<PAGE>   1
                                                               EXHIBIT 10.44

                                     AGREEMENT


      This Agreement (this "Agreement") is entered into by and between StorMedia
Incorporated, a company incorporated in Delaware, United States of America
("StorMedia-US") and its subsidiary, StorMedia International Limited, a company
incorporated in the Cayman Islands having a branch in Singapore ("SMIL")
(hereinafter collectively referred to as "StorMedia"), on the one hand and
Micropolis (S) Pte Ltd., a company incorporated in Singapore (hereinafter
referred to as "Micropolis"), on the other hand, effective as of December 17,
1996.

BACKGROUND

      A. StorMedia is in the business of designing, manufacturing and selling
thin film aluminum and glass substrate disks ("Disks") for hard disk drives and
sells such Disks to manufacturers of disk drives such as Micropolis.

      B. Micropolis wishes to secure a supply of thin film disks and to purchase
quantities of such Disks from StorMedia.

      C. Micropolis and StorMedia desire to enter into this Agreement to provide
for the establishment by SMIL of a manufacturing operation (the "Business") at
Micropolis' facility located at 5 Serangoon North Avenue 5, Singapore (the
"Facility") to produce Disks for sale solely to Micropolis.

      D. To this end, StorMedia and Micropolis further desire that SMIL have an
exclusive, nonrevocable license to use a portion of the Facility and the
non-exclusive, nonrevocable license to use certain common areas of the Facility
for StorMedia's operation of the Business without cost to SMIL. The parties
hereto also desire that Micropolis shall construct certain improvements in the
Facility also at no cost to StorMedia to enable StorMedia to operate the
Business in accordance with certain specifications provided by StorMedia.

      E. The parties acknowledge and agree that this Agreement and the parties'
obligations hereunder is conditional upon the receipt by Micropolis of a written
consent from Jurong Town Corporation ("JTC"), a body corporate incorporated
under the Jurong Town Corporation Act of Singapore, to the above arrangements
between Micropolis, as licensor of the Premises (as defined below), and SMIL, as
licensee of the Premises, as a condition of the Building Agreement (as defined
below).

      NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH
IS HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS:

                                   SECTION I.

                  ESTABLISHMENT OF THE MANUFACTURING FACILITY.
<PAGE>   2
      I.1 License to Use Premises. Throughout the term of this Agreement,
Micropolis shall grant, and SMIL shall take, a license and the authority to
enter upon the premises consisting of approximately 1704.38 square meters of
space located on the first floor of the Facility as more particularly set forth
on Exhibit A attached hereto (the "Premises") for the purposes hereinafter
mentioned. The Premises shall consist of office and manufacturing space in
addition to a receiving, shipping and storage area. SMIL shall also have the
license to use such areas and facilities within and about the Facility as are
necessary to run the Business and to have access to the Premises (the "Common
Areas"). SMIL's use of the Premises and Common Areas shall be subject to and in
accordance with the following:

            (a) Condition Precedent. The parties acknowledge that this Agreement
and their obligations hereunder is conditional upon the receipt of all necessary
governmental, regulatory and other approvals and/or consents (including, but not
limited to, the written consent from JTC referred to in Recital E above as a
condition in the Building Agreement) which may be required in connection with
the license to be granted in respect of the Premises and the arrangements made
between the parties pursuant to this Agreement, and where such approvals and/or
consents are obtained subject to any conditions (including, but not limited to,
the payment of any sub-letting, sub-licensing and/or administrative fee (if any)
by whatever name called payable by Micropolis to JTC (together with all goods
and services tax payable thereon)), that such conditions are acceptable to
Micropolis, and if they are required to be fulfilled within a certain period or
by or on a certain date, are fulfilled within such period or on or before such
date.

            (b) Use of Premises. SMIL may use the Premises only for the purposes
of installing StorMedia's Trade Fixtures (as defined below) and operating the
Business therefrom in accordance with any guidelines and/or rules and
regulations imposed by Micropolis and/or JTC to which the employees of
Micropolis are equally subject.

            (c) Operation of Business. StorMedia shall not do anything in or
about the Premises or the Facility which will cause any damage or structural
injury to the Facility or Common Area. SMIL shall not commit or permit any waste
or nuisance in or about the Premises. SMIL's use of the Common Areas shall be
subject to and in accordance with reasonable rules and regulations established
by Micropolis to which the employees of Micropolis are equally subject.

            (d) Compliance With/No Violation of Laws. StorMedia and its
employees shall comply in all respects with, and SMIL and its employees shall
not use the Premises in any manner, which violates any applicable law, statute,
ordinance, regulation, or other requirement of any governmental authority having
jurisdiction over the parties or the Premises (collectively, "Laws") or any term
or condition of the Building Agreement. Each of the parties agrees to indemnify
the other against all actions, proceedings, costs, claims or demands which may
be brought or made by reason of the failure of that party or its employees to
comply with the Laws and/or the terms and conditions of the Building Agreement.
In the event of any conflict or inconsistency between the Building

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<PAGE>   3
Agreement and this Agreement in respect of matters set out in Section 1, the
provisions of the Building Agreement shall prevail.

            (e) Vacate the Premises. Within three (3) months following the
earlier of (i) December 31, 1999, as the same may have been extended, and (ii)
the earlier termination of this Agreement pursuant to Section 3.2 hereof
(whether as result of a breach hereof by StorMedia or Micropolis), SMIL shall
vacate and surrender the Premises to Micropolis in the same condition as it
existed on the date that all of the Initial Improvements (as defined below)
shall have been installed, reasonable wear and tear, and damage by acts of God,
excepted.

            (f) No Assignment and Subletting. For the avoidance of doubt,
StorMedia shall not assign, grant a license or part with or share the possession
or occupation of the Premises or any part thereof nor permit any other party or
person by way of license or otherwise to occupy the Premises or any part thereof
without the prior written consent of Micropolis and JTC.

            (g) Building Agreement. The term "Building Agreement" shall mean the
Building Agreement dated February 28, 1995 as set forth in Exhibit B attached
hereto made between JTC of the one part and Micropolis Limited (the "Original
Lessee") of the other part pursuant to which JTC agreed to grant to the Original
Lessee the license and authority to enter upon the Facility for inter alia the
construction of the building thereon and the installation of equipment,
machinery, fixtures and fittings therein, and such expression shall, where the
context so requires, include (i) the lease (as set out in the First Schedule to
the Building Agreement) and any other documents(s) (including , but not limited
to, all supplemental lease(s), assurance(s) or document(s) of title in respect
of the Facility) to be executed between the parties thereto upon the completion
of the Facility and the satisfactory compliance by the Original Lessee of the
terms and conditions contained in the Building Agreement and references to
"Building Agreement" shall be references to such agreement as assigned by the
Original Lessee to Micropolis pursuant to the Deed of Assignment, and references
to the "Original Lessee" shall be references to Micropolis, as its assignee, and
(ii) all correspondences between JTC and Micropolis and/or the Original Lessee
and/or StorMedia in respect of the Facility and/or the Premises as applicable to
the terms of this Agreement.

            (h) Deed of Assignment. The term "Deed of Assignment" shall mean the
Deed of Assignment dated March 29, 1996 as set forth in Exhibit C attached
hereto made between Micropolis (formerly referred to as "ST Chatsworth Pte Ltd")
of the one part and the Original Lessee of the other part pursuant to which the
Original Lessee has assigned to Micropolis all its rights, title and interest
under the Building Agreement, which assignment has been consented to by JTC
subject to such stipulations, terms and conditions and covenants contained in
the Building Agreement.

            (i) Initial Improvements. The term "Initial Improvements" shall mean
those improvements described on Exhibit D attached hereto to be constructed by
Micropolis in accordance with Section 1.2(a) of this Agreement.

                                       -3-
<PAGE>   4
            (j) Trade Fixtures. The term "Trade Fixtures" shall mean all
equipment, furniture, inventory, tools and anything affixed to the Premises by
StorMedia for the purpose of conducting the Business in the Premises, which at
all times shall remain the property of and be owned by StorMedia.

      I.2 Construction of Initial Improvements, Operation of Business and
Installation and Removal of StorMedia's Trade Fixtures. The Initial Improvements
shall be constructed and paid for in accordance with the following:

            (a) Availability of Completed Premises. Micropolis will provide
floor space within the Facility with the layout shown on Exhibit A attached
hereto. This floor space will be provided at no cost to SMIL and will include
such facilitation for the clean room, warehouse and office areas as specifically
set forth in Exhibit D attached hereto. Micropolis has engaged Taiki-sha Ltd. to
construct the aforesaid floor space in accordance with specifications provided
by SMIL, and Micropolis has agreed to bear the costs and expenses in respect
thereof as set out, in the letter dated ___________, 1996 from Taiki-sha Ltd. to
Micropolis set out in Exhibit E attached hereto. Any additional costs incurred
by Micropolis due to subsequent modifications or additions to such
specifications made by SMIL shall be paid by SMIL. Micropolis will employ its
best endeavors to ensure that the above floor space and facility will be
completed and available for SMIL on or prior to March 31, 1997.

            (b) Establish the Business. StorMedia will procure and provide all
necessary manufacturing equipment, tools and materials for the production of
Disks. SMIL will use reasonable care to install and operate such equipment and
tools, and to operate and manage the Business, within the floor space provided
by Micropolis in accordance with any guidelines and/or rules and regulations
imposed by Micropolis and/or JTC to which the employees of Micropolis are
equally subject.

            (c) Operate the Business. StorMedia will employ its best endeavors
to ensure that the Business will be set up and operating at volume production
within three (3) months from the date on which Micropolis makes the facilitized
designated floor space and Facility available to SMIL, but in no event earlier
than [*] to produce Disks solely for Micropolis, subject to Section 2.1(b)(ii)
in accordance with the terms of this Agreement.

            (d) Removal of Trade Fixtures. Upon the expiration or earlier
termination of this Agreement or such earlier time as and when such items are no
longer necessary for the operation of the Business, SMIL shall have the right to
remove at its cost any part or all of the Trade Fixtures installed by StorMedia,
provided that StorMedia repairs all damage to the Premises caused by such
removal in the same condition as it existed on the date that all of the Initial
Improvements shall have been installed, reasonable wear and tear and damage by
acts of God excepted. SMIL shall have the right to modify or replace some or all
of the Trade Fixtures at any time and from time to time, so long as any such
modification or replacement does not materially and adversely affect the ability
of SMIL to fulfill its supply obligations under this Agreement and is in
accordance with any guidelines and/or

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                                       -4-
<PAGE>   5
rules and regulations imposed by Micropolis and/or JTC to which the employees of
Micropolis are equally subject.

      I.3      Maintenance of the Premises and Facility, Services and Utilities.

            (a) Maintenance and Repair. Micropolis, at Micropolis' cost, shall
clean and maintain in reasonably good condition and repair and replace when
necessary the Premises. SMIL, at SMIL's cost, shall be responsible for the
repair, maintenance and replacement of SMIL's Trade Fixtures and will employ its
best endeavors to ensure that the Premises are properly utilized on an ongoing
basis by its employees.

            (b) Services. Micropolis, at Micropolis's cost, shall furnish to the
Premises the janitorial service sufficient to maintain the Premises in a
reasonable clean and sanitary condition. Micropolis, at Micropolis' cost, also
shall provide reasonable security service to StorMedia insofar as it relates to
the Common Areas and areas having access to the Premises.

            (c) Utilities. Micropolis shall furnish to the Premises HVAC
service, electricity, water, plumbing, sewer and other services, at the
reasonable levels required by SMIL for the operation of the Business. Micropolis
will bear such utilities costs for water and power as may be required to operate
the Business, such water and power provided by Micropolis not exceeding the
following:

                  Water                                - The amount of water set
                                          forth in the Taiki-sha letter attached
                                          hereto as Exhibit E.
                  Power          -           One (1) MVA

provided that the costs for such water and power at prevailing utilities rates
shall not exceed [*] per month. SMIL shall pay for any such utilities costs
exceeding [*] per month.

            In addition, Micropolis will make available to SMIL such existing
telecommunication access as it shall require in order that SMIL may make and
receive local telephone calls within Singapore and, at the expense of SMIL, the
capability of having long distance service. SMIL may use Micropolis' lease-line
facilities solely for the purposes of voice and data transmission, subject to
availability by Micropolis and provided SMIL pays for all additional costs
incurred over and above fixed costs incurred by Micropolis for such facilities.

      I.4 Taxes. Micropolis shall pay before delinquency all real property
taxes, assessments (including, but not limited to, assessments for public
improvements or benefits), and other charges imposed by any governmental or
quasi-governmental authority, which are levied or assessed against the Facility
and/or the real property on which it is located. SMIL shall pay, before
delinquency, all taxes, assessments and charges levied or imposed by any
governmental or quasi-governmental

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                                       -5-
<PAGE>   6
authority, which are levied or assessed upon or against SMIL's Trade Fixtures
and personal property installed or located on or within the Premises.

      I.5 Indemnification. Each party hereto shall defend, indemnify, protect
and hold harmless the other and its employees and agents with competent counsel
reasonably satisfactory to such other party, from all liability, penalties,
losses, damages, costs, expenses, causes of action, claims and/or judgments
arising by reason of any death, bodily injury, personal injury or property
damage to the extent resulting from the negligent act or omission of such party
or the employees, agents or contractors of such party arising from or out of any
occurrences in, upon or at the Premises or the use of the Premises or any part
thereof.


                                    SECTION II.

                          PURCHASE AND SUPPLY COMMITMENT

      II.1 Purchase and Supply Commitment. In consideration for the grant of
license to use the Premises by Micropolis to SMIL, SMIL agrees to supply to
Micropolis and Micropolis agrees to purchase from SMIL an aggregate of [*]
Disks per quarter on the Schedule set forth below. To the extent such Disks
cannot be produced at the Premises, or if additional quantities of Disks are to
be ordered in excess of the capacity of the premises, StorMedia shall use its
best efforts to supply Disks from other StorMedia factories to meet the volumes
required under this Section II. The parties shall negotiate the terms and
conditions of any Disks ordered by Micropolis in excess of the volumes set forth
below.

