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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;4. Debt&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In February&amp;#160;2008, Western Digital Technologies, Inc. (&amp;#8220;WDTI&amp;#8221;), a wholly-owned subsidiary of
   the Company, entered into a five-year Credit Agreement (&amp;#8220;Credit Facility&amp;#8221;) that provides for a $750
   million unsecured loan consisting of a $500&amp;#160;million term loan facility and a $250&amp;#160;million revolving
   credit facility. The revolving credit facility includes borrowing capacity available for letters of
   credit and for short-term borrowings referred to as swingline. In addition, WDTI may elect to
   expand the Credit Facility by up to $250&amp;#160;million if existing or new lenders provide additional term
   or revolving commitments. The $500&amp;#160;million term loan had a variable interest rate of 1.50% as of
   January&amp;#160;1, 2010 and requires sixteen quarterly principal payments, which began in June&amp;#160;2009, of
   approximately $19&amp;#160;million, $25&amp;#160;million, $31&amp;#160;million and $50&amp;#160;million per quarter for each
       four-quarter increment. As of January&amp;#160;1, 2010, WDTI had $250&amp;#160;million available for future
       borrowings on the revolving credit facility and was in compliance with all covenants.
   &lt;/div&gt;
   &lt;/div&gt;
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