| STRICTLY CONFIDENTIAL | EXECUTION COPY |
|-----------------------|----------------|

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| 1      |   | DEFINITIONS                              | 4                                                  |
|--------|--------|------------------------------------------|----------------------------------------------------|
|   |   |                                     |                                               |   |
|   |   | 1.1                                      | Definitions                                        |   |
|   |   | 1.2                                      | Other Defined Terms                                |   |
|   |   | 1.3                                      | Construction                                       |   |
|   |   |                                     |                                               |
| 2      |   | SALE AND PURCHASE OF SHARES              | 12                                                 |
|   |   |                                     |                                               |   |
|   |   | 2.1                                      | Sale and Purchase of Shares                        | 12 |
|   |   |                                     |                                               |
| 3      |   | PURCHASE PRICE AND PAYMENT               | 12                                                 |
|   |   |                                     |                                               |   |
|   |   | 3.1                                      | Purchase Price and Payment                         | 12 |
|   |   |                                     |                                               |
| 4      |   | CLOSING                                  | 12                                                 |
|   |   |                                     |                                               |   |
|   |   | 4.1                                      | Closing                                            | 12 |
|   |   | 4.2                                      | Closing Deliveries                                 | 12 |
|   |   |                                     |                                               |
| 5      |   | REPRESENTATIONS AND WARRANTIES OF SELLER | 13                                                 |
|   |   |                                     |                                               |   |
|   |   | 5.1                                      | Corporate Organization; Status                     | 13 |
|   |   | 5.2                                      | Due Authorization                                  | 14 |
|   |   | 5.3                                      | No Conflict                                        | 15 |
|   |   | 5.4                                      | Capitalization and Ownership                       | 15 |
|   |   | 5.5                                      | Subsidiaries                                       | 16 |
|   |   | 5.6                                      | Financial Statements                               | 16 |
|   |   | 5.7                                      | Absence of Undisclosed Liabilities                 | 16 |
|   |   | 5.8                                      | Absence of Certain Changes and Events              | 17 |
|   |   | 5.9                                      | Transferred Contracts                              | 17 |
|   |   | 5.1                                      | Tangible Personal Property                         | 17 |
|   |   | 5.11                                     | Leased Real Property                               | 17 |
|   |   | 5.12                                     | Equipment                                          | 17 |
|   |   | 5.13                                     | Accounts Receivable/Accounts Payable               | 18 |
|   |   | 5.14                                     | Intellectual Property                              | 18 |
|   |   | 5.15                                     | Material Transferred Contracts                     | 18 |
|   |   | 5.16                                     | Tax Matters                                        | 19 |
|   |   | 5.17                                     | Environmental, Health and Safety Matters           | 19 |
|   |   | 5.18                                     | Governmental Authorizations                        | 19 |
|   |   | 5.19                                     | Compliance with Laws                               | 19 |
|   |   | 5.2                                      | Product Warranties; Defects; Liability             | 20 |
|   |   | 5.21                                     | Insurance                                          | 20 |
|   |   | 5.22                                     | Legal Proceedings                                  | 20 |
|   |   | 5.23                                     | Employment and Labor Matters                       | 21 |
|   |   | 5.24                                     | Disclosure                                         | 21 |
|   |   | 5.25                                     | Sufficiency                                        | 21 |
|   |   | 5.26                                     | New IBM Agreement                                  | 22 |
|   |   | 5.27                                     | Disclaimer of Other Representations and Warranties | 22 |
|   |   |                                     |                                               |   |
| 6      |   | REPRESENTATIONS AND WARRANTIES OF BUYER  | 22                                                 |
|   |   |                                     |                                               |   |
|   |   | 6.1                                      | Corporate Organization; Status                     | 22 |
|   |   | 6.2                                      | Due Authorization                                  | 22 |
|   |   | 6.3                                      | No Conflict                                        | 23 |
|   |   | 6.4                                      | Legal Proceedings                                  | 23 |
|   |   | 6.5                                      | Financial Capacity                                 | 23 |
|   |   | 6.6                                      | Independent Investigation                          | 23 |

----

|   |   |      |   |
|--------|--------|-----------|--------|
| 7      |   | COVENANTS | 24     |
|   |   |      |   |   |

|   |   | 7.1                                                                   | Closing and Notification                                         | 24     |
|--------|--------|-----------------------------------------------------------------------|------------------------------------------------------------------|--------|
|   |   | 7.2                                                                   | Access and Investigation                                         | 24     |
|   |   | 7.3                                                                   | Operation of the Transferred Business                            | 24     |
|   |   | 7.4                                                                   | Filings                                                          | 26     |
|   |   | 7.5                                                                   | Consents                                                         | 26     |
|   |   | 7.6                                                                   | Public Announcements                                             | 27     |
|   |   | 7.7                                                                   | Confidentiality                                                  | 27     |
|   |   | 7.8                                                                   | Corporate Split                                                  | 28     |
|   |   | 7.9                                                                   | Business Transfer                                                | 28     |
|   |   | 7.1                                                                   | Examination of Delivery and Preparation of Closing Balance Sheet | 29     |
|   |   | 7.11                                                                  | New Customer Contracts                                           | 29     |
|   |   | 7.12                                                                  | New IBM Agreement                                                | 30     |
|   |   | 7.13                                                                  | Transferred Sites                                                | 30     |
|   |   | 7.14                                                                  | Suppliers                                                        | 30     |
|   |   | 7.15                                                                  | Shared Business Partner Contracts                                | 31     |
|   |   | 7.16                                                                  | Shared Global Services Customers                                 | 32     |
|   |   | 7.17                                                                  | IBM End-Users                                                    | 32     |
|   |   | 7.18                                                                  | Return or Destruction of Data                                    | 32     |
|   |   | 7.19                                                                  | Regional Partner                                                 | 32     |
|   |   | 7.2                                                                   | NTT Shares                                                       | 32     |
|   |   |                                                                  |                                                             |
| 8      |   | EMPLOYEES                                                             | 33                                                               |
|   |   |                                                                  |                                                             |   |
|   |   | 8.1                                                                   | Employment Offer                                                 | 33     |
|   |   | 8.2                                                                   | Newco Employment Terms and Conditions                            | 33     |
|   |   | 8.3                                                                   | Transition Bonus                                                 | 34     |
|   |   | 8.4                                                                   | Seller Pension Plans                                             | 35     |
|   |   | 8.5                                                                   | Transferred Employee Liabilities                                 | 35     |
|   |   |                                                                  |                                                             |
| 9      |   | CONDITIONS PRECEDENT TO SELLER’S AND BUYERS OBLIGATION TO CLOSE |                                                             |
|   |   |                                                                  |                                                             |   |
|   |   | 9.1                                                                   | Consummation of Corporate Split and Business Transfer            | 35     |
|   |   | 9.2                                                                   | Governmental Authorizations                                      | 36     |
|   |   | 9.3                                                                   | No Prohibition                                                   | 36     |
|   |   | 9.4                                                                   | Employees                                                        | 36     |
|   |   |                                                                  |                                                             |
| 10     |   | CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE36           |                                                             |
|   |   |                                                                  |                                                             |   |
|   |   | 10.1                                                                  | Accuracy of Representations                                      | 36     |
|   |   | 10.2                                                                  | Performance                                                      | 36     |
|   |   | 10.3                                                                  | Additional Documents                                             | 36     |
|   |   | 10.4                                                                  | Ancillary Agreements                                             | 36     |
|   |   | 10.5                                                                  | Material Adverse Effect                                          | 36     |
|   |   |                                                                  |
| 11     |   | CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE36          |
|   |   |                                                                  |                                                             |   |
|   |   | 11.1                                                                  | Accuracy of Representations                                      | 36     |
|   |   | 11.2                                                                  | Buyer’s Performance                                        | 37     |
|   |   | 11.3                                                                  | Additional Documents                                             | 37     |
|   |   | 11.4                                                                  | Ancillary Agreements                                             | 37     |
|   |   | 11.5                                                                  | NTT Shares                                                       | 37     |
|   |   |                                                                  |                                                             |
| 12     |   | TERMINATION                                                           | 37                                                               |
|   |   |                                                                  |                                                             |   |
|   |   | 12.1                                                                  | Termination Events                                               | 37     |
|   |   | 12.2                                                                  | Effect of Termination                                            | 37     |
|   |   |                                                                  |                                                             |
| 13     |   | INDEMNIFICATION; REMEDIES                                             | 38                                                               |
|   |   |                                                                  |                                                             |   |
|   |   | 13.1                                                                  | Survival, Right to Indemnification; Waiver                       | 38     |
|   |   | 13.2                                                                  | Indemnification by Seller                                        | 38     |
|   |   | 13.3                                                                  | Indemnification by Buyer                                         | 39     |
|   |   | 13.4                                                                  | Procedure for Indemnification                                    | 39     |
|   |   | 13.5                                                                  | Limitations on Liability                                         | 40     |
|   |   | 13.6                                                                  | Exclusive Remedy                                                 | 41     |

----

| 14.    |   | TAX MATTERS              | 41                                                    |
|--------|--------|--------------------------|-------------------------------------------------------|
|   |   | 14.1                     | Liability and Indemnification for Taxes               | 41 |
|   |   | 14.2                     | Tax Return Filing; Audit Responsibilities             | 41 |
|   |   | 14.3                     | Cooperation                                           | 42 |
|   |   | 14.4                     | Indemnification Payments                              | 42 |
|   |   | 14.5                     | No Deduction of Taxes from Purchase Price             | 42 |
|   |   | 14.6                     | Transaction Taxes                                     | 43 |
|   |   | 14.7                     | Intended Tax Treatment                                | 43 |
|   |   | 14.8                     | Tax Deductions for Japanese Purposes                  | 43 |
|   |   | 14.9                     | Usage of Defined Terms                                | 43 |
| 15     |   | NON-COMPETE; NON-SOLICIT | 43                                                    |
|   |   | 15.1                     | Restrictions on Seller                                | 43 |
|   |   | 15.2                     | Exceptions from Restrictions on Seller                | 43 |
|   |   | 15.3                     | Restrictions on Newco                                 | 44 |
|   |   | 15.4                     | Exceptions from Restrictions on Newco                 | 45 |
|   |   | 15.5                     | Employee Solicitation Restriction on Seller and Buyer | 45 |
| 16     |   | GENERAL PROVISIONS       | 45                                                    |
|   |   | 16.1                     | Expenses                                              | 45 |
|   |   | 16.2                     | Notices                                               | 45 |
|   |   | 16.3                     | Further Actions                                       | 46 |
|   |   | 16.4                     | Incorporation of Schedules and Exhibits               | 46 |
|   |   | 16.5                     | Entire Agreement and Modification                     | 46 |
|   |   | 16.6                     | Severability                                          | 47 |
|   |   | 16.7                     | Assignments; Successors; No Third Party Rights        | 47 |
|   |   | 16.8                     | Waiver                                                | 47 |
|   |   | 16.9                     | Governing Law                                         | 47 |
|   |   | 16.1                     | Jurisdiction                                          | 47 |
|   |   | 16.11                    | Counterparts; Language                                | 47 |

----

| A) | Seller is engaged in the Business either directly or through the Subsidiary and AT&T Japan Ltd. |
|----|-----------------------------------------------------------------------------------------------------|

| B) | After the date of this Agreement but before the Closing Date, Seller will, and will cause the Subsidiary and AT&T Japan Ltd. to, effect the Business Split Transactions so that Newco will acquire the Transferred Business on the terms and subject to the conditions set forth in this Agreement. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C) | Newco and IBM will contemporaneously with the execution of this Agreement enter into an agreement in connection with the assumption by Newco of the rights, obligations and status of Seller under the IBM Master Services Agreement to the extent applicable to the Transferred Business. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D) | AT&T Corp., Newco and Buyer will contemporaneously with the execution of this Agreement enter into the Intellectual Property Agreement. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| E) | The parties hereto desire that at the Closing, Seller shall sell the Newco Shares to Buyer, on the terms and subject to the conditions set forth in this Agreement. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | DEFINITIONS |
|----|-------------|

| 1.1 | Definitions |
|-----|-------------|

|   | “Ancillary Agreements” means: |
|--------|-------------------------------------------|

|   | (i) | the AT&T Global Master Carrier Agreement; |
|--------|-----|-----------------------------------------------|

|   | (ii) | the Transition Services Agreement (Seller to Newco); |
|--------|------|------------------------------------------------------|

|   | (iii) | the Domestic Services Agreement; |
|--------|-------|----------------------------------|

|   | (iv) | the Transition Services Agreement (Newco to Seller); |
|--------|------|------------------------------------------------------|

|   | (v) | the Intellectual Property Agreement; |
|--------|-----|--------------------------------------|

|   | (vi) | the Split Agreement; |
|--------|------|----------------------|

|   | (vii) | the LLC Business Transfer Agreement; |
|--------|-------|--------------------------------------|

|   | (viii) | the LTD Business Transfer Agreement; and |
|--------|--------|------------------------------------------|

|   | (vi) | the Guaranty. |
|--------|------|---------------|

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----

----

----

----

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| 1.2 | Other Defined Terms |
|-----|---------------------|

| Term                                                                                                                                           | Reference                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                                                                                           |                                                                        |
| 5.7(c) DeductibleAgency Arrangement                                                                                                            | Section 13.2(a)(iii)Section 7.15(c)                                         |
| Buyer                                                                                                                                          | Preamble                                                                    |
| Buyer IndemniteesBuyer Pension PlanBuyer’s Intended Tax TreatmentCarrier                                                                 | Section 13.2Section 8.4(c)Section 14.7(b)Section 7.14(a)                    |
| Claim Notice                                                                                                                                   | Section 13.4(a)                                                             |
| Closing                                                                                                                                        | Section 4.1                                                                 |
| Commitment LettersConsent Plan                                                                                                                 | Section 6.5Section 7.5(c)                                                   |
| Data                                                                                                                                           | Section 7.18                                                                |
| December 2009 Balance Sheet                                                                                                                    | Section 5.6(a)                                                              |
| December 2009 Financial Statements                                                                                                             | Section 5.6(a)                                                              |
| DeductibleEmployment Offer                                                                                                                     | Section 13.5(a)(ii)Section 8.1(a)                                           |
| E-net SharesIBM End-Users Requiring ConsentsIdentified Contracts                                                                               | Section 5.5Section 7.17(a)Section 7.5(a)                                    |
| Indemnified PartyIndemnifying PartyInformationLLC Interim Balance SheetLTD Interim Balance Sheet                                               | Section 13.4(a)Section 13.4(a)Section 7.7(a)Section 5.6(b)Section 5.6(c)    |
| Material Transferred ContractsNew Customer ContractNewco Shares                                                                                | Section 5.15(a)Section 7.11Section 5.4(a)                                   |
| ProductsProvider                                                                                                                               | Section 5.20Section 7.7(a)                                                  |
| Purchase PriceReceiverRepresentativesReserved Reinstatement AccountResignation Letter                                                          | Section 3.1(a)Section 7.7(a)Section 7.7(a)Section 7.13(a)Section 8.1(b)(vi) |
| Restricted Period                                                                                                                              | Section 15.1                                                                |
| Seller                                                                                                                                         | Preamble                                                                    |
| Seller IndemniteesSeller’s Intended Tax TreatmentShared Business Partner Assumption AgreementShared Global Services Separation Agreement | Section 13.3Section 14.7(a)Section 7.15(a)Section 7.16(a)                   |
| Third Party ClaimTransfer Taxes                                                                                                                | Section 13.4(b)Section 14.6                                                 |
| Transferred SitesTransition BonusTransition Bonus AccountTransition Bonus Eligible EmployeeTransition Bonus Funds                              | Section 5.11(a)Section 8.3Section 8.3Section 8.3Section 8.3                 |

----

|   | (a) | Any reference in this Agreement to an “Article,” “Section” or “Schedule” refers to the corresponding Article, Section or Schedule of or to this Agreement, unless the context indicates otherwise. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The headings of Articles and Sections are provided for convenience only and should not affect the construction or interpretation of this Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | All words used in this Agreement should be construed to be of such gender or number as the circumstances require. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (d) | The terms “include” and “including” indicate examples of a foregoing general statement and not a limitation on that general statement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | SALE AND PURCHASE OF SHARES |
|----|-----------------------------|

| 2.1 | Sale and Purchase of Shares |
|-----|-----------------------------|

| 3. | PURCHASE PRICE AND PAYMENT |
|----|----------------------------|

| 3.1 | Purchase Price and Payment |
|-----|----------------------------|

|   | (a) | The purchase price for the Newco Shares (the “Purchase Price”) is ¥9,170,000,000. |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | Subject to the terms and conditions of this Agreement, Buyer will pay the Purchase Price to Seller in immediately available funds at the Closing by wire transfer to Seller’s bank account designated in accordance with Section 4.2(b)(iii). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | CLOSING |
|----|---------|

| 4.1 | Closing |
|-----|---------|

| 4.2 | Closing Deliveries |
|-----|--------------------|

|   | (a) | Seller will deliver, or will cause to be delivered, to Buyer: |
|--------|-----|---------------------------------------------------------------|

|   | (i) | the various certificates, instruments and documents referred to in Article 10; |
|--------|-----|--------------------------------------------------------------------------------|

|   | (ii) | the Ancillary Agreements, except for the Intellectual Property Agreement, duly executed by Seller, Newco, AT&T Japan Ltd. or AT&T Corp., as applicable; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | all required documents to cause Newco to record Buyer as a new shareholder of all the Newco Shares in its shareholder record; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | letters of resignation effective as of the date of Closing from all directors and officers of Newco as requested by Buyer giving Seller notice no later than three (3) Business Days prior to the Closing; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v)  | a true, correct and complete copy of the minutes of the shareholders’ meeting of Newco approving transfer of the Newco Shares from Seller to Buyer pursuant to this Agreement; |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | a true, correct and complete copy of the resolutions of Seller approving and authorizing the execution, delivery and performance of this Agreement and the contemplated transactions; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | commercial register (rireki jiko zenbu shomeisho), corporate seal of Newco (including the corporate seal registered at the competent legal affairs bureau), and the card regarding the corporate seal for Newco to be registered at the competent legal affairs bureau (inkan card); |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | Certificate of Formation of Seller; |
|--------|--------|-------------------------------------|

|   | (ix) | a certificate issued by a duly authorized officer of Seller, certifying that the documents in sub-sections (v) and (vi) of this Section 4.2(a) delivered to Buyer are in full force and effect or otherwise true and accurate as of the Closing Date, and are not modified or amended in any way; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | a copy of the receipt issued by the Legal Affairs Bureau acknowledging receipt of all applications required to be filed with the Legal Affairs Bureau for registration of the changes to the commercial register of Newco due to the Corporate Split and the Contribution in Kind; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | a legal opinion from legal counsel to Seller opining that all the approvals required to duly and validly complete the Corporate Split, Business Transfer (including the procedure of Jigo-Setsuritsu) and the Contribution in Kind under the Companies Act in Japan have been duly obtained and all such approvals are valid, and all the procedures required for Corporate Split, Business Transfer and the Contribution in Kind under the Companies Act of Japan have been duly and validly completed in accordance with the Companies Act of Japan; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | such other documents as Seller and Buyer may mutually agree in writing. |
|--------|-------|-------------------------------------------------------------------------|