            (a) Supply From the Premises. SMIL will produce Disks suitable for
usage in Micropolis' high end and desk-top range of drives for the [ * ]
product families, respectively (or such other product families as the parties
shall agree to in writing) on the Premises. SMIL agrees to supply to Micropolis
the volume of Disks per quarter from such production below in accordance with a
long term schedule to be agreed and finalized between the parties, with such
availability commencing in the third quarter of 1997 and at prices not  
significantly different from the following guidelines:
<TABLE>
<CAPTION>
                  1996   ------------1997------------  ------------1998------------
                    Q4       Q1    Q2    Q3    Q4        Q1      Q2      Q3      Q4
                    --       --    --    --    --        --      --      --      --
<S>                 <C>     <C>    <C>  <C>   <C>      <C>     <C>     <C>     <C>
  Price (US$/unit)

  [*]                -       -      -
  [*]                -       -      -

</TABLE>

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                                       -6-
<PAGE>   7
<TABLE>
      Volume (Disks 000s)
<S>                                   <C>    <C>        <C>      <C>       <C>       <C>
[*]
</TABLE>

      Provided that Micropolis shall have the discretion to determine the mix of
the product families to be made available within each quarter and such
requirement shall be indicated in the three (3) month forecast referred to in
Section 2.2 below. For the avoidance of doubt, the said forecast shall specify,
for example:

     Either      (i)   [*]

                (ii)   [*]

               (iii)   [*]

                       [*]
 With respect to future product families, in the event that such Disks cannot be
produced by SMIL due to limitations of the Premises and/or the Trade Fixtures,
each of the parties shall provide the necessary modifications and/or additions
to the Premises and/or Trade Fixtures (as the case may be), as the parties
mutually agree in order to meet the product requirements on a timely basis.

            (b) Shortfall. A shortfall of [*] of production by SMIL and/or
purchase from Micropolis from the volumes indicated in paragraph (a) above for
each quarter shall not be construed as a breach of this Agreement. In the event
of a shortfall in excess of [*] either party may notify the other of such
deviation and such deviation must be cured within 30 days of such notice,
failing which such shortfall will constitute a breach and the provisions of
Section 3.2 shall apply in such event. Without prejudice to the foregoing:

                              (i) in the event of a shortfall in excess of [*]
                        in the quantities produced by SMIL from the quantities
                        ordered by Micropolis, Micropolis shall have the right
                        to purchase, and StorMedia shall supply to Micropolis,
                        such quantities of Disks from StorMedia's other factory
                        facilities at prices which would otherwise apply to the
                        Disks ordered in order to remedy such shortfall; or

                              (ii) subject to Section 2.4(b), in the event of a
                        shortfall in excess of [*] in the quantities purchased
                        from Micropolis from the committed quantity, SMIL shall
                        have the right to produce and


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                                       -7-
<PAGE>   8
                        sell such quantities of Disks, not purchased by
                        Micropolis pursuant to paragraph (a) above, to any
                        third party.

            (c) Supply From Other Facilities. In addition to such Disks supplied
from the Premises, StorMedia agrees to supply to Micropolis additional Disks as
may be required by Micropolis from StorMedia's other factory facilities,
commencing in the fourth quarter of 1996 for [*] and the first quarter of 1997
for [*] Disks, and at prices based on indicated volumes not significantly
different from the following guidelines:

<TABLE>
<CAPTION>
                             1996  ------------------1997------------------    -------------------1998-------------------
                              Q4        Q1       Q2         Q3         Q4         Q1         Q2         Q3         Q4
                              --        --       --         --         --         --         --         --         --
<S>                          <C>      <C>      <C>        <C>        <C>        <C>        <C>        <C>        <C>
    Price (US$/unit)
             [*]

</TABLE>

      II.2  Rolling Forecasts.

            (a) Forecasts. Micropolis and StorMedia will develop a procedure to
use in periodically forecasting Disk demand which shall require that Micropolis
shall provide StorMedia with at least a three (3) month rolling forecast setting
forth its estimated requirements for delivery by month for Disks. Purchase
orders must be placed forty-five (45) days in advance of the date as of which
the Disks are to be delivered from the Facility or from another facility of
StorMedia (the "Delivery Date"). Micropolis may request a Delivery Date with a
shorter lead time and StorMedia shall use its best efforts to meet such date.
This forecast shall be updated monthly. Based on Micropolis' projected quarterly
demand for the Disks for either or both [ * ] product families of drives (or 
such other product families as the parties shall agree in writing) and upon
delivery of purchase orders, SMIL will produce such Disks first at the Premises
in such quantities as will support the projected demand.


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                                       -8-
<PAGE>   9
            (b) Orders. Micropolis will issue purchase orders to StorMedia at
least forty-five (45) days in advance of the requested delivery date. Micropolis
agrees to purchase on an "as produced basis" all output from the Premises so
long as the production is based on such purchase orders and in so far as the
Disks meet Micropolis' specifications and functional requirements in Section
2.4. Such purchase orders shall state the quantities, Disk descriptions,
requested delivery dates and shipment instructions. The acceptance by StorMedia
of an order shall be indicated by written acknowledgment thereof by StorMedia.

      II.3  Price and Payment.

            (a) Price. [*]

            Prices for Disks produced in StorMedia's other factory facilities
will be based on market and negotiated quarterly but will not be significantly
different from the prices indicated in Section 2.1(b) above. The purchase price
of the Disks purchased hereunder shall be set forth on the purchase orders
delivered pursuant to Section 2.2(b) above.

            (b) Payment. Payment shall be made in U.S. dollars net forty-five
(45) days from the date of SMIL's invoice. For Disks manufactured at the
Premises, delivery terms are FOB StorMedia's Premises. For Disks shipped from
any factory other than the Facility, the delivery term is FOB StorMedia's
factory.

      II.4  Specifications.

            (a) Compliance with Specifications. Micropolis' obligation set forth
in Section 2.1 to purchase Disks from StorMedia is contingent upon StorMedia's
Disks meeting Micropolis' initial specifications at the time of qualification
and ongoing specifications and functional requirements as agreed to by the
parties. SMIL undertakes to use reasonable efforts to ensure that Disks produced
in the Premises will meet specifications and functional requirements as agreed
to by the parties.

            (b) Qualification. Micropolis shall be given reasonable time from
the time of delivery of the prototype Disks by StorMedia to Micropolis to test,
qualify and accept such disks in order to ensure that such Disks comply with the
provisions of Section 2.4 (a) above. The parties shall agree on a timetable for
such initial qualification.

      II.5 General Terms and Conditions. The general terms and conditions of
sale and purchase of the Disks shall be those set forth on Exhibit F attached
hereto. The terms of this Agreement shall prevail over any inconsistent terms
set forth in such Exhibit F.

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                                       -9-
<PAGE>   10
                                  SECTION III.

                              TERM AND TERMINATION

      III.1 Term. This Agreement shall become effective upon the date of
execution hereof and shall remain in force until December 31, 1999 (the
"Termination Date"). If Micropolis wishes to renew this Agreement, it shall so
notify StorMedia in writing on or prior to June 30, 1999. The parties shall
promptly discuss in good faith the proposed terms of such renewal. If the
parties have not agreed to such terms prior to December 1, 1999, this Agreement
shall terminate on the Termination Date, provided that StorMedia shall have a
period up to three (3) months following the Termination Date or any other
termination pursuant to this Section III, at its own cost and expense, to remove
its Trade Fixtures from the Premises and, surrender the Premises in accordance
with Section 1.1(e) hereof.

      III.2 Termination for Breach. If either party breaches any material term
or condition of this Agreement and fails to cure that breach within thirty (30)
days or such longer period as the parties may agree after receiving written
notice of the breach, the other party shall have the right to terminate this
Agreement by delivery of written notice of termination after the end of such
thirty (30) day-period without prejudice to any other rights or remedies
available to the non-defaulting party under this Agreement or applicable law.

      III.3 Termination for Insolvency. If either party becomes the subject of a
voluntary or involuntary petition in bankruptcy or of any proceeding relating to
insolvency, receivership, liquidation or composition for the benefit of
creditors and in the case of StorMedia, if that petition or proceeding is not
dismissed with prejudice within sixty (60) days after filing, the other party
may terminate this Agreement on thirty (30) days' notice.

      III.4 Effect of Termination. The provisions of Sections 1.1(d), 1.1(e),
1.2(d), 3.1 and 4 hereof shall survive any termination or any expiration of this
Agreement. All other rights and obligations of the parties shall cease upon
termination of this Agreement, subject in all events to the proviso clause of
Section 3.1 above.


                                    SECTION IV.

                                  CONFIDENTIALITY

      IV.1  Confidential Information.

            (a) Definition. As used in this Section 4.1, the term "Confidential
Information" shall mean any information disclosed by one party to the other
pursuant to this Agreement which is in


                                      -10-
<PAGE>   11
written, graphic, machine readable or other tangible form and is marked
"Confidential", "Proprietary" or in some other manner to indicate its
confidential nature. Confidential Information may also include oral information
disclosed by one party to the other pursuant to this Agreement, provided that
such information is designated as confidential at the time of disclosure and
reduced to a written summary by the disclosing party, within thirty (30) days
after its oral disclosure, which is marked in a manner to indicate its
confidential nature and delivered to the receiving party. In addition, all
technical and confidential information exchanged prior to the date hereof shall
be subject to the terms of this Section IV after the date hereof.

            (b) No Disclosure or Use. Each party shall treat as confidential all
Confidential Information of the other party, shall not use such Confidential
Information except as expressly set forth herein or otherwise authorized in
writing, shall implement reasonable procedures to prohibit the disclosure,
unauthorized duplication, misuse or removal of the other party's Confidential
Information and shall not disclose such Confidential Information to any third
party except as may be necessary and required in connection with the rights and
obligations of such party under this Agreement, and subject to confidentiality
obligations at least as protective as those set forth herein. Without limiting
the foregoing, each of the parties shall use at least the same procedures and
degree of care which it uses to prevent the disclosure of its own confidential
information of like importance to prevent the disclosure of Confidential
Information disclosed to it by the other party under this Agreement, but in no
event less than reasonable care.

            (c) Permissible Disclosure. Notwithstanding the above, neither party
shall have liability to the other with regard to any Confidential Information of
the other which:

                  (i) was generally known and available in the public domain at
the time it was disclosed or becomes generally known and available in the public
domain through no fault of the receiver;

                  (ii) was known to the receiver at the time of disclosure as
shown by the files of the receiver in existence at the time of disclosure;

                  (iii) is disclosed with the prior written approval of the
discloser;

                  (iv) was independently developed by the receiver without any
use of the Confidential Information and by employees or other agents of the
receiver who have not been exposed to the Confidential Information, provided
that the receiver can demonstrate such independent development by documented
evidence prepared contemporaneously with such independent development;

                  (v) becomes known to the receiver from a source other than the
discloser without breach of this Agreement by the receiver and otherwise not in
violation of the discloser's rights; or


                                      -11-
<PAGE>   12
                  (vi) is disclosed pursuant to the order or requirement of a
court, administrative agency, or other governmental body; provided, that the
receiver shall provide prompt, advanced notice thereof to enable the discloser
to seek a protective order or otherwise prevent such disclosure.

      IV.2 Use of Confidential Information. StorMedia and Micropolis each agree
that at all times, and notwithstanding any termination, expiration, or
cancellation hereunder, it will use the Confidential Information for no purpose
other than pursuing the transactions and relationship contemplated by this
Agreement.

      IV.3 Return of Materials. Upon termination, cancellation or expiration of
this Agreement, or upon written request of the other party, each party shall
promptly return to the other all documents or other tangible materials
representing the other's Confidential Information and all copies thereof.

      IV.4 No License. The parties recognize and agree that nothing contained in
this Agreement shall be construed as granting any property rights, by license or
otherwise, to any Confidential Information of the other party disclosed pursuant
to this Agreement, or to any invention or any patent right that has issued or
that may issue, based on such Confidential Information.

      IV.5 Term of Nondisclosure Obligation. Notwithstanding the term of this
Agreement, the obligations of StorMedia and Micropolis hereunder with respect to
any Confidential Information shall continue for a period of three (3) years
after the Termination Date.

      IV.6 Injunctive Relief. If either party breaches any of its obligations
with respect to confidentiality and unauthorized use of Confidential Information
hereunder, the other party shall be entitled to equitable relief to protect its
interest therein, including but not limited to injunctive relief, as well as
money damages.

      IV.7 Publicity. All publicity regarding the announcement of this Agreement
shall be coordinated by both parties. Neither party shall disclose the terms of
this Agreement without the prior written approval of the other party, except as
required as a matter of law.

                                    SECTION V.

                              LIMITATION OF LIABILITY

      IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, CON SEQUENTIAL,
INDIRECT, OR INCIDENTAL DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY AND
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF

                                      -12-
<PAGE>   13
THE POSSIBILITY OF SUCH DAMAGES, ARISING IN ANY WAY OUT OF THIS AGREEMENT OR THE
PREMISES AND THE PRODUCTS PROVIDED PURSUANT TO THIS AGREEMENT; PROVIDED,
HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY TO A BREACH OF THE CONFIDENTIALITY
OBLIGATIONS UNDER SECTION IV ABOVE.


                                    SECTION VI.

                                   MISCELLANEOUS

      VI.1 Governing Law and Jurisdiction. This Agreement shall be governed by
and interpreted in accordance with the laws of Singapore. The parties agree that
the United Nations Convention on Contracts for the International Sale of Goods
shall apply to this Agreement, provided that in the event of any conflict
between the United Nations Convention and the terms of this Agreement, the
latter shall apply. The Parties hereby submit to the non-exclusive jurisdiction
of the Courts of Singapore.

      VI.2 No Partnership or Joint Venture. StorMedia and Micropolis are not
partners or joint venturers and neither shall hold the other out as being a
partner or joint venturer of the other.

      VI.3 Force Majeure. If the performance of this Agreement or any
obligations hereunder is prevented, restricted or interfered with by reason of
fire or other casualty or accident, strikes or labor disputes, war or other
violence, any law, order, proclamation, ordinance, demand or requirement of any
government agency, or any other act or condition beyond the control of the
parties hereto, the party so affected upon giving prompt notice to the other
party shall be excused from such performance during such prevention, restriction
or interference. Only the obligations affected by any of the above events during
such prevention, restriction or interference shall be suspended. The party
relying on such event must assume full responsibilities under this Agreement as
soon as such event ceases to exist.

      VI.4 Assignment. Neither party may assign or delegate this Agreement or
any of its rights or duties under this Agreement without the prior written
consent of the other, except to a person or entity into which it has merged or
which has otherwise succeeded to all or substantially all of its business and
assets, and which has assumed in writing or by operation of law its obligations
under this Agreement.

      VI.5 Authority. Each party represents that all corporate action necessary
for the authorization, execution and delivery of this Agreement by such party
and the performance of its obligations hereunder has been taken.

