Document:

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                                                                 EXHIBIT 10.47.3

                       THIRD AMENDMENT TO CREDIT AGREEMENT

        THIS THIRD AMENDMENT TO CREDIT AGREEMENT ("Amendment") is entered into
as of April 7, 2001, by and among WESTERN DIGITAL TECHNOLOGIES, INC., a Delaware
corporation formerly known as Western Digital Corporation ("Borrower"), the
other Credit Parties party hereto, the lenders signatory hereto (each
individually a "Lender" and collectively the "Lenders"), GENERAL ELECTRIC
CAPITAL CORPORATION, as administrative agent for Lenders (in such capacity,
"Agent"), and BANK OF AMERICA, N.A., as documentation agent for Lenders
("Documentation Agent"; Agent and Documentation Agent are collectively referred
to as "Co-Agents" and each, a "Co-Agent").

                                    RECITALS

        A. Borrower, the other Credit Parties party thereto, Lenders, and
Co-Agents have entered into the Credit Agreement dated as of September 20, 2000,
as amended by the First Amendment to Credit Agreement dated as of March 8, 2001,
and the Second Amendment to Credit Agreement dated as of March 23, 2001
(collectively, "Credit Agreement"), pursuant to which Co- Agents and Lenders are
providing financial accommodations to or for the benefit of Borrower upon the
terms and conditions contained therein. Unless otherwise defined herein,
capitalized terms or matters of construction defined or established in Annex A
to the Credit Agreement shall be applied herein as defined or established
therein.

        B. Borrower has requested in the letter attached hereto as Appendix A
that Co-Agent and Lenders make certain amendments to, and consent to certain
matters under, the Credit Agreement and other Loan Documents, and Co-Agent and
Lenders are willing to do so subject to the terms and conditions of this
Amendment.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the continued performance by
Borrower and each other Credit Party of their respective promises and
obligations under the Credit Agreement and the other Loan Documents, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Borrower, the other Credit Parties signatory hereto,
Lenders, and Co-Agents hereby agree as follows:

        1. Ratification and Incorporation of Credit Agreement and Other Loan
Documents. Except as expressly modified under this Amendment, (a) each Credit
Party hereby acknowledges, confirms, and ratifies all of the terms and
conditions set forth in, and all of its obligations under, the Credit Agreement,
and (b) all of the terms and conditions set forth in the Credit Agreement are
incorporated herein by this reference as if set forth in full herein.

        2. Amendments to Credit Agreement. The Credit Agreement and other Loan
Documents are hereby amended as follows:

            (a) Section 5.4(c) of the Credit Agreement is amended by deleting
each reference to "Guarantor" and substituting "Guarantor (other than Holdings)"
in lieu thereof.

<PAGE>   2

            (b) Section 6.14 of the Credit Agreement is amended by (i) deleting
the "and" immediately preceding clause (e) thereof, (ii) replacing the period at
the end thereof with ", and" and (iii) adding the following new clause (f) at
the end thereof:

                (f) dividends or other distributions made by Borrower to
            Holdings out of legally available funds to enable Holdings to pay
            its reasonable legal, accounting and operational expenses incurred
            in the ordinary course in an aggregate amount not to exceed $750,000
            in any Fiscal Year.

            (c) Section 9.8 of the Credit Agreement is amended by deleting each
reference to "Guarantor" and substituting "Guarantor (other than Holdings)" in
lieu thereof.

            (d) The definition of "Borrower" in Annex A of the Credit Agreement
is deleted in its entirety and the following is substituted therefor:

                "Borrower" shall mean Western Digital Technologies, Inc., a
            Delaware corporation formerly known as Western Digital Corporation.

            (e) The definition of "Change of Control" in Annex A of the Credit
Agreement is deleted in its entirety and the following is substituted therefor:

                "Change of Control" means any of the following: (a) any Person
            or group of Persons (within the meaning of the Securities Exchange
            Act) shall have acquired beneficial ownership (within the meaning of
            Rule 13d-3 promulgated by the Securities and Exchange Commission
            under the Securities Exchange Act) of 20% or more of the issued and
            outstanding shares of capital Stock of Holdings having the right to
            vote for the election of directors of Holdings under ordinary
            circumstances; (b) the occurrence of a change in the composition of
            the board of directors of Holdings as a result of which fewer than a
            majority of all directors are Incumbent Directors (as defined
            below); (c) Borrower shall cease to own and control all of the
            economic and voting rights associated with all of the outstanding
            capital Stock of any of its Subsidiaries; and (d) Holdings shall
            cease to own and control all of the economic and voting rights
            associated with all of the outstanding capital Stock of Borrower.
            For purposes of this definition, "Incumbent Director" means any
            director who is either (i) a director of Holdings as of the date on
            which the Third Amendment becomes effective, or (ii) a director who
            is elected or nominated for election to the board of directors of
            Holdings with the affirmative votes of at least a majority of the
            Incumbent Directors at the time of such election or nomination (but
            shall not include any individual whose election or nomination is in
            connection with an actual or threatened proxy contest relating to
            the election of directors to Holdings).

            (f) The definition of "Excluded Subsidiaries" in Annex A of the
Credit Agreement is deleted in its entirety and the following is substituted
therefor:

                "Excluded Subsidiaries" shall mean Connex, SageTree, Pacifica,
            Cameo Technologies, Inc, a Delaware corporation formerly known as
            WDC.NET, Inc., Keen Personal Media, Inc., a Delaware corporation,
            Keen Personal Technologies,

                                        2

<PAGE>   3

            Inc., a Delaware corporation, SANavigator, Inc., a Delaware
            corporation, Western Digital Ventures, Inc., a Delaware corporation,
            WD Merger Sub, Inc., a Delaware corporation, and Targets that become
            "Excluded Subsidiaries" in accordance with the provisions of Section
            6.1.

            (g) The definition of "Financial Statements" in Annex A of the
Credit Agreement is deleted in its entirety and the following is substituted
therefor:

                "Financial Statements" shall mean the consolidated and
            consolidating income statements, statements of cash flows and
            balance sheets of Borrower or Holdings, as the case may be,
            delivered in accordance with Section 3.4 and Annex E.

            (h) The definition of "Guarantors" in Annex A of the Credit
Agreement is deleted in its entirety and the following is substituted therefor:

                "Guarantors" shall mean each of WD UK, WD IS and Holdings, and
            each other Person, if any, that executes a guaranty or other similar
            agreement in favor of Agent, for the benefit of Co-Agents and
            Lenders, in connection with the transactions contemplated by the
            Agreement and the other Loan Documents.

