Document:

SECOND AMENDMENT TO

SECOND AMENDMENT TO

SERIES 1999-1 VARIABLE FUNDING SUPPLEMENT

This Second Amendment to Series 1999-1 Variable Funding Supplement, dated as of July 5, 2002 (this "Amendment"), is among Prime II Receivables Corporation (the "Transferor"), FDS Bank, successor in interest to FDS National Bank, as servicer (the "Servicer"), and JPMorgan Chase Bank, successor in interest to The Chase Manhattan Bank, as trustee (the "Trustee").  Capitalized terms used in this Amendment and not otherwise defined have the meanings assigned to them in the Supplement (as defined below).

Preliminary Statements

1. Transferor, the Servicer and the Trustee are parties to that certain Series 1999-1 Variable Funding Supplement, dated as of July 9, 1999 (as amended, restated, supplemented or otherwise modified, the "Supplement") to that certain Pooling and Servicing Agreement, dated as of January 22, 1997, among the Transferor, the Servicer and the Trustee (as amended, restated or otherwise modified, the "Agreement").

2. Transferor, the Servicer and the Trustee desire to amend the Supplement to remove a certain restriction on the ability of the Transferor to remove Accounts from the Trust.

3.Section 13.1 of the Agreement permits the amendment of the Supplement with the consent of the requisite percentage of the Holders of Investor Certificates.

Agreement

The Transferor, the Servicer and the Trustee agree to the following terms and conditions:

	Amendments.  On the date of this Amendment, the Supplement is amended as follows:

Paragraph (c) of Section 6 of the Supplement is deleted in its entirety and is replaced with the following:

"(c) Section 2.7(d) shall read in its entirety as follows and shall be applicable only to the Series 1999-1 Certificates:

'Notwithstanding the foregoing, the Transferor will be permitted to designate Removed Accounts in connection with the sale by Federated or any Affiliate of Federated of all or substantially all of the capital stock or assets of any retail subsidiary of Federated if the conditions in clauses (i), (iii), and (iv) of subsection 2.7(b) have been met and the Transferor shall have delivered to the Trustee and the Administrative Agent an Officer's Certificate confirming the compliance with such conditions.'

	Effect of Amendment.  All provisions of the Supplement, as expressly amended and modified by this Amendment, shall remain in full force and effect.  After this Amendment becomes effective, all references in the Supplement (or in any related document) to "this Supplement", "hereof", "herein", or words of similar effect referring to the Supplement shall be deemed to be references to the Supplement as amended by this Amendment.  This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Agreement other than as set forth herein.

	Effectiveness.  This Amendment shall become effective as of the date hereof upon receipt by the Agent of counterparts of this Amendment (whether by facsimile or otherwise) executed by each of the Transferor, the Servicer, the Trustee, and Holders of Investor Certificates evidencing Undivided Interests aggregating not less than 66-2/3% of the Invested Amount of Series 1999-1.

	Consent of Holders of Class C Certificates.  The Transferor, in its capacity as holder of all of the outstanding Class C Certificates (as defined in the Supplement), by its execution below hereby consents to the terms of this Amendment and the changes to the Agreement or the Supplement contemplated hereby.

	Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to an original and all of which when taken together shall constitute but one and the same instrument.

	Governing Law.  This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to any otherwise applicable principles of conflicts of law.

	Section Headings.  The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Agreement or any provision hereof or thereof.

[The remainder of this page is intentionally left blank.]

Delivered as of the day and the year first above written.

	 	
PRIME II RECEIVABLES CORPORATION, as Transferor

By: /s/ Susan P. Storer

Title:  President

	 	
FDS BANK, as Servicer

By: /s/ Susan R. Robinson

Title:  Treasurer

	 	
JPMORGAN CHASE BANK, as Trustee

By: /s/  Craig M. Kantor

Title:  Vice President

	 	
MARKET STREET FUNDING CORPORATION,  

           as Class A Purchaser and as Class B Purchaser

By: /s/

Title: Vice President

PNC BANK, NATIONAL ASSOCIATION, as Agent

By: /s/ John Smathers

Title:  Vice President<PAGE>

                                                                   Exhibit 10.16

Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

              SUPPLY AGREEMENT FOR THE FABRICATION AND PURCHASE OF
                             SEMICONDUCTOR PRODUCTS

                                 BY AND BETWEEN

                          MARVELL SEMICONDUCTOR, INC.,

                              MARVELL ASIA PTE LTD
                                       and

                       WESTERN DIGITAL TECHNOLOGIES, INC.

