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STIPULATION TO DISMISS NEC ELECTRONICS AMERICA, INC.

CASE NO. 2:05-CV-00494 (TJW) - 1 -

Pursuant to Federal Rule of Civil Procedure 41(a)(1) and (c), Plaintiffs Technology Properties Limited ("TPL") and Patriot Scientific Corporation ("Patriot") and Defendant NEC Electronics America, Inc. ("NECELAM") (collectively, “the Parties”), having resolved the issues between them, hereby stipulate and agree, through their respective counsel, that the remaining claims among these parties shall be dismissed, with each party bearing its own costs and attorneys' fees. Plaintiffs' claims shall be dismissed with prejudice and Defendant NECELAM’s counterclaims shall be dismissed without prejudice.

The purpose and effect of the words without prejudice in a judgment, order, or decree dismissing a suit are to prohibit the defendant from using the doctrine of res judicata in any later action by the same plaintiff on the subject matter. The doctrine of res judicata (from the Latin, "a thing decided") is based on the importance of finality in the law. If a court decides a case, the subject of that case is firmly and finally decided between the persons involved in the suit, so no new lawsuit on the same subject may be brought by the persons involved. Therefore, the words without prejudice protect the plaintiff from a defendant's res judicata defense.

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