            (i) The definition of "Subordinated Debt" in Annex A of the Credit
Agreement is deleted in its entirety and the following is substituted therefor:

                "Subordinated Debt" shall mean the Indebtedness of Borrower and
            Holdings evidenced by the Subordinated Notes and the other
            Subordinated Debt Documents and any other Indebtedness of any Credit
            Party subordinated to the Obligations in a manner and form
            satisfactory to Co-Agents and Lenders in their sole discretion, as
            to right and time of payment and as to any other rights and remedies
            thereunder, including, in each case, any refinancing thereof
            permitted under Section 6.14.

            (j) The definition of "Subordinated Indenture" in Annex A of the
Credit Agreement is deleted in its entirety and the following is substituted
therefor:

                "Subordinated Indenture" shall mean the Indenture dated as of
            February 18, 1998, between Borrower, as Issuer, and State Street
            Bank and Trust Company of California, N.A., as Trustee, as amended
            by the First Supplemental Indenture dated as of April 6, 2001, by
            and among Borrower, Holdings, and State Street Bank and Trust
            Company of California, N.A., as Trustee.

            (k) The definition of "Subordinated Notes" in Annex A of the Credit
Agreement is deleted in its entirety and the following is substituted therefor:

                "Subordinated Notes" shall mean those certain Zero Coupon
            Convertible Subordinated Debentures due 2018, issued by Borrower in
            an aggregate original principal amount of $1,297,200,000.

                                                       3

<PAGE>   4

            (l) The following new definitions are added to Annex A of the Credit
Agreement in appropriate alphabetical order:

                "Holdings" shall mean Western Digital Corporation, a Delaware
            corporation formerly known as Western Digital Holdings, Inc.

                "Third Amendment" means the Third Amendment to Credit Agreement
            dated as of April 7, 2001.

            (m) Annex C of the Credit Agreement is amended by (i) deleting each
reference to "Guarantor" and substituting "Guarantor (other than Holdings)" in
lieu thereof, and (ii) deleting the reference to "Affiliates" and substituting
"Affiliates (other than Holdings)" in lieu thereof.

            (n) Annex E of the Credit Agreement is deleted in its entirety, and
the revised version of Annex E attached hereto as Appendix B is substituted in
lieu thereof.

            (o) Subsection (C) of Annex I of the Credit Agreement is deleted in
its entirety, and the following is substituted in lieu thereof:

                (C) If to Borrower, at

                    Western Digital Technologies, Inc.
                    20511 Lake Forest Drive
                    Lake Forest, California 92630-7741
                    Attention: Mr. Steven M. Slavin
                    Telephone: (949) 672-7000
                    Facsimile: (949) 672-5495

                    With copies to:

                    Western Digital Technologies, Inc.
                    20511 Lake Forest Drive
                    Lake Forest, California 92630-7741
                    Attention: Michael A. Cornelius, Esq., General Counsel
                    Telephone: (949) 672-7000
                    Facsimile: (949) 672-7837

            (p) Schedule 6.5 of the Credit Agreement is deleted in its entirety,
and the revised version of Schedule 6.5 attached hereto as Appendix C is
substituted in lieu thereof.

            (q) All references in the Credit Agreement or the other Loan
Documents, in each case as in effect immediately prior to the effectiveness of
this Amendment, to "Western Digital Corporation, a Delaware corporation" shall
be deleted and replaced by "Western Digital Technologies, Inc., a Delaware
corporation formerly known as Western Digital Corporation."

                                        4

<PAGE>   5

        3. Consents under Credit Agreement.

            (a) Pursuant to Section 6.5 of the Credit Agreement, Borrower is
prohibited from making any changes to its capital structure as described in
Disclosure Schedule 6.5 unless Co-Agents and Requisite Lenders have given their
prior written consent thereto. At the request of Borrower, Co-Agents and
Requisite Lenders hereby consent to Holdings entering into the First
Supplemental Indenture dated as of April 6, 2001, by and among Borrower,
Holdings, and State Street Bank and Trust Company of California, N.A., as
Trustee, and becoming a co-obligor with respect to the Subordinated Notes and
the other Subordinated Debt Documents.

            (b) Pursuant to Section 6.1 of the Credit Agreement, Borrower is
prohibited from forming or acquiring any Subsidiary (with certain exceptions)
unless Co-Agents and Requisite Lenders have given their prior written consent
thereto. At the request of Borrower, Co- Agents and Requisite Lenders hereby
consent to the formation by Borrower of Western Digital Holdings, Inc., a
Delaware corporation formerly known as The Western Digital Group, Inc., and WD
Merger Sub, Inc., a Delaware corporation.

        4. Conditions to Effectiveness. The effectiveness of this Amendment is
subject to satisfaction of each of the following conditions:

            (a) receipt by Co-Agents of this Amendment duly executed by
Borrower, each of the other Credit Parties, Co-Agents and Requisite Lenders;

            (b) receipt by Co-Agents of an original Continuing Guaranty duly
executed by Holdings and Agent;

            (c) receipt by Agent of a copy of an opinion, in form and substance
satisfactory to Agent and its counsel, prepared by Houlihan Lokey Howard & Zukin
with respect to the solvency of Borrower, after giving effect to the
consummation of the Corporate Reorganization transaction described on Disclosure
Schedule (6.5);

            (d) receipt by Agent of (i) a certificate of the Secretary of
Borrower certifying that attached to such certificate are complete and correct
copies of resolutions duly adopted by Borrower's Board of Directors that
authorize the execution and delivery of the documents necessary to effect the
Corporate Reorganization, and (ii) a certificate of the Secretary of Holdings
certifying that attached to such certificate are complete and correct copies of
resolutions duly adopted by Holdings' Board of Directors that authorize the
execution and delivery by Holding of a Continuing Guaranty, in each case in form
and substance satisfactory to Agent and its counsel;

            (e) receipt by Agent of a UCC-2 amendment with respect to each UCC-1
financing statement and fixture filing set forth in Appendix B to the Schedule
of Documents filed against Borrower, amending such financing statement to
reflect Western Digital Technologies, Inc., as debtor; and

            (f) the absence of any Defaults or Events of Default as of the date
hereof.