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

              SUPPLY AGREEMENT FOR THE FABRICATION AND PURCHASE OF
                             SEMICONDUCTOR PRODUCTS

<TABLE>
<CAPTION>
Section                                                   Page
-------                                                  ------
<S>    <C>                                              <C>
1.0     Definitions                                      Page 3
2.0     Term of Agreement                                Page 4
3.0     [*]                                              Page 4
4.0     Forecast of Product Purchases                    Page 5
5.0     Purchase Orders                                  Page 5
6.0     Supplier's [*] Obligation and
               Buyer's [*] Obligations                   Page 6
7.0     Rescheduling Shipment Dates                      Page 7
8.0     Cancellation of Purchase Orders                  Page 8
9.0     Pull Signals                                     Page 8
10.0    [*] Program                                      Page 9
11.0    Quarterly Business Review                        Page 9
12.0    Invoicing, Payment Terms, Taxes                  Page 9
13.0    Termination                                      Page 10
14.0    Engineering Changes                              Page 11
15.0    Quality Standards                                Page 11
16.0    Product Warranty                                 Page 11
17.0    Supplier's Indemnity                             Page 12
18.0    Confidential Information                         Page 13
19.0    Supplier Engineering Support                     Page 13
20.0    Notice                                           Page 13
21.0    General Provisions                               Page 14

</TABLE>

Exhibit A
Exhibit B
Exhibit C

                                       2
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

              SUPPLY AGREEMENT FOR THE FABRICATION AND PURCHASE OF
                             SEMICONDUCTOR PRODUCTS

        THIS SUPPLY AGREEMENT FOR THE FABRICATION AND PURCHASE OF SEMICONDUCTOR
PRODUCTS (this "Agreement"), dated June 13, 2002, is made and entered into by
and among WESTERN DIGITAL TECHNOLOGIES, INC. ("Buyer"), MARVELL SEMICONDUCTOR,
INC., ("MSI"), MARVELL ASIA PTE LTD ("MAPL")(MSI AND MAPL are collectively the
"Supplier"). Buyer and Supplier are each a "party" and, collectively, are the
"parties" to this Agreement.

        Buyer agrees to purchase from Supplier, and Supplier agrees to supply to
Buyer, Buyer's read channel supply requirements in accordance with the terms and
conditions stated in this Agreement and in any written exhibits agreed to by the
parties, attached to this Agreement and incorporated herein.

1.0     DEFINITIONS

1.1     Commencement Date: June 13, 2002.

1.2     Engineering Change: A mechanical or electrical change to a Product which
        may effect the form, fit, function or maintainability of the Product

1.3     Plant of Manufacture: Buyer's manufacturing facility or assigned JIT
        hubs.

1.4     Product(s): For the purposes of this Agreement, Product or Products, as
        the case shall be, shall mean Supplier's [*] series read channel
        integrated circuit devices. The parties agree that from time to time,
        the parties may amend the definition of Products hereunder, but only if
        both parties agree to do so in writing. The parties agree that, until
        amended, the prices for each Product shall be as set forth in Exhibit A.

1.5     Purchase Order: An order submitted by Buyer for the purchase of Products
        under this Agreement.

1.6     Purchase Order Lead Time: The required minimum amount of time between
        Supplier's receipt of a Purchase Order issued by Buyer and the requested
        Shipment Date necessary to complete Seller's entire manufacturing cycle
        time, including Front End Manufacturing Cycle Time and Back End
        Manufacturing Cycle Time. Purchase Order Lead Time shall be jointly
        determined by Buyer and Supplier [*].

1.7     Front End Manufacturing Cycle Time: Lead-time from wafer start through
        probe and shipping.

1.8     Back End Manufacturing Cycle Time: Lead-time from probe, die bank,
        assembly, test and shipping.

1.9     Shipment Date: Date for shipment of Products specified by Buyer in a
        Purchase Order or Pull Signal accepted by Supplier.

1.10    Related Company: A corporation, company or other entity which controls
        or is controlled by a party hereunder or any another Related Company of
        such party,

                                       3
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

        where control means ownership or control, direct or indirect, of more
        than fifty (50) percent of: (i) the outstanding voting shares or
        securities (representing the right to vote for the election of directors
        or managing authority), or (ii) the ownership interests representing the
        right to make decisions for such a corporation, company or other entity
        (as the case may be in a partnership, joint venture or unincorporated
        association having no outstanding shares or securities). However, any
        such corporation, company or other entity shall be deemed to be a
        Related Company of such party only so long as such ownership or control
        exists.

1.11    Unit(s): A single unit of the Product.

1.12    Phase out: Supplier's determination to exit the ASIC business as defined
        in this Agreement.

1.13    LCBI: Lot Control Burn In.

1.14    Epidemic Failure: In the case of: (i) customer line integration, any
        component-related failure resulting in a DPPM level of [*]; (ii) a field
        failure, any component-related failure resulting in a DPPM level or [*]
        measured over a [*] day period; or, (iii) at an end user site, a higher
        than expected failure rate as measured against the installed base and
        the root cause of such failure is attributable to a single component,
        the root cause of which is directly attributable to Supplier's
        integrated circuit design or an integrated circuit fabrication issue.

1.15    Field Recall: Buyer-initiated recall of shipped units of Buyer's
        products directly resulting from a failure of Supplier's Products
        directly attributable to Supplier's integrated circuit design or an
        integrated circuit fabrication issue. Field Recall shall not include
        normal warranty returns over time.

1.16    QBR: Quarterly Business Review conducted by the parties hereto during
        the term of this Agreement.

1.17    SQR: Supplier Quality Rating.

1.18    SSR: Supplier Service Rating.

1.19    SDR: Supplier Development Rating.

2.0     TERM OF AGREEMENT

The term of this Agreement shall commence on the Commencement Date and shall
expire five (5) years thereafter, unless otherwise terminated by either of the
parties in accordance with the provisions of this Agreement.

