2 Executive by the Board or the
Committee.

     3. Term. This Plan shall be effective until March 29, 2011.

     4. Compensation Upon A Change In Control.

          4.01 Salary. Commencing on the date a Change in Control shall occur, the Employer
shall pay a salary to the Executive at an annual rate at least equal to the annual salary payable
to the Executive immediately prior to such date. The salary, as it may be changed from time to
time by mutual agreement between the Executive and the Employer, shall be paid in equal
installments on each regular payroll payment date after the date of the Change in Control and shall
be subject to regular withholding for federal, state and local taxes in accordance with law.

          4.02 Other Benefits.

          (a) Commencing on the date a Change in Control shall occur, the Executive shall be entitled to
participate in and to receive benefits under those employee benefit plans or arrangements
(including, without limitation, any pension or welfare plan, life, health, hospitalization and
other forms of insurance and all other “fringe” benefits or perquisites) made available to
executives of the Company or the Employer, or any successor thereto. The

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Executive’s level of participation in, or entitlements under, any such employee benefit plan
or arrangement of any successor to the Company shall be calculated as if the Executive had been an
employee of such successor to the Company from the date of the Executive’s employment by the
Employer.

          (b) Commencing on the date a Change in Control shall occur, the Executive shall be entitled to
reimbursement for all reasonable travel and other business expenses incurred by the Executive in
the performance of his or her duties on behalf of the Employer. Any such reimbursement shall be
paid in accordance with the usual practices of the Employer and in all events not later than the
end of the Executive’s taxable year following the Executive’s taxable year in which the related
expense was incurred.

     5. Termination of Employment of Executive.

          5.01 Payment of Severance Benefits Upon Change of Control. In the event of a Change
in Control of the Company, Executive shall be entitled to the severance benefits set forth in
Section 6, but only if during the term of this Plan:

          (a) the Executive’s employment by the Employer is terminated by the Employer without Cause
within one (1) year after the date of the Change in Control;

          (b) the Executive terminates his or her employment with the Employer for Good Reason within
one (1) year after the date of the Change in Control and complies with the procedures set forth in
Section 5.02;

          (c) the Executive’s employment by the Employer is terminated by the Employer without Cause
prior to the Change in Control and such termination arose in connection with or in anticipation of
the Change in Control (for purposes of this Plan, meaning that at the time of such termination the
Company had entered into an agreement, the consummation of which would result in a Change in
Control, or any person had publicly announced its intent to take or consider actions that would
constitute a Change in Control, and in each case such Change in Control is consummated, or the
Board adopts a resolution to the effect that a potential Change in Control for purposes of this
Plan has occurred); or

          (d) the Executive terminates his or her employment with the Employer for Good Reason prior to
the Change in Control, the event constituting Good Reason arose in connection with or in
anticipation of the Change in Control and the Executive complies with the procedures set forth in
Section 5.02.

          5.02 Good Reason.

          (a) Notwithstanding anything contained in any employment agreement between the Executive and
the Employer to the contrary, during the term of this Plan the Executive may terminate his or her
employment with the Employer for Good Reason as set forth in Section 5.01(b) 

or (d)
and be entitled to the benefits set forth in Section 6.

          (b) If the Executive believes that he or she is entitled to terminate his or her employment
with the Employer for Good Reason, he or she may apply in writing to the

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Company for confirmation of such entitlement prior to the Executive’s actual separation from
employment, by following the claims procedure set forth in Section 9. The submission of
such a request by the Executive shall not constitute “Cause” for the Company to terminate the
Executive’s employment and the Executive shall continue to receive all compensation and benefits he
or she was receiving at the time of such submission throughout the resolution of the matter
pursuant to the procedures set forth in Section 9. If the Executive’s request for a
termination of employment for Good Reason is denied under both the request and appeal procedures
set forth in Sections 9.02 and 9.03, then the parties shall use their best efforts
to resolve the claim within ninety (90) days after the claim is submitted to binding arbitration
pursuant to Section 9.04. Notwithstanding the foregoing provisions of this Section
5.02(b), the Executive’s termination shall not constitute a termination for Good Reason unless
the applicable notice, cure and termination provisions set forth in the definition of Good Reason
above are satisfied.

          5.03 Permanent Disability. In the event of a Permanent Disability of the Executive,
the Executive shall be entitled to no further benefits under this Plan, provided that the Employer
shall have provided the Executive a Notice of Termination and the Executive shall not have returned
to the full-time performance of the Executive’s duties within thirty (30) days of such Notice of
Termination.

          5.04 Cause. The Employer may terminate the employment of the Executive for Cause.
The Executive shall not be deemed to have been terminated for Cause unless and until there shall
have been delivered to the Executive a Notice of Termination and a certified copy of a resolution
of the Board adopted by the affirmative vote of not less than a majority of the entire membership
of the Board (other than the Executive if he or she is a member of the Board at such time) at a
meeting called and held for that purpose and at which the Executive was given an opportunity to be
heard, finding that the Executive was guilty of conduct constituting Cause based on reasonable
evidence, specifying the particulars thereof in detail. For purposes of this Section 5.04,
no act or failure to act on the Executive’s part shall be considered “willful” unless done or
omitted to be done by him or her not in good faith and without reasonable belief that his or her
action or omission was in the best interest of the Company and the Employer.

          5.05 Notice of Termination. Any termination of the Executive’s employment by the
Employer or by the Executive (other than termination based on the Executive’s death) following a
Change in Control shall be communicated by the terminating party in a Notice of Termination to the
other party hereto.

     6. Compensation and Benefits Upon Termination of Employment.

          6.01 Severance Benefits. If the Executive shall be terminated from employment with
the Employer or shall terminate his or her employment with the Employer as described in Section
5.01, then the Executive shall be entitled to receive the following:

          (a) In lieu of any further payments to the Executive except as expressly contemplated
hereunder, the Employer shall pay as severance pay to the Executive an amount equal to two times
(in the case of a Tier 1 Executive) or one times (in the case of a Tier 2 Executive) the sum of the
Executive’s annual base compensation plus his or her target bonus plus

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his or her annualized car allowance, in each case as in effect immediately prior to the Change
in Control or as in effect on the date of the Notice of Termination, whichever is higher. Subject
to Section 6.03, such cash payment shall be payable in a single sum, within ten (10)
business days following the Executive’s Separation from Service.

