Document:

Exhibit 10.1

Exhibit 10.1

Western Digital Corporation

Summary of Compensation Arrangements

for

Named Executive Officers and Directors

NAMED EXECUTIVE OFFICERS

Base Salaries. The current annual base salaries for the current executive officers of Western
Digital Corporation (the “Company”) who were named in the Summary Compensation Table in the
Company’s Proxy Statement that was filed with the Securities and Exchange Commission in connection
with the Company’s 2010 Annual Meeting of Stockholders (the “Named Executive Officers”) are as
follows:

	 	 	 	 	 	 	 
	Named Executive Officer	 	Title	 	Current Base Salary	 
	John F. Coyne	 	President and Chief Executive Officer
	 	$	1,000,000	 
	Timothy M. Leyden	 	Executive Vice President and Chief Financial Officer
	 	$	600,000	 
	Martin W. Finkbeiner	 	Executive Vice President, Operations
	 	$	450,000	 

Semi-Annual Bonuses. Under the Company’s Incentive Compensation Plan (the “ICP”), the Named
Executive Officers are also eligible to receive semi-annual cash bonus awards that are determined
based on the Company’s achievement of performance goals pre-established by the Compensation
Committee (the “Committee”) of the Company’s Board of Directors as well as other discretionary
factors. The ICP, including the performance goals established by the Committee for the first half
of fiscal 2011, are further described in the Company’s current report on form 8-K filed with the
Securities and Exchange Commission on August 17, 2010, which is incorporated herein by reference.

Additional Compensation. The Named Executive Officers are also eligible to receive
equity-based incentives and discretionary bonuses as determined from time to time by the Committee,
are entitled to participate in various Company plans, and are subject to other written agreements,
in each case as set forth in 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 filed with the Securities and
Exchange Commission in connection with the Company’s 2010 Annual Meeting of Stockholders.

 

 

 

DIRECTORS

Annual Retainer and Committee Retainer Fees. The following table sets forth the current
annual retainer and committee membership fees payable to each of the Company’s non-employee
directors:

	 	 	 	 	 
	 	 	Current Annual	 
	Type of Fee	 	Retainer Fees	 
	Annual Retainer
	 	$	75,000	 
	Lead Independent Director Retainer
	 	$	20,000	 
	Non-Executive Chairman of Board Retainer
	 	$	100,000	 
	Additional Committee Retainers
	 	 	 	 
	• Audit Committee
	 	$	10,000	 
	• Compensation Committee
	 	$	5,000	 
	• Governance Committee
	 	$	2,500	 
	Additional Committee Chairman Retainers
	 	 	 	 
	• Audit Committee
	 	$	15,000	 
	• Compensation Committee
	 	$	10,000	 
	• Governance Committee
	 	$	7,500	 

The retainer fee to the Company’s lead independent director referred to above is paid only if
the Chairman of the Board is an employee of the Company. The annual retainer fees are generally
paid on January 1 of each year. However, effective commencing with the Company’s 2010 Annual
Meeting of Stockholders, the annual retainer fees will be paid immediately following the Annual
Meeting of Stockholders.

Non-employee directors do not receive a separate fee for each Board of Directors or committee
meeting they attend. However, the Company reimburses all non-employee directors for reasonable
out-of-pocket expenses incurred to attend each Board of Directors or committee meeting. Mr. Coyne,
who is an employee of the Company, does not receive any compensation for his service on the Board
or any Board committee.

Additional Director Compensation. The Company’s non-employee directors are also entitled to
participate in the following other Company plans as set forth in exhibits to the Company’s filings
with the Securities and Exchange Commission: Non-Employee Director Option Grant Program and
Non-Employee Director Restricted Stock Unit Grant Program, each as adopted under the Company’s
Amended and Restated 2004 Performance Incentive Plan; Amended and Restated Non-Employee Directors
Stock-for-Fees Plan; and Deferred Compensation Plan.Exhibit 10.2

Exhibit 10.2

WESTERN DIGITAL CORPORATION

2005 EMPLOYEE STOCK PURCHASE PLAN

The Western Digital Corporation 2005 Employee Stock Purchase Plan (the “Plan”) shall be
established and operated in accordance with the following terms and provisions.

1. Definitions.

As used in the Plan the following terms shall have the meanings set forth below:

(a) “Board” means the Board of Directors of the Company.

(b) “Code” means the Internal Revenue Code of 1986, as amended.

