Employment Regulations

Chapter 1 General Provision

Article 1 Purpose

These employment regulations (hereinafter referred to as “the Regulations”) purposes to clarify working conditions, maintaining workplace order and set out employment relevant particulars of employees of Andone Co., Ltd (hereinafter referred to as “the Company”).

Article 2 Definition of Employee

Employees under the Regulations are persons who have concluded an employment contract with the Company after undergoing the procedure of "Employment" specified in Chapter 2.

Article 3 Types of Employee

The types of employees are as follows.

1. Permanent Employee

Person employed by contract without a fixed period

1. Part Timer

Person employed by shorter working hours than permanent employee etc.

Article 4 Scope

The Regulations applies to all employees specified in the preceding Article.

Article 5 Exemptions

As a general rule, the provisions of the Regulations apply to the working hours, breaks and holidays of persons who fall under any of the following categories, but persons who fall under category 1 are subject to their own management.

① Person who is in the position of management or supervision specified by the Company.

② Person who is dealing with confidential affairs specified by the Company.

2 The provisions of Overtime (Article 45) and Work on Holiday (Article 46) shall not apply to persons who fall under any of the categories of the preceding clause.

Article 6 Obligation of Regulation Compliance

Employees must comply with the Regulations and other rules, faithfully fulfill their obligations and exercise their rights properly.

Article 7 Reporting Procedure

Procedures for notifications prescribed in the Regulations and the accompanying rules of the Regulations shall be carried out by the employees themselves by the prescribed date, unless there are any special reasons.

2 In the case of violating the provisions of the preceding clause, there are cases where the handling cannot be applied.

Chapter 2 Human Resource

Section 1 Employment

Article 8 Employment

The Company employ those who have passed the screening examination among those who wish to join the Company.

Article 9 Employment Screening

Those who wish to join the Company shall submit the documents listed in the following. If the Company deems it unnecessary, part of the documents may be omitted.

1. Resume (Attach with a photo taken within 3 months before the submission. Those who are able to handwrite should handwrite the resume.)

2. Career Record

3. Certificate of Medical Examination (which issued within 3 months before the submission. It may be replaced with a medical checkup at the time of employment.)

4. Academic transcript of latest academic background (Only for new graduate recruitment)

5. Graduation Certificate of latest academic background or Certificate of Expected Graduation (Only for new graduate recruitment)

6. Other qualification certificates

7. Other documents specified by the Company (Driving license etc.)

Article 10 Employment Contract and Clarification of Working Conditions

New employees will conclude an individual employment contract with the Company before joining the Company. Upon concluding the employment contract, the employment contract (also as a labor condition notice) and the Regulations are issued to clarify the following working conditions.

1. Period of Labor Contract

2. Workplace and type of work engaged in

3. Time of starting and ending of work, requirement of work exceeding the normal working hours, breaks, days off, vocations

4. Determination, calculation, payment method, closing date and payment period of salary

5. Reason of retirement and resignation, procedure for resignation, reasons and procedure of dismissal

Article 11 Documents to be Submitted

Those adopted as employees shall submit the following documents within 2 days after employment. If the Company deems it unnecessary, part of the documents may be omitted.

1. Agreement of joining the Company

2. Agreement of Confidentiality and Personal Information Protection

3. Letter of Identity Guarantee (written by the guarantor)

4. Notification Form of Commutation Expenses Detail

5. Bank Account Form for Salary and Incentive Payment

6. Application for Dependent Family Member

7. Application for (reassignment) Exemption for Dependents of Employment Income Earner

8. Certificate of Items Shown on the Residence’s Card

9. Withholding Income Tax Record (for those who had a job previously)

10. Certificate of Employment Insurance (for those who had a job previously)

11. Pension Book or Basic Pension Number

12. Any other documents deemed necessary by the Company

2 If the prescribed documents are not submitted by the due date, the employment may be regarded as declined.

Article 12 Cancellation of Employment

The Company may cancel the employment if it comes under any of the followings.

1. When the employee does not submit necessary documents by the deadline specified by the Company

2. When the requirements set for the employment is not fulfilled

3. When a employee who was expected to graduate cannot graduate

4. When it is deemed difficult to work due to mental, physical illness or other health reasons

5. When the employee cannot work from the scheduled start date but after two or more weeks

6. When there are false statements in the submitted resume, career record or other documents.

7. When the employee told false information at the interview.

8. When the employee has involved in criminal activities

9. When it is recognized to have relationship with anti-social forces

10. When there are management reasons which necessary to cancel the employment

11. When it is recognized that there is a possibility of violating other employment rules and regulations

2 If the employee fails to go to work without a legitimate reason before the commuting time of the first working day specified by the employment notice, the company shall be deemed to have withdrawn the employment adoption and no employment offer has been made.

Article 13 Obligation of Reporting Change of Personal Information

When there are any changes to the following information which are already submitted, the employee should fill in a particular form to the Company within seven days from the changes. In addition, other than the documents prescribed in the preceding Article, those related to the changes shall be attached upon submission.

1. Name of employee or persons belonging to the same registered household

2. Household composition

3. Current address, home phone number, mobile phone number

4. Commuting route and commuting fee

5. Educational background

6. License and qualification possessed

7. Other items required by the Company

Article 14 Guarantor of Identity

In principle, the guarantor of identity shall be two persons, the parent of the employee or an adult who earn his/ her own living, possesses civil rights and deemed appropriate by the Company. However, if the company deems it unnecessary, there is no need to be prescribed.

2 The warranty period of the identity guarantee contract is five years.

3 When it comes under any of the following situations, the Company will notify the guarantor promptly.

1. When the Company found that the guarantor may be liable because the employee is inappropriate or dishonest at work.

2. When the responsibilities of the guarantor are likely to be heavier or more difficult to supervise due to the changing of duties or workplace of the employee.

4 In the case of receiving the notice under the preceding clause, the guarantor of identity can cancel the identity guarantee contract.

Article 15 Change of Guarantor of Identity

When it comes under any of the following situations, the employee must find a new guarantor of identity immediately and submit the Letter of Identity Guarantee to the Company. However, the period of the guarantee contract shall be the continuance period of the former guarantee contract.

1. When the guarantor of identity died

2. When there is no guarantor of identity due to the cancellation of the identity guarantee contract

3. When the identity guarantor is lacking of the requirement set forth in the first clause of the previous Article

2 Employee shall notify the Company whenever there is a change in the address or name of the guarantor of identity.

Article 16 Probationary period

For employee employed under Article 8, a probationary period shall be established for two months from the date of employment. However, those who have special skills or experience may not have a probationary period.

2 The probationary period set in the preceding clause may be shortened or extended once within one year from the day of employment due to circumstances. In addition, in case of extension, the Company will notify the employee by 2 weeks in advance.

3 Employee who is deemed inappropriate to continue to work as employee due to any of the following situations during probationary period or at the time of completing the probationary period shall be dismissed base on "Advance Notice of Dismissal" and "Limitation on Dismissal " of the Regulation. For those who have not yet completed the first 14 days from the probation start date, they can be dismissed immediately without paying a dismissal notice allowance.

