Document:

exv10w29w3

 

Exhibit 10.29.3

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

AMENDMENT NO. 3 TO VOLUME PURCHASE AGREEMENT

     This Amendment No. 3 to the Volume Purchase Agreement (this “Amendment”) is dated as
of January 31, 2006, and is made by and between Komag USA (Malaysia) Sdn., a Malaysia unlimited
liability company (“Komag”), Komag, Incorporated, a Delaware Corporation (“Komag
Inc.”), and Western Digital Technologies, Inc., a Delaware corporation (“WDC”).

RECITALS

     A. WDC, Komag and Komag Inc. previously executed a Volume Purchase Agreement effective as of
June 6, 2005 and amended by Amendment No. 1 dated July 22, 2005 and Amendment No. 2 dated November
29, 2005 (the “VPA”).

     B. WDC, Komag and Komag Inc. now desire to amend the Agreement in the manner and upon the
terms and conditions hereinafter provided in this Amendment.

     NOW, THEREFORE, for and in consideration of the mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties executing this Amendment hereby agree as follows:

AGREEMENT

     1. Defined Terms. Capitalized terms not defined herein shall have the meanings set forth in
the VPA.

     2. Exhibit B. The second page of Exhibit B of the VPA is hereby deleted in
its entirety and replaced with Exhibit B attached hereto.

     3. Exhibit D. Exhibit D of the VPA is hereby deleted in its entirety and
replaced with Exhibit D attached hereto.

     4. Exhibit F. Exhibit F of the VPA is hereby deleted in its entirety and
replaced with Exhibit F attached hereto.

     5. Conditions. The effectiveness of this Amendment shall be conditioned upon 1)
approval from WDC’s board of directors and 2) approval from WDC’s bank lenders. Notwithstanding
anything herein to the contrary, this Amendment shall have no force or effect unless or until such
approvals have been received.

     6. Ratification of VPA. In the event of an inconsistency between the terms of this
Amendment and the terms of the VPA, the terms of this Amendment shall control. Except as amended
hereby, the VPA is ratified, approved and confirmed and shall remain in full force and effect in
accordance with its terms without modification.

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PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

     7. Confidentiality. Each party agrees that the terms and conditions, but not the
existence, of this Amendment will be treated as the other’s Confidential Information subject to
Section 11 of the VPA.

     8. Entire Agreement. The VPA, Exhibits, and specific Purchase Orders and Pull
Requests and this Amendment No. 3 set forth the complete agreement between the parties regarding
their subject matter and replace all prior or contemporaneous communications, understandings or
agreements, written or oral, about this subject.

     9. Counterparts. This Amendment may be executed in one or more counterparts, each of
which will be deemed to be an original, but all of which will be considered one and the same
instrument. A photocopy of a signature or a facsimile of a signature shall be as valid as an
original.

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PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

     IN WITNESS WHEREOF, the parties have caused this Amendment No. 3 to Volume Purchase Agreement
to be signed and accepted by their duly authorized representatives, effective as of the Effective
Date.

	 	 	 	 	 	 	 	 	 
	Western Digital Technologies, Inc.,	 	 	 	Komag USA (Malaysia) Sdn.
	a Delaware corporation.	 	 	 	a Malaysian corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Tom Nieto
	 	 	 	By:
	 	/s/ Kheng Huat Oung
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Tom Nieto
	 	 	 	Name:
	 	Kheng Huat Oung
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	 Vice President, Materials
	 	 	 	Title:
	 	Managing Director
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Komag Incorporated	 	 	 	 
	a Delaware corporation	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ray L. Martin	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Ray L. Martin	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Title:	 	Executive Vice President, Customer Sales and Service

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PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

EXHIBIT B

PRICES

(Page 2)

ADDITIONAL PAYMENT TERMS

     WDC shall make [***] payments to Komag Inc. in accordance with the schedule set forth below
[***] to be applied against [***] purchases of Product in accordance with this Exhibit as set forth
below:

     [***]

     [***] Payment [***] shall be made subject to [***] Exhibit D. [***]. The parties
acknowledge that the [***] have already been paid and received. [***] Payment [***] shall be
repaid by Komag, Inc. to WDC solely in accordance with [***] Section 6.7 and 4.3.3 of the VPA.

     The parties agree that it is their mutual intent that [***] Payment [***] be used by the Komag
Group solely for manufacturing and operations in connection with the [***], and not for the Komag
Group’s general working capital purposes.

     Starting no earlier than the first date that first production comes off the [***] and no later
than [***], Komag Inc. shall make payments monthly to WDC equal to [***] for each Unit invoiced
during the fiscal month, within 7 days after the fiscal month-end (regardless of whether such Unit
was a result of [***] or previously existing capacity) (the “Per Unit Offset”) [***], then
the remainder of the [***] shall become due and payable to WDC at the end of the Initial Term, and
Komag Inc. shall make such payment in a reasonable period of time not to exceed 15 Days.

     Notwithstanding the foregoing, in the event WDC makes payment to Komag in accordance with
Section 6.5 of the VPA for Units invoiced during [***], then the Per Unit Offset to be paid monthly
by Komag Inc. to WDC referenced in the previous paragraph shall increase [***].

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PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

EXHIBIT D

Progress Milestones

[***]

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PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

EXHIBIT F

Volumes

	 	 	 
	Quarter	 	Volume Requirement
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units
	 
	 	 
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units
	 
	 	 
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units
	 
	 	 
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units
	 
	 	 
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units
	 
	 	 
	[***] Fiscal Quarter for [***]
(i.e., the quarter ending [***])

	 	[***] Units*
	 
	 	 
	Each WDC Fiscal Quarter following the [***] Fiscal
Quarter for [***] (i.e., each quarter after the quarter
ending [***]) for the term of this VPA.