(c) “Committee” means the committee appointed by the Board to administer the Plan as described
in Section 4 below.

(d) “Common Stock” means the common stock, $0.01 par value, of the Company.

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

(f) “Continuous Employment” means the absence of any interruption or termination of service as
an Employee with the Company and/or its Participating Subsidiaries. Continuous Employment shall not
be considered interrupted in the case of a leave of absence agreed to in writing by the Company,
provided that such leave is for a period of not more than 90 days or reemployment upon the
expiration of such leave is guaranteed by contract or statute. If a Participating Subsidiary
ceases to be a Subsidiary, each person employed by that Subsidiary will be deemed to have had a
break in Continuous Employment for purposes of the Plan at the time the Participating Subsidiary
ceased to be a Subsidiary, unless such person continues as an Employee in respect of another
Company entity.

(g) “Eligible Compensation” means, with respect to each Participant for each pay period, the
full salary and wages paid to such Participant by the Company or a Participating Subsidiary,
including commissions, bonuses (to the extent not excluded below), overtime pay and shift
differentials. Except as otherwise determined by the Committee, “Eligible Compensation” does not
include

(i) any amounts contributed by the Company or a Participating Subsidiary to any pension plan
or plan of deferred compensation,

(ii) any automobile or relocation allowances (or reimbursement for any such expenses),

(iii) any amounts paid that are non-regularly scheduled items of compensation (for example,
starting bonus, finder’s fee, or other special bonuses),

 

 

 

(iv) any amounts realized from the exercise of qualified or non-qualified stock options, or

(v) any amounts paid by the Company or a Participating Subsidiary for other fringe benefits,
such as health and welfare, hospitalization and group life insurance benefits, or perquisites, or
paid in lieu of such benefits, such as cash-out of credits generated under a plan qualified under
Code Section 125.

(h) “Eligible Employee” means an Employee who is

(i) customarily employed for at least twenty (20) hours per week and more than five months in
a calendar year, and

(ii) eligible to participate in the Plan as described in Section 5 below.

If any person is (a) an Employee due to any classification or reclassification of the person
as an employee or common-law employee of the Company or one of its Participating Subsidiaries by
reason of action taken by any tax or other governmental authority, or (b) an Employee who has a
written employment agreement providing that the Employee shall not participate in the Plan until at
least two (2) years of Continuous Employment, then such Employee must be employed for at least two
(2) years by the Company or one of its Participating Subsidiaries as well as meet the criteria set
forth above in subsections (i) and (ii) in order to be an Eligible Employee.

(i) “Employee” means each person currently employed by the Company or one of its Participating
Subsidiaries. It shall not include any person who is recorded on the books and records of the
Company or one of its Participating Subsidiaries as an independent contractor or consultant or a
worker provided by a temporary staffing agency.

(j) “Enrollment Date” means the first day of each Offering Period.

(k) “Exercise Date” means one or more dates during an Offering Period, as established by the
Committee in accordance with Section 6 hereof, on which options to purchase Common Stock granted
under the Plan shall be exercised as provided in Section 11 hereof.

(l) “Exercise Period” means one or more periods during an Offering Period, the duration of
which shall be established by the Committee in accordance with Section 6 hereof, during which
payroll deductions are accumulated for purposes of purchasing Common Stock under the Plan on each
Exercise Date.

(m) “Exercise Price” means the price per share of shares offered in a given Offering Period
determined as provided in Section 10 below.

 

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(n) “Fair Market Value” means, with respect to a share of Common Stock as of any Enrollment
Date or Exercise Date (or New Exercise Date, as the case may be), the closing price of such Common
Stock on the New York Stock Exchange on such date, as reported in The Wall
Street Journal. In the event that such a closing price is not available for an Enrollment Date
or an Exercise Date, or New Exercise Date, the Fair Market Value of a share of Common Stock on such
date shall be the closing price of a share of the Common Stock on the New York Stock Exchange on
the last business day prior to such date or such other amount as may be determined by the Committee
by any fair and reasonable means.

(o) “New Exercise Date” means the new exercise date set by the Board in the case of a sale of
all or substantially all of the assets of the Company, or the merger of the Company with or into
another corporation or other entity in certain circumstances as described in Section 15(b).

(p) “Offering Period” means a period of time with respect to which options are granted under
the Plan, the time and duration of which shall be established by the Committee in accordance with
Section 6.