1. When the Company found out that the contents described in the documents submitted at the time of recruitment selection and employment or the employee himself/ herself said at the time of recruitment are different from the facts, or he/ she was hiding the past illness which may hinder the performance of work

2. When it is deemed that there is inappropriate behavior or lack of cooperativity in the workplace

3. When the employee is late without permission for no legitimate reason

4. When the employee is absence without permission for no legitimate reason

5. When it comes under the cause of "Dismissal" in the Regulations

6. When there are other reasons equivalent to the preceding clauses

4 For the employee who are in probationary period, whether or not the Company employs him/ her as a regular permanent employee is comprehensively judged by his/ her business suitability etc. The judgment will be done at the time of completing of probationary period. The probationary period shall be included in the number of years of service.

Section 2 Staff Reassignment

Article 17 Training

As daily instruction and order, the Company may appoint the employee to attend trainings (including general education training and training camp).

2 When the Company appoints the employee to the training camp, the employee is prohibited from going out and staying outside from the training camp.

Article 18 Business Trip/ Workplace Rearrangement

As daily instruction and order, the Company may appoint the employee to go on a business trips and rearrange workplace.

2 If it is difficult to calculate the working hours when employee work outside the office due to business trips, it will deem that the employee has worked for regular working hours. However, if the department head has given instructions in advance, it is not restricted with this regulation.

Article 19 Relocation and Change of Work Duties

When it is necessary for business of the Company, the Company may appoint employee to relocate or change the work duties. In this case, the employee cannot refuse without legitimate reasons.

2 Employee who received the appointment set forth in the preceding clause shall complete the handover within the designated number of days from the day after the day receiving the appointment. In case of relocation, employee should set off for the new post on or before the designated date.

Article 20 Transfer to other Company with or without changing registry with the Company

When it is necessary for business operation of the Company, the Company may appoint the employee to transfer to other Company with or without changing the registry with the Company. In this case, the employee cannot refuse without legitimate reasons. However, for the transfer with changing the registry with the Company, the consent of the employee shall be obtained.

2 Employee who received the appointment set forth in the preceding clause shall complete the handover to the successor by the day of the reassignment.

3 The Company will establish the employment condition of the company of transferal individually when appointing the employee to transfer to other Company (with or without changing the registry with the Company).

Section 3 Leave of Absence from Duty

Article 21 Reason for Leave of Absence

When an employee comes under any of the following situations, he/ she shall take a leave of absence. However, cases where there is no expectancy of reinstatement are excluded.

1. When absenteeism due to non-work related injury or illness (hereinafter referred to as “Personal Injury or Illness”) is over 30 days (including holidays during absenteeism) and the injury or illness does not recover. Recover means recovered to the extent that usual work can be carried out in the same level as before the injury or illness.

2. When the Company determines that the services provide is inadequate due to a mental or physical illness and that the work is hindered as the injury or illness does not recover.

3. When the Company appoints the employee to transfer to other company.

4. When the employee applied to have a leave of absent due to person reason with the permit from the Company.

5. Other than the preceding clauses, when the Company deems that it is appropriate to make a leave of absence due to special circumstances.

2 The employ is unpaid during the leave of absence.

3 The qualification of social insurance insured person continues even during the leave of absence. Collection method of the individual share of social insurance premiums during the leave period is defined in the Chapter about salary in Chapter 5.

Article 22 Period of leave of absent and the corresponding management

For the employee who is appointed to take a leave of absence set forth in the first clause in the preceding article, the duration limit of the leave of absent is set as follows.

1. First term in the first clause of preceding article one month

2. Second term in the first clause of preceding article one month

3. Third term in the first clause of preceding article the period of transfer

4. Fourth and fifth term in the first clause of preceding article period that the Company accepts

2 Notwithstanding the provision in the preceding clause, if the Company deems it particularly necessary, the period may be extended. Regardless whether there is extension or not, it is obligatory to report the recent condition once a month.

3 The Company can appoint the employee to submit documents that can prove the reasons of the leave of absence. If the leave of absent is due to personal injury or illness, the Company may request the medical certificate from the doctor designated by the Company in order to judge whether it is necessary to have the employee taking the leave of absence. In this case, employee cannot refuse without legitimate reasons.

4 Regarding the documents set forth in the preceding paragraph, for those with a fixed validity period, each time when the validity period expires, and for the medical certificate from the doctor, each time the employment prohibition period stated in the medical certificate expires, the corresponding documents must be submitted again.

5 If the employee who is appointed to take a leave of absent set forth in the first or second term of the first clause of preceding article reinstated before the period of leave of absence expires and he/ she is absent again due to the same or similar reason for the leave of absence within 30 days from reinstatement, he/ she is appointed to take a leave of absent again. In this case, the period of leave of absent is not suspended. The period before and after is calculated in total.

6 The period of leave of absence shall not be included in the number of years of service, except the case of the third term of the first clause of preceding article.

Article 23 Reinstatement

Employee shall promptly submit a reinstatement application when the reason of leave has lost efficacy during the period of leave of absence. If the Company deems that it is appropriate and permitted to reinstate, the employee can be reinstated.

2 To judge whether the reinstatement from the leave of absence due to the first and second term in the first clause of Article 21 (Personal Injury or Illness/ mental illness etc.) is appropriate or not, the Company may appoint the employee to submit the recovery certificate (medical certificate). When the Company requests to meet the doctor who issued such medical certificate in order to hear about the situation, the employee must cooperate in it.

3 Even when the medical certificate set forth in the preceding clause is submitted, the Company may appoint the employee to submit of the recovery certificate (medical certificate) from the doctor specified by the Company. In this case, if employee refuse without legitimate reason, the medical certificate submitted by the employee may not be adopted as a material for judging whether or not the reason for leave of absence has lost efficacy.

4 At the time of reinstatement, in principle, the work duties of the employee shall be the same as before the leave of absence. However, in cases that it is unavoidable or difficult to reinstate for the work duties before the leave of absence, the employee shall reinstate to another job category/ department. If it is deemed not to be able to fulfill the duties as management, the employee shall dismiss from the previous position. In this case, salaries and other employment conditions may be changed depending on the work duties.

5 Even if the period of leave of absence ended, if the reason for leave of absence is still there, the employee will be treated as naturally retired from the day of the period of leave of absence ended.

Section 4 Resignation, Retirement and Dismissal

Article 24 Naturally Retire

When the employee comes under any of the following situation, he/ she will be treated as retire from that day and the status of an employee will be lost from the following day.

1. When the employee died

2. When the period of leave of absence ended but still not able to reinstate

3. When taken up a director post

4. When the employee did not contact the Company and his/ her whereabouts is unknown for more than 30 days

5. When the contract of the employee who have a fixed period of employment contract ended

Article 25 Consensual Resignation

Employee who wish to resign must notify his/ her head of department at least two months before the desired resignation date.

2 After the notification set forth in the preceding clause, the employee shall submit a letter of resignation with reasons to the Company via the head of department 30 days or more prior to the desired resignation date. In principle, the request of resignation is accepted at that time. And therefore, the request cannot be withdrawn. (hereinafter referred to as “the Consensual Resignation”.)

3 Even if the letter of resignation set forth in the second clause is not submitted 30 days or more prior to the desired resignation date, there are cases where the request of resignation is accepted according to the circumstances.