----

|   | (b) | Buyer will deliver to Seller: |
|--------|-----|-------------------------------|

|   | (i) | the various certificates, instruments and documents referred to in Article 11; |
|--------|-----|--------------------------------------------------------------------------------|

|   | (ii) | the Ancillary Agreements, except for the Intellectual Property Agreement, duly executed by Buyer; |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | (iii) | the Purchase Price by wire transfer of immediately available funds, to the bank account to be designated by Seller, which designation of bank account shall be made no later than three (3) Business Days prior to the Closing; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a true, correct and complete copy of the resolutions of Buyer approving and authorizing the execution, delivery and performance of this Agreement and the purchase of the Newco Shares; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | commercial register (rireki jiko zenbu shomeisho) of Buyer; |
|--------|-----|-------------------------------------------------------------|

|   | (vi) | a certificate issued by a duly authorized officer of Buyer, certifying that the document in sub-section (v) of this Section 4.2(b) delivered to Seller is in full force and effect or otherwise true and accurate as of the Closing Date, and is not modified or amended in any way; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | such other documents as Seller may reasonably require. |
|--------|-------|--------------------------------------------------------|

| 5. | REPRESENTATIONS AND WARRANTIES OF SELLER |
|----|------------------------------------------|

| 5.1 | Corporate Organization; Status |
|-----|--------------------------------|

|   | (a)  | Seller, the Subsidiary and AT&T Japan Ltd. are a limited liability corporation or corporation respectively, and each is duly organized, validly existing and in good standing under the Laws of its place of incorporation or formation, with full power and authority to own and use its assets (to the extent it relates to the Transferred Business) and to conduct the Transferred Business as presently conducted. |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Seller, the Subsidiary and AT&T Japan Ltd. are duly qualified to do business in Japan where the nature of the Transferred Business activities requires such qualification. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Newco is a joint-stock corporation (kabushiki kaisha) duly organized, validly existing and in good standing under the Laws of Japan, with full corporate power and authority to own and use its assets and to conduct the Transferred Business. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Newco is duly qualified to do business in Japan where the nature of its activities requires such qualification. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (e) | As of the Closing Date, Seller has delivered to Buyer true, accurate and complete copies of (i) the articles of incorporation, bylaws or other internal rules and regulations with respect to the board of directors (if any), handling of shares, segregation of duties, internal audit, handling of personal information and other material matters of Newco and (ii) the minute books of Newco which contain records of all meetings, and other corporate actions taken by, its stockholders, Board of Directors (if any) and any committees appointed by its Board of Directors. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Seller has delivered to Buyer, a copy of the commercial registers (rireki jiko zenbu shomeisho) of the Subsidiary, AT&T Japan Ltd. and Newco, each certified by the Legal Affairs Bureau. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | All directors, statutory auditors and the representative director appearing on the relevant certificate of all matters recorded of Newco certified by the relevant Legal Affairs Bureau have been duly elected in accordance with applicable Laws. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | As of the Closing, all approvals required to duly and validly complete the Corporate Split, Business Transfer (including the procedure of Jigo-Setsuritsu) and the Contribution in Kind under the Companies Act of Japan have been duly obtained and all such approvals are valid, and all the procedures required for the Corporate Split, Business Transfer and the Contribution in Kind under the Companies Act of Japan have been duly and validly completed in accordance with the Companies Act of Japan. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.2 | Due Authorization |
|-----|-------------------|

|   | (a) | Seller has all requisite limited liability company power and authority to execute and deliver this Agreement and the Ancillary Agreements and to perform its obligations under this Agreement and the Ancillary Agreements.  The execution, delivery and performance of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements by Seller have been or will have been at Closing duly authorized by all necessary action on the part of Seller.  Assuming the due authorization, execution and delivery of this Agreement and the Ancillary Agreements by Buyer, this Agreement and the Ancillary Agreements constitute the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to (i) Laws of general application relating to bankruptcy, insolvency and the relief of debtors and (ii) Laws governing specific performance, injunctive relief and other equitable remedies. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | AT&T Japan Ltd. has all requisite company power and authority to execute and deliver the LTD Business Transfer Agreement and to perform its obligations under the LTD Business Transfer Agreement.  The execution, delivery and performance of the LTD Business Transfer Agreement and the consummation of the transactions contemplated by the LTD Business Transfer Agreement by AT&T Japan Ltd. have been or will have been at Closing duly authorized by all necessary action on the part of AT&T Japan Ltd.  The LTD Business Transfer Agreement constitutes the valid and binding obligation of AT&T Japan Ltd., enforceable against AT&T Japan Ltd. in accordance with its terms, subject to (i) Laws of general application relating to bankruptcy, insolvency and the |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | AT&T Corp. has all requisite company power and authority to execute and deliver the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement, and to perform its obligations under the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement.  The execution, delivery and performance of the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement, and the consummation of the transactions contemplated by the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement by AT&T Corp. have been or will have been at Closing duly authorized by all necessary action on the part of AT&T Corp.  Assuming the due authorization, execution and delivery of the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement by Buyer, the Intellectual Property Agreement, the Guaranty and the AT&T Global Master Carrier Agreement constitute the valid and binding obligations of AT&T Corp., enforceable against AT&T Corp. in accordance with their terms, subject to (i) Laws of general application relating to bankruptcy, insolvency and the relief of debtors and (ii) Laws governing specific performance, injunctive relief and other equitable remedies. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | No Conflict |
|-----|-------------|

----

| 5.4 | Capitalization and Ownership |
|-----|------------------------------|

|   | (a) | As of the Closing Date, the authorized capital stock of Newco consists solely of 1,000 ordinary shares (futsu kabushiki).  As of the Closing Date, Newco will have 110 issued and outstanding ordinary shares (futsu kabushiki) (“Newco Shares”).  As of the Closing Date (but prior to the sale and purchase of Newco Shares contemplated by this Agreement) and since the incorporation of Newco, Seller is, and has been, the sole record and beneficial owner and holder of all of the Newco Shares free and clear of all Encumbrances.  Upon payment in full of the Purchase Price, good and valid title to the Newco Shares will pass to Buyer with no restrictions on the voting rights or other incidents of record of such Newco Shares.  As of the Closing Date, all of the Newco Shares are duly authorized, validly issued, fully paid and nonassessable.  As of the Closing Date, there are no preemptive rights or any other similar rights with respect to the Newco Shares.  There are no contracts, except this Agreement and the Ancillary Agreements, to which either Seller or any other Person is a party or bound with respect to Newco Shares including any contract with respect to the voting rights (including voting trusts or proxies) of the Newco Shares.  Other than the Newco Shares, there are no outstanding or authorized options, warrants, rights, agreements or commitments to |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | For the purposes of Section 5.4(a), references to “as of the Closing Date” shall mean such time as of the Closing Date after the Corporate Split and the Contribution in Kind has each become effective. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Subsidiaries |
|-----|--------------|

| 5.6 | Financial Statements |
|-----|----------------------|

|   | (a) | Seller has delivered to Buyer the consolidated audited balance sheet of AT&T Japan LLC Japan Branch for the year ended December 31, 2009 (the “December 2009 Balance Sheet”), and the related statement of income for that period, including the accompanying notes (the “December 2009 Financial Statements”).  The December 2009 Financial Statements fairly present the financial position and results of operations of AT&T Japan LLC Japan Branch as of the respective dates thereof and for the periods indicated therein, all in accordance with GAAP. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Seller has delivered to Buyer the consolidated unaudited balance sheet of AT&T Japan LLC Japan Branch as of March 31, 2010 (“LLC Interim Balance Sheet”) and the related statement of income for that period.  The LLC Interim Balance Sheet and the related statement of income fairly present the financial position and results of operations of AT&T Japan LLC Japan Branch as of the respective dates thereof and for the periods indicated therein, all in accordance with GAAP. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller has delivered to Buyer the unaudited balance sheet of AT&T Japan Ltd. as of March 31, 2010 (“LTD Interim Balance Sheet”).  The LTD Interim Balance Sheet fairly presents the financial position and results of operations of AT&T Japan Ltd. as of the respective dates thereof and for the periods indicated therein, all in accordance with GAAP. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Seller has prepared and provided, in good faith, the annexes to the LLC Terms of Business Transfer, the LTD Terms of Business Transfer and the Split Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.7 | Absence of Undisclosed Liabilities |
|-----|------------------------------------|

|   | (a) | As of the date of this Agreement, except for Liabilities incidental to (i) the incorporation and organization of a Japanese joint-stock corporation (kabushiki kaisha), (ii) the application by Newco for employee health benefits (kenko hoken kumiai), (iii) Newco becoming a party to the New IBM Agreement or any Ancillary Agreement that has been executed by Newco on or prior to the date of this Agreement, Newco has not entered into any contracts or undertaken any other obligations and does not owe any Liabilities. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Other than the Liabilities reflected or reserved against in the December 2009 Balance Sheet, the LLC Interim Balance Sheet or the LTD Interim Balance Sheet, to Seller’s Knowledge, Newco has no Liabilities of the nature required to be disclosed in a balance sheet prepared in accordance with GAAP, except for Liabilities incurred in the ordinary course of business since the respective dates of the December 2009 Balance Sheet, the LLC Interim Balance Sheet and the LTD Interim Balance Sheet. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Other than the Liabilities reflected or reserved against in the December 2009 Balance Sheet, the LLC Interim Balance Sheet or the LTD Interim Balance Sheet, Newco has no Liabilities arising out of, relating to or incurred in connection with any breach of obligations under agreements related to the Transferred Business, or willful misconduct or negligence by Seller, the Subsidiary, AT&T Japan Ltd., Newco or representatives, directors, officers or employees of Seller, the Subsidiary, AT&T Japan Ltd. or Newco. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | Absence of Certain Changes and Events |
|-----|---------------------------------------|

| 5.9 | Transferred Contracts |
|-----|-----------------------|

| 5.10 | Tangible Personal Property |
|------|----------------------------|

| 5.11 | Leased Real Property |
|------|----------------------|

|   | (a) | Section 5.11(a) of the Seller Disclosure Schedule sets forth an accurate and complete description (by street address of the subject leased real property, the date and term of the lease, the name of the parties thereto and the aggregate annual rent payable thereunder) of all the real property that is currently leased by Seller or the Subsidiary used for the purpose of the Transferred Business, together with an indication as to whether each leased real property is contemplated to transfer to Newco.  The leased real property which are contemplated to transfer to Newco shall be referred to as “Transferred Sites”.  As of the date of this Agreement, Seller or the Subsidiary has sole and complete right to occupy and use the Transferred Sites free and clear of all Encumbrances.  Seller has made available to Buyer complete and correct copies of the leases in effect as of the date hereof relating to the Transferred Sites, including all amendments, modifications, notices or memoranda of lease thereto.  To Seller’s Knowledge, each of the leases for the Transferred Sites is enforceable against each party to the lease, and is in full force and effect and will continue to be so on identical terms following the consummation of the contemplated transactions.  There has not been any written or oral sublease, occupancy or assignment entered into by Seller or Subsidiary in respect of its Transferred Sites.  Neither Seller nor the Subsidiary is in default of any material provision of any leases for the Transferred Sites. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As of the Closing Date, for the Transferred Sites where the lessor has consented to the assignment of the lease or a sub-lease (as the case may be) to Newco of the leased premises, Newco will have a complete right to occupy and use the Transferred Sites free and clear of Encumbrances. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | There has not been any written or oral sublease or assignment entered into by Newco in respect of the Transferred Sites or the Alternate Site (as the case may be).  Newco is not in default of any provision of any leases for the Transferred Sites or the Alternate Site (as the case may be). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.12 | Equipment |
|------|-----------|

|   | (a) | All accounts and notes receivable included in the Transferred Business have arisen in the ordinary course of business. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All accounts and notes payable included in the Transferred Business have arisen in the ordinary course of business. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

| 5.14 | Intellectual Property |
|------|-----------------------|

| 5.15 | Material Transferred Contracts |
|------|--------------------------------|

|   | (a) | Section 5.15(a) of the Seller Disclosure Schedule sets forth an accurate and complete list as of the date hereof of each Transferred Contract to which Seller or the Subsidiary is a party as of the date hereof, which: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | is a Transferred Contract or a group of Transferred Contracts to which one of the customers listed in Schedule 5.15(a)(i) is a party; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | is a Transferred Contract or a group of Transferred Contracts to which one of the business partners listed in Schedule 5.15(a)(ii) is a party; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | is a Transferred Contract for the provision of services to one of the IBM end-users listed in Schedule 5.15(a)(iii) to which IBM Japan is a party; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | is a Transferred Contract for a mortgage, indenture, guarantee, loan or credit agreement, security agreement or otherwise relating to indebtedness for borrowed money, other than in the ordinary course of the business, and in each case having an outstanding principal amount in excess of ¥25,000,000; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | is a Transferred Contract for a material license under which Seller or the Subsidiary has obtained a license to use the Intellectual Property of another Person (except for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software programs with a value of less than ¥25,000,000 under which Seller or the Subsidiary is the licensee); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | is a material Transferred Contract (other than the contracts described in Section 5.15(a)(ix) and Section 5.15(a)(xi)) that provides for Seller or the Subsidiary to act as a distributor, dealer, sales representative or authorized service Person; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | is a material Transferred Contract that limits or purports to limit the ability of Seller or the Subsidiary to compete in any line of business or with any Person or in any geographic area; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | is a material Transferred Contract between Seller or the Subsidiary and their respective Affiliates; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | (ix) | is that certain data center service agreement with Infocom Corporation dated June 9, 2008; |
|--------|------|--------------------------------------------------------------------------------------------|

|   | (x) | is that certain stock subscription agreement (kabushiki hikiuke keiyakusho) by and between the Subsidiary and E-net Co., Ltd dated June 1, 2001; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | is a master services agreement for carrier commissions (including the master services agreement with KDDI dated July 1, 2006, the master sales cooperation agreement with NTT Communications Corporation dated May 22, 2000 and the master sales agreement with Nihon Telecom Corp. (Softbank) dated December 28, 2001). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Except as disclosed in Schedule 5.15(b) of the Seller Disclosure Schedule, Seller has made available to Buyer an accurate and complete copy of each Material Transferred Contract (excluding individual purchase orders).  With respect to each such Material Transferred Contract, none of the Seller, the Subsidiary or Newco, nor, to the Seller’s Knowledge, any other party to the Material Transferred Contract is in material breach or material default under the Material Transferred Contract except for such breaches or defaults as to which requisite waivers or consents have been obtained.  To the Seller’s Knowledge, each Material Transferred Contract is enforceable as to Seller or the Subsidiary (as of the date hereof) and, subject to the relevant Consents being obtained, Newco (as of the Closing Date), in accordance with its terms except to the extent it has previously expired in accordance with its terms and subject to (i) Laws of general application relating to bankruptcy, insolvency and the relief of debtors, and (ii) rules of Law governing specific performance, injunctive relief and other equitable remedies. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.16 | Tax Matters |
|------|-------------|

| 5.17 | Environmental, Health and Safety Matters |
|------|------------------------------------------|

| 5.18 | Governmental Authorizations |
|------|-----------------------------|

| 5.19 | Compliance with Laws |
|------|----------------------|

----

| 5.20 | Product Warranties; Defects; Liability |
|------|----------------------------------------|

|   | (a) | Except as disclosed in Section 5.20 of the Seller Disclosure Schedule (and except for other Liabilities for which there is a reserve which meets the standards described in the following sentence), to Seller’s Knowledge, each product manufactured, sold, leased, licensed, delivered or installed or each service provided by the Subsidiary, Seller or Newco with respect to the Transferred Business (collectively, the “Products”) is, and at all times has been, in compliance with all applicable Laws.  None of the Subsidiary, Seller or Newco has any Liability (and, to Seller’s Knowledge, there is no basis for any present or future action giving rise to any Liability) for the replacement or repair of any Products or other damages in connection with any Products, subject only to the reserve for product warranty claims set forth on the face of the December 2009 Financial Statements, as adjusted for the passage of time in accordance with GAAP, applied on a basis consistent with the principles applied in the preparation of the December 2009 Financial Statements, which reserve is adequate to address all such Liabilities.  Each Product contains adequate warnings, the content and display of which conform to applicable Laws and current industry practice. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except as disclosed in Section 5.20 of the Seller Disclosure Schedule, to Seller’s Knowledge, no Product is subject to any guaranty, warranty, or other indemnity by the Subsidiary or Seller (as of the date of this Agreement) or Newco (as of the Closing Date) beyond the applicable standard terms and conditions of sale, lease, service or license agreement.  Section 5.20 of the Seller Disclosure Schedule includes a summary of such standard terms and conditions of all sale, lease, service or license agreements (including the applicable guaranty, warranty, and indemnity provisions). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.21 | Insurance |
|------|-----------|

| 5.22 | Legal Proceedings |
|------|-------------------|

| 5.23 | Employment and Labor Matters |
|------|------------------------------|

|   | (a) | Section 5.23(a) of the Seller Disclosure Schedule is a complete and accurate list of all work rules (shugyo kisoku, including any accompanying rules such as kyuyo kitei) and all agreements with labor unions (roudoukyoyaku), agreements with the person representing the majority of workers (roushikyotei) or any committee of Seller and AT&T Japan Ltd. in effect as of the date of this Agreement established under the applicable laws, including the Labor Standards law of Japan.  Seller and AT&T Japan Ltd. are in material compliance with (as of the date hereof) and Newco is in material compliance with (as of the Closing Date), their legal, contractual, statutory, and fiscal obligations of and in relation to all of the Transferred Employees.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Neither Seller nor AT&T Japan Ltd. is (as of the date hereof), or Newco (as of the Closing Date) is, a party to or bound by any collective bargaining agreement in connection with any Transferred Employee and to Seller’s Knowledge, no petition has been filed or Proceeding instituted by any Transferred Employee, Seller, AT&T Japan Ltd. or Newco with any labor relations board seeking recognition of a bargaining representative.  To Seller’s Knowledge, there is no organizational effort currently being made or threatened by or on behalf of any labor union to organize any of the Transferred Employees of Seller or AT&T Japan Ltd. (as of the date hereof) or Newco (as of the Closing Date), other than as disclosed in Section 5.23(b) of the Seller Disclosure Schedule.  To the extent it relates to the Transferred Employees and other than as disclosed in Section 5.23(b) of the Seller Disclosure Schedule, within the 12 months prior to the date of this Agreement, there has not been any labor strike, picketing, slowdown, lockout or other work stoppage or workers’ compensation claim, claim or investigation by any Labor Standards Inspection Office in connection with any non-compliance with any applicable Laws relating to labor related matters (including unpaid wages, wrongful termination of employment or labor, compensation for work-related injuries or illness, unilateral change to conditions of employment, disguised worker dispatching and employment discrimination), claim or investigation of sexual harassment, or other labor disputes of a similar nature or, to Seller’s Knowledge, threatened between Seller or AT&T Japan Ltd. (as of the date hereof) or Newco (as of the Closing Date), on the one hand, and any of the Transferred Employees, on the other hand, except as would not have a material adverse effect and except for such disputes with individual Transferred Employees arising in the ordinary course of the Transferred Business.  Seller and AT&T Japan Ltd. are (as of the date hereof) and Newco will be (as of the Closing Date) in material compliance with all applicable Laws pertaining to the employment of Transferred Employees, including all such Laws relating to fair employment practices, equal employment opportunities, prohibited discrimination and other similar employment activities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | This Section 5.23 constitutes the sole and exclusive representations and warranties of Seller with respect to any matters relating to employment and labor matters. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.24 | Disclosure |
|------|------------|

| 5.25 | Sufficiency |
|------|-------------|

| 5.26 | New IBM Agreement |
|------|-------------------|

| 5.27 | Disclaimer of Other Representations and Warranties |
|------|----------------------------------------------------|