      VI.6 Notices. All notices, demands and other communications required or
permitted to be given or made hereunder shall be in writing and shall be mailed
by registered or certified mail, postage prepaid, or otherwise delivered by
hand, by messenger or by facsimile, addressed to the intended

                                      -13-
<PAGE>   14
recipient thereof at its address and facsimile number as set forth below or at
such other address or facsimile number as either party may from time to time
notify the other in writing.

            To StorMedia:           StorMedia Incorporated
                                    390 Reed Street
                                    Santa Clara, CA 95050
                                    Facsimile No:  (408) 727-4928
                                    Attn:  Stephen M. Abely

                                    StorMedia International Limited
                                    390 Reed Street
                                    Santa Clara, CA  95050
                                    Facsimile No:  (408) 727-4928
                                    Attn:  Stephen M. Abely

            With a copy to:         Wilson, Sonsini, Goodrich & Rosati
                                    650 Page Mill Road
                                    Palo Alto, CA  94302
                                    Facsimile No:  (415) 493-6811
                                    Attn:  Judith M. O'Brien

            To Micropolis:          Micropolis (S) Pte Ltd
                                    5, Serangoon North Avenue 5
                                    Singapore 554916
                                    Facsimile No:  4859824/4859853
                                    Attn:  Jenny Ong

            With a copy to:         Singapore Technologies Pte Ltd
                                    89 Science Park Drive
                                    Block C #02-09/12 The Rutherford
                                    Singapore 118261
                                    Facsimile No:  8724839
                                    Attn:  Lee Chuen Ling

Any such notice, demand or communication shall be deemed to have been duly
served (if given or made by facsimile) immediately or (if given or made by
letter) forty-eight (48) hours after posting or (if made or given to or from an
address outside Singapore) ten (10) days after posting and in proving the same,
it shall be sufficient to show that the envelope containing the same was duly
addressed, stamped and posted.


                                      -14-
<PAGE>   15
      VI.7 Export Controls. Any and all obligations of either party to provide
software, technical information, technical assistance, any media in which any of
the foregoing is contained, training and related technical data (collectively,
"Data") to the other party outside the United States shall be subject in all
respects to such United States laws and regulations as shall from time to time
govern the license and delivery of technology and products abroad by persons
subject to the jurisdiction of the United States, including the Export
Administration Act of 1979, as amended, any successor legislation, and the
Export Administration Regulations issued by the Department of Commerce,
International Trade Administration, Bureau of Export Administration. StorMedia
shall be responsible for obtaining any export license or other approvals and/or
consents in respect of or in relation to the foregoing matters.

      VI.8 Partial Invalidity. If any paragraph, provision, or clause thereof in
this Agreement shall be found or be held to be invalid or unenforceable in any
jurisdiction in which this Agreement is being performed, the remainder of this
Agreement shall be valid and enforceable and the parties shall negotiate, in
good faith, a substitute, valid and enforceable provision which most nearly
effects the parties' intent in entering into this Agreement.

      VI.9 Counterparts. This Agreement may be executed in two (2) or more
counterparts, all of which, taken together, shall be regarded as one and the
same instrument.

      VI.10 Waiver. The failure of either party to enforce at any time any
provision of this Agreement on or before sixty (60) days following the date that
such party first had notice, or should have had notice, of the non-compliance
with such provision by the other party shall be deemed to be a waiver of the
default with respect to such non-compliance and a forbearance of such party's
right to terminate this Agreement on account thereof.

      VI.11 Entire Agreement. The terms and conditions herein contained
constitute the entire agreement between the parties and supersede all previous
agreements and understandings (including the binding letter of intent between
the parties dated October 2, 1996), whether oral or written, between the parties
hereto with respect to the subject matter hereof (except for confidentiality and
nondisclosure agreements governing the exchange of information prior to the
Effective Date which shall continue to govern periods prior to the Effective
Date) and no agreement or understanding varying or extending the same shall be
binding upon either party hereto unless in a written document signed by the
party to be bound thereby.

      VI.12 Section Headings. The section headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

      VI.13 Exhibits. The parties agree that the Exhibits hereto shall be read
with and form part of this Agreement.


                                      -15-
<PAGE>   16
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by duly authorized officers or representatives as of the date first above
written.


MICROPOLIS (S) PTE LTD                    STORMEDIA INCORPORATED


By:                                       By:

Name:       Joe Chen                      Name: William J. Almon
            -----------                         ------------------
Title:      President                     Title:      Chairman
            -----------                         ------------------


                                          STORMEDIA  INTERNATIONAL LIMITED


                                          By:

                                          Name:   William J. Almon
                                                  ---------------------
                                          Title:        Chairman
                                                  ---------------------


                                      -16-
<PAGE>   17
                                    EXHIBIT A

                       DIAGRAM OF PREMISES AND SPACE PLAN

                                     [MAP]
<PAGE>   18
                                    EXHIBIT B

                               BUILDING AGREEMENT



                         JTC (L) 3729/1356 PT. 1/KM/ZMY



                BUILDING AGREEMENT RELATING TO PRIVATE LOT A14269
               MUKIM NO. 18 ANG MO KIO AREA: 17,930 SQUARE METRES



                                     BETWEEN

                             JURONG TOWN CORPORATION

                                       AND

                               MICROPOLIS LIMITED
<PAGE>   19
                           BUILDING AGREEMENT FOR LAND
                      AT PRIVATE LOT A14269 IN YIO CHU KANG
                                    (INLAND)

      THIS AGREEMENT is made the 28th day of February 1995 BETWEEN JURONG TOWN
CORPORATION a body corporate incorporated under the Jurong Town Corporation Act
and having its Head Office at Jurong Town Hall, Jurong Town Hall Road, Singapore
(hereinafter called "the Owner" which expression shall include its
successors-in-title and assigns of the one part AND MICROPOLIS LIMITED a foreign
company incorporated in the Cayman Islands and having its Singapore registered
office at

                        5004 Ang Mo Kio Avenue 5, #01-11,
                                 Singapore 2056

(hereinafter called "the Licensee" which expression shall include its
successors-in-title) of the other part.

      WHEREBY IT IS AGREED as follows:

1. For the period of two (2) years from 1st day of October 1994 (hereinafter
referred to as "the date hereof") or for such further period as may be extended
by the Owner, the Licensee shall have the Licence and authority to enter upon
all that piece of land known as Private Lot A14269 forming part of Government
Survey Lots 7634, 9419, 10979 and 12500, Mukim No. 18, Ang Mo Kio and situated
in the Republic of Singapore as shown on the plan annexed hereto and estimated
to contain an area of 17,930 square metres more or less subject to survey
(hereinafter called "the said land") for the construction of factory building
and other structures therein and for the installation of equipment fixtures and
fittings thereat for the purpose of the manufacture of disk drives, related
sub-assemblies, storage systems and related electronic/information technology
products only in accordance with the stipulations hereinafter contained and for
no other purpose whatsoever.

2. The Licensee hereby agrees to perform and observe the following stipulations:

      (i)   To hold the said land until the same shall be comprised in a lease
            to be granted as hereinafter provided as licensee upon the same
            terms relating to the lease referred to in clause 2(ii) herein at
            the same rent and subject to the same covenants and stipulations so
            far as applicable as if a lease thereto has been actually granted
            and so that the Owner shall have all the remedies by whatsoever
            means for rent in arrears that are incidental to the relationship of
            landlord and tenant but so that nothing herein contained shall be
            construed as creating a legal demise or any greater interest in the
            licence than a tenancy at will.

      (ii)  To pay in advance as from the date hereof a licence fee calculated
            at the same rate and on the dates specified as for the rent reserved
            in the lease of the said land set out in the First Schedule hereto
            as if such lease has actually been granted.


                                       -2-
<PAGE>   20
      (iii) To pay on the Owner's behalf to the Comptroller of Property Tax an
            amount equivalent to the sum payable by the Owner as property tax in
            respect of the said land improvements and structures thereon during
            the said period or of such extended period (if any) permitted under
            clause 3(c) hereof by way of additional licence fee or for the
            period prior to the issue of the lease to be granted under clause 4
            herein.

      (iv)  To pay interest at the rate of 8.5% per annum or such higher rate as
            may be determined from time to time by the Owner in respect of any
            outstanding amount payable by the Licensee under this Agreement from
            the date such amount becomes due until payment in full is received
            by the Owner.

      (v)   To pay to the Owner all survey fees and other charges including
            those payable to and claimed by the relevant Government Planning
            Authorities for the survey of the said land for the purpose of
            sub-division of the land of which the said land forms part and the
            preparation and issue of a Certificate of Title PROVIDED THAT the
            Owner shall have the right to employ his own surveyor to carry out
            the said survey in which event the Licensee shall bear all costs
            incurred.

      (vi)  At his own cost and expense -

            (a)   to engage a professional engineer to carry out soil
                  investigations to advise on the soil conditions and to design
                  structurally sound buildings proposed to be erected taking
                  into consideration the condition of the said land; and

            (b)   to execute such work as may be required to be done in respect
                  of the state and condition of the said land (especially its
                  ground levels, topography and soil conditions) which state and
                  condition the Licensee shall be deemed to have full knowledge.

      (vii) Without prejudice to sub-clause (vi) above to submit within three
            (3) months from the date hereof firstly to the Owner for his
            approval and then to the relevant Government Planning and Building
            Authorities full and complete plans elevations and specifications of
            the buildings proposed to be erected on the said land in accordance
            in every way with the requirements under the Planning Act and the
            Local Government Integration Act PROVIDED THAT the Owner may give or
            refuse his approval at his absolute discretion.

      (viii)At his own cost to commence erection on the said land either within
            six (6) months from the date hereof or within one (1) month from the
            date of approval of the plans by the relevant Government Building
            Authorities, whichever is the earlier, and in a substantial and
            workman-like manner with the best materials of their available kinds
            and in conformity in every respect with the plans, elevations,
            sections and specifications approved by the Owner and the relevant
            Government Building Authorities to finish the warehousing building,
            structures and other appurtenances including the installations of
            all equipment, fixtures and fittings so as to be completely fit for
            immediate occupation and operation within the said period of two (2)
            years from the date hereof PROVIDED

                                       -3-
<PAGE>   21
            ALWAYS THAT in the planning, erection, construction and completion
            of the said buildings, to develop to a gross plot ratio of not less
            than 2.0 and not more than 2.5 AND PROVIDED FURTHER THAT the
            Licensee shall not install or use any electrical installation,
            machine or apparatus that may cause or causes heavy power surge,
            high frequency voltage and current, air borne noise, vibration or
            any electrical or mechanical interference or disturbance whatsoever
            which may prevent or prevents in any way the service or use of any
            communication system or affects the operation of other equipment,
            installations, machinery, apparatus or plants of other Licensees.

      (ix)  At his own cost to take such steps and execute such works upon the
            said land as may be necessary for the protection of shores and
            embankments if any and for the prevention of earth-slip erosion of
            soil and failure of slopes expeditiously in a workman-like manner
            and to the satisfaction of the Owner and other relevant governmental
            and statutory authorities.

      (x)   If the Licensee shall fail to complete the said buildings works and
            installations and to commence operations within the period specified
            in clause 2(viii) or within any extended period under clause 3(c)
            hereof the Licensee shall pay to the Owner a sum calculated at the
            rate of $50.00 per day as liquidated damages for the period during
            which the said buildings shall so remain or have remained
            incomplete.

      (xi)  To remove and replace any materials brought on the said land or used
            in any of the said buildings, works or installations which the Owner
            shall require to be removed as being inferior or unfit and to make
            good any workmanship which he shall consider imperfect and if the
            Licensee fails to remedy such defects the Owner may enter upon the
            said land and remedy such defects at the expense of the Licensee
            after expiry of fourteen (14) days' notice being given to the
            Licensee to do so.

      (xii) Not to erect or build or permit or suffer to be erected or built any
            building, structure or installation other than those conforming with
            the plans elevations sections and specifications approved by the
            Owner and the relevant Government Building Authorities nor to make
            any alterations in the external elevation of any of the said
            buildings when erected without the prior consent in writing of the
            Owner.

      (xiii)In the erection and completion of the said buildings, structures and
            installations to do all acts and things required by and to perform
            the works in conformity with all respects with the provisions of any
            laws or regulations made thereunder and to pay and keep the Owner
            indemnified against all claims and other payments whatsoever which
            during the progress of the works may become payable in respect of
            the said works or of anything done under the authority herein
            contained and from time to time to discharge and pay all claims,
            assessments and outgoings now or at any time hereafter be chargeable
            against the Owner under any law or otherwise in regard to the said
            land, the said buildings or any structures or installations thereon.


                                       -4-
<PAGE>   22
(xiv)       Not to do or permit or suffer to be done in or upon the said land or
            any part thereof anything which in the opinion of the Owner may be
            or become a nuisance or annoyance or cause damage or inconvenience
            to the Owner or to the Licensees or occupiers of any adjoining or
            neighboring premises or whereby any insurance for the time being
            effected on the premises under sub-clause (xix) herein may be
            rendered void or voidable or be in any way affected.

(xv)        Not to sell or dispose of any earth, clay, gravel or sand from the
            said land or permit or suffer any of the same to be removed except
            so far as shall be necessary for the execution of the said works
            PROVIDED nevertheless that the Licensee may use for the purpose of
            the said works any of the approved materials if so required.

(xvi)       Not without the prior consent in writing of the Owner to remove or
            permit or suffer to be removed until after completion of the said
            buildings in accordance with the provisions herein contained any
            building materials (other than inferior or unfit materials removed
            for the purpose of being replaced by proper materials) or plant
            which shall be brought upon the said land for the purpose of the
            said works.

(xvii)      Not without the prior consent in writing of the Owner to affix or
            exhibit or erect or paint or permit or suffer to be affixed or
            exhibited or erected or painted on or upon any part of the exterior
            of the said land or of the external walls or rails or fences thereof
            any nameplate, signboard, placard, poster or other advertisement or
            hoarding.

(xviii)     Not at any time to deposit or make up or manufacture or permit or
            suffer to be deposited made up or manufactured upon the said land
            any building or other materials except such as shall be actually
            required for the buildings to be erected on the said land in
            accordance with this Agreement and as soon as the buildings
            hereinbefore agreed to be erected shall be completed at his own
            expense to remove from the road or footpath adjoining the said land
            or the ground intended to be used for such road or footpath all
            building and other materials and waste whatsoever.