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<PAGE>   6

        5. Entire Agreement. This Amendment, together with the Credit Agreement
and the other Loan Documents, is the entire agreement between the parties hereto
with respect to the subject matter hereof. This Amendment supersedes all prior
and contemporaneous oral and written agreements and discussions with respect to
the subject matter hereof.

        6. Representations and Warranties. Borrower and each other Credit Party
hereby represents and warrants that the representations and warranties contained
in the Credit Agreement were true and correct in all material respects when made
and, except to the extent that (a) a particular representation or warranty by
its terms expressly applies only to an earlier date or (b) Borrower or any other
Credit Party, as applicable, has previously advised Co-Agents in writing as
contemplated under the Credit Agreement, are true and correct in all material
respects as of the date hereof.

        7. Reaffirmation by Guarantors. Each Credit Party that is also a
Guarantor, by its execution of this Amendment, consents to the terms hereof and
ratifies and reaffirms all of the provisions of the Guaranties.

        8. Miscellaneous.

            (a) Counterparts. This Amendment may be executed in identical
counterpart copies, each of which shall be an original, but all of which shall
constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Amendment by facsimile transmission shall be effective as
delivery of a manually executed counterpart thereof.

            (b) Headings. Section headings used herein are for convenience of
reference only, are not part of this Amendment, and are not to be taken into
consideration in interpreting this Amendment.

            (c) Recitals. The recitals set forth at the beginning of this
Amendment are true and correct, and such recitals are incorporated into and are
a part of this Amendment.

            (d) Effect. Upon the effectiveness of this Amendment, from and after
the date hereof, each reference in the Credit Agreement to "this Agreement,"
"hereunder," "hereof," or words of like import shall mean and be a reference to
the Credit Agreement as amended hereby and each reference in the other Loan
Documents to the Credit Agreement, "thereunder," "thereof," or words of like
import shall mean and be a reference to the Credit Agreement as amended hereby.

            (e) No Novation. Except as expressly provided in Sections 2 and 3 of
this Amendment, the execution, delivery, and effectiveness of this Amendment
shall not (i) limit, impair, constitute a waiver of, or otherwise affect any
right, power, or remedy of Co-Agents or any Lender under the Credit Agreement or
any other Loan Document, (ii) constitute a waiver of any provision in the Credit
Agreement or in any of the other Loan Documents, or (iii) alter, modify, amend,
or in any way affect any of the terms, conditions, obligations, covenants, or
agreements contained in the Credit Agreement or any other Loan Document, all of
which are ratified and affirmed in all respects and shall continue in full force
and effect.

            (f) Conflict of Terms. In the event of any inconsistency between the
provisions of this Amendment and any provision of the Credit Agreement, the
terms and provisions of this Amendment shall govern and control.

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<PAGE>   7

        IN WITNESS WHEREOF, this Third Amendment to Credit Agreement has been
duly executed as of the date first written above.

                                           GENERAL ELECTRIC CAPITAL CORPORATION,
                                           as Administrative Agent and a Lender

                                           By: /s/ ROBERT S. YASUDA
                                               ---------------------------------
                                               Robert S. Yasuda
                                               Duly Authorized Signatory

                                           BANK OF AMERICA, N.A.,
                                           as Documentation Agent and a Lender

                                           By: /s/ STEPHEN E. ROSSI
                                               ---------------------------------
                                           Name: Stephen E. Rossi
                                                 -------------------------------
                                           Title: AVP
                                                  ------------------------------

                                           THE CIT GROUP/BUSINESS CREDIT, INC.,
                                           as a Lender

                                           By: /s/ DALE GEORGE
                                               ---------------------------------
                                           Name: Dale George
                                                 -------------------------------
                                           Title: Vice President
                                                  ------------------------------

                                           By: /s/ STEVEN M. SLAVIN
                                               ---------------------------------
                                           Name: Steven M. Slavin
                                                 -------------------------------
                                           Title: Vice President, Taxes &
                                                  Treasurer
                                                  ------------------------------

                    [Signatures Continued on Following Page]

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<PAGE>   8

                                           WESTERN DIGITAL (U.K.), LTD., a
                                           corporation organized under the laws
                                           of the United Kingdom

                                           By: /s/ MICHAEL A. CORNELIUS
                                               ---------------------------------
                                           Name: Michael A. Cornelius
                                                 -------------------------------
                                           Title: Director
                                                  ------------------------------

                                           WESTERN DIGITAL (I.S.) LIMITED, a
                                           corporation organized under
                                           the laws of Ireland

                                           By: /s/ MICHAEL A. CORNELIUS
                                               ---------------------------------
                                           Name: Michael A. Cornelius
                                                 -------------------------------
                                           Title: Director
                                                  ------------------------------

                                       8<PAGE>   1
                                                                   EXHIBIT 10.48

                               CONTINUING GUARANTY

        THIS CONTINUING GUARANTY (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "Guaranty") dated as
of April 7, 2001, is made by WESTERN DIGITAL CORPORATION, a Delaware corporation
formerly known as Western Digital Holdings, Inc. ("Guarantor"), in favor of
GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation, as administrative
agent (in such capacity, "Administrative Agent" or "Agent") for the lenders
("Lenders") from time to time parties to the Credit Agreement (as defined
below).

                                    RECITALS

        A. Western Digital Technologies, Inc., a Delaware corporation formerly
known as Western Digital Corporation ("Borrower"), the other Credit Parties
party thereto, Agent, Bank of America, N.A., as documentation agent for Lenders
("Documentation Agent"; Administrative Agent and Documentation Agent are
collectively referred to as "Co-Agents" and each, a "Co-Agent"), and Lenders
have entered into that certain Credit Agreement dated as of September 20, 2000,
as amended by the First Amendment to Credit Agreement dated as of March 8, 2001,
the Second Amendment to Credit Agreement dated as of March 23, 2001, and the
Third Amendment to Credit Agreement of even date herewith (collectively, "Credit
Agreement"), pursuant to which Co-Agents and Lenders are providing financial
accommodations to or for the benefit of Borrower upon the terms and conditions
contained therein.

        B. Guarantor is the record and beneficial holder of all of the shares of
stock of Borrower and as such derives direct and indirect economic benefits from
the financial accommodations provided to Borrower pursuant to the Credit
Agreement.

        C. Borrower previously requested certain amendments to the Credit
Agreement and Requisite Lenders' consent to certain changes in Borrower's and
Credit Parties' capital structure in connection with the Corporate
Reorganization (as defined in the Credit Agreement).