----

| 6. | REPRESENTATIONS AND WARRANTIES OF BUYER |
|----|-----------------------------------------|

| 6.1 | Corporate Organization; Status |
|-----|--------------------------------|

| 6.2 | Due Authorization |
|-----|-------------------|

| 6.4 | Legal Proceedings |
|-----|-------------------|

| 6.5 | Financial Capacity |
|-----|--------------------|

| 6.6 | Independent Investigation |
|-----|---------------------------|

----

| 7.1 | Closing and Notification |
|-----|--------------------------|

| 7.2 | Access and Investigation |
|-----|--------------------------|

| 7.3 | Operation of the Transferred Business |
|-----|---------------------------------------|

|   | (a) | Until the Closing, except as otherwise set forth in this Agreement (including the Split Agreement and the Business Transfer Agreements), the Seller Disclosure Schedule or as otherwise consented to by Buyer (which consent will not be unreasonably withheld, conditioned or delayed), Seller will, and will cause the Subsidiary, AT&T Japan Ltd. and Newco, as applicable, to (i) conduct the Transferred Business in the ordinary course consistent with past practice in all material respects, (ii) use their commercially reasonable efforts to preserve relationships with their customers and others doing business with them, to the extent it relates to the Transferred Business, (iii) pay punctually any outstanding Liabilities in the ordinary course in accordance with the terms and conditions applicable to such Liabilities including as to the due date for payment and without any prepayments, and (iv) collect all receivables due in accordance with the respective terms and conditions of the agreement under which such receivables are due in a manner consistent with past practice, (v) implement, subject to obtaining any consent from Buyer required under Section 7.3(b), capital expenditures as the necessity arises in a manner consistent with past practice, (vi) prepare and maintain their respective books and records consistent with past practice, in accordance with GAAP (including, without limitation, making necessary depreciations, impairment, disposal and reserves in a timely manner), applied on a basis consistent with the methods applied in the preparation of the December 2009 Financial Statements, and (vii) prepare and deliver to Buyer by the 22nd of each month a monthly estimated balance sheet of the Transferred Business for the immediately preceding month. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Without limiting the generality of Section 7.3(a), until the Closing, except as otherwise set forth in this Agreement (including the Split Agreement and the Business Transfer Agreements), the Seller Disclosure Schedule or as otherwise consented to by Buyer (which consent will not be unreasonably withheld, conditioned or delayed), Seller will not, and will cause Newco, AT&T Japan Ltd. and the Subsidiary not to, in each case with respect to the Transferred Business: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | incur any indebtedness for purposes of raising cash; |
|--------|-----|------------------------------------------------------|

|   | (ii)  | change the general practices of the business with respect to entering into leases from those followed prior to the date of this Agreement in a manner that materially increases the Retained Assets (as defined in the Business Transfer Agreements) or Transferred Assets (as defined in the Business Transfer Agreements) at the expense of increases to Transferred Liabilities by an aggregate amount of ¥20,000,000 or more; |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | waive or release any right or claim of a material value to the Transferred Business other than in the ordinary course of the Transferred Business; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | sell, lease or license, or permit any Encumbrance on, any material portion of the assets of the Transferred Business other than in the ordinary course of the Transferred Business; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | acquire, by merger or consolidation with, or by purchase of all or a substantial portion of the assets or stock of, or by any other manner, any business or entity, or enter into any joint venture, partnership or other similar arrangement for the conduct of the Transferred Business; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | materially change the remuneration or other terms of employment of any Target Employee other than (A) in the ordinary course of the Transferred Business, (B) as required by Law or (C) for retention, incentive and similar payments relating to the consummation of the transactions contemplated by this Agreement; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | materially change the composition of personnel (including, without limitation, a drastic reduction of the workforce and implementation of early retirement plans); |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | amend the organizational documents of Newco; or |
|--------|--------|-------------------------------------------------|

|   | (ix) | declare or pay any dividend or other distribution of assets that would otherwise constitute part of the Transferred Assets; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (x) | create, purchase, redeem, issue or allot or agree to create, purchase, redeem, issue or allot any shares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (xi) | conduct any transaction between Seller, the Subsidiary, AT&T Japan Ltd. or Newco and any Affiliates of AT&T Corp. in a manner and/or on terms inconsistent with the normal practice of the 12 months prior to the date of this Agreement, and in all cases in accordance with any existing policies; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | enter into, modify or terminate any material contract, agreement, transaction or commitment (regardless of whether they are legally binding or not) other than in the ordinary course of the Transferred Business; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | modify or terminate the agreement entered into between Newco and IBM, as referred to in Recital C of this Agreement; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | (xiv) | decide, resolve, enter into agreements relating to, or otherwise carry out, capital expenditures that will become Transferred Liabilities in excess of ¥50,000,000 for any one investment or series of related investments except that such limit shall be ¥150,000,000 for any one investment or series of related investments for capital expenditure incurred in the course of providing services (including but not limited to resale) to Transferred Customers; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xv) | institute or settle any litigation or other legal proceeding having, or which may have, a Material Adverse Effect on the Transferred Business; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xvi) | enter into guarantee, indemnity or other similar agreements other than in the ordinary course of the Transferred Business; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------|

|   | (xvii) | fail to maintain in force insurance policies with limits of indemnity at least equal to, and otherwise on terms no less favorable than, those policies of insurance currently maintained by it, nor permit any of its insurance policies to lapse or do anything which would make any insurance policy void or voidable; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xviii) | change, modify or amend master services agreements for carrier commissions in Section 5.15(a)(xi); or |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | (xix) | agree to take any of the foregoing actions (whether or not in writing). |
|--------|-------|-------------------------------------------------------------------------|

----

| 7.4 | Filings |
|-----|---------|

| 7.5 | Consents |
|-----|----------|

|   | (a) | Seller shall, after the execution of this Agreement and before the Closing, use its best efforts to obtain or cause the relevant third party to obtain, all the necessary Consents of the relevant third parties to the Material Transferred Contracts identified on Schedule 7.5(a) (the “Identified Contracts”) as of the Closing. Buyer shall, as reasonably requested by Seller, cooperate with Seller to the extent reasonable in Seller’s best efforts to obtain such Consents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If there are any such Consents that have not been obtained as of the Closing, Seller and Buyer shall (and Buyer shall cause Newco to) each use its best efforts, to obtain as promptly as practicable after the Closing the Consent of the other parties to such Identified Contracts. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | For purposes of this Section 7.5, “best efforts” of a party shall mean substantial compliance in all material respects with the following:  Appropriate management of Seller and Buyer shall develop a plan to approach each Person from whom Consent is required with respect to each Identified Contract, which plan shall be reasonable in the circumstances (the “Consent Plan”).  Subject to time limitations of Seller’s management in meeting its obligations under this Agreement and not unreasonably interfering with the operation of the Transferred Business, Seller shall endeavor to obtain the Consents in accordance with the strategy developed, including devoting appropriate Seller management to contacting the third party and, where necessary and consistent with the Consent Plan, offering to meet with the third party in person to facilitate obtaining the Consent.  In no event, however, will “best efforts” in this Section 7.5 be deemed to require a Person to undertake extraordinary or unreasonable measures, including the payment of amounts or making of any other concessions to any third party to induce granting such Consent.  In no event shall Seller be required to continue to seek Consents after three (3) months following the Closing Date.  It is recognized that after the Closing, Newco will generally have the personnel with the necessary relationships and abilities to continue to seek Consents; and therefore after the Closing Newco will be the primary lead in the effort to obtain any such remaining Consents; with Seller cooperating to the extent reasonable in Newco’s efforts to obtain such Consents. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | From the date of this Agreement until the Closing, Seller shall provide Buyer reasonable periodic updates as to the status of obtaining such Consents.  After the Closing, Seller shall provide Buyer updates as to the status of obtaining any remaining such Consents as Buyer shall reasonably request.  Seller shall promptly notify Buyer if Seller has Knowledge that after the date of this Agreement Seller has received a written notice from the third party to the Identified Contract that such third party refuses to grant the Consent or otherwise intends to terminate the Identified Contract. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.6 | Public Announcements |
|-----|----------------------|

| 7.7 | Confidentiality |
|-----|-----------------|

|   | (a) | Each of Buyer and Seller will, and will cause its Affiliates and respective officers, directors, employees, lenders, accountants, representatives, agents, consultants and advisors (“Representatives”) to hold in confidence all information (other than such information as may have become publicly available without violation of this Agreement) furnished or made available by such party (“Provider”) to the other party (“Receiver”) in connection with the transactions contemplated by this Agreement and the Ancillary Agreements, as well as all information concerning Provider, its Affiliates or its assets, business or operations contained in any analyses, compilations, studies or other documents prepared by or on behalf of Receiver based on information provided by Provider (collectively, the “Information”).  Receiver will not, without the prior written consent of Provider, release or disclose any Information regarding Provider to any other person, except to Receiver’s own Representatives who need to know the Information in connection with the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, who are informed of the confidential nature of the Information and who agree to maintain the Information as confidential. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding the foregoing, Seller and Buyer may provide Information to third parties or to the public, as the case may be, to the extent reasonably necessary to fulfill their respective obligations under this Agreement and the Ancillary Agreements; as may be reasonably necessary in connection with Tax filings and related matters; and as may be required by any stock exchange or Governmental Body, the Bank of Japan or self regulatory organizations or, subject to Section 7.6 (Public Announcements) and Section 7.7(c) below, as required by applicable Law or as part of arbitral or legal proceedings, filings or other similar processes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In the event Receiver or any person to whom Receiver transmits Information regarding Provider pursuant to this Agreement becomes legally compelled to disclose any of such Information, Receiver will provide Provider with prompt notice to the extent practically possible so that Provider may seek a protective order or other appropriate remedy.  In the event that such protective order or other remedy is not obtained, Receiver will furnish only that portion of the Information which Receiver is legally required to disclose. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If the transactions contemplated by this Agreement are not consummated, Buyer and Seller each agree that:  (i) the Information, except for that portion thereof which consists of analyses, compilations, studies or other documents prepared by or on behalf of Receiver, will be returned to Provider promptly upon Provider’s request therefor; and (ii) that portion of the Information which consists of analyses, compilations, studies or other documents prepared by or on behalf of Receiver will be held by Receiver and kept confidential and subject to the terms of this Section, or will be destroyed.  The obligations of this Section 7.7(d) shall survive termination of this Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | After the Closing and for a period of three (3) years thereafter, except as otherwise contemplated in this Agreement or the Ancillary Agreements (including for the purpose of providing services under the AT&T Global Master Carrier Agreement), Seller shall not and shall cause its Affiliates not to disclose to any third parties, any Information regarding the Transferred Business or any other information regarding the Transferred Business that was or is in the possession of Seller or Subsidiary prior to or as of the Closing. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Notwithstanding anything herein to the contrary, the following shall not constitute Information:  (i) information that was already in the public domain (including through press releases or public disclosures previously authorized or coordinated between the parties) or lawfully in the possession of the Receiver before disclosure by the Provider; (ii) information that is known to the Receiver prior to the time of disclosure by the Provider or independently developed by the Receiver; or (iii) information obtained by the Receiver from a third party legally entitled to disclose the same free of any non-disclosure restrictions. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | It is understood and agreed that nothing in this Section 7.7 shall limit or restrict a party from using any Information to enforce or to defend its rights under this Agreement or any Ancillary Agreement in any legal proceeding, arbitration, administrative proceeding or other similar proceeding. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Notwithstanding anything to the contrary in Section 7.6 or this Section 7.7, nothing in Section 7.6 or this Section 7.7 shall limit or restrict Buyer from, after the Closing, using, or disclosing to any third parties or to the public, any information (including Information) that relates solely to Newco’s Transferred Business. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8 | Corporate Split |
|-----|-----------------|

|   | (a) | On the Closing Date by the Closing, Seller shall cause the Subsidiary to use commercially reasonable efforts to effect, at its own cost, the Corporate Split as provided in the Split Agreement and in accordance with applicable Law. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding anything herein to the contrary, Seller shall, and shall cause the Subsidiary to, report, deliver and submit to Buyer: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | (until the Closing) promptly after becoming aware of such issue, any material issue (including, without limitation, the existence of any objection from creditors during the creditor’s objection giving period) that has arisen or may arise in the course of the Corporate Split, together with reasonable evidence; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | (until the Closing) upon Buyer’s reasonable request, materials and information concerning the Corporate Split; |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (iii) | (until the Closing) promptly after the effectuation of the Corporate Split, notice that the Corporate Split has been completed and effectuated; and |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | (until six (6) months after the effective date of the Corporate Split) promptly after becoming aware of such event, any material basis for the filing of proceedings nullifying the Corporate Split. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.9 | Business Transfer |
|-----|-------------------|

|   | (a) | On the Closing Date by the Closing, Seller shall, and shall cause AT&T Japan Ltd. to, use commercially reasonable efforts to effect the Business Transfer as provided in the Business Transfer Agreements (including the Contribution in Kind) and in accordance with applicable Law. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding anything herein to the contrary, Seller shall, and shall cause AT&T Japan Ltd.  to, report, deliver and submit to Buyer: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | (until the Closing) promptly after becoming aware of such event, any material issue that has arisen or may arise in the course of the Business Transfer, together with reasonable evidence; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | (until the Closing) upon Buyer’s reasonable request, materials and information concerning the Business Transfer; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | (until the Closing) promptly after the effectuation of the Business Transfer, notice that the Business Transfer has been completed and effectuated; and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | (until six (6) months after the effective date of the Business Transfer) promptly after becoming aware of such event, any material basis for the filing of proceedings nullifying the Business Transfer. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller and Buyer shall, and Seller shall cause AT&T Japan Ltd. to, cooperate with each other in good faith in the allocation and transfer of any non-material assets or liabilities to the extent such assets or liabilities are not reflected in the Schedules to the Business Transfer Agreements; provided however that for the purpose of such cooperation, neither Seller or Buyer shall be required to use more than commercially reasonable efforts. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10 | Examination of Delivery and Preparation of Closing Balance Sheet |
|------|------------------------------------------------------------------|

|   | (a) | During the three (3) month period beginning on the Closing Date, Seller shall, and shall cause the Subsidiary and AT&T Japan Ltd. to, provide documents, explanation or any other information reasonably required by Buyer in order for Buyer to verify that all the Transferred Assets, Transferred Contracts, Transferred Sites and Transferred Business have been transferred, and any liabilities other than Transferred Liabilities have not been transferred, to Newco through Corporate Split and Business Transfer.  Notwithstanding anything herein to the contrary, Seller shall take all reasonable measures to remedy any lack of delivery of Transferred Assets, Transferred Contracts, Transferred Sites and Transferred Business to Newco and any wrongful delivery of assets, liabilities or other items that do not belong to the Transferred Business to Newco in accordance with good faith discussions between Buyer and Seller. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b) | During the three (3) month period beginning on the Closing Date, Buyer shall, and shall cause Newco to, provide documents, explanation or any other information reasonably required by Seller in order for Seller to perform its obligations under Section 7.10(a). |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | During the three (3) month period beginning on the Closing Date, Buyer and Seller shall cooperate in preparation of a balance sheet of Newco as of the Closing Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.11 | New Customer Contracts |
|------|------------------------|

|   | (a) | a New Customer Contract entered into with a Transferred Customer shall be treated as a Transferred Contract; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (b) | a New Customer Contract entered into with a Retained Customer shall be treated as a Retained Contract; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (c) | a New Customer Contract with a customer other than a Transferred Customer or a Retained Customer shall be treated as either a Transferred Contract or a Retained Contract based on the same methodology used to identify customers of the Business as either Transferred Customers or Retained Customers for purposes of this Agreement; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a New Customer Contract with a customer that is both a Transferred Customer and a Retained Customer shall be treated as a Transferred Contract if such New Customer Contract is for JNOS Services or as a Retained Contract if such New Customer Contract is for GS Services. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.12 | New IBM Agreement |
|------|-------------------|

| 7.13 | Transferred Sites |
|------|-------------------|

|   | (a) | Upon written notice from Buyer, Seller will pay to Buyer, in immediately available funds, amounts incurred by Buyer to restore and reinstate the Transferred Sites (including any Transferred Sites which are sub-leased to Newco) to their original condition as may be required under the terms of the respective leases for the Transferred Sites; provided however that the amount paid by Seller to Buyer for each Transferred Site pursuant to this Section 7.13(a) will in no event exceed the amount set out in Schedule 7.13(a) against each Transferred Site.  The aggregate of the restoration and reinstatement costs for all the Transferred Sites specified in Schedule 7.13(a) is equal to the amount reflected on the LLC Interim Balance Sheet (“Reserved Reinstatement Amount”). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | With respect to the Transferred Sites where the Consent of the lessor is required for (i) the split of the existing lease agreement for the lease of the Shin Nikko Building located at 2-10-1 Toranomon, Minato-ku, Tokyo as outlined in Schedule 5.11(a), (ii) the assignment of the lease agreement, or (iii) the sub-lease of the leased premises to Newco, Seller and Buyer each will use its commercially reasonable efforts, and cooperate with each other, to obtain such Consent as promptly as practicable. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In the event that the requisite Consent for (i) or (ii) is not given by the Closing Date, to the extent permitted by the respective lease agreements, Seller shall sub-lease the Transferred Sites to Newco on substantially the same terms and conditions as the underlying lease agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Except as the parties may otherwise agree, with respect to a Transferred Site for which an Alternate Site is utilized, (i) Seller shall bear all liabilities in relation to the Transferred Site under the respective lease agreement retained by Seller, including rental payments and restoration and reinstatement costs at the expiration or termination of the lease agreement, and (ii) Newco shall fully bear all costs and expenses in relation to the Alternate Site, including rent, costs for securing the Alternate Site and costs for restoration and reinstatement (if any). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.14 | Suppliers |
|------|-----------|