(q) “Parent” means any corporation, domestic or foreign, which owns, directly or indirectly,
not less than 50% of the total combined voting power of all classes of stock or other equity
interests of the Company and that otherwise qualifies as a “parent corporation” within the meaning
of Section 424(e) of the Code or any successor thereto.

(r) “Participant” means an Eligible Employee who has elected to participate in the Plan by
filing an enrollment agreement with the Company as provided in Section 7 below.

(s) “Participating Subsidiary” means any Subsidiary other than a Subsidiary excluded from
participation in the Plan by the Committee, in its sole discretion.

(t) “Plan” means this Western Digital Corporation 2005 Employee Stock Purchase Plan.

(u) “Subsidiary” means any corporation, domestic or foreign, of which the Company owns,
directly or indirectly, not less than 50% of the total combined voting power of all classes of
stock or other equity interests and that otherwise qualifies as a “subsidiary corporation” within
the meaning of Section 424(f) of the Code or any successor thereto.

2. Purpose of the Plan.

The purpose of the Plan is to provide an incentive for present and future Employees of the
Company and its Participating Subsidiaries to acquire a proprietary interest (or increase an
existing proprietary interest) in the Company through the purchase of Common Stock. It is the
intention of the Company that the Plan qualify as an “employee stock purchase plan” under Section
423 of the Code. Accordingly, the provisions of the Plan shall be administered, interpreted and
construed in a manner consistent with the requirements of that section of the Code.

 

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3. Shares Reserved for the Plan.

(a) There shall be reserved for issuance and purchase by Participants under the Plan an
aggregate of 13,000,000 shares of Common Stock, subject to adjustment as provided in Section 15
below. Shares of Common Stock subject to the Plan may be newly issued shares or
shares reacquired in private transactions or open market purchases. If and to the extent that
any right to purchase reserved shares shall not be exercised by any Participant for any reason or
if such right to purchase shall terminate as provided herein, shares that have not been so
purchased hereunder shall again become available for the purposes of the Plan unless the Plan shall
have been terminated, but all shares sold under the Plan, regardless of source, shall be counted
against the limitation set forth above.

(b) From time to time and without shareholder approval, the Committee may fix a maximum limit
on the number of shares that may be acquired by any individual during an Exercise Period under the
Plan, which limit shall be effective no earlier than the first Offering Period that commences after
the determination of such limit by the Committee; provided, however, that any adjustment to such
limit pursuant to Section 15 shall apply to any Exercise Period in progress at the time such
adjustment is made.

4. Administration of the Plan.

(a) The Plan shall be administered by a Committee appointed by, and which shall serve at the
pleasure of, the Board. The Committee shall consist of two or more directors, each of whom is a
“Non-Employee Director” within the meaning of Rule 16b-3 promulgated under the Securities Exchange
Act of 1934, as amended, as such rule may be amended from time to time. The Committee shall have
authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to
the Plan, and to make all other determinations necessary or advisable for the administration of the
Plan, all of which actions and determinations shall be final, conclusive and binding on all
persons.

(b) The Committee may request advice or assistance or employ such other persons as it in its
absolute discretion deems necessary or appropriate for the proper administration of the Plan,
including, but not limited to employing a brokerage firm, bank or other financial institution to
assist in the purchase of shares, delivery of reports or other administrative aspects of the Plan.

(c) Neither the Board nor any Committee, nor any member thereof or person acting at the
direction thereof, shall be liable for any act, omission, interpretation, construction or
determination made in good faith in connection with the Plan, and all such persons shall be
entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage
or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under any directors and officers liability insurance
coverage that may be in effect from time to time.

5. Eligibility to Participate in the Plan.

Subject to limitations imposed by Section 423(b) of the Code, any Eligible Employee who is
employed by the Company or a Participating Subsidiary on an Enrollment Date shall be eligible to
participate in the Plan for the Offering Period beginning on that Enrollment Date.

 

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6. Offering Periods.

During the term of the Plan, the Company will grant options to purchase shares of Common Stock
in each Offering Period to all Participants in that Offering Period. The
Committee shall determine from time to time, subject to the requirements of Section 423 of the
Code and no later than the first Offering Period to commence under the Plan, when Offering Periods
will be offered during the term of the Plan and shall establish the Enrollment Date(s), the number
and duration of the Exercise Period(s), and the Exercise Date(s) for such Offering Period(s), which
determinations shall be effective no later than the first Offering Period that commences after they
are made by the Committee and provided, however, that no Offering Period may exceed twenty-four
(24) months in duration. To the extent consistent with Section 423 of the Code, the Committee may
provide for a new Offering Period to commence prior to the termination of one or more preceding
Offering Periods.

