Document:

<PAGE>   1
                                                                    EXHIBIT 10.2

                        DATED THIS 30TH DAY OF APR 1999

                                    BETWEEN

                  UNITED TEST AND ASSEMBLY CENTER (S) PTE LTD

                                   as Borrower

                                       AND

                    THE DEVELOPMENT BANK OF SINGAPORE LIMITED

                                    as Lender

                                =================

                                DEED OF DEBENTURE

                                =================

                                AC RL se 99 K9028

                             KHATTAR WONG & PARTNERS
                                    SINGAPORE

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                                C O N T E N T S

<TABLE>
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                                                                       PAGE
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<S>  <C>                                                               <C>
1.   BANKING FACILITIES                                                  1

2.   CHARGES                                                             2

3.   STIPULATIONS RELATING TO INTEREST AND OTHER MATTERS                 3

4.   DEPOSIT OF DEEDS                                                    3

5.   FURTHER SECURITY                                                    4

6.   CONTINUING SECURITY                                                 4

7.   PROHIBITION AGAINST OTHER CHARGES                                   4

8.   POSITION OF OTHER SECURITY                                          4

9.   REPRESENTATIONS AND WARRANTIES                                      4

10.  AFFIRMATIVE UNDERTAKINGS                                            7

11.  NEGATIVE UNDERTAKINGS                                              11

12.  DEFAULT INTEREST AND DEBIT OF ACCOUNT                              12

13.  SECURITY ENFORCEABLE IN CERTAIN EVENTS                             13

14.  POWERS OF THE LENDER ON EVENTS OF DEFAULT                          16

15.  APPOINTMENT OF RECEIVER                                            16

16.  POWERS OF RECEIVER                                                 16

17.  APPOINTMENT OF RECEIVER AS ATTORNEY                                18

18.  APPLICATION OF MONEYS BY RECEIVER                                  18

19.  APPOINTMENT OF RECEIVER NOT AFFECTING OTHER POWERS                 18

20.  APPOINTMENT OF LENDER AS ATTORNEY                                  18

21.  SPECIAL CONSULTANT                                                 19

22.  SET-OFF                                                            19

23.  RIGHT OF REVIEW                                                    19

24.  NO ENQUIRY BY THIRD PARTY                                          20

25.  THE LENDER NOT ANSWERABLE FOR LOSS                                 20

26.  INDEMNITY                                                          20

27.  DISCLOSURE                                                         21
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<TABLE>
<CAPTION>

                                                                     PAGE
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<S>  <C>                                                             <C>
28.  CALCULATIONS AND EVIDENCE                                        21

29.  WAIVER NOT TO PREJUDICE RIGHT OF LENDER                          22

30.  INDULGENCE OF THE LENDER NOT TO DISCHARGE THE BORROWER           22

31.  RIGHT OF CONSOLIDATION                                           22

32.  CURRENCY INDEMNITY                                               22

33.  TAXES                                                            23

34.  CHANGE IN CIRCUMSTANCES                                          24

35.  PAYMENT OF COSTS                                                 24

36.  SERVICE OF DEMAND OR NOTICE                                      25

37.  RIGHT OF ASSIGNMENT                                              26

38.  SEVERABILITY                                                     27

39.  GOVERNING LAW AND SUBMISSION TO JURISDICTION                     27

40.  INTERPRETATION                                                   27
</TABLE>

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     THIS DEED OF DEBENTURE is made the         day of                      One
thousand nine hundred and ninety-nine (1999) Between:-

1.   UNITED TEST AND ASSEMBLY CENTER (S) PTE LTD (Company Registration
     No. 199708070H), a company incorporated in Singapore and having its
     registered office at 31 Exeter Road #14-01/04 Comcentre I Tower,
     Singapore 239732 (hereinafter called the "Borrower"); and

2.   THE DEVELOPMENT BANK OF SINGAPORE LIMITED, a company incorporated in
     Singapore and having its registered office at 6 Shenton Way, DBS Building
     Singapore 068809 (hereinafter called the "Lender").

     WHEREAS at the request of the Borrower, the Lender has agreed to make
available to the Borrower advances loans credit and other facilities to such an
extent and for so long as the Lender may think fit (hereinafter called the
"banking facilities" which expression shall where the context so admits include
any part thereof) upon the security and on the terms and conditions hereinafter
appearing.

     NOW THIS DEBENTURE WITNESSETH as follows:-

1.   BANKING FACILITIES

     In consideration of the Lender agreeing to grant or continuing to grant the
banking facilities to the Borrower to such an extent and for so long as the
Lender may think fit the Borrower hereby covenants with the Lender as follows:-

     (a)  To pay to the Lender on demand all such sums of moneys which are now
          or shall from time to time and at any time hereafter be due or owing
          to the Lender by the Borrower solely or jointly with any other person
          or persons and whether as principal or surety or which the Borrower
          may be or become liable to pay to the Lender anywhere on any account
          or otherwise or in any manner whatsoever and all other liabilities
          whether certain or contingent including the balance for the time being
          owing for or in respect of cheques bills notes drafts or other
          negotiable or non-negotiable instruments accepted paid or discounted
          for and on behalf of the Borrower whether solely or jointly with
          another or others or for any other payments credits or advances made
          to or for the use or accommodation of or on behalf of the Borrower
          whether solely or jointly with another or others pursuant to or in
          respect of or under any guarantee or letter of credit given
          established or opened by the Lender for the Borrower or any contracts
          for the forward delivery of goods bills or specie or in respect of any
          other banking facilities whatsoever whether or not given upon or under
          any trust receipts or other security whatsoever or otherwise howsoever
          together with in all cases aforesaid interest next hereinafter
          covenanted to be paid calculated on such basis and with such periodic
          rests as are applicable under the agreements and arrangements giving
          rise to the relevant obligations or liabilities and if no such rate or
          rates are specified, at such rate or rates which the Lender may at the
          time and from time to time stipulate and together also with commission
          discount and other usual bankers' charges And if when any such account
          current or otherwise shall

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          be closed or ceased to be current a balance shall be owing or
          remaining unpaid to the Lender so long as the same or any part thereof
          shall remain owing or unpaid to pay to the Lender interest thereon at
          the rate or rates for the time being applicable under the agreements
          or arrangements giving rise to the relevant obligations or liabilities
          and if no such rate or rates are specified, at such rate as the Lender
          may at the time and from time to time stipulate from the time when
          such balance shall have been ascertained to the date of actual payment
          both after as well as before judgment (if any) obtained in respect
          thereof.

     (b)  To pay to the Lender interest on the principal amount of the banking
          facilities from time to time owing or remaining unpaid to the Lender
          as aforesaid and all other moneys secured or intended to be secured
          hereby at such rate or rates per annum or other rates and calculated
          in such manner as applicable under the agreements or arrangements
          giving rise to the relevant obligations or liabilities and if no such
          rate or rates are specified, at such rate or rates per annum or other
          rates and calculated in such manner as the Lender may at the time and
          from time to time stipulate as applicable respectively to various
          lines or kinds of the banking facilities or other moneys or
          liabilities owing to the Lender or in various cases as the Lender may
          prescribe as well after as before judgment (if any) obtained in
          respect thereof.

2.   CHARGES

(a)  For the consideration aforesaid, the Borrower as beneficial owner hereby
     charges with the payment to the Lender of the banking facilities, interest
     thereon and all other moneys and liabilities whatsoever hereby agreed to be
     paid by the Borrower under this Debenture or intended to be hereby secured
     (including all fees charges costs and expenses arising out of or in
     connection with the provisions of this Debenture):-

     (i)   by way of fixed charge all and singular all estates and other
           interests in leasehold, freehold and other immovable property, all
           plant, machinery and fixtures, all chattels hired, leased or rented
           by the Borrower to any other persons together with the benefit of the
           related hiring, leasing or rental contract and other security
           therefor and all other fixed property and assets of the Borrower
           whatsoever and wheresoever situate, all stocks, shares, warrants,
           debentures, loan capital and other securities of any kind and all
           rights and income relating thereto, the goodwill and uncalled capital
           of the Borrower and all patents, patent applications, trademarks,
           trade names, registered designs and copyrights and all licences and
           ancillary and connected rights relating to the intangible property of
           the Borrower, in all cases aforesaid, both present and future; and

     (ii)  by way of floating charge the whole of the undertaking of the
           Borrower and all and singular its property and assets (other than the
           property and assets hereinbefore charged) whatsoever and wheresoever
           situate, both present and future, including all stocks, raw
           materials, works-in-progress, goods-in-progress (whether such are
           upon its premises or in the course of

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           transit) and all its products whether finished or unfinished and all
           book and other debts due and owing to the Borrower.

(b)  The Lender shall be entitled at any time after the occurrence of an Event
     of Default by notice in writing to the Borrower to convert the floating
     charge created by Clause 2(a)(ii) into a fixed charge affecting all
     property and assets which for the time being are the subject of such
     floating charge or, as the case may be, such of the said property and
     assets as are specified by such notice and without prejudice and in
     addition to the aforesaid, in such an event, the Borrower covenants with
     the Lender, upon demand, to execute at its own cost, as a continuing
     security for the payment or discharge of all moneys hereby secured or
     intended to be hereby secured, a first fixed charge in terms specified by
     the Lender of all or any part of the property and assets comprised in this
     security (or such part thereof as is specified in such notice).

(c)  Without prejudice to Clause 7 and the other provisions of this Debenture,
     if at any time the Borrower charges, pledges or otherwise encumbers in
     breach of Clause 7 any of the property or assets of the Borrower comprised
     in this security or if any of the property and assets of the Borrower
     comprised in this security shall be in danger of seizure, distress,
     execution or other legal process, the floating charge created under this
     Debenture over those property or assets shall automatically without notice
     operate as a fixed charge instantly on such event occurring and in
     addition, the Lender shall be entitled without notice to the Borrower to
     take possession of or hold the same or to appoint a Receiver thereof
     Provided That the Lender shall give notice to the Borrower as soon as
     practicable after taking possession or taking hold of the same or
     appointment, as the case may be. The provisions of Clauses 15 and 16 shall
     govern the appointment, removal and powers of a Receiver appointed under
     this Clause as if he were a Receiver appointed under that Clause.

3.   STIPULATIONS RELATING TO INTEREST AND OTHER MATTERS

     It is hereby expressly agreed and declared as follows:-

     (a)  if the Borrower shall execute or create any further or subsequent
          mortgage charge or incumbrance fixed or floating over or otherwise
          deal with any of the property or assets comprised in this security or
          any part or parts thereof in favour of any other person of which the
          Lender receives notice either actual or constructive the Lender may on
          receiving such notice forthwith open a new or separate account with
          the Borrower in the books and if the Lender does not in fact open such
          new or separate account, then unless the Lender gives express written
          notice to the contrary to the Borrower the Lender shall nevertheless
          be deemed to have done so at the time when the Lender received or was
          deemed to have received such notice (hereinafter called the "time of
          notice") and as from and after the time of notice all payments in
          account made by the Borrower or by or on behalf of the Borrower to the
          Lender shall (notwithstanding any legal or equitable rule of
          presumption to the contrary) be placed or deemed to have been placed
          to the credit of the new or separate account so opened or deemed to
          have been opened as aforesaid and shall not go in reduction of the
          amount owing by the Borrower to the Lender at the time of notice.
          PROVIDED ALWAYS that nothing in this paragraph contained shall
          prejudice the

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          security which the Lender otherwise would have had hereunder for the
          payment of the moneys costs charges and expenses herein referred to
          notwithstanding that the same may become due or owing or be incurred
          after the time of notice;

     (b)  this security shall continue to be valid and binding for all purposes
          notwithstanding--

          (i)    any change by amalgamation reconstruction or otherwise which
                 may be made in the constitution of the company by which the
                 business of the Borrower or the Lender may for the time being
                 be carried on and shall be available to the company carrying on
                 the business of the Borrower or the Lender for the time being,
                 or

          (ii)   any winding-up (whether voluntary or compulsory), amalgamation
                 or reconstruction of or affecting the Borrower or the Lender;
                 or

          (iii)  any order placing the Borrower or the Lender under judicial
                 management of a judicial manager;

     (c)  In addition to the provisions hereof, the Borrower shall perform,
          observe and shall be bound by the terms and conditions of the
          agreements and arrangements applicable to the relevant banking
          facilities advanced by the Lender to the Borrower from time to time
          and in the event of any contradictions and/or inconsistencies between
          the terms arid conditions of such agreements and/or arrangements and
          the terms and conditions contained in this Debenture, the terms and
          conditions in such agreements and/or arrangements shall prevail.