4 Employee who would like to have Consensual Resignation shall comply with the following provisions.

1. The employee shall complete the handover of his/ her previous duties to the successor and ensure that there is no hindrance to the work until the day of resignation. In case of hindering the work due to negligence, in addition to disciplinary penalty, there are cases in which resignation allowance are not paid or reduced.

2. If there are instructions on work from the Company, the employee must follow the instructions until the day of resignation.

Article 26 Retirement

The day of retirement of employee shall be the last day of the month to which the age of 65 has reached (the day before the birthday of 65 years old), and he/ she shall be retired on that day.

Article 27 Normal Dismissal

The Company will dismiss the employee if the employee comes under any of the following situations.

1. When it is deemed that the working performance or business ability of the employee is markedly bad and is not suitable for employment

2. When it is deemed that the employment situation of the employee is remarkably poor, such as not complying with the instructions and orders from the Company without a legitimate reason and cannot fulfill the duties as an employee.

3. When hindering the work due to the lack of cooperation with other employees

4. When the employee neglects to acquire the knowledge and skills that the Company needs

5. When the employee refuses to transfer to other company, relocate, change of job category or change his status in the office without legitimate reasons

6. When it is deemed not qualified to be an employee after the reviewed the health status, skills, working performance during the probationary period

7. When the employee is deemed cannot perform his/ her duty due to mental or physical disability etc.

8. When the employee is absent for more than 2 weeks without any reasons

9. When the Company pays compensation for dismissal under Article 81 of the Labor Standards Act

10. When the work-related injury or illness is not recovered even after three years and the Injury and Disease Compensation Pension is received from Industrial Accident Compensation Insurance Act or it is supposed to receive it after that day

11. When the Company is not possible to continue the business and the business is terminated or discontinued

12. When it is necessary for the Company to reduce or change the business, close a department, etc due to unavoidable circumstances and it is difficult to assign the employee to other duties

13. When there is an act to lose the trust of the Company

14. When the employee comes under a serious disciplinary action

15. Even if the employee comes under the disciplinary action that not including in the preceding clause, but he/ she is deemed there is no prospect of improvement as the employee does not show any repentance and repeating the same action

16. When there are other reasons equivalent to preceding clauses

Article 28 Advance Notice of Dismissal

In case of the dismissal according to the preceding article, the Company shall give the employee either an advance notice of 30 days before the date of dismissal or a notice allowance for dismissal for 30 days of average salary and dismiss on the same day. However, in cases that employee comes under any of the following situations, the Company is not require to give the advance notice or notice allowance for dismissal.

1. The employee who is in probationary period and within 14 days from the probation start day

2. When the Company received the certification of exclusion of dismissal notice from the government authorities if the employee needs to dismissal as taking responsibility

3. When the Company received the confirmation from the government authorities showing that the Company is impossible to continue the business due to reasons such as emergency disasters

2 The number of notice days in the preceding clause can be shortened by the number of days on which the average salary is paid.

Article 29 Limitation on Dismissal

The company shall neither dismiss the employee who is having or within 30 days after the leave of absence due to work-related injury or illness, nor the employee who is having leave of absence according to Article 65 of the Labor Standards Act due to her pregnancy delivery or within 30 days after such leave. However, there is exceptional cases when it comes under any of the following situations.

1. When the Company pays compensation for dismissal under Article 81 of the Labor Standards Act

2. When the work-related injury or illness is not recovered even after three years and the Injury and Disease Compensation Pension is received from Industrial Accident Compensation Insurance Act or it is supposed to receive it after that day

3. When the Company received the confirmation from the competent directors of Labor Standards Inspection Offices showing that the Company is impossible to continue the business due to natural disaster or other unavoidable reasons

2 The Company shall neither dismiss or disadvantageously treat the employee who is requesting a childcare leave or a nursing care leave, nor the employee who got the childcare leave or nursing care leave.

3 The Company shall not dismiss a female employee because she has married. Also, the Company shall not dismiss or disadvantageously treat a female employee due to pregnancy, giving birth or similar reasons.

Article 30 Obligation of retirees

Those who have lost their status as an employee due to resignation, retirement or dismissal shall promptly return all goods, data files, software, hard disks, etc that lent by the Company. If the employee has a debt to the Company, he/ she must pay off the debt.

2 The goods lent by the Company set forth in the preceding clause means the following items.

1. Health insurance card

2. Company emblem

3. Employee ID card

4. Name card with Company name

5. Loans borrowed from the Company

6. Other goods lent by the Company

3 Even after the employment is terminated, employee shall not disclose any information about the sales/ customers or other confidential business information of the Company.

4 When the employee resigns/ retires, an "Agreement on handling of information after resignation/ retirement" shall be submitted.

5 For employee who is accommodating in the housing of the Company, he/ she shall evacuate within 7 days from the day of resignation/ retirement.

Section 5 Certification of Resignation/ Retirement etc.

Article 31 Certification of Resignation/ Retirement

When the employee who has resigned/ retired or was dismissed, requests a certificate for the following information, the Company should deliver it without delay.

1. Period of service

2. Types of work

3. Status in Company

4. Salary

5. Reason for resignation/ retirement/ dismissal

2 In the certificate set forth in the preceding clause, only information requested (from the first term to the fifth term) by the employee who retired or was dismissed, shall be included.

Article 32 Certificate of Reason for Dismissal

When the Company received request from the employee who was dismissed for a certificate of reason for dismissal between the day of notice of dismissal and the day of dismissal, the Company shall issue a certificate indicating the corresponding reason. In addition, when the employee requests a certificate only on the fact of dismissal, the Company shall issue a certificate stating only that fact.

2 If the employee resigns due to reasons other than the dismissal after the day of notice of dismissal, the Company will not issue a certificate of reason for dismissal.

Chapter 3 Working Terms

Section 1 Working hours, Break etc.

Article 33 Prescribed working hours, Time of starting/ ending of work and Break

The prescribed working hours of the Company shall be within 8 hours per day and 40 hours per week. Times of starting and ending of work and break are as follows.

Time of starting of work：8:30 Time of ending of work：17:30

Time of break：12：00 – 13：00 (60 minutes)

If working hours and time of break change due to the work content, it will be based on individual labor condition notice.

2 The times of starting and ending of work set forth in the preceding clause are the times the employee to start and end the work, not the time of arriving or leaving the office. If the employee cannot start the work at the starting time, the Company will treat it as late and will not pay salary for the time until the starting of work.

Article 34 Annually Varied Working Hour System

Notwithstanding the provisions of Article 33, the Company may appoint the employee to work under the Annually Varied Working Hour System which is concluded in the Labor-management Agreement. And the Labor-management Agreement is concluded with a labor union organized by a majority of the employees at the workplace, or if there is no labor union organized by a majority of employees, an employee representing a majority of the employees, based on Article 32-4 of the Labor Standards Act, including the following items.

1. Scope of target employees

2. Period Covered / Date Started

3. Labor day in target period and prescribed working hours by each working day. However, when establishing a segmentation period, (3) ‘Working day in the first segmentation period and prescribed working hours on each working day, and (3) “Total number of working days and total prescribed working hours in each period for the remaining segmentation period

4. Specific period

5. Validation period

2 The Labor-management Agreement concluded in case of the preceding clause, shall be attached to employment regulations and as a part of the employment regulations. Items that are not stipulated in the employment regulations shall be in accordance with the provisions of said agreement.