          (b) Any then-outstanding and unvested stock options granted to the Executive by the Company
shall become 100% vested and may be exercised by the Executive for the longer of (i) ninety
(90) days after the Date of Termination or (ii) the period specified in the plan or agreement
governing such options (subject in each case to earlier termination at the end of the option term
or in connection with a change in control of the Company in accordance with the provisions of such
plan or agreement).

          (c) For a period of twenty-four months (in the case of a Tier 1 Executive) or twelve months
(in the case of a Tier 2 Executive) following the Executive’s Date of Termination (the “payment
period”), the Executive shall be entitled to the continuation of the same or equivalent life,
health, hospitalization, dental and disability insurance coverage and other employee insurance or
welfare benefits (including equivalent coverage for his or her spouse and dependent children) as he
or she was receiving immediately prior to the Change in Control. In the event that the Executive
is ineligible under the terms of such insurance to continue to be so covered, the Employer shall
provide the Executive with a lump sum payment equal to the cost of obtaining such coverage for the
payment period. If the Executive, prior to a Change in Control, was receiving any cash-in-lieu
payments designed to enable the Executive to obtain insurance coverage of his or her choosing, the
Employer shall, in addition to any other benefits to be provided under this Section
6.01(c), provide the Executive with a lump-sum payment equal to the amount of such in-lieu
payments that the Executive would have been entitled to receive over the payment period. To the
extent that the payment of any benefits pursuant to this Section 6.01(c) is taxable to the
Executive, any such payment shall be made to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the related expense was incurred,
provided that any lump-sum payment made to the Executive pursuant to either of the preceding two
sentences shall be made within ten (10) business days following the Executive’s Separation from
Service. The Executive’s right to payment of such benefits is not subject to liquidation or
exchange for another benefit and the amount of such benefits that the Executive receives in one
taxable year shall not affect the amount of such benefits that the Executive receives in any other
taxable year. The benefits to be provided under this Section 6.01(c) shall be reduced to
the extent of the receipt of substantially equivalent coverage by the Executive from any successor
employer.

          (d) All awards under the Company’s Executive Retention Plan adopted in July, 1998 or any
similar plan shall accelerate and be payable within fifteen (15) days after the Executive’s
Separation from Service.

          (e) If any payments received by a Tier 1 Executive pursuant to this Plan will be subject to
the excise tax imposed by Section 4999 of the Code, or any successor or similar provision of the
Code or any comparable provision of state law (the “Excise Tax”), the Employer shall pay to the
Tier 1 Executive additional compensation such that the net amount received by the Tier 1 Executive
after deduction of any Excise Tax (and taking into account any federal, state and local income
taxes payable by the Tier 1 Executive as a result of the receipt of such gross-up

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compensation), shall be equal to the total payments he or she would have received had no such
Excise Tax (or any interest or penalties thereon arising primarily from the acts or omissions of
the Employer) been paid or incurred. The Employer shall pay such additional compensation at the
time when the Employer withholds such Excise Tax from any payments to the Tier 1 Executive. The
calculation of the tax gross-up payment shall be approved by the Company’s independent certified
public accounting firm and the Tier 1 Executive’s designated financial advisor.

          (f) In the event that the amount of payments or other benefits payable to a Tier 2 Executive
under this Plan, together with any payments or benefits payable under any other plan, program,
arrangement or agreement maintained by the Employer or one of its affiliates, would constitute an
‘excess parachute payment’ (within the meaning of Section 280G of the Code), the payments under
this Plan shall be reduced (by the minimum possible amounts) until no amount payable to the Tier 2
Executive under this Plan constitutes an ‘excess parachute payment’ (within the meaning of
Section 280G of the Code); provided, however, that no such reduction shall be made if the net
after-tax payment (after taking into account Federal, state, local or other income and excise
taxes) to which the Tier 2 Executive would otherwise be entitled without such reduction would be
greater than the net after-tax payment (after taking into account Federal, state, local or other
income and excise taxes) to the Tier 2 Executive resulting from the receipt of such payments with
such reduction. If, as a result of subsequent events or conditions (including a subsequent payment
or absence of a subsequent payment under this Plan or other plans, programs, arrangements or
agreements maintained by the Employer or one of its affiliates), it is determined that payments
hereunder have been reduced by more than the minimum amount required under this
Section 6.01(f), then an additional payment shall be promptly made to the Tier 2 Executive
in an amount equal to the excess reduction. All determinations required to be made under this
Section 6.01(f), including whether a payment would result in an ‘excess parachute payment’
and the assumptions to be utilized in arriving at such determination, shall be made and approved by
the Company’s independent certified public accounting firm and the Tier 2 Executive’s designated
financial advisor.

          6.02 Accrued Benefits. Upon termination of the employment of Executive for any
reason, any accumulated but unused vacation shall be paid through the Date of Termination. Upon
termination of the employment of Executive as set forth in Section 5.01, any accrued but
unpaid bonus shall be paid through the Date of Termination. Unless otherwise specifically provided
in this Plan, any payments or benefits payable to the Executive hereunder, including without
limitation any bonus, in respect of any calendar year during which the Executive is employed by the
Employer for less than the entire such year shall be prorated in accordance with the number of days
in such calendar year during which he or she is so employed.

          6.03 Specified Employees. The provisions of this Section 6.03 shall apply if
any severance payments hereunder constitute “deferred compensation” (within the meaning of Section
409A of the Code) payable upon the Executive’s Separation from Service and, in such event, such
provisions shall apply only to the extent required to avoid the imputation of any tax, penalty or
interest pursuant to Section 409A of the Code. It is the Company’s intent that severance payments
hereunder should not constitute “deferred compensation” payable upon a Separation from Service
(because such payments should constitute a “short-term deferral” within the meaning of Code Section
409A or otherwise) based on the guidance available as of the date

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hereof and, accordingly, should not be subject to the delayed-payment provisions set forth in
this Section 6.03. Notwithstanding Section 6.01(a) or any other provision of this
Plan to the contrary, if the Executive is a “specified employee” within the meaning of Treasury
Regulation Section 1.409A-1(i) as of the date of the Executive’s Separation from Service, the
Executive shall not be entitled to any severance payments hereunder until the earlier of (i) the
date which is six (6) months after the Executive’s Separation from Service for any reason other
than death, or (ii) the date of the Executive’s death. Any amounts otherwise payable to the
Executive upon or in the six (6) month period following the Executive’s Separation from Service
that are not so paid by reason of this Section 6.03 shall be paid (without interest) as
soon as practicable (and in all events within thirty (30) days) after the date that is six (6)
months after the Executive’s Separation from Service (or, if earlier, as soon as practicable, and
in all events within thirty (30) days, after the date of the Executive’s death).