4.   DEPOSIT OF DEEDS

     The Borrower will deposit with the Lender and the Lender during the
continuance of this security shall be entitled to hold and retain all deeds and
documents of title relating to the Borrower's property for the time being both
movable and immovable.

5.   FURTHER SECURITY

     The Borrower will at any time, if and when required by the Lender so to do,
execute and deliver to the Lender or as the Lender shall direct, at the
Borrower's cost and expense mortgages charges assignments pledges or transfers
whether legal or otherwise over all or any of the Borrower's property comprised
in the security created under this Debenture movable and immovable now belonging
to or which may hereafter be acquired by or belong to the Borrower (including
any vendor's lien) to secure all moneys and liabilities whatsoever hereby
secured such mortgages charges assignments pledges or transfers to contain such
terms and provisions as the Lender may require.

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6.   CONTINUING SECURITY

     The security hereby created shall not be considered satisfied by any
intermediate payment or satisfaction of the whole or any part of any sum or sums
of moneys owing as aforesaid or otherwise but shall constitute and be a
continuing security to the Lender and extend to cover all or any sum or sums of
moneys whatsoever which shall for the time being be owing by the Borrower to the
Lender.

7.   PROHIBITION AGAINST OTHER CHARGES

     During the continuance of this security, the Borrower shall not and shall
not have power without the prior written consent of the Lender, such consent not
to be unreasonably withheld, to:-

(1)  create or agree or permit to subsist or arise any encumbrance whatsoever,
whether fixed or floating or otherwise howsoever on or over all or any of the
Borrower's properties or assets or revenues or any part thereof, both present
and future whatsoever and wheresoever situate except that the foregoing
prohibitions shall not apply to (i) pledges of goods, the related document of
title and/or other related documents as security for indebtedness directly
relating to such goods or documents on or over which that pledge exists,
(ii) security arising out of title retention provisions in a supplier's standard
conditions of supply of goods purchased by the Borrower in its ordinary course
of business and (iii) any encumbrance created by the CTB Securities; or

(2)  factor or assign any of its accounts receivables except pursuant to the CTB
Securities; or

(3)  sell, transfer or otherwise assign, deal with or dispose ail or any part of
its business (whether outright by a sale and repurchase or sale and leaseback
arrangement or otherwise) or (except (i) as permitted under the terms of this
Debenture or (ii) for good consideration in the ordinary course of its business
or (iii) for disposal of obsolete assets, or production assets no longer
required for the purpose of the Borrower's business, in each case, for cash on
normal commercial terms or (iv) payment of cash as consideration in the
acquisition of any asset on normal commercial terms or (v) for disposals of
nonproduction assets where the aggregate value of such assets disposed of in a
financial year does not exceed Singapore Dollars One Hundred Thousand
(S$100,000.00) in the total) its assets or property or revenues, whether by a
single transaction or a number of transactions whether related or not and
whether voluntarily or involuntarily.

8.   POSITION OF OTHER SECURITY

     Nothing contained in this Debenture shall prejudice or affect any lien to
which the Lender is entitled or any other charge mortgage or security which the
Lender holds or may at any time hold from the Borrower or others on any account
whatsoever.

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<PAGE>   9
9.   REPRESENTATIONS AND WARRANTIES

(1)  The Borrower hereby represents and warrants to and for the benefit of the
     Lender as follows:-

     (a)  it is a company duly incorporated and validly existing under the laws
          of Singapore and has full power and authority and the legal rights to
          own assets, to conduct the business which it conducts and to sue and
          be sued in its own name;

     (b)  it has full corporate power and authority and the legal rights to
          borrow moneys, enter into and execute this Debenture, exercise its
          rights and perform and comply with its obligations under this
          Debenture;

     (c)  it has taken or obtained all necessary corporate and other action to
          authorise the execution and delivery of this Debenture and the
          consummation and performance of the transactions contemplated by this
          Debenture and no limitation on its powers will be exceeded as a result
          of the transactions to be undertaken pursuant to this Debenture;

     (d)  this Debenture constitutes legal, valid and binding obligations of the
          Borrower and is enforceable in accordance with its terms;

     (e)  the certified copies of its Memorandum and Articles of Association and
          corporate documents delivered to the Lender are true accurate complete
          and up to date copies of the Memorandum and Articles of Association
          and corporate documents of the Borrower as at the date of such
          delivery;

     (f)  that all action, conditions and things required to be taken, fulfilled
          and done including the obtaining of any necessary exchange approvals
          or any other authorizations, filing, registration, documentation or
          claim in order (i) to enable the Borrower to lawfully enter into,
          exercise its rights and perform and comply with its obligations under
          this Debenture, including without prejudice to the generality to the
          aforesaid, its obligations to pay and remit to the Lender all moneys
          due under this Debenture, (ii) to ensure that those obligations are
          legal, valid, binding and enforceable, (iii) to ensure that those
          obligations will at all times rank in accordance with Clauses 9(1)(I)
          and 10(p), and (iv) to ensure that all necessary steps and/or actions
          required to make this Debenture admissible as evidence in the courts
          of Singapore have been taken, done, fulfilled and obtained and there
          has been no default in the observance of the conditions or
          restrictions (if any) imposed in or in connection with any of the
          same;

     (g)  all its audited financial statements which have been submitted to the
          Lender under this Debenture were prepared in accordance with
          applicable laws and regulations of Singapore in accordance with
          generally accepted accounting practices and principles applied on a
          consistent basis and are complete and correct and fairly represent the
          financial condition of the Borrower and the results of its operations
          for the period stated;

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     (h)  the statements, documents and information supplied in writing by it to
          the Lender concerning itself, its property, assets and revenues, its
          accounts, businesses or operations (including any cashflow or other
          projections, appraisals, reports and forecasts) and all related
          matters required under this Debenture are to the knowledge of the
          Borrower (having made all enquiries) true and correct in all material
          respects and do not contain any material misstatement of fact or omit
          to state any material fact and were made after due and careful
          consideration on the Borrower's part or on the part of its agents and
          are, in the Borrower's considered opinion, fair and reasonable in the
          circumstances prevailing at the time when such projections,
          appraisals, reports or forecasts were made in the light of the
          assumptions made, and the Borrower is not aware of any fact or
          circumstances which if disclosed would necessitate a material revision
          to any such projections, appraisals, reports or forecasts, or which
          might adversely affect the Lender's decision on whether or not to make
          the banking facilities available to it or to maintain the banking
          facilities;

     (i)  there is no provision of (i) any existing laws, regulation or
          authorization to which the Borrower is subject to which materially and
          adversely affect the Borrower's ability to perform its obligations
          under this Debenture, or (ii) any existing mortgage, trust, deed,
          contract, licence, permit, franchise, concession, agreement or treaty
          binding on the Borrower which is being or will be contravened or
          breached by the acceptance by the Borrower of the banking facilities
          or the execution of this Debenture by the Borrower or by the
          Borrower's performance or observance of any of its obligations under
          this Debenture and which will result in an Event of Default or which
          will result in the creation of or oblige the Borrower to create an
          encumbrance in respect of any of its assets or property;

     (j)  it is not in default in the payment or performance of any of its
          obligations for borrowed moneys exceeding a maximum aggregate of
          Singapore Dollars One Million (S$1,000,000.00) at any time;

     (k)  that, save (i) as previously disclosed in writing to and agreed by the
          Lender, (ii) for CTB Securities, and (iii) for the encumbrances and
          charges in favour of Citibank N.A. and United Overseas Bank Limited
          which will be discharged by the Borrower prior to the utilization of
          any of the banking facilities, no encumbrance exists over all or any
          part of the properties, undertaking, assets or revenues of the
          Borrower;

     (l)  the claims of the Lender against the Borrower under this Debenture
          will rank first in priority of payment and security against the claims
          of all its creditors to the extent of the security created hereunder
          and otherwise at least pari passu in right and priority of payment
          with all its other present and future unsecured indebtedness except
          those claims preferred by any bankruptcy, insolvency, liquidation or
          other similar laws affecting creditors' rights generally;

     (m)  no Event of Default or Potential Event of Default (other than any
          waived) has occurred and is continuing;

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     (n)  there are no litigation, arbitration or administrative proceedings
          pending, current or to the knowledge of the Borrower, threatened
          against or affecting the Borrower or the Borrower's assets which will
          materially and adversely affect the Borrower's ability to perform its
          obligations under this Debenture;

     (o)  no steps have been taken or are being taken to appoint either a
          receiver, liquidator, administrator, trustee, judicial manager or
          similar officer to take over the assets of the Borrower or to wind up
          the Borrower;

     (p)  there is no material adverse change in its business, assets or
          financial condition from that set forth in the latest financial
          statements submitted to the Lender by it pursuant to Clause 10(f);

     (q)  neither the Borrower nor any of the assets of the Borrower are
          entitled to immunity from suit, execution, attachment or other legal
          process and the Borrower's entry into this Debenture and the exercise
          of the Borrower's rights and performance of its obligations under this
          Debenture constitute private and commercial acts performed for private
          and commercial purposes;

     (r)  all authorizations required from any governmental or other authority
          or from any shareholders or creditors of the Borrower for or in
          connection with the execution, validity and performance of this
          Debenture have been obtained and are in full force and effect;

     (s)  that, save as previously disclosed in writing to and agreed by the
          Lender, the Borrower is the legal and beneficial owner of all the
          undertaking, assets and property secured by this Debenture.

     (2)  Except as may be expressly provided otherwise in an agreement or
arrangement relating to a banking facility granted by the Lender to the
Borrower, each of the representations and warranties contained in Clause 9(1)
(except Clause 90)(e)) shall be true and correct in all material respects at all
times with reference to the facts and circumstances existing at all such times
until all moneys payable or agreed to be paid to the Lender under this Debenture
are fully repaid.

10.  AFFIRMATIVE UNDERTAKINGS

     The Borrower hereby undertakes to and agrees with the Lender that so long
as any moneys remain to be lent or remain payable under this Debenture:-

     (a)  it shall maintain its corporate existence and will carry on and
          conduct its business in such manner so as not to affect its ability to
          perform any of its obligations under this Debenture;

     (b)  it shall procure that this Debenture is and will be maintained in full
          force and effect and shall obtain all such authorizations, licences
          and consents which are or may become necessary for it to perform its
          obligations under this Debenture and to comply with and observe all
          terms, conditions and

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<PAGE>   12
          restrictions (if any) imposed in connection with any of the foregoing
          and maintain or accomplish any filing, registration, documentation or
          claim with any court, judicial, administrative or governmental agency
          or other authority or person which may be or become necessary for such
          purposes and maintain in full force and effect all such
          authorizations, licences and consents as are referred to in Clause 9
          and take immediate steps to obtain and thereafter maintain in full
          force and effect any other authorizations which may become necessary
          or advisable for the purposes stated therein;

     (c)  it shall from time to time on request by the Lender and at its own
          expense, execute, sign, perfect, do and procure the doing of and if
          required register every document, act or thing as in the opinion of
          the Lender may be necessary for giving full effect to this Debenture
          or securing to the Lender the full benefits of all rights, powers and
          remedies conferred upon the Lender in this Debenture;

     (d)  in so far as may be necessary, it shall amend its Memorandum and
          Articles of Association and any other corporate documents as to enable
          it to observe and perform all the covenants, undertakings,
          stipulations, terms, conditions and other provisions of this
          Debenture;

     (e)  it shall use the various lines or kinds of banking facilities only for
          the purpose for which they were granted and the Borrower shall not use
          Singapore dollar funds from any such banking facilities for any
          financial investments, trade or other activities outside Singapore;

