Western Digital (WDC)

 

John Coyne Employment Agreement.  Under our employment agreement with Mr. Coyne, if we terminate Mr. Coyne’s employment prior to January 1, 2012 other than for cause (as defined in the agreement) and other than in the event of Mr. Coyne’s death or disability, Mr. Coyne will be entitled to the Tier 1 benefits under our Executive Severance Plan or, if applicable, the benefits under our Change of Control Severance Plan and payment of certain accrued obligations consisting of annual base salary and vacation accrued through Mr. Coyne’s termination date.

 

In the event of Mr. Coyne’s death while employed by us, a pro-rata portion of the 1,100,000 restricted stock units granted to Mr. Coyne on January 31, 2007 will accelerate determined based on the ratio of (i) the total number of calendar days that Mr. Coyne is employed by us on and after January 31, 2007 through and including the date of Mr. Coyne’s death (but not less than 182 days) to (ii) the total number of calendar days commencing with January 31, 2007 through and including January 1, 2012, and excluding any of the restricted stock units that vested on or before the date of Mr. Coyne’s death. In addition, in the event Mr. Coyne remains employed by us as President and Chief Executive Officer through January 1, 2012, then upon Mr. Coyne’s termination after that date for any reason other than a termination by us for cause, all stock options granted to Mr. Coyne during the term of his agreement will become fully vested and Mr. Coyne will have three years to exercise the options, subject to their earlier termination. In such event, Mr. Coyne will also be eligible to receive payment following the end of the applicable performance period of any outstanding performance cash award on a pro-rata basis based on the period of Mr. Coyne’s employment with us during that performance period and to receive a bonus under our Incentive Compensation Plan with respect to the first half of fiscal year 2012 in such amount and at such time as bonuses, if any, are determined on a company-wide basis.

 

Stephen Milligan Separation Agreement.  Mr. Milligan’s employment with us ended on August 31, 2007 at which time Mr. Leyden succeeded him as Chief Financial Officer. In connection with his separation of employment from us, on July 31, 2007, we entered into a Separation, Transition and General Release Agreement with Mr. Milligan. Among other things, the agreement provided that Mr. Milligan would be entitled to the following if he remained employed with us through August 31, 2007 and performed his usual and customary duties as Chief Financial Officer with respect to the filing of our Form 10-K for the fiscal year ended June 29, 2007:

 

(1) a lump sum payment of $1,400,000, less standard withholding and authorized deductions, payable within thirty days of Mr. Milligan’s separation date;

 

(2) a lump sum pro-rata bonus payment under our Incentive Compensation Plan for the six-month bonus cycle ending December 28, 2007 (determined based on the number of days in the bonus cycle during which Mr. Milligan was employed) and assuming 100% of the performance targets subject to the bonus award are met regardless of actual funding by us;