(xix)       As soon as any of the said buildings shall have reached a height of
            five (5) feet above ground level to insure the same to the full
            value thereof in the joint names of the Owner and the Licensee
            against loss or damage by fire in some insurance office approved by
            the Owner and shall increase such insurance proportionately as the
            said buildings approach completion and to keep the same so insured
            until a lease shall be granted as hereinafter provided and to pay
            all premiums thereof at least seven (7) days before the expiry date
            of such insurance policy and to produce to the Owner or his agent
            without demand the policy or policies of such insurance and the
            receipt for each such payment and in the event the said buildings or
            any part thereof are destroyed or damaged by fire then to forthwith
            give to the Owner written notice of such destruction or damage and
            to forthwith cause all monies received by virtue of any such
            insurance to be forthwith laid out in rebuilding and reinstating the
            buildings to the satisfaction of the Owner and to make up any
            deficiency thereof out of his own monies, but the rebuilding and
            reinstatement shall in any


                                       -5-
<PAGE>   23
            event commence and be completed within the period specified by the
            Owner PROVIDED ALWAYS THAT if the Licensee shall at any time fail to
            keep the premises insured as aforesaid the Owner may without being
            under any obligation to do so do all things necessary to effect or
            maintain such insurance and any monies expended by him for that
            purpose shall be repayable by the Licensee on demand and be
            recovered forthwith from the Licensee as a debt.

(xx)        Not to assign, sublet, grant a license, or part with or share his
            interest under this Agreement, or the possession or occupation of
            the said land, or any part thereof EXCEPT THAT, subject to the
            Owner's prior written consent, which consent shall not be
            unreasonably withheld, the Licensee may mortgage his interest under
            this Agreement by way of assignment to secure the repayment of such
            sum or sums as the Licensee may require for the purpose of erecting
            or completing the building or other structure to be built on the
            said land in accordance with the provisions of this Agreement
            PROVIDED THAT the Licensee shall thereafter continue to be liable
            for the observance and performance of the several stipulations
            herein contained until the grant of the lease as hereinafter
            provided.

(xxi)       Not to permit or suffer any person to occupy, reside or make use of
            any building erected on the said land before a Temporary Occupation
            Permit or a Certificate of Statutory Completion issued by or except
            with the permission of the relevant Governmental and Statutory
            authority.

(xxii)      To make reasonable provision against and be responsible for all
            loss, injury and damage to any person (including loss of life) or
            property including that of the Owner for which the Licensee may be
            held liable arising out of or in connection with the occupation and
            use of the said land and the structures erected thereon and to
            indemnify the Owner against all proceedings, claims, costs and
            expenses which he may incur or for which he may be held liable as a
            result of any act, neglect or default of the Licensee, his servants,
            contractors, or agents or their respective servants.

(xxiii)     To make good and sufficient provision for the safe and efficient
            disposal of all waste including but not limited to pollutants
            generated at the said land to the requirements and satisfaction of
            the Owner and other relevant Governmental and Statutory authorities
            PROVIDED THAT in the event of any default by the Licensee under this
            covenant the Owner may carry out such remedial measures as he thinks
            necessary and costs and expenses incurred thereby shall be
            recoverable forthwith from the Licensee as a debt.

(xxiv)      Subject always to clause 2(xx) hereinbefore appearing, to give to
            the Owner written notice of every change of name within one month
            from the date of each change.

(xxv)       To construct an internal drainage system to the satisfaction of the
            Owner to ensure that all surface water collected is discharged into
            the public drains and will not flow into adjoining properties.


                                       -6-
<PAGE>   24
(xxvi)      To construct and complete a permanent culvert within nine (9) months
            from 1st day of October 1994 or any extension thereof as may be
            approved by the Owner and in connection thereof to submit plans to
            and to obtain the prior approval in writing of the Owner for the
            construction of a temporary crossing.

(xxvii)     Within one (1) month of the completion of the permanent culvert
            mentioned in sub-clause (xxvi) above to remove the temporary
            crossing and to reinstate any roads, roadside curbs, drains, turfing
            or the like damaged by the Licensee, his servants, contractors
            subcontractors, or agents or their respective servants to the
            satisfaction of the Owner and the relevant Governmental and
            Statutory authorities.

(xxviii)    Within one (1) month of the completion of the construction of the
            said buildings ad related civil works to reinstate any damage caused
            to the roads, roadside curbs, drains, turfing and the said permanent
            culvert by the Licensee his servants, contractors, subcontractors,
            or agents or their respective servants to the satisfaction of the
            Owner and the relevant Governmental and Statutory authorities.

(xxix)      To place with the Owner a deposit of $5,000.00 which shall be
            forfeited in the event of any breach of any of the provisions in
            sub-clauses (xxvi), (xxvii) and (xxviii) herein without prejudice to
            the rights and remedies of the Owner contained in this Agreement and
            the Lease.

(xxx)       At his own cost to plant and maintain trees and landscape the said
            land in accordance with all the requirements of the Parks and
            Recreation Department, Ministry of National Development and other
            relevant Governmental and Statutory authorities.

(xxxi)      At his own cost to execute such work as may be necessary to diver
            existing utility services such as pipes, cables and the like (if
            any) to the requirements and satisfaction of the Owner and other
            relevant Governmental and Statutory authorities.

(xxxii)     If the Licensee shall at any time be found to have encroached upon
            any area beyond the allocated boundaries of the said land, the
            Licensee shall at his own costs and expense, but without prejudice
            to any other right or remedy the Owner may have against him,
            immediately or within the time specified (if any) by the Owner
            rectify and remove the encroachment to the satisfaction of the Owner
            and pay to the Owner such compensation as may be specified by the
            Owner. If, however, the Owner in his absolute discretion permits the
            Licensee to regularize and retain the encroached area or any part
            thereof upon such terms and conditions as may be stipulated by the
            Owner and any other relevant Governmental and Statutory authorities,
            the Licensee shall pay licence fee on the encroached area with
            retrospective effect from the date hereof, and the Licensee shall
            also pay all survey fees, amalgamation fees, legal fees (including
            solicitor and client costs and expense), and all other costs and
            charges relating thereto.


                                       -7-
<PAGE>   25
(xxxiii)    If any damage of whatsoever nature or description shall at any time
            occur or be caused to the said land or any building or structure or
            installation thereon, or any part thereof, to forthwith give to the
            Owner written notice of the damage and to remedy the damage to the
            satisfaction of the Owner within such time as the Owner may specify,
            all at the cost of the Licensee.

(xxxiv)     Not to keep or allow to be kept any livestock or other animals on
            the said land or any part thereof.

(xxxv)      The license fees and other taxable sums payable by the Licensee
            under or in connection with the Licence herein shall be exclusive of
            the goods and services tax (hereinafter called "tax") chargeable by
            any government, statutory or tax authority calculated by reference
            to the amount of the license fees and any other taxable sums
            received or receivable by the Owner from the Licensee and which tax
            is payable by the Licensee. The Licensee shall pay the tax and the
            Owner acting as the collecting agent for the government, statutory
            or tax authority shall collect the tax from the Licensee together
            with the rent hereinbefore reserved without any deduction and in
            advance without demand on the 1st day of each of the months of
            January, April, July and October, and in the manner and within the
            period prescribed in accordance with the applicable laws and
            regulations.

(xxxvi)     At all times and at his own cost and expense, to comply with and
            observe any height restriction on buildings and structures at the
            said land which may be imposed by any governmental or statutory
            authority and to ensure that the maximum height for all buildings
            and structures on the said land shall not exceed 36 metres AGL.

(xxxvii)    The building facade fronting Serangoon North Avenue 5 shall be
            aesthetically-designed.

(xxxviii)   Without prejudice to Clauses 2(xii) and 2(xiii) hereinbefore
            appearing, the Licensee shall not place, construct or erect or
            permit the placing, construction or erection of any building,
            structure or equipment whatsoever on the 3.0 metre-wide sewer
            easement and buffer situated within the boundary of the said land as
            shown on the plan annexed hereto.

(xxxix)     The Licensee accepts that as infrastructure development, which shall
            include a permanent road, public sewer, water pipes and street
            lighting for the whole of Yio Chu Kang area of which the said land
            forms only a part, is being carried out by the Owner and is targeted
            for completion on or about January 1995 a the earliest, the Licensee
            shall meanwhile at his own cost make temporary arrangements with the
            relevant governmental and statutory authorities to obtain public
            utilities for the Licensee's own needs.

(xl)        The Licensee accepts the said land with full knowledge that the
            proposed permanent road and service road shown on the said plan
            annexed hereto have yet to be constructed and further accepts and
            agrees at all times to permit the Owner, its contractors,
            subcontractors, and their workmen to enter upon the said land facing
            the said proposed

                                       -8-
<PAGE>   26
            permanent road for purposes of a working area to carry out and
            complete the said infrastructure development.

     (xli)  The Licensee has to liaise with the Owner's contractors before
            placing the temporary crossing to the said land along the proposed
            road and at his own costs to shift its position from time to time so
            as not to impede the Owner's infrastructure development program.

     (xlii) The Owner shall not be liable to the Licensee or any other person
            for any claim, demand, action, proceeding, inconvenience, damage,
            loss, costs whatsoever that may arise in respect of or in connection
            with Clauses 2(xxxix) to 2(xli) above.

    (xliii) That access to the said land shall be confined only to Serangoon
            North Avenue 5.

     (xliv) Without prejudice to the generality of Clause 2(ix) herein,

            (a)   the Licensee shall construct and complete a retaining wall on
                  the boundary of the said land along Sungei Tonkang as part of
                  slope protection works (hereinafter referred to as "the said
                  retaining wall");

            (b)   the Licensee shall notify the Owner within two weeks of
                  completion of the construction of the said retaining wall
                  together with an audited statement of the cost of construction
                  of the said retaining wall (hereinafter referred to as "the
                  said requisite notice") PROVIDED ALWAYS THAT no compensation
                  shall be payable under Clause 2(xliv) (c) herein by the Owner
                  and/or claimable by the Licensee if the said requisite notice
                  is not duly given;

            (c)   if the said retaining wall shall have been completed to a
                  reasonably acceptable standard and upon due confirmation of
                  the same by the Owner's Technical Services Group, the Owner
                  shall compensate the Licensee for the cost of the construction
                  of the said retaining wall up to a maximum of S$720,000/-
                  (Dollars Seven hundred and twenty thousand only) (hereinafter
                  referred to as "the said compensation") PROVIDED ALWAYS THAT
                  the said compensation shall be paid to the Licensee by
                  deducting the same amount in full or in installments from the
                  license fees that have or will become due.

3. It is hereby mutually agreed that until the Licensee has performed all his
obligations herein contained, the Owner shall possess the rights and powers
following:

            (a)   The right for himself and his agents with or without workmen
                  or others at all reasonable times to enter upon the said land
                  to view the state and progress of the said buildings and works
                  and to inspect and test the materials and workmanship in
                  connection therewith and for any other reasonable purpose
                  including the construction and installation of sewers, drains,
                  pipes and cables on or leading from any adjoining or
                  neighboring land of the Owner as may be required by the Owner.

                                      -9-
<PAGE>   27
         (b)      Full right and liberty in case any of the said buildings and
                  other structures or installations hereby agreed to be erected
                  be not completed and fit for immediate occupation within the
                  period hereinbefore limited (time in this respect shall be of
                  the essence of the contract) and in accordance in every way
                  with the stipulations hereinbefore contained or in case the
                  Licensee shall in any other way fail to perform and observe
                  any of the stipulations on his part herein contained or if any
                  charging order writ of seizure and sale or its equivalent made
                  in respect of the said land or any structure thereon shall be
                  enforced without the written consent of the Owner having first
                  been obtained by the Licensee or by the person in whose favor
                  the charging order writ of seizure and sale or its equivalent
                  shall have been made, to re-enter upon and take possession of
                  the said land and all buildings structures fixtures plant
                  material and effects whatsoever thereon with power to hold and
                  dispose thereof as if this Agreement had not been entered into
                  and without making to the Licensee any compensation or
                  allowance for the same and this Agreement shall thereupon
                  determine but without prejudice to any right of action or
                  other remedy of the Owner for the recovery of any license fee
                  or monies due to him from the Licensee or in respect of any
                  breach of this Agreement PROVIDED ALWAYS THAT if the said land
                  has been assigned by way of mortgage, the provisions of this
                  clause shall not take effect until the Owner has served upon
                  the mortgagee notice in writing specifying the breach and the
                  mortgagee has failed to remedy such breach.

         (c)      PROVIDED nevertheless that notwithstanding any such default as
                  aforesaid in completing the said buildings and works the Owner
                  may in his discretion give notice in writing to the Licensee
                  of his intention not to enforce the stipulations herein
                  contained and may fix any extended period for the completion
                  of the said works in substitution for the said period of two
                  (2) years hereby fixed for such completion and thereupon the
                  obligations hereunder of the Licensee to complete the said
                  works and to accept a lease hereinafter mentioned shall be
                  taken to refer to such substituted period.

         (d)      Without prejudice to the generality of clause 3(b) hereof full
                  right and liberty in the event that the Licensee has failed to
                  either:

                  (1)   develop the said land to the gross plot ratio specified
                        in clause 2(viii), or

                  (2)   fulfil the investment criterion as stipulated in Clause
                        4

                  with full and absolute discretion to the Owner to either:

(i)      re-enter upon and take possession of the said land or any part thereof
         and all buildings, structures, fixtures, plant, material and effects
         whatsoever thereon with power to hold and dispose thereof as if this
         Agreement had not been entered into and without making to the Licensee
         any compensation or allowance for the same and this Agreement shall be

                                      -10-
<PAGE>   28
         thereupon determined but without prejudice to any right or action or
         other remedy of the Owner or recovery of any license fee or monies due
         to him from the Licensee or in respect of any breach of this Agreement,
         or

(ii)     reduce the term of lease proportionately as the actual amount invested
         bears with the required fixed investment on the said land as stipulated
         in clause 4 in which event the Licensee shall execute such documents as
         the Owner shall deem necessary and in connection therewith, pay all
         costs disbursements fees and charges legal or otherwise as provided in
         clause 5.

PROVIDED ALWAYS that if the said land has been assigned by way of mortgage, the
provisions of this sub-clause (d) shall not take effect until the Owner had
served upon the Mortgagee notice in writing specifying the breach and the
Mortgagee has failed to remedy such breach.

