Document:

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                                                                    EXHIBIT 10.3

                              AMENDED AND RESTATED

                     COMMON R&D AND PARTICIPATION AGREEMENT

This AMENDED AND RESTATED COMMON R&D AND PARTICIPATION AGREEMENT, dated as of
September 10, 2004, is made and entered into by and between Toshiba Corporation,
a Japanese corporation with a principal place of business at 1-1, Shibaura
1-chome, Minato-ku, Tokyo 105-8001, Japan (hereinafter "Toshiba"), and SanDisk
Corporation, a Delaware corporation, with a principal place of business at 140
Caspian Court, Sunnyvale, CA 94089, U. S. A. (hereinafter "SanDisk" and
collectively with Toshiba, the "Parties").

WHEREAS, Toshiba and SanDisk Corporation entered into a Common R&D and
Participation Agreement, dated as of May 9, 2000, which was amended as of April
10, 2002 and which has been modified by correspondence between SanDisk
Corporation and Toshiba (collectively, the "Prior Agreement"); and

WHEREAS, Toshiba and SanDisk desire to amend the Prior Agreement with the effect
of superceding the Prior Agreement from and after the date of this Agreement.

NOW, THEREFORE, the parties agree as follows:

ARTICLE 1. DEFINITIONS

            1.1   "Contract Technology" shall mean [***].

            1.2   "AMC" shall mean the Advanced Microelectronics Center,
Toshiba's development engineering facility located in Yokohama, Japan.

            1.3   "Assignees" shall mean SanDisk's engineers from the technology
areas of process/device/design, assigned to participate in the Development Work
(as defined in Section 2.1 to be performed at AMC or other Toshiba facilities to
be mutually agreed upon by the parties hereto.

            1.4   "Effective Date" shall mean September 10, 2004.

            1.5   "Solely Developed Patents" shall mean patents, utility models
(excluding design patents) and any applications therefor which arise out of the
inventions made solely by the employees of either Party during the performance
of the Development Work hereunder.

            1.6   "Jointly Developed Patents" shall mean patents, utility models
(excluding design patents) and any applications therefor which arise out of the
inventions jointly made by the employees of Toshiba and SanDisk during the
performance of Development Work hereunder.

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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            1.7   "Agreement" shall mean this Amended and Restated Common R&D
and Participation Agreement together with any Exhibits, Schedules, Appendices
and Attachments hereto including Appendix A to the Master Agreement, which is
incorporated herein by this reference.

            1.8   "Master Agreement" shall mean that certain Flash Partners
Master Agreement, dated as of the date hereof, by and among Toshiba, SanDisk and
SanDisk International.

            1.9   "Residuals" shall mean that technical information which may be
retained in the memories of Assignees who have had rightful access to Toshiba's
proprietary information and Contract Technology.

            1.10  "Common R&D Effective Date" shall mean May 9, 2000.

ARTICLE 2. DEVELOPMENT COLLABORATION

            2.1   SanDisk will send, and Toshiba will receive, such number of
Assignees as are mutually agreed upon, at AMC or other Toshiba facilities during
the term of this Agreement in order for SanDisk to participate in the
development work of the Contract Technology as set forth in Exhibit B (the
"Development Work"), which may be modified by Toshiba and SanDisk from time to
time, and in accordance with the direction of Toshiba; provided that such
modification to the Development Work shall not materially affect SanDisk's
permitted access to the Contract Technology. For avoidance of doubt, it is
agreed by the parties that SanDisk shall not have any right to have access to,
and its Assignees shall not have access to, any technical information or data
which are not relevant or necessary to perform the Development Work or any
technical information or data for which access by Assignees is prohibited by any
binding contract of Toshiba and any third party, and that no right or license is
granted to SanDisk with respect to said technical information or data. The
project managers of SanDisk and Toshiba shall periodically discuss, determine
and monitor the details of the Development Work; provided that in case of any
dispute between the respective project managers, the manager of Toshiba may
determine such details, taking into consideration the reasonable input made by
SanDisk. In order to perform the Development Work, Toshiba shall(at its sole
expense) provide the Assignees with sufficient office equipment, including
personal computers and telephones.

            2.2   SanDisk shall ensure that its Assignees comply with the
safety, security and all other applicable practices, regulations of Toshiba and
specific instructions or directions to be made by Toshiba while such Assignees
are in Toshiba's facilities. Except as provided in the Master Agreement, SanDisk
agrees to be responsible for all salaries, benefits, expense reimbursements and
other payments to its Assignees and workers insurance for Assignees and shall
indemnify and hold Toshiba harmless from any claims against Toshiba arising out
of any injury to any Assignee.

            2.3   Except as provided in the Master Agreement, SanDisk shall be
responsible for the living, traveling and all other out-of-pocket expenses for
its Assignees.

                                        2

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            2.4   The amendment and restatement in Section 5 is conditioned upon
(a) Flash Partners' 300 millimeter production beginning [***] and (b) Toshiba
considering in good faith SanDisk's requests (i) to provide SanDisk with the
opportunity to manage the Common R&D expenditure base (project selection, team
development, etc.) (ii) to have SanDisk actively participate in the entire
Development Work and (iii) to ensure to the maximum extent practicable the
cooperation between SanDisk and Toshiba's engineering, development and
technology teams (e.g. open communication, joint planning of experiments, timely
sharing of wafers (for first hand analysis by SanDisk) and Toshiba's results of
wafer testing), it being understood that the final determination regarding such
requests is to be made by Toshiba. SanDisk shall take appropriate action to
preserve the confidentiality of (and restrict the distribution within SanDisk
of) the information learned in the course of Development Work or any activities
contemplated hereunder.

            2.5   [***].

ARTICLE 3. OWNERSHIP

            3.1   All technical information provided by any Party in the course
of the development of the Contract Technology shall remain the exclusive
property of said Party; provided that, Toshiba shall have a non-exclusive,
worldwide and royalty-free license to use, reproduce and otherwise dispose of
such technical information for any purpose.

            3.2   All technical information, inventions and intellectual
property rights resulting therefrom (but specifically exclude patents) made or
generated by Toshiba and/or Assignees in the course of the Development Work
shall be the exclusive property of Toshiba; provided that, SanDisk shall have
the right and license set forth in Section 4.

            3.3   Any Solely Developed Patent of Toshiba shall be and remain the
exclusive property of Toshiba, subject to the licenses granted to SanDisk in
accordance with Section 4.1.

            3.4   Any Solely Developed Patent of SanDisk shall be and remain the
exclusive property of SanDisk, subject to the licenses granted to Toshiba in
accordance with Section 4.3.

