Document:

EX-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 2011 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	  	Chief Operating Officer	  	$600,000
	Wolfgang U. Nickl	  	Senior Vice President and Chief Financial Officer	  	$400,000
	James J. Murphy	  	Executive Vice President, Worldwide Sales and Sales Operations	  	$425,000
	James K. Welsh III	  	Executive Vice President and GM, Branded Products	  	$400,000
	James D. Morris	  	Executive Vice President and GM, Storage Products	  	$400,000

 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 second half of fiscal 2012, are further described in the Company’s current report on form
8-K filed with the Securities and Exchange Commission on February 24, 2012, 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 2011 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: 
  

					
	 Type of Fee
	  	Current Annual
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. Effective commencing with the Company’s 2010 Annual Meeting of Stockholders, the annual retainer fees are 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.EX-10.2

 EXHIBIT 10.2 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the
“Agreement”) is entered into by and between Western Digital Corporation (the “Company”) and Stephen Dwight Milligan (“Executive”), as of the 7th day of March, 2011. This Agreement is being entered
into in connection with the Company’s entry into a Stock Purchase Agreement by and among the Company, Western Digital Ireland, Ltd., Hitachi, Ltd. and Viviti Technologies Ltd. dated on or about the date hereof (the “Stock Purchase
Agreement”), and shall become effective on the date of the closing of the transactions contemplated by the Stock Purchase Agreement (the “Effective Date”). If the transactions contemplated by the Stock Purchase Agreement
fail to close for any reason, or if the Stock Purchase Agreement terminates for any reason without the transactions contemplated thereby closing, this Agreement shall automatically terminate and be of no force and effect. 

1. EMPLOYMENT. 
 The Company hereby agrees to employ Executive and Executive hereby agrees to accept such employment, upon the terms and conditions hereinafter set forth including but not limited to provisions governing
early termination, from the Effective Date to and including the fifth anniversary of the Effective Date (“Employment Period”). Unless Executive’s employment is terminated pursuant to any early termination provision hereof or
the parties mutually agree otherwise in writing, Executive’s employment with the Company shall terminate without further action by either party on the fifth anniversary of the Effective Date. 

2. DUTIES. 
 A. President. Beginning on the Effective Date, Executive shall serve as President of the Company and shall report to the Company’s Chief Executive Officer. Executive’s duties shall
include overall responsibility for sales, business units, manufacturing, materials and engineering activities of the Company. The Company’s Chief Executive Officer currently intends to establish an “Office of the Chief Executive
Officer” to help guide the strategic direction and leadership tone of the Company following the closing of the transactions contemplated by the Stock Purchase Agreement, and to help guide integration activities. In the event the “Office of
the Chief Executive Officer” is established, the Executive shall be included as a member of the Office of the Chief Executive Officer during the Employment Period. Executive’s principal place of employment shall be the Company’s
principal executive office in Irvine, California. 
 B. Executive Commitment. During the Employment Period,
Executive agrees to devote substantially all of his time, energy and ability to the business of the Company, subject to paragraph E of Section 3. 
 3. COMPENSATION. 
 A. Base Salary. During the
Employment Period, the Company will pay to Executive a base salary at the rate of $800,000 per year. Such salary shall be earned monthly and shall be payable in periodic installments in accordance with the Company’s customary practices. Amounts
payable shall be reduced by standard withholding and other authorized deductions. Executive’s base salary may be increased in the sole discretion of the Compensation Committee of the Board of Directors (the “Compensation
Committee”). 
  

 B. Bonus. Executive’s target bonus during the Employment Period for
purposes of the Company’s semi-annual Incentive Compensation Plan (ICP) bonus program shall be 125% of his semi-annual base salary from the Company in effect on the last day of such fiscal period. Executive’s actual bonus under the ICP may
range from 0% to 200% of his target bonus based on the level of attainment of the applicable performance objectives established under the ICP. If the Effective Date occurs after the first day of a semi-annual performance period, Executive shall be
entitled to participate in the ICP for such performance period and Executive’s bonus for such period shall be based on Executive’s base salary earned during the partial performance period. Executive’s target bonus may be increased in
the sole discretion of the Compensation Committee. 
 C. Retirement and Welfare Benefit Plans; Fringe Benefits.
During the Employment Period, Executive (and, in the case of welfare benefit plans, his eligible dependents, as the case may be) shall be eligible for participation in the retirement, welfare, and fringe benefit plans, practices, policies and
programs provided by the Company on terms consistent with those generally applicable to the Company’s other senior executives and approved by the Compensation Committee. 
 D. Expenses. During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable employment expenses (including the relocation and commuting expenses
provided for in paragraph F below) incurred by him in accordance with the policies, practices and procedures as in effect generally with respect to other senior executives of the Company. 