Article 35 Changes in Time of starting/ ending of work and Break

The time of starting/ ending of work and break in Article 33 may be brought forward or postponed when notified in advance in case of business necessity.

Article 36 Flextime system

Regarding the starting and ending time of employee, if the Company deems necessary to apply a flextime system, it shall be based on employee’s own decision notwithstanding the provision of Article 33.

2 In case where the flextime system is applied according to the provision of the preceding clause, the core time shall be from 10 am to 3 pm. Also, the time of starting and ending of the flextime system are 7am and 10 pm respectively.

3 In introducing the flextime system stipulated in this article, a written agreement shall be concluded with the person representing the majority of the employees and the specific contents of the flextime system should be stated in the Labor-management Agreement.

Article 37 Use of break time

Employee is free to use the break time. However, if going out during the break, the employee must obtain permission from the head of department.

Article 38 Time for Child Care

When a female employee is raising an infant under the age of 1 requests time for childcare, a child-rearing time of 30 minutes each twice a day in addition to the predetermined break time shall be given to the employee. If the employee wishes, the employee shall be given one hour per day without dividing into two.

2 Time for child care set forth in this Article shall be unpaid.

Article 39 Guarantee of the Exercise of Civil Rights

The Company shall not refuse the request from employee for time necessary to exercise the right to vote and other civil rights or to perform public duties during working hours. However, the Company may change the time requested by the employee as long as such change does not hinder the exercise of said rights or the performance of said public duties.

2 When requesting an exemption from work under the preceding clause, employee shall notify the head of department in advance according to prescribed procedures.

3 The time of civil rights exercise prescribed in this Article shall be unpaid.

Article 40 Working Hours of Business Trips etc

When an employee goes for business trip or works outside the workplace for business operations of the Company, if it is difficult to calculate the working hours, it is deemed that he/ she has worked for the working hours set forth in the Regulations. However, this shall not apply to the cases where the head of department has given instructions in advance.

2 Notwithstanding the provisions of the preceding clause, in carrying out business operations, in case where it is usually necessary to work beyond the prescribed working hours, it is necessary to sign a written agreement with the employee representative, notify the competent directors of Labor Standards Inspection Offices. And the employee shall be deemed to have worked for the time specified in said agreement.

Section 2 Days Off, etc

Article 41 Days Off

The days off of employee depends on the calendar of the Company

In addition, when days off change depending on the work content, it shall be based on individual labor condition notice etc.

2 For employee who work on Annually Varied Working Hour System, days off are determined according to the annual work schedule.

3 For the days off set forth in the preceding clause, number of days off exceed the legal holidays shall be the prescribed days off.

Article 42 Transferring of Days Off

When it is necessary for business operation, the day off set forth in the preceding article may be transferred to another day in advance. In this case, in principle, the day off is to be transferred to the specified working day within the same week, but if unavoidable, it shall be transferred to the date specified by the Company separately.

2 In case of the preceding clause, the Company shall specify a day off for transfer and notice the employee at least one day before. In addition, even after the transferring of days off, 4 days off every 4 weeks shall be secured.

3 Notwithstanding the receiving of notice set forth in the preceding clause, the employee shall be treated as absenteeism, if an employee does not work on the day which is a working day after transferring of day off without a legitimate reason.

Article 43 Substitute Days Off

Regarding the days off set forth in Article 41, employee who works on day off may be granted a leave based on the judgment on business of the Company. In this case, in principle, it shall be granted within 7 days. In addition, the substitute day off shall be unpaid.

2 When a substitute day off set forth in the preceding clause is granted, only extra salary prescribed by the Labor Standards Act (0.35) are paid for working on legal holiday. And for overtime work, only the extra salary (0.25) prescribed by the Labor Standards Act are paid.

Article 44 Work on Disasters

In cases where temporary necessity arises due to disaster or other unavoidable reasons, the Company may base on the provision of Article 33 of the Labor Standards Act to obtain permission from competent directors of Labor Standards Inspection Offices in advance and appoint the employee to work beyond the legal working hours or on legal holidays or at midnight. However, in case of imminent circumstances that is not possible to receive the permission of the competent directors of Labor Standards Inspection Offices beforehand, it shall be notified later without delay

Section 3 Overtime Work and Duties on Day Off

Article 45 Overtime Work

The Company may appoint the employee to work over specified working time in case of business necessity.

2 Notwithstanding the preceding clause, duties exceeding the legal working hours shall be appointed within the scope of "Agreement on Overtime Work/ Duties on Day Off" signed with the employee representative and reported to the competent directors of Labor Standards Inspection Offices. However, if there is a temporary necessity arises due to disasters or other unavoidable reasons, the Company may appoint the employee according to the necessity based on the provisions of "Work on Disasters" (Article 44) of the Regulations.

3 For those under the age of 18 years, in principle, the Company shall not appoint them to work beyond legal working hours. However, this shall not be applied in case of the provisions of "Work on Disasters" of the Regulations.

4 If a female employee who is pregnant or within one year after delivery requests, the Company shall not appoint them to work beyond legal working hours.

5 Regarding the duties that exceeds legal hours, extra salary shall be paid as stipulated in the chapter of Salary in Chapter 5.

Article 46 Duties on Day Off

The Company may appoint the employee to work on a predetermined day off in case of business necessity.

2 Notwithstanding the preceding clause, duties on day off shall appointed within the scope of "Agreement on Overtime Work/ Duties on Day Off" signed with the employee representative and reported to the competent directors of Labor Standards Inspection Offices. However, if there is a temporary necessity arises due to disasters or other unavoidable reasons, the Company may appoint the employee according to the necessity based on the provisions of "Work on Disasters" of the Regulations.

3 For those under the age of 18 years, in principle, the Company shall not appoint them to work on legal day off. However, this shall not be applied in case of the provisions of "Work on Disasters" of this Regulations. However, for days off other than legal days off, the Company may appoint the employee to work for a period not exceeding the legal working hours of the week.

4 If a female employee who is pregnant or within one year after delivery requests, the Company shall not appoint them to work beyond legal working hours. However, for days off other than legal days off, the Company may appoint the employee to work for a period not exceeding the legal working hours of the week.

5 Regarding the duties on legal days off, extra salary shall be paid as stipulated in the chapter of Salary in Chapter 5.

Article 47 Midnight work

The Company may appoint the employee to work at midnight from 10 pm to 5 am (hereinafter referred to as "Midnight work") or under the provisions of " Work on Disasters" of the Regulations in case of business necessity.

2 For those under the age of 18 years, in principle, the Company shall not appoint them for Midnight work. However, this shall not be applied in case of the provisions of "Work on Disasters" of this Regulations.

3 If a female employee who is pregnant or within one year after delivery requests, the Company shall not appoint them for Midnight work.

4 Regarding the Midnight work., extra salary shall be paid as stipulated in the chapter of Salary in Chapter 5.

Section 4 Leave

Article 48 Types of Leave

The types of leave are as follows.

1. Annual Paid Leave

2. Leave of Absence Before and After Childbirth

3. Leave during Menstrual Periods

4. Childcare Leave

5. Nursing Care Leave

6. Leave for Nursing a Child

7. Maternity Health Care Leave

8. Special Leave

Article 49 Number of Annual Paid Leave

For those who have worked continuously for 6 months from employment and have reported to work on at least 80 percent of the total working days, should be granted annual paid leave as shown in the table below.