     7. No Mitigation. The Executive shall not be required to mitigate the amount of any
payments provided for by this Plan by seeking employment or otherwise, nor shall the amount of any
cash payments or benefits provided under this Plan be reduced by any compensation or benefits
earned by the Executive after his or her Date of Termination (except as provided in the last
sentence of Section 6.01(d) above). Notwithstanding the foregoing, if the Executive is
entitled, by operation of any applicable law, to unemployment compensation benefits or benefits
under the Worker Adjustment and Retraining Act of 1988 (known as the “WARN” Act) in connection with
the termination of his or her employment in addition to amounts required to be paid to him or her
under this Plan, then to the extent permitted by applicable statutory law governing severance
payments or notice of termination of employment, the Company shall be entitled to offset the
amounts payable hereunder by the amounts of any such statutorily mandated payments.

     8. Limitation on Rights.

          8.01 No Employment Contract. This Plan shall not be deemed to create a contract of
employment between the Employer and the Executive and shall create no right in the Executive to
continue in the Employer’s employment for any specific period of time, or to create any other
rights in the Executive or obligations on the part of the Company or its subsidiaries, except as
set forth herein. Except as set forth herein, this Plan shall not restrict the right of the
Employer to terminate the employment of Executive, or restrict the right of the Executive to
terminate his or her employment.

          8.02 No Other Exclusions. This Plan shall not be construed to exclude the Executive
from participation in any other compensation or benefit programs in which he or she is specifically
eligible to participate either prior to or following the Effective Date of this Plan, or any such
programs that generally are available to other executive personnel of the Company, nor shall it
affect the kind and amount of other compensation to which the Executive is entitled.

     9. Administrator and Claims Procedure.

          9.01 Administrator. Except as set forth herein, the administrator (the
“Administrator”) for purposes of this Plan shall be the Company. The Company shall have the right
to designate one or more of the Company’s or the Employer’s employees as the

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Administrator at any time. The Company shall give the Executive written notice of any change
in the Administrator, or in the address or telephone number of the same.

          9.02 Claims Procedure. The Executive, or other person claiming through the Executive,
must file a written claim for benefits with the Administrator as a prerequisite to the payment of
benefits under this Plan. The Administrator shall make all determinations as to the right of any
person to receive benefits under Sections 9.02 and 9.03. The decision by the
Administrator of a claim for benefits by the Executive, his or her heirs or personal representative
(the “claimant”) shall be stated in writing by the Administrator and delivered or mailed to the
claimant within thirty (30) days after receipt of the claim, unless special circumstances require
an extension of time for processing the claim. If such an extension is required, written notice of
the extension shall be furnished to the claimant prior to the termination of the initial thirty-day
period. In no event shall such extension exceed a period of thirty (30) days from the end of the
initial period. Any notice of denial shall set forth the specific reasons for the denial, specific
reference to pertinent provisions of this Plan upon which the denial is based, a description of any
additional material or information necessary for the claimant to perfect his or her claim, with an
explanation of why such material or information is necessary, and a description of claim review
procedures, written to the best of the Administrator’s ability in a manner that may be understood
without legal or actuarial counsel.

          9.03 Appeals. A claimant whose claim for benefits has been wholly or partially denied
by the Administrator may request, within sixty (60) days following the date of such denial, in a
writing addressed to the Administrator, a review of such denial. The claimant shall be entitled to
submit written comments, documents, records and other information he or she shall consider relevant
to a determination of his or her claim, and he or she may include a request for a hearing in person
before the Administrator. Prior to submitting his or her request, the claimant shall be entitled
to review such documents, records, and other information as the Administrator shall reasonably
agree are pertinent to his or her claim. The claimant may, at all stages of the review, be
represented by counsel, legal or otherwise, of his or her choice, provided that the fees and
expenses of such counsel shall be borne by the claimant, unless the claimant is successful, in
which case, such costs shall be borne by the Company. The review of the claim shall take into
account all information submitted by claimant relating to the claim, without regard to whether such
information was submitted in the initial benefit determination. All requests for review shall be
promptly resolved. The Administrator’s decision with respect to any such review shall be set forth
in writing and shall be mailed to the claimant not later than sixty (60) days following receipt by
the Administrator of the claimant’s request unless special circumstances, such as the need to hold
a hearing, require an extension of time for processing, in which case the Administrator’s decision
shall be so mailed not later than one hundred and twenty (120) days after receipt of the claimant’s
request. The time and place of any hearing shall be as mutually agreed by the parties. If the
claimant is dissatisfied with the Administrator’s decision on review, the claimant may then
either, at his or her option, invoke the arbitration procedures described in Section 9.04
or pursue a remedy in a judicial forum. No legal action may be commenced prior to the completion
of the claims and appeals procedures described in the foregoing provisions of Section 9.02
and 9.03. Notwithstanding the foregoing, no legal action may be commenced after ninety
(90) days after the date upon which the Administrator’s written decision on appeal was sent to
claimant.

11

 

          9.04 Arbitration. A claimant who has followed the procedures in Sections 9.02 and
9.03, but who has not obtained full relief on his or her claim for benefits, may, within sixty (60)
days following his or her receipt of the Administrator’s written decision on review pursuant to
Section 9.03, apply in writing to the Administrator for expedited and binding arbitration of his or
her claim before an arbitrator in Orange County, California in accordance with the commercial
arbitration rules of the American Arbitration Association, as then in effect, or pursuant to such
other form of alternative dispute resolution as the parties may agree (collectively, the
“arbitration”). Subject to Section 10, the Company or the Employer shall pay filing fees
and other costs required to initiate the arbitration. The arbitrator’s sole authority shall be to
interpret and apply the provisions of this Plan; and except as set forth herein he or she shall not
change, add to, or subtract from, any of its provisions. The arbitrator shall have the power to
compel attendance of witnesses at the hearing. Any court having jurisdiction may enter a judgment
based upon such arbitration. The arbitrator shall be appointed by mutual agreement of the Company
and the claimant; provided that if the Company and the claimant cannot agree, the arbitrator shall
be appointed pursuant to the applicable commercial arbitration rules. The arbitrator shall be a
professional person with a reputation in the community for expertise in employee benefit matters
and who is unrelated to the claimant, the Company or its subsidiaries or any employees of the
Company or its subsidiaries. All decisions of the arbitrator shall be final and binding on the
claimant and the Company.