E. Vacation and Other Leave. During the Employment Period, Executive shall receive paid vacation in an amount determined by
the Company’s then-existing policies based upon Executive’s years of service with the Company (and for these purposes, Executive’s service with Viviti Technologies Ltd. shall be recognized as service with the Company). Such vacation
shall be scheduled and taken in accordance with the Company’s standard vacation policies applicable to Company executives. Executive shall also be entitled to all other holiday and leave pay generally available to other executives of the
Company. 
 F. Relocation Benefits. Executive shall be entitled to receive prompt reimbursement (and in any event
within seventy days after the expense is incurred) for all reasonable moving or other relocation related expenses incurred by him at any time prior to the second anniversary of the Effective Date, including reasonable commuting expenses from
Executive’s residence in the San Francisco area to the Company’s Irvine headquarters. In order to be eligible for reimbursement for any such expenses, Executive must remain employed on the date the expense is incurred. 

G. Modification. The Company reserves the right to modify, suspend or discontinue any and all of the above plans,
practices, policies and programs at any time without recourse by Executive so long as such action is taken generally with respect to other senior executives of the Company and does not single out Executive. 

  
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 4. LONG-TERM INCENTIVE COMPENSATION. 

A. Long-Term Incentive Awards. During the Employment Period, the Executive shall be eligible to receive long-term incentive
awards on a basis commensurate with the Executive’s position and in accordance with the long-term incentive guidelines applicable to the Executive’s position established by the Compensation Committee. Any long-term incentive awards will
generally be granted by the Compensation Committee as part of its normal annual grant cycle applicable to other senior executives of the Company. However, for the Company’s 2012 fiscal year, the Executive shall be eligible to receive long-term
incentive awards at the first Compensation Committee meeting occurring after the Effective Date, provided that if the Executive’s fiscal 2012 long-term incentive grant is made prior to the Company’s normal fiscal 2012 annual grant cycle
that is expected to occur in September 2011, the Executive shall not be eligible to receive an additional fiscal 2012 long-term incentive grant in the normal grant cycle (the “Fiscal 2012 LTI Award”). It will be recommended to the
Compensation Committee that the grant value of the Fiscal 2012 LTI Award be no less than $4,000,000. The grant value of the Fiscal 2012 LTI Award will be allocated between stock options, restricted stock units and a long-term cash award in
accordance with the Company’s standard long-term incentive grant practices, which currently allocate 40% of the grant value to stock options, 30% of the grant value to restricted stock units and the remaining 30% of the grant value to a
long-term cash award. Any long-term incentive awards granted to the Executive will be subject to the Company’s customary terms and conditions (including vesting conditions), provided that any restricted stock units granted as part of the Fiscal
2012 LTI Award shall be scheduled to vest in three substantially equal annual installments. 
 B. Integration Performance
Units. As part of the Company’s integration bonus plan that will be established in connection with the closing of the transactions contemplated by the Stock Purchase Agreement, it will be recommended to the Compensation Committee that
Executive receive a grant of performance restricted stock units equal to that number of units having a target value on the grant date equal to $2,000,000 (the “Integration Performance Units”). The Integration Performance Units are
expected to be granted at the first Compensation Committee meeting occurring after the Effective Date. The actual number of Integration Performance Units that may become earned and payable will range from 0% to 200% of the target number of
Integration Performance Units awarded on the grant date, with the actual number of Integration Performance Units becoming earned and payable to be based on the Company’s achievement of the applicable performance milestones. The performance
milestones applicable to the Integration Performance Units will be determined by the Compensation Committee in consultation with the Chief Executive Officer of the Company following the Effective Date. Subject to Executive’s continued
employment through the first anniversary of the Effective Date, fifty percent (50%) of the target number of Integration Performance Units shall become earned and payable within seventy days following the first anniversary of the Effective Date
based on performance during the first year following the Effective Date. Subject to Executive’s continued employment through the second anniversary of the Effective Date, the remaining fifty percent (50%) of the target number of
Integration Performance Units shall become earned and payable within seventy days following the second anniversary of the Effective Date based on performance during the second year following the Effective Date. The integration bonus plan will
provide that in the event Executive’s employment is terminated under circumstances that give rise to the payment of severance payments under either the Company’s 

