Document:

exv10w32

 

Exhibit 10.32

Western Digital Corporation

Summary of Compensation Arrangements

for

Named Executive Officers and Directors

Named Executive Officers

This summary sheet reports current base salaries and certain other compensation of the current
executive officers of Western Digital Corporation (the “Company”) who were named in the Summary
Compensation Table in the Proxy Statement filed by the Company in connection with the Company’s
2004 Annual Meeting of Shareholders (the “Named Executive Officers”).

	 	 	 	 	 	 	 
	Named Executive Officer	 	Current Base Salary	 	 	 	 
	 
	 	 	 	 	 	 
	Matthew E. Massengill
	 	$800,000	 	 	 	 
	Chairman and Chief
	 	 	 	 	 	 
	Executive Officer
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Arif Shakeel
	 	$580,000	 	 	 	 
	President and Chief
	 	 	 	 	 	 
	Operating Officer
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Stephen D. Milligan
	 	$350,000	 	 	 	 
	Senior Vice President and
	 	 	 	 	 	 
	Chief Financial Officer
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Raymond M. Bukaty
	 	$350,000	 	 	 	 
	Senior Vice President,
	 	 	 	 	 	 
	Administration, General
	 	 	 	 	 	 
	Counsel and Secretary
	 	 	 	 	 	 

The Named Executive Officers were awarded cash performance bonuses and performance shares on
January 20, 2005, as disclosed in Item 1.01 of the Company’s Current Report on Form 8-K, filed with
the Securities and Exchange Commission on January 26, 2005, which is incorporated herein by
reference.

The Named Executive Officers are entitled to participate in various Company plans as set forth in
the exhibits to the Company’s filings with the Securities and Exchange Commission.

In addition, the Named Executive Officers may be eligible to receive perquisites and other personal
benefits as disclosed in the Company’s Proxy Statement.

 

 

Directors

The Company’s non-employee directors receive an annual retainer of $40,000 in January, or if they
join the Company’s Board of Directors (the “Board”) at a later date, they receive a proportion of
the annual fee corresponding to the period for which they serve. The non-employee directors also
receive compensation of $2,500 for each session during which they attend a Board meeting, $1,500
for any and all committee meetings attended, $1,250 for each Board meeting and $750 for each
committee meeting held by telephone conference, and reimbursement of reasonable out-of-pocket
expenses incurred in attending each meeting. In addition, the chairman of each committee of the
Board receives an annual retainer of $5,000. Mr. Massengill and Mr. Shakeel, who are employees of
the Company, do not receive any compensation for their service on the Board or any Board committee.

The Company’s non-employee directors are entitled to participate in various Company plans as
set forth in the exhibits to the Company’s filings with the Securities and Exchange Commission.exv10w1

 

Exhibit 10.1

3450 East Miraloma Avenue, Anaheim, CA 92806-2101

(714) 414-4000

pacsun.com.

January 31, 2005

Lou Ann Bett

145 Sanctuary Court

Columbus, Ohio 43235

Dear Lou Ann:

I am extremely pleased to offer you the position of Division President of the d.e.m.o. Division of
Pacific Sunwear of California, Inc., (“the Company”), reporting directly to the President of the
Company. In this position, you will be part of the Executive Committee of the Company as well as
part of the Operating Committee for the Company and will be one of the key decision-makers of the
business. Your anticipated start date will be no later than May 2, 2005. The following are points
pertaining to your Pacific Sunwear employment:

	 	1.  	Your annual salary will be $450,000. You will be eligible to receive a
performance and salary review for fiscal 2005, with any merit increase prorated to
reflect your tenure during fiscal 2005. Said review is conducted and is effective
during March/April 2006, and annually thereafter.
	 
	 	2.  	You will be provided with a sign-on bonus in the pre-tax amount of $50,000, to
be paid within two weeks of your start date. Said bonus is paid with the agreement
from you that you will repay such funds in the event you that you leave the company
within one year of employment, other than if such transition is through no fault of
your own.
	 