|   | (a) | Circuits.  On or as soon as practicable after Closing, file with each of NTT, KDDI and Softbank (each a “Carrier”) a circuit owner change notification, in the form prescribed by each Carrier, specifying Newco as owner of the circuits used in the Transferred Business (excluding the circuits Seller uses to provide Newco with GS Services pursuant to the AT&T Global Master Carrier Agreement) as of the date of this Agreement as listed in Schedule 7.14(a), which list shall be updated as of Closing to reflect changes to circuits in the ordinary course of business between the date of this Agreement and Closing; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Non-Payroll Workers.  To the extent that there are contracts for the provision of services by non-payroll workers that are engaged exclusively in the Transferred Business, arrange for the transfer of such contracts to Newco pursuant to either the LLC Business Transfer Agreement or the LTD Business Transfer Agreement; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Other Supplier Contracts.  To the extent that there are any other contracts in effect as of the date of this Agreement that are for the supply of goods or services used exclusively in the Transferred Business (excluding the supply of goods or services Seller uses to provide Newco with GS Services pursuant to the AT&T Global Master Carrier Agreement), Seller shall use commercially reasonable efforts to arrange for the transfer of such contracts to Newco pursuant to either the LLC Business Transfer Agreement or the LTD Business Transfer Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.15 | Shared Business Partner Contracts |
|------|-----------------------------------|

|   | (a) | Seller will, between the date of this Agreement and the Closing Date, use commercially reasonable efforts to enable Newco to enter into an agreement with each Shared Business Partner (each such agreement, a “Shared Business Partner Assumption Agreement”) that allows Newco to, in effect, assume substantially the same rights, obligations and status of the Subsidiary under each Shared Business Partner Contract, to the extent that such Shared Business Partner Contract pertains to the services provided to the Transferred Business End-Users. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If by the date on which the Subsidiary and Newco enter into the Split Agreement, Newco has not entered into a Shared Business Partner Assumption Agreement with any of the Transferred Business Partners, Seller will arrange for the transfer of each Shared Business Partner Contract with each such Transferred Business Partner to Newco pursuant to the Corporate Split. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller and Buyer will cooperate to establish an agency type or other similar arrangement (“Agency Arrangement”) reasonably satisfactory to Seller and Buyer with respect to the Retained Business End-Users under the Shared Business Partner Contracts transferring to Newco pursuant to the Corporate Split.  Under each Agency Arrangement, Newco would enforce for the benefit of the Subsidiary, with the Subsidiary assuming and agreeing to perform and pay Newco’s Liabilities and expenses, any and all rights of Newco against the Transferred Business Partner and remit to the Subsidiary, any amount paid by the Transferred Business Partner for the provision of the services to such Retained Business End-User.  Buyer shall, or shall cause Newco to, terminate each Agency Arrangement, in part corresponding to each Retained Business End-User when the service contract or purchase order between each Transferred Business Partner and the respective Retained Business End-User expires or terminates. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | If by the Closing Date, Newco has not entered into a Shared Business Partner Assumption Agreement with any of the Retained Business Partners, Seller and Buyer will, and Seller will cause the Subsidiary to, cooperate to establish an Agency Arrangement reasonably satisfactory to Seller and Buyer with respect to each such Transferred Business End-User under the respective Shared Business Partner Contract with the Retained Business Partner.  Under each Agency Arrangement, the Subsidiary would enforce for the benefit of Newco, with Newco assuming and agreeing to perform and pay the Subsidiary’s Liabilities and expenses, any and all rights of the Subsidiary against the Retained Business Partner and remit to Newco any amount paid by the Retained Business Partner for the provision of the services to the Transferred Business End-Users.  The Subsidiary shall terminate each Agency Arrangement, in part corresponding to each Transferred Business End-Users, when the service contract or purchase order between each Retained Business Partner and the respective Transferred Business End-User expires or terminates. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | During the Restricted Period, on expiration or termination of any service contract or purchase order outstanding under a Shared Business Partner Contract between: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the Subsidiary and a Retained Business Partner in relation to a Transferred Business End-User, Seller shall cause the Subsidiary to reject any new purchase order or request for provision of services in relation to such Transferred Business End-User; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Newco and a Transferred Business Partner in relation to a Retained Business End-User, Buyer shall cause Newco to reject any new purchase order or request for provision of services in relation to such Retained Business End-User. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Seller will, between the date of this Agreement and the Closing Date, use commercially reasonable efforts to, or cause the Subsidiary to, enter into a separate agreement with each Shared Global Services Customer for the Shared Global Services Customer’s Japan site(s) (“Shared Global Services Separation Agreement”).  Each such Shared Global Services Separation Agreement shall be on substantially the same terms and conditions as the corresponding Shared Global Services Customer Contract. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If by the date on which the Subsidiary and Newco enter into the Split Agreement, Seller or the Subsidiary has entered into a Shared Global Services Separation Agreement with any of the Shared Global Services Customer, Seller will arrange for the transfer of the Shared Global Services Separation Agreement to Newco pursuant to the Corporate Split. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If by the Closing Date, Seller or the Subsidiary has not entered into a Shared Global Services Separation Agreement with any of the Shared Global Services Customers, Seller will pay to Buyer 10% of the Seller’s revenues under any outstanding Shared Global Services Customer Contract (including any outstanding purchase order under any such Shared Global Services Customer Contract) in relation to such Shared Global Services Customer’s Japan site(s) until the expiration or termination of such Shared Global Services Customer Contract (or purchase order) or 12 months, whichever is shorter.  For reference, Schedule 1.1(e) sets out the billed revenue for the Japan site(s) of all of the Shared Global Services Customers in 2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.17 | IBM End-Users |
|------|---------------|

|   | (a) | Schedule 7.17(a) contains a list of IBM’s end-users whose Consents have to be obtained for the transfer of the IBM End-User Contracts (“IBM End-Users Requiring Consents”) between the date of this Agreement and the Closing Date. Seller will use commercially reasonable efforts to obtain such Consents in cooperation with IBM. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If by the Closing Date, the Consents have not been obtained, Seller and Buyer will cooperate to establish an Agency Arrangement reasonably satisfactory to Seller and Buyer with respect to the IBM End-User Contracts.  Under each Agency Arrangement, Seller would enforce for the benefit of Newco, with Newco assuming and agreeing to perform and pay Seller’s Liabilities and expenses, any and all rights of Seller against the IBM End-Users and remit to Newco any amount paid by the IBM End-Users for the provision of the services under the IBM End-User Contracts.  Seller shall terminate each Agency Arrangement, in part corresponding to each IBM End-User, when the service contract or purchase order of the IBM End-User under the respective IBM End-User Contract expires or terminates. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | During the Restricted Period, on expiration or termination of any service contract or purchase order outstanding under the respective IBM End-User Contract after Closing, Seller shall reject any new purchase order or request for provision of services in relation to such IBM End-User. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.18 | Return or Destruction of Data |
|------|-------------------------------|

| 7.19 | Regional Partner |
|------|------------------|

| 7.20 | NTT Shares |
|------|------------|

----

| 8. | EMPLOYEES |
|----|-----------|

| 8.1 | Employment Offer |
|-----|------------------|

|   | (a) | Seller shall cause Newco to extend a written offer of employment (“Employment Offer”) to each of the Target Employees. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each Employment Offer extended to the Target Employees by Newco shall: |
|--------|-----|------------------------------------------------------------------------|

|   | (i)  | be conditional upon the completion of the Closing; |
|--------|-----------|----------------------------------------------------|

|   | (ii) | be for terms and conditions that are substantially equivalent to those in effect immediately prior to the Closing Date, excluding the terms and conditions related to the Seller Pension Plans, which will be replaced by the terms and conditions that are in accordance with the current Buyer Pension Plan; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | provide employee benefits that in the aggregate are substantially equivalent to those provided to the Target Employee immediately prior to the Closing Date, excluding the benefits related to the Seller Pension Plans; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | be for a position with job duties that are in principle substantially similar to the job duties of the position that the Target Employee held immediately prior to the Closing Date; provided however that, the position and job duties may be changed to meet the reasonable needs of Newco’s business operations; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | be for employment at a location within 25 km of the location that the Target Employee works at immediately prior to the Closing Date; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | require a Target Employee who wishes to accept the Employment Offer to execute a letter of resignation (“Resignation Letter”) under which such Target Employee agrees to resign from the Subsidiary or AT&T Japan Ltd. on the terms and subject to the conditions set forth in the Resignation Letter . |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Newco Employment Terms and Conditions |
|-----|---------------------------------------|

|   | (a) | Newco shall not, and Buyer shall cause Newco not to, prior to the first anniversary of the Closing Date, in relation to any Employment Offer made pursuant to this Section 8: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | alter, modify or withdraw any of the terms contained in the Employment Offer except for (i) any change to the base salary, position/job duties or the place of work, which change has to be in accordance with this Section 8.2(a), or (ii) any alteration, modification or withdrawal where such alteration, modification or withdrawal is justified under applicable laws and regulations in light of any wrong-doing on the part of the respective Transferred Employee, including (A) absence without justifiable reason, (B) injury or sickness not sustained in the course of employment and necessitates a reduction in working hours, workload or responsibilities, or (C) conduct which is in violation of any Laws or public policy (for the avoidance of doubt this exception (ii) shall apply to Sections 8.2(a)(iv) and 8.2(a)(v)); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | terminate the employment of any Transferred Employee unless the termination is for cause and is justified in light of the work rules of Newco, and relevant laws and regulations; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | amend the work rules of Newco to the detriment of the Transferred Employee; |
|--------|-------|-----------------------------------------------------------------------------|

|   | (iv) | change the position/job duties of the Transferred Employee described in the Employment Offer except in the ordinary course of business or for Newco’s operational requirements, provided that any such change is for promotional or developmental purposes and does not involve any demotion or downgrade;   |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | decrease the base salary of the Transferred Employee; or |
|--------|-----|----------------------------------------------------------|

|   | (vi) | change the physical place of work to a location that is more than 25 km away from the original place of work unless consent is obtained from the Transferred Employee. Each Transferred Employee shall be provided appropriate relocation benefits in the event of a relocation. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Newco shall, and Buyer shall cause Newco to, establish and maintain, the following benefits for the Transferred Employees for at least the period up to the first anniversary of the Closing Date: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)  | Relo Club Membership; |
|--------|-----------|-----------------------|

|   | (ii) | a savings plan for the Transferred Employees as currently maintained by Seller or AT&T Japan Ltd. (as the case may be), where certain amounts are deducted from the employees’ monthly salary and deposited into a bank account established for savings purposes; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | baby-sitting services provided to individual Target Employees equivalent to the baby-sitting discount coupons provided by Seller or AT&T Japan Ltd. to a Transferred Employee prior to the Closing Date or which a Transferred Employee is eligible to receive before the first anniversary after returning from maternity leave; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iv) | any education or professional certification program sponsored by Seller or AT&T Japan Ltd. (as the case may be) in which a Transferred Employee participates in prior to the Closing Date, to the extent that such program is available in Japan and reasonably necessary for a Transferred Employee in the ordinary course of business. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Newco shall, and Buyer shall cause Newco to, include the years of continuous employment with Seller or AT&T Japan Ltd. (as the case may be) as part of the years of continuous employment with Newco when calculating periods for paid leave and administrative leave. Seller and Buyer acknowledge that Newco will not rollover the Transferred Employee’s years of continuous employment with Seller or AT&T Japan Ltd. (as the case may be) to the Buyer Pension Plan. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Transition Bonus |
|-----|------------------|

----

|   | (a) | On or before the Closing, Seller shall, and shall cause AT&T Japan Ltd. to: (i) terminate the Seller Pension Plans, (ii) cause all assets of the Seller Pension Plans to be paid to the Transferred Employees, and (iii) make a lump-sum payment of all retirement benefits that each respective Transferred Employee is eligible to receive from Seller or AT&T Japan Ltd. (as the case may be) in the case of an involuntary retirement pursuant to the employment terms and conditions currently applied to the respective Transferred Employee as of the date of this Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In the event that any of the Target Employees are not Transferred Employees for whatever reason, Buyer shall make a one-time payment to Seller or AT&T Japan Ltd. (as the case may be) at Closing equal to ¥890,000 multiplied by the number of the Target Employees who are permanent employees (seishain) who do not become Transferred Employees at Closing; provided, however, Target Employees who leave the business without requiring a severance payment between the signing of this Agreement and Closing and Target Employees who have been removed from Schedule 8 upon the agreement of Seller and Buyer will not be counted in the number of such Target Employees. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Starting on the Closing Date, Buyer shall, or shall cause Newco to, provide each Transferred Employee a pension plan that is no less favorable to the Transferred Employee than the pension plan of a similarly situated employee of Buyer (“Buyer Pension Plan”). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If any Transferred Employee cannot be covered by the Buyer Pension Plan from the Closing Date, Buyer shall provide a RAP (retirement annuity policy) solution and accrue for it appropriately.  Buyer shall rollover the accrual into the Buyer Pension Plan when each such Transferred Employee is covered by the Buyer Pension Plan. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Seller shall, or shall cause an Affiliate of Seller to, pay to each Target Employee who becomes a Transferred Employee the amount set out in the pension reduction incentive column for that Target Employee on the Closing Date. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Starting on the Closing Date until at least the first anniversary of the Closing Date, Buyer shall, or shall cause Newco to, provide each Transferred Employee life insurance coverage comparable to the group life insurance coverage (sogo fukushi dantai teiki hoken) each Transferred Employee had prior to Closing.  Buyer or Newco shall be responsible for paying all premiums due to maintain this life insurance coverage for the Transferred Employees. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Transferred Employee Liabilities |
|-----|----------------------------------|

|   | (a) | Seller shall, and shall cause AT&T Japan Ltd. to, satisfy at or before the Closing, all of the following Liabilities (as of the Closing Date) as an employer of the Transferred Employees: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the Seller Pension Plans applicable to each of the Transferred Employees; |
|--------|-----|---------------------------------------------------------------------------|

|   | (ii) | all benefits under executive plans accrued prior to the Closing; |
|--------|------|------------------------------------------------------------------|

|   | (iii) | all incentives, awards and bonuses attributable to the period prior to the Closing; and |
|--------|-------|-----------------------------------------------------------------------------------------|

|   | (iv) | any amounts to be reimbursed to employees for payments made by such employees in the course of carrying out their work duties during the period prior to Closing (tatekae mibarai seisankin). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9. | CONDITIONS PRECEDENT TO SELLER’S AND BUYERS OBLIGATION TO CLOSE |
|----|-----------------------------------------------------------------------|

| 9.1 | Consummation of Corporate Split and Business Transfer |
|-----|-------------------------------------------------------|

| 9.2 | Governmental Authorizations |
|-----|-----------------------------|

| 9.3 | No Prohibition |
|-----|----------------|

| 9.4 | Employees |
|-----|-----------|

| 10. | CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE |
|-----|-----------------------------------------------------------|

| 10.1 | Accuracy of Representations |
|------|-----------------------------|

| 10.2 | Performance |
|------|-------------|

| 10.3 | Additional Documents |
|------|----------------------|

| 10.4 | Ancillary Agreements |
|------|----------------------|

| 10.5 | Material Adverse Effect |
|------|-------------------------|

----

| 11. | CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE |
|-----|------------------------------------------------------------|

| 11.1 | Accuracy of Representations |
|------|-----------------------------|

| 11.2 | Buyer’s Performance |
|------|---------------------------|

| 11.3 | Additional Documents |
|------|----------------------|

| 11.4 | Ancillary Agreements |
|------|----------------------|

| 11.5 | NTT Shares |
|------|------------|

| 12. | TERMINATION |
|-----|-------------|

| 12.1 | Termination Events |
|------|--------------------|

|   | (a) | by mutual consent of Buyer and Seller; |
|--------|-----|----------------------------------------|

|   | (b) | by Buyer (so long as Buyer is not then in material breach of any of its representations, warranties or covenants contained in this Agreement) if there has been a breach of any of Seller’s representations, warranties or covenants contained in this Agreement, which would result in the failure of a condition set forth in Sections 10.1, 10.2 and 10.5, and which breach has not been cured within 30 days after written notice of the breach has been delivered to Seller from Buyer; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | by Seller (so long as Seller is not then in material breach of any of its representations, warranties or covenants contained in this Agreement) if there has been a breach of any of Buyer’s representations, warranties or covenants contained in this Agreement, which would result in the failure of a condition set forth in Section 11.1 or Section 11.2, and which breach has not been cured within 30 days after written notice of the breach has been delivered to Buyer from Seller; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | by either Buyer or Seller if any Governmental Body has issued a nonappealable final Judgment or taken any other nonappealable final action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement; provided however that the right to terminate this Agreement under this Section 12.1(d) will not be available to any party whose failure to fulfill any material covenant under this Agreement has been the cause of or resulted in the action or event described in this Section 12.1(d) occurring; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | by Buyer if the Closing has not occurred (other than through the failure of Buyer to comply fully with its obligations under this Agreement) on or before six (6) months from the date of this Agreement; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | by Seller if the Closing has not occurred (other than through the failure of Seller to comply fully with its obligations under this Agreement) on or before six (6) months from the date of this Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.2 | Effect of Termination |
|------|-----------------------|

| 13. | INDEMNIFICATION; REMEDIES |
|-----|---------------------------|

| 13.1 | Survival, Right to Indemnification; Waiver |
|------|--------------------------------------------|

|   | (a) | All representations and warranties contained in this Agreement and the Sellers Disclosure Schedule will survive the Closing until the one-year anniversary of the Closing Date; provided however that Section 5.16 (Tax Matters), and the right to make claims thereunder, will survive 60 days following the expiration of the applicable statute of limitations.  All covenants contained in this Agreement will survive the Closing until the expiration of the applicable statute of limitations or for such shorter period explicitly specified therein. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b) | All claims for indemnification under this Agreement must be asserted pursuant to a Claim Notice given prior to the expiration of the applicable survival period set forth in this Section 13.1; provided however that any representation, warranty or covenant that is the subject of a claim for indemnification which is asserted pursuant to a Claim Notice given after the Closing Date within the survival period specified in this Section 13.1 will survive until, but only for purposes of, the resolution of such claim. |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Indemnification by Seller |
|------|---------------------------|

|   | (a) | Subject to the limitations expressly set forth in Section 13.1 and Section 13.5, Seller will indemnify and hold harmless Buyer and its directors, officers, employees, agents, representatives, stockholders and Affiliates (collectively, the “Buyer Indemnitees”) from and against any and all Losses incurred by Buyer Indemnitees arising or resulting from (a) any breach of any representation or warranty set forth in Article 5 and (b) any breach of any covenant of Seller set forth in this Agreement; provided however that: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the limitation set forth in Section 13.5(a)(i) shall not apply to a breach of Section 5.7(c) where such breach is caused by the willful misconduct of Seller, the Subsidiary, Newco or AT&T Japan Ltd., or Section 7.13(a); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the limitation set forth in Section 13.5(a)(ii) shall not apply to a breach of Section 5.5, Section 5.7(c) (where such breach is caused by the willful misconduct of Seller, the Subsidiary, Newco or AT&T Japan Ltd.), Section 7.3, Section 7.10 or Section 7.13(a); |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in the event of a breach of Section 5.7(c) by Seller, the Subsidiary, Newco or AT&T Japan Ltd., where such breach is caused by a breach of obligations under agreements with third parties related to the Transferred Business, then solely with respect to Losses to the extent caused by such breaches, the amount of the Deductible shall be ¥200,000,000 (such amount being, the “5.7(c) Deductible”) rather than 5% of the Purchase Price as contemplated in Section 13.5(a)(ii).  For the avoidance of doubt, (a) all Losses of the nature described in this Section 13.2(a)(iii) shall count toward the 5.7(c) Deductible, and up to ¥200,000,000 of Losses caused by breaches of the nature described in this Section 13.2(a)(iii) shall count toward the Deductible set forth in Section 13.5(a)(ii) together with any Losses (to the extent they are Losses subject to indemnity by Seller hereunder) of any other nature and (b) any Losses of a nature other than as described in this Section 13.2(a)(iii) shall not count toward the 5.7(c) Deductible;  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv)  | the limitation set forth in Section 13.5(a)(iii) shall not apply to a breach of Section 5.7(c) where such breach is caused by the willful misconduct of Seller, the Subsidiary, Newco or AT&T Japan Ltd. |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding the above, Seller’s indemnification with respect to Taxes shall be governed by Article 14. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