7. Election to Participate in the Plan.

(a) Each Eligible Employee may elect to participate in an Offering Period by completing an
enrollment agreement on a form approved by and in a manner prescribed by the Committee (or its
delegate) or, if the Committee does not require enrollment forms, by otherwise completing such
enrollment procedures as the Committee may prescribe. Such agreement must be filed with the
Company or such other procedures must be completed, as applicable, prior to the applicable
Enrollment Date, unless the Committee establishes an earlier deadline for filing the enrollment
form for all Eligible Employees with respect to a given Offering Period. An Eligible Employee may
participate in an Offering Period only if, as of the Enrollment Date of such Offering Period, such
Eligible Employee is not participating in any prior Offering Period which is continuing at the time
of such proposed enrollment.

(b) Payroll deductions for a Participant shall commence on the first payroll date on or
following the Enrollment Date and shall end on the last payroll date in the Offering Period to
which such authorization is applicable, unless sooner terminated by the Participant as provided in
Section 12.

(c) Unless a Participant elects otherwise prior to the Enrollment Date of the immediately
succeeding Offering Period, an Eligible Employee who is participating in an Offering Period as of
the last Exercise Date of such Offering Period (the “Prior Offering Period”) shall be deemed (i) to
have elected to participate in the immediately succeeding Offering Period and (ii) to have
authorized the same payroll deduction for such immediately succeeding Offering Period as was in
effect for such Participant immediately prior to the expiration or termination of the Prior
Offering Period.

(d) In its discretion, the Committee may determine (with such determination to be effective no
earlier than the first Offering Period that commences after such determination by the Committee)
that the participation of all Participants on an Exercise Date in an Offering Period that includes
more than one Exercise Period shall terminate and such Participants shall be enrolled in a new
Offering Period commencing immediately following such Exercise Date if, during such Offering
Period, the Fair Market Value determined as of such Exercise Date within such Offering Period is
lower than the Fair Market Value determined as of the Enrollment Date of such Offering Period. In
such event, each of such Participants shall be deemed for purposes of this Plan (i) to have elected
to participate in such new Offering Period, and (ii) to have authorized the same payroll deduction
for such new Offering Period as was in effect for such Participant immediately prior to the
Termination Date.

 

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8. Payroll Deductions.

(a) All Participant contributions to the Plan shall be made only by payroll deductions. At the
time a Participant files the enrollment agreement with respect to an Offering Period, the
Participant shall authorize payroll deductions to be made on each payroll date during the Offering
Period in an amount up to 10% (or such other limit as the Committee may establish prior to the
start of the applicable Offering Period) of the Eligible Compensation which the Participant
receives on each payroll date during such Offering Period. The Committee also may prescribe other
limits, rules or procedures for payroll deductions. Unless otherwise provided by the Committee,
the amount of such payroll deductions shall be a whole percentage (i.e., 1%, 2%, 3%, etc.) of the
Participant’s Eligible Compensation.

(b) All payroll deductions made for a Participant shall be deposited in the Company’s general
corporate account and shall be credited to the Participant’s account under the Plan. No interest
shall accrue or be credited with respect to the payroll deductions of a Participant under the Plan.
A Participant may not make any additional payments into such account. All payroll deductions
received or held by the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll deductions.

(c) A Participant may discontinue participation in the Plan as provided in Section 12. Unless
otherwise provided by the Committee in advance of an Offering Period, a Participant may at any time
during the Offering Period (but no more than four times in any calendar year) reduce or increase
(subject to the limitations of Section 8(a) above) the rate of his or her payroll deductions by
completing and filing with the Company a change notice in the form provided by the Company. Any
such reduction in the rate of a Participant’s payroll deductions shall be effective as of the pay
period specified by the Participant in the Participant’s change notice, but in no event sooner than
the first pay period ending more than fifteen (15) days after the Participant files the change
notice with the Company. Any such increase in the rate of a Participant’s payroll deductions shall
be effective as of the first date of the next Exercise Period within such Offering Period.