	 	3.  	You will be eligible for our 2005 bonus plan, prorated for the period of your
employment during Fiscal 2005. Any bonus payments are made in or around April 2006.
Your target bonus potential is 50% of your salary based on both Company earnings for
the fiscal year and on your individual performance. (80% of the bonus is
earnings-related and 20% is discretionary, based on your individual performance.) The
Company bonus has a potential upside of 200% (i.e., 100% of your salary, with the same
distribution of 80% based on earnings and 20% based on individual performance). You
must be employed on the date the bonus is paid in order to be eligible for any part of
your bonus. The bonus is calculated based on the fiscal year’s performance of the
Company. You will be guaranteed a minimum bonus in the amount of $100,000 for fiscal
2005. The bonus plan can change in future years.

Page 1 of 2

 

	 	4.  	A recommendation will be made to the Board of Directors to grant you 40,000
shares of stock options at fair market value on your start date. Options have a four
(4) year vesting, with 25% vested after the first year of service and subsequent
monthly vesting thereafter consistent with an additional 25% vesting per year.
	 
	 	5.  	You will be eligible for a car allowance in the pretax amount of $9,000
annually, paid on a bi-weekly basis.
	 
	 	6.  	You will be eligible for 4 weeks of paid vacation annually for your first five
years of employment and 5 weeks annually thereafter. Vacation is accrued
proportionately per pay period.
	 
	 	7.  	The Company will pay for reasonable and customary expenses in regard to your
move from Columbus to the Orange County area, consistent with the terms and conditions
of the relocation benefits provided to executives. Relocation benefits are provided
with the understanding, and a separately signed agreement, that costs associated with
relocation will be reimbursed by you in the event that you leave the company within one
year of employment, other than if such transition is through no fault of your own.
	 
	 	8.  	You have indicated that you are under no contractual restrictions that would
prevent you from accepting employment with the Company.

You will be entitled to all other Company benefits provided to executives. Currently, those
benefits include, but are not limited to, medical, dental, vision, basic and supplemental life and
disability insurance. Additionally, we have available an executive deferred compensation plan with
a number of different investment options. The Company reserves the right to periodically change
benefits.

Lou Ann, we are extremely excited about the prospect of having you join our organization. Having
you as part of our executive team will add a needed expertise and perspective that will assure us
of the continued success of the company. We look forward to having your leadership and your impact
on the business.

Sincerely,

Abby S. Areinoff

Vice President, Human Resources

I acknowledge receipt and acceptance of the above offer of employment with Pacific Sunwear of
California, Inc. In this capacity, my services would be exclusively retained by Pacific Sunwear
foregoing all previous or future services elsewhere during my employment by the Company. I
understand and acknowledge that Pacific Sunwear of California, Inc. is an at-will employer.

Upon acceptance of the above offer, please forward or fax a signed copy of page two only to Human

Resources at (714) 414-4260.

	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	Date:	 	 
	

	 	 
	 	 	 	 	 	 
	

	 	Lou Ann Bett	 	 	 	 	 	 

Page 2 of 2exv10w2

 

Exhibit 10.2

SEVERANCE AGREEMENT

This Severance Agreement (hereinafter “the Agreement”) is made and entered into between Pacific
Sunwear of California, Inc., (hereinafter “the Company”) and Lou Ann Bett (hereinafter “the
Executive”).

WHEREAS, the Executive is to be employed by the Company in the capacity of Division President,
d.e.m.o.;

WHEREAS, the Company and the Executive wish to provide for the continuation of certain payments and
benefits to the Executive upon termination of Executive’s employment under specified circumstances,
and would like to set forth the terms relating to a release by Executive of any claims Executive
may have against Company;

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

	 	1.  	Post-Termination Benefits

	 	a.  	Salary. If the employment of Executive by Company is
terminated without Cause, as defined herein, Executive shall continue to receive
from the Company payment of Executive’s base salary for a period of one (1) year
following the date of termination of Executive’s employment (“the Termination
Date”). Such payments of base salary shall be payable to Executive on a bi-weekly
basis and shall be subject to mitigation by any amounts earned by Executive from a
subsequent employer during this period of time.

