Document:

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                                                                    Ehibit 10.12

                                   DISC DRIVE
                            RESEARCH AND DEVELOPMENT
                             COST SHARING AGREEMENT

         Effective for the period June 29, 1996 through June 27, 1997, and
subsequent fiscal years, SEAGATE TECHNOLOGY, INC., a U.S. corporation with its
principal business office at 920 Disc Drive, Scotts Valley, California
95067-0360 (hereinafter referred to as STUS), SEAGATE TECHNOLOGY INTERNATIONAL,
a Cayman Islands corporation with its registered office at Ugland House, South
Church Street, Georgetown, Grand Cayman, Cayman Islands, B.W.I. (hereinafter
referred to as STIC), SEAGATE TECHNOLOGY (IRELAND), a Cayman Islands corporation
with its registered office at Ugland House, South Church Street, Georgetown,
Grand Cayman, Cayman Islands, B.W.I.(hereinafter referred to as STIR), SEAGATE
TECHNOLOGY (CLONMEL), a Cayman Islands corporation with its registered office at
Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman Islands,
B.W.I. (hereinafter referred to as STCL), SEAGATE TECHNOLOGY INTERNATIONAL
(WUXI) CO. LTD., a China corporation with its principal business office at Lot
106, Xing Chuanger Lu, Wuxi-Singapore Industrial Park, Wuxi, Jiangsu, P.R.C.
214028 (hereinafter referred to as STWX), SEAGATE MICROELECTRONICS LIMITED, a
Scotland corporation with its principal business office at MacIntosh Road,
Kirkton Campus, Livingston EH54 7BW, Scotland (hereinafter referred to as SME),
and SEAGATE PERIPHERALS, INC., a U.S. corporation with its principal business
office at 3081 Zanker Road, San Jose, California 95134-2128 (hereinafter
referred to as SPI) (the foregoing sometimes referred to herein individually as
a "Participant" and collectively as the "Participants") agree as follows:

         WHEREAS the competition in the disc drive and disc drive components
industry continues to escalate at a rapid pace;

         WHEREAS to remain competitive, the Participants must make substantial
investments each year to improve and develop (1) products, including components,
and (2) manufacturing processes;

         WHEREAS the rapid pace of technological advancement in the disc drive
and disc drive components industry dictates that technological developments
generally have a useful life of three years or less;

         WHEREAS the Participants agree that a joint effort is absolutely
necessary to minimize duplication of effort, reduce overall R&D costs and
expenditures, and develop new applications and businesses;

         WHEREAS STUS, STIC, STIR, STCL, and STWX have entered into a Research
and Development Cost Sharing Agreement and Subgroup Cost Sharing Agreement (the
"1995 Cost Sharing Agreements") effective as of July 1, 1995 whereby each party
pooled its resources for the purpose of conducting research and development in
the field of disc drives and disc drive components, and shared the risks and
costs of such research and development activity on the

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basis of the relative benefits the parties anticipated each would receive from
the exploitation of intangible property received therefrom;

         WHEREAS STUS and SME have entered into a Research and Development
Agreement effective as of July 1, 1990 (the " 1990 Research & Development
Agreement"), whereby SME agreed to perform ongoing research, development and
engineering work relating to integrated circuit semiconductor devices for disc
drive printed circuit boards and that the technology would be co-owned by STUS
and its affiliates pursuant to their cost-sharing agreement;

         WHEREAS on February 2, 1996, STUS completed the acquisition of SPI and
its subsidiaries in a transaction accounted for as a pooling of interests and,
as a result thereof, the Participants desire to include SPI and certain of its
affiliates in the joint R&D effort contemplated herein;

         WHEREAS the Participants have agreed to modify the 1995 Cost Sharing
Agreements and the 1990 Research & Development Agreement according to the terms
and conditions memorialized in that certain memorandum of June 28, 1996
("Memorandum") and intend that this Disc Drive Research and Development Cost
Sharing Agreement (the " Agreement") reflect the terms and conditions described
in the Memorandum;

         WHEREAS STUS, STIC, STIR, STCL, STWX, and SME intend that this
Agreement shall terminate and supersede the 1995 Cost Sharing Agreements and the
1990 Research & Development Agreement; and

         WHEREAS the Participants intend that each Participant will have certain
rights to use and exploit such intangible property in their respective
territories, as such territories are assigned pursuant to this Agreement, but
that legal title to such property will be held in the name of STUS solely for
purposes of protecting each Participant's intellectual property rights;

         NOW, THEREFORE, IT IS HEREBY AGREED: That in view of the foregoing
objectives a cost sharing agreement among the Participants is necessary and, in
accord with certain legal and tax requirements, shall be entered into under the
regulations promulgated under Section 482 of the Internal Revenue Code of the
USA with terms and conditions as follows:

SECTION I - DESCRIPTION OF R&D

1.1      The term "R&D" shall include all research and development activities
         performed by the Participants after the effective date of this
         Agreement concerning disc drives and components and their manufacture,
         including but not limited to (i) basic research, (ii) product-specific
         and component-specific development, (iii) creation of improvements,
         adaptations, or other modifications to existing products and
         components, and (iv) design or improvement of manufacturing processes
         and process technology, but shall exclude all research and development
         activity concerning software designed and manufactured for sale to
         third parties by Seagate Software, Inc. and its affiliates and all
         research and development activities in the area of tape drives and tape
         drive manufacturing.

1.2      R&D shall include all R&D relating to Developed Intangible Property.

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1.3      R&D shall include any acquisition of Developed Intangible Property by
         purchase, license, services agreement, or otherwise. In that case, the
         amount paid to acquire the Developed Intangible Property will be
         treated as R&D Expenditures of the party incurring the expense in the
         accounting period in which the expense is paid.

1.4      R&D may be performed at any Participant location.

1.5      The Participants shall each year identify those costs and expenditures
         relating to R&D as defined in this Section I in accordance with the
         definition of R&D Expenditures set forth in subparagraph 2.2(A) below.
         In making such identification the Participants shall review R&D,
         engineering, quality control and any other relevant departments to
         identify the pool of R&D costs to be shared without regard to the
         potential success or failure of such R&D.

SECTION II - COST SHARING

2.1      The Participants have determined that the relative amounts of their
         Adjusted Income Before Tax, as determined under subparagraph 2.2(F)
         below, is the most reliable basis upon which to measure each
         Participant's anticipated benefits to be derived from the Developed
         Intangible Property.

2.2      DEFINITIONS

         (A)   "R&D Expenditures" shall mean costs associated with R&D
               activities as defined in Section I above including, but not
               limited to, the following costs incurred by a Participant
               pursuant to this Agreement:

               (i)    Direct costs as determined under U.S. generally accepted
                      accounting principles ("GAAP");

               (ii)   Indirect costs incurred by supporting cost centers
                      properly allocable to the R&D activities;

               (iii)  Amounts properly chargeable to a Participant by a Related
                      Party in connection with the R&D activities;

               (iv)   Amounts paid by any Participant for the acquisition, by
                      purchase, license, development, services agreement, or
                      otherwise, of Developed Intangible Property.

         (B)   "Related Party" shall mean any legal entity owned or controlled,
               directly or indirectly, by, or under common control with the
               Participants. For purposes of this Agreement, control shall mean
               the ownership of more than fifty percent (50%) of the voting
               interests in any legal entity.

         (C)   "Participant Specific R&D Expenditures" shall mean R&D
               Expenditures with respect to any development specifically
               identified in writing prior to the period in which such R&D
               Expenditures are incurred and determined to have potential
               benefits solely for one Participant.