     (f)  it shall:-

          (i)    furnish to the Lender annually and in any event not later than
                 six (6) months after the close of each financial year of the
                 Borrower beginning with the current financial year, certified
                 copies of the Borrower's audited financial statements, in each
                 case including a balance sheet and a profit and loss account
                 together with its directors' reports for the period then ended
                 prepared in accordance with generally accepted accounting
                 practices and principles consistently applied in Singapore and
                 certified by an internationally recognised firm of independent
                 accountants acceptable to the Lender;

          (ii)   furnish to the Lender not later than thirty (30) days after the
                 relevant period, certified copies of the Borrower's interim
                 unaudited financial statements, in each case including a
                 balance sheet and a profit and loss account relating to the
                 Borrower containing financial information (in no less detail
                 than those which had been prepared prior to the date of this
                 Debenture) in respect of successive quarterly periods during
                 the Borrower's financial years;

          (iii)  furnish to the Lender as soon as they are available and in any
                 event not later than thirty (30) days after the end of each
                 yearly period of this Debenture, a certificate signed by one of
                 its directors

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<PAGE>   13
                 certifying that there did not and does not exist any Event of
                 Default or Potential Event of Default as at the end of such
                 yearly period (or if an Event of Default or Potential Event of
                 Default did exist, setting out details of the same and of any
                 action taken or proposed to be taken to remedy it);

          (iv)   promptly furnish and provide the Lender with and permit the
                 Lender to obtain all such statements, information, explanations
                 and data (except information of a confidential or proprietary
                 nature) as the Lender may reasonably require regarding the
                 affairs, operations, administration, financial or corporate
                 state or condition of the Borrower or any guarantor (which
                 expression shall hereinafter include but not be limited to (if
                 any) any surety or indemnitor or any owner of any property
                 mortgaged or charged to the Lender at the request of the
                 Borrower or at the request of the Lender with the consent of
                 the Borrower as security for the moneys secured or intended to
                 be secured hereby) or any of the matters in this Clause 10
                 mentioned, and without prejudice to the generality of the
                 foregoing, the Borrower shall, upon request, furnish and
                 provide the Lender with a list of all persons, firms,
                 corporations, companies or groups of companies which the
                 Borrower is able to control or influence so as to enable the
                 Lender to comply with the provisions of section 29 of the
                 Banking Act (Chapter 19, Singapore Statutes), as amended or
                 re-enacted from time to time, and shall forthwith inform the
                 Lender of any change in such list as soon as such change
                 occurs;

          (v)    promptly notify the Lender of any material adverse change in
                 its condition (financial or otherwise) and of any litigation,
                 action, proceedings or claim being threatened or initiated
                 against it before any court, tribunal, arbitrator or
                 administrative agency or any other matter, and in all cases,
                 which might materially and adversely affect its operations or
                 financial condition or its ability to perform its obligations
                 under this Debenture;

          (vi)   immediately notify the Lender of the occurrence of any Event of
                 Default or a Potential Event of Default after becoming aware
                 thereof;

     (g)  punctually pay all rents rates assessments taxes and all outgoings
          payable in respect of any land and/or premises belonging to the
          Borrower or at which it carries on business and obtain all necessary
          licences and comply with all laws regulations rules and orders
          relating to the carrying on of its business on such premises;

     (h)  take out and maintain a policy of insurance in respect of the
          Borrower's liability or potential liability to its employees under the
          common law and the Workmen's Compensation Act (Chapter 354, Singapore
          Statutes), as amended or re-enacted from time to time, or any
          statutory modification thereof for the time being in force;

                                       10
<PAGE>   14
     (i)  furnish to the Lender particulars of any kind of immovable property
          now owned by the Borrower and hereafter acquired or to be acquired by
          the Borrower;

     (j)  keep all its plant machinery equipment buildings constructions
          fixtures fittings implements and other effects subject to the charges
          hereunder in good and substantial repair and proper working condition
          to the satisfaction of the Lender;

     (k)  the Borrower will, unless otherwise agreed by the Lender in writing,
          take out and maintain or cause to be taken out and maintained all
          risks policies of insurance in the joint names of the Borrower and the
          Lender with an insurance company nominated or selected by the Lender,
          fully insuring all the Borrower's assets and property comprised in
          this security against, inter alia, loss or damage by fire, lightning,
          riots, extraneous perils and all other risks commonly covered with
          respect to properties and business of a similar kind and such policies
          shall be in such amounts and shall contain such terms and provisions
          as shall be reasonably approved by the Lender, and shall contain
          standard mortgagee clauses naming as loss payee the Lender and the
          policies shall be delivered to and retained by the Lender; that the
          Borrower will punctually pay all premiums payable in respect of the
          said policies of insurance and submit to the Lender copies of the
          receipts for such payments and will, in respect of premiums payable
          for renewal of such policies, pay the premiums before the expiry dates
          of the policies and submit to the Lender copies of the receipts for
          every such payment not less than three (3) business days before such
          expiry date, and if the Borrower fails to comply with the provisions
          of this sub-Clause the Lender may at its discretion (but without any
          obligation on its part to do so) have such insurance effected at the
          cost of the Borrower and all moneys paid by the Lender in respect of
          such insurance shall on demand be repaid by the Borrower to it and
          until repayment shall be added to the principal moneys secured by this
          Debenture and bear interest at such rate or rates for the time being
          applicable under the agreements or arrangements giving rise to the
          relevant obligations or liabilities and if no such rate or rates are
          specified, at such rate as may be determined at the time and from time
          to time by the Lender and all other statutory powers of insurance for
          the said moneys so paid by the Lender as aforesaid may be exercised by
          the Lender;

     (l)  it will not, except with the consent of the Lender, effect or keep on
          foot any insurance against any risk in respect of any building or
          structure comprised in this security where any insurance hereinbefore
          mentioned has been effected or kept on foot;

     (m)  all moneys received or receivable under any of the policies of
          insurance aforesaid by whomsoever effected shall be paid to the Lender
          and applied towards making good the loss or damage incurred or at the
          election of the Lender towards payment to the Lender in reduction of
          all moneys due or owing to the Lender in such manner as the Lender may
          agree and if any such moneys are received by the Borrower the Borrower
          shall hold the same in trust for the Lender and pay it promptly to the
          Lender or as the

                                       11
<PAGE>   15
          Lender shall direct and the Lender may receive and give a good
          discharge for any such moneys;

     (n)  it shall immediately upon the occurrence of the event concerned notify
          the Lender of:-

          (i)    the giving of notice by the Borrower or any guarantor (if a
                 corporation) to convene a general meeting for passing any
                 resolution to wind up the Borrower or that guarantor; or

          (ii)   the filing of any application for placing the Borrower or any
                 guarantor (if a corporation) under any scheme with a view to
                 readjustment, rescheduling or deferral of its indebtedness
                 generally or under the judicial management of a judicial
                 manager or any analogous or equivalent process which they have
                 in the courts of Singapore or in any other jurisdiction in
                 which the Borrower or that guarantor carries on business; or

          (iii)  the filing of any petition for its liquidation or winding-up of
                 the Borrower or any guarantor (if a corporation); or

          (iv)   the filing of any application for the bankruptcy of any
                 guarantor (if an individual).

          Where such notification as aforesaid is given verbally by the Borrower
          to the Lender, the Borrower shall confirm the same in writing within
          twenty-four (24) hours thereof;

     (o)  it shall deliver to the Lender upon demand any documents or evidence
          under the provisions hereof the production of which has been waived
          and to comply with all the terms and conditions of any provisions
          hereof which have been waived;

     (p)  it shall ensure that at all times the claims of the Lender against the
          Borrower under this Debenture shall rank first in priority of payment
          and security against the claims of all its creditors to the extent of
          the security created under this Debenture and otherwise at least pari
          passu in right and priority of payment with all is other present and
          future unsecured indebtedness;

     (q)  after the occurrence of an Event of Default, the Lender shall be
          entitled after prior notification to the Borrower enter into and upon
          its premises and inspect the same and all property and assets
          whatsoever therein or thereon and to inspect all the records and
          statements of the Borrower and all the assets, property and
          undertaking comprised in this Debenture wherever the same may be
          situate and to make inventories, records or copies thereof and the
          Borrower shall give the Lender such written authorities or other
          directives and provide such facilities and access as the Lender may
          require for the aforesaid inspection and the Borrower agrees to pay
          all reasonable costs and expenses (including any travelling expenses)
          which the Lender may incur in connection with the inspection;

                                       12
<PAGE>   16
     (r)  the Lender shall have the right to inspect all materials machinery and
          equipment on order prior to their despatch from the supplier to the
          Borrower and/or at any time thereafter;

     (s)  it shall forthwith inform the Lender in writing of any changes in the
          directors or members of the Borrower;

     (t)  it shall maintain a positive networth of not less than United States
          Dollars Forty-Two Million (US$42,000,000.00) at all times. For the
          purpose of this Clause, "networth" means at any time in respect of the
          Borrower the amount calculated in accordance with generally accepted
          accounting principles in Singapore of the aggregate at the time of
          (i) the amounts paid up or credited as paid up in respect of its
          issued share capital, and (ii) its retained earnings less the
          aggregate at that time of (a) all losses carried forward to the extent
          to which the same have not been taken into account in the computation
          of retained earnings, (b) the amount of any deficit in reserves and
          excluding any surplus arising from a revaluation of the assets of the
          Borrower and (c) any amount attributable to goodwill;

     (u)  it undertakes with the Lender that at all times its financial position
          shall be such that Net Borrowings shall not exceed one hundred per
          cent (100%) of net worth. For the purposes of this sub-clause, the
          expressions:-

          (i)    "net worth" has the same meaning as in Clause 10(t);

          (ii)   "Net Borrowings" at any time means the aggregate Financial
                 Indebtedness of the Borrower (including without limitation
                 overdue interest and the capitalised element in accordance with
                 generally accepted accounting principles in Singapore of
                 outstanding commitments under finance leases);

          (iii)  "Financial Indebtedness" means indebtedness incurred in respect
                 of:

                 (1)   money borrowed or raised;

                 (2)   any bond, bill of exchange, note, loan stock, debenture,
                       commercial paper or similar security or instrument;

                 (3)   acceptance, documentary credit or guarantee facilities;

                 (4)   deferred payments for assets or services acquired but
                       excluding trade credit in the ordinary course of business
                       not exceeding ninety (90) days;

                 (5)   rental payments so far as attributable to payments of
                       capital under finance leases, whether in respect of land,
                       building, machinery, equipment or otherwise;

                 (6)   payments under hire purchase contracts;

                                       13
<PAGE>   17
                 (7)   factored debts, to the extent that there is recourse;

                 (8)   guarantees, bonds, standby letters of credit or other
                       instruments issued in connection with the performance of
                       contracts or obligations;

                 (9)   guarantees, indemnities or other assurances against
                       financial loss in respect of indebtedness of any person
                       falling within any of paragraphs (1) to (8) inclusive
                       above; and

                 (10)  amounts raised or obligations incurred under any other
                       transaction having the commercial effect of any of the
                       above.

     (v)  it shall obtain all necessary licences and comply with all laws and
          regulations rules and orders relating to the carrying on of its
          business;

     (w)  it shall, within seven (7) days of the receipt thereof, give to the
          Lender full particulars of any notice, order, permission or proposal
          given issued or made to the Borrower affecting its properties and
          assets by or on behalf of any planning, local government, public
          health, sanitary, housing or other authority and which in the
          reasonable opinion of the Lender could materially affect its
          properties and assets and if so required by the Lender produce such
          notice, order, permission or proposal to the Lender together with such
          copies thereof as the Lender may reasonably require and also within
          the period prescribed by such notice, order, permission or proposal
          take all reasonable or necessary steps to comply with the provisions
          of such notice, order, permission or proposal and also at the
          reasonable request of the Lender and at the costs of the Borrower make
          or join with the Lender in making such objection or representation
          against or in respect of any such notice, order, permission or
          proposal as the Lender shall reasonably deem expedient;

     (x)  it shall take all necessary steps required by the Lender to preserve
          and protect the value of the properties and assets charged herein and
          (where applicable) to enforce its title thereto;

     (y)  it will conduct through the Lender a reasonable amount of banking
          transactions and unless otherwise agreed all banking transactions
          (including foreign exchange) involving purchase of goods financed out
          of the proceeds of the banking facilities.