----

| 13.3 | Indemnification by Buyer |
|------|--------------------------|

| 13.4 | Procedure for Indemnification |
|------|-------------------------------|

|   | (a) | A party that seeks indemnity under this Article 13 (an “Indemnified Party”) will give written notice (a “Claim Notice”) to the party from whom indemnification is sought (an “Indemnifying Party”) whether the Losses sought arise from matters solely between the parties or from Third Party Claims described in Section 13.4(b).  The Claim Notice must contain (i) a description and, if known, the estimated amount of any Losses incurred or reasonably expected to be incurred by the Indemnified Party, (ii) a reasonable explanation of the basis for the Claim Notice to the extent of the facts then known by the Indemnified Party and (iii) a demand for payment of those Losses. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If the Indemnified Party seeks indemnity under this Article 13 in response to a claim or Proceeding by another Person not a party to this Agreement (a “Third Party Claim”), then the Indemnified Party will give a Claim Notice to the Indemnifying Party within 10 days after the Indemnified Party has received notice or otherwise learns of the assertion of such Third Party Claim and will include in the Claim Notice (i) the facts constituting the basis for such Third Party Claim and the amount of the damages claimed by the other Person, in each case to the extent known to the Indemnified Party, accompanied by reasonable supporting documentation submitted by such third party (to the extent then in the possession of the Indemnified Party) and (ii) the assertion of the claim or the notice of the commencement of any Proceeding relating to such Third Party Claim; provided however that no delay or deficiency on the part of the Indemnified Party in so notifying the Indemnifying Party will relieve the Indemnifying Party of any Liability under this Agreement except to the extent such delay or deficiency prejudices or otherwise adversely affects the rights of the Indemnifying Party with respect thereto. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In the event of a Third Party Claim, the Indemnifying Party will be entitled to participate in the defense thereof at its own expense and to the extent permitted by law, and, if it so chooses, assume at any time control of the defense thereof with counsel reasonably satisfactory to the Indemnified Party by giving to the Indemnified Party written notice of its intention to assume control of the defense of such Third Party Claim to the extent permitted under applicable Law; provided however that to the extent permitted by applicable Law, the Indemnified Party may participate in the defense of such Third Party Claim with its own counsel at its own expense. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The Indemnifying Party will not agree to any settlement of, or consent to the entry of any Judgment (other than a Judgment of dismissal on the merits without costs) arising from, any such Third Party Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld); provided however that the consent of the Indemnified Party will not be required if the Indemnifying Party agrees in writing to pay any amounts payable pursuant to such settlement or any Judgment and such settlement or Judgment includes a full, complete and unconditional release of the Indemnified Party from further Liability.  The Indemnified Party will not agree to any settlement of, or the entry of any Judgment (other than a Judgment of dismissal on the merits without costs) arising from, any such Third Party Claim without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.5 | Limitations on Liability |
|------|--------------------------|

|   | (a) | Cap and Deductible |
|--------|-----|--------------------|

|   | (i) | no indemnification payments will be made by or on behalf of the Seller under this Agreement in respect of any individual claim or series of claims having the same nature or origin where the Losses relating thereto are less than ¥2,000,000 and such items less than ¥2,000,000 will not be aggregated for purposes of calculating the Deductible in clause (ii) below. For avoidance of doubt, examples of claims having the same nature or origin include each of the following type of claim: (i) claims relating to failure to pay circuit fees charged by the Carriers, (ii) claims relating to failure to pay amounts due under contracts for the supply of non-payroll workers (haken keiyaku), (iii) claims relating to failure to pay amounts due under outsourcing contracts (gyomu itaku keiyaku), and (iv) claims relating to failure to pay rent, in each case relating solely to the Transferred Business; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | subject to Section 13.2(a)(iii), no indemnification payments will be made under this Agreement until the aggregate amount of Losses for which each party to this Agreement would (but for this clause (ii)) be liable thereunder exceeds 5% of the Purchase Price (such amount being, the “Deductible”), and then only to the extent of such excess over the Deductible; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the aggregate total amount in respect of which each party to this Agreement will be liable to indemnify and hold harmless the Indemnified Party pursuant to this Agreement will not exceed 15% of the Purchase Price. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Knowledge of Breach |
|--------|-----|---------------------|

|   | (c) | Tax Refunds, Insurance Proceeds and Other Payments |
|--------|-----|----------------------------------------------------|

|   | (d) | Mitigation |
|--------|-----|------------|

|   | (e) | Subrogation |
|--------|-----|-------------|

----

| 13.6 | Exclusive Remedy |
|------|------------------|

|   | If the Closing occurs, then from and after the Closing the sole and exclusive remedy of Buyer for breach of any representation or warranty or any other provision of this Agreement will be pursuant to the indemnification obligations set forth in Article 13 or Article 14; provided however, that, (i) Buyer shall be entitled to specific performance and injunctive relief to the extent allowed under Japanese law, and (ii) no claim for or in connection with fraud, intentional misrepresentation, or willful misconduct shall be subject to the limitation set forth in this Section 13.6, nor shall any provision of this Section 13: (A) be interpreted as an agreement as to the amount of indemnification as contemplated in Article 420 of Civil Code of Japan, or (B) otherwise prohibit Buyer from exercising any remedy under the Laws of Japan applicable to such a claim. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | TAX MATTERS |
|-----|-------------|

| 14.1 | Liability and Indemnification for Taxes |
|------|-----------------------------------------|

|   | (a) | If the Closing occurs, subject to Section 14.1(e), and except to the extent any Taxes are reserved or accrued on the Balance Sheet, Seller will indemnify the Buyer Indemnitees against all Losses (i) for all Taxes of Newco that are attributable to Pre-Closing Periods, (ii) for all Taxes attributable to any breach of Seller’s representations and warranties set forth in Section 5.16 and (iii) for all Taxes of Newco (including as secondary tax liability or dai-niji nozei gimu as defined under Article 38 of the National Tax Collection Act and joint tax liability or rentai nofu no sekinin as defined under Article 9-2 of the Act on General Rules for National Tax) attributable to any breach by Seller of Section 14.2(b). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If the Closing occurs, Buyer will indemnify the Seller Indemnitees against all Losses for all Taxes of Newco that are attributable to any Post-Closing Period. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If the Closing occurs, Buyer will indemnify the Seller Indemnitees against all Taxes and Losses of Seller that arise from or are attributable to any breach by Buyer of Section 14.7 or Section 14.8. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Seller will not be required to indemnify the Buyer Indemnitees for reductions in any Tax Attributes.  Seller will not be required to indemnify the Buyer Indemnitees against Losses for Taxes attributable to a Pre-Closing Period to the extent such Losses for Taxes could be reduced under applicable Law by reason of Tax Attributes arising in the Pre-Closing Period (assuming for the purposes of this sentence that such Tax Attributes are not used to reduce Taxes in the Post-Closing Period). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | This Article 14 constitutes the sole and exclusive responsibility of Seller or Buyer with respect to indemnification relating to Losses for Taxes. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Tax Return Filing; Audit Responsibilities |
|------|-------------------------------------------|

|   | (a) | Except as set forth in Section 14.2(b), Buyer will control and be responsible for the filing of all Tax Returns required to be filed with respect to Newco which relates solely to Post-Closing Periods.  All such Tax Returns will be completed in accordance with past practice to the extent permitted by applicable Law.  Buyer will cause Newco to make all payments required with respect to any such Tax Return. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If the Closing occurs, Seller will (i) timely file, and will cause Subsidiary and AT&T Japan Ltd. to timely file, all Tax Returns as appropriate to report the Business Transfer and the Corporate Split, and (ii) timely pay, and will cause Subsidiary and AT&T Japan Ltd. to pay, all Taxes shown to be due on such Tax Returns. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | If the Closing occurs, Seller will control and be responsible for the preparation and filing of all Tax Returns of Newco related to Pre-Closing Periods that are required to be filed after the Closing Date.  All such Tax Returns will be completed in accordance with past practice to the extent permitted by applicable Law.  Seller will promptly make all payments to Newco that Newco is required to pay with respect to any such Tax Returns. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In the event that Seller or Buyer is liable under this Agreement for any Taxes of Newco paid by the other party with respect to any Tax Return relating to Newco, prompt reimbursement will be made. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If Buyer or Newco receives notice of a Tax Contest with respect to Newco which could reasonably be expected to cause Seller to have an indemnification obligation under this Article 14, then Buyer will notify Seller in writing of such Tax Contest within five (5) Business Days of receiving such notice.  Seller will have the right to control the conduct and resolution of such Tax Contest; provided however that Seller may decline to participate in such Tax Contest.  If Seller controls the conduct of such Tax Contest, Seller will not resolve such Tax Contest, to the extent such Tax Contest relates to Taxes for any Post-Closing Period, without Buyer’s written consent, which consent will not be unreasonably withheld, conditioned or delayed.  If Seller declines to control a Tax Contest pursuant to this Section 14.2(e), then Buyer will have the right to control the conduct of such Tax Contest; provided however that Buyer will not resolve a Tax Contest without Seller’s written consent, which consent will not be unreasonably withheld, conditioned or delayed.  Each party will bear its own costs for participating in such Tax Contest. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Any refunds (including any interest payable on any refund) and credits attributable to the payment of Taxes of Newco for a Pre-Closing Period will be for the account of Seller, and Buyer will promptly cause Newco to pay to Seller any such refund (including any interest payable on any refund) or credit. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | To the extent not inconsistent with the provisions of this Section 14.2, the procedures of Section 13.4 will apply in the case of any claim for Losses related to Taxes. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | Cooperation |
|------|-------------|

|   | (a) | provide assistance to the other party as reasonably requested in preparing and filing Tax Returns and responding to Tax Contests with respect to Newco; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | make available to the other party as reasonably requested all information, records, and documents relating to Taxes concerning Newco; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | retain any books and records that could reasonably be expected to be necessary or useful in connection with any preparation by the other party of any Tax Return relating to Newco or for any Tax Contest or other examination or Proceeding relating to Taxes of Newco.  Such books and records will be retained until the expiration of the applicable statute of limitations (including extensions thereof). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.4 | Indemnification Payments |
|------|--------------------------|

| 14.5 | No Deduction of Taxes from Purchase Price |
|------|-------------------------------------------|

| 14.6 | Transaction Taxes |
|------|-------------------|

| 14.7 | Intended Tax Treatment |
|------|------------------------|

|   | (a) | Seller agrees that the Business Transfer (i) is a taxable transaction and does not constitute tax-free exchanges under any applicable provisions of the Code, and (ii) will not result in a carryover of tax basis or any other Tax Attributes under any applicable Tax Laws of Japan or the Tax Laws of other jurisdictions (collectively, the “Seller’s Intended Tax Treatment”).  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Buyer agrees that (i) Newco succeeds to the Transferred Assets and assumes the Transferred Liabilities, (ii) the Transferred Assets and Transferred Liabilities will be received and assumed by Newco at fair market value upon the Business Transfer, under Japanese income Tax Law pertaining to taxable business, (iii) the amount of goodwill (“Shisan-chosei-kanjyo” or “Fusai-chosei-kanjyo”) received in connection with the Business Transfer will be determined in accordance with Japanese Corporation Tax Law Article 62(8), and (iv) under Japanese income Tax Laws, no net operating losses or tax credits will be transferred to Newco in connection with the Business Transfer (collectively, the “Buyer’s Intended Tax Treatment”). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Unless otherwise required by a Governmental Body or a court, Seller and Buyer will report consistently with the Seller's Intended Tax Treatment and the Buyer's Intended Tax Treatment, respectively, on all Tax Returns. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | Tax Deductions for Japanese Purposes |
|------|--------------------------------------|

|   | Buyer agrees that it will ensure that Newco will not claim any tax deductions for Japanese income Tax purposes with respect to any portion of the Retained Liabilities that were actually retained by Seller and were actually not (i) transferred to Newco through the Business Transfer or (ii) discharged by Newco, and agrees not to file a Tax Return of Newco in a jurisdiction other than Japan in a manner inconsistent with Section 14.7(b) and this Section 14.8 for a period of five (5) years following Seller’s fiscal year 2010 ending December 31, 2010. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | Usage of Defined Terms |
|------|------------------------|

----

| 15. | NON-COMPETE; NON-SOLICIT |
|-----|--------------------------|

| 15.1 | Restrictions on Seller |
|------|------------------------|

|   | (a) | Seller agrees with Buyer that, except with the consent of Buyer, for a period of 2 years after the Closing Date (“Restricted Period”), neither Seller nor any Affiliate of Seller shall, directly or indirectly, provide to any Transferred Customer: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)  | any JNOS Services; or |
|--------|-----------|-----------------------|

|   | (ii) | any GS Services that would directly replace any GS Services provided to that Transferred Customer by Newco at the same location as were being provided as of the Closing Date. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)  | As of the date of this Agreement, Seller and Buyer acknowledge that neither Seller nor any Affiliate of Seller has any intention to make Seller Business Solicitation to any Domestic Customer during the Restricted Period. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | Exceptions from Restrictions on Seller |
|------|----------------------------------------|

|   | (a) | providing services (including JNOS Services) to a Transferred Customer that has ceased to be a customer of Buyer or its Affiliates (other than as a result of any breach of Section 15.1); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | providing services (including any JNOS Services) as expressly contemplated under this Agreement or any Ancillary Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (c) | (i) | subject at all times to Section 15.2(c)(ii)(A), under which Seller would not replace any JNOS Services of GS Services that are provided to that Transferred Customer by Newco at the same location as were being provided as of the Closing Date, providing services (including JNOS Services) to any Transferred Customer if the revenue to be received by Seller and its Affiliates from the Transferred Customer for services to be provided outside of Japan is reasonably expected to be no less than fifty-one percent (51%) of the total revenue reasonably expected to be received by Seller and its Affiliates from the Transferred Customer with respect to all of such services.  The determination of expected revenue for purposes of this Section 15.2(c) shall be made by Seller in good faith using reasonable methodologies and assumptions.  For the avoidance of doubt, if Seller or its Affiliates enter into arrangements in reasonable good faith with reliance on this Section 15.2(c), Seller and its Affiliates shall not have any restriction under Section 15.1 regardless whether in the future revenue mix changes; |
|--------|-----|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to the extent Seller or any of its Affiliates relies solely on Section 15.2(c) to be in compliance with this Article 15: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------|

|   | (A) | Seller shall not replace any JNOS Services or GS Services that are provided to that Transferred Customer by Newco at the same location as were being provided as of the Closing Date; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | with respect to a particular opportunity that does not directly replace JNOS Services or GS Services that are provided to that Transferred Customer by Newco at the same location as were being provided as of the Closing Date, Seller will give Newco an opportunity to present a bid to Seller to support the applicable portion of the JNOS Services under the Domestic Services Agreement or other agreement as the parties may agree, and will use Newco during the Restricted Period to support the applicable portion of the JNOS Services under the Domestic Services Agreement or other agreement as the parties may agree if Seller determines that the pricing and other terms are the best available to Seller. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.3 | Restrictions on Newco |
|------|-----------------------|

|   | (a) | any GS Services; or |
|--------|-----|---------------------|

|   | (b) | any JNOS Services that would directly replace any JNOS Services provided to that Retained Customer by Seller or the Subsidiary at the same location as were being provided as of the Closing Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Exceptions from Restrictions on Newco |
|------|---------------------------------------|

|   | (a) | providing services (including any GS Services) to a Retained Customer that has ceased to be a customer of Seller or its Affiliates (other than as a result of any breach of Section 15.3); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | providing services (including any GS Services) as expressly contemplated under this Agreement or any Ancillary Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

| 15.5 | Employee Solicitation Restriction on Seller and Buyer |
|------|-------------------------------------------------------|

|   | (a) | neither Seller nor any Affiliate of Seller shall, without the prior written consent of Buyer, solicit the employment of any personnel of Buyer or its Affiliates, including Newco, who are, as of the Closing Date, substantially involved in any aspect of the provision the Transferred Business; provided however that, the general solicitations or employment advertisements not specifically targeted at such personnel shall not be restricted under Section 15.5(a); and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | neither Buyer nor any Affiliate of Buyer shall, without the prior written consent of Seller, solicit the employment of any personnel of Seller or its Affiliates, who are, as of the Closing Date, substantially involved in any aspect of the provision of the Retained Business; provided however that, the general solicitations or employment advertisements not specifically targeted at such personnel shall not be restricted under this Section 15.5(b). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16. | GENERAL PROVISIONS |
|-----|--------------------|

| 16.1 | Expenses |
|------|----------|

| 16.2 | Notices |
|------|---------|

----

----

| 16.3 | Further Actions |
|------|-----------------|

| 16.4 | Incorporation of Schedules and Exhibits |
|------|-----------------------------------------|

| 16.5 | Entire Agreement and Modification |
|------|-----------------------------------|

| 16.6 | Severability |
|------|--------------|

| 16.7 | Assignments; Successors; No Third Party Rights |
|------|------------------------------------------------|

| 16.8 | Waiver |
|------|--------|

| 16.9 | Governing Law |
|------|---------------|

| 16.10 | Jurisdiction |
|-------|--------------|

| 16.11 | Counterparts; Language |
|-------|------------------------|

----

----

| Schedule 5.3     |   | No Conflict                                                              |
|------------------|--------|--------------------------------------------------------------------------|
| Schedule 5.10    |   | Tangible Personal Property                                               |
| Schedule 5.11(a) |   | Transferred Sites                                                        |
| Schedule 5.15    |   | Material Transferred Contracts                                           |
|             |   | Schedule 5.15(a)(i)                                                      |   | Top 25 Customers |
|             |   | Schedule 5.15(a)(ii)                                                     |   | Top 5 Business Partners |
|             |   | Schedule 5.15(a)(iii)                                                    |   | Top 5 IBM End-Users |
|             |   | Schedule 5.15(a)(iv)                                                     |   | Finance Contracts |
|             |   | Schedule 5.15(a)(v)                                                      |   | Material IP Licenses |
|             |   | Schedule 5.15(a)(vi)                                                     |   | Resale Contracts |
|             |   | Schedule 5.15(a)(vii)                                                    |   | Non-Compete |
|             |   | Schedule 5.15(a)(viii)                                                   |   | Transactions with Affiliates |
|             |   | Schedule 5.15(a)(ix)                                                     |   | Data Centre Service Agreement with Infocom Corporation Contract |
|             |   | Schedule 5.15(a)(x)                                                      |   | Subscription Agreement with E-Net Co., Ltd. |
|             |   | Schedule 5.15(a)(xi)                                                     |   | Carrier Commissions Contracts |
|             |   | Schedule 5.15(b)                                                         |   | Missing Contracts |
| Schedule 5.18    |   |                                                                     |   | Governmental Authorization |
| Schedule 5.19    |   |                                                                     |   | Compliance with Laws |
| Schedule 5.20(a) |   | Product Warranties; Defects; Liabilities – Defects; Liabilities    |
| Schedule 5.20(b) |   | Product Warranties; Defects; Liabilities – Product Warranties      |
| Schedule 5.21    |   | Insurance                                                                |
| Schedule 5.23(a) |   | Employment and Labor Matters – List of Work Rules, etc.            |
| Schedule 5.23(b) |   | Employment and Labor Matters – No Unions, Disputes or Claims, etc. |