3.0     [*]

No later than June 24, 2002, Supplier shall [*]

                                       4
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.1b where the omitted information
appeared in the original.

[*]

4.0     FORECAST OF PRODUCT PURCHASES

4.1     Buyer shall issue to Supplier a forecast covering a period of [*] to [*]
        months (current fiscal quarter and [*] subsequent quarters) on the first
        week of every Buyer fiscal quarter or more regularly as Buyer deems
        necessary. Seller shall acknowledge receipt and acceptance of Buyer's
        forecast by return facsimile or e-mail within forty-eight (48) hours of
        Buyer's issuing such forecast. If Supplier fails to respond to Buyer's
        forecast within forty-eight (48) hours, such forecast shall be deemed
        accepted by Buyer. Both Supplier and Buyer agree that forecasts
        constitute good faith estimates of Buyer's anticipated requirements of
        Products for the periods indicated based on current market conditions,
        and Supplier's acceptance shall constitute Supplier's agreement that it
        will exercise good faith efforts to quote and supply the requirements
        set forth in such forecast if finally ordered by Buyer in accordance
        with applicable provisions of this Agreement.

4.2     If Supplier cannot meet Buyer's requirements as set forth in a forecast
        or Buyer greatly reduces its forecast, Supplier and Buyer agree to
        engage in good faith discussions to resolve the issue on terms
        satisfactory to both parties.

5.0     PURCHASE ORDERS

5.1     Buyer shall submit a Purchase Order to Supplier on a quarterly basis.
        The Purchase Order shall specify [*] for the Products [*] covered by the
        Purchase Order and shall be based on [*] as of the date of the Purchase
        Order.

5.2     Subject to the rescheduling and cancellation provisions herein, Buyer
        agrees that it shall [*]. Supplier will ship Products during the quarter
        by the Shipment Dates specified in the Purchase Order or, if Buyer
        chooses, by Shipment Dates specified in Pull Signals issued by Buyer
        throughout the quarter. Any [*], unless Buyer informs Supplier otherwise
        in advance and in writing.

5.3     Supplier will acknowledge receipt and acceptance of Buyer's Purchase
        Orders within 48 hours of receipt. If Supplier fails to respond to
        Buyer's Purchase Order within forty-eight (48) hours, such Purchase
        Order will be deemed accepted by Supplier. Purchase Orders must be
        placed in advance, with at least the Purchase Order Lead Time agreed to
        by the Parties, to allow Supplier to meet Buyer's requested Shipment
        Date. Buyer may request, without incurring any liability

                                       5
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.1b where the omitted information
appeared in the original.

        hereunder, improved Shipment Dates, and Supplier will [*].

5.4     Purchase Order Lead Times shall be [*]. Purchase Order Lead Times may
        not increase above [*] weeks during the term of this Agreement. Supplier
        shall undertake [*] to reduce Purchase Order Lead Times during the Term
        of this Agreement to [*] lead times of [*] weeks.

5.5     Purchase Orders and acknowledgements thereof exchanged by the parties
        will be used to convey Product order information only. If the terms of a
        Purchase Order conflict with the terms of this Agreement, the terms of
        this Agreement shall govern.

5.6     Supplier shall supply [*] the Products at the prices set forth in
        Exhibit A attached hereto [*].

5.7     Buyer's Purchase Orders issued hereunder shall specify and include the
        following information:

        a) Buyer's [*] for the Product being purchased;

        b) Quantity of Product requested;

        c) Product price agreed to by the parties per the applicable exhibit to
           this Agreement;

        d) Location to which the Buyer specifies the Products shall be shipped
           and the Shipment Date specified by the Buyer; and

        e) Reference to this Agreement.

6.0     SUPPLIER'S [*] OBLIGATION AND BUYER'S [*] OBLIGATIONS.

6.1     [*], Supplier shall [*] in accordance with EXHIBIT B from [*] through
        [*] and shall [*] supply Buyer with up to [*] Product units per month
        beginning in [*] and

                                       6
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.1b where the omitted information
appeared in the original.

        continuing through the life of the Buyer hard drive products
        incorporating Supplier's Products.

6.2     In consideration of (i) Supplier [*] on Buyer's behalf as set forth
        above, (ii) Supplier [*] and (iii) [*] contemplated in Section [*] below
        and Supplier's performance thereon, Buyer agrees that Buyer shall
        [*] during the Term of this Agreement.

6.3     Buyer and Supplier agree to work in good-faith to mutually define the
        development and design milestones, pricing, delivery and other
        reasonable requirements of all Products supplied hereunder.
        Notwithstanding the contrary provisions of this section, Buyer's
        obligation to [*].

6.4     Buyer agrees to work in good faith to complete [*]. Buyer agrees to [*]
        to complete the [*], and agrees to work [*].

7.0     RESCHEDULING SHIPMENT DATES

7.1     Buyer may reschedule, without incurring any charge or liability to
        Seller, the Shipment Date for up to 100% of the amount of the Products
        specified in a Purchase Order accepted by Supplier, provided that Buyer
        has provided to Supplier written notice of such rescheduled Shipment
        Date within the time periods specified in the table below. Buyer may
        reschedule each shipment of Products a single time for up to ninety (90)
        days without incurring any charge or liability to Supplier.