11.  NEGATIVE UNDERTAKINGS

     The Borrower undertakes that, so long as any moneys remain to be lent or
remains payable under this Debenture, it shall not, without the Lender's prior
written consent (such consent shall not be unreasonably withheld):-

                                       14
<PAGE>   18
(a)  effect, carry out, undertake or permit any form of re-construction,
     re-organisation, amalgamation, take-over or permit any change of the
     shareholdings held by Tsai Chung-Che who must at all times own
     beneficially, not less than nine per cent (9%) of the issued and paid-up
     share capital of the Borrower or any scheme of arrangement or compromise or
     any other scheme affecting its existing constitution or structure of share
     holdings except that the foregoing prohibition shall not apply to the
     listing of the shares of the Borrower for quotation on the official list of
     The Stock Exchange of Singapore Limited;

(b)  borrow or in any way obtain loans or advances or raise money or credit from
     any other bank;

(c)  redeem any of the Borrower's issued shares or reduce the Borrower's
     registered and paid up share capital;

(d)  enter into any agreement or obligation which could materially and adversely
     affect the ability of the Borrower to perform its obligations under this
     Debenture;

(e)  make any substantial alterations to the nature of the business of the
     Borrower from that carried on at the date of this Debenture or amend or
     alter any of the provisions in the Borrower's Memorandum and Articles of
     Association or any corporate documents relating to the borrowing powers and
     principal business activities of the Borrower;

(f)  terminate any of its principal businesses as now conducted;

(g)  make advances or loans to any person whatsoever or provide guarantees or
     indemnities to secure advances or loans to any person whatsoever or be in
     any manner directly or indirectly or contingently liable for any
     indebtedness or other obligation of any person except to or for the benefit
     of the Borrower's employees;

(h)  do or suffer to be done or omitted any act matter or thing in or in respect
     of its properties and assets or any part thereof which shall contravene the
     provisions of any act, ordinance, order, rule or regulation now or
     hereafter affecting the same and the Borrower will at all times hereafter
     indemnify and keep indemnified the Lender in full against all actions,
     proceedings, costs, expenses, claims and demands in respect of any such act
     matter or thing done or omitted to be done in contravention of the said
     provisions;

(i)  dismantle pull down or remove any part of its buildings fixtures plant
     machinery and equipment except in cases where such dismantling pulling down
     or removal shall in the opinion of the Borrower be rendered necessary by
     reason of the same being worn out or damaged, in which case the Borrower
     shall give sufficient written notice to the Lender and will replace such
     property by property of a similar nature and value after giving intimation
     to the Lender;

                                       15
<PAGE>   19
(j)  lease or licence or agree to let, lease or licence or part with possession
     with any of the properties or assets or revenues or any part thereof
     comprised in this security, save as previously disclosed in writing to and
     agreed by the Lender;

(k)  use any building comprised in its properties or suffer the same to be used
     for purposes other than those for which the same has or will be built; nor
     do or omit to do or permit or suffer to be done or omitted anything by
     reason whereof any policy of insurance effected on such properties may be
     rendered void or voidable.

12.  DEFAULT INTEREST AND DEBIT OF ACCOUNT

(1)  In the event of failure by the Borrower to make payment on the due date of
any sum due under the banking facilities or this Debenture (whether by way of a
payment, repayment or a prepayment of any principal, interest, commission,
costs, fees, charges, or otherwise) then subject always to and without prejudice
to the other rights and remedies of the Lender contained in this Debenture, the
Borrower shall (to the fullest extent permitted by applicable law) pay to the
Lender default interest at the rate applicable under the agreements and
arrangements giving rise to the relevant obligations or liabilities and if no
such rate or rates are specified, at such rate or rates which the Lender may at
the time and from time to time stipulate on that overdue sum so long as the same
remains unpaid calculated on a daily basis on a 360 day year (for amounts
denominated in United States Dollars) and a 365 day year (for amounts
denominated in Singapore Dollars) and compounded monthly from and including the
due date thereof to the day of actual payment as well after as before judgment,
if any, is obtained in respect thereof. The Borrower shall pay any interest
accrued on any overdue sum (including sums payable under this sub-clause) on the
last business day of the month in which such interest accrued, failing which
such interest shall be added to the overdue sum and itself bear interest
accordingly.

(2)  In addition to and not in derogation of the other provisions of this
Debenture if the Borrower shall fail or refuse to pay any insurance premia legal
fees stamp duty travelling expenses and other commission costs fees charges and
expenses which the Borrower is liable to pay under any provisions of this
Debenture the Lender may at its discretion after giving not less than three (3)
days' notice to the Borrower (such notice will not be required for payment of
insurance, stamp duty, taxes and any governmental authority's costs, charges and
expenses) pay the same (but shall not be under any obligation to do so) and all
such moneys so due and unpaid or paid by the Lender on the Borrower's behalf
together with interest thereon at the rate per annum exceeding by three per cent
(3%) the prevailing prime lending rate of the Lender or at such other rate(s) as
may for be prescribed from time to time by the Lender calculated from the date
of payment thereof up to the date of repayment (as well after as before
judgment) and shall on demand be repaid to the Lender by the Borrower and until
so repaid shall be a charge on the undertaking and property hereby charged in
addition to the principal moneys hereby secured and may be debited to the
account of the Borrower.

(3)  Without prejudice to the other provisions of this Debenture, the Lender
shall be entitled at its absolute discretion to debit at any time and from time
to time without prior notice to the Borrower, the current account or any other
account of the Borrower with

                                       16
<PAGE>   20
the Lender (whether in Singapore or elsewhere) for all or any moneys whether for
principal, interest, default interest, commission, costs, fees charges or any
other moneys due and payable by the Borrower under the banking facilities or
this Debenture including insurance premia, legal fees, stamp duty, travelling
expenses, governmental or statutory levies and taxes and any other costs charges
and expenses which the Borrower is liable to pay under the banking facilities or
any provisions of this Debenture but the Lender shall promptly on or after such
debiting notify the Borrower of such debiting Provided always that such debiting
shall not constitute nor be deemed to be payment of any moneys to which it
relates (except to the extent of any amount in credit in the said current
account or other account of the Borrower with the Lender) nor shall it be deemed
a waiver of a Potential Event of Default or an Event of Default.

13.  SECURITY ENFORCEABLE IN CERTAIN EVENTS

(1)  Upon happening of any of the following events:-

     (a)  if the Borrower does not pay any moneys (whether principal interest or
          otherwise) payable by it under the banking facilities or this
          Debenture at the place at and in the currency and funds in which it is
          expressed to be payable when it is due or otherwise in accordance with
          the provisions thereof or hereof provided that such failure shall not
          be an Event of Default if (i) it occurs by reason only of technical
          difficulties affecting the transfer of funds from the Borrower and
          (ii) the Lender receives such sum within three (3) days after it is
          due or payable otherwise in accordance with the provisions thereof or
          hereof; or

     (b)  if any representation or warranty made by the Borrower or any
          guarantor in or in connection with any of the banking facilities or
          this Debenture or any of the documents called for under this Debenture
          or any certificate or statement delivered or made under any of the
          banking facilities or this Debenture is incorrect or untrue in any
          material respect at the time it was made or reported or deemed to have
          been made or reported or ceases to be true and correct in any material
          respect; or

     (c)  if the Borrower and/or any guarantor commits or threatens to commit a
          breach of any of the covenants, undertakings, stipulations, terms and
          conditions or provisions contained in this Debenture and/or in any
          guarantee or in any agreement made between the Borrower and the Lender
          relating to any of the banking facilities and on the Borrower's and/or
          any guarantor's part to be observed and performed and in respect only
          of a breach which in the reasonable opinion of the Lender is capable
          of remedy such breach is not rectified within fourteen (14) days after
          notice of such breach has been given by the Lender to the Borrower
          and/or that guarantor; or

     (d)  if the accounts of the Borrower delivered to the Lender under
          Clause 10(f) are qualified in a manner or to an extent unacceptable to
          the Lender; or

     (e)  if any other indebtedness of the Borrower for borrowed moneys shall
          not be paid at its stated maturity or by reason of its default shall
          become due

                                       17
<PAGE>   21
          or be declared due prior to its stated maturity or any creditor of the
          Borrower or any guarantor for the banking facilities becomes entitled
          to declare any indebtedness of the Borrower or that guarantor for
          borrowed moneys due and payable before its stated maturity; or

     (f)  if the Borrower or any guarantor becomes insolvent, is unable to pay
          its debts as they fall due, stops or suspends payment of all or a
          material part of its debts, begins negotiations or takes any
          proceedings or other step with a view to readjustment, rescheduling or
          deferral of all its indebtedness (or of a material part of its
          indebtedness which it will or might otherwise be unable to pay when
          due) or proposes or makes a general assignment or an arrangement or
          composition with or for the benefit of its creditors or a moratorium
          is agreed or declared in respect of or affecting all or a material
          part of any indebtedness on the part of the Borrower or that guarantor
          for any moneys whatsoever; or

     (g)  if any competent order is made or step or petition is taken by any
          person for the dissolution, reorganisation, reconstruction,
          insolvency, bankruptcy or winding-up of the Borrower or any guarantor
          or for the appointment of a liquidator, receiver, administrator,
          trustee, judicial manager or other similar officer of the Borrower or
          that guarantor over its property, assets and undertakings or part
          thereof except that it shall not be an Event of Default in the case of
          a reorganisation or reconstruction permitted under Clause 11(a); or

     (h)  if the Borrower or any guarantor shall cease or threaten to cease to
          carry on any of its principal businesses as now conducted or changes
          or threatens to change the nature or scope of any of its principal
          businesses, whether voluntarily or involuntarily; or

     (i)  if a distress or execution or other similar or analogous proceeding is
          levied or enforced upon or issued against any part of the properties
          or assets of the Borrower and/or any guarantor; or

     (j)  if any legal, administrative or arbitration proceedings, suits or
          action of any kind whatsoever (whether criminal or civil) is
          instituted against the Borrower or any guarantor which in the
          reasonable opinion of the Lender will materially and adversely affect
          the ability of the Borrower or that guarantor to repay the amounts
          payable to the Lender under this Debenture or that guarantee or any
          agreement relating to any of the banking facilities or the ability of
          the Borrower or that guarantor to perform its obligations under this
          Debenture or that guarantee; or

     (k)  if any present or future security on or over all or a material part of
          the assets of the Borrower or any guarantor becomes enforceable; or

     (l)  if the Borrower or any guarantor shall transfer or otherwise dispose
          of all or any substantial part of its business or assets except in
          accordance with Clause 7(3); or

                                       18
<PAGE>   22
     (m)  if any agency of any state threatens to or seizes, compulsorily
          acquires, expropriates or nationalises all or any material part of the
          assets or properties of the Borrower or any guarantor (as the case may
          be); or

     (n)  if at any time, any act condition or thing required to be done,
          fulfilled or performed by the Borrower or any guarantor in order:-

          (i)    to enable the Borrower or such guarantor to execute and enter
                 into this Debenture or any security or guarantee and perform
                 and fulfil its obligations and liabilities in terms hereof or
                 thereof;

          (ii)   to ensure that this Debenture and any security or guarantee
                 given by such guarantor constitute legal valid and binding
                 obligations on the Borrower or such guarantor enforceable
                 against the Borrower or such guarantor in accordance with its
                 terms;

          (iii)  to ensure that this Debenture and any security or guarantee
                 given by such guarantor are admissible in evidence in Singapore
                 and such other states and countries that the Lender may
                 require,

          is not done, fulfilled or performed; or

     (o)  if there shall occur a material adverse change in the business, assets
          or financial position of the Borrower or any guarantor or if in the
          reasonable opinion of the Lender the Borrower or any guarantor may be
          unable to perform its obligations under this Debenture or that
          guarantee or any agreement in relation to any of the banking
          facilities and notice thereof has been given to the Borrower; or