     10. Legal Fees and Expenses. If any dispute arises between the parties with respect
to the interpretation or performance of this Plan, the prevailing party in any arbitration or
proceeding shall be entitled to recover from the other party its attorneys fees, arbitration or
court costs and other expenses incurred in connection with any such proceeding. Amounts, if any,
paid to the Executive under this Section 10 shall be in addition to all other amounts due
to the Executive pursuant to this Plan.

     11. ERISA. This Plan is an unfunded compensation arrangement for a member of a select
group of the Company’s management or that of its subsidiaries and any exemptions under the Employee
Retirement Income Security Act of 1974, as amended, as applicable to such an arrangement shall be
applicable to this Plan.

     12. Taxes. The Executive shall be solely responsible for his or her own tax liability
with respect to participation in this Plan. The Company may withhold (or cause there to be
withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this
Plan such federal, state and local income, employment, or other taxes as may be required to be
withheld pursuant to any applicable law or regulation. Notwithstanding anything else contained
herein to the contrary, nothing in this Plan is intended to constitute, nor does it constitute, tax
advice, and in all cases, the Executive should obtain and rely solely on the tax advice provided by
the Executive’s own independent tax advisors (and not this Plan, the Company, any of the Company’s
affiliates, or any officer, employee or agent of the Company or any of its affiliates).

     13. Miscellaneous.

12

 

          13.01 Administration. This Plan may be administered by the Board or the Committee.
When this Plan refers to any action by the Board, the Committee may take such action with the same
effect as if it had been taken by the Board.

          13.02 Amendments. This Plan may be changed, amended or modified by resolution of the
Board or the Committee.

          13.03 Assignment and Binding Effect.

          (a) Neither this Plan nor the rights or obligations hereunder shall be assignable by the
Executive or the Company except that this Plan shall be assignable to, binding upon and inure to
the benefit of any successor of the Company, and any successor shall be deemed substituted for the
Company upon the terms and subject to the conditions hereof’.

          (b) The Company will require any successor (whether by purchase of assets, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform all of the obligations of the Company under this
Plan (including the obligation to cause any subsequent successor to also assume the obligations of
this Plan) unless such assumption occurs by operation of law. Nothing in this
Section 13.03 is intended, however, to require that a person or group referred to in
Section 2.03(a) as being the beneficial owner of shares of stock of the Company must assume
the obligations under this Plan as a result of such stock ownership.

          13.04 No Waiver. No waiver of any term, provision or condition of this Plan, whether
by conduct or otherwise, in any one or more instances shall be deemed or be construed as a further
or continuing waiver of any such term, provision or condition or as a waiver of any other term,
provision or condition of this Plan.

          13.05 Rules of Construction.

          (a) This Plan has been executed in, and shall be governed by and construed in accordance with
the laws of, the State of California. Captions contained in this Plan are for convenience of
reference only and shall not be considered or referred to in resolving questions of interpretation
with respect to this Plan.

          (b) If any provision of this Plan is held to be illegal, invalid or unenforceable under any
present or future law, and if the rights or obligations of any party hereto under this Plan will
not be materially and adversely affected thereby, (i) such provision will be fully severable, (ii)
this Plan will be construed and enforced as if such illegal, invalid or unenforceable provision had
never comprised a part hereof, (iii) the remaining provisions of this Plan will remain in full
force and effect and will not be affected by the illegal, invalid or unenforceable provision or by
its severance herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision, there
will be added automatically as a part of this Plan a legal, valid and enforceable provision as
similar in terms to such illegal, invalid or unenforceable provision as may be possible.

          13.06 Notices. Any notice required or permitted by this Plan shall be in writing,
delivered by hand, or sent by registered or certified mail, return receipt requested, or by

13

 

recognized courier service (regularly providing proof of delivery), addressed to the Board and
the Company and where applicable, the Administrator, at the Company’s then principal office, or to
the Executive at the address set forth in the records of the Employer, as the case may be, or to
such other address or addresses the Company or the Executive may from time to time specify in
writing. Notices shall be deemed given when received.

          13.07 Section 409A. This Plan is intended to comply with Section 409A of the Code
(including the Treasury regulations and other published guidance relating thereto) so as not to
subject any Executive to payment of any interest or additional tax imposed under Code Section 409A.
The provisions of this Plan shall be construed and interpreted to avoid the imputation of any such
additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent
reasonably possible) the intended benefit payable to the Executive.

###

Western Digital Corporation Amended and Restated Change of Control Severance Plan

As amended November 6, 2008

14exv10w15

Exhibit 10.15

WESTERN DIGITAL CORPORATION

EXECUTIVE SEVERANCE PLAN

1. PURPOSE

     The purpose of the Plan is to provide severance benefits to certain Executives whose
employment with the Company or a Subsidiary terminates under certain circumstances as described
more fully herein.

2. EFFECTIVE DATE

     All of the policies and practices of the Company and its Subsidiaries regarding severance
benefits or similar payments upon employment termination with respect to Executives in the United
States, other than written employment, separation or equity award agreements with the Company or a
Subsidiary that provide severance benefits or the Company’s Amended and Restated Change of Control
Severance Plan, are hereby superseded by the Plan, which shall be known as the Western Digital
Corporation Executive Severance Plan, effective as of the Effective Date. The Plan was initially
approved by the Board on February 16, 2006 and subsequently amended and restated on 

November 6,
2008.

3. DEFINITIONS

     “Administrator” means the Committee or any delegate of such committee acting within the
authority delegated to it pursuant to Section 9.1.

     “Base Pay” means the employee’s wages earned on a monthly basis, determined as of the
employment termination date, excluding bonuses and commissions.