<TABLE>
<CAPTION>
                                                          Maximum amount of
                                                          days a reschedule
           Number of Calendar      Amount of Purchase     quantity can be
           Days' Notice Prior to   Order Subject to       moved from original
           Shipment Date           Reschedule             ship date
           ---------------------------------------------------------------------
           <S>                     <C>                    <C>
           0 to [*] days               0
           ---------------------------------------------------------------------
           [*] to [*] days             [*]                      [*] days
           ---------------------------------------------------------------------
</TABLE>

                                       7
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

<TABLE>
           ---------------------------------------------------------------------
           <S>                      <C>                   <C>
           [*] to [*] days             [*]                      [*] days
           ---------------------------------------------------------------------
           [*] days or more            [*]                      [*] days
           ---------------------------------------------------------------------
</TABLE>

8.0     CANCELLATION OF PURCHASE ORDERS

8.1     Buyer may cancel a Purchase Order upon written notice to Supplier only
        in accordance with the terms of this Agreement. Once Supplier has
        received Buyer's notice of cancellation, Supplier will immediately cease
        all work assembling Products in support of such canceled Purchase Order
        and will provide a status report of the works in progress ("WIP") to
        assess Buyer's liability for such WIP. Buyer shall have the right to
        inspect the WIP to verify the accuracy of Supplier's status report.
        Buyer agrees that upon notifying Supplier that a Purchase Order is
        cancelled, Buyer shall assume liability for such WIP according to the
        following schedule based on the Purchase Order Price (POP) for each
        outstanding Purchase Order

               Finished Goods         [*] of (POP)
               Final Test             [*] of POP
               Assembly               [*] of POP
               Die Bank               [*] of POP
               Wafer Fab              [*] of POP

8.2     No cancellation charges will be due if:

        a)  [*] a Purchase Order because of a [*] of more than [*] from a
            designated Shipment Date due [*];

        b)  Buyer cancels a Purchase Order because Supplier executes an
            unauthorized Engineering Change or an unauthorized change to the
            Product qualification plan of record agreed to by the parties (i.e.
            change of fabrication site, assembly site, and or test site); or

        c)  [*] a Purchase Order because [*].

9.0     PULL SIGNALS

9.1     Each week during the term hereof, Buyer shall issue to Seller a Pull
        Signal which shall cover a [*] week period commencing on the day
        Supplier receives such Pull Signal and continuing through the subsequent
        calendar week. Such Pull Signal shall specify the amount of Products and
        the Shipment Dates by which Products are to be delivered during such [*]
        week period.

9.2     Supplier shall acknowledge, by return facsimile or e-mail, its receipt
        and acceptance of each Pull Signal within [*] of Buyer's issuing such
        Pull Signal. Any Pull Signal not so accepted will be deemed rejected.

                                       8
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

9.3     If the Pull Signal is or is deemed rejected by Supplier, Supplier shall
        notify Buyer within [*] of receiving the Pull Signal and provide Buyer
        with an alternative to the Product amounts and Shipment Dates contained
        in the Pull Signal. If Buyer is not satisfied with Supplier's response,
        both Buyer and Supplier agree to immediately hold discussions to resolve
        their disagreement.

10.     [*] PROGRAM

Supplier will maintain a [*] approximately [*] remaining in such [*]. The [*]
will consist of [*] designated by Buyer [*] designated by Supplier but
acceptable to Buyer. Any change [*] set forth above must be mutually agreed upon
between Buyer and Supplier. Supplier will have [*] Product ramp and, thereafter,
shall [*] for the term of this Agreement. Buyer and Supplier will monitor
Buyer's demand for Products quarter to quarter with the intent of [*] the [*]
that there is no further requirement for the Product.

11.     QUARTERLY BUSINESS REVIEW

Buyer and Supplier shall meet on a quarterly basis for a QBR. The QBR shall
focus on the SDR, SQR and SSR that Supplier has earned for the preceding
quarter. The parties shall review the Supplier's performance during the
preceding quarter, identify areas for improvement and recommend actions to be
taken by either Supplier or Buyer or both Supplier and Buyer to satisfy the
parties' business goals.

12.0    INVOICING, PAYMENT TERMS, TAXES

12.1    Supplier shall invoice Buyer for all Products shipped to Buyer's JIT Hub
        located in Malaysia or to such other location, as Buyer shall designate
        from time to time hereunder. Supplier shall ship all Products [*] from
        Supplier's facility. Supplier will invoice Buyer once the Product is
        pulled from Buyer's JIT Hub, and Buyer shall complete full and final
        payment of such invoice within [*] of the date of Supplier's invoice.
        Buyer will maintain good-faith efforts [*]. In the event that Buyer does
        not pay Supplier's invoice within [*] days of the date of the invoice,
        Buyer shall pay subsequent Supplier invoices no later than [*] days
        after the date of Supplier's invoice. If Buyer thereafter pays all
        invoices within [*] days of the date of Supplier's invoice for three
        successive

                                       9
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

        months, Buyer shall again be permitted to pay subsequent invoices from
        Supplier within [*] days of the date of such invoices [*].