            3.5   Any right, title and interest in, to and under Jointly
Developed Patents shall be jointly owned by Toshiba and SanDisk. Each Party
shall be free to use such Jointly Developed Patents for any purpose and shall
have the right to grant non-exclusive licenses to any third party without the
consent of the other Party and shall have no duty to account to the other Party
for any revenue therefrom. Both parties shall promptly agree on which of them
shall file and prosecute the first patent application and which countries'
corresponding applications shall be filed and by whom. All expenses incurred in
obtaining and maintaining such patents shall be equally shared by the parties;
provided that if one Party elects not to seek or maintain such patents in any
particular country or not to share equally in the expense thereof, the other
Party shall have the right to seek or maintain such patents in said country at
its own expense and shall have full control over the prosecution and maintenance
thereof even though title to any patent issuing thereon shall be joint. The
Party electing not seek or maintain such patents shall give the

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SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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other Party any necessary assistance required for the preparation and
prosecution of such patents filed or maintained by the other Party.

            3.6   It is understood by the parties that either Party may perform
development of any products or process independently of the development of the
Contract Technology hereunder. This Agreement is not intended to limit such
independent development involving technology or information of a similar nature
to the Contract Technology.

ARTICLE 4. LICENSE

            4.1   Toshiba grants to SanDisk a non-exclusive, non-transferable,
worldwide and royalty-free license, without the right to sublicense, under its
Solely Developed Patents to develop, have developed, make, have made, use, sell,
modify and otherwise dispose of any semiconductor products.

            4.2   Subject to SanDisk's confidentiality obligations under Section
8 and the provisions of Sections 3, 6, 7 and 10, SanDisk shall be free to use,
improve or modify without additional compensation to Toshiba the Residuals,
including the use, improvement or modification of such Residuals in the
development and manufacture of SanDisk's products; provided that this Section,
by itself, shall not be deemed to grant to SanDisk any rights or licenses under
any patents of Toshiba nor shall this Section operate to waive SanDisk's
confidentiality obligations under Section 8. In no event shall such Assignee or
SanDisk publish or disseminate said Residuals to any third party.

            4.3   SanDisk grants to Toshiba a non-exclusive, non-transferable,
worldwide and royalty-free license, without the right to sublicense, under its
Solely Developed Patents to develop, have develop, make, have made, use, sell,
modify and otherwise dispose of any semiconductor products.

            4.4   Toshiba shall prepare and transfer to the Yokkaichi Facility
(as defined in Appendix A) documentation for NAND process concerning the
Contract Technology for production at the Yokkaichi Facility; provided, however,
that SanDisk may have access to such documentation at such facilities but shall
have no right to disclose or transfer it to any third party.

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ARTICLE 5. COMMON R&D EXPENDITURE

            5.1   Unless otherwise mutually agreed upon by the Parties, no
Common R&D for non-NAND Flash Memory technology shall be performed at the Y3
Facility. Provided Toshiba continues to develop and advance NAND Flash Memory
technology for the benefit of both parties pursuant to the FVC Japan Operative
Documents, the Flash Partners Operative Documents and the other Joint Operative
Documents, SanDisk hereby agrees to share Toshiba's Common R&D expenditures and
shall pay to Toshiba its portion of such Common R&D expenditures in accordance
with this Section 5.1:

                  (a)   From the second quarter of calendar year 2000 through
and including March 31, 2002:

                  SanDisk will share in Toshiba's Common R&D expenditures as set
forth in Table A below, and SanDisk shall pay Toshiba for such Common R&D
expenditures in the amounts and on or prior to the dates provided in Table B as
follows:

                                    Table A
                  SanDisk's Allocation of Common R&D Expenses

<TABLE>
<CAPTION>
           2000                               2001                     2002
----------------------------------------------------------------------------
  2Q        3Q        4Q        1Q        2Q        3Q        4Q        1Q
----------------------------------------------------------------------------
                   (amounts incurred in millions of Yen)
<S>        <C>       <C>       <C>       <C>       <C>       <C>       <C>
[***]      [***]     [***]     [***]     [***]     [***]     [***]     [***]
----------------------------------------------------------------------------
</TABLE>

                                  Table B
                 Payment by SanDisk for Common R&D Expenses

<TABLE>
<CAPTION>
                      2002                                    Total
-------------------------------------------------------------------
June 30           September 30         December 31
-------------------------------------------------------------------
                (amounts payable in millions of Yen)
<S>               <C>                  <C>                    <C>
 [***]                [***]               [***]               [***]
-------------------------------------------------------------------
</TABLE>

                  Notwithstanding the foregoing, in the event of the termination
of this Agreement (i) on or before March 31, 2002, SanDisk shall be obligated
immediately to pay its share of the allocated Common R&D expenses accrued
through the date of such termination (pro-rated in the event such termination
occurs prior to the end of a quarter) as set forth in Table A, (ii) after March
31, 2002 but prior to December 31, 2002, SanDisk's shall be obligated
immediately to pay any unpaid amount set forth in Table B.

                  The parties acknowledge that after March 31, 2002, it will be
difficult to predetermine Toshiba's total Common R&D expenditures and a fixed
allocation of Common R&D expenditures for SanDisk. Therefore, after March 31,
2002, the payment by SanDisk to Toshiba for Common R&D expenditures will be
based on a percentage of SanDisk's Net Sales of NAND Flash Memory Products (as
hereinafter defined), and calculated and paid as follows:

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SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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                  (b)   After March 31, 2002 and within thirty (30) days of the
end of each calendar quarter based on SanDisk's Net Sales of NAND Flash Memory
Products for the quarter just ended as follows:

                        (i)   [***] of the first US $100 million for the quarter
reported;

                        (ii)  [***] of the next US $100 million for the quarter
reported; and

                        (iii) [***] of SanDisk's Net Sales of NAND Flash memory
Products in excess of US $200 million per quarter.

                  (c)   For purposes of this Section 5.1, "Net Sales of NAND
Flash Memory Products" shall mean [***]; provided, however, that:

                        (i)   from January 1, 2003 until December 31, 2005, the
amount calculated pursuant to Section 5.1(b) shall not exceed [***] per quarter;

                        (ii)  from January 1, 2006 to December 31, 2006, the
amount calculated pursuant to Section 5.1(b) shall not exceed [***] per quarter;

                        (iii) from January 1, 2007 to December 31, 2007, the
amount calculated pursuant to Section 5.1(b) shall not exceed [***] per quarter;
and

                        (iv)  from January 1, 2008 to December 31, 2008, the
amount calculated pursuant to Section 5.1(b) shall not exceed [***] per quarter;

                  (d)   Notwithstanding Section 5.1(b) and subject to Section
5.1(e), SanDisk's quarterly contribution for Common R&D pursuant to Sections
5.1(a) and 5.1(b) shall not exceed the sum of (i) [***] of the total Common R&D
annual expenditure of the Semiconductor Company of Toshiba, as notified to
SanDisk by Toshiba at the beginning of each of Toshiba fiscal year ("Total R&D
Budget") for the first [***] of the Total R&D Budget and (ii) [***] of the
portion of such Total R&D Budget in excess of [***].