2 Annual paid leave will be given according to the following table with maximum 20 days.

Working days per week	Working days per year	Years of Continuous Serving
6 months	1 year and 6 months	2 years and 6 months	3 years and 6 months	4 years and 6 months	5 years and 6 months	6 years and 6 months
5 days		10 days	11 days	12 days	14 days	16 days	18 days	20 days
4 days	169～216 days	7 days	8 days	9 days	10 days	12 days	13 days	15 days
3 days	121～168 days	5 days	6 days	6 days	8 days	9 days	10 days	11 days
2 days	73～120 days	3 days	4 days	4 days	5 days	6 days	6 days	7 days
1 day	48～ 72 days	1 day	2 days	2 days	2 days	3 days	3 days	3 days

3 Annual paid leave can be carried forward to the next fiscal year of the granted year.

4 In calculating the attendance rate, the following leaves are deemed to have reported to work.

1. The days obtained as annual paid leave

2. The leave of absent due to work related injury or illness

3. The leave of absent before and after delivery

4. Childcare Leave

5. Nursing Care Leave

6. Leave for Nursing a Child

5 The days obtained as annual paid leave shall be paid as usual

Article 50 Acquisition of Annual Paid Leave

Employee who intend to request annual paid leave shall apply the corresponding date of leave to the director by the employee himself/ herself at least seven days in advance based on the prescribed procedure. In case that there is a reason for hindering the normal business operation, the head of department may provide leave for a different period instead.

2 If the employee is unable to submit the request by 7 days in advance due to any reasons, he/ she must contact the director by telephone etc. before the time of starting of work and promptly submit the request by prescribed procedures after the leave.

3 In case where the company has received the contact and request set forth in the preceding clause but the employee did not submit the formal request by prescribed deadline, if the Company acknowledges that it is an unavoidable circumstance, it may be treated as having acquired annual paid leave for the days requested.

Article 51 Planned Grant

When the employer has decided a period/ season for giving annual paid leave according to labor-management agreement, the part that exceeds 5 days from the number of days of annual paid leave (including carry-forward from the previous year) shall be given annual paid leave according to the provision. In this case, the employee must request for annual paid leave in the period/ season specified in the Labor-management Agreement.

Article 52 The Leave of Absent Before and After Delivery

If a female employee who is expecting to give birth within 6 weeks (or within 14 weeks in the case of multiple fetuses) requests, the Company shall grant her a leave of absence. In addition, when a female employee give birth, the Company shall grant a leave for 8 weeks from the day after the day of delivery. However, if a female employee who has passed 6 weeks after delivery requests, with confirmation from doctor showing that there is no hindering to the employment, the Company shall allow the employee to reinstate.

2 The leave of absence set forth in the preceding clause shall be unpaid.

3 The qualification of social insurance insured person will continue even during the period of leave of absence before and after delivery.

Article 53 Leave during Menstrual Periods

When a female employee who is especially difficult to work during menstrual periods has requested, the Company shall grant her a leave.

2 The leave set forth in the preceding clause shall be unpaid。

Article 54 Days off, Leave of absence, other restrictions and measures relating to Child Care and Family Care Leave Law

For childcare leave, nursing care leave, leave for nursing a child and other restrictions and measures related to Child Care and Family Care Leave Law, a separate childcare and nursing care leave regulation should be followed.

Article 55 Maternity Health Care Leave

When a female employee who is pregnant or has not passed the first year after delivery requests an outpatient leave for having health guidance or medical examination under the Maternal and Child Protection Law within the prescribed working hours, the Company should grant leaves to the employee as follows.

1. Before Delivery

Up to 23 weeks pregnant once every 4 weeks

24 to 35 weeks pregnant once every 2 weeks

36 weeks pregnant to day of delivery once a week, however, when a doctor or midwife gives a different instruction, the time should follow the necessary time according to such instruction (Hereinafter referred to as "doctors etc.")

1. After Delivery (within one year)

According to the necessary time instructs by the doctor etc.

2 When a female employee who is pregnant or has not passed the first year after delivery requests about the working time which is instructed by the doctor based on the insurance guidance and health checkup under the Maternal and Child Protection Law, the Company shall take the following measures.

1. Easing commuting difficulties during pregnancy

If the employee is instructed to avoid congestion during commuting, in principle she shall reduce working hours by one hour or start working with time difference within one hour

1. Special case of break during pregnancy

If the employee is instructed about the break time, extend the break time and increase the number of breaks appropriately

1. Measures to cope with various symptoms during pregnancy or after delivery

If the employee is instructed having or the possibility of occurrence of pregnancy delivery related symptoms, reduce workload, shorten working hours or grant a leave of absence in order to be able to follow the instructions.

3 For the measures stipulated in this Article, the period or time during which the employee does not work due to the leave of absence, day off, breaks and shortened working hours, etc. shall be unpaid.

Article 56 Special Days Off

When an employee who comes under any of the following situation requests, the Company shall grant a consecutive leave for the corresponding number of days according to the request of that person. However, the days off of the Company is not included in the number of days of the special day off.

1. Leave for marriage of the employee himself/ herself 4 days

2. Leave for the wife’s delivery 1 days

3. Bereavement Leave

① Death of spouse, child, parents 3 days

② Death of siblings, spouse’s parents 2 days

③ Death of grandparents living together 2 days

2 Special leave must be requested in advance. However, if there are unavoidable reasons, the employee must be notified promptly after the leave.

3 Special leave, unless otherwise specified, shall be paid unpaid.

4 The right to claim the special leave shall be expired after 6 months since the occurrence of the cause. The reference date shall be as follows.

① Leave for marriage of the employee the day of wedding ceremony, family registration

② Leave for the wife’s delivery day of delivery

③ Bereavement Leave day of death

Section 5 Arrival and Leaving

Article 57 Arrival and Leaving of Workplace

Employees should follow the below instructions for arrival and leaving of workplace.

1. Arrive workplace before starting work, prepare for work and start working at the starting time

2. Be sure to use the designated entrance/ exit when arriving and leaving the workplace

3. When arriving and leaving the workplace, the employee himself/ herself shall leave a record of the corresponding time according to the method stipulated by the Company

4. When leaving the workplace, organize the machinery, equipment, other fixtures and documents, etc.

2 Employee shall start working from the starting time unless otherwise instructed and shall not go out of workplace unless unnecessary. Also, after the work is finished, the employee shall leave the workplace promptly and shall not stay in the workplace without any business needs.

3 In case that the employee goes or return directly to business trips or other off-site operations, the employee must obtain approval from the head of department in advance.

Article 58 Control of Entrance and Exit

For employee comes under any of the following situations, he/ she may be prohibited to enter or exit the workplace.

1. Employee with alcoholic smell

2. Employee who is deemed to be harmful in sanitation management

3. Employee who carries dangerous good which is not necessary for work, such as fire, weapons, etc.

4. Employee who hinders the business operation or employee who disturbs or is possible to disturb the discipline and order of the Company

Article 59 Late Arrival

Employee shall inform the head of department by the day before according to the prescribed procedure when injury or illness or other unavoidable reasons for late arrival. However, for any reasons that is not possible to notify by the day before, the employee must contact the head of department by telephone etc. before the time of starting of work and must report to the Company by the prescribed procedures promptly after commuting to work.