9. Grant of Options.

(a) On the Enrollment Date of each Offering Period, subject to the limitations set forth in
Sections 3, 9(b) and 17 hereof, each Participant shall be granted an option to purchase on each
Exercise Date during such Offering Period up to a number of shares of the Common Stock determined
by dividing such Participant’s payroll deductions accumulated during the Exercise Period ending on
such Exercise Date by the Exercise Price for such Exercise Period (determined as provided in
Section 10 below), provided that the number of shares subject to the option shall not exceed five
(5) times the number of shares determined by dividing (i) 10% (or such other maximum limit on a
Participant’s payroll deductions for the Offering Period as the Committee may establish pursuant to
Section 8(a)) of the Participant’s Eligible Compensation over the Offering Period (determined based
upon the Participant’s rate of Eligible Compensation in effect as of the Enrollment Date), by (ii)
the Fair Market Value of a share of the Common Stock on the Enrollment Date multiplied by the
percentage (not less than 85%) used to calculate the Exercise Price for that Offering Period.

 

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(b) Notwithstanding any provision of the Plan to the contrary, no Participant shall be granted
an option under the Plan (i) if, immediately after the grant, such Participant (or any other person
whose stock would be attributed to such Participant pursuant to Section 424(d) of the Code) would
own stock and/or hold outstanding options to purchase stock possessing 5% or more of the total
combined voting power or value of all classes of stock of the Company or of any Parent or any
Subsidiary of the Company, or (ii) which permits such Participant’s rights to purchase stock under
all employee stock purchase plans of the Company, its Subsidiaries and any Parent to accrue at a
rate which exceeds $25,000 of fair market value of such stock (determined at the time such option
is granted) for each calendar year in which such option is outstanding at any time.

10. Exercise Price.

The Committee shall establish from time to time (but no later than the first Offering Period
to commence under the Plan) the method for determining the Exercise Price for each Offering Period
under the Plan in accordance with this Section 10, which determination shall be effective no
earlier than the first Offering Period that commences after such determination is made by the
Committee. In making its determination, the Committee may provide that the Exercise Price for an
Offering Period shall be determined by applying a discount amount (not to exceed 15%) to either
(1) the Fair Market Value of a share of Common Stock on the Enrollment Date of such Offering
Period, or (2) the Fair Market Value of a share of Common Stock on the applicable Exercise Date, or
(3) the lesser of the Fair Market Value of a share on the Enrollment Date of such Offering
Period or the Fair Market Value of a share on the applicable Exercise Date. Notwithstanding
anything to the contrary in the preceding provisions of this Section 10, in no event shall the
Exercise Price per share be less than the par value of a share of Common Stock.

11. Exercise of Options.

Unless a Participant withdraws from the Plan as provided in Section 12, the Participant’s
option for the purchase of shares will be exercised automatically on each Exercise Date of the
Offering Period, and the maximum number of full shares subject to option will be purchased for the
Participant at the applicable Exercise Price with the accumulated payroll deductions in the
Participant’s account. Any amount remaining in the Participant’s account after an Exercise Date
that is not sufficient to purchase a whole share shall be held in the account until the next
Exercise Date. In the event that an Offering Period has been over-subscribed or that any other
applicable Plan limit has been exceeded by a Participant in an Offering Period, any amount
remaining in such Participant’s account shall be refunded to the Participant as soon as
administratively practicable after the end of the Offering Period.

12. Withdrawal; Termination of Employment.

(a) A Participant may withdraw all but not less than all of the payroll deductions credited to
the Participant’s account under the Plan at any time by giving written notice to the Company. All
of the Participant’s payroll deductions credited to the Participant’s account will be paid to him
or her promptly after receipt of the Participant’s notice of withdrawal, the Participant’s
participation in the Plan will be automatically terminated, and no further payroll deductions for
the purchase of shares will be made. Payroll deductions will not resume on behalf
of a Participant who has withdrawn from the Plan unless written notice is delivered to the
Company within the open enrollment period preceding the commencement of an Exercise Period
directing the Company to resume payroll deductions.

 

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(b) Upon termination of the Participant’s Continuous Employment prior to the Exercise Date of
an Offering Period for any reason, including retirement or death, the payroll deductions credited
to the Participant’s account will be returned to the Participant or, in the case of death, to the
Participant’s estate, and the Participant’s options to purchase shares under the Plan will be
automatically terminated.

(c) In the event a Participant fails to maintain Continuous Employment for at least twenty
(20) hours per week during an Offering Period, the Participant will be deemed to have elected to
withdraw from the Plan, the payroll deductions credited to the Participant’s account will be
returned to the Participant, and the Participant’s options to purchase shares under the Plan will
be terminated.