     (p)  if the security under any security given by the Borrower to the Lender
          or the business of the Borrower or any guarantor is in jeopardy and
          notice thereof has been given to the Borrower or such guarantor; or

     (q)  if the management of the Borrower as at the date of this Debenture is
          wholly or substantially displaced or has its authority curtailed; or

     (r)  if the Borrower or any guarantor is declared by the Minister to be
          declared company under the provisions of Part IX of the Companies Act
          (Chapter 50, Singapore Statutes); or

     (s)  if (in the case of an individual) any guarantor dies or becomes
          insane; or

     (t)  if it is or will become unlawful for the Borrower or any guarantor to
          perform or comply with any one or more of its material obligations
          under any agreement or arrangement relating to any of the banking
          facilities, this Debenture or any security or guarantee; or

     (u)  if any of the authorizations referred to in this Debenture or any of
          the banking facilities is not obtained or granted or ceases to be in
          full force and effect or is modified unless such authorization is no
          longer required or applicable; or

                                       19
<PAGE>   23
     (v)  if it becomes impossible for the Borrower or any guarantor to perform
          any of its obligations under this Debenture, any agreement or
          arrangement relating to any of the banking facilities or any guarantee
          or for the Lender to exercise all or any of its rights, powers and
          remedies hereunder or under any agreement or arrangement relating to
          any of the banking facilities or any guarantee; or

     (w)  if this Debenture or a guarantee is terminated or extinguished or
          otherwise ceases to remain in full force and effect or if there shall
          be any change in any applicable law, regulations, treaty, directive or
          requirement which makes it impossible or unlawful for the Lender to
          make or continue making available the banking facilities or any part
          thereof to the Borrower; or

     (x)  if a substantial part of any property or assets (whether or not
          belonging to the Borrower) mortgaged or charged or pledged to or in
          any way held by the Lender as security for any indebtedness to the
          Lender (or any moneys secured or intended to be secured by this
          Debenture) is seized or expropriated or is subject to compulsory
          purchase or acquisition (whether subject to compensation or not) or is
          wholly or substantially destroyed,

the Lender may at any time thereafter by notice in writing to the Borrower
declare that the whole of the principal moneys lent or advanced by the Lender
(including contingent liabilities) or the balance thereof for the time being
outstanding and unpaid together with interest and all other moneys hereby
secured to be immediately due and payable whereupon they shall become so due and
payable without further demand, notice or legal formality of any kind and the
security hereby created shall become enforceable.

(2)  The Borrower undertakes to immediately notify the Lender in writing after
it has notice of the occurrence of any of the Events of Default, such
notification to set out the details of the Event of Default concerned.

14.  POWERS OF THE LENDER ON EVENTS OF DEFAULT

(1)  At any time after the principal sum interest and all other moneys as
mentioned in Clause 13 hereof shall have become payable under the said Clause 13
the Lender shall be entitled to exercise all or any of the following rights or
powers, that is to say:-

     (a)  the Lender or any person authorised by the Lender may enter into the
          land and premises belonging to and/or occupied by the Borrower
          anywhere without notice and may take possession and control of all or
          any of the property and assets hereby charged without being liable as
          a mortgagee in possession; and

     (b)  the Lender may immediately exercise all the statutory powers of a
          mortgagee in respect of all or any of the property and assets hereby
          charged (including but not limited to the power of sale).

(2)  The provisions of Section 25 of the Conveyancing and Law of Property Act
(Chapter 61, Singapore Statutes), as amended or re-enacted from time to time,
(hereinafter called "the said Act") shall be so varied or extended in the
application to this Debenture that the

                                       20
<PAGE>   24
power of sale may be exercised at any time in accordance with the foregoing
provisions and in exercising the power of sale the Lender may sell all or any of
the property and assets hereby charged without any of the restrictions imposed
by the said Section 25 and at such prices and in such manner and subject to such
terms and conditions as the Lender shall reasonably think fit.

15.  APPOINTMENT OF RECEIVER

     At any time after the principal moneys interests and other moneys hereby
secured shall have become payable under Clause 13 hereof the Lender may appoint
by writing under the hand of the President, Deputy President, Executive
Vice-President, Senior Vice-President, Vice-President, Assistant Vice-President,
Treasurer, Legal Officer or other authorised officer for the time being of the
Lender any person to be a Receiver of the undertaking property and assets
comprised in this security and may in like manner from time to time remove any
such Receiver so appointed and appoint another in his stead.

16.  POWERS OF RECEIVER

     A Receiver so appointed shall be the agent of the Borrower and the Borrower
shall be solely responsible for his acts and defaults and remuneration. Such
Receiver shall have power:-

     (a)  To enter into and take possession or control of any land or premises
          of the Borrower or any part thereof or collect and get in any property
          and assets comprised in this security and for that purpose to take any
          proceedings in the name of the Borrower or otherwise as may be deemed
          expedient.

     (b)  To carry on manage or concur in carrying on and managing the business
          of the Borrower or any part thereof and for any of those purposes to
          raise or borrow any moneys that may be required upon the security of
          the whole or any part of the Borrower's property.

     (c)  Where any capital in respect of any shares of the Borrower is
          outstanding and uncalled to require the Borrower forthwith to call up
          all or so much of such uncalled capital of the Borrower as may be
          sufficient to pay to the Lender all moneys then due and owing
          hereunder.

     (d)  Forthwith and without restriction to sell or agree in selling
          (obtaining only when and where necessary the leave of the Court) any
          of the Borrower's property and assets comprised in this security or
          any part thereof by public auction or by private contract subject to
          such conditions respecting title or evidence of title or other matter
          as the Receiver may deem fit with power to vary any contract for sale
          and to resell without being answerable for any loss occasioned
          thereby. Any such sale may be for cash shares stocks debentures
          debenture stock or other obligations or valuable consideration and may
          be payable in a lump sum or by installments as the Lender shall think
          fit. Plant machinery and other fixtures may be severed and/or detached
          and sold separately from the premises containing them without the
          consent of the Borrower.

                                       21
<PAGE>   25
     (e)  To lease let hire and licence or agree in leasing letting hiring and
          licensing or accept surrenders of leases tenancies or licences of all
          or any part of the land and premises or the Borrower's property and
          assets on such terms and for such consideration as the Receiver may
          deem fit.

     (f)  To make any arrangements or enter into any compromise which he shall
          think expedient.

     (g)  To repair and keep in repair and make or effect all or any
          improvements of the Borrower's property and assets and for this
          purpose to apply in the name of the Borrower for any licences
          permissions or consent required under any Act Ordinance order rule
          regulations or by-laws and to take out maintain and renew all
          insurances in respect of the Borrower's property and assets against
          loss or damage by fire or any other risk and for such sums as he shall
          think fit.

     (h)  To employ and dismiss managers agents officers servants clerks
          accountants and workmen and others in respect of the Borrower's
          property and assets charged hereunder and upon such terms and with
          such salaries wages or remuneration for such purposes as he shall
          think proper.

     (i)  To execute and do all such acts deeds and things as to him or the
          Lender may appear necessary or proper for or in relation to any of the
          purposes aforesaid and which he lawfully may or can do as agent for
          the Borrower.

     (j)  To appoint and remove at pleasure any substitute for or agent under
          the Receiver in respect of all or any of the matters aforesaid upon
          such terms as the Receiver shall reasonably think fit.

     (k)  Generally to do or cause to be done such acts or things which the
          Borrower may have done in the ordinary conduct of its business as well
          for the protection as for the improvement of the property and assets
          comprised in this security.

17.  APPOINTMENT OF RECEIVER AS ATTORNEY

     The Borrower hereby irrevocably appoints any and every Receiver appointed
as aforesaid and his substitute or substitutes to be the attorney or attorneys
of the Borrower, where more than one jointly and severalty and on its behalf and
as its acts and deeds to execute sign seal and deliver and otherwise perfect any
deed assurance agreement instrument or act which may be required or may be
deemed proper for any of the purposes set out in the preceding clause hereof and
with power for such attorney or attorneys to appoint or remove any substitute or
substitutes.

18.  APPLICATION OF MONEYS BY RECEIVER

     The net profits of carrying on the said business and the net proceeds of
any sale shall be applied by the Receiver subject to the claims of all secured
and unsecured creditors (if any) ranking in priority to this Debenture:-

                                       22
<PAGE>   26
     Firstly, in or towards payment of all costs charges and expenses of and
incidental to the appointment of the Receiver and the exercise by him of all or
any of the powers aforesaid including the reasonable remuneration of the
Receiver.

     Secondly, in or towards payment of all costs, fees, charges and expenses
whatsoever incurred or paid by the Lender under or in connection with the
Debenture.

     Thirdly, in or towards payment to the Lender of all interest for the time
being owing to the Lender.

     Fourthly, in or towards payment of all principal moneys and other sums due
to the Lender and hereby secured.

     Fifthly, any surplus shall be paid to the Borrower.

     Save as aforesaid the Lender shall be under no liability whatsoever to the
Receiver for his remuneration costs charges expenses or otherwise.

19.  APPOINTMENT OF RECEIVER NOT AFFECTING OTHER POWERS

     The powers of appointment of a Receiver hereunder shall be in addition to
and not to the prejudice of any statutory and other powers (whether of sale,
receiving rents, distraining for rents or otherwise) of the Lender or otherwise
and so that such powers shall be and remain exercisable by the Lender in respect
of any of the property or assets comprised in this security and of which no
appointment of a Receiver by the Lender shall from time to time be subsisting
notwithstanding that an appointment under the provisions i hereof shall have
subsisted and been withdrawn in respect of that property or asset or shall be
subsisting in respect of any other property or assets hereby charged.

20.  APPOINTMENT OF LENDER AS ATTORNEY

(1)  The Borrower hereby irrevocably appoints the Lender and any attorney for
the time being of the Lender and either of them to be its attorney or attorneys
and in its name and on its behalf and as its acts and deeds to execute sign seal
deliver and otherwise perfect any such legal or other mortgages charges
assignments transfers or agreements as aforesaid or (without executing any such
mortgage) any deed assurance instrument or act which may be required or may be
deemed proper or expedient for the full exercise of all or any of the powers
hereby conferred on the Lender or the Receiver and also for the purpose of
enforcement or realisation of the security created herein Provided That the
Lender shall not exercise any of the powers conferred under this Clause 20(1)
unless and until the Borrower fails to perform, observe or comply with any of
the provisions herein.

(2)  The Borrower hereby declares that any and all such deeds instruments and
documents executed on behalf of the Borrower by the Lender as aforesaid by
virtue of the provisions hereof shall be as good valid and effectual to all
intents and purposes whatsoever as if the same has been duly and properly
executed by the Borrower itself and the Borrower hereby undertakes that, when
required by the Lender so to do, the Borrower shall ratify and confirm all such
deeds instruments and documents executed by virtue of the authority and the
powers hereby conferred.

                                       23
<PAGE>   27
21.  SPECIAL CONSULTANT

(1)  If there shall have arisen circumstances which lead the Lender to
reasonably determine that the Borrower is or will be unable to perform any of
its material obligations under this Debenture or any other agreement made
between the Borrower and the Lender relating to the banking facilities the
Borrower will, notwithstanding that none of the events mentioned in Clause 13(1)
has occurred, forthwith upon the Lender's request appoint a Special Consultant
nominated by the Lender. In the event of the Borrower failing to make the
appointment, the Lender shall be entitled at its discretion at any time
thereafter to appoint the Special Consultant on the Borrower's behalf.

(2)  The Lender shall have the full discretion to nominate any person suitably
qualified to be a Special Consultant and, without limiting the generality of the
foregoing, the Lender may for the purpose nominate an accountant, lawyer, banker
or engineer.

(3)  The Special Consultant so appointed (whether by the Borrower or by the
Lender on the Borrower's behalf) shall be the agent of the Borrower and the
Borrower shall be solely responsible for his acts, defaults and remuneration.
The Special Consultant shall perform and carry out all such duties and functions
as the Lender may specify which may, without limitation, include the following:-

     (a)  to carry out an audit for the accounts of the Borrower and report the
          outcome of such audit to the Lender;

     (b)  to verify and submit to the Lender a list of the Borrower's account
          receivables; and

     (c)  to verify and submit to the Lender a list of the Borrower's creditors.