                  (e)   In the event that any Common R&D activities have been
done [***] pursuant to Section 6.6(a)(i) of the FP Master Agreement, SanDisk
shall bear any and all charges incurred by Flash Partners from such Common R&D
activities [***] at the ratio of [***], and SanDisk's total contribution for
Common R&D charges pursuant to (b), (c), and (d) of this Section 5.1 shall be
reduced by such SanDisk Y3 Common R&D Charges; in the event such SanDisk Y3
Common R&D Charges exceed in any given quarter the amount for such quarter set
forth in paragraphs (b), (c) and (d) of this Section 5.1, unless otherwise
agreed upon by the Parties, [***] of SanDisk Y3 Common R&D Charges shall be
borne directly by SanDisk and no payment by SanDisk to Toshiba for any such
Common R&D expenditures shall be made for that given quarter pursuant to (b),
(c) or (d) of this Section 5.1, provided, however, that, to the extent of any
such excess amount that has been incurred from Common R&D activities [***]
performed without consent of SanDisk, [***] of the applicable portion of such
amount shall be borne by Toshiba.

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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                  (f)   The amount of the Total R&D Budget shall be subject to
verification if requested by SanDisk by disclosing internal Toshiba documents to
an independent certified public accountant appointed by SanDisk which shall
verify the stated amount of the Total R&D Budget, by written certification to
SanDisk by the appropriate officer of the Semiconductor Company of Toshiba. Such
verification shall be conducted, at SanDisk's cost and expense, during normal
business hours of Toshiba and not more frequently than annually.

                  (g)   Within 45 days of the start of each of its fiscal years,
Toshiba shall provide SanDisk with a 1-2 day detailed presentation of Toshiba's
process development activity at AMC and other Toshiba facilities for the
previous calendar year and forecasted activity for the new fiscal year as such
activity relates to or affects NAND Flash Memory. Any expenses incurred for such
presentation shall be borne by the Party incurring such expenses.

            5.2   Payments made pursuant to this Agreement shall constitute
SanDisk's sole financial obligation with respect to any and all Common R&D
charges from (or through) any Toshiba source.

            5.3   Payments of the fees provided for in Section 5.1 (other than
Section 5.1(a) and 5.1(b)), which payments shall be made on or before the dates
specified therein) shall be made by SanDisk within sixty (60) days after
receiving the invoice to be issued by Toshiba at the end of each applicable
calendar quarter. For the purpose of Toshiba's issuance of such invoices,
SanDisk shall submit to Toshiba, within 30 days following the end of each
quarter after April 1, 2002, a written report stating the quantity and Net Sales
of NAND Flash Memory Products sold or otherwise disposed of by SanDisk during
the applicable quarter.

            5.4   All payments under Section 5.1 shall be made in Japanese yen
by wire transfer of immediately available funds to the following account or such
other account as may be designated by Toshiba to SanDisk in writing:

      [***]

      Where the provisions of this Agreement require the conversion of an amount
initially computed in another currency into Japanese Yen, the Japanese Yen
amount payable shall be calculated using the New York foreign exchange mid range
rates (Currency per US Dollars) published in The Wall Street Journal, Western
Edition, on the last day such journal is published in the calendar quarter
immediately preceding the date of payment.

            5.5   All payments provided for in Section 5.1 shall be made without
deduction of taxes; provided, however, that in the event any withholding income
tax is imposed by U.S. tax authorities on any amount payable to Toshiba
hereunder, SanDisk may withhold such income tax from such amount to the extent
that Toshiba may obtain a tax credit against its Japanese income tax. SanDisk
shall without undue delay obtain and send to Toshiba tax certificates evidencing
the tax amount withheld and paid to U.S. tax authorities.

            5.6   In the event any compensation payable to Toshiba by SanDisk
under this Agreement becomes overdue other than as a result of any action or
inaction on the part of

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Toshiba, Toshiba shall be entitled to request SanDisk to pay interest at twelve
percent (12%) per annum until such compensation is paid.

            5.7   Toshiba shall have the right, at its sole cost and expense, to
have an independent certified public accountant conduct during normal business
hours and not more frequently than annually, an audit of the appropriate records
of SanDisk to verify the number of units of Toshiba Foundry NAND Flash Memory
Products, FVC Japan NAND Flash Memory Products and Y3 NAND Flash Memory Products
sold or otherwise disposed of by SanDisk and SanDisk's calculation of the fees
and Net Sales pursuant to Section 5.1.

ARTICLE 6. WARRANTY

            6.1   Each Party provides to the other Party its technical
information on an "as-is" basis only, and does not make any warranty or
representation with respect to such technical information for any purpose.

            6.2   Nothing contained in this Agreement shall be construed as:

                  (a)   a warranty or representation that the manufacture, use,
sale or other disposal of semiconductor products by the other Party using any
technical information received under this Agreement will be free from
infringement of patents or any other intellectual property rights of any third
Party;

                  (b)   conferring the other Party any right to use in
advertising, publicity or otherwise any trademark, trade name or names, or any
contraction, abbreviation or simulations thereof of either Party;

                  (c)   conferring the other Party, by implication, estoppel or
otherwise, any license or other right, except for the licenses and rights
expressly granted hereunder; and

                  (d)   an obligation to furnish any technical information or
know-how except as otherwise specifically provided herein.

ARTICLE 7. LIMITATION OF LIABILITY

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL,
CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGE OF ANY KIND, (INCLUDING LOSS OF
PROFIT OR DATA) WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH LOSS.

                                        8

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ARTICLE 8. CONFIDENTIALITY

            8.1   As used in this Agreement, the term "Confidential Information"
shall mean any information disclosed by Toshiba to SanDisk pursuant to this
Agreement which is in written, graphic, machine readable or other tangible form
and is marked "Confidential", "Proprietary" or in some other manner to indicate
its confidential nature. Confidential Information may also include oral
information disclosed by Toshiba to SanDisk pursuant to this Agreement, provided
that such information is designated in a manner to indicate its confidential
nature at the time of disclosure and reduced to a written summary by Toshiba
within thirty (30) days after its oral disclosure. For avoidance of doubt, all
information observed by or disclosed to Assignees at Toshiba's facilities shall
be treated as Toshiba Confidential Information.