	 	[***] Units
	 
	 	 

 

			
	*	 	No later than [***], Komag shall deliver notice to WDC in writing confirming whether it can
deliver [***] Units for [***] Fiscal Quarter for [***] (i.e., the quarter ending [***]). Failure
to deliver such notice shall be deemed confirmation of its ability to deliver the [***] Units. In
the event such notice states that Komag is unable to deliver [***] Units, the [***] requirement
shall be [***] Units for the [***] Fiscal Quarter for [***] (i.e., the quarter ending [***]) and
[***] Units for all subsequent quarters.

1exv10w35w1

 

EXHIBIT 10.35.1

Western Digital Corporation

20511 Lake Forest Drive

Lake Forest, California 92630

November 17, 2005

Mr. John F. Coyne

20511 Lake Forest Drive

Lake Forest, CA 92630

Dear John:

     When countersigned by you below, this letter shall constitute our agreement that the entire
Performance Share Award granted by Western Digital Corporation (the “Company”), to you on May 25,
2005, in accordance with that certain Letter Agreement, dated May 25, 2005, between you and the
Company and that certain Notice of Grant of Performance Share Awards and Performance Share Award
Agreement, dated on or about May 25, 2005, is hereby terminated and you have no further rights with
respect to, or in respect of, such Performance Share Award.

     This letter agreement, which is entered for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, shall be interpreted and construed in accordance with
the laws of the State of Delaware (without regard to conflict of law principles) and applicable
federal law. This letter agreement constitutes the entire agreement and supersedes all prior
understandings and agreements, written or oral, of the parties hereto with respect to the subject
matter hereof.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Western Digital Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Raymond M. Bukaty
	 

	 	 	 	 
	 

	 	 	 	Raymond M. Bukaty
	 

	 	 	 	Senior Vice President, Administration,
	 

	 	 	 	General Counsel and Secretary

	 	 	 	 	 
	Agreed to and Accepted by:

	 	 	 	 
	 
	 	 	 	 
	/s/ John F. Coyne
	 	 	 	 
	 

John F. Coyne<PAGE>

EXHIBIT 10.2

SUMMARY OF FISCAL 2006 PERFORMANCE CRITERIA, AMERITRADE HOLDING CORPORATION 2002
                           MANAGEMENT INCENTIVE PLAN

On December 29, 2005, the Compensation Committee of the Board of Directors of
Ameritrade Holding Corporation ("Ameritrade") approved the performance metrics
and target incentives for eligible participants under the Ameritrade Holding
Corporation 2002 Management Incentive Plan (the "MIP"). The MIP is a stockholder
approved bonus plan that is intended to be qualified under Section 162(m) of the
Internal Revenue Code in order to maximize tax deductibility for Ameritrade,
while providing strong incentive for goal achievement at the highest levels of
the organization. Each fiscal year the Compensation Committee establishes the
performance goals that must be achieved for awards under the MIP and establishes
target incentive levels for eligible participants.

For fiscal year 2006, the Compensation Committee determined that the performance
criteria will be based on Ameritrade's earnings per share ("EPS"). Eligible
participants include the executive officers of Ameritrade. Certain executives of
TD Waterhouse Group, Inc. ("TDW") expected to become executives of TD Ameritrade
upon completion of Ameritrade's acquisition of TDW will also be participants
under the MIP if the acquisition is completed. The Compensation Committee
established two formulas with respect to components of each participant's bonus
award, subject to the Compensation Committee's authority to award a lesser
amount.

The first component of the bonus payment under the MIP is based on the
participant's base salary for fiscal year 2006. Base salary is multiplied by a
bonus opportunity percentage, which varies depending on the participant,
multiplied by two multiplied by a percentage metric measuring Ameritrade's
actual financial performance based upon EPS. The bonus opportunity percentage
under the MIP for certain of the executive officers ranges from 75% to 200% of
base salary (depending on the executive's position) if the TDW transaction is
completed, and from 60% to 104.2% if the TDW transaction is not completed.

The second component of the bonus payment under the MIP is a discretionary bonus
payment from a bonus pool (the "Discretionary Component"), which will only be
paid if the target EPS for fiscal year 2006 is met. The bonus pool is $5 million
if the TDW transaction is completed and $2 million if the TDW transaction is not
completed. With respect to the Discretionary Component, each participant may not
receive any bonus payments in excess of such participant's base salary
multiplied by his or her bonus opportunity percentage multiplied by 1.5.

A portion of the bonus payment under the MIP for certain participants will be
paid in cash and the remaining portion will be paid in the form of an equity
award granted under the Ameritrade 1996 Long Term Incentive Plan, based on the
value of Ameritrade common stock at the time of grant, if the TDW transaction is
completed. If the TDW transaction is not completed, the bonus payments will be
paid entirely in cash.

No executive officer may receive aggregate bonus payments for fiscal year 2006
in excess of $5 million. New base salary and other compensation terms for the
executives, including the executives of TDW who are expected to become
executives of TD Ameritrade upon completion of Ameritrade's acquisition of TDW,
are currently under consideration by Ameritrade's Compensation Committee as
described in Ameritrade's definitive proxy statement relating to the TDW
transaction described below.

As a result of the higher bonus target percentages associated with the
acquisition of TDW, Ameritrade's executive officers have interests in the
acquisition of TDW that are different from, or in addition to, the interests of
other Ameritrade stockholders. Ameritrade stockholders should consider these
interests when considering Ameritrade's board of directors' recommendation to
vote in favor of the proposals (and sub-proposals) presented in Ameritrade's
definitive proxy statement relating to the TDW transaction. Additional
information regarding the special interests of Ameritrade's executive officers
in the proposed transaction with TDW is included in the definitive proxy
statement of Ameritrade.

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