12.2    Buyer agrees to pay any taxes resulting from the transactions
        contemplated under this Agreement unless Buyer can provide appropriate
        exemption certificates.

12.3    Buyer represents that it holds a valid Reseller's exemption certificate
        for Products purchased for resale in each applicable taxing
        jurisdiction. Based on this representation, Supplier shall, where the
        law permits, treat Buyer as exempt from applicable state and/or local
        sales tax for Products purchased hereunder.

12.4    Buyer shall promptly notify Supplier in writing of any modification or
        revocation of Buyer's exempt status. Buyer shall reimburse Supplier for
        any and all assessments resulting from a refusal by a taxing
        jurisdiction to recognize any Buyer exemption certificates, or from
        Buyer's failure to have a valid certificate.

13.     TERMINATION

13.1    If either party is in default of any material provision of this
        Agreement and such default is not corrected within [*] days of receipt
        of written notice, this Agreement may be terminated by the party not in
        default. If the default is such that is cannot be reasonably cured
        within [*] days, then the defaulting party must commence cure within
        [*] days and proceed to cure [*]. These provisions shall not affect
        Supplier's obligations to Buyer set forth below in this Section 13, in
        the event of Supplier's breach of a material provision of this
        Agreement.

13.2    If Buyer terminates this Agreement due to Supplier's default, all
        outstanding Purchase Orders shall be [*].

13.3    If Supplier terminates this Agreement due to Buyer's default, at
        Supplier's discretion, all outstanding Purchase Orders shall be
        automatically cancelled and the cancellation charges set forth in this
        Agreement shall apply [*].

13.4    If Supplier (i) decides to [*] or (ii) Supplier is unable to [*], then
        Supplier agrees to do the following:

                                       10
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

        [*].

14.     ENGINEERING CHANGES

Supplier shall not make any Engineering Changes to Products under this Agreement
once final production level Product is qualified unless such Engineering Change
is specified in writing and expressly accepted by Buyer.

15.     QUALITY STANDARDS

Supplier agrees to make [*] to achieve all quality and reliability requirements
to be set forth in a Statement of Quality (the "SOQ"), in substantially the same
form as Exhibit C hereto, to be mutually agreed upon by the parties. Supplier
agrees that the requirements set forth in the SOQ shall apply to all Products
that Supplier supplies to Buyer hereunder.

16.     PRODUCT WARRANTY

16.1    Notwithstanding any other provision of this Agreement, Supplier warrants
        that for a period of [*] each unit of Product delivered will comply with
        each [*] part of the [*] including all changes to and iterations of [*]
        and that such Product will be [*] provided, that, such use is in
        conformance with the [*]. All [*] are provided [*].

16.2    If Buyer determines during the warranty period that a Product does not
        conform to the [*], Supplier's obligation shall be limited to (i)
        replacing such Product with a new Product that conforms to Seller's
        warranty or (ii) issuing Buyer a credit equal to the amount that Buyer
        paid for the Product, at Supplier's option.

16.3    In addition to Supplier's obligations under Section 16.2, in the event
        of an [*] of a Product during Supplier's warranty term or

                                       11
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

        Buyer's warranty term, whichever is shorter, Buyer and Supplier shall
        meet and attempt to develop a mutually satisfactory resolution regarding
        liability resulting from [*]. In the event that the parties are unable
        to reach a mutually satisfactory resolution, each party reserves all
        claims and defenses available to it, at law or in equity, regarding such
        [*].

16.4    Subject to the confidentiality provisions of this Agreement, Buyer
        agrees to provide Supplier with Buyer's [*] that Buyer generates [*] of
        manufacturing its hard drive products that incorporate the Products.

17.0    SUPPLIER'S INDEMNITY

17.1    Supplier agrees to indemnify, defend and hold harmless Buyer and its
        Related Companies and their respective directors, officers, employees,
        representatives, agents, successors and assigns, from and against any
        claims, losses, damages, liabilities, causes of action, suits, costs and
        expenses, including all reasonable attorneys' fees and disbursements of
        counsel and expenses of investigation, finally awarded against Buyer or
        its Related Companies arising out of or related to (a) any claims,
        actions, suits or proceedings alleging that any Products that Buyer
        purchases or otherwise receives from Supplier infringe any patent, trade
        secret, copyright or other intellectual property rights of any third
        party and (b) any claims, actions, suits or proceedings whether in tort,
        contract or otherwise alleging personal injury or death, or any damage
        to any property, caused or allegedly caused by any negligent act or
        omission by Supplier or any defect in any Products that Buyer purchases
        or otherwise receives from Supplier. Notwithstanding the foregoing,
        Supplier is not obligated to defend or settle any such suit and is not
        obligated to pay any such damages or costs, if such claim arises out of
        (i) a combination of the Supplier's technology with technology not
        supplied by the Supplier or (ii) a modification, alteration or amendment
        of the Supplier's Technology. In the event that any Products are alleged
        to be infringing, Supplier agrees, in its sole discretion and at its own
        expense, to (i) procure for Buyer the right to continue to use such
        Products, (ii) replace such Products with noninfringing products that
        comply with Section 16.1 above, or (iii) modify such Products so that
        they become noninfringing and continue to comply with Section 16.1
        above.