	 	b.  	Bonus. In addition to the foregoing, if the employment of
executive is terminated by the Company without Cause, as defined herein, at any
time during the fourth fiscal quarter of the year, the Company shall also pay to
Executive in a single payment within 90 days of the end of the Company’s fiscal
year, a prorata portion of the bonus payment that would otherwise have been
received for that year. Such payment shall take into consideration only the
company-performance component of the bonus payment and shall not include the
individual-performance component of the bonus. The prorata portion of the bonus
shall be based on the number of weeks of employment completed by the Executive
during the fiscal year prior to the Termination Date.

	 	c.  	Medical Benefits. If the employment of Executive by the
Company is terminated without Cause, as defined herein, the Company shall extend
medical coverage to the same extent already provided to the Executive under the
Company’s health benefits coverage for a period not to exceed

Page 1 of 6

 

	 	   	one (1) year, or until such time as Executive is covered for medical benefits by a
successor employer, whichever is sooner. During such time of extension of
coverage, Executive shall be required to continue to provide the employee
contributions for such coverage. Such coverage includes medical, dental and vision
coverage. Nothing contained herein is intended to limit Executive’s right to elect
COBRA coverage following the expiration of the extended benefits period.

	 	2.  	Cause.
	 
	 	   	For purposes of this Agreement, the term “Cause” shall mean:

	 	(i)  	Executive’s conviction of or entrance
of a plea of guilty or nolo contendere to a felony; or
	 
	 	(ii)  	Executive is engaging or has engaged in
fraud, material dishonesty, or other acts of willful misconduct in
connection with the business affairs of the Company; or
	 
	 	(iii)  	Executive engages in theft, embezzlement,
or other criminal misappropriation of funds from the Company; or
	 
	 	(iv)  	there is gross negligence in the
performance of Executive’s duties in her position of Division
President, d.e.m.o..

	 	3.  	At-Will Employment.
	 
	 	   	It is expressly understood and acknowledged by Executive that Executive’s employment by
Company is “at will” and nothing in this Agreement alters the “at will” nature of the
employment relationship. Executive acknowledges that the Company may terminate her
employment at any time, with or without Cause; provided, however, that if the
termination is without Cause, Executive will be entitled to the benefits described
herein.
	 
	 	4.  	Release Agreement
	 
	 	   	It shall be a condition to the obligations of the Company to make the payments and
provide the other benefits required hereunder that Executive execute and deliver to the
Company an effective General Release Agreement with the Company, in substantially the
form attached as Exhibit A (“the Release Agreement”), said agreement to become
effective following all time constraints provided under the Older Workers Benefit
Protection Act.
	 
	 	5.  	Counterparts.
	 
	 	   	This Agreement may be executed in one or more counterparts. All of such counterparts
shall constitute one and the same agreement and shall become effective when a copy
signed by each party has been delivered to the other

Page 2 of 6

 

	 	   	party and all time conditions under the Older Worker Benefit Protection Act have passed
without revocation of such signature.
	 
	 	6.  	Miscellaneous.

	 	a.  	This Agreement constitutes the entire agreement of the parties hereto
relating to the subject matter hereof, and there are no written or oral terms or
representations made by either party other than those contained herein.

	 	b.  	This Agreement supersedes all prior agreements between the parties
concerning the subject matter hereof.

	 	c.  	This Agreement may only be amended in writing signed by both parties.
No waiver by any party of any breach of this Agreement shall be deemed to be a
waiver by any party of any preceding or succeeding breach.

	 	d.  	The validity, interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of California without regard
to conflicts of law principles.

	 	e.  	The headings contained herein are for reference purposes only and
shall not in any way affect the meaning or interpretation of the Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.

COMPANY:

Pacific Sunwear of California, Inc.

	 	 	 	 	 	 	 
	By:

	 	 	 	Date:	 	 
	

	 	 
	 	 	 	 
	

	 	Greg H. Weaver

Chairman/CEO	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	Date:	 	 
	

	 	 
	 	 	 	 
	

	 	Lou Ann Bett	 	 	 	 

Page 3 of 6

 

Exhibit A

GENERAL RELEASE AGREEMENT

     THIS GENERAL RELEASE AGREEMENT (“the Release”) is made and entered into as of this ___day of
___, ___by Lou Ann Bett (“Executive”) in favor of Pacific Sunwear of California, Inc.