         (D)   "Allocable R&D Expenditures" shall mean the total R&D
               Expenditures of all Participants less the sum of any Participant
               Specific R&D Expenditures and each Participant's Minimum Payment.

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         (E)   "Cost Share" of a Participant shall mean the sum of (i) the
               Participant's Participant Specific R&D Expenditures, (ii) the
               Participant's Minimum Payment, and (iii) the portion of the
               Allocable R&D Expenditures allocated to the Participant under
               paragraph 2.3 below.

         (F)   "Adjusted Income Before Tax" shall mean income before taxes
               calculated according to GAAP, but without regard to the following
               items:

               (i)    R&D Expenditures,

               (ii)   Royalties or other consideration received for the transfer
                      to a Related Party of any Developed Intangible Property,

               (iii)  Restructuring costs as defined by GAAP,

               (iv)   Interest income and interest expense, whether or not
                      identified as such for financial accounting purposes,

               (v)    Extraordinary income and expense items as defined by GAAP,
                      and

               (vi)   Amortization of research and development costs as defined
                      by GAAP.

         (G)   "Base Period Income" of a Participant shall mean the sum of such
               Participant's Adjusted Income Before Tax for the three prior
               fiscal years. If any Participant experiences annual losses during
               any or all of the first three years of its operations, such loss
               years will be disregarded for purposes of determining such
               Participant's Base Period Income.

         (H)   "Cost Share Ratio" of a Participant shall mean, with respect only
               to Participants having a positive Base Period Income, such
               Participant's Base Period Income over the sum of the Base Period
               Incomes of all Participants having positive Base Period Incomes.
               Cost Share Ratios shall be redetermined each fiscal year.

         (I)   "Minimum Payment" shall mean the sum of U.S. $1,000,000.00.

         (J)   "Developed Intangible Property" shall mean intangible property as
               described in paragraph 3.1 below.

2.3      ALLOCATION OF R&D EXPENDITURES

         (A)   Except as otherwise provided in this subparagraph (A), each
               Participant shall be required annually to pay the Minimum
               Payment. For the first year in which a company becomes a
               Participant under this Agreement, unless special circumstances
               indicate otherwise, the Minimum Payment shall be prorated
               according to the number of days in the fiscal year that the
               company is a Participant. Likewise, for the year in which a
               Participant ceases to be a Participant under this Agreement prior
               to the end of a fiscal year, unless special circumstances
               indicate otherwise, the Minimum Payment shall be prorated
               according to the number of days in the fiscal year that the
               Participant was a Participant.

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         (B)   In addition to the Minimum Payment specified in subparagraph (A)
               above, each Participant shall be required annually to pay the
               Participant Specific R&D Expenditures reasonably allocated to it.

         (C)   In addition to the amounts specified in subparagraphs (A) and (B)
               above, each Participant shall be required annually to pay the
               amount determined by multiplying such Participant's Cost Share
               Ratio times the Allocable R&D Expenditures. In connection with
               determining the amounts payable under this subparagraph (C), each
               year STUS shall calculate such amounts in the manner described
               below and report them to each Participant:

               (i)    Calculate the total R&D Expenditures of all Participants.

               (ii)   Deduct the Minimum Payment of each Participant from the
                      total R&D Expenditures under clause (i) above.

               (iii)  Deduct the Participant Specific R&D Expenditures of each
                      Participant from the total R&D Expenditures under clause
                      (i) above.

               (iv)   The sum of clauses (i), (ii) and (iii) represents the
                      Allocable R&D Expenditures.

               (v)    Calculate a Cost Share Ratio for the Participants with
                      positive Base Period Incomes.

               (vi)   Multiply each Participant's Cost Share Ratio by the
                      Allocable R&D Expenditures.

2.4      If it is determined that the identification of R&D Expenditures under
         Section I above or of the Participants' respective Cost Shares was
         incorrect due to the presence of mechanical or mathematical errors or
         the development of new data which, when used, changes the results of
         such identifications, STUS shall make adjustments as necessary to
         correct the errors in the next periodic calculation and allocation of
         R&D Expenditures following confirmation of the discrepancy.

2.5      Until the Participants agree to modify the methodology used for
         determining each Participant's Cost Share, such methodology shall
         remain in effect.

SECTION III - PROPERTY RIGHTS OF PARTICIPANTS TO INTANGIBLES

3.1      IN GENERAL

         While the Participants recognize that R&D Expenditures will not always
         result in marketable products, including components, or usable process
         technology, the rights to the following intangible property:

         (A)   Patents, formulas, designs, drawings, patterns, processes,
               inventions, know-how relating to manufacturing and processing or
               similar property; or

         (B)   Trade names, trademarks, copyrights, photographs, sales aids or
               similar property,

         developed or acquired by one or more Participants pursuant to this
         Agreement shall be used as defined in paragraphs 3.2 and 3.3
         below.

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3.2      GEOGRAPHICAL RIGHTS - MANUFACTURE AND USE

         Except to the extent that STUS and STIC have agreed in this Agreement
         to grant part of their rights in the Developed Intangible Property to
         certain Related Parties, STUS and STIC shall have exclusive rights
         within their respective territories in such Developed Intangible
         Property as set forth in subparagraphs (A) and (B) below.

         (A)   STUS has the exclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               exclusive "right to use" any intangible property described in
               subparagraph 3.1 (A) above in its geographical area of influence,
               i.e., the United States of America.

         (B)   STIC has the exclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               exclusive "right to use" any intangible property described in
               subparagraph 3.1(A) above in its geographical area of influence,
               i.e., Southeast Asia, the Indian Subcontinent and the China
               Basin, including Australia and New Zealand.

         (C)   STUS and STIC have the nonexclusive "right to manufacture" any
               product, including components, developed under this Agreement and
               the nonexclusive "right to use" any intangible property described
               in paragraph 3.1(A) above in areas other than those described in
               subparagraphs 3.2(A) and 3.2(B).

         (D)   SPI has the nonexclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               nonexclusive "right to use" any intangible property described in
               subparagraph 3.1(A) above everywhere except those areas described
               in subparagraph 3.2(B).

         (E)   STIR has the nonexclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               nonexclusive "right to use" any intangible property described in
               subparagraph 3.1(A) above in the United Kingdom.

         (F)   STCL has the nonexclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               nonexclusive "right to use" any intangible property described in
               subparagraph 3.1 (A) above in Ireland.

         (G)   STWX has the nonexclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               nonexclusive "right to use" any intangible property described in
               subparagraph 3.1 (A) above in China.

         (H)   SME has the nonexclusive "right to manufacture" any product,
               including components, developed under this Agreement and the
               nonexclusive "right to use" any intangible property described in
               subparagraph 3.1(A) above in the United Kingdom.

3.3      GEOGRAPHICAL RIGHTS - SALES AND MARKETING

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         (A)   The Participants shall have the "right to sell and market" all
               products, including components, manufactured by each Participant
               under paragraph 3.2 above and the "right to use" the intangible
               property described in subparagraph 3.1(B) above worldwide without
               restriction or limitation.

         (B)   The "right to sell and market" includes the right to sell to
               controlled, affiliated or related entities worldwide without
               restriction or limitation.

3.4      MANUFACTURING OR PURCHASE OF COMPONENTS

         Notwithstanding anything to the contrary in this Section III, each
         Participant shall have the perpetual and nonexclusive right to contract
         for the manufacture or purchase of any component parts of disc drives
         or of other computer peripheral equipment in any jurisdiction.

