TABLE OF CONTENTS

Section 1. Definitions			2
(a)   Added Products			2
(b)   Affiliate			2
(c)   Assigned IP			2
(d)   Business			2
(e)   Commercially Reasonable Efforts			2
(f)   Cure Period			2
(g)   Dispute Notice			2
(h)   Existing Third Party License Agreements			2
(i)   First Closing			2
(j)   First Closing Date			3
(k)   Future Hitachi IP			3
(l)   Future Third Party License Agreements			3
(m)  Indemnified Party			3
(n)   Intellectual Property			3
(o)   Licensed IP			3
(p)   Losses			3
(q)   Material Adverse Change or Material Adverse Effect			3
(r)   Minority-Owned Affiliate			4
(s)   Non-Transferred License Agreements			4
(t)   OpNext Japan IP			4
(u)   OpNext Japan Third Party License Agreement			4
(v)   OpNext Parties			4
(w)   Person			4
(x)   Second Closing			4
(y)   Second Closing Date			4
(z)   Subsidiary			4
(aa) Third Party Claim			5
(bb) Third Party License Agreements			5
(cc) Wholly-Owned Subsidiaries			5
Section 2. Assigned Intellectual Property			5
(a)  License			5
(b)  Review of Obligations			5
Section 3.Licensed Intellectual Property			5
(a)   Definition			6
(b)  License			6
(c)  Sublicense			7
(d)  Review of Obligations			8
(e)  Obligation to Maintain Intellectual Property of the Business Prior to Second Closing Date			8
(f)   Future Hitachi IP			8
(g)  Transfer of Licensed IP			9

Section 4. OpNext Japan Intellectual Property			9
(a) Definition			9
(b) License			9
(c) Review of Obligations			10
Section 5. Third-Party License Agreements			10
(a) Definition			10
(b) Existing Third Party License Agreements			10
(c) Future Third Party License Agreements			11
(d) Other Agreements			12
(e) Termination of Obligations			12
Section 6. Representations and Warranties of Hitachi			12
(a) Assigned IP and Licensed IP			12
(b) Authority			13
(c) No Conflicts			13
(d) Litigation, etc			13
(e) Infringement of Licensed IP			13
Section 7. Covenants of Hitachi			13
(a) Ordinary Course			14
(b) Covenant Not to Sue			14
(c) Confidentiality			14
(d) OpNext Japans and Hitachis Trademark, Trade Names, etc			15
(e) Taxes			15
(f) New Product Clearance Searches			15
Section 8. Representations and Warranties of OpNext Japan			16
(a) Authority			16
(b) No Conflicts			16
(c) Litigation, etc			16
Section 9. Covenants of OpNext Japan			16
(a) Confidentiality			16
(b) No Additional Representations			17
(c) Covenant Not to Sue			17
Section 10. Mutual Covenants			17
(a) Consents			17
(b) Non-Transferred License Agreements			18
(c) Press Releases			18
(d) Commercially Reasonable Efforts			18
(e) Injunctive Relief			18
Section 11. Indemnification			18
(a) Previously Disclosed Claims			18
(b) Intellectual Property Indemnification and Defense			19

(c) Indemnification by Hitachi			19
(d) Indemnification by OpNext Japan			20
(e) Losses Net of Insurance			20
(f) Limitations on Indemnification			20
(g) Procedures Relating to Indemnification			21
(h) Controlling Provision			21
(i) Duty to Mitigate			22
Section 12. Dispute Resolution			22
Section 13. Assignment			22
Section 14. Third-Party Beneficiaries			22
Section 15. Termination			22
Section 16. Survival of Representations and Warranties			23
Section 17. Expenses			23
Section 18. Export Control			23
Section 19. Amendment and Waiver			23
Section 20. Notices			23
Section 21. Interpretation			25
Section 22. Counterparts			25
Section 23. Entire Agreement			25
Section 24. Relationship to Other Agreements			25
Section 25. Schedules or Exhibits			25
Section 26. No Strict Construction			25
Section 27. Severability			26
Section 28. Governing Law			26
Section 29. Submission to Jurisdiction; Waivers			26
Section 30. Delivery by Facsimile			27
Section 31. Exhibits and Schedules			27
Section 32. Recordation			27
Section 33. Third Parties			27
Section 34. Survival			27

INTELLECTUAL PROPERTY LICENSE AGREEMENT

          THIS INTELLECTUAL PROPERTY LICENSE AGREEMENT (the IP License Agreement), dated as of July 31, 2001, is entered into by and between HITACHI, LTD., a corporation existing under the laws of Japan (Hitachi), and OPNEXT JAPAN, INC., a corporation existing under the laws of Japan and a Wholly-Owned Subsidiary of OpNext, Inc., a Delaware corporation (OpNext Japan), pursuant to the terms of the Business Transfer Agreement, dated December 6, 2000 (the Business Transfer Agreement), entered into between Hitachi and OpNext Japan, the Stock Contribution Agreement, dated July 31, 2001 (the Stock Contribution Agreement), entered into between Hitachi and OpNext, Inc., the Stock Purchase Agreement, dated September 19, 2000 (the Existing Purchase Agreement and as amended by the Amended and Restated Stock Purchase Agreement of even date herewith and as further amended, supplemented or otherwise modified from time to time, the Stock Purchase Agreement), and the Stockholders Agreement, dated July 31, 2000 (Stockholders Agreement), both among OpNext, Inc., Hitachi and Clarity Partners, L.P., a Delaware limited partnership (Clarity), Clarity OpNext Holdings I, LLC, a Delaware limited liability company (Holdings I) and Clarity OpNext Holdings II, LLC, a Delaware limited liability company (Holdings II, together with Clarity and Holdings I, the Clarity Parties). All capitalized terms used herein but not defined herein have the meanings ascribed to such terms in the Stock Contribution Agreement, Stock Purchase Agreement or Stockholders Agreement.

WITNESSETH

          WHEREAS, the Business Transfer Agreement provides the terms and conditions under which Hitachi sold to OpNext Japan all of the Assets, which are necessary or reasonably required for the operation of the fiber optic component business of Hitachis Telecommunication Systems Division. This IP License Agreement provides the terms and conditions under which Hitachi will be licensing to OpNext Japan the Intellectual Property (as defined below) rights, which are necessary or reasonably required for the operation of the Business (as defined below) and which were not transferred/assigned under the Business Transfer Agreement;