22.  SET-OFF

     In addition to any banker's lien, right of set-off or other right which the
Lender may have, the Lender shall be entitled at any time at its absolute
discretion and without prior notice to the Borrower to combine or consolidate
all or any of the accounts of the Borrower with the Lender including accounts of
the Borrower either alone or jointly with others (whether current, deposit,
savings or of any other nature whatsoever, and whether in Singapore Dollars or
other currency) wheresoever situate (in Singapore or elsewhere) and set-off or
transfer any sum standing to the credit of any one or more such accounts in or
towards satisfaction of any moneys owing by and any obligations and liabilities
of the Borrower to the Lender on any other account (whether in Singapore or
elsewhere) and whether such liabilities be actual, contingent, liquidated,
unliquidated, primary, collateral, several or joint and where the Borrower's
liabilities are contingent, the Lender shall be entitled to set aside such
amounts to keep the Lender in funds for fully meeting and discharging its
liabilities. Where such combination, set-off or transfer requires the conversion
of one currency into another, the Lender is hereby authorised to effect such
conversion at the Lender's own rate of exchange then prevailing and in
accordance with its normal practice. The Lender shall notify the Borrower in
writing as soon as practicable after any combination set-off or transfer is
effected.

                                       24
<PAGE>   28
23.  RIGHT OF REVIEW

(1)  Unless expressly provided otherwise in an agreement or arrangement relating
to a banking facility granted by the Lender to the Borrower:-

     (a)  The banking facilities granted or to be granted shall be reviewed from
          time to time and at any time by the Lender; and

     (b)  The Lender shall at any time and from time to time be entitled to
          terminate cancel or withdraw the banking facilities or part thereof
          and nothing in these presents contained shall be deemed to impose on
          the Lender any obligation either at law or in equity to make or
          continue to make any advances to the Borrower.

(2)  Without prejudice to the generality of Clause 23(1), the Lender may from
time and at any time by notice to the Borrower require additional or further
security or securities for the banking facilities unless expressly provided
otherwise in an agreement or arrangement relating to a banking facility granted
by the Lender to the Borrower.

(3)  Unless expressly provided otherwise in an agreement or arrangement relating
to a banking facility granted by the Lender to the Borrower, the banking
facilities granted or to be granted to the Borrower shall be repayable to the
Lender on demand.

(4)  In the event the Lender demands repayment of the banking facilities or any
part thereof the Borrower shall repay to the Lender all principal money owing to
it under such banking facilities together with accrued interest thereon and any
other sum then due to the Lender under such banking facilities and shall pay the
Lender such amount necessary for meeting and discharging all its liabilities
(whether actual or contingent) under all banker's guarantees and letters of
credit and all other contingent liabilities (and irrespective of whether or not
any beneficiary under guarantee or letter of credit has made any claim thereon).

24.  NO ENQUIRY BY THIRD PARTY

     Any person dealing with the Lender or the Receiver shall not be concerned
to enquire whether any event has happened upon which any of the powers contained
in these presents are or may be exercisable by the Lender or the Receiver or
otherwise as to the propriety or regularity of any exercise thereof or of any
act purporting or intended to be an exercise thereof or whether any moneys
remains owing upon this security.

25.  THE LENDER NOT ANSWERABLE FOR LOSS

     The Lender shall not be answerable for any involuntary loss happening in or
about the exercise or execution of the powers or trusts which may be vested in
the Lender by virtue of this Debenture or by law for the time being in force
except for any loss resulting from any gross negligence of the Lender and/or its
agents or employees.

                                       25
<PAGE>   29
26.  INDEMNITY

(1)  Without prejudice to the foregoing terms and provisions, the Borrower shall
on demand indemnify the Lender and hold the Lender harmless from and against all
losses, expenses, costs or liabilities whatsoever, legal or otherwise, which the
Lender may reasonably sustain, suffer or incur as a consequence of any
enforcement of the payment of any principal moneys when due or any interest
accrued thereon or any other amounts payable hereunder and any prepayment of a
banking facility otherwise than or any failure to borrow or to proceed with a
banking facility in accordance with the agreements or arrangements applicable to
such banking facility and the occurrence of any Event of Default.

(2)  Such losses, expenses, costs or liabilities shall include but not be
limited to such amount as the Lender shall certify (such certification being
conclusive and binding upon the Borrower save for any manifest error) as being
necessary to compensate the Lender for (a) any loss of interest or commission
incurred on account of such default, and (b) any costs, interest, commission or
fees paid or payable on account of any funds borrowed in order to carry or
maintain any unpaid amount including without limitation any loss which the
Lender shall certify as sustained or incurred by it in maintaining or funding
the banking facilities or any part thereof or in liquidating or in re-employing
deposits from third parties acquired to effect or maintain the banking
facilities or any part thereof as a consequence of any prepayment of the banking
facilities or part thereof being made (for any reason whatsoever) except to the
extent that such interest, commission or fees are recovered under the provisions
of this Debenture.

27.  DISCLOSURE

     Without prejudice to all rights of the Lender to disclose information
relating to the accounts of the Borrower, and for all purposes whether under
common law or Section 47(4)(a) of the Banking Act, (Chapter 19, Singapore
Statutes) or otherwise, the Borrower hereby irrevocably (so long as any moneys
or liabilities shall remain owing or unpaid to the Lender hereunder or any
banking facility or service is extended by the Lender to the Borrower) permits
the, Lender and all persons to whom Section 47(3) of that Act applies, to
disclose (whether with or without notice to the Borrower and whether orally or
in writing) any information whatsoever concerning any matters or transactions in
relation to the banking facilities and the account(s) (including any information
whatsoever regarding the money or other relevant particulars of any account)
which the Borrower now has or may hereafter have with the Lender:-

     (a)  to any chargee or mortgagee or proposed or purported chargee or
          mortgagee of or any other person having or claiming any interest in
          the property and assets hereby charged or any person in favour of whom
          the Borrower is proposing to create or grant an interest in the
          property and assets hereby charged for the purpose of seeking any
          consent for the creation or variation of any interest in or increasing
          the amount of moneys and liabilities secured or to be secured by any
          encumbrance over the property and assets hereby charged or in
          connection with any security sharing arrangements relating to the
          property and assets hereby charged or any enforcement of any security
          or any sale transfer disposition or any

                                       26
<PAGE>   30
          other dealing by any person whatsoever over or of or with the property
          and assets hereby charged;

     (b)  to the Commissioner of Stamp Duties, the Registrar of Companies,
          Registrar of Businesses, Registrar of Titles, Registrar of Deeds
          and/or any other government officials or departments or relevant
          bodies for purposes in connection with stamping (or assessment of
          stamp duties on), registering, lodging or filing any or all documents
          or conducting of searches in connection with the banking facilities;

     (c)  to CTB, the Monetary Authority of Singapore and any other governmental
          authority; and

     (d)  to any solicitor acting for the Lender, the Borrower, any guarantor or
          any other party involved with the banking facilities or any security
          therefor, in relation to the accounts of the Borrower, the banking
          facilities and any security given in connection therewith or any other
          party mentioned in the foregoing provisions of this Clause,

and save aforesaid the Lender shall obtain the Borrower's prior written consent
(such consent not to be unreasonably withheld) prior to the disclosure of any
matter set out above.

28.  CALCULATIONS AND EVIDENCE

     The entries made in the accounts maintained by the Lender in accordance
with its usual practice and a statement or certificate in writing signed by the
Lender or its servant or any person nominated by the Lender under the hand of
any authorised officer of the Lender certifying (i) the amount due at any time
in respect of any moneys owing or payable by the Borrower to the Lender and/or
any liabilities incurred by the Lender and payable by the Borrower to the Lender
under or by virtue of any terms, conditions or stipulations of this Debenture
and/or any banking facilities, or (ii) any interest rate applicable to it, or
(iii) its costs of funds, or (iv) any other matter provided in this Debenture,
shall (in the absence of any manifest error) be prima facie evidence of the
amounts of the obligations of the Borrower and of the matters so certified.

29.  WAIVER NOT TO PREJUDICE RIGHT OF LENDER

(1)  The Lender may from time to time waive either unconditionally or on such
terms and conditions as it may reasonably deem fit any breach by the Borrower of
any of the covenants undertakings stipulations terms and conditions herein
contained and any modification thereof but without prejudice to its powers
rights and remedies for enforcement thereof, Provided Always that:-

     (a)  neither any neglect nor forbearance of the Lender to require and
          enforce payment of any moneys hereunder or the performance and
          observance of any covenants undertakings stipulations terms and
          conditions herein maintained, nor any time which may be given to the
          Borrower shall in any way prejudice or affect any of the rights powers
          or remedies of the Lender

                                       27
<PAGE>   31
          at any time afterwards to act strictly in accordance with the
          provisions hereof;

     (b)  no such waiver of any such breach as aforesaid shall prejudice the
          rights of the Lender in respect of any other or subsequent breach of
          any of the covenants undertakings stipulations terms or conditions
          aforesaid.

(2)  Any such waiver and any consent by the Lender under any provision of
this Debenture must be in writing and may be given subject to any reasonable
conditions deemed fit by the Lender. Any waiver or consent shall be effective
only in the instance and for the purpose for which it is given.

(3)  The powers which this Debenture confers on the Lender hereunder are
cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law and may be exercised as often as the Lender thinks
appropriate in accordance with this Debenture.

30.  INDULGENCE OF THE LENDER NOT TO DISCHARGE THE BORROWER

     The liability of the Borrower hereunder shall not be impaired or discharged
by reason of the fact that any person is or has become in any way, whether with
or without the acceptance of the Lender, liable to pay any of the moneys owing
by the Borrower hereunder or by reason of any time or other indulgence being
granted by or with the consent of the Lender to any such person who or which may
be in any way liable to pay any of the moneys secured hereby or by any other
security in favour of the Lender or by reason of any arrangement being entered
into or composition accepted by the Lender modifying the operation of law or
otherwise its rights and remedies under the provisions of this Debenture.

31.  RIGHT OF CONSOLIDATION

     Section 21(1) of the said Act (restricting the right of consolidation)
shall not apply to this security, and in addition and without prejudice to any
right of consolidation none of the property of the Borrower which at the date
hereof is or which at any time hereafter shall become subject to a mortgage or a
charge in favour of or vested in the Lender shall be redeemed except in payment
of not only all moneys thereby secured but also all moneys secured by this
Debenture.

32.  CURRENCY INDEMNITY

(1)  The obligation of the Borrower shall be to pay the obligations or
liabilities in the same currency in which the said obligations or liabilities
are incurred ("relevant currency"). Any amount received or recovered in a
currency other than the relevant currency (whether as a result of, or arising
from the enforcement of, a judgment or order of a court of any jurisdiction in
the dissolution of the Borrower or otherwise) in respect of any sum expressed to
be due to the Lender from the Borrower under the agreements or arrangements
applicable to the relevant banking facilities shall only constitute a discharge
to the Borrower to the extent of the relevant currency amount which the Lender
is able,

                                       28
<PAGE>   32
in accordance with its usual practice, to purchase with the amount so
received or recovered in that other currency on the date of that receipt or
recovery (or, if it is not practicable to make that purchase on that date, on
the first date on which it is practicable to do so).

(2)  If that amount in the relevant currency is less than the relevant currency
amount expressed to be due to the Lender under this Debenture, the Borrower
shall indemnify the Lender against any loss sustained by it as a result thereof.
In any event, the Borrower shall indemnify the Lender against the cost of making
any such purchase. For the purpose of this Clause, it shall be sufficient for
the Lender to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

(3)  These indemnities constitute a separate and independent obligation from the
other obligations in this Debenture, shall give rise to a separate and
independent cause of action, shall apply irrespective of any indulgence granted
by the Lender and shall continue in full force and effect despite any judgment,
order, claim or proof for a liquidated amount in respect of any sum due under
this Debenture or any judgment or order. No proof or evidence of any actual loss
may is required.