4. If the said buildings and works shall have been completely finished to the
satisfaction of the Owner and the relevant Government Building Authorities (to
be evidenced by their certificates in writing to that effect) within the said
period of two (2) years or of such extended period (if any) as aforesaid and if
the Licensee shall have performed and observed all the stipulations herein on
his part contained other than such as may have been waived as aforesaid and if
the Licensee's investment shall have been the sum of $1000 per square metre of
the gross building floor area on building and civil works (of which at least
1.5% thereof up to a maximum of $300,000 must be on landscaping) and the minimum
sum of $500 per square metre of the said land on plant and machinery within
three (3) years from 1st day of October 1994 (due proof of such investment shall
be produced to the satisfaction of the Owner on or before 31st day of March
1998) then the Owner shall grant and the Licensee shall accept and execute a
counter-part of one good and sufficient lease or sub-lease of the said land and
premises together with the buildings so erected thereon with their appurtenances
for the term of thirty (30) years from the 1st day of October 1994 at the rent
and in the form containing the reservation exceptions covenants conditions and
provisions set forth in the FIRST SCHEDULE hereto with such modifications as
circumstances may render necessary and such other covenants, conditions or
stipulations to be performed by the Licensee governing or regulating the use of
the said land as the Owner thinks fit with a view to preserving the value
thereof or protecting the interests of the licensees or occupiers of land or
premises adjacent to the said land from any dangerous or obnoxious or otherwise
harmful activities which may be carried out by the Licensee whether or not such
activities are carried out by the Licensee whether or not such activities are
incidental to the Licensee's trade PROVIDED THAT until such lease is executed
the Licensee shall be deemed to be the Lessee of the said land as though a lease
has been executed at the same rent and subject to the covenants and conditions
contained in the First Schedule.

5. The Licensee shall pay all costs disbursements fees and charges legal or
otherwise including stamp and registration fees in connection with the
preparation stamping and issue of this Agreement and the Lease herein agreed to
be granted and any prior accompanying or future documents or deeds supplementary
collateral or in any way relating to this Agreement and the lease.

                                      -11-
<PAGE>   29
6. The Licensee shall pay all costs and fees legal or otherwise, including the
Owner's costs as between solicitor and client, in connection with the
enforcement of the covenants and conditions of this Agreement and the lease.

7. The Licensee may, at any time during the said period of two (2) years and any
extensions thereof granted under clause 3(c) and subject to the prior written
consent and the conditions of consent of the Owner, terminate this Agreement or
surrender part of the said land PROVIDED ALWAYS THAT such termination or
surrender shall be without prejudice to any right or remedy of the Owner which
may have accrued prior to such termination or the surrender AND PROVIDED FURTHER
THAT the Licensee shall in addition to the license fee (which at the discretion
of the Owner may be apportioned for the period commencing from the date hereof
up to the date of delivery of vacant possession of the said land or part thereof
to the Owner) survey fees, property tax and other charges specified herein pay
to the Owner as liquidated damages a sum made up of firstly an amount equivalent
to three (3) months' license fee, secondly an amount equivalent to one (1)
additional year's property tax and thirdly an amount of $500 being
administrative costs or such other sum as may be determined from time to time by
the Owner, AND PROVIDED FURTHER THAT before the delivery of vacant possession as
aforesaid if the Owner shall so desire the Licensee shall at the cost and
expense of the Licensee render the said land or part thereof as the case may be
to its original state and condition.


                                      -12-
<PAGE>   30
     IN WITNESS WHEREOF the parties hereto have hereunto set their respective
hands or seals the day and year first above written.

SIGNED on behalf of

THE JURONG TOWN CORPORATION

By:  SWEE KEE SIONG
     Deputy Chief Executive Officer

in the presence of: -


                          ----------------------------
                                  KANNAN MALINI


The Common Seal of

MICROPOLIS LIMITED

was hereunto affixed

in the presence of: -


Signature:
           ---------------------------------------
Name:
Designation:


Signature:
           ---------------------------------------
Name:
Designation:


                                      -13-
<PAGE>   31
                                 ACKNOWLEDGMENT

State of
          --------------------------------------------------------------------
County of
          --------------------------------------------------------------------
On           before me,
   ---------            ------------------------------------------------------
personally appeared
                     ---------------------------------------------------------

------------------------------------------------------------------------------


[  ] personally known to me - OR - [  ]  proved to me on the basis of 
                                         satisfactory evidence to be the 
                                         person(s) whose name(s) is/are 
                                         subscribed to the within instrument
                                         and acknowledged to me that he/she/they
                                         executed the same in his/her/their
                                         authorized capacity(ies), and that by
                                         his/her/their signature(s) on the 
                                         instrument the person(s), or the 
                                         entity upon behalf of which the 
                                         person(s) acted, executed the 
                                         instrument.

                                    WITNESS my hand and official seal.


                                    ----------------------------------
                                    Signature of Notary

------------------------------------------------------------------------------
CAPACITY CLAIMED BY SIGNERS               DESCRIPTION OF ATTACHED DOCUMENTS

[  ]CORPORATE OFFICER                     BUILDING AGREEMENT

-----------------------                   ------------------------------------
Title                                     Title or Type of Document

-----------------------                   ------------------------------------
Title                                     Number of Pages

SIGNERS ARE REPRESENTING:
                                          ------------------------------------
                                          Date of Document


MICROPOLIS LIMITED
---------------------------               ------------------------------------
                                          Signer(s) Other than Named Above


                                      -14-
<PAGE>   32
                      THE FIRST SCHEDULE ABOVE REFERRED TO

                                     FORM 19
                               THE LAND TITLES ACT
                                  (CHAPTER 157)

                                                             OFFICE USE ONLY




                                      LEASE

                         (WITH RESERVATION OF EASEMENT)

DESCRIPTION
OF LAND

   Reference to
   Land Register          Town                          Description of Land
 Volume     Folio     Sub-division     Mukim     Lot   (whether whole or part)
 ------     -----     ------------     -----     ---   -----------------------


                                   THE LESSOR
LESSOR


JURONG TOWN CORPORATION, a body corporate                   OFFICE USE ONLY
incorporated under the Jurong Town Corporation Act
and having its office at Jurong Town Hall, Jurong
Town Hall Road, Singapore 2260.

                  (the registered proprietor) HEREBY LEASES the registered
                  estate or interest in the land above described to

                                   THE LESSEE

LESSEE

               MICROPOLIS LIMITED                    OFFICE USE
                                                        ONLY


                                      -15-
<PAGE>   33
TERM OF LEASE     as tenant for the term of thirty (30) years commencing the 1st
                  day of October 1994, in consideration of the minimum
                  investment by the Lessee of $1,000 per square metre of the
                  gross building floor area on building and civil works (of
                  which at least 1.5% thereof up to a maximum of $300,000 must
                  be on landscaping) and $500 per square metre of the demised
                  premises on plant and machinery, (hereinafter referred to as
                  "the fixed investment criteria") and YIELDING and PAYING
                  therefor from the 1st day of July 1995 the yearly rent of
                  Dollars Nine hundred and eighty thousand seven hundred and
                  seventy-one only ($980,771) to be paid by equal quarterly
                  installments on the first day of each of the months of
                  January, April, July and October in every year of the said
                  term without any deduction and in advance without demand at
                  the office of the Lessor or at such other office as the Lessor
                  may designate calculated at the rate of $54.70 per square
                  metre per annum (hereinafter referred to as "the Initial
                  Rent") of the demised premises having an area of 17,930 square
                  metres (hereinafter referred to as "the preliminary survey
                  area", which may at any time be adjusted on completion of
                  final survey, if any, and in which event if the area adjusted
                  exceeds five square metres more, or less, than the preliminary
                  survey area the rental paid or payable by the Lessee shall
                  accordingly also be adjusted and be paid and payable or
                  refunded as the case may be in respect of the full difference
                  between the preliminary survey area and the final survey area,
                  with retrospective effect from the commencement of the said
                  term of the Lease herein), which rate shall be subject to
                  revision on the 1st day of July 1996 at the rate based on the
                  market rent on the date of such revision determined in the
                  manner following but so that the increase shall not exceed
                  7.6% of the Initial Rent. The yearly rent so revised on the
                  1st day of July 1996 shall be subject to revision on the 1st
                  day of July of every year thereafter at the rate based on the
                  market rent on the respective dates determined in the manner
                  following but so that the increase shall not exceed 7.6% of
                  the annual rent for each immediately preceding year. The
                  market rent in this context shall mean the rent per square
                  metre per annum of the demised premises excluding the
                  buildings and other structures erected thereon and shall be
                  determined by the Lessor on or about the dates mentioned (and
                  payable retrospectively with effect from the dates mentioned
                  if determined after the dates mentioned) and the decision of
                  the Lessor shall be final.

                  AND RESERVING to the Lessor as APPURTENANT TO

DESCRIPTION
OF LAND

<TABLE>
<CAPTION>
   Reference to
   Land Register        Town                        Description of Land
 Volume     Folio   Sub-division   Mukim     Lot   (whether whole or part)
 ------     -----   ------------   -----     ---   -----------------------
<S>                                 <C>
                                    18
</TABLE>

                                      -16-
<PAGE>   34
            a RIGHT OF PASSAGE AND RUNNING of water, soil, electricity, power,
            gas, telephone communication and other similar amenities from the
            adjoining and neighboring premises thereon through sewers, drains,
            pipes, channel, cables and ducts upon or under the land hereinafter
            described and to make connections with such sewers, drains, pipes,
            channels, cables and ducts or any of them for the purpose of
            exercising the said right of passage and of running the aforesaid
            amenities over the land hereinafter described.


DESCRIPTION OF
LAND
(Reservation of right
of passage and
running of amenities
over land hereby
transferred)

<TABLE>
<CAPTION>
 Reference to                                     Whole or part
 Land Register       Town                       (If part only give
Volume   Folio   Sub-division    Mukim    Lot        details)
------   -----   ------------    -----    ---        --------
<S>                               <C>
                                  18
</TABLE>

            SUBJECT TO:

PRIOR                           PRIOR ENCUMBRANCE
ENCUMBRANCES
                                       NIL

AND the following:

                            COVENANTS AND CONDITIONS

     (a)    the covenants, conditions and powers implied by law in instruments 
            of lease (or to such of them as are not hereinafter expressly 
            negatived or modified);

     (b)    the covenants and conditions set forth in the Memorandum of Lease
            filed in the Registry of Titles and numbered as ML I/30809F with the
            exception of covenants 1(x) and 1(xxv) of ML I/30809F.


                        SPECIAL COVENANTS AND CONDITIONS


1.   (x)    As often as any building or structure on the demised premises or any
            part thereof shall be destroyed or damaged as aforesaid forthwith to
            give to the Lessor written notice of such destruction or damage and
            forthwith to cause all monies received by virtue of such insurance
            to be laid out in rebuilding and reinstating the same to the
            satisfaction of the Lessor and in accordance with the plans and
            specifications approved by the Lessor and in accordance with the
            laws, bylaws regulations and planning schemes of every relevant
            governmental and statutory authority prevailing at the time, and in
            case the monies so received shall be insufficient for that purpose
            then to make up the deficiency out of his own 

                                      -17-
<PAGE>   35
            monies PROVIDED THAT the rebuilding and reinstatement shall in any
            event commence and be completed within the period specified by the
            Lessor.

     (xxv)  Subject always to Clause 1(xi) of ML I/30809F, to give to the Lessor
            written notice of every change of name within one month from the
            date of each change.

     (xxxvi)Not to use or permit or suffer the demised premises or any part
            thereof to be used otherwise than for the manufacture of disk
            drives, related subassemblies, storage systems and related
            electronic/information technology products only except with he prior
            consent in writing of the Lessor. In giving its consent, the Lessor
            may in its absolute discretion require, inter alia, the Lessee to
            meet the fixed investment criteria and to show due proof within such
            period of time as the Lessor may stipulate, and in the event of the
            non- observance thereof, the Lessor shall be entitled to exercise
            its rights under clause 3(c) of ML I/30809F. For the avoidance of
            any doubt, the words "meet" in this clause and "met" in clause (xi)
            shall include the maintenance of the fixed investment criteria and
            if it has not been maintained then that it be met.

     (xxxvii)Without prejudice to clause 1(viii) of ML I/30809F to ensure that
            the gross plot ratio shall not be less than 2.0 and not more than
            2.5.

     (xxxviii)Not to keep or allow to be kept any livestock or other animals at
            the demised premises or any part thereof.

     (xxxix)At the Lessee's own cost and expense and subject to the Lessor's
            prior written approval, to execute such works as may be deemed
            necessary by the Lessee in respect of the state and condition of the
            demised premises (especially its ground levels, topography and soil
            conditions) which state and condition the Lessee shall be deemed to
            have full knowledge.

     (xl)   without prejudice to the generality of Clauses 1(iii) and 1(vii) in
            ML I/30809F, the rent and other taxable sums payable by the Lessee
            under or in connection with this lease shall be exclusive of the
            goods and services tax (hereinafter called "tax") chargeable by any
            government, statutory or tax authority calculated by reference to
            the amount of rent and any other taxable sums received or receivable
            by the Lessor from the Lessee and which tax is payable by the
            Lessee. The Lessee shall pay the tax and the Lessor acting as the
            collecting agent for the government, statutory or tax authority
            shall collect the tax from the Lessee together with the rent
            hereinbefore reserved without any deduction and in advance without
            demand on the 1st day of each of the months of January, April, July
            and October, and in the manner and within the period prescribed in
            accordance with the applicable laws and regulations.

     (xli)  At all times and at his own cost and expense, to comply with and
            observe any height restriction on buildings and structures at the
            demised premises which may be imposed by any governmental or
            statutory authority and to ensure that the maximum height for any
            building and structures on the demised premises shall not exceed 36
            metres AGL.


                                      -18-
<PAGE>   36
     (xlii) Without prejudice to the generality of Clause 1(vii) of ML I/30809F,
            the Lessee shall not place, construct or erect or permit the
            placing, construction or erection of any building, structure or
            equipment whatsoever on the 3.0-metre wide sewer easement and buffer
            situated within the boundary of the demised premises shown on the
            plan annexed hereto.

     (xliii)That the access to the demised premises shall be confined only to
            Serangoon North Avenue 5.