        D. Co-Agents are concurrently herewith entering into the Third Amendment
to Credit Agreement of even date herewith, but only upon the condition, among
others, that Guarantor shall have executed and delivered this Guaranty.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Guarantor and Agent
agree as follows:

1. DEFINED TERMS; CERTAIN MATTERS OF CONSTRUCTION.

        Unless otherwise defined herein, capitalized terms or matters of
construction defined or established in Annex A to the Credit Agreement shall be
applied herein as defined or established therein.

<PAGE>   2

2. THE GUARANTY.

        2.1 Guaranty of Guaranteed Obligations. Guarantor hereby unconditionally
guarantees to Agent, for the benefit of Co-Agents and Lenders, and any of their
respective successors, endorsees, transferees and assignees, the prompt payment
(whether at stated maturity, by acceleration or otherwise) and performance of
the Obligations of Borrower (such Obligations of Borrower hereinafter the
"Guaranteed Obligations"). Guarantor agrees that this Guaranty is a guaranty of
payment and performance and not of collection, and that its Obligations under
this Guaranty shall be primary, absolute and unconditional, irrespective of, and
unaffected by:

            (a) the genuineness, validity, regularity, enforceability or any
        future amendment of or change in this Guaranty, any other Loan Document
        or any other agreement, document or Instrument to which Guarantor or any
        Credit Party is or may become a party;

            (b) the absence of any action to enforce this Guaranty or any other
        Loan Document or the waiver or consent by any Co-Agent or any Lender
        with respect to any of the provisions thereof;

            (c) the existence, value or condition of, or the failure to perfect
        Agent's Lien (for the benefit of Co-Agents and Lenders) against, any
        Collateral for the Obligations or any action, or the absence of any
        action, by Agent in respect thereof (including the release of any such
        Collateral);

            (d) the insolvency of any Credit Party; or

            (e) any other action or circumstance that might otherwise constitute
        a legal or equitable discharge or defense of a surety or guarantor;

it being agreed by Guarantor that its Obligations under this Guaranty shall not
be discharged until the Termination Date. Guarantor shall be regarded, and shall
be in the same position, as a principal obligor with respect to the Guaranteed
Obligations. Guarantor agrees that any notice or directive given at any time to
Agent that is inconsistent with the waiver in the immediately preceding sentence
shall be null and void and may be ignored by Co-Agents and Lenders, and, in
addition, may not be pleaded or introduced as evidence in any litigation
relating to this Guaranty for the reason that such pleading or introduction
would be at variance with the written terms of this Guaranty, unless Co- Agents
and Lenders have specifically agreed otherwise in writing. Guarantor and Agent
acknowledge and agree that the foregoing waivers are of the essence of the
transaction contemplated by the Loan Documents and that, but for this Guaranty
and such waivers, Co-Agents and Lenders would decline to enter into the Third
Amendment.

        2.2 Demand by Agent. In addition to the terms of the Guaranty set forth
in Section 2.1, and in no manner imposing any limitation on such terms, it is
expressly understood and agreed that if, at any time, any of the Guaranteed
Obligations are declared to be immediately due and payable, then Guarantor
shall, without demand, pay to the holders of the Guaranteed Obligations the
entire outstanding amount of the Guaranteed Obligations to Agent, for the
benefit of Co-Agents and Lenders. Payment by Guarantor shall be made to Agent,
for the benefit of Co-Agents and Lenders, in immediately available funds in
Dollars to an account designated by Agent or at the address set

                                        2

<PAGE>   3

forth herein for the giving of notice to Agent or at any other address that may
be specified in writing from time to time by Agent, and shall be credited and
applied to the Guaranteed Obligations.

        2.3 Enforcement of Guaranty. Agent shall have no obligation to proceed
against Borrower or any Credit Party or any Collateral pledged to secure the
Guaranteed Obligations (although it may, at its option, so proceed) before
seeking satisfaction from Guarantor, and Agent may proceed, prior or subsequent
to, or simultaneously with, the enforcement of Agent's rights hereunder, to
exercise any right or remedy that it may have (for the benefit of Co-Agents and
Lenders) against any Collateral as a result of any Lien it may have (for the
benefit of Co-Agents and Lenders) as security for all or any portion of the
Guaranteed Obligations. Notwithstanding anything to the contrary contained
herein or in the other Loan Documents, this Guaranty does not constitute a
pledge or security agreement and Guarantor's execution and delivery of this
Guaranty does not grant Co-Agents and Lenders any Lien in any property or other
collateral, including the capital Stock of Borrower, now or hereafter belonging
to Guarantor.

        2.4 Waiver. In addition to any other waivers contained in this Guaranty,
Guarantor waives, and agrees that it shall not at any time insist upon, plead or
in any other manner claim or take the benefit or advantage of, any appraisal,
valuation, stay, extension, marshaling of assets or redemption laws, or
exemption, whether now or at any time hereafter in force, that may delay,
prevent or otherwise affect the performance by Guarantor of its Obligations
under, or the enforcement by Agent, for the benefit of Co-Agents and Lenders,
of, this Guaranty. Guarantor hereby waives diligence, presentment and demand
(whether for non-payment or protest or of acceptance, maturity, extension of
time, change in nature or form of the Obligations, acceptance of further
security, release of further security, composition or agreement arrived at as to
the amount of, or the terms of, the Guaranteed Obligations, notice of adverse
change in Borrower's financial condition or any other fact that might increase
the risk to Guarantor) with respect to any of the Obligations or all other
demands whatsoever and waives the benefit of all provisions of law that are or
might be in conflict with the terms of this Guaranty.

        2.5 Benefit of Guaranty. The provisions of this Guaranty are for the
benefit of Co-Agents, Lenders and their respective successors, transferees,
endorsees and assigns, and nothing herein contained shall impair, as between any
Credit Party, on the one hand, and Co-Agents and Lenders, on the other hand, the
Obligations of any Credit Party under the Loan Documents. This Guaranty binds
Guarantor and Guarantor shall not assign, transfer, or endorse this Guaranty. In
the event all or any part of the Guaranteed Obligations are transferred,
indorsed or assigned by Agent or any Lender to any Person or Persons, any
reference to "Agent" or "Lender" herein shall be deemed to refer equally to such
Person or Persons.