     WHEREAS, the Company has, prior to the date hereof, employed Executive as a fulltime employee
of the Company, but as of this date, Executive’s status as an employee has terminated; and

     WHEREAS, as a condition precedent to granting Executive certain severance benefits pursuant to
that Severance Agreement (“the Agreement”) between Executive and the Company dated as of February
15, 2005, the Company has required that Executive execute and deliver this Release in favor of the
Company;

     NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, Executive
hereby agrees as follows:

     1. Release.

     a. Except with respect to the Company’s obligations pursuant to the Severance Agreement, any
existing director or officer indemnification obligations and any retirement or similar benefits, if
any, applicable or payable to Executive, Executive hereby unconditionally remises, releases and
forever discharges to the fullest extent permitted by law, the Company, its employees, officers,
directors, agents, affiliates, subsidiaries and each of them from all manner of actions,
proceedings, causes of actions, claims, counterclaims, suits, debts, sums, monies, accounts,
covenants, agreements, promises, damages, losses or demands of whatever kind or nature from the
beginning of time to the present, whether known or unknown, in law or in equity, which in the past,
now or in the future arise, may arise or allegedly arise or are in any way resulting from or in any
manner connected with Executive’s employment by the Company and the termination of such employment
by the Company. Executive waives all claims and causes of action against the Company and all
damages, if any, that may be recoverable. This release and waiver of all claims and damages
includes, but is not limited to, any tort or claim of wrongful discharge, and all rights under the
federal, state or local laws prohibiting race, sex, age, religion, national origin, handicap,
disability or other forms of discrimination, including but not limited to, Title VII of the Civil
Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act,
the Family and Medical Leave Act, the California Fair Employment and Housing Act, the California
Family Rights Act, or any other federal, state or local law, regulation or ordinance.

Page 4 of 6

 

     b. This Release is intended to be effective as a bar to every claim, demand, and cause of
action stated above. Accordingly, Executive hereby expressly waives any rights and benefits
conferred by Section 1542 of the California Civil Code, which provides that

“A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by him must
have materially affected his settlement with the debtor.”

2. Miscellaneous.

a. This Release embodies the entire agreement of the parties and supersedes all prior
agreements between the parties hereto relating to the subject matter hereof.

b. The unenforceability or invalidity of any of the terms or provisions of this agreement
shall not affect the validity or invalidity of any of the terms or provisions which shall
be interpreted and construed in such manner as to carry out fully the intention of the
parties hereto.

c. This Release shall be construed and enforced in accordance with the laws of the State
of California.

d. Executive understands that by executing this release, Executive is giving up possible
rights that she may have, and that Executive does not have to sign this release. This
Release has been voluntarily and knowingly executed by Executive with the express
intention of effecting the extinguishment of any and all obligations and damages that the
Company may owe to Executive as provided herein, other than those described in the
Severance Agreement, dated February 15, 2005.

3. Effective Waiver 

a. Executive understands that the Executive has twenty-one (21) days to consider whether
or not to execute this release. Executive understands that a portion of this release,
solely relating to Executive’s rights under the Federal Age Discrimination in Employment
Act, as amended, may be revoked by notifying the company in writing of such revocation
within seven (7) days of execution of this release. The portion of this release relating
solely to Executive’s rights under the Federal Age Discrimination in Employment act, as
amended, is not effective until the expiration of such seven (7) day period. All parts
of this release not relating to claims of age discrimination and alleged damages under
the Age Discrimination in Employment Act, as amended, are effective immediately upon
execution of this release. Executive understands that upon the expiration of such seven
(7) day period, this release will become

Page 5 of 6

 

binding in its entirety upon the Executive and all portions thereof will be irrevocable.

b. Executive further understands that the rights accruing to Executive under the
Severance Agreement previously entered into by Executive do not become due and owing
until such time as this Release has been executed voluntarily and knowingly and the seven
(7) day rescission period has expired, rendering the Release irrevocable.

IN WITNESS WHEREOF, Executive has duly executed this Release in favor of the Company as of the day

and year first above written.

EXECUTIVE:

_______________________________

     Lou Ann Bett

Page 6 of 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]