     “Board” means the Board of Directors of the Company.

     “Cause” means the occurrence or existence of any of the following with respect to an
Executive:

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

     (b) whether prior or subsequent to the Effective Date, the Executive’s willful engaging
in dishonest or fraudulent actions or omissions;

     (c) failure or refusal to perform his or her duties as reasonably required by the
Company and/or a Subsidiary that employs the Executive;

     (d) negligence, insubordination, violation by the Executive of any duty (of loyalty or
otherwise) owed to the Company and/or a Subsidiary, or any other misconduct on the part of
the Executive;

 

 

     (e) 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 Executive’s service
as an officer or employee of the Company and/or a Subsidiary;

     (f) sexual harassment by the Executive that has been reasonably substantiated and
investigated;

     (g) involvement in activities representing conflicts of interest with the Company
and/or a Subsidiary;

     (h) improper disclosure of confidential information;

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

     (j) falsifying or misrepresenting information on the records of the Company and/or a
Subsidiary;

     (k) the Executive’s physical destruction or theft of substantial property or assets of
the Company and/or a Subsidiary;

     (l) breach of any policy of, or agreement with, the Company and/or a Subsidiary
applicable to the Executive or to which the Executive is otherwise bound.

     Review of any determination that a termination is for Cause shall be by the Administrator, in
its sole and exclusive judgment and discretion, in accordance with the provisions of Section 8
herein.

     “Code” means the United States Internal Revenue Code of 1986, as amended.

     “Committee” means the Compensation Committee of the Board of Directors of the Company.

     “Company” means Western Digital Corporation, a Delaware corporation.

     “Effective Date” means February 16, 2006.

     “Eligible Employee” means any person classified by the Company or a Subsidiary, in its sole
discretion, as a non-temporary, full-time or part-time, salaried or hourly employee (specifically
excluding any individual who is not classified by the Company or a Subsidiary as a common law
employee, such as an independent contractor or an individual working through a third-party
provider, such as Kelly Services, without regard to the characterization or recharacterization of
such individual’s status by any court or governmental agency), who is paid from the United States
payroll of the Company or a Subsidiary; provided, however, that in no event shall any employee who
as of the Effective Date is a party to a written employment agreement with the Company or a
Subsidiary (other than an agreement providing for at-will

 

 

employment by the Company or a Subsidiary and for no specified term) be an Eligible Employee.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Executive” means an Eligible Employee who has been designated by the Board or the Committee
as a Tier I Executive, Tier II Executive or Tier III Executive for purposes of participation in the
Plan.

     “Participant” means an Executive who is entitled, based on the provisions hereof, to severance
benefits under Section 6.

     “Plan” means this Western Digital Corporation Executive Severance Plan, as set forth in this
instrument as it may be amended from time to time.

     “Separation from Service,” with respect to an Executive, shall mean that the Executive dies,
retires, or otherwise has a termination of employment with the Company that constitutes a
“separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without
regard to the optional alternative definitions available thereunder.

     “Subsidiary” means any corporation or other entity a majority of whose outstanding voting
stock or voting power is beneficially owned directly or indirectly by the Company.

4. TERM

     The Plan shall commence on the Effective Date and shall continue in effect through December
31, 2008; provided, however, that on December 31, 2006 and each anniversary of such date
thereafter, the term of the Plan shall extend automatically for one additional year, unless the
Committee (or the Board) causes the Company to deliver written notice prior to the end of such term
(or extended term, as applicable) to each Executive then covered by the Plan that the term of the
Plan will not be extended (or further extended, as the case may be), and if such notice is timely
given the Plan shall terminate at the end of the term then in progress.

5. PARTICIPATION

     Upon approval of the Plan, the Committee shall designate the Executives initially covered by
the Plan. The Committee may, from time to time, designate additional Eligible Employees as
Executives for purposes of participation in the Plan; provided that the Committee shall limit the
group of all persons eligible to participate in the Plan to a “select group of management or highly
compensated employees” within the meaning of 29 C.F.R. 2520-104-23 or any similar successor
provision. The Committee may, in its sole discretion, remove an Executive from participation in
the Plan and from time to time approve modifications to the Tier to which one or more Executives
have been designated.

6. SEVERANCE BENEFITS

     6.1 Severance Benefits to Executives. An Executive whose employment with the Company
or a Subsidiary is terminated by the Company or such Subsidiary, as applicable,

 

 

without Cause shall become, subject to the conditions set forth in Section 7, a Participant
under the Plan and entitled to the benefits set forth in this Section 6. The severance benefits
provided under Sections 6.2, 6.3, 6.5 and 6.6 of the Plan shall be the obligations of, and shall be
provided to the Executive by, the entity (the Company or a Subsidiary, as applicable) that employs
the Executive immediately prior to the Executive’s termination of employment. For avoidance of
doubt, in no event shall an Executive become entitled to or receive any payment hereunder if the
Executive’s employment with the Company or a Subsidiary is terminated voluntarily by the Executive
(for any reason), by the Company or a Subsidiary, as applicable, for Cause, or on account of the
Executive’s death or disability (as defined in Section 22(e)(3) of the Code). Notwithstanding
anything else contained herein to the contrary, an Executive shall not be deemed to have terminated
employment if his or her employment by the Company or a Subsidiary terminates but he or she
continues as an employee of the Company or another Subsidiary.

     6.2 Cash Severance Payment. A Participant shall receive a severance payment equal to
the Participant’s monthly rate of Base Pay multiplied by the number of months set forth below:

     (a) Tier I Executive: 24 months

     (b) Tier II Executive: 18 months

     (c) Tier III Executive: 12 months

     Subject to Section 6.7, the severance payment shall be paid in one lump-sum cash payment in
the month following the month in which the Participant’s Separation from Service occurs.

     6.3 Bonus. A Participant shall receive a payment equal to a pro-rata portion of the
Participant’s bonus opportunity under the Company’s (or a Subsidiary’s) bonus program in which the
Participant participates for the bonus cycle in which the Participant’s date of termination occurs
(with such pro-rata portion based on the number of days in the applicable bonus cycle during which
the Participant was employed (not to exceed six (6) months) and assuming 100% of the performance
target(s) subject to the bonus award are met regardless of actual funding by the Company or a
Subsidiary). The payment shall be paid in one lump-sum cash payment in the month following the
month in which the Participant’s Separation from Service occurs.