3.5      INTANGIBLE PROPERTY ACQUIRED PRIOR TO THE EFFECTIVE DATE OF THIS
         AGREEMENT

         To the extent that a Participant is permitted to use intangible
         property similar to that described in paragraph 3.1 above that was
         developed prior to the time the Participant acquired rights to such
         intangible property through participation in this or any other
         agreement, the Participant's right to use such property shall be dealt
         with in a separate agreement that may involve a license, a capital
         contribution or any other appropriate transfer device.

3.6      TRANSFERS TO RELATED PARTIES

         (A)   Any Participant may, without the consent of any other
               Participant, transfer all or any portion of its rights and
               interests as described in paragraphs 3.2 and 3.3 above to one or
               more Related Parties by license, contribution to capital, or
               other appropriate transfer device. Specifically, the Participants
               acknowledge that STIC's Cost Share will be calculated with
               reference to the rights for Malaysia and Thailand, and that STIC
               intends to make such rights available to its subsidiaries: Penang
               Seagate Industries (M) Sdn. Bhd., Perai Seagate Storage Products
               Sdn. Bhd., and Seagate Technology (Thailand) Limited (hereinafter
               collectively referred to as the "Subsidiaries"). STIC intends to
               seek compensation for the applicable payments of Cost Share
               relating to the rights made available to the Subsidiaries, and it
               is understood that such compensation may be made through cash
               payment or the issuance of shares to STIC, or through any other
               appropriate means. Accordingly, STIC will treat payments of Cost
               Share relating to such Malaysian and Thailand rights as neither
               an expense nor a reduction in its earnings and profits. The
               Minimum Payments and Base Period Incomes otherwise attributable
               to the Subsidiaries will be included with the Minimum Payment and
               Base Period Income of STIC for purposes of determining STIC's
               Cost Share.

         (B)   Notwithstanding any other provisions of this paragraph 3.6, STUS
               may, from time to time and by agreement with STIC and the
               Subsidiaries, receive cash payments

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               directly or indirectly from the Subsidiaries with respect to the
               portion of the Cost Share payable by STIC relating to rights in
               Malaysia and Thailand.

3.7      RIGHTS TO MODIFY OR ADAPT

         All Participants shall have the right to modify, translate, localize,
         improve, and adapt the Developed Intangible Property pursuant to this
         Agreement.

3.8      LEGAL TITLE TO PROPERTY

         Notwithstanding anything in this Agreement to the contrary, the
         Participants agree that legal title to the Developed Intangible
         Property should rest with one Participant solely in order to most
         effectively protect the Developed Intangible Property by making it
         easier to prosecute claims against infringers, and agree that STUS
         shall remain the sole owner of the legal title to the Developed
         Intangible Property.

3.9      LICENSE OF DEVELOPED INTANGIBLE PROPERTY

         Notwithstanding the allocation of rights in this Section III, subject
         to the consent of all the Participants, STUS shall have the sole right
         to license Developed Intangible Property to any person not a Related
         Party. Any such license shall grant nonexclusive rights only. Such
         amounts received by STUS shall reduce the Allocable R&D Expenditures
         for the fiscal year in which such amounts are accrued.

3.10     DISCLOSURE

         (A)   The Participants are not to disclose any proprietary information
               to third parties, other than to Related Parties, without the
               written consent of STUS and STIC. Pursuant to this Section III,
               the Participants agree that no written consent is required for a
               contribution or assignment of rights to a Related Party, or any
               license to, contract manufacturing relationship with, or similar
               transaction with a Related Party. A Participant's nondisclosure
               obligation under this paragraph 3.10 shall not apply if, and to
               the extent that, such information (i) passes into the public
               domain through no fault of the Participant; (ii) is disclosed to
               the Participant by a third party that is under no obligation of
               nondisclosure to the Participant; or (iii) is required to be
               disclosed under the laws, regulations or orders of the United
               States or any other country.

         (B)   During the term of this Agreement, the Participants agree to and
               shall make available to each other all Developed Intangible
               Property for the purpose of enabling each of the other
               Participants to undertake and continue their respective
               participation in this Agreement and to manufacture and market
               products. Developed Intangible Property may be furnished in
               documentary and/or consultative form at such time and in such
               manner as may be mutually convenient to the Participants hereto.

         (C)   Making available Developed Intangible Property under this
               paragraph 3.10 shall not constitute any release or waiver of
               rights of a Participant in its Developed

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               Intangible Property. To the extent required or appropriate to
               establish ownership of Developed Intangible Property in
               accordance with paragraphs 3.1 through 3.9 above, documents and
               instruments of conveyance respecting such Developed Intangible
               Property shall be executed and exchanged among the Participants.
               The absence of a written document shall not limit the rights of
               the Participants to such Developed Intangible Property.

         (D)   The Participants shall take reasonable precautions to maintain
               the secret and confidential nature of any Developed Intangible
               Property made available to each of them hereunder, including the
               maintenance of agreements executed by their employees to whom
               disclosure thereof may be made containing appropriate
               undertakings to maintain the confidential and proprietary nature
               thereof, as may be necessary or appropriate to protect the rights
               and interest of the Participants in such Developed Intangible
               Property. This subparagraph 3. 10(D) shall survive termination of
               this Agreement, regardless of the reason for such termination.

         (E)   The provisions of this paragraph 3.10 shall not imply or be
               construed as limiting the rights of any Participant in and to
               intangible property which has been developed or acquired by such
               Participant prior to the effective date of this Agreement.

3.11     ADDITIONAL PARTICIPANTS

         (A)   The Participants agree that other parties can be admitted and
               participate in this Agreement under the terms and conditions
               hereof.

         (B)   Any such additional Participant shall only receive rights,
               however described by separate agreement or modification to this
               Agreement, to use Developed Intangible Property that is developed
               after the date on which such additional Participant is admitted.

SECTION IV - PAYMENT

4.1      Each Participant having a positive Base Period Income shall accrue an
         estimated monthly Cost Share amount determined by multiplying such
         Participant's Cost Share Ratio times the R&D Expenditures for the prior
         fiscal year, and dividing by twelve. Each Participant having a negative
         Base Period Income shall accrue a monthly Cost Share amount equal to
         one-twelfth of the Minimum Payment. Such monthly Cost Share amounts
         shall be paid, in U.S. dollars, debt instrument, property, or other
         valuable consideration within 90 days after month end, but subject to
         the terms of paragraphs 4.2 through 4.9 below.

4.2      The amount payable by each Participant under paragraph 4.1 above shall
         be net of such Participant's actual R&D Expenditures, if any, incurred
         during such month. Any R&D Expenditures incurred by the Subsidiaries
         shall be combined with STIC's R&D Expenditures for purposes of the
         netting required under this paragraph 4.2.

4.3      If any Participant is required to make a net payment under paragraph
         4.2 above, and if not prohibited under local law or the business
         practices of such Participant, such net payment

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         can be offset or netted against other amounts owed to such Participant
         by the recipient of such payment.

4.4      If any Participant is a net payor under paragraph 4.2 above, and if it
         is deemed appropriate under the circumstances, payment can be made in
         the form of an adjustment to the transfer price of products or service
         charges between any appropriate Related Party.

