Settlement Clauses

1. Respondent (Incidental Appellant, the "Respondent') confirms to the Appellant (Incidental Respondent, "the Appellant') that the rights to receive patents as to all the service inventions the Respondent made during the period the Respondent was employed by the Appellant (including the right to receive Japan patent and utility model registration, and rights to receive foreign patents corresponding to the same, likewise in the following) have already been succeeded to the Appellant.

2. Appellant admits that it has an obligation to pay 608,570,000 yen as reasonable remuneration for succession of rights to receive the aforementioned service inventions, and 235,340,000 yen (less than 10,000 rounded down) as late payment penalty at a rate of 5% per year from April 18, 1997 to January 11, 1995 for the same.

3. Appellant shall pay a total of the amounts as in Paragraph 2, which is, 843,910,000 yen to the Respondent no later than the last day of January 2005, by remittance to the bank account (account no. xxxxxx) of xxx Bank, xxx Branch, xxx account under the name "xxxx.'

4. Concerning Tokyo District Court Heisei 16 (Mo) No. 1315 case, the petition for decision of suspension of forced execution against the Appellant, Respondent agrees with the Appellant as for cancellation of the security by payment guarantee consignment agreement (those after Heisei 16 (Mo) No. 2673 collateral change decision by said Court), and neither Appellant nor Respondent make appeal of said decision of cancellation.

5. Respondent waives the rest of the claims.

6. Appellant and Respondent mutually confirm that the Dispute with respect to the service inventions, and all disputes other than this case between the Appellant and Respondent are resolved by this Settlement.

7. Appellant and Respondent mutually confirm that there are no other debts and credits other than those stipulated in these Settlement Clauses.

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