(d) A Participant’s withdrawal from an Offering Period will not have any effect upon the
Participant’s eligibility to participate in a succeeding Offering Period or in any similar plan
which may hereafter be adopted by the Company.

13. Transferability.

Neither payroll deductions credited to a Participant’s account nor options to purchase Common
Stock granted under the Plan may be transferred, assigned, pledged or otherwise disposed of by a
Participant other than by will or the laws of descent and distribution. Options granted under the
Plan are exercisable during a Participant’s lifetime only by the Participant.

14. Reports.

Individual accounts will be maintained for each Participant in the Plan. Statements of account
will be given to Participants promptly following each Exercise Date, which statements will set
forth the amounts of payroll deductions, the per share purchase price, the number of shares
purchased and the remaining cash balance, if any.

15. Adjustments Upon Changes in Capitalization.

(a) If the outstanding shares of Common Stock are increased or decreased, or are changed into
or are exchanged for a different number or kind of shares, as a result of one or more
reorganizations, restructurings, recapitalizations, reclassifications, stock splits, reverse stock
splits, stock dividends or any similar unusual or extraordinary corporate transaction, appropriate
adjustment shall be made in the number and/or kind of shares, and the Exercise Price thereof, which
may be issued in the aggregate and to any Participant upon exercise of options granted under the
Plan.

 

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(b) In the event of the proposed dissolution or liquidation of the Company, each Offering
Period then in progress will terminate immediately prior to the consummation of such proposed
action, unless otherwise provided by the Committee. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company with or into
another corporation or entity, each option under the Plan shall be assumed or an equivalent
option shall be substituted by such successor corporation or entity or a parent or subsidiary of
such successor corporation or entity, unless the Committee determines, in the exercise of its sole
discretion and in lieu of such assumption or substitution, that the Participants shall have the
right to exercise the option as to all of the optioned stock. If the Committee makes an option
fully exercisable under these circumstances in lieu of assumption or substitution, each Offering
Period then in progress shall be shortened and a new Exercise Date shall be set (the “New
Exercise Date”), as of which date any Offering Period then in progress will terminate. The New
Exercise Date shall be on or before the date of consummation of the transaction and the Committee
shall notify each participant in writing, at least ten (10) days prior to the New Exercise Date,
that the Exercise Date for his or her option has been changed to the New Exercise Date and that his
or her option will be exercised automatically on the New Exercise Date, unless prior to such date
he or she has withdrawn from the Offering Period as provided in Section 12. The Exercise Price on
the New Exercise Date shall be determined as provided in Section 10 hereof, and for purposes of
determining such Exercise Price, the New Exercise Date shall be treated as the “Exercise Date.”

(c) In all cases, the Committee shall have full discretion to exercise any of the powers and
authority provided under this Section 15, and the Committee’s actions hereunder shall be final and
binding on all Participants. No fractional shares of stock shall be issued under the Plan pursuant
to any adjustment authorized under the provisions of this Section 15.

16. Amendment of the Plan.

The Board may at any time, or from time to time, amend or suspend the Plan, in whole or in
part and without notice; provided, however, that the Plan may not be amended in any way that will
cause rights issued under the Plan to fail to meet the requirements for employee stock purchase
plans as defined in Section 423 of the Code or any successor thereto, including, without
limitation, shareholder approval if required. No options may be granted during any suspension of
the Plan or after a termination of the Plan pursuant to Section 17(b) below, but the Committee will
retain jurisdiction as to options then outstanding in accordance with the terms of the Plan. No
amendment, suspension or termination pursuant to this Section 16 or Section 17 shall, without
written consent of the Participant, affect in any manner materially adverse to the Participant any
right or benefits of such Participant or obligations of the Company under any option granted under
the Plan prior to the effective date of such change; provided that the Board may amend, suspend or
terminate the Plan as to any outstanding options granted under the Plan for an Offering Period,
effective as of any Exercise Date within that Offering Period, without the consent of the
Participants to whom such options were granted. In no event shall changes contemplated by Section
7(d) or Section 15 be deemed to constitute changes or amendments requiring Participant consent.

17. Termination of the Plan.

The Plan and all rights of Employees hereunder shall terminate:

(a) on the Exercise Date that Participants would become entitled to purchase a number of
shares greater than the number of reserved shares remaining available for purchase under the Plan
if the final sentence in this Section 17 were not applied; or

(b) at any time, at the discretion of the Board.