            8.2   During the [***] period following receipt of such information,
the receiving Party shall keep any Confidential Information, including the
technical information SanDisk has access to at AMC during the course of the
development of the Contract Technology hereunder, in strict confidence, and
shall not disclose such Confidential Information to any third party without
prior written consent of the disclosing Party. The receiving Party shall
maintain the Confidential Information with at least the same degree of care that
the receiving Party uses to protect its own strictly confidential information,
but no less care than is reasonable under the circumstances. Further, the
receiving Party shall not use the Confidential Information for any purposes
other than for the development of the Contract Technology hereunder, except as
otherwise provided herein.

            8.3   Neither Party shall disclose the terms and conditions of this
Agreement to any third party other than in compliance with any government
regulation, without prior written consent of the other Party.

            8.4   The confidentiality obligation set forth in Sections 8.2 and
8.3 above shall not apply to any information which:

      (a) is already known to the receiving Party at the time of disclosure;

      (b) is or becomes publicly through no fault of the receiving Party;

      (c) is rightfully received by the receiving Party from a third party
          without any restriction on disclosure;

      (d) is independently developed by the receiving Party;

      (e) is disclosed with the prior written consent of the disclosing Party
          hereunder; or

      (f) is disclosed pursuant to applicable laws, regulations or court order;
          provided, that the receiving Party shall give the disclosing Party
          prompt notice of such request so that the disclosing Party has an
          opportunity to defend, limit or protect such disclosure.

            8.5   Each Party understands that disclosure or dissemination of the
other Party's Confidential Information not expressly authorized hereunder would
cause irreparable

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injury to such other Party, for which monetary damages would not be an adequate
remedy and said other Party shall be entitled to equitable relief in addition to
any remedies the other Party may have hereunder or at law. In the event SanDisk
is to enter into any joint development work with any third party, SanDisk
warrants that Toshiba Confidential Information provided to SanDisk in connection
with the development of the Contract Technology shall neither be used for such
joint development work nor be disclosed to any third party unless expressly
otherwise provided hereunder.

ARTICLE 9. TERM AND TERMINATION

            9.1   This Agreement shall become effective on the Common R&D
Effective Date and continue in full force and effect until the later of the
termination of the FVC Japan Master Agreement or the Master Agreement, unless
earlier terminated as hereinafter provided. The term of this Agreement may be
extended by mutual agreement of both parties. This Agreement shall automatically
terminate upon termination of the FVC Japan Master Agreement or the Master
Agreement, whichever is later.

            9.2   If either Party fails to perform or breaches any of its
material obligations under this Agreement, then, upon sixty (60) days written
notice specifying such failure or breach, the non-defaulting Party shall have
the right to terminate this Agreement forthwith, unless the failure or breach
specified in the notice has been cured during the sixty (60) day period.
Termination of this Agreement pursuant to this Section 9.2 shall not relieve the
breaching Party from any liability arising from any breach of this Agreement and
such termination shall be without prejudice to any other rights and remedies of
the non-breaching Party provided at law or in equity, in addition to the rights
and remedies set forth in this Agreement.

            9.3   Either Party shall have the right to terminate this Agreement
by giving written notice to the other Party upon the occurrence of any of the
following events:

                  (a)   the filing by the other Party of a voluntary petition in
bankruptcy or insolvency;

                  (b)   any adjudication that such other Party is bankrupt or
insolvent;

                  (c)   the filing by such other Party of any legal action or
document seeking reorganization, readjustment or arrangement of its business
under any law relating to bankruptcy or insolvency;

                  (d)   the appointment of a receiver for all or substantially
all of the property of such other Party; or

                  (e)   the making by such other Party of any assignment of
whole or substantial assets for the benefit of creditors.

      This Agreement shall terminate on the thirtieth (30th) day after such
notice of termination is given.

                                       10

<PAGE>

            9.4   The provisions of Sections 3, 6, 7, 8, 9 and 10 and Appendix A
shall survive any termination or expiration of this Agreement. The provision of
Section 4 shall survive the expiration of this Agreement; provided that SanDisk
has paid to Toshiba the total amount of fees required to be paid in Section 5.

ARTICLE 10. GENERAL PROVISIONS

            10.1  Neither Party is required to disclose any information of which
disclosure is prohibited by laws of the country of such Party.

            10.2  Neither Party shall export or re-export, directly or
indirectly, any technical information disclosed hereunder or direct product
thereof to any destination prohibited or restricted by the export control
regulations of Japan and the United States, including the U.S. Export
Administration Regulations, without the prior authorization from the appropriate
governmental authorities. SanDisk hereby certifies that SanDisk will not use
technical information supplied by Toshiba hereunder for any purpose to develop
or manufacture nuclear, chemical, biological weapons or missiles (hereafter
"weapons of mass destruction"). SanDisk further certifies that it will not sell
any products manufactured using Toshiba's technical information to any Party if
it knows that the end-user of the products will use them for the development
and/or manufacture of the weapons of mass destruction.

            10.3  The rules of construction and documentary conventions set
forth in Appendix A to the Master Agreement shall apply to, and are hereby
incorporated in, this Agreement.

                       [Rest of Page Intentionally Blank]

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            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in duplicate, as of the date first written above, by their duly
authorized officers or representatives.

Toshiba Corporation                     SanDisk Corporation

By: /s/ Masashi Muromachi               By: /s/ Eli Harari
   --------------------------------        -------------------------------------

Name:  Masashi Muromachi                Name:  Eli Harari

Title: President and CEO                Title: President and CEO
       Semiconductor Company
       Corporate Vice President

                                       12

<PAGE>

                                    EXHIBIT A

                              (Contract Technology)

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                                    EXHIBIT B

                   (Development Work for Contract Technology)

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                                       14<PAGE>
                                                                    EXHIBIT 10.4

               AMENDED AND RESTATED PRODUCT DEVELOPMENT AGREEMENT

This AMENDED AND RESTATED PRODUCT DEVELOPMENT AGREEMENT, dated as of September
10, 2004, is made and entered into by and between Toshiba Corporation, a
Japanese corporation with a principal place of business at 1-1, Shibaura
1-chome, Minato-ku, Tokyo 105-8001, Japan ("Toshiba"), and SanDisk Corporation,
a Delaware corporation with a principal place of business at 140 Caspian Court,
Sunnyvale, CA 94089, U. S. A. ("SanDisk").

WHEREAS, Toshiba and SanDisk entered into a Product Development Agreement, dated
as of May 9, 2000, which was amended as of April 10, 2002 and which has been
modified by correspondence between SanDisk and Toshiba (collectively, the "Prior
Agreement"); and

WHEREAS, Toshiba and SanDisk desire to amend the Prior Agreement with the effect
of superceding the Prior Agreement from and after the date of this Agreement;

NOW, THEREFORE, the parties agree as follows:

ARTICLE 1. DEFINITIONS

1.1   "Products" shall mean the NAND Flash Memory devices developed hereunder,
      including the NAND Flash Memory devices specified in Exhibit A attached
      hereto, but excluding Flash Memory Controllers.