2 If the employee was late without contacting the Company before the time of starting of work and it is not accepted by the Company as having unavoidable reasons for not to contact, the Company shall treat it as unexcused lateness.

3 Non-working hours due to late arrival (including unexcused lateness) shall be unpaid.

4 Unexcused lateness, late arrival without permission are disciplinary violation, it shall be subject to penalty.

Article 60 Early Leave

Employee shall inform the head of department head in advance according to the prescribed procedure when injury or illness or other unavoidable reasons for early leave. However, for any reasons that is not possible to notify in advance, the employee must report to the Company by the prescribed procedures promptly afterward.

2 If the employee left early without notifying the Company in advance and it is not accepted by the Company as having unavoidable reasons for not to notify, the Company shall treat it as unexcused early leave.

3 Non-working hours due to early leave (including unexcused early leave) shall be unpaid.

4 Unexcused early leave, early leave without permission are disciplinary violation, it shall be subject to penalty.

Article 61 Going out for Private Matter

Employee shall use break time when going out for private use. However, even during breaks, employee has to obtain permission from the head of department in case he/ she needs to go out.

2 Notwithstanding the preceding clause, in cases where the Company deems that there are special circumstances, the employee shall be permitted to go out for private matter during the working hours. In this case, the employee shall notify the Company in advance.

3 If the employee went out for private matter without notifying the Company in advance and it is not accepted by the Company as having unavoidable reasons for not to notify, the Company shall treat it as unexcused going out for private matter.

4 Non-working hours due going out for private matter (including unexcused going out for private matter) shall be unpaid.

5 Unexcused going out for private matter, going out for private matter without permission are disciplinary violation, it shall be subject to penalty.

Article 62 Absenteeism

Employee shall inform the department head in advance according to the prescribed procedure when injury or illness or other unavoidable reasons for absence. However, for any reasons that is not possible to notify in advance, the employee must contact the head of department by telephone etc. before the time of starting of work and must report to the Company by the prescribed procedures promptly after commuting to work.

2 If the employee was absence without contacting the Company before the time of starting of work and it is not accepted by the Company as having unavoidable reasons for not to contact, the Company shall treat it as unexcused absence.

3 If absenteeism continues for more than 7 consecutive days (except days off of the Company), if the reason is due to injury or illness, in addition to the notification in each of the preceding clause, a medical certificate of the doctor shall be submitted. If the reason is due to something other than injury or illness, certification document or letter of reason should be submitted.

4 In case of the preceding clause, if the Company deems it necessary, he/ she shall submit a medical certificate of doctor specified by the Company.

5 Non-working hours due to late absenteeism (including unexcused absence) shall be unpaid.

6 Unexcused absence, absence without permission are disciplinary violation, it shall be subject to penalty.

Article 63 Special case of no penalty handling

If the employee comes under the following situations and the prescribed procedure is taken when unavoidably absence, late, leave early or going out, it shall be treated as no penalty handling.

1. When medical treatment is required due to work related injury or illness

2. When exercising the right as public citizen, etc., such as voting rights, or executing public duties

3. When traffic is cut off or is deemed unavoidable due to stoppage by natural disasters or other similar disaster

4. When there is traffic blockage or isolation due to the Infectious Disease Prevention Law etc. However, it is not applied if the employee is suffering from such disease.

5. When the company deems that there is reason to comply with the preceding clauses

Chapter 4 Service Discipline

Article 64 Basic Principles of Service

Employee must aware himself/ herself as a member of the Company, respect to responsibility, work hard on the business operation and focus on his/ her own work during working hours.

2 In carrying out the duties, the employee must comply with the instruction on business and cooperate with the colleagues mutually to strive for improvement on work efficiency and to contribute to the development of the business.

3 In addition to complying the rules stipulated in the Regulations and other regulations accompanying the Regulations faithfully, employee should actively cooperate in maintaining the discipline, internal order and a healthy work environment in workplace.

Article 65 Rules of Service

Employee must always comply with the following clauses and work hard on his/ her own duties.

1. Employee shall comply with the rules, business instructions, orders of the Company, strive to maintain the disciplines, orders of the workplace, improve efficiency, respect personality of each other and devote to duties sincerely

2. If the employee is appointed to change responsible work duties or support other departments by business reasons, the employee cannot refuse without legitimate reasons

3. Employee shall concentrate on his/ her duties during working hour and shall not leave the workplace without permission from the head of department or hinder the work of other employees

4. Employee shall always keep the workplace in order, keeping cleanliness and trying to prevent theft and fire

5. Employee shall always keep his/ her appearance (clothes, hair style, makeup, accessories, nails etc.) clean and avoid the appearance that give excessively gorgeous impression when he/ she is on duty

6. Employee shall not borrow unreasonable money or receive unreasonable gifts related to work duties

7. Employee shall not receive improper benefits such as money, food and drink related to work duties from the business partner of the Company for himself/ herself or a third party

8. Employee shall not use the status of the work improperly for himself/ herself or a third party

9. When there is a change in the prescribed notified matter, promptly notify it to the Company

10. Employee shall not refuse to inspect the belongings as necessary for business or maintenance of discipline without a legitimate reason

11. Employee must cooperate on the matters to be investigated by the Company in case of business necessity

12. Employee shall not conduct sexual behavior at the workplace and by the response of the other side, give disadvantage to the working conditions or harm the work environment of the other side.

13. The sexual behavior of the preceding clause or any similar actions that would hinder other employees’ ability to perform specific duties or possible to hinder other employees’ ability to perform specific duties shall not be allowed

14. When an employee harms or damages the Company intentionally or negligently, the employee shall compensate for the harms and damages. However, in case of negligence, compensation may be reduced or exempted depending on the circumstances

15. Employee should cherish the vehicles, equipment and other fixtures of the Company, save the consumables, handle documents properly and keep them safely

16. For purposes other than business operation of the Company, employee shall not lend or bring out facilities, machinery and equipment, money, other items of the Company to others without permission of the Company

17. Employee shall not bring personal item which is not related to business operation to the facilities of Company without permission of the Company

18. Employee shall not hold any activities that are not related to work such as union activities, political activities, religious activities, etc. within the facilities of the Company without the permission of the Company

19. Employee shall not conduct actions unrelated to business operation such as speech, meeting, document distribution, fund raising, signature-collecting activity, etc. within the facilities of the Company without the permission of the Company

20. Employee shall not commute by his/ her own car without the permission of the Company. Also, the same applies to vehicles lent by others

21. Employee should obtain permission from the Company when delivering and presenting company documents or goods to people outside the Company

22. Employee shall not smoke outside the designated places within the Company

23. Employee shall not report for duty in the state of drinking alcohol

24. Employee shall not drink alcohol, sing, have private conversation, have private phone calls etc during work

25. Employee shall not disclose any matters concerning the secrets of the Company, matters relating to important confidential information, customer information, personal information of other employees and matters which are disadvantageous to the Company that the employee knew in terms of duties (also applies after retirement)

26. Employee who has register with the Company must not engage in the business of another company or in personal business without enrollment or instruction of the Company

27. Employee shall not have employed in other companies or perform competitive acts with the business of the Company without permission from the Company. Even after retirement, the retiree shall not perform any inappropriate competition to harm the business secrets or the interests of the Company. (Employee shall not have appointed as an officer or made an employment contract as an employee of a company or group which is in competitive relationship with the Company within the business area of the Company or run a business that is in competitive relationship with the Company within 2 years after retirement.)