33.  TAXES

(1)  All sums payable by the Borrower under this Debenture shall be paid
(i) free of any restriction or condition, (ii) free and clear of and without any
deduction or withholding (except to the extent required by Singapore law) on
account of any taxes, levies or any other charges whatsoever imposed by
Singapore law (including but not limited to any goods and services tax) present
or future and (iii) without deduction or withholding (except to the extent
required by Singapore law) on account of any other amount, whether by way of
set-off counterclaim or otherwise.

(2)  If (i) the Borrower or any other person on behalf of the Borrower is
required by Singapore law to make any payment deduction or withholding on
account of any such taxes levies charges or other amount from any sum paid or
payable by the Borrower to the Lender or any sum received or receivable by the
Lender under this Debenture or (ii) the Lender (or any person on its behalf) is
required by Singapore law to make any deduction or withholding from, or (except
on account of tax on the overall net income of the Lender) any payment on or
calculated by reference to the amount of, any sum received or receivable by the
Lender under this Debenture:-

     (a)  the Borrower shall notify the Lender of any such requirement or any
          change in any such requirement as soon as practicable after the
          Borrower becomes aware of it;

     (b)  the Borrower shall pay any such taxes, levies, charges or other amount
          before the date on which the penalties attach thereto, such payment to
          be made, if the liability to pay Is Imposed on the Borrower, for the
          Borrower's account, or otherwise on behalf of and in the name of the
          Lender (if the liability to pay is imposed on the Lender);

     (c)  the sums payable by the Borrower shall (except, in the case of any
          such payment, to the extent that its amount is not ascertainable when
          that sum

                                       29
<PAGE>   33
          is paid) be increased to the extent necessary to ensure that,
          after the making of that deduction, withholding or payment, the Lender
          receives on the due date and retains (free from the liability in
          respect of any such deduction, withholding or payment) a net sum equal
          to what it would have received and so retained had no such deduction,
          withholding or payment been required or made; and

     (d)  within fourteen (14) days after paying any sum from which the Borrower
          is required by law to make any deduction or withholding, and within
          fourteen (14) days after the due date of payment of any taxes, levies,
          charges or the amount which the Borrower is required by paragraph (b)
          above to pay, the Borrower shall deliver to the Lender evidence of
          such deduction, withholding or payment and of the remittance thereof
          to the relevant taxing or other authority.

(3)  Without prejudice to the generality of the foregoing, in the event that any
goods and services tax or value added tax or any other taxes levies or charges
whatsoever now or hereafter required by law to be paid on or in respect of any
sums payable to the Lender under or relating to this Debenture or the banking
facilities granted to the Borrower, the same shall (except to the extent
prohibited by law) be borne by the Borrower and the Borrower shall pay to the
Lender on demand a sum equivalent to the amount of such goods and services tax
or value added tax or other taxes, levies or charges (or such part thereof which
the law does not prohibit the Lender from collecting from the Borrower) less any
such part thereof as has been paid by the Borrower under the preceding
subclauses, in addition to all other sums payable to the Lender under this
Debenture and the Borrower shall Indemnify the Lender against all payments of
such amounts.

(4)  The obligations of the Borrower under this Clause 33 shall survive the
repayment of the banking facilities and termination of this Debenture.

34.  CHANGE IN CIRCUMSTANCES

(1)  If at any time the Lender determines that it is or will become unlawful or
contrary to any directive of any agency of Singapore for it to allow all or part
of the banking facilities or any other moneys to remain outstanding, to make,
fund or allow to remain outstanding all or part of the banking facilities and/or
to carry out all or any of its other, obligations under this Debenture and/or to
charge or receive interest, fees or commission at the rate or rates applicable,
the Lender shall promptly notify the Borrower to that effect and upon such
notification to the Borrower the obligation of the Lender to make available the
banking facilities shall cease to the extent necessary to comply with the
relevant law or directive, and the Borrower shall procure the release of all the
banker's guarantees and letters of credit issued pursuant to the banking
facilities granted by the Lender which are then still in force or pay the Lender
such sums as are required to enable the Lender to procure such release and
prepay without premium or penalty ail moneys owing to the Lender under this
Debenture or the banking facilities on the date necessary to comply with the
relevant law or directive (but without prejudice to Clause 26 which shall
nevertheless apply.)

                                       30
<PAGE>   34
(2)  If the Lender determines that, as a result of (a) the introduction of or
any change in, or in the interpretation or application of any law, regulation or
treaty of Singapore, or (b) compliance by it with any directive of any agency of
Singapore:-

     (a)  the cost to the Lender of making available all or any part of the
          banking facilities or of making, maintaining or funding all or any
          part of the banking facilities is increased; and/or

     (b)  any sum received or receivable by the Lender under this Debenture or
          any agreement or arrangement relating to any of the banking facilities
          or the effective return to it under this Debenture or any agreement or
          arrangement relating to any of the banking facilities is reduced
          (except on account of tax on its overall net income); and/or

     (c)  the Lender makes any payment (except on account of tax on its overall
          net income) or foregoes any part of any interest fee or other return
          on or calculated by reference to the amount of any sum received or
          receivable by it under or any other matter relating to this Debenture
          or any agreement or arrangement relating to any of the banking
          facilities,

the Borrower shall indemnify the Lender against that increased cost, reduction,
payment or foregone interest or other return (except to the extent that the
Lender has already been compensated therefor by an increase in the relevant
interest rate) and, accordingly, shall from time to time on demand (whenever
made) pay to the Lender for its own account the amount certified by it to be
necessary so to indemnify it and any such certificate shall contain in
reasonable detail the basis and calculation of the amount the Borrower is liable
to indemnify the Lender under this Clause 34(2).

35.  PAYMENT OF COSTS

The Borrower shall indemnify the Lender for and shall pay forthwith to the
Lender on demand:-

     (a)  all reasonable expenses including stamp documentary and other duties
          (whether as a penalty or otherwise) legal fees goods and services tax
          administrative registration and execution fees out-of-pocket expenses
          and any other reasonable costs or charges incurred or expended by the
          Lender In connection with the negotiation preparation and/or
          completion of this Debenture or any charges mortgages pledges
          guarantees or other documents required by the Lender under the
          provisions of this Debenture; and

     (b)  all expenses including all legal fees as between solicitors and
          clients (on a full indemnity basis) and other expenses costs and
          disbursements whatsoever including but not limited to stamp or other
          duties incurred by the Lender in connection with any variation consent
          or approval relating to the Debenture or in connection with demanding
          and enforcing payments of moneys due hereunder or otherwise howsoever
          in the enforcement or attempted enforcement of any of its rights under
          this Debenture or incurred in connection with any delay or omission on
          the part of the Borrower to pay

                                       31
<PAGE>   35
          stamp or other duties in connection with this Debenture or any other
          documents called for by this Debenture.

36.  SERVICE OF DEMAND OR NOTICE

(1)  Except as otherwise expressly provided herein, any notice, request, demand
     or other communication to be given or served under this Debenture to or on
     any party under this Debenture may be delivered at or sent by prepaid
     registered post or by telex or facsimile transmission to the address, telex
     number or facsimile number and marked for the attention of the person or
     department (if any) from time to time designated by that party for the
     purpose of this Debenture and shall be deemed to be duly served:-

     (a)  if it is delivered, at the time of delivery;

     (b)  if it is sent by prepaid registered post, forty-eight (48) hours after
          posting thereof; or

     (c)  if it is sent by telex or facsimile transmission, immediately after
          transmission thereof if the date of transmission is a business day,
          and if the date of transmission is not a business day, then the notice
          by telex or facsimile transmission shall be deemed to be served on the
          next business day.

(2)  Any communication from the Borrower shall be irrevocable, and shall not be
     effective until actually received by the addressee. Except as otherwise
     expressly provided herein, all notices, requests, demands or other
     communications which are required by this Debenture to be in writing may be
     made by telex or facsimile transmission.

(3)  Each notice, request demand or other communication in connection herewith
     may be given to or served on the relevant party at its address, telex
     number or facsimile number set out below or as such party hereto shall from
     time to time notify the other parties.

     The Borrower

     UNITED TEST AND ASSEMBLY CENTER (S) PTE LTD
     31 Exeter Road #14-01/04
     Comcentre I Tower
     Singapore 239732

     Attention: Stephen Lin

     Facsimile: 5511155

                                       32
<PAGE>   36
     The Lender

     THE DEVELOPMENT BANK OF SINGAPORE LIMITED
     Institutional Banking, Singapore Corporate 1
     6 Shenton Way
     DBS Building Tower One
     Singapore 068809

     Attention:     Managing Director, Institutional Banking
                    Singapore Corporate 1

     Facsimile:     65-3235410

(4)  For the purposes of this Clause 36, each of the parties hereto shall from
     time to time notify the other parties in writing of an address in Singapore
     where such notice, request or demand or other communication as aforesaid
     can be given or served.

37.  RIGHT OF ASSIGNMENT

(1)  This Debenture shall be binding upon and inure to the benefit of the
Borrower and the Lender and the successors in title and assigns of the Lender
and any reference in this Debenture to any party shall be construed accordingly.
All undertakings, agreements, representations and warranties given, made or
entered into by the Borrower under this Debenture shall survive the making of
any assignments hereunder.

(2)  The Borrower shall have no right to assign or transfer any of its rights or
obligations hereunder and it shall remain fully liable for all of its
undertakings, agreements, duties, liabilities and obligations hereunder, and for
the due and punctual observance and performance thereof.

(3)  (a)  The Lender may at any time, after giving to the Borrower prior notice
          in writing of its intention to do so, assign all or part of its rights
          or transfer all or part of its obligations under this Debenture to any
          one or more banks or other lending institutions (each of which is in
          this Clause 37(3) called an "Assignee Lender") Provided that within
          fourteen (14) days of the Borrower's receipt of such notification, the
          Borrower may by giving not more than fifteen (15) days' prior notice
          in writing to the Lender, prepay, without prepayment fee or premium
          (but without prejudice to Clause 26 which shall nevertheless apply),
          to the Lender all principal moneys, accrued interest and all other
          sums hereby secured and procure the immediate discharge and
          cancellation of all banker's guarantees and letters of credit issued
          pursuant to the banking facilities granted by the Lender which are
          then still in force or pay to the Lender an amount sufficient for the
          Lender to obtain such discharge and cancellation.

     (b)  Any such Assignee Lender shall be treated as a party to this Debenture
          for all purposes of this Debenture and shall be entitled to the full
          benefit of this Debenture to the same extent as if it were an original
          party in respect of the rights or obligations assigned or transferred
          to it and all references in

                                       33
<PAGE>   37
          this Debenture to the Lender (hereinafter called the "Assignor
          Lender") shall subsequently be construed as references to the Assignor
          Lender and its Assignee Lender or Assignee Lenders to the extent of
          their respective rights or obligations assigned or transferred to it
          or them.

     (c)  In the event the Lender does not receive a notice from the Borrower
          pursuant to the provisions of the proviso to Clause 37(3)(a) within
          fourteen (14) days of the Borrower's receipt of its notification to
          the Borrower of its intention to assign, then, the Lender may proceed
          to assign all or part of its rights or transfer all or part of its
          obligations under this Debenture and without prejudice to the
          generality of Clause 27, the Lender may disclose to the Assignee
          Lender or Assignee Lenders or potential assignee or transferee such
          information about the Borrower as the Lender shall consider
          appropriate.

38.  SEVERABILITY

     If any one or more of the provisions contained in this Debenture or any
part of such provisions shall be deemed invalid, unlawful or unenforceable in
any respect under any applicable law, the validity, legality and enforceability
of the remaining provisions or part thereof contained herein shall not in any
way be affected or impaired but this Debenture shall be construed as if such
invalid, unlawful or unenforceable provision or part thereof had never been
contained herein.

39.  GOVERNING LAW AND SUBMISSION TO JURISDICTION

     This Debenture shall be governed by, and construed in accordance with, the
laws of Singapore.