4.5      If any Participant is a net payor under paragraph 4.2 above, payment,
         in fact or in kind, must be made during the timeframes required by
         Section 482 or 956 of the Internal Revenue Code of the USA, as
         applicable. The Participants agree to hold STUS harmless with respect
         to imputed interest income under Section 482 in the event of
         noncompliance with this paragraph 4.5.

4.6      If any Participant is a net payor under paragraph 4.2 above, and if it
         is deemed appropriate under the circumstances, payment for R&D
         Expenditures can be in the form of a dividend. For U.S. tax purposes,
         such a designation is consistent with the payment concepts contained in
         closing agreements under Revenue Procedure 65-17 and Section 482 of the
         Internal Revenue Code of the USA.

4.7      If the relevant government authority or authorities subsequently
         determine that any Participant did not pay an appropriate Cost Share in
         a year for the benefits received under this Agreement, the Participants
         agree that:

         (A)   If in that year any dividends were paid by such Participant, all
               or part of such dividend shall be treated as a payment of such
               Participant's revised obligation in recognition of the fact that,
               if the revised obligation under this Agreement had been known in
               that year, such obligation would have been paid prior to such
               dividend, and

         (B)   If after taking into account such dividend, it is finally
               determined that a Participant still has not satisfied its revised
               obligations, such Participant, if able to do so, shall pay the
               difference plus interest.

4.8      During the last quarter of each fiscal year , to the extent such
         information is available, STUS shall calculate each Participant's Cost
         Share amount based on the actual R&D Expenditures incurred during such
         fiscal year . Such amount shall be subtracted from the total estimated
         Cost Share accrued by the Participant under paragraph 4.1 above and any
         difference shall be booked as an adjustment in the current period. Any
         such adjustment shall be subject to the payment terms specified in
         paragraph 4.1 above. During the first quarter of each fiscal year, STUS
         shall calculate each Participant's final Cost Share amount for the
         preceding fiscal year, and any necessary adjustments shall be booked in
         the current period.

4.9      Any amount in dispute shall be resolved by agreement of all the
         Participants, or, if necessary, submitted to arbitration.

SECTION V - MODIFICATION

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5.1      The Participants agree to modify this Agreement as necessary to take
         into account changes in economic conditions, business operations and
         practices of the Participants, and the ongoing development of
         intangibles, or as necessary to conform the Agreement to the tax laws
         applicable to the Participants. The Agreement may not be altered or
         amended except by a written instrument signed by the authorized
         corporate officers of the Participants. Any oral modification or change
         in the terms and conditions contained herein shall have no effect.

SECTION VI - TERMINATION, BREACH, FORCE MAJEURE

6.1      The Participants may, at any time, mutually agree to terminate this
         Agreement, such termination to be effective at such time as they deem
         appropriate.

6.2      This Agreement can be terminated by any Participant by giving 60 days
         notice prior to the commencement of any fiscal year or if a substantive
         change in the law occurs in any jurisdiction in which the Participants
         are engaged in a substantial business activity that makes it
         impractical to continue the business or imposes restrictions or
         requirements that have an adverse effect on the business.

6.3      Failure to perform any of the terms and conditions herein shall be
         deemed a material breach and the aggrieved Participant may terminate
         all or part of the Agreement by giving 60 days notice; provided,
         however, that a Participant can prevent termination if it can cure or
         correct any alleged breach during the 60 day period. The 60 day period
         shall commence on the date the breach is communicated to the offending
         Participant. Termination of this Agreement shall not prejudice any
         claim for damages or relieve any Participant from making payments due
         or owing.

6.4      If any of the Participants hereto shall be prevented or delayed from
         performing any of the obligations herein by reason of strike, threat of
         imminent strike, fire, flood or other act of nature, war (declared or
         undeclared) or insurrection or mob violence, regulation (formal or
         informal) of any government or regulatory body, or the failure of any
         governmental authority to issue any permit, license or like
         authorization within a reasonable time after application therefor, then
         and only in such event, such failure to perform shall not be deemed a
         breach of this Agreement; provided that the Participant so delayed
         shall give notice in writing to the other Participant setting out the
         particulars of the cause thereof and the date upon which the same
         arose, and shall give like notice following the date upon which such
         cause ceased to exist. The Participants also agree to use reasonable
         diligence to remove any cause that interfered with the performance of
         the terms and conditions of this Agreement.

6.5      Any termination as described in paragraphs 6.2, 6.3 or 6.4 above will
         be a termination only with respect to the terminating Participant.

6.6      In the event that this Agreement is terminated with respect to a
         Participant, such Participant will retain all rights and interests in
         the property described in paragraph 3.2 above that had been obtained up
         to the date of such termination. Such Participant will still

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         be bound by the terms of this Agreement and must fulfill the
         obligations listed in paragraph 2.3 above.

6.7      A terminated Participant may assign rights that it will have obtained
         up to the date of the Participant's termination to one or more other
         Participants if the terminated Participant and the Participant or
         Participants to whom such rights are assigned agree that the terminated
         Participant will be paid an arm's length price for the rights so
         transferred. The provisions contained in Section IV of this Agreement
         will apply in the event that any such assignment under this paragraph
         results in an obligation to make an arm's length payment therefore.

SECTION VII - ASSIGNMENT

7.1      Except for assignments or transfers to a Related Party as provided in
         paragraph 3.10, this Agreement may not be assigned or transferred in
         any way by any Participant without the prior written consent of each of
         the other Participants, and such assignment or other transfer shall
         then be effective only upon written agreement of the assignee or
         transferee to assume and be bound by the obligations and provisions of
         this Agreement to the same extent it would have been bound had such
         assignee or transferee been an original party to this Agreement.

7.2      This Agreement shall be binding upon and inure to the benefit of any
         Related Party which is the successor to substantially all of the assets
         and business of any Participant.

SECTION VIII - DOMINANT LAW

8.1      This Agreement shall be governed and construed in accordance with the
         laws of the United States of America and the State of California, USA.

8.2      In the event that any term or part of this Agreement is held invalid or
         unenforceable by a court or administrative agency having proper
         jurisdiction, it shall not affect the validity and enforceability of
         the other terms.

SECTION IX - RISKS

9.1      The Participants shall each bear their respective risks undertaken in
         this Agreement. Each Participant shall bear its Cost Share regardless
         of whether Developed Intangible Property is in fact produced by this
         Agreement or the Participants realize any profit from any Developed
         Intangible Property.

SECTION X - RECORDS

10.1     The Participants shall each maintain written records for thirteen (13)
         years, in sufficient detail to permit ready verification of the
         computation of R&D Expenditures and the allocations of such costs. Such
         records shall be made available for such inspection, audit and
         certification as may be reasonably necessary.

SECTION XI - CURRENCY

<PAGE>

                                                                              13

11.1     In determining R&D Expenditures hereunder, any expenses incurred in
         currencies other than the U.S. dollar shall be translated into U.S.
         dollars at the prevailing corporate booking rate used by STUS during
         the period in which the revenue or expense occurred.

SECTION XII - GOVERNMENTAL REGULATION

12.1     GENERAL

         No Participant shall transfer either directly or indirectly any
         technical information furnished to it or arising under this Agreement,
         or any of the direct products of the use of such technical information,
         in contravention of any law or regulation of the country of origin of
         such technical information or product.