17.2    Buyer agrees to indemnify, defend and hold harmless Supplier and its
        Related Companies and their respective directors, officers, employees,
        representatives, agents, successors and assigns from and against any
        claims, losses, damages, liabilities, causes of action, suits, costs and
        expenses, including all reasonable attorneys' fees and disbursements of
        counsel and expenses of investigation, finally awarded against Supplier
        or its Related Companies arising out of or related to any claims,
        actions, suits or proceedings alleging that any specification, design or
        implementation detail that Supplier receives from Buyer or that Supplier
        is

                                       12
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

        required to incorporate into any Products as a result of Buyer's
        requirements or technical specifications infringes any patent, trade
        secret, copyright or other intellectual property right of a third party.

18.     CONFIDENTIAL INFORMATION

18.1    Except as set forth below, all information exchanged under this
        Agreement will be deemed to be non-confidential. If either party
        determines that it becomes necessary to exchange confidential
        information in order to perform under this Agreement, the exchange of
        such confidential information will be made under a separate written
        nondisclosure agreement.

18.2    Each party (i) will keep the existence of this Agreement confidential
        until the first Unit is shipped by Supplier to Buyer, (ii) will keep the
        contents of this Agreement confidential during the term of the Agreement
        and for a period of [*] thereafter, and (iii) will not, without first
        obtaining the written consent of the other party, disclose any portion
        of this Agreement or any information contained herein to any third party
        except as may be required to enforce this Agreement or as may be
        required by applicable statute, regulation or court order. In the event
        such disclosure is required, the party making such disclosure will
        provide the other party sufficient notice for the other party to seek
        appropriate protection, in court if necessary. In the event of
        disclosure thereafter, the party making the disclosure will keep such
        disclosure to a minimum and protect the information so disclosed by a
        protective order or the like unless otherwise agreed by the parties.

        The parties agree that each party may be required to file this Agreement
        as an exhibit to filings each party makes with the U.S. Securities and
        Exchange Commission (the "SEC"). In connection with any such filing,
        each party agrees to seek confidential treatment of the terms of the
        Agreement from the SEC, and each party further agrees to notify the
        other party in advance of such filing and to work cooperatively with the
        other party regarding the form and content of such confidential
        treatment request.

19.     SUPPLIER ENGINEERING SUPPORT

Supplier agrees to support [*] for the Products and any other [*] covered by
this Agreement. Support to include [*] all of which [*] shall be subject to the
provisions of the NDA.

20.     NOTICES

Any notices or other communications given by either party under this Agreement
shall be in writing and shall be (a) delivered personally, (b) transmitted by
facsimile machine with

                                       13
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

confirmation in writing mailed first class, (c) sent by a nationally recognized
overnight courier or overnight mail service that guarantees overnight delivery
or (d) sent by registered certified United States mail with return receipt
requested, postage prepaid, addressed as follows:

        If to Buyer:         Western Digital Technologies, Inc.
                             20511 Lake Forest Drive
                             Lake Forest, CA 92630
                             Attn: General Counsel
                             Tel: (949) 672-7000
                             Fax: [*]

        If to Supplier:      Marvell Asia Pte Ltd
                             151 Lorong Chuan #02-05
                             New Tech Park
                             Singapore 556741
                             Attn: General Manager
                             Tel: (65) 756-1600
                             Fax: [*]

        With a copy to:      Marvell Semiconductor, Inc.
                             700 First Avenue
                             Sunnyvale, CA 94089
                             Attn: Vice President of Business Affairs
                             and General Counsel
                             Tel: (408) 222-2500
                             Fax: [*]

        Any such notice shall be effective (a) upon receipt if personally
        delivered, (b) on the date of the facsimile transmission (which date is
        indicated by the facsimile machine of the party) if sent by facsimile
        and confirmed by mail, (c) on the first business day if sent by a
        nationally recognized overnight courier or overnight mail that
        guarantees overnight delivery and (d) on the third business day
        following the date of mailing if sent by registered or certified mail.
        Each party may change the address to which notices are to be delivered
        by giving notice as provided in this section.

21.     GENERAL PROVISIONS

21.1    Subject to the confidentiality and intellectual property provisions
        contained herein, neither this Agreement nor any activities hereunder
        will impair any right of Supplier or Buyer to design, develop,
        manufacture, market, service, or otherwise deal in, directly or
        indirectly, products or services including those which are competitive
        with those offered by Supplier or Buyer.

                                       14
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

21.2    This Agreement may be modified only by a written amendment signed by
        authorized representatives of the Buyer and the Supplier.

21.3    All obligations and duties which by their nature survive the expiration
        or termination of this Agreement shall remain in effect beyond any such
        expiration or termination.

21.4    Except for the obligation to pay any monetary sums due, neither party
        shall be responsible for failure to fulfill its obligations under this
        Agreement due to fire, flood, war or other such cause beyond its control
        and without its fault or negligence provided it promptly notifies the
        other party.