28. Regardless of whether the employee is inside or outside the Company, the employee shall not harm the honor or credibility of the Company or act to harm the interest of the Company

Article 66 Prohibition of Sexual Harassment

Sexual harassment means to give disadvantages to the working conditions of other employees due to his/ her response to sexual behavior at work or to harm the employment environment of other employees due to sexual behavior.

2 The workplace set forth in the preceding clause shall include not only the place of employment but all places where employees carry out their duties and not only the working hours but also the hours outside the working hours that are practically considered as extension of the workplace.

3 "Other employees" in the preceding clause shall include not only the victims who have directly become sexual behavior opponents but also all employees who have been harmed to the work environment by sexual behavior.

4 All employees shall recognize other employees as equal partners in carrying out their duties, have obligation to maintain a healthy discipline and cooperative relations in the workplace and shall not carry out the followings.

1. Unnecessary body contact

2. Unnecessary utterance on the appearance and physical characteristics

3. Unnecessary questions about sexual and physical matters

4. Invasion of privacy

5. Distribution of rumors

6. Extortion of companion or sexual relations

7. Viewing, distributing, posting obscene pictures

8. Perform any acts that give disadvantages to employees who protested or refused to sexual behavior such as dismissal, unjustifiable personnel evaluation, rearrangement, etc.

9. Perform any acts that hinder the willingness to work of other employees or impede their ability by sexual behavior

10. Other sexual behavior that gives discomfort to opponents and other employees

5 The head of department shall not accept the sexual harassment if he/ she acknowledged there is employee receiving any sexual harassment

6 The Company shall establish a consultation window for consultation and complaint handling concerning sexual harassment and the person in charge shall be the head of department.

7 Not only victims of sexual harassment, all employees can consult and complaint about sexual behavior to the consultation window.

8 Following the correspondence manual, after confirming the facts from the employee who request consultation, the department head shall base on the report, takes into account the human rights of the employee and, according to necessity, hearing the actor, the victim, the manager and other employees.

9 Employees who are requested to hear according to the preceding clause shall not refuse without legitimate reasons.

10 Following the correspondence manual, as a measure to solve the problem, the head of department shall take necessary measures to improve the working conditions and working environment of the victims, such as penalties, reassignment of the actor, etc.

11 In responding to consultation and complaints, the privacy of related employees shall be protected and disadvantageous handling shall not be given out due to the consultation or cooperation in inspecting the facts.

12 When a case of sexual harassment arises, the head of department shall take appropriate measures to prevent recurrence, such as thoroughly notify everyone of the happenings and implement trainings, causes of incidents and recurrence preventions.

Article 67 Handling of Personal Information / Confidentiality

Matters concerning the handling of personal information shall be stipulated in the "Personal Information Handling Regulations".

2 Matters concerning confidentiality handling shall be stipulated in the "Confidentiality Regulations".

Article 68 Management of Communication of Personal Computer etc.

To prevent leakage of confidentiality of the Company, business policy, customer information, personal information of employees or to keep good internal PC environment, the Company shall investigate data etc. on the server according to the necessity.

Article 69 Inspection of Personal Belongings

In order to keeping confidentiality and to prevent accidents such as losing valuables, when the Company deems that it is necessary, the Company shall check the belongings of employees within the necessary range.

2 The inspection of personal belongings prescribed in the preceding clause shall be carried out within the necessary range prescribed in the same clause, not for criminal investigation.

3 In the case where the Company carries out the inspection of belongings, the reason of the inspection shall be clearly stated and shall do the same to all the employees of the workplace, but not to a specific employee.

4 Employees should not refuse having the inspection personal belongings set forth in the preceding clause without legitimate reasons.

Chapter 5 Salary

Article 70 Principles of Salary

Salary refers to what is paid as compensation for the labor of employees. Therefore, when an employee does not work, the Company will not pay salary except as otherwise prescribed.

Article 71 The Structure of Salary

The structure of the Salary is as follows.

Salary Standard Salary Basic Salary

Various Allowances Childcare Allowance

Commuting Allowance

Non-standard Salary Overtime Allowance

Day Off Work Allowance

Midnight Work Allowance

Article 72 Form and Method of Salary Payment

Salaries are to be paid by monthly salary or hourly salary system. In principle, the salary is to be paid by transfer to an account (personal account holder only) of a financial institution etc. that the employee wishes.

Article 73 Salary deduction

The following items shall be deducted from the salary

1. Withholding Income Tax

2. Health Insurance Premium (Including Nursing Care Insurance Premium) and Insured Person Contribution of Welfare Pension Insurance Premium

3. Insured Person Contribution of Employment Insurance Premium

4. The deductions of salary set forth in the written agreement with the employee representative

Article 74 Salary Calculation Period and Payment Date

Payment is made according to the closing date as follows.

For the salary from the 1st of the current month to the end of the current month, payment shall be made on the last day of the following month. (closing at the last day)

For the salary from 16th of the previous month to 15th of this month, payment shall be made on 15th the following month. (closing at 15th)

For the salary from 21st of the previous month to 20th of this month, payment shall be made on 20th the following month. (closing at 20th)

However, if the salary payment day falls on a holiday, in principle, it shall be made on the day before that. Depending on the days of the week, there are cases where the payment is made later. In that case, the Company shall inform the employee in advance.

2 Notwithstanding the provision of the preceding clause, when it comes under any of the following situations, according to the request of the employee (the person who had been kept the living by the corresponding income in case of the employee died), the Company shall make the salary payment for the previous labor even it is before the salary payment date.

1. When death, retirement, dismissal of the employee

2. When devoted to temporary expenses such as birth, illness, disaster, wedding or funeral of the employee himself/ herself or the person who had been kept the living by the corresponding income.

3. When the employee himself/ herself or the person who had been kept the living by the corresponding income needs to return to his/ her hometown for over a week due to unavoidable reasons

4. When there are other special circumstances and the Company deems it necessary

Article 75 Employment and Retirement in the Middle of the Calculation Period

For employment, retirement, resignation, leave of absence or reinstatement in the middle of the salary calculation period, the Company shall calculate and pay the salary of the corresponding month by the following formula.

Basic Salary＋Various Allowances	× Number of attendance days
Average monthly average working days

Article 76 Handling of Absenteeism, Late Arrival, Early Leave and Going Out for Private Matter

In principle, the time of absenteeism, late arrival, early leave and going out for private matter shall be deducted from the amount of salary per day or per hour multiplied by the total number of hours of absence, late arrival, early leaving or going out for private matter.

Basic Salary	×Number of non-working hours
Average number of hours worked per month

Article 77 Salaries of leave of absence and days off etc

Regarding the days off stipulated for annual paid holidays, the Company shall pay as for regular basis as worked for the prescribed working hours.