        2.6 Modification of Guaranteed Obligations. Guarantor hereby
acknowledges and agrees that Agent, for the benefit of Co-Agents and Lenders,
may at any time or from time to time, with or without the consent of, or notice
to, Guarantor:

            (a) change or extend the manner, place or terms of payment of, or
        renew or alter all or any portion of, the Guaranteed Obligations;

            (b) take any action under or in respect of the Loan Documents in the
        exercise of any remedy, power or privilege contained therein or
        available to it at law, in equity or otherwise, or waive or refrain from
        exercising any such remedies, powers or privileges;

                                        3

<PAGE>   4

            (c) amend or modify, in any manner whatsoever, any of the Loan
        Documents;

            (d) extend or waive the time for any Credit Party's performance of,
        or compliance with, any term, covenant or agreement on its part to be
        performed or observed under any of the Loan Documents, or waive such
        performance or compliance or consent to a failure of, or departure from,
        such performance or compliance;

            (e) take and hold Collateral for the payment of the Guaranteed
        Obligations guaranteed hereby or sell, exchange, release, dispose of, or
        otherwise deal with, any property pledged, mortgaged or conveyed, or in
        which Agent, for the benefit of Co-Agents and Lenders, has been granted
        a Lien, to secure any Obligations, in each case as permitted by the Loan
        Documents;

            (f) release any Person who may be liable in any manner for the
        payment of any amounts owed by Guarantor or any Credit Party to any
        Co-Agent or any Lender;

            (g) modify or terminate the terms of any intercreditor or
        subordination agreement pursuant to which claims of other creditors of
        Guarantor or any Credit Party are subordinated to the claims of any
        Co-Agent or any Lender; or

            (h) apply any sums paid by any Person and realized in any manner to
        any amounts owing by Guarantor or any Credit Party to any Co-Agent or
        any Lender in the manner provided in the Credit Agreement;

and Guarantor acknowledges and agrees that neither any Co-Agent nor any Lender
shall incur any liability to Guarantor as a result of any of the foregoing, and
no such action shall impair or release the Obligations of Guarantor.

        2.7 Reinstatement. This Guaranty shall remain in full force and effect
and continue to be effective should any petition be filed by or against
Guarantor or any Credit Party for liquidation or reorganization, should
Guarantor or any Credit Party become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of Guarantor's or such Credit Party's assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Guaranteed Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any Co-Agent or any Lender, whether as a "voidable
preference," "fraudulent transfer," or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Guaranteed Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

                                       4

<PAGE>   5

        2.8 Deferral of Subrogation, Etc. Notwithstanding anything to the
contrary in this Guaranty, or in any other Loan Document, Guarantor hereby:

            (a) expressly and irrevocably waives, on behalf of itself and its
        successors and assigns (including any surety) until the Termination
        Date, any and all rights at law or in equity to subrogation, to
        reimbursement, to exoneration, to contribution, to indemnification, to
        setoff or to any other rights that could accrue to a surety against a
        principal, to a guarantor against a principal, to a guarantor against a
        maker or obligor, to an accommodation party against the party
        accommodated, to a holder or transferee against a maker, or to the
        holder of any claim against any Person and that Guarantor may have or
        hereafter acquire against any Credit Party in connection with or as a
        result of Guarantor's execution, delivery or performance of this
        Guaranty, or any other documents to which Guarantor is a party or
        otherwise; and

            (b) acknowledges and agrees that (i) this waiver is intended to
        benefit Co-Agents and Lenders and shall not limit or otherwise affect
        Guarantor's liability hereunder or the enforceability of this Guaranty,
        and (ii) Co-Agents and Lenders and their respective successors and
        assigns are intended third party beneficiaries of the waivers and
        agreements set forth in this Section 2.8 and their rights under this
        Section 2.8 shall survive payment in full of the Guaranteed Obligations.

        2.9 Election of Remedies. If Agent may, under applicable law, proceed to
realize benefits under any of the Loan Documents giving Agent a Lien (for the
benefit of Co-Agents and Lenders) upon any Collateral owned by any Credit Party,
either by judicial foreclosure or by nonjudicial sale or enforcement, then Agent
may, at its sole option, determine which of its remedies or rights it may pursue
without affecting any of such rights and remedies under this Guaranty. If, in
the exercise of any of its rights and remedies, Agent shall forfeit any of its
rights or remedies, including its right to enter a deficiency judgment against
any Credit Party, whether because of any applicable laws pertaining to "election
of remedies" or the like, Guarantor hereby consents to such action by Agent and
waives any claim based upon such action, even if such action by Agent shall
result in a full or partial loss of any rights of subrogation that Guarantor
might otherwise have had but for such action by Agent. Any election of remedies
that results in the denial or impairment of the right of Agent to seek a
deficiency judgment against any Credit Party shall not impair Guarantor's
obligation to pay the full amount of the Guaranteed Obligations, subject to
Section 11. In the event Agent shall bid at any foreclosure or trustee's sale or
at any private sale permitted by law or the Loan Documents, Agent may bid all or
less than the amount of the Guaranteed Obligations and the amount of such bid
need not be paid by Agent but shall be credited against the Guaranteed
Obligations. The amount of the successful bid at any such sale shall be
conclusively deemed to be the fair market value of the collateral and the
difference between such bid amount and the remaining balance of the Guaranteed
Obligations shall be conclusively deemed to be the amount of the Guaranteed
Obligations guaranteed under this Guaranty, notwithstanding that any present or
future law or court decision or ruling may have the effect of reducing the
amount of any deficiency claim to which Co-Agents and Lenders might otherwise be
entitled but for such bidding at any such sale.

                                        5

<PAGE>   6

        2.10 Subordination.

            (a) Guarantor hereby agrees that, until the Termination Date, all
        obligations and all indebtedness of Borrower to Guarantor, including any
        and all present and future indebtedness regardless of its nature or
        manner of origination now or hereafter to become due and owing by
        Borrower to Guarantor (collectively, the "Subordinated Indebtedness"),
        are hereby subordinated and postponed and shall be inferior, in all
        respects, to the Obligations.

            (b) In no circumstance shall any Subordinated Indebtedness be
        entitled to any collateral security; provided, that in the event any
        such collateral security exists, Guarantor hereby agrees that any now
        existing or hereafter arising Lien upon any of the assets of Borrower in
        favor of Guarantor, whether created by contract, assignment,
        subrogation, reimbursement, indemnity, operation of law, principles of
        equity or otherwise, shall be junior and inferior to, and is hereby
        subordinated in priority to any now existing or hereafter arising Liens
        in favor of Agent, for the benefit of Co-Agents and Lenders, in and
        against the Collateral, regardless of the time, manner or order of
        creation, attachment or perfection of the respective Liens.