21.5    Neither party shall assign this Agreement or any rights hereunder
        without the prior written consent of the other party, except that
        Supplier's rights to payments under the Agreement are freely assignable.
        In the event that Buyer merges with or into, or is acquired by, another
        entity such that Buyer is not the surviving entity of such merger or
        acquisition (the "Successor Entity"), the rights and obligations of
        Buyer under this Agreement shall automatically become the rights and
        obligations of the Successor Entity. A sale by Buyer of all or
        substantially all of its assets to a third party shall be deemed to be a
        merger with or into, or an acquisition by, such party for purposes of
        this provision. In the event any Successor Entity is unable or unwilling
        to assume the rights and obligations of this Agreement, then such
        Successor Entity shall immediately [*].

21.6    The waiver by either party of an instance of the other party's
        noncompliance with any obligation or responsibility herein shall not be
        deemed a waiver of subsequent instances or of either party's remedies
        for such noncompliance.

21.7    Each party will comply with all applicable federal, state and local
        laws, regulations and ordinances including, but not limited to, the
        regulations of the U.S. Government relating to the export or re-export
        of machines, commodities, software and technical date insofar as they
        relate to the activities under this agreement. Buyer agrees that
        machines, commodities, software and technical data provided under this
        Agreement may be subject to restrictions under the export control laws
        and regulations of the United States of America, including, but not
        limited to, the U.S. Export Administration act and the U.S. Export
        Administration Regulations. Buyer hereby agrees that neither machines,
        commodities, software or technical data provided by Supplier under this
        Agreement, nor the direct product thereof, is intended to be shipped,
        directly or indirectly, to prohibited countries or nationals thereof.
        Buyer agrees it is responsible for obtaining required government
        documents and approvals to export any machine, commodity, software or
        technical data.

                                       15
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

21.8    This Agreement may be executed in counterparts, each of which shall be
        deemed an original but all of which taken together shall constitute one
        and the same instrument. Facsimile signatures shall be deemed to be
        originals.

                                       16
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

SUPPLIER                                    BUYER

Marvell Semiconductor, Inc.                 Western Digital Technologies, Inc.
700 First Avenue                            20511 Lake Forest Drive
Sunnyvale, CA 94089                         Lake Forest, CA 92630

By: /s/ Sehat Sutardja                      By: /s/ WILLIAM JOHNS
   -------------------------------             ---------------------------------
        Dr. SEHAT SUTARDJA,
        PRESIDENT and CEO
                                            Title: VP Worldwide Matls.
                                                  ------------------------------

Marvell Asia Pte Ltd
151 Lorong Chuan #02-05
Singapore 556741.

By: /s/ Dr. H. Kuong
   -------------------------------
           Dr. H. KUONG,
          GENERAL MANAGER

                                       17
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

                                    EXHIBIT A

                                 PRODUCT PRICES

[*]

[*]

[*]

[*]

[*]

[*]

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

                                    EXHIBIT B

<TABLE>
<CAPTION>
   TIME PERIOD            [*]                       COMMENT
   -----------            ---          -----------------------------------
<S>                      <C>          <C>
     July 02              [*]            Deliveries starting July 15th
    August 02             [*]               Actual quantity needed
   September 02           [*]               Actual quantity needed
     Q3 TOTAL             [*]
    October 02            [*]                Finalize by July 1st
   November 02            [*]               Finalize by August 1st
   December 02            [*]              Finalize by September 1st
     Q4 TOTAL             [*]
2003 QUARTERLY [*]        [*]         [*], Finalize January by October 1st

</TABLE>

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.
[WESTERN DIGITAL LOGO] [MARVELL LOGO]
                                                                   [*]
                                                            Statement of Quality

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

                                      [*]

                                      [*]

                              STATEMENT OF QUALITY

                                                                     Page 1 of 5

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

[WESTERN DIGITAL LOGO] [MARVELL LOGO]
                                                                   [*]
                                                            Statement of Quality
--------------------------------------------------------------------------------

                     [*] STATEMENT OF QUALITY (REVISION 1.0)

This Statement of Quality (this "SoQ") is agreed to as of June 24, 2002 by and
between Western Digital TECHNOLOGIES ("WD") and Marvell asia pte ltd ("MAPL").

1.   PURPOSE

     The purpose of this document is to specify the quality and reliability
     requirements for the [*] and to document the processes and procedures MAPL
     shall employ to attain those requirements.

2.   OVERVIEW OF [*] PROGRAM

     [*] is the first generation of a family [*]. The intent of [*] and
     follow-on versions is to take advantage of cost reduction opportunities.
     The [*] is targeted for use in the WD [*] line of hard disk drive products.

2.1  Description of [*]

     [*] is an [*] product for WD that integrates MAPL's proven technology
     cores. [*] wafer fabrication uses the [*] process technology [*] and is
     packaged in [*] body outline [*] package. Approximate die size for [*] is
     [*].

2.2  Description of [*] Manufacturing Flow

     Wafer fab is [*]. Wafer probe is performed at [*]. Package assembly
     subcontractor is [*] Final test [*]. Parts are finished, packed and shipped
     from [*].