  
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Executive Severance Plan or Amended and Restated Change of Control Severance Plan ( in accordance with the terms of such plans and as each may be amended from time to time), then Executive shall
be entitled to receive payment of the target number of his Integration Performance Units applicable to any in-progress or future portion of the applicable performance periods within seventy days following the date of such termination of employment
(and for the avoidance of doubt, and not in any way in limitation of Executive’s rights to earn the Integration Performance Units based on performance, if such a termination occurs after the first anniversary of the Effective Date, Executive
shall not be entitled to receive by virtue of his termination of employment any Integration Performance Units attributable to the first year following the Effective Date to the extent not otherwise earned based on performance). 

5. TERMINATION. 
 A. Death. This Agreement and Executive’s employment shall terminate automatically on the death of Executive. 
 B. Disability. The Company, at its option, may terminate Executive’s employment upon the Disability of Executive. For purposes of this Agreement, “Disability” shall mean
physical or mental incapacity that renders Executive unable to perform the normal and customary duties of employment of Executive even with a reasonable accommodation for (A) 120 days in any twelve (12) month period or (B) for a
period of ninety (90) successive days. 
 C. Cause. The Company may terminate Executive’s employment for
Cause. For purposes of this Agreement, “Cause” shall mean that the Company, acting in good faith based upon the information then known to the Company, determines that Executive has engaged in or committed: (i) willful misconduct,
(ii) fraud, (iii) failure or refusal to perform the duties of President of the Company or (iv) a conviction of or a plea of nolo contendre to a felony. 
 D. Other than Cause, Death, or Disability. The Company may terminate Executive’s employment at any time, with or without cause, upon 30 days’ written notice. 

E. Obligations of the Company Upon Termination. 
 (i) Termination for any Reason. If Executive’s employment is terminated for any reason during the Employment Period, Executive shall be entitled to receive timely payment of the sum of
(i) Executive’s annual base salary through the date of termination to the extent not theretofore paid and (ii) any compensation previously deferred by Executive in accordance with the Company’s deferred compensation plans
(together with any accrued interest or earnings thereon pursuant to the terms of the applicable plan) and any accrued vacation pay, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (i) and
(ii) shall be hereinafter referred to as the “Accrued Obligations”). 
 (ii) Executive Severance Plan and
Change of Control Severance Plan. During the Employment Period, Executive shall be entitled to participate in the Company’s Executive Severance Plan and Amended and Restated Change of Control Severance Plan in accordance with the terms of
such plans and as each may be amended from time to time. Subject to the preceding sentence, the Executive shall be entitled to receive “Tier I” benefits under each of the Severance Plan and the Amended and Restated Change of Control
Severance Plan. Any benefits becoming payable under the Severance Plan or the Amended and Restated Change of Control Severance Plan as a result of the termination of the Executive’s employment shall be in addition to the Accrued Obligations,
provided that to the extent Executive becomes entitled to receive payments or benefits included within the Accrued Obligations under either such plan, Executive shall not be entitled to any duplication of benefits. 

  
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 F. Exclusive Remedy. Executive agrees that the payments and benefits
contemplated by this Agreement shall constitute the exclusive and sole remedy for any termination of his employment, and Executive covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of
employment. 
 6. CONFIDENTIALITY AND INVENTION. 

On or prior to the Effective Date, Executive shall execute the Company’s Employee Invention and Confidentiality Agreement
(“Invention Agreement”), which shall be incorporated herein as if fully set forth. In the event of an inconsistency between a provision of this Agreement and a provision of the Invention Agreement, the provision of this Agreement
controls. 
 7. NON-INTERFERENCE. 
 Executive promises and agrees that during the term of this Agreement, and for a period of twenty-four (24) months thereafter, he will not influence or attempt to influence any customer, supplier, or
distributor of the Company to alter or reduce its business relationship with the Company. 
 8. LITIGATION ASSISTANCE.