            (c) Except as expressly permitted in the Credit Agreement, Guarantor
        hereby agrees that it shall not assert, collect, accept payment on or
        enforce any of the Subordinated Indebtedness or take collateral or other
        security to secure payment of the Subordinated Indebtedness until the
        Termination Date. Guarantor shall not demand payment of, accelerate the
        maturity of, or declare a default or event of default under the
        Subordinated Indebtedness until the Termination Date. Except as
        expressly permitted in the Credit Agreement, Guarantor shall not cause
        or permit Borrower to make or give, and Guarantor shall not receive or
        accept, payment in any form (whether direct or indirect, including by
        transfer to an Affiliate or Subsidiary of Borrower or Guarantor) on
        account of the Subordinated Indebtedness, make any transfers in respect
        of the Subordinated Indebtedness without the express prior written
        consent of Agent (which consent may be withheld for any reason in
        Agent's sole discretion), or give any collateral security for the
        Subordinated Indebtedness. Any payment, transfer, or collateral security
        so made or given by Borrower and received or accepted by Guarantor,
        without the express prior written consent of Agent, shall be held in
        trust by Guarantor for the account of Agent (for the benefit of
        Co-Agents and Lenders), and Guarantor shall immediately turn over, in
        kind, any such payment to Agent for application in reduction of, or (in
        the case of property other than cash) as security for, the Obligations
        of Guarantor hereunder.

3. REPRESENTATIONS AND WARRANTIES.

        Guarantor makes the following representations and warranties to
Co-Agents and Lenders, each and all of which shall survive the execution and
delivery of this Guaranty:

        3.1 Corporate Existence; Compliance with Law. Guarantor (i) is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation; (ii) is duly qualified to do business and
is in good standing under the laws of each jurisdiction where its ownership or
lease of property or the conduct of its business requires such qualification,
except where the failure to be so qualified would not result in exposure to
losses, damages or liabilities in excess of $100,000; (iii) has the requisite
corporate power and authority and the legal right to own, pledge, mortgage and
operate its properties, to lease the property it operates under lease, and to
conduct its business as now, heretofore and proposed to be conducted; (iv) has
all licenses, permits, consents or approvals from or by, and has made all
material filings with, and has given all notices to, all Governmental
Authorities having jurisdiction, to the extent required for such ownership,

                                        6

<PAGE>   7

operation and conduct; (v) is in compliance with its charter and by-laws; and
(vi) is in compliance with all applicable provisions of law, except where the
failure to comply, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect (as defined below). As used herein,
"Material Adverse Effect" shall mean a material adverse effect on (a) the
business, assets, operations or financial condition of Guarantor and its
Subsidiaries considered as a whole, (b) Guarantor's ability to pay any of the
Guaranteed Obligations in accordance with the terms of this Guaranty, or (c) any
Co-Agent's or any Lender's rights and remedies under this Guaranty and the other
Loan Documents.

        3.2 Executive Offices. Guarantor's executive office and principal place
of business are as set forth in Schedule I hereto.

        3.3 Corporate Power; Authorization; Enforceable Guaranteed Obligations.
The execution, delivery and performance of this Guaranty are within Guarantor's
corporate power, have been duly authorized by all necessary or proper corporate
action, including the consent of stockholders where required, are not in
contravention of any provision of Guarantor's charter or by-laws, do not violate
any law or regulation, or any order or decree of any Governmental Authority
(each, a "Requirement of Law"), do not conflict with or result in the breach of,
or constitute a default under, or accelerate or permit the acceleration of any
performance required by, any indenture, mortgage, deed of trust, lease,
agreement, or other instrument to which Guarantor is a party or by which
Guarantor or any of its property is bound (each, a "Contractual Obligation"), do
not result in the creation or imposition of any Lien upon any of the property of
Guarantor, and the same do not require the consent or approval of any
Governmental Authority or any other Person. This Guaranty shall have been duly
executed and delivered for the benefit of or on behalf of Guarantor, and shall
then constitute a legal, valid and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms.

        3.4 Solvency. Guarantor is Solvent.

        3.5 No Setoff, Defense, or Counterclaim. The Guaranteed Obligations are
not subject to any setoff or defense of any kind against Agent, any Lender or
Borrower, and Guarantor specifically waives its right to assert any such defense
or right of setoff. The Guaranteed Obligations shall not be subject to any
counterclaims, setoffs, or defenses against Agent, any Lender or any Credit
Party that may arise in the future, except for (a) any defense of prior
performance or payment based on the occurrence of the Termination Date, or (b)
any defense based on any applicable provision of the Code requiring that the
Collateral be disposed of in a commercially reasonable manner that Guarantor or
any Credit Party may have or assert.

        3.6 Payment of Taxes. Guarantor has paid all Taxes imposed by any
Governmental Authority due and payable by Guarantor other than those that are
being contested in good faith by appropriate proceedings and for which (i)
adequate reserves have been established in accordance with GAAP, (ii) no Lien
shall be imposed on the assets of Guarantor to secure payment of such Taxes or
claims and such contest is maintained and prosecuted continuously and with
diligence and operates to suspend collection or enforcement of suchTaxes or
claims, (iii) none of the assets of Guarantor become subject to forfeiture or
loss as a result of such contest (other than cash used to pay such Taxes or
claims), and (iv) Guarantor shall promptly pay or discharge such contested Taxes
or claims and all additional charges, interest, penalties and expenses, if any,
and shall deliver to Co-Agents evidence acceptable to each Co-Agent of such
compliance, payment or discharge, if such contest is terminated or discontinued
adversely to Guarantor or the conditions set forth in this Section 3.6 are no
longer met.

                                        7

<PAGE>   8

        3.7 No Violation. Guarantor is not in violation of any Requirement of
Law or Contractual Obligation, except where such violation, individually or in
the aggregate, could not be reasonably be expected to have a Material Adverse
Effect.

        3.8 Litigation. No litigation, investigation or proceeding of any
Governmental Authority is pending or, to the knowledge of Guarantor, threatened
against Guarantor.