12.2     U.S. EXPORT CONTROLS

         Without limiting the generality of paragraph 12.1 above, the
         Participants understand and acknowledge that the Developed Intangible
         Property and all technical data (as defined in 15 C.F.R. part 779 of
         the U.S. Export Administration Regulations) related thereto are subject
         to export control by the United States Government. The Participants
         shall comply strictly with all requirements of United States laws and
         regulations related to such Developed Intangible Property and related
         technical data, including the Export Administration Regulations, 15
         C.F.R. Parts 768-799, and all licenses and authorizations issued under
         such laws and regulations, and shall fully cooperate with STUS in
         securing any export licenses and authorizations required thereby. In
         furtherance of the foregoing obligation, the Participants hereby
         specifically agree that, without the prior written authorization of the
         U.S. Commerce Department, the Participants will not, and will cause
         their representatives, employees, agents, contractors and customers to
         agree not to (i) export, reexport, divert or transfer any Developed
         Intangible Property or related technical data, or any direct product of
         such Developed Intangible Property or technical data, to any
         destination, company or person prohibited by the Export Administration
         Regulations, including the Table of Denial Orders, or (ii) disclose any
         such Developed Intangible Property or related technical data to any
         national of any country when such disclosure is prohibited by the
         Export Administration Regulations. The Participants shall make their
         records available to STUS upon reasonable request in order to permit
         STUS to confirm compliance by all Participants with their obligations
         as set forth in this paragraph 12.2. The obligations of the
         Participants as set forth in this paragraph 12.2 shall survive
         expiration or termination of this Agreement for any reason whatsoever.

SECTION XIII - NOTICES

All written communications and notices with respect to this Agreement shall be
sent to the Participants at the following addresses:

To STUS:                920 Disc Drive
                        Scotts Valley, California  95067-0360
                        U.S.A.
                  Fax:  408-438-8931
                Attn.:  Vice President and Treasurer

<PAGE>

                                                                              14

To STIC:                Ugland House
                        South Church Street
                        Georgetown, Grand Cayman
                        Cayman Islands, B.W.I.
                  Fax:  809-949-8080
                Attn.:  Director

To STIR:                Ugland House
                        South Church Street
                        Georgetown, Grand Cayman
                        Cayman Islands, B.W.I.
                  Fax:  809-949-8080
                Attn.:  Director

To STCL:                Ugland House
                        South Church Street
                        Georgetown, Grand Cayman
                        Cayman Islands, B.W.I.
                  Fax:  809-949-8080
                Attn.:  Director

To: STWX:               Lot 106
                        Xing Chuanger Lu
                        Wuxi-Singapore Industrial Park
                        Wuxi, Jiangsu
                        P.R.C. 214028
                  Fax:  011-86-510-521-9880
                Attn.:  General Manager

To SME:                 MacIntosh Road
                        Kirkton Campus
                        Livingston EH54 7BW
                        Scotland
                  Fax:  011-44-1506-478032
                 Attn:  General Manager

<PAGE>

                                                                              15

To SPI:                 3081 Zanker Road
                        San Jose, California  95134-2128
                  Fax:  408-438-8931
                Attn.:  Vice President and Treasurer

or such other address as such Participant may from time to time notify the other
Participants in writing.

IN WITNESS WHEREOF, the Participants hereto have signed and executed this
Agreement.

                                SEAGATE TECHNOLOGY, INC.

                                By:      /s/  James A. Taylor
                                       -----------------------------------------
                                       James A. Taylor

                                Its: Vice President Finance

                                SEAGATE TECHNOLOGY INTERNATIONAL

                                By:      /s/  Ronald D. Verdoorn
                                       -----------------------------------------
                                       Ronald D. Verdoorn

                                Its: Vice President

                                SEAGATE TECHNOLOGY (IRELAND)

                                By:      /s/  Donald L. Waite
                                       -----------------------------------------
                                       Donald L. Waite

                                Its:  Vice President

<PAGE>

                                                                              16

                                SEAGATE TECHNOLOGY (CLONMEL)

                                By:      /s/  Alan F. Shugart
                                       -----------------------------------------
                                       Alan F. Shugart

                                Its:  President

                                SEAGATE TECHNOLOGY INTERNATIONAL
                                (WUXI) CO. LTD.

                                By:      /s/  Ronald D. Verdoorn
                                       -----------------------------------------
                                       Ronald D. Verdoorn

                                Its:  Director and Chairman

                                SEAGATE MICROELECTRONICS LIMITED

                                By:      /s/  Donald L. Waite
                                       -----------------------------------------
                                       Donald L. Waite

                                Its:  Vice President Finance

                                SEAGATE PERIPHERALS, INC.

                                By:      /s/  Thomas F. Mulvaney
                                       -----------------------------------------
                                       Thomas F. Mulvaney

                                Its:  Executive Vice President

<PAGE>

                                                                              17

                         WITHDRAWAL FROM THE DISC DRIVE
                 RESEARCH AND DEVELOPMENT COST SHARING AGREEMENT
         WITH RESPECT TO SEAGATE TECHNOLOGY INTERNATIONAL (WUXI) CO LTD.

This agreement is entered into by and among:

Seagate Technology, Inc., a U.S. corporation with its principal business office
at 920 Disc Drive, Scotts Valley, California 95066 U.S.A.,

Seagate Technology International, a Cayman Islands corporation with its
registered office at Ugland House, South Church Street, Georgetown, Grand
Cayman, Cayman Islands, B.W.I.,

Seagate Technology (Ireland), a Cayman Islands corporation with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I.,

Seagate Technology (Clonmel), a Cayman Islands corporation with
its registered office at Ugland House, South Church Street, Georgetown, Grand
Cayman, Cayman Islands, B.W.I.,

Seagate Technology International (Wuxi) Co. Ltd., a China corporation with its
principal business office at Lot 106, Xing Chuanger Lu, Wuxi-Singapore
Industrial Park, Wuxi, Jiangsu, P.R.C. 214028,

Seagate Microelectronics Limited, a Scotland corporation with its principal
business office at MacIntosh Road, Kirkton Campus, Livingston EH54 7BW, Scotland
(hereinafter referred to collectively as the "Participants.")

WHEREAS, Seagate Technology International (Wuxi) Co Ltd. wishes to withdraw from
the Disc Drive Research and Development Cost Sharing Agreement dated June 29,
1996 and

WHEREAS, the other participants agree to this withdrawal,

Now therefore, the Participants hereby agree:

1) Seagate Technology International (Wuxi) Co Ltd. hereby withdraws from the
Disc Drive Research and Development Cost Sharing Agreement,

2) The withdrawal shall be effective as of January 3, 1998, and

3) The Participants agree to waive the termination notice as required in Section
6.2 of the Agreement.

<PAGE>

                                                                              18

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized signatories.

                                    SEAGATE TECHNOLOGY, INC.

                                    By:  /s/  Charles C. Pope
                                       -----------------------------------------
                                    Charles C. Pope
                                    Title:  Senior Vice President

                                    SEAGATE TECHNOLOGY INTERNATIONAL

                                    By:  /s/  Donald L. Waite
                                       -----------------------------------------
                                    Donald L. Waite
                                    Title:  Vice President

                                    SEAGATE TECHNOLOGY (IRELAND)

                                    By:  /s/  Donald L. Waite
                                       -----------------------------------------
                                    Donald L. Waite
                                    Title:  Vice President

                                    SEAGATE TECHNOLOGY (CLONMEL)

                                    By:  /s/  William D. Watkins
                                       -----------------------------------------
                                    William D. Watkins
                                    Title:  Vice President

                                    SEAGATE MICROELECTRONICS LIMITED

                                    By:  /s/  Charles C. Pope
                                       -----------------------------------------
                                    Charles C. Pope
                                    Title:  Vice President

                                    SEAGATE TECHNOLOGY INTERNATIONAL
                                    (WUXI) CO. LTD.