2.A The Lessor further covenants with the Lessee that he shall grant to the
Lessee a lease of the demised premises for a further term of thirty (30) years
(hereinafter referred to as "the further term") from the expiry of the said term
upon the same terms and conditions and containing like covenants as are
contained in this lease with the EXCEPTION of the present covenant for renewal
PROVIDED THAT:

     (i)    the Lessee shall have made a minimum investment of $1,000/- per
            square metre of the gross building floor area on building and civil
            works of which at least 1.5% of the building cost up to a maximum or
            $300,000/- must be on landscaping and $500/- per square metre of the
            demised premises on plant and machinery, (also referred to as "the
            fixed investment criteria") within three (3) years from the 1st day
            of October 1994 and due proof of such investment is produced to the
            satisfaction of the Lessor on or before the 31st day of March 1998;

     (ii)   Subject to clause 1(viii) of ML I/30809F, there shall be a gross
            plot ratio of not less than 2.0 and not more than 2.5;

     (iii)  at the time due proof of such investment is produced and at the
            expiry of the said term, there be no existing breach or
            no-observance of any of the covenants and conditions herein
            contained on the part of the Lessee to be observed or performed;

     (iv)   the rental payable for the further term shall be as set out 
            hereunder;

            (a)   the yearly rent for the further term shall be at the rate
                  based on the market rent at the commencement of the further
                  term (hereinafter referred to as "the Second Initial Rent")
                  which rate shall however be subject to a revision on the 1st
                  day of October 2025 to a rate based on the market rent on the
                  date of such revision determined in the manner following but
                  so that the increase shall not exceed 7.6% of the Second
                  Initial Rent;

            (b)   the yearly rent so revised on the 1st day of October 2025
                  shall be subject to revision on the 1st day of October of
                  every year thereafter at the rate based on the market rent on
                  the respective dates determined in the manner following but so
                  that the increase shall not exceed 7.6% of the annual rent for
                  each immediately preceding year;

                                      -19-
<PAGE>   37
            (c)   the yearly rent for the further term shall be payable by equal
                  quarterly installments without any deductions and in advance
                  without demand on the 1st day of each of the months of
                  January, April, July and October in every year of the further
                  term at the office of the Lessor or at such other office as
                  the Lessor may designate the 1st of such payments to be made
                  on or before the commencement of the further term;

            (d)   for the purposes of (a) and (b) above, the market rent shall
                  mean the rent per square metre per annum of the demised
                  premises excluding the buildings and other structures erected
                  thereon and shall be determined by the Lessor on or about the
                  dates mentioned (and payable retrospectively with effect from
                  the dates mentioned if determined after the dates mentioned)
                  and the decision of the Lessor shall be final;

     (v)    if required by the Lessor, the Lessee shall within four (4) months
            from the commencement of the further term and at his own cost and
            expense, carry out and complete such improvements to the landscaping
            at the demises premises as may be stipulated in writing by the
            Lessor;

     (vi)   the Lessee shall six (6) months before the expiry of the said term
            submit, for the approval of the Lessor and the relevant governmental
            and statutory authorities, plans for the upgrading of the exterior
            of buildings on the demised premises to the same highest quality of
            new buildings which the Lessor will be building at that time, and
            the lessee shall expeditiously do all acts and things necessary to
            obtain the approval, all the cost and expense of the Lessee; and

     (vii)  the Lessee shall at his own cost and expense complete within
            eighteen (18) months from the commencement of the further term, the
            upgrading of the buildings in accordance with the plans approved by
            the Lessor and the relevant governmental and statutory authorities
            and to the satisfaction of the Lessor.

3. This Lease shall be interpreted in accordance with the laws of Singapore and
any legal proceedings, actions or claims arising from or in connection with this
Lease herein shall be commenced in and heard before the courts of Singapore and
the Lessee agrees to submit itself to the jurisdiction of the courts of
Singapore.


                                      -20-
<PAGE>   38
                  DATE OF LEASE
                                 ------------------------------------------


EXECUTION         THE COMMON SEAL OF                  )
BY LESSOR         JURONG TOWN CORPORATION             )
                  was hereunto affixed in             )
                  the presence of :-                  )

                                       -------------------------------
                                          CHIEF EXECUTIVE OFFICER


                                       -------------------------------
                                          SECRETARY


EXECUTION         THE COMMON SEAL OF                  )
BY LESSEE                                             )
                  was hereunto affixed in             )
                  the presence of :-                  )

                                       -------------------------------


                                       -------------------------------


                  I,
                  a duly authorized officer of the Jurong Town corporation,
                  under Section 31 of the Jurong Town Corporation Act (Cap 150)
                  for and on behalf of the Lessor hereby certify that this
                  instrument is correct for the purposes of the Land Titles Act.

                  I,
                  the Solicitor of the Lessee hereby certify that this
                  instrument is correct for the purposes of the Land Titles Act.



                                      -21-
<PAGE>   39
                       BELOW THIS LINE FOR OFFICE USE ONLY


Special Remarks                           Endorsing Instruction

                                          First Schedule:




                                          Second Schedule:



EXAMINED                                            REGISTERED ON


Date:




                                                    REGISTRAR OF TITLES
                                          Initials of
                                          Signing
                                          Officer


                                      -22-
<PAGE>   40
                                                                     ML I/30809F

                                                             OFFICE USE ONLY


                               THE LAND TITLES ACT

                                  (CHAPTER 157)

                                                           $




                               M E M O R A N D U M


To the Registrar of Titles

On behalf of the JURONG TOWN CORPORATION, a body corporate incorporated under
the Jurong Town corporation Act and having its office at Jurong Town hall,
Jurong Town Hall Road, Singapore, the Registered proprietor.

I, GLORIA ONG SIEW CHOO, certify that this memorandum (comprising seven pages),
contains the provisions which are deemed to be incorporated in any instrument in
which the abovementioned corporation is named as a lessor and such instrument
has reference to this memorandum.


                                          Signature
                                          Authorized Officer


LODGED BY:                                Filed in the REGISTRY OF TITLES
Jurong Town Corporation                   ON 26TH JUNE, 1990
Jurong Town Hall
Jurong Town Hall Road
Singapore 2260                            REGISTRAR OF TITLES



                                      -23-
<PAGE>   41
                        SPECIAL COVENANTS AND CONDITIONS

1.   The Lessee hereby covenants with the Lessor as follows:-

     (i)    To pay the yearly rent hereinbefore reserved on the days and in the
            manner appearing in the reddendum.

     (ii)   To pay unto the Lessor on demand by way of additional rent a sum
            equal to all such sums as the lessor may from time to time pay for
            insuring and keeping insured the demised premises against loss or
            damage by fire in case the Lessee shall make default in insuring and
            keeping insured the demised premises pursuant to the covenant in
            that behalf hereinafter contained PROVIDED ALWAYS THAT nothing
            herein shall render it obligatory on the part of the Lessor to
            insure and keep insured the demised premises or any part thereof.

     (iii)  To pay all rates taxes assessments and outgoings whatsoever which
            now are or which at any time hereafter during the said term may be
            imposed or charged upon or in respect of the demised premises or any
            part thereof.

     (iv)   To repair and keep in tenantable repair the demised premises and
            every part thereof throughout the said term.

     (v)    To pay a reasonable proportion of the expense of constructing,
            repairing, rebuilding and cleansing all party walls, fences, sewers,
            drains, pipes, water-courses and other things the use of which is
            common to the demised premises and the occupiers of any adjoining or
            neighboring premises and such proportion in the case of a dispute
            shall be conclusively determined by the Lessor's surveyor for the
            time being.

     (vi)   To permit the Lessor and his surveyors or agents with or without
            workmen or others during the said term at reasonable times in the
            day-time to enter upon the demised premises and every part thereof
            to examine the state and condition of the same and of defects,
            decays and wants of reparations and of all breaches of covenant
            there found and the Lessor may thereupon serve on the lessee notice
            in writing by leaving the same at or on the demised premises to or
            for the Lessee to make good the same within such reasonable time as
            specified in such notice.

     (vii)  To perform and observe all the obligations which the lessor of the
            demised premises may be liable to perform or observe during the term
            hereby created by any direction or requirement of any governmental
            or statutory authority and if the Lessee shall fail to observe or
            perform this covenant the lessor may in its absolute discretion
            perform the same and all expenses and costs incurred thereby shall
            be recoverable from the Lessee as a debt PROVIDED ALWAYS THAT the
            lessor shall not be liable to the Lessee for any loss damage or
            inconvenience caused thereby.


                                      -24-
<PAGE>   42
     (viii) Not to make or cause to be made any addition or alteration affecting
            the elevation external structure or stability of the demised
            premises or any part thereof without the prior written consent of
            the Lessor and the relevant governmental and statutory authorities
            PROVIDED THAT on the granting of such consent and without prejudice
            to other terms and conditions which may be imposed the Lessee shall
            give to the Lessor security that the proposed addition alteration or
            rebuilding will in fact be carried out within a reasonable time.

     (ix)   Forthwith to insure and keep insured the demised premises against
            loss or damage by fire to the full value thereof with a well
            established insurance company approved by the Lessor and to make all
            payments necessary for that purpose within seven days after the same
            shall become payable and upon reasonable notice to produce to the
            Lessor the Policy or policies of such insurance and the receipts for
            all such payments.

     (x)    As often as the demised premises or any part thereof shall be
            destroyed or damaged as aforesaid forthwith to cause all monies
            received by virtue of such insurance to be laid out in rebuilding
            and reinstating the same in accordance with the plans and
            specifications approved by the Lessor and in accordance with the
            existing laws, bylaws, regulations and planning schemes of every
            relevant governmental and statutory authority prevailing at the time
            and in case the monies so received shall be insufficient for that
            purpose then to make up the deficiency out of his own monies
            PROVIDED THAT the rebuilding and reinstatement shall in any event
            commence and be completed within the period specified by the Lessor.

     (xi)   Not to demise, assign, mortgage, let, sublet or underlet or grant a
            license or part with or share the possession or occupation of the
            demised premises in whole or in part without first obtaining the
            consent of the Lessor in writing. The restrictions contained in
            Section 17 of the Conveyancing the Law of Property Act (Chapter 61)
            shall not apply. In addition, the Lessor may in its absolute
            discretion in giving the consent require, intr alia, that the fixed
            investment criteria be met and due proof thereof be shown within
            such period of time as the Lessor may stipulate, and in the event of
            the non-observance thereof, the Lessor shall be entitled to exercise
            its rights under Clause 3(c) herein.

     (xii)  Within six months of the devolution of the interest of the Lessee
            not perfected by an assent to give notice thereof in writing with
            particulars thereof to the Lessor and produce to the Lessor such
            documentary evidence as may be required by the Lessor.

     (xiii) Not to use the demised premises or any part thereof for any illegal
            or immoral purpose and not to do or permit or suffer to be done upon
            the demised premises anything which in the opinion of the Lessor may
            be or become a nuisance, annoyance or cause damage or inconvenience
            to the Lessor or his lessees or the occupiers of any adjoining or
            neighboring premises or whereby any insurance for the time being
            effected on the demised premises may be rendered void or voidable or
            be in any way affected.


                                      -25-
<PAGE>   43
     (xiv)  Not without the prior consent in writing of the Lessor to affix or
            exhibit or erect or paint or permit or suffer to be affixed or
            exhibited or erected or painted on or upon any part of the exterior
            of the demised premises or of the external rails or fences thereof
            any nameplate signboard placard poster or other advertisement or
            hoarding

     (xv)   To make reasonable provision against and be responsible for all loss
            injury or damage to any person or property including that of the
            Lessor for which the Lessee may be held liable arising out of or in
            connection with the occupation and use of the demised premises and
            to indemnify the Lessor against all proceedings claims costs and
            expenses which he may incur or for which he may be held liable as a
            result of any act neglect or default of the Lessee his servants
            contractors sub-contractors or agents.

     (xvi)  To pay interest at the rate of 8.5% per annum or such higher rate as
            may be determined from time to time by the Lessor in respect of any
            arrears of rent or other outstanding sums due and payable under this
            Lease form the due dates thereof until payment in full is received
            by the Lessor.

     (xvii) AT the termination, by expiry or otherwise, of the term hereby
            created, to yield up the demised premises to the Lessor in
            tenantable repair in accordance with the Lessee's covenants herein
            contained PROVIDED THAT, if so required by the Lessor and upon
            notice thereof, the Lessee shall remove the fixtures and fittings,
            or any part thereof, as may be specified by the Lessor and reinstate
            the demised premises to the satisfaction of the Lessor and if the
            Lessee shall fail to observe or perform this covenant the Lessor
            shall execute such works and recover the costs thereof from the
            Lessee as a debt.

     (xviii)To make good and sufficient provision for the safe and efficient
            disposal of all waste including but not limited to pollutants to the
            requirements and satisfaction of the Lessor PROVIDED THAT in the
            event of default by the Lessee under this covenant theLessor may
            carry out such remedial measures as he thinks necessary and all
            costs and expenses incurred thereby shall forthwith be recoverable
            from the Lessee as a debt.

     (xix)  Not to do or omit or suffer to be done or omitted any act, matter or
            thing in or on the demised premises in respect of the operations
            business, trade or industry carried out or conducted therein which
            shall contravene the provisions of any laws, bylaws, orders, rules
            or regulations now or hereafter affecting the same but at his own
            cost and expense to comply with all such provisions and at all times
            hereafter to indemnify and keep indemnified the Lessor against all
            actions, proceedings, costs, expenses, claims, fines, losses,
            penalties and demands in respect of any act, matter or thing done or
            omitted to be done in contravention of the said provisions.

     (xx)   To pay all costs disbursements fees and charges legal or otherwise
            including stamp and registration fees in connection with the
            preparation stamping and issue of this Lease and any prior
            accompanying or future documents or deeds supplementary collateral
            or in any way relating to this Lease.


                                      -26-
<PAGE>   44
     (xxi)  To pay all cost and fees legal or otherwise including costs as
            between solicitor and client in connection with the enforcement of
            the covenants and conditions herein.

     (xxii) To pay to the Lessor all survey fees and other charges including
            those payable to and claimed by the relevant Government Planning
            Authorities and other relevant governmental and statutory
            authorities for the survey of the demised premises for the purpose
            of subdivision of the land of which the demised premises forms part
            and issue of this Lease and a Certificate of Title PROVIDED THAT the
            Lessor shall have the right to employ his own surveyor to carry out
            the said survey in which event the Lessee shall bear all costs
            thereby incurred.

     (xxiii)At his own cost to take such steps and execute such works upon the
            demised premises as may be necessary for the protection of shores
            and embankments if any and for the prevention of earthslip erosion
            of soil and failure of slopes expeditiously in a workmanlike manner
            and to the satisfaction of the Lessor.

     (xxiv) To construct an internal drainage system within the demised premises
            to the satisfaction of the Lessor to ensure that all surface water
            collected thereon is discharged into the public drains.

     (xxv)  Not to effect a change of name except with the prior consent in
            writing of theLessor PROVIDED THAT on every change of name the
            Lessee shall pay to the Lesor a fee to be specified by the Lessor in
            relation to such consent.

     (xxvi) To perform and observe the covenants on the Lessor's part contained
            in the Head Lease made between the President of the Republic of
            Singapore and the Lessor so far as they are not varied herein and to
            keep theLessor indemnified against all claims damages costs and
            expenses in any way relating thereto.