4. NEGATIVE COVENANT

        Without the prior written consent of Co-Agents and the Requisite
Lenders, from and after the date hereof until the Termination Date, Guarantor
shall not (a) sell, transfer, convey, assign or otherwise dispose of, or (b)
create, incur, assume or permit to exist any Lien on, its capital Stock of
Borrower.

5. FURTHER ASSURANCES.

        Guarantor agrees, upon the written request of Agent, to execute and
deliver to Agent, from time to time, any additional Instruments or documents
reasonably considered necessary by Agent to cause this Guaranty to be, become or
remain valid and effective in accordance with its terms.

6. PAYMENTS FREE AND CLEAR OF TAXES.

        All payments required to be made by Guarantor hereunder shall be made to
Agent, for the benefit of Co-Agents and Lenders, free and clear of, and without
deduction for, any and all present or future Taxes. If Guarantor shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder, (a) the sum payable shall be increased as much as shall be necessary
so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 6) Co-Agents or Lenders, as
applicable, receives an amount equal to the sum it would have received had no
such deductions been made, (b) Guarantor shall make such deductions, and (c)
Guarantor shall pay the full amount deducted to the relevant taxing or other
authority in accordance with applicable law. Within 30 days after the date of
any payment of Taxes, Guarantor shall furnish to Agent the original or a
certified copy of a receipt evidencing payment thereof. Guarantor shall
indemnify and, within ten (10) days of demand therefor, pay Agent, for the
benefit of Co-Agents and Lenders, for the full amount of Taxes (including any
Taxes imposed by any jurisdiction on amounts payable under this Section 6) paid
by Co-Agents or Lenders, as appropriate, with respect to any sum payable by
Guarantor to Agent under this Guaranty or any other Loan Document, and any
liability (including penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Taxes were correctly or legally asserted.

                                       8

<PAGE>   9

7. APPLICATION OF PAYMENTS.

        Any payment made by Guarantor under this Guaranty shall be applied by
Agent first, to the satisfaction of Guarantor's indemnification liabilities
pursuant to Section 8, and then, in the order of priorities set forth in Section
1.11 of the Credit Agreement, subject in all cases to the limitations of Section
11.

8. INDEMNIFICATION.

        Guarantor shall indemnify and hold harmless each Co-Agent, each Lender,
and their respective Affiliates, and each such Person's respective officers,
directors, employees, attorneys, agents and representatives (each, an
"Indemnified Person"), from and against any and all suits, actions, proceedings,
claims, damages, losses, liabilities and expenses (including reasonable
attorneys' fees and disbursements and other costs of investigation or defense,
including those incurred upon any appeal) that may be instituted or asserted
against or incurred by any such Indemnified Person in connection with or arising
out of this Guaranty and the other Loan Documents and the transactions
contemplated hereunder and thereunder and any actions or failures to act in
connection therewith (collectively, "Indemnified Liabilities"); provided, that,
Guarantor shall not be liable for any indemnification to an Indemnified Person
to the extent that any such suit, action, proceeding, claim, damage, loss,
liability or expense results solely from (A) such Indemnified Person's gross
negligence or willful misconduct, as finally determined by a court of competent
jurisdiction, or (B) disputes among Co-Agents and Lenders that are not caused by
any action or inaction of Guarantor or any Credit Party. The liabilities of
Guarantor under this Section 8 shall survive the termination of this Guaranty,
subject to the limitations of Section 11.

9. ADDITIONAL WAIVERS.

        9.1 Guarantor waives any and all rights of subrogation, reimbursement,
indemnification, and contribution and any other rights and defenses that are or
may become available to Guarantor by reason of California Civil Code Sections
2787 to 2855, inclusive, Sections 2899 and 3433, or other statutory or
decisional law. This means, among other things, that:

            (a) Guarantor waives and will be unable to raise any defense based
upon any statute or rule of law that provides that the obligation of a surety
must be neither larger in amount nor in any other respects more burdensome than
that of a principal;

            (b) Guarantor waives and will be unable to raise any defense based
upon any statute or rule of law that provides that a creditor may be required to
pursue the principal obligor or the security for the principal obligation before
seeking enforcement against a surety or security pledged by the surety;

            (c) Guarantor waives and will be unable to raise any defense based
upon any statute or rule of law that provides that a surety's obligations may be
limited or exonerated by reason of the creditor's alteration of the principal
obligation or of another surety, or by reason of the impairment or suspension of
the creditor's rights or remedies against the principal, another surety, or any
security given for the principal obligation or given for other sureties;

            (d) Guarantor waives and will be unable to claim any right to
participate in, or the benefit of, any security given for the principal
obligation now or hereafter held by Agent; and

            (e) Subject to Section 2.8, Guarantor waives and will be unable to
claim any right of subrogation and any right to enforce any remedy that Agent
may have against Borrower.

                                        9

<PAGE>   10

        9.2 Guarantor waives any defense based upon any lack of authority of the
officers, directors, partners or agents acting or purporting to act on behalf of
Borrower or any principal of Borrower or any legal disability or defect in the
formation of Borrower.

        9.3 Guarantor waives any defense based upon the application by Borrower
of the proceeds of the Loans for purposes other than the purposes represented by
such Borrower to Agent or intended or understood by Agent or Guarantor.

        9.4 Guarantor waives the benefit of any statute of limitations affecting
the liability of Guarantor hereunder or the enforcement hereof, and Guarantor
further agrees that any act or event that tolls any statute of limitations
applicable to the Obligations of Borrower shall similarly operate to toll the
statute of limitations applicable to Guarantor's liability hereunder.

10. OTHER TERMS.

        10.1 Entire Agreement. This Guaranty, together with the other Loan
Documents, constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersedes all prior agreements relating to a
guaranty of the loans and advances under the Loan Documents or the Guaranteed
Obligations.

        10.2 Headings. The headings in this Guaranty are for convenience of
reference only and are not part of the substance of this Guaranty.

        10.3 Recitals. The recitals hereto shall be construed as a part of this
Guaranty.

        10.4 Severability. Whenever possible, each provision of this Guaranty
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Guaranty.