40.  INTERPRETATION

(1)  In this Debenture where the context so admits:-

     (a)  an "authorization" includes any approval, consent, licence, permit,
          franchise, permission, registration, resolution, direction,
          declaration and exemption;

     (b)  "borrowed moneys" mean (a) moneys borrowed or raised (including hire
          under financial leases) and interest thereon, (b) any liability under
          any bond, note, guarantee, indemnity or other security or under
          acceptance credit facilities, (c) any liability in respect of the
          acquisition cost of assets or services to the extent payable after the
          time of acquisition or possession thereof other than assets or
          services obtained in the normal course of business, and (d) any
          guarantee or other assurance against financial loss in respect of such
          moneys borrowed or raised, interest or liability;

     (c)  "Borrower" includes the successors of the Borrower;

                                       34
<PAGE>   38
     (d)  "business day" means any day, other than a Saturday, Sunday or public
          holiday, on which banks are open for business in Singapore, and (if a
          transaction relates to United States Dollars) also in New York City;

     (e)  "CTB Securities" has the meaning assigned to it in a loan agreement of
          even date made between the Lender and the Borrower;

     (f)  an "encumbrance" includes any mortgage, charge (whether fixed or
          floating), pledge, lien (other than a lien arising by operation of law
          in the ordinary course of business unless the lien remains
          undischarged fourteen (14) days after it arose), hypothec,
          hypothecation, assignment, fiduciary assignment, fiduciary transfer,
          power of attorney to establish hypothec, power of attorney to sell,
          security interest or any other type of preferential agreement or
          arrangement having substantially the same economic effect (including
          sale and repurchase agreements, title retention or flawed asset
          arrangements);

     (g)  "Event of Default" means any, each or all (as the context may require)
          of the events specified in Clause 13(1);

     (h)  "indebtedness" shall be construed so as to include any obligation
          (whether incurred as principal or as surety) for the payment or
          repayment of money, whether present or future, actual or contingent;

     (i)  "Lender" includes the successors assigns and transferees of the
          Lender;

     (j)  "Potential Event of Default" means any condition act or event which
          with the giving of notice lapse of time and/or determination of
          materiality or other condition would become an Event of Default;

     (k)  any reference to a "Receiver" includes a reference to a "Receiver and
          Manager" or "Manager";

     (l)  "this Debenture" means this deed of debenture and includes any
          amendments and variations thereto or any further deed of debenture or
          charge or any deed executed in addition to or in substitution for the
          Debenture;

     (m)  in the absence of any expression to the contrary, all payments and
          repayments made under the provisions of this Debenture shall be made
          in the currency in which the relevant amount is incurred;

     (n)  words importing the masculine gender include the feminine or neuter
          gender;

     (o)  words importing the singular number include the plural number and vice
          versa.

     (2)  The headings to the clauses hereof shall not be deemed to be a part
     thereof or be taken into consideration in the interpretation or
     construction thereof or of this Debenture.

                                       35
<PAGE>   39
     IN WITNESS WHEREOF the Borrower has caused its Common Seal to be hereunto
affixed.

The Common Seal of UNITED TEST     )
AND ASSEMBLY CENTER (S) PTE        )
LTD was hereunto affixed in the    )
presence of:-                      )                                   [SEAL]

                                   DIRECTOR
                                                       -------------------------

                                   DIRECTOR/SECRETARY  /s/ [SIGNATURE]
                                                       -------------------------

     I,                                   , an Advocate and Solicitor of the
Supreme Court of the Republic of Singapore practising in Singapore hereby
certify that on the        day of                       A.D. 1999 the Common
Seal of UNITED TEST AND ASSEMBLY CENTER (S) PTE LTD was duly affixed to the
above written instrument in Singapore in my presence in accordance with the
regulations of the Borrower (which regulations have been produced and shown to
me).

     WITNESS my hand this         day of                  1999.

                                       36<PAGE>   1

                                                                    EXHIBIT 10.3

                           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

                                  B E T W E E N

                    J U R O N G  T O W N  C O R P O R A T I O N

                                       AND

                               MICROPOLIS LIMITED

<PAGE>   2
                           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 its Head Office at Jurong Town Hall, Jurong Town Hall Road, Singapore
(hereinafter called "the Owner" which inspection 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 purpose whatsoever.

<PAGE>   3
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.

     (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

                                       2
<PAGE>   4
                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

                                       3
<PAGE>   5
                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 a 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 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.

                                       4
<PAGE>   6
     (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.

                                       5
<PAGE>   7
     (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.

     (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 neighbouring 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.

                                       6
<PAGE>   8
     (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
<PAGE>   9
                (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 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 licence 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.

                                       8
<PAGE>   10
     (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.

                                       9
<PAGE>   11
     (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.

     (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 kerbs, drains,
                turfing or the like damaged by the Licensee, his servants,
                contractors, sub-contractors, 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 and related civil works to reinstate any
                damage caused to the roads, roadside kerbs, drains, turfing and
                the said permanent culvert by the Licensee his servants
                contractors or agents or their respective agents 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.

                                       10
<PAGE>   12
     (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
                divert 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 cost 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 regularise 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.

     (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 licence 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 licence 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

                                       11
<PAGE>   13
                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 targetted for completion on or about January 1995 at 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,
                sub-constractors, and their workmen to enter upon the said land
                facing the said proposed 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 programme.

                                       11A
<PAGE>   14
     (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
                     instalments 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
          neighbouring land of the Owner as may be required by the Owner.

                                       12
<PAGE>   15
     (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 favour
          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 licence 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:

                                       13
<PAGE>   16
     (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 thereupon determined but without prejudice to any
           right of action or other remedy of the Owner or recovery of any
           licence 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 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
hereto so far as the same are applicable.

                                       14
<PAGE>   17
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.

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 surrender AND PROVIDED FURTHER
THAT the Licensee shall in addition to the licence 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' licence 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.

                                       15
<PAGE>   18
     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              )         /s/ SWEE KEE SIONG
        Deputy Chief Executive      )         ----------------------------------
        Officer                     )
                                    )
                                    )
in the presence of:-                )

                               /s/ KANNAN MALINI
                          ----------------------------
                                 KANNAN MALINI

The Common Seal of                  )
                                    )
                                    )
MICROPOLIS LIMITED                  )                           [SEAL]
                                    )
                                    )
was hereunto affixed                )
                                    )
in the presence of:-                )

               Signature: /s/ STUART P. MABON
                          ----------------------------
               Name: STUART P. MABON
               Designation: PRESIDENT

               Signature: /s/ BARBARA V. SCHERER
                          ----------------------------
               Name: BARBARA V. SCHERER
               Designation: DIRECTOR AND SECRETARY              28.2.95

<PAGE>   19
                                 ACKNOWLEDGEMENT

State of                  CALIFORNIA
         -----------------------------------------------------------------------

County of                 LOS ANGELES
         -----------------------------------------------------------------------

On     2/28/95      before me,           CARMELA LAMALFA, NOTARY PUBLIC
   ----------------            -------------------------------------------------
       DATE                                 NAME, TITLE OF OFFICER

personally appeared      STUART P. MABON AND BARBARA V. SCHERER
                    ------------------------------------------------------------
                                  NAME(S) OF SIGNER(S)

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

[X] 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
   [STATE SEAL]                         his/her/their signature(s) on the
   CARMELA LAMALFA                      instrument the person(s), or the entity
   COMM. # 1000691                      upon behalf of which the person(s)
   Notary Public -- California          acted, executed the instrument.
   LOS ANGELES COUNTY
   My Comm. Expires SEP 19, 1997        WITNESS my hand and official seal.

                                        /s/ CARMELA LAMALFA
                                        ----------------------------------------
                                        SIGNATURE OF NOTARY

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

[X] CORPORATE OFFICER                           BUILDING AGREEMENT

     DIRECTOR
---------------------------                     --------------------------------
TITLE                                           TITLE OR TYPE OF DOCUMENT

    DIRECTOR/SECRETARY                                 37
---------------------------                     --------------------------------
TITLE                                           NUMBER OF PAGES

SIGNERS ARE REPRESENTING:

                                                --------------------------------
                                                DATE OF DOCUMENT

MICROPOLIS LIMITED
---------------------------                     --------------------------------
                                                SINGER(S) OTHER THAN NAMED ABOVE

<PAGE>   20
                      THE FIRST SCHEDULE ABOVE REFERRED TO

                                     FORM 19
                               THE LAND TITLES ACT
                                  (CHAPTER 157)
                                                            OFFICE USE ONLY
                                                        ------------------------

                                                      L ------------------------
                                                              $

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

                                      L E A S E
                            (WITH RESERVATION OF EASEMENT)

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

                                                18          (PRIVATE LOT A14269)

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

                                  T H E   L E S S O R

            --------------------------------------------------------------------
LESSOR       JURONG  TOWN  CORPORATION,  a body  corporate           OFFICE USE
             incorporated  under  the Jurong Town                       ONLY
             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

                                  T H E   L E S S E E

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

LESSEE                                                              OFFICE USE
                             MICROPOLIS LIMITED                        ONLY

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

<PAGE>   21
TERM OF     as tenant for the term of THIRTY (30) YEARS commencing the 1ST DAY
LEASE       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
            instalments on the 1st 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 $54.70CTS 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      Reference to
OF LAND          Land Register     Town      Mukim   Lot   Description of Land
             ------------------    Sub-                    (whether whole or
                 Volume  Folio   division                   part)
             -------------------------------------------------------------------
                                               18

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

                                       2
<PAGE>   22

             a RIGHT OF PASSAGE AND RUNNING of water soil electricity power gas
             telephone communication and other similar amenities from the
             adjoining and neighbouring 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   Reference to
OF LAND       Land Register       Town     Mukim  Lot    Whole or part (If
(Reservation  --------------      Sub-                    part only give
of right of   Volume  Folio     division                  details)
passage and  ------------------------------------------------------------------
running of                                  18
amenities
over land
hereby
transferred)
             ------------------------------------------------------------------

             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.

                                       3
<PAGE>   23
                       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, bye-laws 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.

     (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 SUB ASSEMBLIES, STORAGE SYSTEMS AND RELATED
                ELECTRONIC/INFORMATION TECHNOLOGY PRODUCTS ONLY except with the
                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.

                                       4
<PAGE>   24

     (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.

     (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.

                                       4A
<PAGE>   25
2A  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 of
            $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
            non-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;

            (c)  the yearly rent for the further term shall be payable by equal
                 quarterly instalments 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

                                       5
<PAGE>   26
                 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.

                                       6
<PAGE>   27
              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 authorised 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.

                                       7

<PAGE>   28
                       BELOW THIS LINE FOR OFFICE USE ONLY

--------------------------------------------------------------------------------
SPECIAL REMARKS                               ENDORSING INSTRUCTION

                                              FIRST SCHEDULE:

                                              SECOND SCHEDULE:

--------------------------------------------------------------------------------
EXAMINED                                           REGISTERED ON

                                             -------------
                                              INITIALS OF
                                              SIGNING
                                              OFFICER

DATE :                                                    REGISTRAR OF TITLES

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

<PAGE>   29
                                                           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.

                                          -------------------------------
                                                 Authorised 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
   ---------------------------------

<PAGE>   30
                        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 neighbouring 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 ail 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.

                                       1
<PAGE>   31
     (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, bye-laws, 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
               licence 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 and Law of Property Act (Chapter
               61) shall not apply. In addition, the Lessor may in its absolute
               discretion in giving the consent require, inter 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 ire
               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.

                                       2
<PAGE>   32
     (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 neighbouring 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.

     (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 from 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 the Lessor
               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.

                                       3
<PAGE>   33
     (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,
               bye-laws, 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.

     (xxi)     To pay all costs 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 sub-division 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 the Lessor PROVIDED THAT on every change of name the
               Lessee shall pay to the Lessor 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 the Lessor indemnified against all
               claims damages costs and expenses in any way relating thereto.

                                       4
<PAGE>   34
     (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 of
               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
               authorised person to inspect at all 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 authorised 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 Lessor and the
               relevant 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.

                                       5
<PAGE>   35
     (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 regularise 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 expense), 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.

     (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 agreements 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 hereinbefore 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 neighbouring
          land for building or any other purpose.

                                       6
<PAGE>   36
     (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 it such event) by the Lessee or by the person in whose favour
          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 authorised 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 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.

                                       7

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