1.2   "Flash Memory Controller" shall mean any firmware, hardware and/or
      software that is necessary to operate a NAND Flash Memory device.

1.3   "Developed Products" shall mean Products solely developed by either party
      during the term of this Agreement, including solely developed derivatives
      of Jointly Developed Products; provided however, that Developed Products
      shall not include cut-downs of Jointly Developed Products.

1.4   "Jointly Developed Products" shall mean Products jointly developed by
      Toshiba and SanDisk during the term of this Agreement.

1.5   "Toshiba Developed Controller" shall mean a Flash Memory Controller solely
      developed by Toshiba during the term of this Agreement, including solely
      developed derivatives of Jointly Developed Controllers.

1.6   "SanDisk Developed Controller" shall mean a Flash Memory Controller solely
      developed by SanDisk during the term of this Agreement, including solely
      developed derivatives of Jointly Developed Controllers.

1.7   "Jointly Developed Controller" shall mean a Flash Memory Controller
      developed by Toshiba and SanDisk during the term of this Agreement.

1.8   "Development Project" shall mean all development activities undertaken
      pursuant to Article 2.

1.9   "Background Technology" shall mean the Technology which has been or will
      be developed by or for either party independently of the Development
      Projects and

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

<PAGE>

      owned or controlled by such party prior to or during the term of this
      Agreement, and which shall be deemed reasonably necessary for the other
      party to perform the Development Projects. Background Technology may be
      either SanDisk Background Technology or Toshiba Background Technology, as
      the context requires.

1.10  "Technology" shall mean all developments, ideas, inventions, Test
      Technology and other technical information (whether or not patentable)
      relating to Products as well as intellectual property rights relating
      thereto, including trade secrets, copyrights and maskwork rights, but
      specifically excluding Patents.

1.11  "Developed Technology" shall mean Technology solely developed by either
      party in the course of the Development Projects.

1.12  "Jointly Developed Technology" shall mean Technology jointly developed by
      Toshiba and SanDisk in the course of the Development Projects.

1.13  "Test Technology" shall mean all developments, ideas, inventions, test
      programs, test methods, configured and developed hardware and other
      technical information (whether or not patentable) for all stages of
      product manufacture, as well as intellectual property rights relating
      thereto, but specifically excluding Patents, concerning testing of
      Products and Flash Memory Controllers.

1.14  "Controller Technology" shall mean all developments, ideas, inventions and
      technical information (whether or not patentable) relating to Flash Memory
      Controllers and intellectual property rights relating thereto, including,
      but not limited to, trade secrets, copyrights and maskwork rights, but
      specifically excluding Patents.

1.15  "Jointly Developed Controller Technology" shall mean Controller Technology
      developed by Toshiba and SanDisk during the term of this Agreement.

1.16  "Developed Controller Technology" shall mean Controller Technology solely
      developed by either party during the term of this Agreement.

1.17  "SanDisk Controllers" shall mean SanDisk Developed Controllers, Jointly
      Developed Controllers, SanDisk Developed Controller Technology and Jointly
      Developed Controller Technology.

1.18  "SanDisk Products and Technology" shall mean SanDisk Developed Products,
      SanDisk Background Technology, SanDisk Developed Technology and SanDisk
      Controllers.

1.19  "Toshiba Products and Technology" shall mean Toshiba Developed Products,
      Toshiba Background Technology, Toshiba Developed Technology, Toshiba
      Developed Controller Technology and Toshiba Developed Controllers.

1.20  "Joint Products and Technology" shall mean Jointly Developed Products and
      Jointly Developed Technology.

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<PAGE>

1.21  "Patents" shall mean all classes of types of patents, utility models
      (excluding design patents) and any applications therefor in all countries
      of the world, which are, now or hereafter, owned or controlled by either
      party hereto.

1.22  "Jointly Developed Patents" shall mean Patents which arise out of the
      inventions jointly made by the employees of Toshiba or SanDisk in the
      course of the Development Projects.

1.23  "Effective Date" shall be September 10, 2004.

1.24  "Agreement" means this Amended and Restated Product Development Agreement
      together with any Exhibits, Schedules, Appendices and Attachments hereto
      and Appendix A.

1.24  "Master Agreement" shall mean that certain Flash Partners Master
      Agreement, dated as of the date hereof, by and among Toshiba, SanDisk and
      SanDisk International, a company organized under the laws of the Cayman
      Islands.

1.25  "Appendix A" shall mean the Definitions, Rules of Construction and
      Documentary Conventions, attached as Appendix A to the Master Agreement.

1.26  "Direct R&D Effective Date" shall mean May 9, 2000.

ARTICLE 2. DEVELOPMENT

2.1   Except as expressed in the Common R&D Agreement, each party agrees to
      undertake at Toshiba's or SanDisk's facilities (such facility or
      facilities to be determined by the Coordinating Committee prior to
      commencement of the applicable Development Project) the Development
      Projects specified in Exhibit A in accordance with a development schedule
      and activity allocations to be determined by the Coordinating Committee.
      During the term of this Agreement, the parties will use reasonable efforts
      to continually identify and pursue joint development of new products and
      Exhibit A may be amended from time to time, in accordance with the
      approval of the Coordinating Committee, to reflect such new Development
      Projects.

2.2   Each party shall, from time to time during the term of this Agreement and
      to the extent reasonably necessary to perform the Development Projects,
      provide the other party with technical information relating to its
      Background Technology.

2.3   Each party shall, from time to time during the term of this Agreement,
      provide the other party with technical information relating to Jointly
      Developed Technology and Jointly Developed Controller Technology.

2.4   A party that is in possession of Jointly Developed Technology, Jointly
      Developed Controller Technology or other technical information, including
      the items specified in Exhibit C, shall, upon request of the other party
      made at any time during the term of this Agreement or for a period of one
      year thereafter, promptly deliver to the other party copies of such
      information as requested. When requested by either party, such exchange of
      information, shall include test flow conditions and related know-how.

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<PAGE>

2.5   During the term of this Agreement, upon request by either party and
      subject to the availability of the other party's engineers, the other
      party shall (i) delegate its qualified engineers to advise and consult
      with such requesting party at the requesting party's facilities or (ii)
      receive qualified engineers of the requesting party to train and advise at
      its own facilities. The details of such delegation or reception of the
      engineers shall be decided by the Coordinating Committee as described in
      Article 3.

2.6   This Agreement shall not encompass or include products or technology
      developed jointly or solely by the parties, utilizing or based on Toshiba
      NOR flash technology or other Toshiba non-NAND Flash technologies, or
      SanDisk NOR flash technology or other SanDisk non-NAND flash technologies.