                                    By:  /s/  William D. Watkins
                                       -----------------------------------------
                                    William D. Watkins
                                    Title:  Legal Representative

<PAGE>

                                                                              19

                 TERMINATION OF PARTICIPATION IN THE DISC DRIVE
                 RESEARCH AND DEVELOPMENT COST SHARING AGREEMENT
                  WITH RESPECT TO SEAGATE TECHNOLOGY (CLONMEL)

This agreement is entered into by and among:

Seagate Technology, Inc., a Delaware corporation with its principal business
office at 920 Disc Drive, Scotts Valley, California 95066 U.S.A.,

Seagate Technology International, a Cayman Islands corporation with its
registered office at Ugland House, South Church Street, Georgetown, Grand
Cayman, Cayman Islands, B.W.I.,

Seagate Technology (Ireland), a Cayman Islands corporation with its registered
office at U gland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I.,

Seagate Technology International (Wuxi) Co. Ltd., a China
corporation with its principal business office at Lot 106, Xing Chuanger Lu,
Wuxi-Singapore Industrial Park, Wuxi, Jiangsu, P.R.C. 214028,

Seagate Technology (Clonmel), a Cayman Islands corporation with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I., and

Seagate Microelectronics Limited, a Scotland corporation with its principal
business office at MacIntosh Road, Kirkton Campus, Livingston EH54 7B W,
Scotland (hereinafter referred to collectively as the "Participants.")

WHEREAS, Seagate Technology (Clonmel) wishes to terminate its participation in
the Disc Drive Research and Development Cost Sharing Agreement dated June 29,
1996 and

WHEREAS, the other Participants agree to this termination,

Now therefore, the Participants hereby agree:

1)   Seagate Technology (Clonmel) terminates its participation in the Disc Drive
     Research and Development Cost Sharing Agreement,

2)   The termination shall be effective as of January 31,1998, and

3)   The Participants agree to waive the termination notice as required in
     Section 6.2 of the Agreement.

<PAGE>

                                                                              20

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized signatories.

                               SEAGATE TECHNOLOGY, INC.
                               By:  /s/  Charles C. Pope
                                  ----------------------------------------------
                               Charles C. Pope
                               Title:  Senior Vice President

                               SEAGATE TECHNOLOGY INTERNATIONAL
                               By:  /s/  Donald L. Waite
                                  ----------------------------------------------
                               Donald L. Waite
                               Title:  Vice President

                               SEAGATE TECHNOLOGY (IRELAND)
                               By:  /s/  Donald L. Waite
                                  ----------------------------------------------
                               Donald L. Waite
                               Title:  Vice President

                               SEAGATE TECHNOLOGY (CLONMEL)
                               By:  /s/  William D. Watkins
                                  ----------------------------------------------
                               William D. Watkins
                               Title:  Vice President

                               SEAGATE MICROELECTRONICS LIMITED
                               By:  /s/  Charles C. Pope
                                  ----------------------------------------------
                               Charles C. Pope
                               Title:  Vice President

                               SEAGATE TECHNOLOGY INTERNATIONAL (WUXI) CO. LTD.
                               By:  /s/  William D. Watkins
                                  ----------------------------------------------
                               William D. Watkins
                               Title:  Legal Representative

<PAGE>

                                                                              21

                         WITHDRAWAL FROM THE DISC DRIVE
                 RESEARCH AND DEVELOPMENT COST SHARING AGREEMENT
                  WITH RESPECT TO SEAGATE TECHNOLOGY (CLONMEL)

This agreement is entered into by and among:

Seagate Technology, Inc., a U.S. corporation with its principal business office
at 920 Disc Drive, Scotts Valley, California 95066 U.S.A.,

Seagate Technology International, a Cayman Islands corporation with its
registered office at Ugland House, South Church Street, Georgetown, Grand
Cayman, Cayman Islands, B.W.I.,

Seagate Technology (Ireland), a Cayman Islands corporation with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, 8. B.W.I.,

Seagate Technology International (Wuxi) Co. Ltd., a China corporation with its
principal business office at Lot 106, Xing Chuanger Lu, Wuxi-Singapore
Industrial Park, Wuxi, Jiangsu, P.R.C. 214028,

Seagate Technology (Clonmel), a Cayman Islands corporation with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, 8. B.W.I.,

Seagate Microelectronics Limited, a Scotland corporation with its principal
business office at MacIntosh Road, Kirkton Campus, Livingston EH54 78W, Scotland
(hereinafter referred to collectively as the "Participants.")

WHEREAS, Seagate Technology (Clonmel) wishes to withdraw from the Disc Drive
Research and Development Cost Sharing Agreement dated June 29, 1996 and

WHEREAS, the other participants agree to this withdrawal,

Now therefore, the Participants hereby agree:

1)   Seagate Technology (Clonmel) hereby withdraws from the Disc Drive Research
     and Development Cost Sharing Agreement,

2)   The withdrawal shall be effective as of January 31, 1998, and

3)   The Participants agree to waive the termination notice as required in
     Section 6.2 of the Agreement.

<PAGE>

                                                                              22

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized signatories.

                                SEAGATE TECHNOLOGY, INC.
                                By:  /s/  Charles C. Pope
                                   ---------------------------------------------
                                Charles C. Pope
                                Title:  Senior Vice President

                                SEAGATE TECHNOLOGY INTERNATIONAL
                                By:  /s/  Donald L. Waite
                                   ---------------------------------------------
                                Donald L. Waite
                                Title:  Vice President

                                SEAGATE TECHNOLOGY (IRELAND)
                                By:  /s/  Donald L. Waite
                                   ---------------------------------------------
                                Donald L. Waite
                                Title:  Vice President

                                SEAGATE TECHNOLOGY (CLONMEL)
                                By:  /s/  William D. Watkins
                                   ---------------------------------------------
                                William D. Watkins
                                Title:  Vice President

                                SEAGATE MICROELECTRONICS LIMITED
                                By:  /s/  Charles C. Pope
                                   ---------------------------------------------
                                Charles C. Pope
                                Title:  Vice President

                                SEAGATE TECHNOLOGY INTERNATIONAL (WUXI) CO. LTD.
                                By:  /s/  William D. Watkins
                                   ---------------------------------------------
                                William D. Watkins
                                Title:  Legal Representative

<PAGE>

                                                                              23

                         WITHDRAWAL FROM THE DISC DRIVE
                 RESEARCH AND DEVELOPMENT COST SHARING AGREEMENT
                WITH RESPECT TO SEAGATE MICROELECTRONICS LIMITED

This agreement is entered into by and among:

Seagate Technology, Inc., a U.S. corporation with its principal business office
at 920 Disc Drive, Scotts Valley, California 95066 U.S.A.,

Seagate Technology International, a Cayman Islands corporation with its
registered office at Ugland House, South Church Street, Georgetown, Grand
Cayman, Cayman Islands, B.W.I.,

Seagate Technology (Ireland), a Cayman Islands corporation with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I.,

Seagate Microelectronics Limited, a Scotland corporation with
its principal business office at MacIntosh Road, Kirkton Campus, Livingston EH54
7BW, Scotland (hereinafter referred to collectively as the "Participants.")

