Webster L. Hubbell has agreed to pay $300,000 to his old law firm in restitution for money he admitted stealing by overbilling the Rose Law Firm and its clients by $482,410.

Hubbell, a former U.S. associate attorney general, is serving a 21-month federal prison term for the theft. The settlement approved Monday by a federal judge resolves a lawsuit the firm filed against him.

Attorney Ron Clark, now Rose's chief executive officer, said the firm settled for less than it is owed because of concern over Hubbell's ability to earn money. Rose refunded Hubbell's overcharges to the clients last year, so any money Hubbell pays would go to the firm.

The settlement calls for Hubbell to make regular payments on the debt beginning 90 days after he is freed from prison, until $300,000 is paid. Also, half of any gross income he makes above $100,000 per year will go to Rose.

A paper trail linked Hubbell to the overbillings, which allegedly went to personal merchandise including lingerie and items from high-priced boutiques.

He pleaded guilty Dec. 6, 1994, to felony mail fraud and tax evasion after an investigation by Whitewater prosecutor Kenneth W. Starr.