     6.4 Equity Awards. Notwithstanding anything in the applicable stock incentive plan
and/or award agreement to the contrary, upon a Participant’s termination of employment, the
Participant’s then outstanding stock options and restricted stock or stock unit awards that are
subject to time-based vesting will vest and become exercisable or payable, as applicable, as if the
Participant had remained employed with the Company or a Subsidiary for an additional six (6)
months. For avoidance of doubt, the foregoing is not intended to apply to any equity awards held
by the Participant that are subject to performance-based vesting (which shall continue to be
governed by the plan and/or award agreement applicable to such awards) or to supersede any more
favorable provision in any stock incentive plan and/or award agreement regarding

 

 

accelerated vesting in the event of the Participant’s termination of employment.
Notwithstanding anything to the contrary herein, the post-termination exercisability of the
Participant’s then outstanding stock options shall continue to be governed by the stock incentive
plan and stock option agreement applicable to such options.

     6.5 Outplacement Services. A Participant shall be eligible for outplacement services,
provided by a vendor chosen by the Company or applicable Subsidiary and at the Company’s or
applicable Subsidiary’s expense, after the Participant’s termination of employment for up to the
number of months set forth below:

     (a) Tier I Executive: 12 months

     (b) Tier II Executives: 12 months

     (c) Tier III Executive: 12 months

     6.6 Continued Health Care Coverage. If the Participant elects COBRA continuation
coverage within the applicable election period, the Company or applicable Subsidiary shall make the
applicable COBRA premium payments following the expiration of the Participant’s company-provided
medical, dental, and/or vision coverage existing as of the Participant’s termination date for the
number of months set forth below:

     (a) Tier I Executive: 18 months

     (b) Tier II Executives: 12 months

     (c) Tier III Executive: 12 months

     Notwithstanding anything in the Plan to the contrary, there shall be no obligation to make
such COBRA premium payments on behalf of any Participant if the Participant otherwise becomes
eligible for equivalent coverage under another employer’s plan. To the extent that the payment or
reimbursement of any benefits pursuant to Section 6.5 or this Section 6.6 is taxable to the
Participant, any such payment or reimbursement shall be made to the Participant on or before the
last day of the Participant’s taxable year following the taxable year in which the related expense
was incurred. The Participant’s right to payment of such benefit is not subject to liquidation or
exchange for another benefit and the amount of such benefits that the Participant receives in one
taxable year shall not affect the amount of such benefits that the Participant receives in any
other taxable year.

     6.7 Specified Employees. The provisions of this Section 6.7 shall apply if any
severance payments hereunder constitute “deferred compensation” (within the meaning of Section 409A
of the Code) payable upon the Participant’s Separation from Service and, in such event, such
provisions shall apply only to the extent required to avoid the imputation of any tax, penalty or
interest pursuant to Section 409A of the Code. It is the Company’s intent that severance payments
hereunder should not constitute “deferred compensation” payable upon a Separation from Service
(because such payments should constitute a “short-term deferral” within the meaning of Code Section
409A or otherwise) based on the guidance available as of the date

 

 

hereof and, accordingly, should not be subject to the delayed-payment provisions set forth in
this Section 6.7. Notwithstanding any other provision of the Plan to the contrary, if the
Participant is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i)
as of the date of the Participant’s Separation from Service, the Participant shall not be entitled
to any severance payments hereunder until the earlier of (i) the date which is six (6) months after
the Participant’s Separation from Service for any reason other than death, or (ii) the date of the
Participant’s death. Any amounts otherwise payable to the Participant upon or in the six (6) month
period following the Participant’s Separation from Service that are not so paid by reason of this
Section 6.7 shall be paid (without interest) as soon as practicable (and in all events within
thirty (30) days) after the date that is six (6) months after the Participant’s Separation from
Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after
the date of the Participant’s death).

7. CONDITIONS TO SEVERANCE BENEFITS

     7.1 Release. Notwithstanding anything to the contrary contained herein, the Company’s
or applicable Subsidiary’s obligation to pay benefits to a Participant under Section 6 is subject
to the condition precedent that the Participant execute a valid and effective release of any and
all claims in a form and manner acceptable to the Company, and such release is received by the
Company no earlier than, and no later than fourteen (14) days (or such other period as required by
law) after, the Participant’s termination date and is not revoked by the Participant (pursuant to
any revocation rights afforded by applicable law) or otherwise rendered unenforceable by the
Participant. Notwithstanding anything else contained herein to the contrary, the Company or
applicable Subsidiary will have no obligation to pay any benefit to the Participant under the Plan
unless and until that Participant’s release (in such form) has been fully executed by the
Participant (and the Participant’s spouse, to the extent required by the Company), has been
received by the Company, and has become effective and irrevocable by the Participant.

     7.2 Departure and Entitlement Procedure. As a condition to becoming a Participant and
receiving the severance benefits described in Section 6, the Executive must return and deliver to
the Administrator or his or her designee all Company and Subsidiary property within seven (7) days
of the Executive’s termination date. In addition, except as otherwise provided by the Company, if
an Executive resigns prior to his/her scheduled termination date, then he/she shall not be entitled
to any severance payments or any other severance benefits provided herein.

     7.3 Offsets. Except as expressly provided below, a Participant shall not be required
to mitigate the amount of any payments provided for by the Plan by seeking employment or otherwise,
nor shall the amount of any cash payments or benefits provided under the Plan be reduced by any
compensation or benefits earned by the Participant after his or her termination of employment with
the Company or applicable Subsidiary. All severance payments under the Plan shall be subject to
legal deductions, and the Company and/or applicable Subsidiary reserves the right to offset the
benefits payable under the Plan by any advanced monies the Participant owes the Company or a
Subsidiary. The benefits and amounts payable under the Plan shall be reduced (but not below zero)
by any severance pay or benefits to which a Participant is or becomes entitled under any other
severance pay plan, policy, agreement or arrangement. In addition, in

 

 

no event shall a Participant become entitled to a duplication of benefits under the Plan and
any other severance plan or program of the Company or a Subsidiary. Without limiting the
generality of the foregoing, in no event shall a Participant receive benefits under the Plan in
connection with his or her termination of employment if such Participant is entitled to benefits
under the Company’s Amended and Restated Change of Control Severance Plan in connection with such
termination of employment. Notwithstanding any provision of the Plan to the contrary, to the
extent that any Participant is entitled to any period of paid notice under Federal or state law
including, but not limited to, the Worker Adjustment Retraining Notification Act, 29 U.S.C.
Sections 2101 et seq., the benefits and amounts payable under the Plan shall be
reduced (but not below zero) by the Base Pay received by the Participant during the period of such
paid notice.