WHEREAS, Seagate Microelectronics Limited wishes to withdraw from the Disc Drive
Research and Development Cost Sharing Agreement dated June 29, 1996 and

WHEREAS, the other participants agree to this withdrawal,

Now therefore, the Participants hereby agree:

1)   Seagate Microelectronics Limited hereby withdraws from the Disc Drive
     Research and Development Cost Sharing Agreement,

2)   The withdrawal shall be effective as of January 30, 1999, and

3)   The Participants agree to waive the termination notice as required in
     Section 6.2 of the Agreement.

<PAGE>

                                                                              24

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized signatories.

                                     SEAGATE TECHNOLOGY, INC.

                                     By:  /s/  Donald L. Waite
                                        ----------------------------------------
                                     Donald L. Waite
                                     Title:  Executive Vice President and Chief
                                     Administrative Officer

                                     SEAGATE TECHNOLOGY INTERNATIONAL

                                     By:  /s/  Charles C. Pope
                                        ----------------------------------------
                                     Charles C. Pope
                                     Title:  Vice President

                                     SEAGATE TECHNOLOGY (IRELAND)

                                     By:  /s/  Thomas F. Mulvaney
                                        ----------------------------------------
                                     Thomas F. Mulvaney
                                     Title:  Vice President

                                     SEAGATE TECHNOLOGY (CLONMEL)

                                     By:  /s/  Charles C. Pope
                                        ----------------------------------------
                                     Charles C. Pope
                                     Title:  Vice President

<PAGE>

                                                                              25

                         WITHDRAWAL FROM THE DISC DRIVE
                 RESEARCH AND DEVELOPMENT COST SHARING AGREEMENT
                  WITH RESPECT TO SEAGATE TECHNOLOGY (IRELAND)

This agreement is entered into by and among:

Seagate Technology LLC (an assignee of Seagate Technology, Inc.), a Delaware
limited liability company with its principal business office at 920 Disc Drive,
Scotts Valley, California 95066 U.S.A.,

Seagate Technology International, a Cayman Islands company with its registered
office at U gland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I.,

Seagate Technology (Ireland), a Cayman Islands company with its registered
office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman
Islands, B.W.I.,

WHEREAS, Seagate Technology (Ireland) wishes to withdraw from
the Disc Drive Research and Development Cost Sharing Agreement dated June 29,
1996 and

WHEREAS, the other participants agree to this withdrawal,

Now therefore, the Participants hereby agree:

1)   Seagate Technology (Ireland) hereby withdraws from the Disc Drive Research
     and Development Cost Sharing Agreement,

2)   The withdrawal shall be effective as of November 23, 2000, and

3)   The Participants agree to waive the termination notice as required in
     Section 6.2 of the Agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized signatories.

                                  SEAGATE TECHNOLOGY LLC
                                  (an assignee of Seagate Technology, Inc.)
                                       /s/  Donald L. Waite
                                  -------------------------
                                  By:  Donald L. Waite
                                  Title:  Executive Vice President and Chief
                                  Administrative Officer

                                  SEAGATE TECHNOLOGY (IRELAND)

<PAGE>

                                                                              26

                                       /s/  Charles C. Pope
                                  ----------------------------------------------
                                  By:  Charles C. Pope
                                  Title:  Director

                                 SEAGATE TECHNOLOGY INTERNATIONAL

                                        /s/  Stephen J. Luczo
                                  ----------------------------------------------
                                  By:  Stephen J. Luczo
                                  Title:  Director<PAGE>

                                                                   Exhibit 10.13

                                   WORLD-WIDE
                               SERVICES AGREEMENT

Effective for the period July 1, 1993 through June 30, 1994, and subsequent
fiscal years, Seagate Technology, Inc., a U.S. Corporation with principal
offices in Scotts Valley, California, hereinafter referred to as STUS, and
Seagate Technology International, and subsidiaries, a Cayman Island corporation
with principal offices in Georgetown, Grand Cayman B.W.I., hereinafter referred
to as STIC, agree as follows:

WHEREAS:

          A.   An existing Service Agreement between STUS and STIC terminates on
               June 30, 1993;

          B.   STUS and STIC manufacture and sell disc drives and disc drive
               components in a highly competitive and technological industry
               where increases in productivity and the control of costs are
               crucial;

          C.   STUS and STIC have separate and independent management teams
               including marketing, technical and support staffs, but each
               requires similar types of marketing, technical and support
               expertise; and

          D.   STUS and STIC desire to maintain the independent management of
               their respective businesses; however, they also desire to
               maximize efficiency and productivity and to minimize the
               duplication and overlap of various services and the use of third
               party contractors.

THEREFORE, IT IS HEREBY AGREED:

          1.   That although STUS and STIC will continue to develop their
               management teams; each may call upon the expertise and staffs of
               the other upon request.

          2.   That each party will strive to maximize efficiency and avoid
               duplication of effort by developing programs and hiring practices
               to attract and retain talented personnel with a view of
               increasing the expertise necessary to run their respective
               businesses, but maintaining strict control of personnel levels.

          3.   That the relationship of STUS and STIC established by this
               Agreement is that of independent contractors, and nothing
               contained in the Agreement shall be construed to (i) give either
               party the power to direct and control the day-to-day activities
               of the other, (ii) constitute the parties as partners, joint
               venturers, principal and agent, employer and employee, co-owners
               or otherwise as participants in a joint undertaking, or (iii)
               allow one party to create or assume any obligation on behalf of
               the other party for any

                                       1

<PAGE>

               purpose whatsoever. All financial and other obligations
               associated with each party's business are the sole responsibility
               of that party. Each party shall be solely responsible for, and
               shall indemnify and hold the other party free and harmless from,
               any and all claims, damages or lawsuits (including attorneys'
               fees) arising out of the provision of services by the other
               party, its employees or its agents.

          4.   The services performed and charges therefore shall be determined
               under Sections I and II below.

SECTION I - DEFINITION OF SERVICES

     Each party may perform a variety of services for the other party in accord
     with the objectives stated above. In general, the nature of such services
     will be (1) services that require a charge under Section 1.482-2T(b)(3) of
                                         ------
     the regulations under the Internal Revenue Code in the U.S. and (2)
     services that require no charge under Sections 1.482-2T(b)(2)(ii),
                           ---------
     1.861-8(e)(4) and 1.482-2T(b)(5) of the regulations under the Internal
     Revenue Code in the U.S.

SECTION II - SERVICES - CHARGE

          2.1  A charge shall be made for any service undertaken for the joint
               benefit of either party or for any service performed by one party
               exclusively for the benefit of the other. Such services may
               include engineering, quality assurance and other technical
               services, purchasing services, marketing and sales services,
               treasury and cash management services.

          2.2  The parties shall determine the methodology to identify the
               charges, i.e., interviewing personnel, reviewing department
               documentation and monitoring specific service requests of one of
               the parties, that are to be made pursuant to paragraph 2.1 above.

          2.3  STIC may share any portion of its charges with any of its
               subsidiaries.

SECTION III - SERVICES - NO CHARGE

          3.1  A charge shall not be made for services that are merely a
               duplication of a service that one of the parties already is
               performing. Duplication shall be determined under Sections
               1.482-2T(b)(2)(ii) and 1.861-8(e)(4) of the regulations under the
               Internal Revenue Code in the U.S. Such services may include a
               variety of financial services, stewardship services, personnel
               services, administrative services, marketing and sales services,
               technical services and other support services.

          3.2  A charge shall not be made for services where the benefit to a
               party is indirect, remote or de minimis as determined under
               Section 1.482-2T(b)(2) of the regulations under the Internal
               Revenue Code in the U.S.

