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 &lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Note&amp;#xA0;7.&amp;#xA0;Western Digital Corporation 401(k)
 Plan&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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 &lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
 &lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company has
 adopted the Western Digital Corporation 401(k) Plan (the
 &amp;#x201C;Plan&amp;#x201D;). The Plan covers substantially all domestic
 employees, subject to certain eligibility requirements. The Company
 makes a basic matching contribution on behalf of each participating
 eligible employee equal to fifty percent (50%)&amp;#xA0;of the eligible
 participant&amp;#x2019;s pre-tax contributions for the contribution
 cycle not to exceed 5% of the eligible participant&amp;#x2019;s
 compensation; provided, however, that each eligible participant
 shall receive a minimum annual basic matching contribution equal to
 fifty percent (50%)&amp;#xA0;of the first $4,000 of pre-tax
 contributions for any calendar year. The Plan was amended effective
 January&amp;#xA0;1, 2013, to provide for a year-end true-up matching
 contribution such that participants who save at least 5% of their
 eligible compensation for the year receive a minimum annual
 matching contribution equal to 2.5% of eligible compensation (up to
 Internal Revenue Service (&amp;#x201C;IRS&amp;#x201D;) limitations). Company
 contributions vest over a 5-year period of employment. For 2013,
 2012, and 2011, the Company made Plan contributions of $19 million,
 $12&amp;#xA0;million and $9&amp;#xA0;million, respectively.&lt;/font&gt;&lt;/p&gt;
 &lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"&gt;
 &amp;#xA0;&lt;/p&gt;
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