     7.4 Limitation On Employee Rights. The Plan shall not give any employee the right to
be retained in the service of the Company or to interfere with or restrict the right of the Company
or applicable Subsidiary to discharge any employee at any time, with or without Cause.

8. RESOLUTION OF DISPUTES

     8.1 Claim. If a Participant or any other individual (herein referred to as a
“Claimant”) believes that benefits under the Plan are being wrongfully denied, that the Plan is not
being operated properly, that fiduciaries of the Plan have breached their duties, or that the
Claimant’s legal rights are being violated with respect to the Plan, the Claimant must file a
formal claim with the Administrator. Any such claim for benefits must be filed in writing within
90 days of the date upon which the Participant first knew or should have known the facts upon which
the claim is based.

     8.2 Claim Decision. If any claim for benefits under the Plan is denied, in whole or
in part, the Claimant shall be so notified by the Administrator within thirty (30) calendar days of
the date such person’s claim is delivered to the Administrator. At the same time, the
Administrator shall notify the Claimant of his or her right to a review by the Administrator and
shall set forth, in a manner calculated to be understood by the Claimant, specific reasons for such
decision, specific references to pertinent Plan provisions on which the decision is based, a
description of any additional material or information necessary for the Claimant to perfect his or
her request for review, an explanation of why such material or information is necessary, and an
explanation of the Plan’s review procedure.

     8.3 Request for Review. Any Claimant or duly authorized representative may appeal
from such decision by submitting to the Administrator within sixty (60) calendar days after the
date of such notice of its decision a written statement:

     (a) requesting a review of the claim for benefits by the Administrator;

     (b) setting forth all of the grounds upon which the request for review is based and any
facts in support thereof; and

 

 

     (c) setting forth any issues or comments which the Claimant deems relevant to the
claim.

     The Administrator shall act upon such appeal within sixty (60) calendar days after the latter
of receipt of the Claimant’s request for review by it or receipt of all additional materials
reasonably requested by it from such Claimant.

     8.4 Review of Decision. The Administrator shall make a full and fair review of an
appeal and all written materials submitted by the Claimant in connection therewith and may require
the Claimant to submit, within ten (10) calendar days of written notice by the Administrator, such
additional facts, documents or other evidence as the Administrator, in its sole discretion, deems
necessary or advisable in making such a review. On the basis of its review, the Administrator
shall make an independent determination of the Claimant’s eligibility for an allowance and the
amount of such allowance, if any, under this Plan. The decision of the Administrator on any appeal
shall be final and conclusive upon all persons if supported by substantial evidence in the record.

     8.5 Denial on Review. If on review of a decision, the Administrator denies a claim in
whole or in part, it shall give written notice of its decision to the Claimant setting forth, in a
manner calculated to be understood by the Claimant, the specific reasons for such denial and
specific references to the pertinent Plan provisions on which its decision was based. If a
Claimant believes that the Administrator’s determination on appeal is incorrect, the Claimant or
duly authorized representative may invoke the arbitration procedures described in Section 8.6 or
file suit related to such determination; provided that any legal action must be taken by the
Claimant within ninety (90) days after the date upon which the Administrator’s written decision on
review was sent to the Claimant.

     8.6 Arbitration. A Claimant who has followed the procedures in Sections 8.1 through
8.5, but who has not obtained full relief on his or her claim for benefits, may, within ninety (90)
days following his or her receipt of the Administrator’s written decision on review pursuant to
Section 8.5, apply in writing to the Administrator for expedited and binding arbitration of his or
her claim in Orange County, California, before a sole arbitrator selected from Judicial Arbitration
and Mediation Services, Inc., Orange County, 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. Pursuant to California Code of Civil Procedure § 1281.8, provisional injunctive relief
may, but need not, be sought by the Company, a Subsidiary or an Executive 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. Any

 

 

rights to trial by jury in any action, proceeding or counterclaim brought by any of the
Company, a Subsidiary or an Executive in connection with any matter whatsoever arising out of or in
any way connected with the Plan are hereby waived. The Company or applicable Subsidiary shall be
responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s
fee. In any proceeding to enforce the terms of the Plan, the prevailing party shall be entitled to
its or his reasonable attorneys’ fees and costs (other than forum costs associated with the
arbitration) incurred by it or him in connection with resolution of the dispute in addition to any
other relief granted.

     8.7 Legal Fees and Expenses. If any dispute arises between the parties with respect
to the interpretation or performance of the Plan, the prevailing party in any arbitration or
proceeding shall be entitled to recover from the other party its attorneys’ fees, arbitration or
court costs and other expenses incurred in connection with any such proceeding. Amounts, if any,
paid to the Executive under this Section 8.7 shall be in addition to all other amounts due to the
Executive pursuant to the Plan.

9. ADMINISTRATION

     9.1 Administrator. Except as provided herein, the Plan shall be administered and
operated by the Administrator. The Administrator is empowered to construe and interpret the
provisions of the Plan and to decide all questions of eligibility for benefits under the Plan and
shall make such determinations in its sole and absolute discretion. The Administrator may at any
time delegate to any other named person or body, or reassume therefrom, any of its responsibilities
or administrative duties with respect to the Plan.

     9.2 Experts; Rules. The Administrator may contract with one or more persons to render
advice with regard to any responsibility it has under the Plan. Subject to the limitations of the
Plan, the Administrator shall from time to time establish such rules for the administration of the
Plan as it may deem desirable.

     9.3 Indemnity. The Company shall, to the extent permitted by law, by the purchase of
insurance or otherwise, indemnify and hold harmless the Administrator and each other fiduciary with
respect to the Plan for liabilities or expenses they and each of them incur in carrying out their
respective duties under the Plan, other than for any liabilities or expenses arising out of such
fiduciary’s gross negligence or willful misconduct.