2.7   Either party may propose to disclose (the "proposing party") Jointly
      Developed Controller Technology to any Qualified Design House under a
      written agreement of confidentiality and non-use, for a period of
      restriction generally to be discussed and agreed upon by the Coordinating
      Committee, but if not so discussed or agreed upon, then for a period of at
      least seven years, for the purpose of engaging such Qualified Design House
      to design a solely developed Flash Memory Controller for the account of
      the proposing party to be manufactured and sold by the proposing party.
      Prior to making such disclosure to a Qualified Design House, the proposing
      party shall give the other party to this Agreement (the "reviewing party")
      the opportunity to jointly develop such product with the proposing party.
      The opportunity should be presented in detail at a meeting of the
      Coordinating Committee and the reviewing party will be given a reasonable
      amount of time to consider the proposal. If the reviewing party accepts
      the opportunity to enter into such joint development, the proposing party
      shall not make the disclosure to the Qualified Design House. For the
      purpose of this section, "Qualified Design House" shall mean a company
      which offers services to design devices similar to Flash Memory
      Controllers but which does not make or sell flash memory devices or flash
      cards.

2.8   Each of Toshiba and SanDisk agree to provide to the other party certain
      information relating to product development, including the information set
      forth in Exhibit D attached hereto

ARTICLE 3. COORDINATING COMMITTEE

3.1   Immediately after the Effective Date, the parties shall jointly establish
      the "Coordinating Committee" which shall be comprised of six (6)
      representatives; three (3) of which shall be appointed by Toshiba and
      three (3) of which shall be appointed by SanDisk, which appointments shall
      have been approved by each of the parties; provided that such approval
      shall not be unreasonably withheld.

3.2   The Coordinating Committee shall be responsible for:

      (a)   Determining new Products and Flash Memory Controllers to be jointly
            developed, including product design and manufacturing
            specifications. All Product development projects, including Flash
            Memory Controller development projects, and projects considered by
            either party for sole development, shall be disclosed to the
            Coordinating Committee prior to the start of development;

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<PAGE>

      (b)   Reviewing the progress of the Development Projects against the
            development schedule and evaluating the Development Projects;

      (c)   Discussing necessary changes to the scope or the schedules of the
            Development Projects and actions to be taken;

      (d)   Resolving any differences in opinions between the parties which may
            arise during the course of the Development Projects;

      (e)   Allocation of wafer processing costs as specified in Article 5;

      (f)   Discussing inventorship of patents conceived by the parties as a
            result of any joint development activity hereunder; and

      (g)   Any other matters as agreed upon by both parties.

      All decisions by the Coordinating Committee, including any decision to
      jointly develop Products or Flash Memory Controllers, shall be made
      unanimously and shall be set forth in writing. If any matter is not
      determined by unanimous consent of the Coordinating Committee, such matter
      shall be referred to Management Committee (as defined in the Master
      Agreement) for its final decision. In connection with discussing
      inventorship of patents pursuant to Section 3.2(f), the parties agree to
      notify the Coordinating Committee as soon as possible, but not later than
      three months after such party's knowledge of the filing date of the
      particular patent.

3.3   The Coordinating Committee shall have periodical meetings which shall be
      led by the Technical Coordinator of both parties on a quarterly basis, or
      at such other intervals, alternatively in the United States and in Japan
      or such other places as mutually agreed upon by the Technical Coordinators
      of each party. Either party may invite other of its employees to attend
      such meetings.

ARTICLE 4. TECHNICAL COORDINATORS

Each party shall designate from time to time its Technical Coordinator from its
three members of the Coordinating Committee to be appointed in accordance with
Section 3.1. The Technical Coordinator shall be responsible for supervision of
transmittal and receipt of technical information hereunder, coordinating the
site visits by engineers and coordination of the training and consultation to be
performed hereunder. The incumbent Technical Coordinators for each party are as
follows:

For Toshiba: [To be determined]

For SanDisk: Khandker Quader

ARTICLE 5. COST

Each party shall bear all costs and expenses incurred by such party in
performing the Development Projects which will include the salaries of its
engineers involved in joint development projects hereunder. Notwithstanding the
foregoing, in order to balance each party's cost for Jointly Developed Products
and Jointly Developed Flash Memory Controllers, SanDisk shall share Toshiba's
direct costs of processing certain wafers to be

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<PAGE>

made for the purpose of such Product design verification (including mask costs)
in the amounts set forth in Exhibit B. If either party believes there are
significant additional costs (beyond direct costs) that should be shared (i.e.
other material costs such as subcontractors fees for packaging and analysis),
the Parties will discuss in good faith if any appropriate amount of such
additional costs is to be shared between the Parties. Similarly, Toshiba shall
share the direct costs of processing certain wafers to be made for the purpose
of Flash Memory Controller verification (including mask costs) and other
material costs relating thereto, such as subcontractor fees for packaging and
analysis, in a manner as determined by the Coordinating Committee but
conceptually similar to the nature of the expenses shared by SanDisk for
Products.

ARTICLE 6. OWNERSHIP

6.1   Toshiba Products and Technology shall be and remain the exclusive property
      of Toshiba, subject to the license granted in accordance with Section 7.1.
      From time to time, upon request of SanDisk, Toshiba shall offer SanDisk,
      based upon reasonable terms, a non-exclusive, worldwide, non-transferable
      license, without right to sublicense, to develop, have developed, make,
      have made, use, sell, modify and otherwise dispose of all or a portion of
      the Toshiba Products and Technology.

6.2   Toshiba Patents shall be and remain the exclusive property of Toshiba,
      subject to the licenses granted in accordance with the Patent Cross
      License Agreement between SanDisk Corporation and Toshiba Corporation, as
      amended from time to time, the "Patent Agreement").

6.3   SanDisk Products and Technology shall be and remain the exclusive property
      of SanDisk, subject to the licenses granted in accordance with Sections
      7.2 and 7.3 hereof. From time to time, upon request of Toshiba, SanDisk
      shall offer Toshiba, based upon reasonable terms, a non-exclusive,
      worldwide, non-transferable license, without right to sublicense, to
      develop, have developed, make, have made, use, sell, modify and otherwise
      dispose of all or a portion of the SanDisk Products and Technology.

6.4   SanDisk Patents shall be and remain the exclusive property of SanDisk,
      subject to the licenses granted in accordance with the Patent Agreement.

6.5   Any right, title and interest in and to Joint Products and Technology
      shall be jointly owned by Toshiba and SanDisk. With the exception that
      neither party may sublicense or transfer Joint Products and Technology
      without the prior written consent of the other party, Toshiba and SanDisk
      each has the right to use, fully exploit, disclose or otherwise dispose of
      such Joint Products and Technology for any purpose without consent of nor
      accounting to the other party.