                                        2

<PAGE>

          3.3  A charge shall not be made for services for certain interest
               expense, expenses associated with issuance of stock and
               maintenance of shareholder relations, and expenses of compliance
               with regulations or policies imposed upon one of the parties
               rendering the service by its government if not related to the
               service in question under Section 1.482-2T(b)(5) of the
               regulations under the Internal Revenue Code in the U.S.

SECTION IV - AMOUNT OF CHARGE FOR SERVICES

          4.1  An Arms Length charge for services described in Section II above
               performed by STUS shall be made in accord with Section
               1.482-2T(b)(3) of the regulations under the Internal Revenue Code
               in the U.S. as set forth below.

               A.   The Arms Length charge for all services performed by STUS
                    shall be deemed to be equal to the costs incurred.

               B.   The Arms Length charge for services performed by STIC shall
                    be made in accord with the applicable law of the Republic of
                    Singapore.

               C.   The costs set forth in (A) above shall include direct and
                    indirect costs as described in Section 1.482-2T(b)(4) of the
                    regulations under the Internal Revenue Code in the U.S.

               D.   The methods used in determining the costs described in (C)
                    above shall be the method described in Section
                    1.482-2T(b)(6) permits the use of methods that are
                    consistent, reasonable and in keeping with sound accounting
                    practices, including the use of estimates and department
                    overhead rates. However, the method of determining
                    apportionable costs must be on the basis of full costs as
                    opposed to incremental costs, and the ordinary prudent man
                    rule shall be utilized in determining estimates and
                    department overhead rates.

               E.   No charge shall be made for services described in Section
                    III above.

               F.   If an individual, a team of individuals or a department
                    performs single or integrated services as defined both in
                    Sections II and III above, an apportionment shall be made in
                    accord with the methods and principles described in
                    paragraphs 4.1 (C) and (D) above.

               G.   The parties shall periodically review the conclusion that
                    the services performed under this Agreement are not an
                    integral part of the business activity of either the
                    provider or recipient of the services under Section
                    1.482-2T(b)(3) of the regulations under the Internal Revenue
                    Code in the U.S. If the parties determine that any

                                       3

<PAGE>

                    services being performed under this Agreement are integral,
                    this Agreement may be modified pursuant to paragraph 7.2
                    below.

SECTION V - SERVICE CHARGES

          5.1  All service charges made in accord with Section IV above shall be
               determined and charged on a timely basis with best efforts to
               finalize such charges no later than on a quarterly basis. Charges
               in question or dispute should be submitted for review to the
               other party on a timely basis.

SECTION VI - PAYMENT

          6.1  IN GENERAL

               Payment in cash, debt instrument, property, or other valuable
               consideration shall be made on a timely basis for service charges
               incurred by either party, but subject to the terms of paragraphs
               6.2 through 6.6 below.

          6.2  Prior to any payment by STUS or STIC, service charges shall be
               netted to determine the final debtor.

          6.3  If not prohibited under local law or the business practices of
               either party, the debtor party (STUS or STIC) may net any amount
               described in paragraph 6.2 above against other amounts owed by
               the creditor party to the debtor party.

          6.4  If STIC is the debtor party described in paragraph 6.2 above,
               STIC must make payment in fact or in kind during the time frame
               described in Section 1.482-2T(a)(1)(iii) of the regulations under
               the Internal Revenue Code of the U.S. to avoid imputed interest
               income to STUS. STIC agrees to hold STUS harmless in the event of
               noncompliance with this provision.

          6.5  If STIC is the debtor party described in paragraph 6.2 above and
               if it is deemed appropriate under the circumstances, payment for
               service charges can be in the form of a dividend. For U.S. tax
               purposes, such a designation is consistent with payment concepts
               contained in closing agreements under Revenue Procedure 65-17 and
               Section 482 of the Internal Revenue Code of the U.S.

          6.6  If pursuant to paragraph 2.3 above, STIC shares any portion of
               its charges with any subsidiary, either STIC or such subsidiary
               may pay the portion of the charges related to such subsidiary to
               STUS.

          6.7  Any amount in dispute shall be resolved by agreement of the
               parties or, if necessary, submitted to arbitration.

                                       4

<PAGE>

SECTION VII - MODIFICATION

          7.1  This contract may be modified in writing as a result of any
               change in the tax law or of principles contained in the opinion
               of the Tax Court, when issued, in the tax case between STUS and
               the IRS.

          7.2  This contract may be modified in the event that either STUS or
               STIC provides the other with services that are integral under
               Section 1.4822T(b)(3) of the regulations under the Internal
               Revenue Code in the U.S.

          7.3  Any oral modification of this contract shall have no effect.

SECTION VIII - TERMINATION, BREACH, FORCE MAJEURE

          8.1  This contract can be terminated by any party by giving 60 days
               notice prior to the commencement of any fiscal year or at any
               time if a substantive change in the law occurs in any
               jurisdiction in which the parties are engaged in a substantial
               business activity.

          8.2  Failure to perform any of the terms and conditions herein shall
               be deemed a material breach and the aggrieved party may terminate
               all or part of the contract by giving 60 days notice; provided,
               however, that a party can prevent termination if it can cure or
               correct any alleged breach during the 60 day period. The 60 day
               period shall commence on the date the breach is communicated to
               the offending party. Termination of this Agreement shall not
               prejudice any claim for damages or relieve any party from making
               payments due or owing.

          8.3  If any of the parties hereto shall be prevented or delayed from
               performing any of the obligations herein by reason of strike,
               threat of imminent strike, fire, flood or other act of nature,
               war (declared or undeclared) or insurrection or mob violence,
               regulation (formal or informal) of government or regulatory body,
               or the failure of any governmental authority to issue any permit,
               license or like authorization within a reasonable time after
               application therefor, then and only in such event, such failure
               to perform shall not be deemed a breach of this Agreement;
               provided that the party so delayed shall give notice in writing
               to the other party setting out the particulars of the cause
               thereof and the date upon which the same arose, and shall give
               like notice following the date upon which such cause ceased to
               exist. The parties also agree to use reasonable diligence to
               remove any cause that interferes with the performance of the
               terms and conditions of this contract.

SECTION IX - ASSIGNMENT

          9.1  No right or obligation herein shall be assigned by either party,
               except for assignments to controlled entities, without the prior
               written consent of the other.

                                       5

<PAGE>

SECTION X - DOMINANT LAW

          10.1 This Agreement shall be governed and construed in accordance with
               the laws of the State of California, USA and the Internal Revenue
               Code of the United States of America, except for paragraph 4.1(B)
               above, which shall be governed and construed in accordance with
               the laws of the Republic of Singapore.

          10.2 In the event that any term or part of this Agreement is held
               invalid or unenforceable by a court or administrative agency
               having proper jurisdiction, it shall not effect the validity and
               enforceability of the other terms.

WITNESS WHEREOF, the parties have signed and executed this Agreement.

                                        SEAGATE TECHNOLOGY, INC.

                                        /s/ Donald L. Waite
                                        -----------------------------------
                                        June 14, 1993
                                        -----------------------------------
                                        DATE

WITNESSED

/s/ [Illegible]
--------------------------
                                        SEAGATE TECHNOLOGY INTERNATIONAL

                                        /s/ [Illegible]
                                        -----------------------------------
                                        June 28, 1993
                                        -----------------------------------
                                        DATE

WITNESSED

     /s/ C. Hathaway
--------------------------

                                       6

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