----

----

----

| CUSTOMER Name (Full Legal Name):Communications Services KK(“CUSTOMER”)                                                                                                                                            |  AT&T Corp.,              A New York corporation(“AT&T”) | AT&T Sales Representative:Junya Yamada                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| CUSTOMER Name (and Title) for Notice:Toshinori Iwasawa, Representative Director                                                                                                                                               | AT&T Name (and Title) for Notice:Sean McCarthyExecutive Director, Global Wholesale Global Service Provider Management                               | AT&T Contact Telephone Number:+813 3584 4725                  |
| CUSTOMER Address:2-10-1, Toranomon, Minato-ku                                                                                                                                                                            | AT&T Address:340 Mount Kemble Avenue S-204                                                                                                     | Initial Deposit or other Security Required:Initial Deposit Waived |
| City                                State/ProvinceTokyo  | CityMorristown                                                                                                                                          | State/ProvinceNJ                                                  |   |
| CountryJapan                                                                                                                                                                                                                  | Postal Code105-0001                                                                                                                                     | CountryUnited States                                              | Postal Code07960 |   |
| CUSTOMER Fax number for Notice:+813 5545 9470                                                                                                                                                                                 | AT&T Fax number for Notice:+1 973 326 4278                                                                                                          |                                                              |

| Table of Documents           |
|------------------------------|
| Title                        | Doc. ID | Date/time stamp |
| Special Terms and Conditions | GMCA 110909.doc | 11/17/2008 1:07 pm |
| Attachment A                 |   |   |

| AGREED:                    | AGREED:                         |   |
|----------------------------|---------------------------------|--------|
| Communications Services KK | AT&T Corp.                  |   |
| By:                        |                            |   | By: |   |   |   |
|                       | (Authorized CUSTOMER Signature) |   |   | (Authorized Agent or Representative for AT&T) |   |   |
|                       | Chris F. CassDirector           |   |   | Sean McCarthyExecutive Director, Global Wholesale Global Service Provider Management |   |   |
| Date:                      | September 1, 2010               |   | Date: | September 1, 2010 |   |   |

----

----

----

----

| a.   | 20.           Use of Marks.   The parties acknowledge and agree that certain of the Services are branded with AT&T trademarks, service marks, logos, trade dress, trade devices, indicia of origin or other symbols. (“AT&T Marks”) and AT&T agrees to allow the continued use of such AT&T Marks solely for the Services set forth herein during the Term of this Agreement; provided, however, that within 6 (six) months of the date of this Agreement, Customer shall develop, at its sole expense, its own distinctive corporate or trade name, trademark, service mark, logo, trade dress, trade device, indicia of origin or other symbol (“Customer Mark”) that serves to identify and distinguish it from AT&T. Pending prior approval by AT&T which shall not be unreasonably withheld, Customer shall develop and distribute to all End Users any necessary communications stating that the AT&T branded Services will no longer be owned and provided by AT&T and that these Services will be offered and provided by Customer as of the applicable date. Beginning no later than six (6)  months after the date of this Agreement, Customer shall immediately cease all use of the AT&T Marks on all advertising, sales, public relations, promotional and marketing communications ("Marcom"), in the conduct of its business or otherwise and shall have no further rights with respect thereto. To the extent Customer fails to do so, AT&T will develop such Customer Mark including all necessary Marcom and charge Customer for AT&T’s costs of developing and distributing same.  AT&T may revoke Customer’s limited right to use the AT&T Marks at anytime during the Term of this Agreement. Customer acknowledges that Registration and use of “AT&T” or “att” by Customer as a keyword is prohibited. Nothing in this Agreement creates in a party any rights in the other party's Marks  or any other intellectual property. AT&T  may use the Customer's trade names, trademarks, or service marks but only to the extent required to communicate to End Users that there is no fiduciary relationship among or between the End User and AT&T; that AT&T has no contractual obligation or legal duty to End User; that End User is purchasing services from Customer and not AT&T; that Customer and AT&T are independent businesses; and,  that neither AT&T nor Customer is a division, subsidiary, joint venturer, partner,  employee or faction or servant of the other for any purpose whatsoever. In no event shall either party use or display, in advertising or otherwise, any of the other party's logos, trade dress, trade devices or other indicia of origin, or any confusingly similar logos, trade dress, trade devices or indicia of origin. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

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| Communications Services KK                                                                                                                                                                                                                                                                                                                                                                                        | AT&T Japan KK                                                                                                                                                                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             X                                                                                                                                                                                                                                                                                                                                         |            X                                                                                                                                                                                                                                                                                                     |
| Name: Chris F. Cass                                                                                                                                                                                                                                                                                                                                                                                               | Name: Manabu Oka                                                                                                                                                                                                                                                                                                                                                        |
| Title: Representative Director                                                                                                                                                                                                                                                                                                                                                                                    | Title: President                                                                                                                                                                                                                                                                                                                                                        |
| Date:                                                                 , 2010 | Date:                                                          , 2010 |

----

| 1.   INTRODUCTION |
|----------------------------------|

| 1.1 | This Agreement shall be for a period (the “Initial Term”) commencing on the closing date of the Stock Purchase Agreement (“SPA”) entered into as of September 1, 2010 by and between AT&T Japan LLC (“ATTJ-LLC”) and Internet Initiative Japan, Inc. (“IIJ”) (the “Effective Date”) and expiring without notice on September 1, 2012 (the Expiration Date”), unless terminated earlier in accordance with the terms of this Agreement.  The Initial Term of this Agreement may be extended for two (2) consecutive additional terms (each, an “Extension Term”) of one (1) year each upon mutual agreement of AT&T and Preferred Provider.  Each Extension Term shall commence on the day following the Initial Term or the expiration of the preceding Extension Term (as the case may be), and (unless the Parties otherwise agree) shall be on the same terms and conditions as are then set forth in this Agreement.  AT&T and Preferred Provider shall commence in good faith negotiations regarding any Extension Term no later than ninety (90) days prior to expiration of the then-current Extension Term. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | For the avoidance of doubt, this Agreement conveys no Company commitment to purchase any Services (other than the initial Services referenced in Section 4.1.2).  Each Order will specify its own period(s) of performance. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Appendices.  The following are made part of this Agreement by this reference.  To the extent any Appendix, by its form, requires execution by the Parties, such appendix will become part of this Agreement upon such execution; to the extent that the Parties have agreed to complete any Appendix after the date of execution of this Agreement, such Appendix will become part of this Agreement upon a writing or writings signed by the Parties evidencing its completion: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Appendix A | Definitions                                                                         |
|------------|-------------------------------------------------------------------------------------|
| Appendix B | General Terms & Conditions                                                      |
| Appendix C | Form of Change Order                                                                |
| Appendix D | Taxes                                                                               |
| Appendix E | Insurance                                                                           |
| Appendix F | Quality Assurance                                                                   |
| Appendix G | Security RequirementsExhibit 1: AT&T Supplier Information Security Requirements |
| Appendix H | Background  Checks                                                        |
| Appendix I | Notices                                                                             |
| Appendix J | Statement of Work (SOW)                                                             |
| Appendix K | Reimbursable Expenses                                                               |
| Appendix L | Target Employees                                                                    |

|   |   |
|--------|--------|

| 1.4 | Services to be provided by Preferred Provider are described in the Statement of Work (SOW) (Appendix J). |
|-----|----------------------------------------------------------------------------------------------------------|

| 1.5 | Definitions.  Capitalized terms used but not expressly defined in a provision of any part of this Agreement will have the meaning given them in Appendix A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Order of Priority.  Conflicts or inconsistencies between or among provisions will be resolved in the following descending order of priority: Order, SOW, Exhibit, Appendix other than Appendix B, body of Agreement, Appendix B (General Terms and Conditions). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | Notices.  Notice is deemed given when made in writing and delivered by hand, facsimile transmission, electronic mail, or when deposited with a postal carrier, postage prepaid, return-receipt requested, and addressed as specified in Appendix I. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. SERVICES |
|------------------|

| 2.1.1 | the services described in this Agreement, including the services, functions and responsibilities described in the SOW set forth as Appendix J. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1.2 | the services, functions and responsibilities being performed prior to the Effective Date by (a) the Target Employees in support of any services which are to become Services under this Agreement, and/or (b)  contractors under the Assigned Agreements in support of such services; and |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1.3 | any services, functions or responsibilities not specifically described in this Agreement, but which are required for the proper performance and delivery of the Services (items (2.1.1) through (2.1.3), collectively, the “Services”). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          3. NEW SERVICES |
|-----------------------------------------------------------------------|

| 3.1 | AT&T may from time to time during the Term of this Agreement request that Preferred Provider perform a service that is significantly different from, or outside of the scope of, the Services (a “New Service”). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Upon receipt of such a request from AT&T, Preferred Provider shall provide AT&T with: |
|-----|-----------------------------------------------------------------------------------------------|

| (a) | a written description of the work Preferred Provider anticipates performing in connection with such New Service; |
|-----|------------------------------------------------------------------------------------------------------------------|

| (c) | Preferred Provider's prospective charges for such New Service, including a detailed breakdown thereof; |
|-----|--------------------------------------------------------------------------------------------------------|

| (d) | when appropriate, a description of any existing and new software, equipment, etc. to be used or provided by Preferred Provider in connection with such New Service; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | a written description of the personnel, including job descriptions, necessary to develop and provide the New Service. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| 3.3 | Notwithstanding anything to the contrary in this Agreement, any proposal submitted by Preferred Provider in accordance with this section will be based on pricing that takes into account the total scope and volume of Services then being provided by Preferred Provider.  Preferred Provider shall not begin performing any New Service until AT&T has provided Preferred Provider with authorization (which may be in the form of an amendment to this Agreement) to perform the New Service. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.   ORDERS |
|----------------------------|

| 4.1   |  General. |
|-----------------|----------------|

| 4.2   | 4.1.1           Services will be specified in Orders executed from time to time by the Parties.  Orders will indicate whether a Service is for resale or Company’s own use or both, and/or whether Services will be performed by a Subcontractor.  When executed, an Order creates a contract that is governed by this Agreement, and which is enforceable solely against the parties to that Order.  For the avoidance of doubt, other than as provided in Section 4.1.2, Preferred Provider’s obligation to provide, and Company’s obligation to pay for, a Service arises only in connection with, and on execution of, the Order specifying that Service. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.2 The provisions of Section 4.1.1 shall not apply in respect of Preferred Provider’s initial provision to Company of the Services commencing on the Effective Date.  For the avoidance of doubt, Preferred Provider will provide the initial Services to Company (including under section 2 hereof and under Appendix K) without the requirement of any action by either Party hereunder, other than the execution and delivery of this Agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | Affiliates |
|-----------------|------------|

| 4.2.1   | Company Affiliates have the right to place Orders with Preferred Provider Affiliates.  In case of Orders for Services intended for resale, the parties to the Order must be entities registered in the same country. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2   | Reference to “Company” and “Preferred Provider” as well as to “Party” and “Parties” will be deemed, as appropriate, to apply to the Affiliates that become parties to an Order. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.3   | Neither Party will be liable to, or required to indemnify, the other for the acts or omissions of its own Affiliates.  Nor will any Affiliate of a Party be liable to, or required to indemnify, (i) such Party or any other Affiliate of such Party, or (ii) the other Party or any Affiliate of the other Party, other than an Affiliate of such other Party that is a counterparty to an Order. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Anticipated Delay.  Preferred Provider will immediately notify Company of an anticipated, reasonably certain delay in the performance of an Order. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Change Control |
|-----|----------------|

| 4.4.1 | The Party requesting a change to an Order will complete and provide to the other Party a draft Change Order in the form of Appendix C.  The Change Order will describe the nature of and reason for the change, and its anticipated effect on Services and charges therefor. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4.2 | The Parties will negotiate each Change Order.  If the Parties agree on the terms and conditions therein, they will execute the Change Order, which then will be incorporated by reference into and become part of the Order.  Change Orders shall be sequentially numbered.  For the avoidance of doubt, Preferred Provider will not be obligated to provide, and Company will not be obligated to pay for, Services different from what is specified in an Order unless the difference has been agreed to in a Change Order.  Invoices subsequent to a Change Order will distinguish between charges for Services under the original Order, and charges for Services under the Change Order. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|         5.   ACCEPTANCE |
|---------------------------------------------------------------------------|

| 5.1 | Acceptance.  If an Order specifies that the Company has a right to Acceptance of Services (or any milestone or element thereof), the Acceptance Test Period will commence ten days after Preferred Provider has notified Company of completion of Services (or the applicable milestone or element).  Company will within 30 days of such commencement specify any non-conformity in writing and afford Preferred Provider the opportunity to make the Services (or milestone) conform (failing which, Company will be deemed to have accepted the Services).  After Preferred Provider’s prompt corrective action, Preferred Provider will notify Company in writing that the Services (or milestone) now conform to the Acceptance Test.  Preferred Provider’s failure to pass the Acceptance Test following its corrective action shall give Company the right to terminate the Order with respect to the Services that failed inspection.   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         6.   SERVICE LEVEL AGREEMENTS AND SERVICE LEVEL OBJECTIVES |
|----------------------------------------------------------------------------------------------------------------------|

| 6.1 | Service Level Agreements.  In the event that (i) AT&T fails to provide any service or service component to any service level (howsoever denominated) required by any Customer (including  such service levels specified in the Company service level agreements with International Business Machines Corporation and Louis Vuitton Moët – Hennessy respectively set forth in the SOW (Appendix J) and AT&T incurs a monetary service-level credit (howsoever denominated) to such Customer, and (ii) such AT&T failure is due in whole or in part to the failure of any Service or Service Component, or Preferred Provider’s failure to provide such Service or Service Component to the service level that the Customer requires of AT&T, Preferred Provider shall pay to AT&T an amount equal to the amount of the credit that AT&T has incurred to the Customer.  For the avoidance of doubt, (i) no such payment by Preferred Provider shall limit AT&T's right to recover, without duplication, any Losses incurred or sustained by AT&T under this Agreement as a result of such Preferred Provider failure, and (ii) nothing in this Section 6.1.1 shall be deemed to limit or obviate AT&T's right to terminate this Agreement as set forth herein. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Service Level Objectives.  Preferred Provider shall use commercially reasonable efforts to perform Services which are the subject of service level objectives (“Service Objectives”) in accordance with the requirements of the service level objectives set forth in the Operations Manual (Attachment 4 to the SOW (Appendix J)). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Company shall have the right to request, after the Effective Date, (i) establishment of service levels (“Service Levels”), whether with or without associated monetary performance credits, relating to the Services, and (ii) incorporation of such Service Levels into the SOW (Appendix J).  If Preferred Provider consents to such request, the Parties shall execute and deliver an amendment to the Agreement setting forth the terms of such Service Levels.  Upon the execution and delivery of such amendment, the provisions of paragraphs a) through e) below shall apply to the Service Levels.  . |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | Preferred Provider shall perform Services which are the subject of Service Levels in accordance with the requirements of the Service Levels set forth in the SOW (Appendix J). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | In the event of a failure of any Service or Service Component to meet any applicable Service Level, Preferred Provider shall pay to AT&T a Service Level credit in the amount of any credit (howsoever denominated) that the Preferred Provider has accrued, or that Preferred Provider’s Subcontractor(s) have paid to the Preferred Provider, relating to such failure, as specified in the SOW (Appendix J). |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | The Service Level credits shall not limit AT&T's right to recover, in accordance with this Agreement, without duplication, any Losses incurred or sustained by AT&T under any other Section of this Agreement as a result of Preferred Provider’s failure to provide the Services to the required Service Level.  Nothing in this Section or the SOW (Appendix J) shall be deemed to limit or obviate AT&T's right to terminate this Agreement as set forth herein. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | Preferred Provider will be responsible for implementing and operating all measurement and monitoring tools and procedures required to measure and report its performance relative to the applicable Service Levels or Service Objectives to the extent that such measurement and monitoring can be reasonably applied to the Services.  The Service Level or Service Objective measurement, monitoring and reporting process will be subject to audit by AT&T. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e) | If Preferred Provider fails to meet any Service Level or Service Objective, Preferred Provider shall: (i) promptly investigate and report on the causes of the problem; (ii) use all reasonable efforts to correct the problem and to begin meeting the applicable Service Level or Service Objective as soon as practicable; (iii) advise AT&T, as and to the extent requested by AT&T, of the status of remedial efforts being undertaken with respect to such problem; and (iv) provide AT&T reasonable evidence that the causes of such problem have been or will be corrected. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        7.   DISASTER RECOVERY |
|---------------------------------------------------------------------------------|