 

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In the event that the Plan terminates under circumstances described in Section 17(a) above,
reserved shares remaining as of the termination date shall be sold to Participants on a pro rata
basis.

18. Notices.

All notices or other communications by a Participant to the Company under or in connection
with the Plan shall be deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the receipt thereof.

19. Shareholder Approval.

Continuance of the Plan shall be subject to approval by the shareholders of the Company within
twelve months before or after the date the Plan is adopted. If such shareholder approval is
obtained at a duly held shareholders’ meeting, it may be obtained by the affirmative vote of the
holders of a majority of the outstanding shares of the Company present or represented and entitled
to vote thereon.

20. Conditions Upon Issuance of Shares.

(a) The Plan, the grant and exercise of options to purchase shares of Common Stock under the
Plan, and the Company’s obligation to sell and deliver shares upon the exercise of options to
purchase shares shall be subject to all applicable federal, state and foreign laws, rules and
regulations, and to such approvals by any regulatory or governmental agency as may, in the opinion
of counsel for the Company, be required.

(b) The Company may make such provisions as it deems appropriate for withholding by the
Company pursuant to federal or state income tax laws of such amounts as the Company determines it
is required to withhold in connection with the purchase or sale by a Participant of any Common
Stock acquired pursuant to the Plan. The Company may require a Participant to satisfy any relevant
tax requirements before authorizing any issuance of Common Stock to such Participant.

21. Employees’ Rights.

(a) Nothing in the Plan (or in any other document related to the Plan) will confer upon any
Eligible Employee or Participant any right to continue in the employ or other service of the
Company or any Subsidiary, constitute any contract or agreement of employment or other service or
affect an employee’s status as an employee at will, nor shall interfere in any way with the right
of the Company or any Subsidiary to change such person’s compensation or other benefits or to
terminate his or her employment or other service, with or without cause. Nothing contained in this
Section 21(a), however, is intended to adversely affect any express independent right of any such
person under a separate employment or service contract.

 

10

 

(b) No Participant or other person will have any right, title or interest in any fund or in
any specific asset (including shares of Common Stock) of the Company or any Subsidiary by
reason of any option hereunder. Neither the provisions of the Plan (or of any other document
related to the Plan), nor the creation or adoption of the Plan, nor any action taken pursuant to
the provisions of the Plan will create, or be construed to create, a trust of any kind or a
fiduciary relationship between the Company or any Subsidiary and any Participant or other person.
To the extent that a Participant or other person acquires a right to receive payment pursuant to
the Plan, such right will be no greater than the right of any unsecured general creditor of the
Company.

(c) A Participant will not be entitled to any privilege of stock ownership as to any shares of
Common Stock not actually delivered to and held of record by the Participant. No adjustment will
be made for dividends or other rights as a shareholder for which a record date is prior to such
date of delivery.

22. Miscellaneous.

(a) The Plan, the options granted hereunder and any other documents related to the Plan shall
be governed by, and construed in accordance with, the laws of the State of Delaware.

(b) If any provision of the Plan shall be held by a court of competent jurisdiction to be
invalid and unenforceable, the remaining provisions of the Plan shall continue in effect.

(c) Captions and headings are given to the sections of the Plan solely as a convenience to
facilitate reference. Such captions and headings shall not be deemed in any way material or
relevant to the construction of interpretation of the Plan or any provision hereof.

(d) The adoption of the Plan shall not affect any other Company or Subsidiary compensation or
incentive plans in effect. Nothing in the Plan will limit or be deemed to limit the authority of
the Board or Committee (1) to establish any other forms of incentives or compensation for employees
of the Company or any Subsidiary (with or without reference to the Common Stock), or (2) to grant
or assume options (outside the scope of and in addition to those contemplated by the Plan) in
connection with any proper corporate purpose; to the extent consistent with any other plan or
authority. Benefits received by a Participant under an option granted pursuant to the Plan shall
not be deemed a part of the Participant’s compensation for purposes of the determination of
benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the
Company or any Subsidiary, except where the Committee or the Board (or the Board of Directors of
the Subsidiary that sponsors such plan or arrangement, as applicable) expressly otherwise provides
or authorizes in writing.

(e) The Committee may also adopt rules, procedures or sub-plans applicable to particular
Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Section 423
of the Code.

As Amended August 11, 2010

 

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