6.6   Any right, title and interest in and to Jointly Developed Patents shall be
      jointly owned by Toshiba and SanDisk. Each party shall be free to use such
      Jointly Developed Patents for any purpose and shall have the right to
      grant non-exclusive licenses to any third party without the consent of nor
      accounting to the other party. Both parties shall promptly agree on which
      of them shall file and prosecute the first patent application and which
      countries' corresponding applications shall be filed and by whom. All
      expenses incurred in obtaining and maintaining such patents shall be
      shared equally by the parties; provided that if one party elects not to
      seek or maintain such patents in

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<PAGE>

      any particular country or not to share equally in the expense thereof, the
      other party shall have the right to seek or maintain such patents in said
      country at its own expense and shall have full control over the
      prosecution and maintenance thereof even though title to any patent
      issuing thereon shall be joint. The party electing not to seek or maintain
      such patents shall give the other party any necessary assistance required
      for the preparation and prosecution of such patents filed or maintained by
      the other party. Jointly Developed Patents shall not be considered
      "SanDisk Licensed Patents" or "Toshiba Licensed Patents" as defined in the
      Patent Agreement.

ARTICLE 7. LICENSE

7.1   Subject to the terms and conditions of this Agreement, Toshiba hereby
      grants to SanDisk a non-exclusive, non-transferable, worldwide and
      royalty-free license, without the right to sublicense, to use Toshiba
      Background Technology provided to SanDisk hereunder to develop, have
      developed, make, have made, use, sell, modify and otherwise dispose of
      Products, SanDisk Controllers and any other controller products designed
      by or for SanDisk.

7.2   Subject to the terms and conditions of this Agreement, SanDisk hereby
      grants to Toshiba a non-exclusive, non-transferable, worldwide and
      royalty-free license, without the right to sublicense, to use SanDisk
      Background Technology provided to Toshiba hereunder to develop, have
      developed, make, have made, use, sell, modify and otherwise dispose of
      Products, Toshiba Developed Controllers and other controller products not
      designed or used for file storage.

7.3   Subject to the terms and conditions of this Agreement, SanDisk hereby
      grants to Toshiba a non-exclusive, non-transferable, worldwide and
      royalty-free license, without the right to sublicense, to make, have made,
      use, sell, modify and otherwise dispose of any Jointly Developed
      Controllers.

7.4   It is understood that SanDisk has the right to use, fully exploit,
      disclose, sublicense, transfer or otherwise dispose of SanDisk Controllers
      and any other controller product designed by or for SanDisk without
      consent from or accounting to Toshiba, even if such SanDisk Controllers or
      other controller products incorporate any Toshiba Background Technology.

ARTICLE 8. WARRANTY

8.1   Toshiba and SanDisk each provides to the other party its Background and
      Developed Technology on an "as-is" basis only, and neither makes any
      warranty or representation with respect to the Background Technology or
      Developed Technology for any purpose.

8.2   Nothing contained in this Agreement shall be construed as:

      (a)   a warranty or representation that the manufacture, use, sale or
            other disposal of semiconductor products by the other party using
            any technical information received under this Agreement will be free
            from infringement of patents or any other intellectual property
            rights of third party;

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<PAGE>

      (b)   conferring to the other party any right to use in advertising,
            publicity or otherwise any trademark, trade name or names, any
            contraction, abbreviation or simulations thereof of either party;

      (c)   conferring to the other party, by implication, estoppel or
            otherwise, any license or other right except for the licenses and
            rights expressly granted hereunder; or

      (d)   an obligation to furnish any technical information or know-how
            except as otherwise specifically provided herein.

ARTICLE 9. LIMITATION OF LIABILITY

Neither party shall be responsible to the other party in respect of any action
taken or reliance upon any information furnished to the other party under this
Agreement, except to the extent of any breach of the warranties or agreements
set forth in this Agreement. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGE OF ANY
KIND, (INCLUDING LOSS OF PROFIT OR DATA) WHETHER OR NOT ADVISED OF THE
POSSIBILITY OF SUCH LOSS.

ARTICLE 10. CONFIDENTIALITY

10.1  As used in this Agreement, the term "Confidential Information" shall mean
      any information disclosed by one party to other party pursuant to this
      Agreement which is in written, graphic, machine readable or other tangible
      form and is marked Confidential, Proprietary or in some other manner to
      indicate its confidential nature. Confidential Information may also
      include oral information disclosed by one party to the other party
      pursuant to this Agreement; provided that such information is designated
      in a manner to indicate its confidential nature at the time of disclosure
      and reduced to a written summary by the disclosing party within thirty
      (30) days after its oral disclosure.

10.2  During the [***] period following receipt of such information, the
      receiving party shall keep, and cause its Subsidiaries, its sublicensees
      and subcontractors who have access to Confidential Information as
      permitted in this Agreement to keep any Confidential Information,
      including but not limited to Background Technology and Developed
      Technology provided by the disclosing party hereunder, in strict
      confidence, and shall not disclose such Confidential Information to any
      third party without the prior written consent of the disclosing party. The
      receiving party shall maintain the Confidential Information with at least
      the same degree of care that the receiving party uses to protect its own
      strictly confidential information, but no less than a reasonable degree of
      care under the circumstances. Further, the receiving party shall not use
      the Confidential Information for any purpose other than for the
      Development Projects, except as otherwise provided herein.

10.3  Each party shall not disclose the terms and conditions of this Agreement
      to any third party without the prior written consent of the other party.

10.4  The confidentiality obligation set forth in Articles 10.2 and 10.3 above
      shall not apply to any information which:

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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      (a)   is already known by the receiving party at the time of disclosure;

      (b)   is or becomes publicly known through no fault of the receiving
            party;

      (c)   is rightfully received by the receiving party from a third party
            without any restriction on disclosure;

      (d)   is independently developed by the receiving party;

      (e)   is disclosed with the prior written consent of the disclosing party
            hereto; or

      (f)   is disclosed pursuant to applicable laws, regulations or court
            order, provided that the receiving party shall give the disclosing
            party prompt notice of such request so that the disclosing party has
            an opportunity to defend, limit or protect such disclosure.

10.5  Each party understands that disclosure or dissemination of the other
      party's Confidential Information, specifically Toshiba Background
      Technology provided to SanDisk in connection with the Development
      Projects, not expressly authorized hereunder would cause irreparable
      injury to such other party, for which monetary damages would not be an
      adequate remedy and said other party shall be entitled to equitable relief
      in addition to any remedies the other party may have hereunder or at law.
      In the event SanDisk is to enter into any joint development work with any
      third party, SanDisk warrants that Toshiba Background Technology provided
      to SanDisk in connection with the Development Projects shall neither be
      used for such joint development work nor be disclosed to any third party
      unless expressly otherwise provided hereunder.