10. AMENDMENT

     The Committee (or the Board) reserves the right to amend, suspend and/or terminate the Plan at
any time in its sole discretion. No amendment, suspension or termination shall diminish benefits
to which a Participant is currently entitled under the Plan. Any modification or other amendment
of the Plan shall be in writing, signed by either the Company’s Chief Executive Officer or Vice
President, Human Resources.

 

 

11. TAXES

     Each Participant shall be solely responsible for his or her own tax liability with respect to
participation in this Plan. The Company may withhold (or cause there to be withheld, as the case
may be) from any amounts otherwise due or payable under or pursuant to this Plan such federal,
state and local income, employment, or other taxes as may be required to be withheld pursuant to
any applicable law or regulation. Notwithstanding anything else contained herein to the contrary,
nothing in this Plan is intended to constitute, nor does it constitute, tax advice, and in all
cases, each Participant should obtain and rely solely on the tax advice provided by the
Participant’s own independent tax advisors (and not this Plan, the Company, any of the Company’s
affiliates, or any officer, employee or agent of the Company or any of its affiliates)..

12. GENERAL

     12.1 Assignment by Participants. None of the benefits, payments, proceeds or claims
of any Executive or Participant shall be subject to any claim of any creditor and, in particular,
the same shall not be subject to attachment or garnishment or other legal process by any creditor,
nor shall any such Executive have any right to alienate, anticipate, commute, pledge, encumber or
assign any of the benefits or payments or proceeds that he or she may expect to receive,
contingently or otherwise, under the Plan. Notwithstanding the foregoing, benefits that are in pay
status may be subject to a court order of garnishment or wage assignment, or similar order, or a
tax levy. The Plan shall inure to the benefit of and be enforceable by each Participant’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and
legatees. If a Participant dies while any amount would still be payable to him or her hereunder
had he or she continued to live, all such amounts, unless otherwise provided herein, shall be paid
to the Participant’s beneficiary in accordance with the terms of the Plan.

     12.2 Binding Effect. The Company or applicable Subsidiary will require any successor
(whether by purchase of assets, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company or applicable Subsidiary to expressly assume and agree to
perform all of the obligations of the Company or applicable Subsidiary under the Plan (including
the obligation to cause any subsequent successor to also assume the obligations of the Plan) unless
such assumption occurs by operation of law. For avoidance of doubt, in the event that a successor
of a Subsidiary (whether by purchase of assets, merger, consolidation or otherwise) assumes the
Subsidiary’s obligations under the Plan, the Company will have no obligations under the Plan with
respect to the Executives employed by such Subsidiary.

     12.3 No Waiver. No waiver of any term, provision or condition of the Plan, whether by
conduct or otherwise, in any one or more instances shall be deemed or be construed as a further or
continuing waiver of any such term, provision or condition or as a waiver of any other term,
provision or condition of the Plan.

     12.4 Expenses; Unsecured General Creditor. The benefits and costs of the Plan shall
be paid by the Company and/or a Subsidiary out of its general assets. The status of a claim
against the Company or a Subsidiary with respect to the benefits provided hereunder shall be

 

 

same as the status of a claim against the Company or applicable Subsidiary by any general or
unsecured creditor.

     12.5 ERISA. The Plan is an unfunded compensation arrangement for a select group of
management or highly compensated employees of the Company or a Subsidiary and any exemptions under
ERISA applicable to such an arrangement shall be applicable to the Plan.

     12.6 Section 409A. The Plan is intended to comply with Section 409A of the Code
(including the Treasury regulations and other published guidance relating thereto) so as not to
subject any Participant to payment of any interest or additional tax imposed under Code Section
409A. The provisions of the Plan shall be construed and interpreted to avoid the imputation of any
such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest
extent reasonably possible) the intended benefit payable to the Participant.

     12.7 WARN Act. Benefits payable under the Plan are intended to satisfy, where
applicable, any Company obligations under the Federal Worker Adjustment and Retraining Notification
Act and any similar obligations that the Company or its Subsidiaries may have under any successor
or other severance pay statute.

     12.8 Construction. The masculine pronoun shall include the feminine pronoun and the
feminine pronoun shall include the masculine pronoun and the singular pronoun shall include the
plural pronoun and the plural pronoun shall include the singular pronoun, unless the context
clearly indicates otherwise.

     12.9 Governing Law. The Plan shall be construed according to the laws of the State of
California, except to the extent such laws are preempted by federal law.

     12.10 Severability. If any provision of the Plan is held to be illegal, invalid or
unenforceable under any present or future law, and if the rights or obligations of any party hereto
under the Plan will not be materially and adversely affected hereby, (i) such provision will be
fully severable, (ii) the Plan will be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of the
Plan will remain in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom and (iv) in lieu of such illegal, invalid or
unenforceable provision, there will be added automatically as a part of the Plan a legal, valid and
enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as
may be possible.

     12.11 Notices. Any notice required or permitted by the Plan shall be in writing,
delivered by hand, or sent by registered or certified mail, return receipt requested, or by
recognized courier service (regularly providing proof of delivery), addressed as follows:

     (a) if to the Company or, where applicable, the Administrator:

Western Digital Corporation

20511 Lake Forest Drive

Lake Forest, California 92630

 

 

Attention: Vice President, Human Resources

With a copy to:

Western Digital Corporation

20511 Lake Forest Drive

Lake Forest, California 92630

Attention: General Counsel

          (b) if to the Executive or Participant, at the address set forth on the records of the Company
or applicable Subsidiary, as the case may be, or to such other address or addresses most recently
communicated to the Company or applicable Subsidiary by the Executive or Participant.

          Each such notice shall be effective (i) if given by mail, three days after being deposited in
the mails or (ii) if given personally or by other means when actually delivered at such address.

 

 

     IN WITNESS WHEREOF, this instrument, evidencing the terms of the Western Digital Corporation
Executive Severance Plan, is executed as of November 6, 2008.

	 	 	 	 	 
	 	WESTERN DIGITAL CORPORATION

 	 
	 	By:  	/s/ Jackie DeMaria
 	 
	 	 	Jackie DeMaria 	 
	 	 	Vice President, Human Resources

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