     (xxvii)To maintain the demised premises and every part thereof in a neat
            and tidy condition, and forthwith to comply with the Lessor's
            direction to remove and clear any materials, goods or articles o
            whatever nature and description from the demised premises or such
            part thereof as may be stipulated in writing by the Lessor.

     (xxviii)At his own cost to plant and maintain trees and landscape the
            demised premises in accordance with all the requirements of the
            Parks and Recreation Department, Ministry of National Development
            and other relevant governmental and statutory authorities.

     (xxix) Not to install or use any electrical installation, machine or
            apparatus that may cause or causes heavy power surge, high frequency
            voltage and current, air borne noise, vibration or any electrical or
            mechanical interference or disturbance whatsoever which may prevent
            or prevents in any way the service or use of any communication
            system or affects the operation of other equipment, installations,
            machinery, apparatus or plants of other lessees in connection
            therewith, to allow the Lessor or any authorized person to inspect
            at all

                                      -27-
<PAGE>   45
            reasonable times, such installation, machine or apparatus in
            the demised premises to determine the source of the interference or
            disturbance and thereupon, to take suitable measures, at the
            Lessee's own expense, to eliminate or reduce such interference or
            disturbance to the Lessor's satisfaction, if it is found by the
            Lessor or such authorized person that the Lessee's electrical
            installation, machine or apparatus is causing or contributing to the
            said interference or disturbance.

     (xxx)  To indemnify the Lessor against each and every claim, proceeding,
            action, loss, penalty, damage, expense, cost and demand which may
            arise in connection with clause (xxix) above.

     (xxxi) At the Lessee's own cost to execute such works as may be necessary
            to divert existing utility services such as pipes, cables and the
            like (if any) to the requirements and satisfaction of the Lessor and
            other relevant governmental and statutory authorities.

     (xxxii)Subject to that clause in the special Covenants and Conditions of
            this Lease which stipulates the specific use the Lessor permits for
            the demised premises, the Lessee shall use and shall ensure that at
            least sixty per centum (60%) of the total floor area of the demised
            premises shall be used for purely industrial activities, and may use
            the remaining floor area for ancillary stores and offices, neutral
            areas, communal facilities and such other uses as may be approved in
            writing by the Lesor and the relevant governmental and statutory
            authorities PROVIDED THAT the governmental and statutory authorities
            PROVIDED THAT the said ancillary offices shall not exceed
            twenty-five per centum (25%) of the total floor area AND PROVIDED
            FURTHER THAT the Lessee shall not use and occupy the demised
            premises for the purpose of commercial office and storage unrelated
            to the Lessee's approved industrial activity.

     (xxxiii)If the Lessee shall at any time be found to have encroached upon 
            any area beyond the boundaries of the demised premises, the Lessee
            shall at his own cost and expenses, but without prejudice to any
            other right or remedy the Lessor may have against him, immediately
            or within the time specified (if any) by the Lessor rectify and
            remove the encroachment to the satisfaction of the Lessor and pay to
            the Lessor such compensation as may be specified by the Lessor. If,
            however, the Lessor in his absolute discretion permits the Lessee to
            regularize and retain the encroached area or any part thereof upon
            such terms and conditions as may be stipulated by the Lessor and any
            other relevant governmental and statutory authorities, the Lessee
            shall pay land rent on the encroached area with retrospective effect
            from the date of commencement of the term hereby created, and the
            Lessee shall also pay all survey fees, amalgamation fees, legal fees
            (including solicitor and client costs and expenses), and all other
            costs and charges relating thereto.

     (xxxiv)If any damage of whatsoever nature or description shall at any time
            occur or be caused to the demised premises or any part thereof, to
            forthwith give to the Lessor written notice of the damage and to
            remedy the damage to the satisfaction of the Lessor within such time
            as the Lessor may specify, all at the cost of the Lessee.

                                      -28-
<PAGE>   46
     (xxxv) Not to keep or permit to be used or stored in the demised premises
            or any part thereof any materials of a dangerous or explosive nature
            without the prior consent in writing of the Lessor and to keep the
            Lessor indemnified against all damages claims and action caused by
            the use of storage of such materials whether or not the same is done
            with the consent of the Lessor.

2. The Lessor hereby covenants with the Lessee that the Lessee paying the rent
hereinbefore reserved and performing and observing the covenants conditions and
agreement on the part of the Lessee hereinbefore contained shall peaceably hold
and enjoy the demised premises during the term hereby granted without any
interruption of or by the Lessor or any person lawfully claiming through under
or in trust for him.

3.          PROVIDED ALWAYS and it is hereby agreed between the parties as 
            follows:

            (a)   That no estate or interest in the soil of the road and
                  footpath adjacent to the demised premises is or shall be
                  deemed to be included in the demise thereinbefore contained.

            (b)   That the Lessee shall not be entitled to any right of access
                  of light or air to the demised premises or any part thereof,
                  which would restrict or interfere with the user of any
                  adjoining or neighboring land for building or any other
                  purpose.

            (c)   That if the said rent hereby reserved or any part thereof
                  shall be unpaid for fourteen days after becoming payable
                  (whether the same shall have been formally demanded or not) or
                  if any of the covenants or obligations on the part of the
                  Lessee herein contained shall not be performed or observed or
                  if any charging order made in respect of the demised premises
                  shall be enforced by sale or by entry into possession without
                  the written consent of the Lessor having first been obtained
                  (Section 17 of the Conveyancing and Law of Property Act shall
                  also not apply in such event) by the Lessee or by the person
                  in whose favor the charging order shall have been made, then
                  and in any such case it shall be lawful for the Lessor or any
                  person or persons authorized by him in that behalf at any time
                  thereafter to re-enter upon the demised premises or any part
                  thereof in the name of the whole and thereupon the term hereby
                  created shall absolutely determine but without prejudice to
                  any right of action or remedy of the Lessor in respect of any
                  breach of any of the covenants or conditions by the Lessee
                  herein contained PROVIDED THAT if the demised premises have
                  been assigned by way of mortgage the provisions of this clause
                  shall not take effect until the Lessor has served upon the
                  mortgagee a notice in writing that such breach has occurred
                  and the mortgagee has failed to remedy such breach.

4. In this Lease where the context so requires or permits, words importing the
singular number or the masculine gender include the plural number or the
feminine gender and words importing persons include corporation and vice versa,
the expression "the Lessor" shall include its successors-in-title

                                      -29-
<PAGE>   47
and assigns, the expression "the Lessee" shall include its successors-in-title
and permitted assigns (if any), where there are two or more persons included in
the expression "the Lessee" covenants expressed to be made by "the Lessee" shall
be deemed to be made by such persons jointly and severally, and except where
otherwise provided the expression "the demised premises" shall mean the land
hereby demised and all buildings, structures, fixtures and fittings therein.


                                      -30-
<PAGE>   48
                       BELOW THIS LINE FOR OFFICE USE ONLY




Special Remarks                           Endorsing Instruction

                                          First Schedule:




                                          Second Schedule:



EXAMINED                                                 REGISTERED ON



Date:


                                                         REGISTRAR OF TITLES
                                          Initials of
                                          Signing
                                          Officer


                                      -31-
<PAGE>   49
                                    EXHIBIT C

                               DEED OF ASSIGNMENT

            THIS DEED OF ASSIGNMENT is made the 29th day of March One thousand
nine hundred and ninety-six (1996) between MICROPOLIS LIMITED, a foreign company
incorporated in the Cayman Islands and having its registered office in Singapore
at 5004 Ang Ma Kio Avenue 5 #01-11, Singapore 569872 (hereinafter called "the
Assignor") of the one part and S T CHATSWORTH PTE LTD (Company Registration No.
199600543C) a company incorporated in the Republic of Singapore and having its
registered office at 83 Science Park Drive #01-01/02 The Curie Singapore Science
Park, Singapore 118258 (hereinafter called "the Assignee") of the other part.

            WHEREAS:

(1) By a Building Agreement dated the 28th day of February 1995 (hereinafter
called "the Building Agreement" which expression shall where the context so
requires, include the Lease and any other document(s) executed/to be executed
between the Assignor and JURONG TOWN CORPORATION relating to the said land) made
between JURONG TOWN CORPORATION, a body corporate incorporated under the Jurong
Town Corporation Act and having its Head Office at Jurong Town Hall, Jurong Town
Hall Road, Singapore 609431 (herein called "the Lessor") of the one part and the
Assignor of the other part, the Lessor agreed to grant to the Assignor the
license and authority to enter upon the land described in the Building Agreement
and more particularly described in the Schedule hereto (herein called "the said
land") for inter alia the construction of a building and for the installation of
equipment machinery fixtures and fittings (hereinafter collectively referred to
as the "Building") and upon completion of the Building and satisfactory
compliance by the Assignor of all the terms and conditions contained inter alia
in the Building Agreement, the Lessor will grant and the Assignor will accept
and execute a Lease (herein referred to as "the Lease" which expression shall
include all such supplemental lease(s), assurance(s) or document(s) of title) of
the said land together with the Building for the term of years and subject to
the terms and conditions contained in the format set out in the First Schedule
to the Building Agreement or otherwise.

            AND WHEREAS the Assignor has agreed to assign to the Assignee all
its rights title and interest under the Building Agreement and to the Lease to
be issued by the Lessor for the consideration of Dollars Forty One Million
($41,000,000.00) and the Lessor has consented to the assignment subject to the
stipulations terms and conditions and covenants contained in the Building
Agreement and the Lessor's letter of approval dated ___________________ to the
Assignor's solicitors M/s Arthus Loke & Partners.

            AND WHEREAS the Lease in respect of the said land has not yet been
issued to the Assignor.


                                      -32-
<PAGE>   50
            NOW THIS DEED WITNESSETH as follows:

1. In pursuance of the said agreement and in consideration of the sum of Dollars
Forty One Million ($41,000,000.00) paid by the Assignee to the Assignor (the
receipt whereof the Assignor hereby acknowledges) the Assignor as beneficial
owner and with the consent of the Lessor HEREBY ASSIGNS unto the Assignee:

            (a)   ALL its right title interest, benefits, advantages, permits,
                  licenses and remedies which the Assignor has in, under or
                  arising out of the Building Agreement and the full benefit and
                  advantages thereof and of all stipulations therein contained
                  to be performed on the part of the Lessor and of all rights
                  and remedies for enforcing the same;

            (b)   ALL THAT the right, title, estate and interest of the Assignor
                  of and in the said land and the Building;

            (c)   ALL THAT the full benefit and right of and to all moneys
                  whether by way of purchase price premium rents or otherwise as
                  shall have been paid by the Assignor to the Lessor under and
                  by virtue of the Building Agreement; and

            (d)   ALL THAT the right title and interest of the Assignor to a
                  grant from the Lessor of an Agreement to Lease/Lease of
                  sub-lease (whichever is applicable) in respect of the said
                  land and the Building for the terms of lease referred to in
                  the Building Agreement.

            TO HOLD the same unto the Assignee its successors and assigns
absolutely.

2.          The Assignor hereby covenants with the Assignee as follows:

            (a)   that the Assignor will do and execute all such acts and deeds
                  and procure from the Lessor the grant of such Agreement for
                  Lease/Lease or sub-lease in favor of the Assignee in the form
                  of Lease set out in the Second Schedule to the building
                  Agreement.

            (b)   that until such Agreement for Lease/Lease or sub-lease has
                  been granted to the Assignee as aforesaid the Assignor holds
                  and will hold all the rights, title, interest, benefits,
                  advantages, permits, licenses and remedies in and under the
                  Building Agreement and all the estate, rights, title and
                  interest of and in the said land and the Building in trust for
                  the Assignee its successors in title and assigns absolutely
                  and will at any time and from time to time when called upon at
                  the request of the Assignee execute and do all such acts deeds
                  matters and things as may be necessary to cause the said land
                  and the Building to be more effectually vested in the
                  Assignee, its successors in title and assigns and exercise all
                  rights ans remedies for the Assignee and on behalf of the
                  Assignee.


                                      -33-
<PAGE>   51
5. In pursuance of the Building Agreement and for the consideration aforesaid
and with a view to giving protection to the rights and interests of the Assignee
herein the Assignor HEREBY IRREVOCABLY APPOINTS the Assignee to be the true and
lawful attorney for an in the name of or otherwise on behalf of the Assignor to
exercise all the rights and remedies vested in the Assignor under the Building
Agreement and for such purposes to do and execute all or any of the following
acts deeds matters and things that is to say:

            (a)   To exercise all rights and remedies for enforcing the Building
                  Agreement or in respect of any other matter or thing connected
                  with or relating to or concerning the said land.

            (b)   To commence and/or defend all legal proceedings brought
                  against and/or by the Lessor in connection with the Building
                  Agreement or in respect of the said land.

            (c)   To take delivery of and accept from the Lessor the Agreement
                  for Lease/Lease or sub-lease and/or such other assurance of or
                  documents of title to the said land in the name of the
                  Assignor or to the Assignee and to make all payments enter
                  into covenants and do all other things which may be necessary
                  for completing the same including all such applications and
                  notifications at the Registry of Deeds or the Registry of
                  Titles as may be necessary or desirable under any then
                  existing statute providing for the registration of title to
                  land.

            (d)   To execute such Agreement for Lease/Lease or sub-lease and/or
                  such other transfer or transfers or assurance or assurances or
                  other deeds assignments instruments and documents and to do
                  all such acts and things as may be necessary to effectually
                  transfer, perfect and vest the title to the said land in the
                  Assignee.

            (e)   To abandon any legal proceedings and to compromise or settle
                  or refer to arbitration all disputes or doubts which may arise
                  in connection with the Building Agreement and/or the said
                  land.

            (f)   To register this or any other instrument in such manner as the
                  Assignee may think fit and to bind the Assignor by way of
                  covenant or declaration which may be necessary in order to
                  carry out the objects of these presents.

            AND the Assignor hereby gives and grants unto the Assignee full
power and authority to act in relation to the said land and Building as
effectually to all intents and purposes as if the Assignor had personally
performed the same.

            And for the better doing performing and executing of the matters and
things aforesaid the Assignor hereby further grants unto the assignee full power
an authority to substitute and appoint in the place and stead of the Assignee
one or more attorney or attorneys of the Assignee all or any of the powers and
authorities hereby conferred and to revoke any such appointment from time to
time and to


                                      -34-
<PAGE>   52
substitute or appoint any other or others in the place of such attorney or
attorneys as the Assignee may think fit.