| 7.1 | With respect to the Services, Preferred Provider shall make commercially reasonable efforts to maintain the same, or reasonably comparable, disaster recovery capabilities that the Company maintained for the Services immediately prior to the Effective Date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|           8.   INVOICES, PAYMENTS, PRICING, TAXES |
|--------------------------------------------------------------------------------------------------------------------|

| 8.1 | Invoices |
|-----|----------|

| 8.1.1 | Only the Preferred Provider Affiliate that is party to the Order will render invoices under that Order, and will do so consistent with the terms of that Order. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.2 | Invoices for Services will specify as applicable and where required (i) the Services performed; (ii) the Site(s) where Services were performed; (iii) the fee charged for each Service; (iv) Transaction Taxes required by Law and tax reimbursements; and (v) provided that the Order entitles Preferred Provider to reimbursement of expenses, itemized expenses incurred by Preferred Provider.  In case of (v), Preferred Provider will provide reasonably detailed supporting documents. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Payments |
|-----|----------|

| 8.2.1 | Payments will be solely by the Company Affiliate that is party to the Order, and will be made within forty-five (45) days after receipt of Preferred Provider’s invoice.  Preferred Provider will accept standard, commercial methods of payment.9.2.2 | Company has the right to withhold payment for non-conforming Services and for any amount it disputes in good faith.  Company will specify in writing the grounds on which it disputes an invoiced amount. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Pricing.  Company shall pay the charges for the Services set forth in Exhibit F (Service Charges) of the SOW (Appendix J) for the Services, unless such charges are superseded in Order agreed to by the Parties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Taxes.  The Parties’ performance of this Agreement and, in particular, the invoices and payments under it, are subject to the tax provisions set forth in Appendix D. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Most Favored Customer.  Preferred Provider represents and warrants that the terms and conditions of this Agreement (including the financial terms on which Preferred Provider is providing the Services to AT&T) are, and during the Term will continue to be, at least as favorable as those currently being offered, or that will be offered, by Preferred Provider to any of its multinational telecommunication carrier customers for the same or similar services.  Accordingly, Preferred Provider shall semi-annually (i) review this Section, and (ii) have an officer of Preferred Provider certify to AT&T Preferred Provider’s compliance herewith (with such certification being sent to AT&T’s addressee set forth in Appendix I (Notices)). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|           9.    COMPLIANCE WITH CERTAIN LAWS |
|---------------------------------------------------------------------------------------------------------------|

| 9.1 | Without limiting the generality of the Parties’ respective obligations under the Compliance with Laws provision in the General Terms and Conditions (Appendix B, Section 4), Preferred Provider, at its expense, will comply with the following Japanese legislations: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.1 | Act on the Protection of Personal Information; |
|-------|------------------------------------------------|

| 9.1.2 | Unfair Competition Prevention Law; and |
|-------|----------------------------------------|

| 9.1.3 | Foreign Exchange and Foreign Trade Act. |
|-------|-----------------------------------------|

| 9.2 | Preferred Provider shall not directly or indirectly export, import, re-export, or otherwise distribute Services to any destination that is subject to export restrictions under Japanese law or any other country’s law unless such export is permitted under all applicable laws, rules and regulations of any Governmental Authority.  Compliance with the foregoing includes record-keeping and reporting obligations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|       10.   WARRANTIES & REPRESENTATIONS |
|--------------------------------------------------------------------------------------|

| 10.1 | General.  Preferred Provider warrants and/or represents that: |
|------|-------------------------------------------------------------------------|

| 10.1.1 | There is no action, suit, or proceeding, pending or threatened, which could have a material adverse effect on Preferred Provider’s ability to fulfill its obligations under this Agreement; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.2 | Preferred Provider has the authority, financial resources, rights, and skills necessary to enter into, and perform, this Agreement, including to perform the Services; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.3 | Preferred Provider has the authority legally to bind to this Agreement any Preferred Provider Affiliate that becomes party to an Order; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.4 | No consent, approval, or withholding of objection is required from any entity, including any governmental authority with respect to Preferred Provider’s entering into or performing this Agreement; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1.5 | No agent, director, employee, or officer of Company has been or will be employed, retained or paid a fee, or otherwise has received or will receive, personal compensation or consideration by or from Preferred Provider, or from an agent, director, employee, or officer of Preferred Provider, in connection with this Agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Services.  Preferred Provider warrants and/or represents that: |
|------|--------------------------------------------------------------------------|

| 10.2.1 | All Services will be performed in a professional manner, in material compliance with all Specifications, and with the care, skill and diligence of—and in accordance with—the standards currently recognized in Preferred Provider’s industry. If Preferred Provider fails to meet the Specification or such standards, Preferred Provider will, without additional compensation, promptly correct or revise the Services so that they comply with the Specification and such standards, including correcting or revising errors or deficiencies in the Services; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.2 | Preferred Provider will exercise full control over and supervise the performance of Services, including full control and supervision with respect to the assignment, compensation, discharge, and employment of Preferred Provider personnel and Subcontractors performing Services; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.3 | (a) No Service will infringe a patent, copyright, trademark, trade secret or other intellectual right and (b) as of the Effective Date, no third party claim has been alleged against Preferred Provider that any Service to be provided hereunder infringes upon such third party’s intellectual property rights. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.4 | Preferred Provider’s performance of Services will be in accordance with Laws, including the Laws specified in Section10. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Warranty Period.  The warranty period for the Services specified in any Order will be the longer of the warranty period stated in such Order, or thirty (30) days from Company’s Acceptance of such Services (the “Warranty Period”).  Any warranty to perform Services shall be void to the extent that, after Preferred Provider’s delivery thereof, such Services are modified by Company or any party acting through or under Company. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Assignment, Enforcement.  Preferred Provider will pass through to or assign to Company the original warranties of Subcontractors, to the extent permitted.  Preferred Provider will provide to Company copies of any such warranties.  For Subcontractor warranties that Preferred Provider cannot pass through or assign, Preferred Provider will enforce such warranties on Company’s behalf. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Corrective Action.   During the Warranty Period, if Company believes that there has been a warranty breach, Company will specify such breach in writing.  Preferred Provider will promptly investigate and either provide information satisfactory to Company that no warranty breach occurred, or, at no additional charge to Company, promptly take action to remedy the breach.  If such remedial action would consist of Services or re-performing Services but Preferred Provider is unwilling or unable to perform or re-perform such Services, Company will have the right to perform such remedial action at Preferred Provider’s expense. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, PREFERRED PROVIDER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING ANY MATTER, INCLUDING FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, NON-INFRINGEMENT, OR RESULTS TO BE DERIVED FROM THE USE OF SERVICES PROVIDED UNDER THIS AGREEMENT. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Survival.  Warranties will survive Company’s inspection of, Acceptance of, payment for, and use of the Services. |
|------|----------------------------------------------------------------------------------------------------------------------------------|

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|         11.   DAMAGES, LIMITATION OF DAMAGES |
|------------------------------------------------------------------------------------------------|

| 11.1 | Delay Damages.  The Parties may agree in an SOW or an Order to a schedule of liquidated damages for Preferred Provider’s failure to provide Services within the time periods specified therein.  If so agreed, Preferred Provider's payment of liquidated damages to Company shall be Company’s sole and exclusive financial remedy regarding a Preferred Provider failure to provide Services within such time periods. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | LIABILITY AND LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, ALL LIABILITY OF A PARTY UNDER THIS AGREEMENT SHALL BE LIMITED TO PROVEN DIRECT DAMAGES. THE PARTIES MAY AGREE IN AN ORDER OR STATEMENT OF WORK TO CAP THE LIABILITY OF EITHER PARTY WITH RESPECT TO ITS ACTIONS OR OMISSIONS UNDER THAT PARTICULAR ORDER OR STATEMENT OF WORK. SUBJECT TO CLAUSE 12.3 BELOW, NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR SPECIAL DAMAGES, OR FOR LOST PROFITS OR REVENUE OR LOST DATA IN CONNECTION WITH THE PERFORMANCE OF OR FAILURE TO PERFORM THIS AGREEMENT, REGARDLESS OF THE LEGAL THEORY ON WHICH SUCH LIABILITY ARISES. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | THE FOREGOING SHALL NOT LIMIT EITHER PARTY’S LIABILITY FOR A BREACH OF A CONFIDENTIALITY OBLIGATION OR AN INFRINGEMENT OF AN INTELLECTUAL OR OTHER PROPRIETARY RIGHT NOR PREFERRED PROVIDER’S INDEMNIFICATION OBLIGATIONS SPECIFIED IN ARTICLE 13 (Indemnification) OF THIS AGREEMENT. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         12.    INDEMNIFICATION |
|--------------------------------------------------------------------------------------------|

| 12.1 | General.  Preferred Provider shall indemnify, hold harmless, and defend Company and its Affiliates, agents, and employees against any Loss resulting from, arising out of or relating to any allegation, threat, demand, claim or lawsuit (“Claim”) for: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.1 | Preferred Provider’s or a Subcontractor’s liability resulting from personal injury or death; damage to real property; damage to or theft of tangible personal property; or labor. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.2 | infringement of any patent, copyright, trade mark, service mark, trade secret, or other intellectual property right (including direct, contributory and active inducement infringement) in connection with the Services, including any Claim of infringement based on: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   |   making, repair, receipt, use, importing, sale or disposal (and offers to do any of the foregoing) of Services, or |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| b)   |   use of Services in combination with products, systems, services, processes or methods not furnished by Preferred Provider, including use in the form of the making or using of an apparatus or system, or the making or practicing of a process or method (a “Combination Claim”); and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.3 | misappropriation of any trade secret, proprietary or non-public information in connection with the Services; |
|--------|--------------------------------------------------------------------------------------------------------------|

| 12.1.4 | Preferred Provider’s or a Subcontractor’s failure to comply with a Law; or |
|--------|----------------------------------------------------------------------------------------|

| 12.1.5 | Preferred Provider’s or a Subcontractor’s breach of a warranty or representation set forth in this Agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Notice.  Company will promptly notify Preferred Provider of any Loss for which Preferred Provider may be obligated to indemnify and Preferred Provider will be allowed to control the defense or settlement.  A delay in Company’s provisions of such a notice will excuse Preferred Provider’s obligation only if Preferred Provider can show prejudice caused by the delay.  Company will provide reasonable cooperation in connection with Preferred Provider’s defense of a claim.  Preferred Provider will not agree to settlement of a claim without Company’s prior written consent which shall not be unreasonably withheld. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | In the event Company and/or Customer is unable to use the Services due to reasons attributable to the actions or omissions of any telecommunications carrier, Preferred Provider will return to Company any charges in respect of telecommunication lines to the extent Preferred Provider receives such charges from such telecommunications carrier. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Company will defend, indemnify and hold harmless Preferred Provider and its agents, Affiliates and employees against any Loss arising out of or relating to a Customer claim arising from or relating solely and exclusively to Company’s acts or omissions, including breaches of any warranty for services that Company provides to such Customer (other than a Company-to-Customer service level referenced in Section 6.1.1) that are in addition to those provided by Preferred Provider to Company hereunder. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5   | Continued Use of Services Subject to Non-Combination Claims.  If, as a result of a third party claim other than an Combination Claim, (i) Company’s rights under this Agreement are restricted or diminished, (ii) an injunction is sought or is likely (in Preferred Provider’s judgment) to be issued against Company’s use of Services, or (iii) Services are likely (in Preferred Provider’s judgment) to become the subject of a claim of infringement, then, in addition to its other obligations set forth in this Section, Preferred Provider, at its sole expense and at no loss, cost or damage to Company or the Customers, shall obtain for Company the right to continue using or conducting other activities with respect to the Services; provided that if Preferred Provider is unable to obtain such right, Preferred Provider shall, after consulting with and obtaining the written approval of Company, provide modified or replacement non-infringing Services that are equally suitable and functionally equivalent while retaining the quality of the original Services |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         13.    TERMINATION |
|-----------------------------------------------------------------------------------|

| 13.1 | Scope |
|------|-------|

| 13.1.1 | For Convenience.  Company shall have the right at any time during the Initial Term to terminate this Agreement for convenience (a) in whole provided Company pays Preferred Provider an amount of JPY 90 million, and (b) in part provided Company pays Preferred Provider the amounts set forth in clauses (ii) and (iii) of Section 14.2.1. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.2 | For Anticipated Delay.  Company shall have the right to terminate an Order in whole or in part, and without obligation or liability (including for termination fees) immediately after receipt of Preferred Provider’s notice of an anticipated delay in delivering Services, provided Company is not the cause of such delay.  If Company or a third party is the cause of such delay the Parties will negotiate an extension of time for Preferred Provider’s performance and responsibility for any additional costs relating to such delay. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.3 | For Uncured Material Breach.  If either Party fails to perform any of its material obligations and such failure is not cured within 30 days after notice is given to the other Party specifying the nature of the default, then such first Party may, upon further notice to the defaulting Party, terminate in whole or part any Order (or all Orders) as of the date specified in such notice of termination; provided, however, that if the defaulting Party has promptly commenced to cure the default and, if after the defaulting Party's reasonable efforts such default could not be cured within such 30-day period, the defaulting Party may give notice to the non-defaulting Party by the end of such 30-day period and in such case the defaulting Party's time to cure such default shall extend for up to 15 days from the end of such 30-day period; provided, further, that the defaulting Party continues to use reasonable efforts to cure such default during such 15-day period. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If the breach (x) consists of a failure to comply with Laws, (y) a Party is placed under judicial management or final or provisional liquidation or passes a resolution for its voluntary winding up, or (z) the breach is of a nature that cannot be cured, the termination will be effective on the date the defaulting Party receives the breach notice. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Payment Obligations by Company on Termination |
|------|-----------------------------------------------|

| 13.2.1 | Except as otherwise expressly provided in this Agreement, if Company terminates an Order or the Agreement in part other than pursuant to Section 14.1.3, Company will pay Preferred Provider for (i) all costs reasonably incurred in returning Services to Preferred Provider (and, if applicable, to the distributor or if such return is not allowed by the distributor), or if the applicable invoiced fees for Services ordered by Company prior to termination; and (ii) the pro-rated Services Charges for the terminating Services performed through the effective date of termination; and (iii) any termination charges as may be set forth in a Statement of Work. This shall not apply to the termination of the Agreement as a whole. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2.2 | Refund.  If Company has already paid for any Service being terminated, Preferred Provider will promptly refund to Company a pro-rated amount for the portion of such Service that Preferred Provider would have performed after the termination date.  Notwithstanding the foregoing, if Preferred Provider is purchasing any element of such Service from a third party, Preferred Provider will seek a pro-rated refund of such third-party service element and, upon, receipt thereof, refund such amount to Company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Effects of Termination or Expiration.  Termination or expiration of an Order will not affect any other Order then in effect.  Termination in whole of this Agreement by Company pursuant to Sections 14.1.3 and 14.1.1 will terminate all Orders then in effect (unless Company specifies to Preferred Provider in writing the Order(s) that Company requires Preferred Provider to complete, in which case the terms and conditions of this Agreement will continue to govern the specified Order(s) through Preferred Provider's completion of performance of the Services thereunder. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | If this Agreement expires or is terminated other than pursuant to Section 14.1.3 and 14.1.1, the Orders then in effect will continue in effect, governed through Preferred Provider's completion of performance of the Services thereunder by the terms and conditions of this Agreement. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | Termination Notices.  A Party terminating this Agreement in whole or in part will send all termination notices to the other Party (and any Affiliate that is a party to any Order being terminated). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         14.   TERMINATION ASSISTANCE SERVICES |
|-------------------------------------------------------------------------------------------------|

| 14.1 | Termination Assistance Services.  Preferred Provider shall, upon AT&T’s request from time to time after a determination is made by AT&T that there will be a termination or expiration of this Agreement, provide the Termination Assistance Services at [charges to be discussed] except to the extent that personnel resources included in the Service Charge being paid by AT&T to Preferred Provider after such expiration or termination can be used to provide the Termination Assistance Services.  The quality and level of performance of Preferred Provider during the Termination Assistance Period shall not be degraded.  During the 150 days immediately following the expiration of the Termination Assistance Period, experienced, qualified Preferred Provider personnel shall (i) answer questions from AT&T regarding the Services on an “as needed” basis on terms no less favorable than those prevailing as of the Effective Date, and (ii) deliver to AT&T any remaining AT&T-owned reports and documentation still in Preferred Provider’s possession. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Exit Rights.  Upon the later of (1) the expiration or termination of this Agreement or the applicable portion of this Agreement and (2) the last day of the Termination Assistance Period: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.1 | Preferred Provider shall deliver to AT&T, at no cost to AT&T, a current copy of any AT&T proprietary or third-party software in the form in use as of the End Date, in each case being used by Preferred Provider to provide the Services. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.2 | Upon AT&T’s request, with respect to any Preferred Provider proprietary or third party software used to provide the Services, Preferred Provider shall, at no cost to AT&T or any replacement service provider, transfer, assign or sublicense software to AT&T or such provider. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.3 | Upon AT&T’s request, with respect to (i) any agreements for maintenance, disaster recovery services or any other necessary third party services being used by Preferred Provider to provide the Services as of the End Date and (ii) the Assigned Agreements, Preferred Provider shall transfer or assign such agreements to AT&T or its replacement or other service provider, on terms and conditions acceptable to all of the applicable parties. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.4 | Upon AT&T’s request, Preferred Provider shall sell to AT&T or its replacement or other service provider (i) any Preferred Provider equipment primarily being used by Preferred Provider to perform the Services as of the End Date and (ii) any assets previously transferred by AT&T to Preferred Provider, free and clear of all liens (except permitted liens), security interests or other encumbrances, at the lesser of the fair market value, as shall be determined in an agreed-upon appraisal, and the book value; provided however in the case of a partial termination the forgoing shall apply only to the extent such equipment are used solely in connection with the terminated work. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         15.  ESCALATION |
|----------------------------------------------------------------------|

| 15.1 | Escalation.  In the event the Parties are unable to informally and expeditiously resolve any dispute that arises under this Agreement, the Parties shall adhere to the following procedure: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.1.1 | Either Party may notify the other Party in writing of a formal dispute, including details of such dispute (e.g., a description of how the performance of the other Party is deficient).  The employees of the Parties who have overall responsibility for the Parties’ performance under this Agreement (the “Project Executives”) shall meet in person or by telephone within seven days of the date of the written notice of the dispute in order to reach an agreement resolving such dispute (including as to any corrective action required to be taken by either Party).  The Project Executives shall memorialize the nature of the dispute and their efforts to resolve it (including any agreed resolution). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.1.2 | If the Project Executives are unable to resolve the dispute (including agreeing on a written plan of any necessary corrective action) within five (5) Business Days, or if a Party fails to complete any corrective action by the agreed upon completion date therefor, the Project Executives shall immediately refer such dispute to the managers to whom they report (“Management Representatives”). The Parties’ Management Representatives shall meet in person or by telephone within seven days of the date of such referral in order to reach an agreement resolving such dispute (including as to any corrective action required to be taken by either Party).  The Parties’ Management Representatives shall memorialize the nature of the dispute and their efforts to resolve it (including any agreed resolution). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.1.3 | If the Parties’ Management Representatives are unable to resolve the dispute (including agreeing upon a written plan of any necessary corrective action) within five (5) Business Days, or if a Party fail to complete any corrective action by the agreed upon completion date therefor, the Management Representatives shall immediately refer the dispute to an “Executive Review Committee” comprising two (2) appropriate high level executives of each Party. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.1.4 | If the Executive Review Committee is unable to resolve the dispute (including agreeing upon a written plan of any necessary corrective action within five (5) Business Days, or if a Party fails to complete any necessary corrective action by the agreed upon completion date therefor, either Party may, immediately thereafter take action to enforce its rights under this Agreement, including the termination of this Agreement for breach when so permitted by its terms.  Except as otherwise specifically provided in this Agreement, neither Party shall terminate this Agreement for breach or initiate legal action unless and until such Party has followed the dispute resolution procedure set forth in this Section 16 (or the other Party has waived adherence to such procedure in writing). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.1.5 | As of the Effective Date, the following individuals shall serve as the Project Executives and Management Representatives for purposes of dispute resolution: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       | Company                                       | Preferred Provider                                    |
|----------------------------|-----------------------------------------------|-------------------------------------------------------|
| Project Executive          | Shingo Masumitsu,WCS Manager                  | Toshihide Muneyuki,Director, Project Office           |
| Management Representatives | Manabu Oka,PresidentAtsushi Yamamoto,Director | Tomofumi Sekiyama,Vice President, Business Operations |