 Executive agrees to cooperate with the Company in any actual or threatened litigation that arises against or brought by
the Company at any time during or after the Employment Period, including but not limited to participating in interviews with the Company’s counsel to assist the Company in any such litigation. 

9. ARBITRATION. 
 Any controversy arising out of or relating to Executive’s employment, this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection
with any of its provisions, shall be submitted to arbitration 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 ADR Services, Inc., and shall be conducted in accordance with the provisions of California Civil Procedure Code Sections 1280 et seq. as the exclusive remedy
of such dispute; provided, however, that provisional injunctive relief may, but need not, be sought 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. Any award or relief granted by the arbitrator hereunder shall be
final and binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties
against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement or Executive’s employment. 

 

  
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 10. SUCCESSORS. 

A. This Agreement is personal to Executive and shall not, without the prior written consent of the Company, be assignable by
Executive. 
 B. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and
assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” and “assignee” shall include any person, firm, corporation or
other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires the stock of the Company or to which the Company assigns this Agreement by operation of law or otherwise. 

11. WAIVER. 
 No waiver of any breach of any term or provision of this Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and
signed by the party waiving the breach. 
 12. MODIFICATION. 

This Agreement shall not be modified by any oral agreement, either express or implied, and all modifications hereof shall be in writing
and signed by the parties hereto. 
 13. SAVINGS CLAUSE. 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or
applications of the Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable. 

14. COMPLETE AGREEMENT. 
 This Agreement (and all other agreements, exhibits, and schedules referred to in this Agreement, including without limitation the Invention Agreement) constitutes and contains the entire agreement and
final understanding concerning Executive’s employment with the Company and the other subject matters addressed herein between the parties. It is intended by the parties as a complete and exclusive statement of the terms of their agreement. It
supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matter hereof. Any representation, promise or agreement not specifically included in this Agreement shall not be
binding upon or enforceable against either party. This is a fully integrated agreement. 

  
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 15. GOVERNING LAW. 

This Agreement shall be deemed to have been executed and delivered within the County of Orange, State of California and the rights and
obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of California without regard to principles of conflict of laws. 

16. CONSTRUCTION. 
 Each party has cooperated in the drafting and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against any party on the basis that
the party was the drafter. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 
 17. COMMUNICATIONS. 
 All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been duly given if delivered or if mailed by registered or certified mail, postage prepaid, addressed to Executive at Western Digital Corporation, 3355 Michelson Drive, Suite
100, Irvine, California 92612, or addressed to the Company at: Western Digital Corporation, Attn. Corporate Secretary, 3355 Michelson Drive, Suite 100, Irvine, California 92612. Either party may change the address at which notice shall be given by
written notice given in the above manner. 
 18. SECTION 409A. 

To the extent that any reimbursements pursuant to paragraph D of Section 3 are taxable to Executive, any reimbursement payment due to
Executive pursuant to such provision shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred. The reimbursements pursuant to paragraph D of
Section 3 are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other
taxable year. 
 19. EXECUTION AND EFFECTIVE DATE. 

This Agreement is being executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. This Agreement shall become effective on the Effective Date. If the transactions contemplated by the Stock
Purchase Agreement fail to close for any reason, or if the Stock Purchase Agreement terminates for any reason without the transactions contemplated thereby closing, this Agreement shall automatically terminate and be of no force and effect.
Effective on the Effective Date, this Agreement shall supersede and replace any employment, severance, change in control or similar agreement Executive may have been a party to with Viviti Technologies Ltd. (each, a “Prior Employment
Agreement”), and each Prior Employment Agreement shall automatically terminate and be of no force and effect on the Effective Date, provided that payment of any benefits that have become payable or to which Executive has become entitled
prior to the Effective Date (including immediately prior to the Effective Date) shall be paid or provided pursuant to the terms of such Prior Employment Agreement and shall not be superseded by this Agreement. 

[Signatures on the following page.] 

  
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 In witness whereof, the parties hereto have executed this Agreement as of the date first
above written. 
  

			
	THE COMPANY:
		
	By:	 	/s/ John F. Coyne
		 	Name: John F. Coyne
		 	Title: Chief Executive Officer

  

			
	EXECUTIVE:
		
	By:	 	/s/ Stephen Dwight Milligan
		 	Name: Stephen Dwight Milligan

 [Signature Page to Milligan Employment
Agreement]

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