            AND the Assignor hereby declares that all acts deeds matters and
things executed or done by virtue of these presents by the Assignee or any
substitute or substitutes appointed by the Assignee shall be as good valid and
effectual to all intents and purposes whatsoever as if the same had been
executed done or made by the Assignor personally AND the Assignor hereby
covenants to allow ratify and confirm all and whatsoever which the Assignee or
any substitute or substitutes appointed by the Assignee shall do or cause to be
done by virtue of the authority and powers hereby conferred.

            The Assignor hereby further declares that the power and authority
hereby conferred are given for valuable consideration and shall be and remain
irrevocable for a period expiring only on the registration of a lease by the
Lessor in the Assignee's favor with the appropriate authority or the vesting of
the said land and the building in the Assignees.

6.          The Assignee for itself and its successors and assigns hereby 
            covenants with the Assignor:

            (a)   To punctually pay on due date the yearly rent or any revision
                  or revisions thereof and all other rents fees costs and
                  charges stipulated in the Building Agreement and the Lease in
                  favor of the Assignee.

            (b)   To perform fulfill and observe all the stipulations on the
                  part of the Assignor contained in the Building Agreement and
                  the Lease and will at all times hereafter save harmless and
                  keep indemnification the Assignor its successors-in-title from
                  and against all actions proceedings damages penalties costs
                  claims and demands by reason or on account of the
                  non-observance thereof or otherwise in relation thereto.

7. The Assignor hereby covenants with the Assignee that it has not done or
knowingly suffered or been party or privy to any act or thing whereby the
Assignor is prevented from assigning the benefit of the Building Agreement, and
all estate rights title and interest in the said land and Building and all
benefits thereof.

8. The Assignor hereby warrants that there are no breaches of any terms and
conditions of the Building Agreement and the Assignor shall at all times
hereafter save harmless and keep indemnified the Assignee its
successors-in-title and assigns from and against all actions proceedings damages
penalties costs claims and demands by reason or on account of any non-observance
of all or any of the terms stipulations conditions on the part of the Assignor
contained in the Building Agreement.


                                      -35-
<PAGE>   53
            IN WITNESS WHEREOF the Assignor and the Assignee have caused their
respective Common Seals to be hereunto affixed the day and year first above
written.

                      THE FIRST SCHEDULE ABOVE REFERRED TO

I, Tan Chen Chwee Jasmine, an Advocate and Solicitor of the Supreme Court in the
Republic of Singapore, practicing in Singapore hereby certify that on the 29th
day of March, 1996 the Common Seal of MICROPOLIS LIMITED was duly affixed to the
within written instrument at Singapore in my presence in accordance with the
regulations of the said Company (which regulations have been produced and show
to me).

            WITNESS my hand this 29th day of March 1996.


                                       /s/  Tan Chen Chwee Jasmine


I, Lucy Cheng Geok Leng, an Advocate and Solicitor of the Supreme Court in the
Republic of Singapore, practicing in Singapore hereby certify that on the 29th
day of March, 1996 the Common Seal of ST CHATSWORTH PTE LTD was duly affixed to
the within written instrument at Singapore in my presence in accordance with the
regulations of the said Company (which regulations have been produced and show
to me).

            WITNESS my hand this 29th day of March 1996.


                                       /s/  Lucy Cheng Geok Leng

                                      -36-
<PAGE>   54
            The Building Agreement dated 28 February 1995 made between the
            Lessor and the Assignor in respect of the said Land.

                      THE SECOND SCHEDULE ABOVE REFERRED TO

            ALL THAT piece of land known as Private Lot A14269 forming part of
Government Survey lots 7634, 9418, 10979 and 12500 of Mukim 18 Ang Mo Kio and
situated in the Republic of Singapore as shown on the plan annexed to the
Building Agreement and estimated to contain and area of 17,930 square metres
more or less subject to survey.


The Common Seal of MICROPOLIS       )
LIMITED was hereunto affixed in the )
presence of:                        )

                                        /s/  Illegible
                                    -----------------------------------------
                                    DIRECTOR


                                        /s/  Illegible
                                    -----------------------------------------
                                    DIRECTOR/SECRETARY




The Common Seal of ST CHATSWORTH    )
PTE LTD was hereunto affixed in the )
presence of:                        )

                                        /s  Illegible
                                    -----------------------------------------
                                    DIRECTOR


                                        /s/  Illegible
                                    -----------------------------------------
                                    DIRECTOR/SECRETARY


                                     -37-
<PAGE>   55
                                    EXHIBIT D

                              INITIAL IMPROVEMENTS





                             [DIAGRAM OF FLOOR PLAN]

                              BLUE SKY - PLAN "A"


                                      -38-
<PAGE>   56
                                    EXHIBIT E

                                TAIKI-SHA LETTER


26th December 1996

Our Ref: A4004-B00/M6


Micropolis (5) Pte Ltd
5 Serangoon North Avenue 5
Singapore 554916
Attn: Mr K P Lau

Dear Sir:

OUR QUOTATION REFERENCE NO 4004-500/A2 DATED 19TH NOVEMBER 1996
FOR [illegible]
MICROPOLIS - DESIGN AND BUILD DISK MEDIAL FACILITIES


We agree to construct the abovementioned facilities in accordance with the
attached facility requirements and specifications provided by Stormedia
International Ltd dated December 1996. We further agree that the cost related to
such construction of the facilities are included in our quotation (Ref:
A4004-B00/Ad) dated 19 November 1996 to [illegible],

We shall use our best endeavours to complete the facilities by 28th February
1997.



Yours faithfully


/s/ YOSHIMOTO AKASAKI
-----------------------
Yoshitomo Akasaki
General Manager










                                      -39-

<PAGE>   57
STORMEDIA INTERNATIONAL LTD (SINGAPORE BRANCH)

CUSTOMER'S REQUIREMENTS


ELECTRICAL

1.   Contractor to provide all electrical power, power point and
     interconnections in accordance with local building codes and applicable
     Clean Room specifications.

2.   Contractor is to provide all power for the production equipment per
     StorMedia's drawing and include back-up system and frequency converters
     where defined.

Contractor to provide power for all facility utilities, lighting, air
conditioning and support functions as required for the production equipment and
the employees.


DEIONIZED (DD WATER SYSTEM)

Design Criteria

1.   Output DI water capacity is based on 50 usgpm (point of use) flow rate at
     output DI water capacity, with city water input at 75 usgpm (subject to PUB
     water supply).

2.   The plant is sized for 50 usgpm (point of use) flow rate at output DI water
     capacity, with city water input at 75 usgpm (subject to PUB water supply).

3.   Velocity in piping shall be maintained at 7.5 feet per second for 1 in.
     dia. pipe or greater; and a 3 feet/sec for less than 1 inch piping to
     ensure minimum "dead legs") to reduce 'bacterial' built-up in the
     pipes.

4.   No brass or bronze piping.

5.   Water storage for city water shall be 103m (i.e. @ 75 usgpm 6 hours 
     storage).

6.   Recycling of the waste water from the DI water system is currently not 
     considered feasible.

7.   DI water usage: for all phases

     *      4 nos. washers    @ 10.0 usgpm
     *      17 nos. texturing machin@ 2.0 usgpm

8.   DI water system to be commissioned according to following requirements:
<PAGE>   58
     Deionized water at the point of discharge from the DI pad will meet the
following requirements:

  Resistivity  :        Sustained 18 - 18.3 Mohms at 25(degree)C as measured 
                        with flow-through cell and

                        meter per ASTM-D-1125.  Reported as megohm(s) per cm.

                        17 Mohms at 25(degree)C minimum cutoff point.

  Bacteria              (less than) 5 colonies per 100 ml tested per
  absolute filters      ASTM-F-6065T provided 2 u are used upstream of sample
  sanitization and/or   point and system recommendations are follows:

  TOC          :        Total oxidizable carbon less than 20 ppb as measured by
                        an Anatel analyzer.  Reported as parts per billion.

  Particles    :        1,000 ppb retained on 0.45u filter and analyzed at 125X.
                        Reported as parts per litre.

  Silica       :        (less than)6 ppb.  Reported as parts per billion.


Quality levels per criteria:

<TABLE>
<CAPTION>
                     ATTAINABLE           ACCEPTABLE              ALERT             CRITICAL
                  --------------------------------------------------------------------------------
<S>              <C>                  <C>                    <C>                 <C>
Resistivity      (greater than) 18      (greater than) 18    (less than) 17.5    (less than) 17
Bacteria            (less than)  5        (less than)   8                  10    (less than) 15
Particles         (less than) 1000       (less than) 1500                2000              5000
TOC                 (less than) 20         (less than) 50                  80               100
Silica               (less than) 5          (less than) 8                  10                20
Residue            (less than) 0.1        (less than) 0.3                 0.5                 1
</TABLE>


Regenerated IUWC Mixed Bed resin will be rinsed at StorMedia's Campbell facility
to the following specifications:

<TABLE>
<S>                                                  <C>
     Resistivity.................................... 18.0 - 18.3 Mohms
     Silica.........................................   5 ppb or better
     TOC............................................  20 ppb or better
</TABLE>
<PAGE>   59
WASTE TREATMENT

     Provide for utilities support for Texture Room waste. These discharges are
as follows:

<TABLE>
<CAPTION>
                                 Texture Room              Tapes
                            ----------------------    ------------
<S>                          <C>                           <C>
Total (Ni) ppm                                   3            6
Dissolved (Ni) ppm                               1            2
Total (SiC) ppm                                0.5          0.5
TOC                                           1000         2000
pH                                             8.5          9.0
Conductivity                                   300          700
Flow (14 texture machine)    1 gpm combined * note
</TABLE>

*    This can be combined with washer drains of 6.5 gpm x 4 machines to sewer
     drain (must obtain prior approval from Ministry of Environment). If
     approval is not obtained, a treatment plant must be provided. This plant is
     subject to separate quotation. Space must be provided for future waste
     treatment plant.


VACUUM PIPING SYSTEM

1.   Housekeeping Vacuum

     -      Contractor to supply Central vacuum system with approx. 13
            plug-in outlets spaced in the CR 10/100/10K Clean Rooms. A
            minimum of 3 outlets in SVS area. Each outlets to provide 6
            inches of Mercury vacuum.

2.   Process Vacuum

     -      Gripper Vacuum (HV)
                  Motor 1.5kw, 3phase, 415volts, 50hz.
                  Nominal displacement: 40 m3/h
                  Ultimate pressure: 20mbar
                  Copper tubing is required in system.
                  Piping to run from ceiling into common dropper.
                  One vacuum pump to be connected to two cells.
                  One spare vacuum pump to be manifolded into supply system as
                  on-line back-up.
                  Vacuum pumps to be supplied and installed by Contractor.
<PAGE>   60
                              Total units:  9

     -      Robot Exhaust System (LV)

         -        Blower intake to be connected to Robot cavity via connection
                  at Robot

         -        Blower to provide 40 scfm @ 20 inch of water

         -        One blower to be connected to two test cells

         -        One blower to be manifolded into supply system as on-line
                  back-up

         -        Blowers to be supplied and installed by Contractor 
                                Total units: 9


PROCESS COOLING

1.       Process cooling for SVS sputtering machine. each SVS machine requires
         100 usgpm 70(degree)F outlet, Delta 5(degree)F, 60 psig, process
         cooling water.

2.       Process cooling can be individually sized based on per SVS machine.

3.       SVS process piping shall have a common feed with 22 nos. 1/2 inch dia.
         tee-offs to 22 nos. secondary equipment within the SVS machine provided
         by StorMedia.

4.       Contractor to supply dual headers, one for each side of SVS. These
         headers are to be 2.0 inch dia. copper pipe. Employer to define final
         location of each header (located near floor level).

5.       Contractor to supply dual header pipe for return to chiller package.
         These headers are to be 2.0 inch dia. copper pipe. Employer to define
         final location of each header.


                                   (heading missing)
----------------------------------



1.   Ionization for load area, lube/buff, test and packout area.

2.   Telephone system include FIS direct line for modem.

3.   PA / CCTV / Card Access

4.   Intercom; (internal between cleanroom and production office)

5.   Area for FIS, Equipment maintenance lab, Supervisor room, Spare stores,
     Offices/Engrg.support, Incoming store and Locker room.

6.   FIS network system
<PAGE>   61
7.   Desiccant dryer

8.   Special gases - Argon, plasma Ar/H2 and N2/Ar.

9.   Earth pit or Clean earth Texture/Test area and sputter (Please takenote
     that the clean earth for sputter must be by itself and not loop to other
     source.)

10.  Provide scupper drain below raise floor board at Texture/wash area.





HELIUM, ARGON, HYDROGEN

The piping shall be provided at machines shown in the utilities layout.

The piping material shall be stainless steel, 1/2 inch dia. with '0' ring seal,
sealed and purged.

Argon   :   Provide 3 nos. argon points, with one standby, for each sputtering
            SVS machine, one manual and one auto-transfer.

Helium  :   Provide 3 nos. He points, with one standby, for each SVS machine.


NITROGEN

The piping shall be provided at machines shown in the utilities layout.

The piping material shall be copper.


COMPRESSED AIR (CDC) SYSTEM

1.       Compressed air capacity of 300 cfm with filter of 0.2 um. Requires 100
         psig minimum at "point of use".

2.       The CDA system shall have 3 air compressors, oil flooded, oil-free
         system, and with one acting as a standby.

3.       CDA distribution : with a common ring mains or two ring mains. A bypass
         manual valve to be provided to allow N2.

4.       The CDA piping material shall be copper, and with bail valves.
<PAGE>   62
EXHAUST SYSTEM

1.   Slurry prep. exhaust requirement
     Brand : ELTA
     Model : 500mm/150/10/10/ALU
     10-30 Degree
     1.1 to 1.5kw / 415 vols/3 phase/50hz.

2.   Washers exhaust requirement.
     Brand : colasit
     Model : CMV 140 DD
     SP mm 550 pa
     Fan rpm 2800
     Pos 5
     Vent kw 0.55
     Power 3/4 hp

     (Remarks : 2 units require 1 unit for CR 100 washers and 1 unit for CR 10K
washers exhaust.)


CLEAN ROOM

1.   The following areas shall be classified as Clean Room:

     -      Test Area
     -      Luber/Buffing
     -      SVS Sputtering
     -      Loading Area
     -      Wash/Texturing
     -      Gowning
     -      Pallet Room
     -      Target Build

2.   Other than CR10 and CR100, the raised floor for texturing CR10K, shall be 
     used for utilities piping.
<PAGE>   63
                                    EXHIBIT F

                            MICROPOLIS PURCHASE ORDER



                  [COPY OF STANDARD MICROPOLIS PURCHASE ORDER]



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