                                                                     Page 2 of 5

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

[WESTERN DIGITAL LOGO] [MARVELL LOGO]
                                                                     [*]
                                                            Statement of Quality
--------------------------------------------------------------------------------

3.   QUALITY REQUIREMENTS

     It is central to WD's mission to provide best-in-class quality and
     reliability product to our customers. Consequently, components used in WD
     HDD products must meet stringent levels of quality and reliability in terms
     of expected fitness-for-use and failure during PCBA assembly and test, HDD
     assembly and test, end customer integration, and field use. These
     requirements are subject to review and change as the business situation
     warrants, but no less than annually. MAPL understands and agrees that
     failure to meet these quality levels will require immediate and resolute
     actions to rectify in the most expeditious manner possible [*]. WD will
     cooperate fully in these efforts. It is not WD's intention to reject
     component shipments based upon occasional and marginal failure to meet
     these quality levels. However, sustained quality excursions and/or
     inability to correct quality problems to meet these requirements will
     affect WD's ability to integrate said components and may be cause for
     business interruptions, such as stop-ship orders (MSSO).

     Current requirements as stated below should be viewed as minimum acceptable
     criteria for[*]:

3.1  [*]

3.2  [*]

3.3  [*]

3.4  [*]

3.5  [*]

3.6  [*]

4.   COMPONENT QUALIFICATION

     WD has a comprehensive process in place to qualify components for
     integration into our products. This process involves Engineering teams in
     the US and in our factories and our suppliers, and concludes when the
     component is listed unfettered on our Approved Vendor List (AVL). It must
     be demonstrated that the component in question can achieve the quality
     requirements listed above through direct measurement as well as artifices
     such as accelerated life tests. The [*] attached hereto as Exhibit 1 lists
     related actions required of the supplier in detail. It is incumbent upon
     both parties to schedule this work such that the successful conclusion of
     these tests occurs well before WD builds and ships products containing said
     components.

                                                                     Page 3 of 5

<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

[WESTERN DIGITAL LOGO] [MARVELL LOGO]
                                                                   [*]
                                                            Statement of Quality
--------------------------------------------------------------------------------

4.1  [*] qualification summary

<TABLE>
<CAPTION>
     Activity                                     [*]         Who     ECD
     --------                                     ---        -----    ---
<S>                                              <C>         <C>      <C>
     Wafer-level reliability 1st  wafer lot       [*]        Marv
       2nd wafer lot                                         Marv
       3rd wafer lot                                         Marv
     Device construction analysis                 [*]         WD
                                                             Marv

     High temperature operating life              [*]        Marv
        [*]                                                  Marv
        [*]                                                  Marv
        [*]                                                  Marv
     High temp storage [*]                        [*]        Marv
     Corner lot characterization                  [*]        Marv
     Rogue lot screening program                  [*]        Marv
     CPCP reporting program                       [*]        Marv
     Latch-up sensitivity                         [*]        Marv
     ESD sensitivity                              [*]        Marv
     JEDEC precondition                           [*]        Marv
     Pkg thermal cycle [*]                        [*]        Marv
     Pkg pressure cooker ([*]                     [*]        Marv
     Pkg construction analysis                    [*]        Marv
</TABLE>

5.   QUALITY PROCESSES

     Western Digital firmly believes that high quality products germinate from
     high quality processes. In order to assure visibility into the quality of
     our suppliers' processes, we request certain manufacturing data be made
     available on a routine basis. This data is often expressed as process
     capability measurements, wherein [*] is viewed as a minimum to assure
     consistent product attributes. The following is a list of typical critical
     manufacturing parameters for [*]:

<TABLE>
<CAPTION>
     Parameter                 Frequency
     ---------                 ---------
<S>                            <C>
     [*]                          [*]
     [*]                          [*]
     [*]                          [*]
     [*]                          [*]
     [*]                          [*]
     [*]                          [*]
     [*]                          [*]

</TABLE>

                                                                     Page 4 of 5
<PAGE>
Certain confidential information has been omitted from this Exhibit 10.16
pursuant to a confidential treatment request filed separately with the
Securities and Exchange Commission. The omitted information is indicated by the
symbol "[*]" at each place in this Exhibit 10.16 where the omitted information
appeared in the original.

[WESTERN DIGITAL LOGO] [MARVELL LOGO]
                                                                   [*]
                                                            Statement of Quality
--------------------------------------------------------------------------------

5.   Quality Processes (con't)
<TABLE>
<S>                           <C>
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
     [*]                       [*]
</TABLE>

6.   SUPPLIER QUALITY MEASUREMENT

     Suppliers of significant components are measured by WD in a formal ongoing
     process, culminating in the Quarterly Business Review (QBR) meeting. [*]%
     of the QBR rating is the Supplier Quality Rating (SQR), a method of rating
     and ranking suppliers according to achieving the required quality and
     reliability metrics. The most heavily-weighted elements of the SQR are [*].

7.   SIGNATURES FOR STATEMENT OF QUALITY

WESTERN DIGITAL TECHNOLOGIES                MARVELL  ASIA PTE LTD

/s/ DOUGLAS BLACKE                          /s/ DR. H. KUONG
------------------------------------        ------------------------------
Douglas Blacke                              Dr. H. Kuong
Sr. Director, Supplier Engineering          General Manager

/s/ MARTY FINKBEINER
----------------------------------          ------------------------------
Marty Finkbeiner
Vice President,  HDS Quality

                                                                     Page 5 of 5

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