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| (a) | all property plant and equipment comprised of machinery, equipment, tools, furniture, office equipment, computer hardware, software, supplies, materials and other items of tangible personal property summarized in Annex 2(a)(i) and listed in Annex 2(a)(ii), together with any express or implied warranty by the manufacturers, sellers or lessors of any item or component part thereof, and all maintenance records and other related documents; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | all trade accounts receivable, including billed accounts receivable, unbilled accounts receivable, unapplied cash, allowances for doubtful accounts receivable as reflected in the balance sheet summary attached as Annex 2(b)(i) and comprised of the following line items each as set out in the corresponding tab of Annex 2(b) as listed below: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | all of the rights of Seller under the contracts set out in Annex 2(c), and all outstanding offers or solicitations made by or to Seller to enter into any contract primarily relating to the other Transferred Assets described in this Section 2; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | all rights in respect of the leased real property set out in Annex 2(d), to the extent that such rights may be transferred under applicable Law; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

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| (e) | (Intentionally left blank) |
|-----|----------------------------|

| (f) | other assets (including deferred costs and prepaid items relating to the transferred contracts) set out in Annex 2(f)(i),Annex 2(f)(ii) and Annex 4(c); |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | all records primarily relating to (i) the other Transferred Assets described in this Section 2 and the Transferred Liabilities, and (ii) the assets and liabilities transferred pursuant to the Split Agreement (to the extent Seller has such records), and copies of all personnel records with respect to the Transferred Employees of Seller, all to the extent Seller is legally permitted to provide copies of such records to Newco.  Notwithstanding the forgoing, Seller will provide records for the past three years and use commercially reasonable efforts to transfer prior data if it is readily identifiable and available; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | all claims, rights and defenses of the members of Seller against third parties to the extent relating to any of the other Transferred Assets described in this Section 2 or Transferred Liabilities, whether choate or inchoate, known or unknown, contingent or non-contingent, including all attorney work-product protections, attorney-client privileges and other legal protections and privileges to which Seller may be entitled in connection with any of the other Transferred Assets or Transferred Liabilities; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | inventory, if any, related to the Transferred Customers as set out in Annex 2(i). |
|-----|-----------------------------------------------------------------------------------|

| 3.   | EXCLUDED ASSETS |
|----------------|-----------------|

| (d) | all security deposits (shikikin) relating to the leased real property included in the Transferred Assets, including all of Seller’s rights to claim a refund of such security deposits. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | TRANSFERRED LIABILITIES |
|----------------|-------------------------|

| (a)   | all trade accounts payable primarily relating to the Transferred Contracts as of the Business Transfer Closing Date, as summarized  in Annex 4(a)(i) and listed in Annex 4(a)(ii); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all accrued invoices primarily relating to the Transferred Contracts as of the Business Transfer Closing Date, as set out in Annex 4(b)(i), Annex 4(b)(ii), Annex 4(b)(iii), Annex 4(b)(iv), and Annex 4(b)(v)4; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all AGN circuit accruals primarily relating to the JNOS Services (including Secure IP WAN services) as of the Business Transfer Closing Date, as set out in Annex 4(c); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | all advanced billing and other deferred payments primarily relating to the Transferred Contracts as of the Business Transfer Closing Date, as set out in Annex 4(d); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (e)   | all Liabilities of Seller arising on, prior to or following the Business Transfer Closing Date under the contracts set out in Annex 2(c) included in the Transferred Assets; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | all Liabilities associated with the leased real property set out in Annex 2(d) included in the Transferred Assets arising on, prior to or following the Business Transfer Closing Date except as otherwise set forth in Section 5(n); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | all Liabilities relating to or arising out of environmental matters, including those arising under any Environmental Law; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (h)   | all other Liabilities arising out of, relating to or incurred in connection with the Transferred Assets or Transferred Employees of Seller including (i) the operation of the Transferred Business after the Business Transfer Closing Date, (ii) any other condition arising on, prior to or following the Business Transfer Closing Date with respect to the Transferred Assets, and (iii) accrued compensation absences set out in Annex 4(c). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | RETAINED LIABILITIES |
|----------------|----------------------|

| (a)   | any Liability to the extent arising out of or relating to any Excluded Asset; |
|-----------------|-------------------------------------------------------------------------------|

| (b)   | all Liabilities arising out of Seller’s activities relating to, and asserted by or on behalf of one or more of, the Target Employees of Seller who do not transfer; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all Liabilities arising out of or relating to the Seller Pension Plans; |
|-----------------|-------------------------------------------------------------------------|

| (d)   | all Liabilities arising out of or relating to that certain executive incentive plan maintained by Seller for the benefit of certain of the Executives as set out in Annex 4(c); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | (Intentionally left blank); |
|-----------------|-----------------------------|

| (f)   | all accrued Liabilities arising out of or relating to employee incentive awards maintained by the Seller; |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (g)   | all accrued Liabilities arising out of or relating to unit performance awards maintained by the Seller; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (h)   | all accrued Liabilities arising out of or relating to year-end employee bonuses maintained by the Seller; |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (i)   | all accrued Liabilities arising out of or relating to local country income taxes withheld; |
|-----------------|--------------------------------------------------------------------------------------------|

| (j)   | all accrued Liabilities arising out of or relating to local country workers compensation; |
|-----------------|-------------------------------------------------------------------------------------------|

| (k)   | all accrued Liabilities arising out of or relating to consumption tax collected from local customers; |
|-----------------|-------------------------------------------------------------------------------------------------------|

| (l)   | all accrued Liabilities arising out of or relating to the asset retirement obligation maintained by the Seller; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (m)   | all other Liabilities relating to wage, salary and other benefit for Transferred Employees of Seller accrued prior to the Business Transfer Closing Date; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | in relation to the leased real property included in the Transferred Assets, all Liabilities arising out of Seller’s obligation to reinstate the leased premises to the original condition (up to the Reserved Reinstatement Amount); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | all Liabilities accrued on or before December 31, 2007; and |
|-----------------|-------------------------------------------------------------|

| (p)   | any Liabilities that either (i) gave rise to a deduction, expense or loss claimed on any U.S. tax return for the 2008 tax year or (ii) were incurred outside of the ordinary course of business and which give rise to a deduction, expense or loss for the 2009 and 2010 taxable year. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.   | PURCHASE PRICE |
|----------------|----------------|

| (a)   | The purchase price for transfer of the Transferred Assets and assumption of the Transferred Liabilities (“Business TransferPurchase Price”) is ¥■ (excluding consumption tax).  On the Business Transfer Closing Date, Newco will issue a note in favor of Seller in the amount of the Business Transfer Purchase Price. Seller will contribute the Note to Newco, and Newco will issue and allot 10 ordinary shares in Newco to Seller, by way of contribution-in-kind (genbutsu shusshi). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Newco shall pay in cash consumption tax [leviable on the Business Transfer] to the Seller within ■ days of the Business Transfer Closing Date.  Seller and Newco will cooperate and agree on the amount of consumption tax to be paid within 14 days after the Business Transfer Closing Date. Seller will be permitted to offset against any other amounts as may be due to Newco if Newco fails to make this payment when due. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | REQUIRED PROCEDURES |
|----------------|---------------------|

| 8.   | EMPLOYEE MATTERS |
|----------------|------------------|

| 9.   |  TRANSFER VOID AB INITIO |
|----------------|-------------------------------|

|   | In the event that the Closing does not occur, any purported transfer of the Transferred Assets and assumption of the Transferred Liabilities under the LLC Business Transfer Agreement shall be void ab initio and Newco shall acquire no rights in such Transferred Assets nor assume any obligations relating to such Transferred Liabilities.  In the event that the Closing does not occur, Seller shall immediately return to Newco the note or the shares referred to at Section 6(a). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | GOVERNING LAW |
|-----------------|---------------|

|   | The LLC Business Transfer Agreement will be governed by and construed under the laws of Japan, without regard to conflicts of laws principles that would require the application of any other law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | JURISDICTION |
|-----------------|--------------|

|   | All disputes, controversies, or differences which may arise between the parties out of or in relation to or in connection with the LLC Business Transfer Agreement, or of the breach thereof, will be subject to the exclusive jurisdiction of the Tokyo District Court. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | PURCHASE AND SALE OF ASSETS |
|----------------|-----------------------------|

| 2.   | TRANSFERRED ASSETS |
|----------------|--------------------|

| (a) | all property plant and equipment comprised of [machinery, equipment, tools, furniture, office equipment, computer hardware, software, supplies, materials and other items of tangible personal property listed in Annex 2(a)(i), together with any express or implied warranty by the manufacturers, sellers or lessors of any item or component part thereof, and all maintenance records and other related documents; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | all of the rights of AT&T Japan Ltd. under the contracts set out in Annex 2(b), and all outstanding offers or solicitations made by or to AT&T Japan Ltd. to enter into any contract primarily relating to the other Transferred Assets described in this Section 2; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | other assets (including prepaid items relating to the Transferred Employees of AT&T Japan Ltd.) set out in Annex 2(c)(i); |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (d) | all records primarily relating to the other Transferred Assets described in this Section 2 and the Transferred Liabilities, and copies of all personnel records with respect to the Transferred Employees of AT&T Japan Ltd., all to the extent AT&T Japan Ltd. is legally permitted to provide copies of such records to Newco.  Notwithstanding the forgoing, AT&T Japan Ltd. will provide records for the past three years and use commercially reasonable efforts to transfer prior data if it is readily identifiable and available; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | all claims, rights and defenses of the members of AT&T Japan Ltd. against third parties to the extent relating to any of the other Transferred Assets described in this Section 2 or Transferred Liabilities, whether choate or inchoate, known or unknown, contingent or non-contingent, including all attorney work-product protections, attorney-client privileges and other legal protections and privileges to which AT&T Japan Ltd. may be entitled in connection with any of the other Transferred Assets or Transferred Liabilities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.   | EXCLUDED ASSETS |
|----------------|-----------------|

| (c) | all trade accounts receivable including billed accounts receivable, unbilled accounts receivable, unapplied cash, allowances for doubtful accounts receivable; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | other intangibles. |
|-----|--------------------|

| 4.   | TRANSFERRED LIABILITIES |
|----------------|-------------------------|

| (a)   | all trade accounts payable primarily relating to the Transferred Contracts as of the Business Transfer Closing Date, as summarized  in Annex 4(a); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all accrued invoices primarily relating to the Transferred Contracts as of the Business Transfer Closing Date, as set out in Annex 4(b)(i) and Annex 4(b)(ii); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all Liabilities of AT&T Japan Ltd. arising on, prior to or following the Business Transfer Closing Date under the contracts set out in Annex 2(b) included in the Transferred Assets; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | all other Liabilities arising out of, relating to or incurred in connection with the Transferred Assets or Transferred Employees of AT&T Japan Ltd. including (i) the operation of the Transferred Business after the Business Transfer Closing Date, (ii) any other condition arising on, prior to or following the Business Transfer Closing Date with respect to the Transferred Assets, and (iii) accrued compensation absences set out in Annex 4(d). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | RETAINED LIABILITIES |
|----------------|----------------------|

| (a)   | any Liability to the extent arising out of or relating to any Excluded Asset; |
|-----------------|-------------------------------------------------------------------------------|

| (b)   | all Liabilities arising out of AT&T Japan Ltd.’s activities relating to, and asserted by or on behalf of one or more of, the Target Employees of AT&T Japan LTD. who do not transfer; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | all Liabilities arising out of or relating to that certain executive incentive plan maintained by AT&T Japan Ltd. for the benefit of certain of the Executives as set out in Annex 4(d); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | all accrued Liabilities arising out of or relating to employee incentive awards maintained by AT&T Japan Ltd.; |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (f) | all accrued Liabilities arising out of or relating to team awards maintained by AT&T Japan Ltd.; |
|-----|------------------------------------------------------------------------------------------------------|

| (g) | all accrued Liabilities arising out of or relating to year-end employee bonuses maintained by AT&T Japan Ltd.; |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (h) | all accrued Liabilities arising out of or relating to local country income taxes withheld; |
|-----|--------------------------------------------------------------------------------------------|

| (i) | all accrued Liabilities arising out of or relating to local country workers compensation; |
|-----|-------------------------------------------------------------------------------------------|

| (j) | all accrued Liabilities arising out of or relating to short-term interest payable to affiliates; |
|-----|--------------------------------------------------------------------------------------------------|

| (k) | all Liabilities relating to long-term notes and long-term interest payable to affiliates; |
|-----|-------------------------------------------------------------------------------------------|

| (l) | all accrued Liabilities arising out of or relating to income taxes; |
|-----|---------------------------------------------------------------------|

| (m) | all other Liabilities relating to wage, salary and other benefit for Transferred Employees of AT&T Japan Ltd. prior to the Business Transfer Closing Date; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | all AGN circuit accruals as of the Business Transfer Closing Date. |
|-----|--------------------------------------------------------------------|

----

| 6.   | PURCHASE PRICE |
|----------------|----------------|

| (a) | The purchase price for the transfer of the Transferred Assets and assumption of the Transferred Liabilities (“Business TransferPurchase Price”) is ¥■ (excluding consumption tax).  Newco will deliver the Purchase Price plus consumption tax by wire transfer of immediately available funds, to an account to be designated by the Seller. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | REQUIRED PROCEDURES |
|----------------|---------------------|

| 8.   | EMPLOYEE MATTERS |
|----------------|------------------|

| 9.   |  TRANSFER VOID AB INITIO |
|----------------|-------------------------------|

|   | In the event that the Closing does not occur, any purported transfer of the Transferred Assets and assumption of the Transferred Liabilities under the LTD Business Transfer Agreement shall be void ab initio and Newco shall acquire no rights in such Transferred Assets nor assume any obligations relating to such Transferred Liabilities.  In the event that the Closing does not occur, AT&T Japan Ltd. shall immediately return to Newco the Business Transfer Purchase Price. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | GOVERNING LAW |
|-----------------|---------------|

|   | The LTD Business Transfer Agreement will be governed by and construed under the laws of Japan, without regard to conflicts of laws principles that would require the application of any other law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | JURISDICTION |
|-----------------|--------------|

|   | All disputes, controversies, or differences which may arise between the parties out of or in relation to or in connection with the LTD Business Transfer Agreement, or of the breach thereof, will be subject to the exclusive jurisdiction of the Tokyo District Court. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Article 1   | (Absorption-type Company Split) |
|-----------------------|---------------------------------|

| Article 2   |  (Assets, Liabilities, and Other Rights and Obligations) |
|-----------------------|---------------------------------------------------------------|

| Article 3   | (Shareholder Approval) |
|-----------------------|------------------------|

----

| Article 4   | (Shares to be Issued on Company Split and Allocation of Shares) |
|-----------------------|-----------------------------------------------------------------|

| Article 5   | (Effective Date) |
|-----------------------|------------------|

| Article 6   |  (The Stated Capital and Capital Reserve Amounts of Assignee) |
|-----------------------|--------------------------------------------------------------------|

| Article 7   | (Amendment to Split Conditions and Cancellation of the Split) |
|-----------------------|---------------------------------------------------------------|

----

| Article 8   | (Transfer of Rights and Obligations) |
|-----------------------|--------------------------------------|

| Article 9   | (Effect of the Agreement) |
|-----------------------|---------------------------|

| Article 10   | (Governing Law) |
|------------------------|-----------------|

| Article 11   | (Matters for Consultation) |
|------------------------|----------------------------|

----

----

----

| For Seller:                               | For Newco:                                       |
|-------------------------------------------|--------------------------------------------------|
| Name: Atsushi Yamamoto                    | Name: Tomofumi Sekiyama                          |
| Title: Director – Global Operations | Title: Vice President, Business Operation        |
| Company: AT&T Japan                   | Company: IIJ Global Solutions                    |
| Phone: 03-5545-9847                       | Phone: 03-5545-9655                              |
| E-mail address: ay1725@att.com            | E-mail address:tomofumi.sekiyama@iijglobal.co.jp |

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| AT&T Japan LLC                                                                                     | Communications Services KK                                                     |
|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| By: ______________________________Name: Chris F. CassTitle: Authorized Signatory of AT&T Japan LLC | By: ______________________________Name: Toshinori IwasawaTitle: President, CEO |

----

----

----

| For Seller:                               | For Newco:                                       |
|-------------------------------------------|--------------------------------------------------|
| Name: Atsushi Yamamoto                    | Name: Tomofumi Sekiyama                          |
| Title: Director – Global Operations | Title: Vice President, Business Operation        |
| Company: AT&T Japan                   | Company: IIJ Global Solutions                    |
| Phone: 03-5545-9847                       | Phone: +81-3-5545-9655                           |
| E-mail address: ay1725@att.com            | E-mail address:tomofumi.sekiyama@iijglobal.co.jp |

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| AT&T Japan LLC                                                                                 | Communications Services KK                                                            |
|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| By: ____________________ Name: Chris F. CassTitle: Authorized Signatory of AT&T Japan LLC | By: ____________________ Name: Toshinori IwasawaTitle:  President, CEO |

----