TABLE OF CONTENTS

Section 1. Definitions			1
(a) Added Products			1
(b) Affiliate			1
(c) Assets			2
(d) Assigned IP			2
(e) Business			2
(f) Commercially Reasonable Efforts			2
(g) Closing			2
(h) Closing Date			2
(i) Cure Period			2
(j) Dispute Notice			2
(k) Existing Third Party License Agreements			2
(l) Future Hitachi IP			2
(m) Future Third Party License Agreements			2
(n) HTS Business			2
(o) Indemnified Party			2
(p)Intellectual Property			2
(q) Licensed IP			3
(r) Losses			3
(s) Material Adverse Effect			3
(t) Minority-Owned Affiliate			3
(u) Non-Transferred License Agreements			3
(v) OpNext Japan			3
(w) OpNext Japan R&D Agreement			3
(x) OpNext Parties			3
(y) Opto-Device IP			4
(z) Opto-Device Third Party License Agreement			4
(aa) Person			4
(bb) SIC Business			4
(cc) Subsidiary			4
(dd) Third Party Claim			4
(ee) Third Party License Agreements			4
(ff) Wholly-Owned Subsidiaries			4
Section 2. Assigned Intellectual Property			5
(a) License			5
(b) Review of Obligations			5
(c) Status of Wholly-Owned Subsidiaries			5
Section 3. Licensed Intellectual Property			5
(a) Definition			5
(b) License			6
(c) Sublicense			7
(d) Review of Obligations			8

(e) Obligation to Maintain Intellectual Property			8
(f) Future Hitachi IP			8
(g) Transfer of Licensed IP			9
(h) Change in Status			9
Section 4. Opto-Device Intellectual Property			9
(a) Definition			9
(b) License			9
(c) Termination Conditions			9
(d) Review of Obligations			10
(e) Status of Wholly-Owned Subsidiaries			10
Section 5. Third-Party License Agreements			11
(a) Definition			11
(b) Existing Third Party License Agreements			11
(c) Future Third Party License Agreements			11
(d) Other Agreements			12
(e) Termination of Obligations			13
Section 6. Representations and Warranties of Hitachi			13
(a) Assigned IP and Licensed IP			13
(b) Authority			13
(c )No Conflicts			14
(d) Litigation, etc			14
(e)Infringement of Licensed IP			14
(f) Product Clearance Searches			14
Section 7. Covenants of Hitachi			15
(a) Ordinary Course			15
(b) Covenant Not to Sue			15
(c) Confidentiality			15
(d) Opto-Devices and Hitachis Trademark, Trade Names, etc			16
(e) Taxes			17
(f) New Product Clearance Searches			17
(g) Guaranty			17
Section 8. Representations and Warranties of Opto-Device			17
(a) Authority			17
(b) No Conflicts			17
Section 9. Covenants of Opto-Device			18
(a) Confidentiality			18
(b) No Additional Representations			18
(c) Covenant Not to Sue			19
(d) Guaranty			19

Section 10. Mutual Covenants			19
(a) Consents			19
(b) Non-Transferred License Agreements			20
(c) Press Releases			20
(d) Commercially Reasonable Efforts			20
(e) Injunctive Relief			20
Section 11. Indemnification			20
(a) Previously Disclosed Claims			20
(b)Intellectual Property Indemnification and Defense			21
(c) Indemnification by Hitachi			21
(d) Indemnification by Opto-Device			22
(e) Losses Net of Insurance			22
(f) Limitations on Indemnification			22
(g) Procedures Relating to Indemnification			23
(h) Duty to Mitigate			24
Section 12. Dispute Resolution			24
Section 13. Assignment			24
Section 14. Third-Party Beneficiaries			24
Section 15. Termination			25
Section 16. Survival of Representations and Warranties			25
Section 17. Expenses			25
Section 18. Export Control			25
Section 19. Amendment and Waiver			25
Section 20. Notices			25
Section 21. Interpretation			26
Section 22. Counterparts			27
Section 23. Entire Agreement			27
Section 24. Relationship to Other Agreements			27
Section 25. Schedules or Exhibits			27
Section 26. No Strict Construction			27
Section 27. Severability			27
Section 28. Governing Law			28
Section 29. Submission to Jurisdiction; Waivers			28
Section 30. Delivery by Facsimile			29
Section 31. Exhibits and Schedules			29
Section 32. Recordation			29

Section 33. Third Parties			29
Section 34. Survival			29
Section 35. Hitachi Communication Technologies, Ltd			29

INTELLECTUAL PROPERTY LICENSE AGREEMENT

          THIS INTELLECTUAL PROPERTY LICENSE AGREEMENT (the IP License Agreement), dated as of October 1, 2002, is entered into by and between HITACHI, LTD., a corporation existing under the laws of Japan (Hitachi), and OPTO-DEVICE LIMITED, a corporation existing under the laws of Japan (Opto-Device), pursuant to the terms of the Business Transfer Agreement, dated July 24, 2002 (the Business Transfer Agreement), entered into between Hitachi and Opto-Device and the Stock Purchase Agreement, dated October 1, 2002 (the Stock Purchase Agreement), entered into between Hitachi and OpNext, Inc., a Delaware corporation (OpNext). All capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms in the Stock Purchase Agreement.

WITNESSETH

          WHEREAS, the Business Transfer Agreement provides the terms and conditions under which Hitachi sold to Opto-Device all of the Assets (as defined below), which are necessary or reasonably required for the operation of the opto-device business of Hitachis Semiconductor and Integrated Circuits Group (SIC) and Hitachi Tohbu Semiconductor, Ltd., a corporation existing under the laws of Japan and a Wholly-Owned Subsidiary of Hitachi (HTS). This IP License Agreement provides the terms and conditions under which Hitachi will be licensing to Opto-Device 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;

          WHEREAS, simultaneously with the execution of this IP License Agreement, Hitachi is entering into the Stock Purchase Agreement pursuant to which OpNext will acquire all of the outstanding capital stock of Opto-Device; and