10.6  The Technical Coordinator of each party shall ensure that the other
      party's Technical Coordinator is informed of and receives in sufficient
      detail and completeness the Background and Developed Technology that is
      exchanged under Article 2. Each Technical Coordinator shall also monitor
      within their company the distribution of Confidential Information received
      from the other party only to those who have a need to know and, further,
      to assist in preventing the unauthorized disclosure of the Confidential
      Information to personnel within the company who do not have a need to
      know, or to third parties. The Technical Coordinator for each party shall
      maintain pertinent records and the like, and acknowledge the receipt from
      the other party of all Confidential Information.

ARTICLE 11. TERM AND TERMINATION

11.1  This Agreement shall become effective on the Direct R&D Effective Date and
      continue in full force and effect until later of the termination of the
      FVC-Japan Master Agreement or the Master Agreement, unless earlier
      terminated as hereinafter provided. The term of this Agreement may be
      extended by mutual agreement of both parties.

11.2  If either party fails to perform or breaches any of its material
      obligations under this Agreement, then, upon sixty (60) days advanced
      written notice specifying such failure or breach, the non-defaulting party
      shall have the right to terminate this Agreement forthwith, unless the
      failure or breach specified in the notice has been cured during

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      the sixty (60) day period. Termination of this Agreement pursuant to this
      Section 11.2 shall not relieve the breaching party from any liability
      arising from any breach of this Agreement and such termination shall be
      without prejudice to any other rights and remedies of the non-breaching
      party provided at law or in equity, in addition to the rights and remedies
      set forth in this Agreement.

11.3  Either party shall have the right to terminate this Agreement by giving
      written notice to the other party upon the occurrence of any of the
      following events:

      (a)   the filing by the other party of a voluntary petition in bankruptcy
            or insolvency;

      (b)   any adjudication that such other party is bankrupt or insolvent;

      (c)   the filing by such other party of any legal action or document
            seeking reorganization, readjustment or arrangement of its business
            under any law relating to bankruptcy or insolvency;

      (d)   the appointment of a receiver for all or substantially all of the
            property of such other party; or

      (e)   the making by such other party of any assignment of whole or
            substantial assets for the benefit of creditors.

      This Agreement shall terminate on the thirtieth (30th) day after such
      notice of termination is given.

11.4  In the event of termination or expiration of this Agreement, the rights
      and licenses granted to each party specified in Article 7 shall survive
      such termination or expiration, except that if this Agreement is
      terminated by either party for any of the events specified in Sections
      11.2 and 11.3, then the licenses granted to the defaulting party or the
      non-terminating party, as the case may be, shall thereupon terminate. The
      provisions of Articles 6, 8, 9, 10, 11 and 12 shall survive any
      termination or expiration of this Agreement.

ARTICLE 12. GENERAL PROVISIONS

12.1  Neither party is required to disclose any information of which disclosure
      is prohibited by laws of the country of such party.

12.2  In the event that the parties will, after the Effective Date, make an
      announcement regarding this transaction and their business relationship,
      such announcement shall be in a mutually agreeable form and at a mutually
      agreeable time; provided that any information to be disclosed and/or
      announced by either party shall be identified through consultation with
      the other party and be agreed upon between the parties before the
      disclosure and announcement.

12.3  Neither party shall export or re-export, directly or indirectly, any
      technical information disclosed hereunder or direct product thereof to any
      destination prohibited or restricted by the export control regulations of
      Japan and the United

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      States, including the U.S. Export Administration Regulations, without the
      prior authorization from the appropriate governmental authorities. SanDisk
      hereby certifies that SanDisk will not use technical information supplied
      by Toshiba hereunder for any purpose to develop or manufacture nuclear,
      chemical, biological weapons or missiles (hereafter "weapons of mass
      destruction"). SanDisk further certifies that it will not sell any
      products manufactured using Toshiba's technical information to any party
      if it knows that the end-user of the products will use them for the
      development and/or manufacture of the weapons of mass destruction.

12.4  The rules of construction and documentary conventions set forth in
      Appendix A to this Agreement shall apply to, and are hereby incorporated
      in, this Agreement.

                             [signatures next page]

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      IN WITNESS WHEREOF, each of the parties hereto have caused this Agreement
to be executed in duplicate, as of the date first written above, by their
respective duly authorized officers or representatives.

       Toshiba Corporation                              SanDisk Corporation

By: /s/ Masashi Muromachi                          By: /s/ Eli Harari
    ----------------------                             -------------------------
Name:  Masashi Muromachi                           Name:  Eli Harari
Title: President and CEO                           Title: President and CEO
       Semiconductor Company
       Corporate Vice President

[signature page to Amended and Restated Product Development Agreement]

<PAGE>

                                    Exhibit A

      Jointly Developed Products and Jointly Developed Flash Memory Controllers

1.    256 M       NAND Flash Memory

2.    512 M       NAND Flash Memory

3.    1 G         NAND Flash Memory

4.    2 G         NAND Flash Memory

5.    4 G         NAND Flash Memory

6.    [***]

Note 1: The Coordinating Committee will determine (i) the best process
technology to utilize for all products to be jointly developed pursuant to this
Agreement (e.g. 0.16 micron, 0.13 micron, 90 nanometer and smaller sizes), (ii)
whether such products shall use [***] or [***] and (iii) detail product
specifications, such as, but not limited to, voltage operating range [***].

Note 2: The Coordinating Committee shall be responsible for determining
development responsibilities of each party with respect to jointly developed
products.

Note 3: All Products and Flash Memory Controllers jointly developed hereunder
shall include the development of wafer test products. A "wafer test product" is
a test system used to test semiconductor wafers.

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

                                    Exhibit B

                       SHARING OF WAFER PROCESSING COSTS -
       (For Jointly Developed Products and Jointly Developed Controllers)

                           Jointly Developed Products

            [***]

                          Jointly Developed Controllers

      (1) Wafer processing cost associated with Jointly Developed Controllers
      will be shared by the parties as determined by the Coordinating Committee
      in accordance with Section 3.2.

      Note 1: All costs charged pursuant to this Exhibit B are direct costs and
      have been referred to by the parties as Direct R&D charges. Original
      back-up information and financial detail of all such charges shall be made
      available to the party paying the shared expense, and all such charges are
      subject to financial audit by the external auditors of the party paying
      the charge. The party receiving payment shall cooperate with all
      reasonable requests to view and make copies of financial back-up and
      financial detail material associated with the charges.

      Note 2: Payments specified above shall be made within sixty (60) days
      after receipt of invoice issued at the end of each calendar half year.

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

                                    Exhibit C

[***]

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

                                    Exhibit D

                              Information Exchange

[***]

[***] INDICATES THAT CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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