                                       10

<PAGE>   11

        10.5 Notices. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give or
serve upon any other party any communication with respect to this Guaranty, each
such notice, demand, request, consent, approval, declaration or other
communication shall be in writing and shall be given in the manner, and deemed
received, as provided for in the Credit Agreement, and such notice, demand,
request, consent, approval, declaration or other communication shall be served,
given or delivered to the following addresses:

        Agent:          General Electric Capital Corporation
                        350 South Beverly Drive, Suite 200
                        Beverly Hills, California  90212
                        Attention: Account Manager (Western Digital)
                        Telephone: (310) 203-0335
                        Facsimile: (310) 785-0644

        With copies to: General Electric Capital Corporation
                        201 High Ridge Road
                        Stamford, Connecticut 06927-5100
                        Attention: Corporate Counsel
                        Facsimile: (203) 316-7822
                        Telephone: (203) 316-7500

                        Murphy Sheneman Julian & Rogers
                        2049 Century Park East, Suite 2100
                        Los Angeles, California  90067
                        Attention: Gary B. Rosenbaum, Esq.
                        Facsimile: (310) 788-3777
                        Telephone: (310) 788-3700

        Guarantor:      Western Digital Corporation
                        20511 Lake Forest Drive
                        Lake Forest, California 92630-7741
                        Attention: Mr. Steven M. Slavin
                        Telephone: (949) 672-7000
                        Facsimile: (949) 672-5495

        With copies to: Western Digital Corporation
                        20511 Lake Forest Drive
                        Lake Forest, California 92630-7741
                        Attention: Michael A. Cornelius, Esq., General Counsel
                        Telephone: (949) 672-7000
                        Facsimile: (949) 672-7837

        10.6 Successors and Assigns. This Guaranty and all obligations of
Guarantor hereunder shall be binding upon the successors and assigns of
Guarantor (including a trustee or debtor-in-possession on behalf of Guarantor)
and shall, together with the rights and remedies of Agent, for the benefit of
Co-Agents and Lenders, hereunder, inure to the benefit of Co-Agents and Lenders,
all future holders of any Instrument evidencing any of the Obligations and their
respective successors and assigns. No sales of participations, other sales,
assignments, transfers or other dispositions of any agreement governing or
Instrument evidencing the Obligations or any portion thereof or interest therein
shall in any manner affect the rights of Co-Agents and Lenders hereunder.
Guarantor shall not assign, sell, hypothecate or otherwise transfer any interest
in or obligation under this Guaranty.

                                       11
<PAGE>   12

        10.7 No Waiver; Cumulative Remedies; Amendments. Neither any Co-Agent
nor any Lender shall by any act, delay, omission or otherwise be deemed to have
waived any of its rights or remedies hereunder, and no waiver shall be valid
unless in writing, signed by Agent and then only to the extent therein set
forth. A waiver by Agent, for the benefit of Co-Agents and Lenders, of any right
or remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that Agent would otherwise have had on any future occasion. No
failure to exercise nor any delay in exercising on the part of any Co-Agent or
any Lender any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or future exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently
and are not exclusive of any rights and remedies provided by law. None of the
terms or provisions of this Guaranty may be waived, altered, modified,
supplemented or amended except by an instrument in writing duly executed by
Agent and Guarantor.

        10.8 Termination. This Guaranty is a continuing guaranty and shall
remain in full force and effect until, and shall automatically expire upon, the
Termination Date, subject to Section 2.7. Upon payment and performance in full
of the Guaranteed Obligations, Agent shall deliver to Guarantor such documents
as Guarantor may reasonably request to evidence such termination.

        10.9 Counterparts. This Guaranty may be executed in any number of
counterparts, each of which shall collectively and separately constitute one and
the same agreement. Delivery of an executed signature page to this Guaranty by
facsimile transmission shall be effective as delivery of a manually executed
counterpart thereof.

        10.10 GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE.

        EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN
ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
THIS GUARANTY AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT
REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA. GUARANTY HEREBY CONSENTS AND AGREES THAT THE STATE OR
FEDERAL COURTS LOCATED IN LOS ANGELES COUNTY, CITY OF LOS ANGELES, CALIFORNIA,
SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES
BETWEEN GUARANTOR, CO-AGENTS AND LENDERS PERTAINING TO THIS GUARANTY OR ANY OF
THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS
GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT CO-AGENTS, LENDERS
AND GUARANTOR ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
HEARD BY A COURT LOCATED OUTSIDE OF LOS ANGELES COUNTY, CITY OF LOS ANGELES,
CALIFORNIA; PROVIDED FURTHER, THAT NOTHING IN THIS GUARANTY SHALL BE DEEMED OR
OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER

                                       12

<PAGE>   13

COURT ORDER IN FAVOR OF AGENT. GUARANTOR EXPRESSLY SUBMITS AND CONSENTS IN
ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND GUARANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW,
GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO GUARANTOR AT THE ADDRESS SET FORTH IN SECTION 10.5 AND THAT SERVICE
SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF GUARANTOR'S ACTUAL RECEIPT
THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE
PREPAID.

        10.11 WAIVER OF JURY TRIAL.

        BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND
EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY
(RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE
RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE
PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG CO-AGENTS, LENDERS AND GUARANTOR ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS OR THE
TRANSACTIONS RELATED THERETO.

11. LIMITED RECOURSE TO GUARANTOR.

        It is understood and agreed that Co-Agent's and Lenders' sole recourse
and remedy hereunder against Guarantor shall be limited to Guarantor's right,
title and interest in the capital Stock of Borrower.

                  [remainder of page intentionally left blank]

                                       13

<PAGE>   14

        IN WITNESS WHEREOF, Guarantor has executed and delivered this Continuing
Guaranty as of the date first above written.

                                           "GUARANTOR"

                                           WESTERN DIGITAL CORPORATION,
                                           a Delaware corporation formerly known
                                           as Western Digital Holdings, Inc.

                                           By: /s/ STEVEN M. SLAVIN
                                               ---------------------------------
                                           Name: Steven M. Slavin
                                                 -------------------------------
                                           Title: Vice President, Taxes &
                                                  Treasurer
                                                  ------------------------------

                                           "AGENT"

                                           GENERAL ELECTRIC CAPITAL CORPORATION

                                           By: /s/ ROBERT S. YASUDA
                                               ---------------------------------
                                               Robert S. Yasuda
                                               Duly Authorized Signatory

                                       14

<PAGE>   15

                                   SCHEDULE I

          GUARANTOR'S EXECUTIVE OFFICE AND PRINCIPAL PLACE OF BUSINESS

Western Digital Corporation
20511 Lake Forest Drive
Lake Forest, California 92630-7741

                                       15

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