2 The days off and the leave of absence set forth as below are unpaid.

1. Leave of Absence Before and After Childbirth

2. Childcare Leave and Nursing Care Leave

3. Time for Child Care

4. Day or Time of Menstrual Measures

5. Time for Maternity Health Care Leave

6. Time for Civil Rights Exercise

7. The period of leave specified in Article 22 of the Employment Regulations

3 The individual share of social insurance premiums during the period of leave shall be collected by method such as transferring by the employee to the account specified by the Company.

4 If the employee is on the leave of absence for reasons attributable to the Company, the Company shall give a leave allowance. The amount of leave allowance shall be 60% or more of the average salary per day.

Article 78 Basic Salary

The basic salary is determined and paid by the Company taking into consideration the age of the employee, the number of years of service, the ability to perform the duties, work performance, work attitude and social situation etc.

Article 79 Childcare Allowance

For the employee who stipulated to a particular contract, the Company shall pay a childcare allowance of 1,000 yen for the day of having "fixed time (predetermined working hours) work" only.

Article 80 Commuting Allowance

For the employee who stipulated to a particular contract, the Company shall pay for the day of having "fixed time (predetermined working hours) work" only.

Article 81 Obligation of Reporting Changes, Reporting Inaccuracy

The employee shall notify the Company promptly when there are any changes in the commuting route or distance.

2 When neglecting the notification set forth in the preceding clause or inaccurately received the commuting allowance or other salaries due to inaccurate notification, the Company shall request for return of and give penalty based on employment regulations.

Article 82 Additional Salary

Additional Salaries are calculated and paid according to the following formula.

*Among various allowances, the commuting allowance is excluded.

(1) Additional Salary for Overtime Work (when the employee has worked beyond legal working hours)

Basic Salary＋Various Allowances	×1.25×Number of hours worked beyond legal working hours
Average number of hours worked per month

(2) Additional Salary for Working on Day Off (when the employee has worked on legal day off)

Basic Salary＋Various Allowances	×1.35×Number of hours worked on legal day off
Average number of hours worked per month

(3) Additional Salary for Midnight Work (when the employee has worked at any time between 10pm to 5am)

Basic Salary＋Various Allowances	×0.25×Number of hours worked in midnight
Average number of hours worked per month

Article 83 Salary Revision

In principle, revision of salary such as basic salary and various allowances will be made in April every year. The revision is decided individually according to the performance of the Company and performance record of the employee himself/ herself. However, the salary revision is only for employees with more than 6 months of service on April 1st.

2 In addition to the preceding clause, when there is a special need, the Company may revise the salary temporarily.

Article 84 Bonus

The Company does not give bonus in principle. However, depending on the performance of the Company in each period, there are cases that the Company may give bonus.

2 If the Company decided to give the bonus, the amount of bonus is determined according to the results of evaluation of the ability, working performance, working attitude, attendance record of the employee and the performance of the Company.

Chapter 6 Safety, Health and Disaster Compensation

Section 1 Safety and Health

Article 85 Improvement of Safety and Hygiene

The Company shall secure and improve the safety and health of employees and take necessary measures to form a comfortable workplace.

2 Employee must comply with the laws and the instructions issued by the Company concerning safety and health. Also, employee must cooperate with measures to ensure safety and to maintain/ improve health.

Article 86 Education of Safety and Health

The Company shall provide safety and health education necessary for the work the employee engaged at the beginning of the employment or when changing the work content due to rearrangement.

Article 87 Prevention of Disaster

Employee must comply with the followings in order to prevent disasters.

1. Check machinery equipment, tools, vehicles, etc. before work and stop using it if he/ she find it is malfunction or dangerous. Also report to the Company immediately and follow the instructions from the Company

2. Regarding the operation of work, if it is stipulated to use protective equipment or wear armor, the employee must use the protective equipment or to wear armor

3. Comply with the stipulated action, procedures and methods for the work operations while working

4. Do not do any action that will cause the effect of safety device to be lost such as removing it

5. Handle gas, electricity, harmful substances, explosives etc carefully according to the prescribed method

6. Do not smoke outside specified places

7. Try to keep organized all the time, do not put the goods in the passage, emergency exit and the place where firefighting equipment placed

8. Do not build a bonfire or other fires without permission and pay close attention to the handling of oil or gas

9. Do not enter any hazardous place except for parties concerned

10. If an emergency disaster occurs or there is a risk of occurrence, the employee shall immediately take countermeasures, contact the parties concerned and other persons who are in the same place and make efforts to minimize the damage

11. For securement of safety, health and hygiene, the employee shall give advice to the Company if necessary in order to improve all these

12. In addition to the preceding items, the employee shall comply with the matters determined by the Company as necessary for safety and health

Article 88 Medical Checkup

The Company conducts medical checkup regularly at the time of joining as an employee and once every year (once every six months for employee engaged in the work specified in Article 13, clause 1, item 2 of the Occupational Safety and Health Regulations).

2 In addition to the medical checkup set forth in the preceding clause, for employee engaged in hazardous operations stipulated by laws, a medical checkup will be conducted on special items. Also when necessary, temporary medical checkup may be given to all or part of the employees, or possibly immunization may be given.

3 Employee shall not refuse to take the medical checkup of the preceding clauses and immunization of the preceding clause without legitimate reasons.

Article 89 Notice of Medical Checkup Result etc.

The Company shall notify the employee regarding the result of the medical checkup.

2 Based on the results of the medical checkup, the Company shall listen to the opinion of the doctor about the measures necessary for maintaining the health of the employee and the Company may request the employee to change the workplace, change the work duties, shorten working hours, decrease the number of late night work, etc after considering the opinion of the doctor. In this case, employees must comply with the Company.

3 According to the measures set forth in the preceding clause, non-working hours shall be unpaid.

4 Employee shall endeavor to maintain his/ her own health based on the results of the medical checkup or guidance of doctors.

Article 90 Guidance Interview by Doctor

If the Company received a request from the employee who has worked over 40 hours per week and 100 hours per month excluding breaks while he/ she is deemed accumulates fatigue, the Company shall arrange guidance interview by doctor for the employee and bear the cost (excluding the employee who has received guidance interview within a month and does not need to receive guidance interview). In this case, the employee shall not refuse without legitimate reasons.

2 When conducting the guidance interview set forth in the preceding clause, the Company shall listen to the opinion of the doctor about the measures necessary for maintaining the health of the employee and the Company may request the employee to change the workplace, change the work duties, shorten working hours, decrease the number of late night work, etc after considering the opinion of the doctor. In this case, employees must comply with the Company.

3 According to the measures set forth in the preceding clause, non-working hours shall be unpaid.

Article 91 Prohibition on Work for Employee with Sickness

The Company may prohibit the employee to work based on the opinion of a doctor if the employee comes under any of the followings. In this case, employees must comply with the Company.

1. When the employee is suffering from an infectious disease that may lead to a propagation of disease

2. When the condition of the sickness such as heart, kidney, lung diseases is significantly worsened due to working

3. When the employee is suffering from a disease similar to those in the preceding clause and it is stipulated by Minister of Health, Labor and Welfare

2 The period of the employment prohibition set forth in the preceding paragraph shall be unpaid.

Article 92 Notification of Infectious Diseases

Employee shall promptly notify the Company and wait for the instructions when the employee himself/ herself or someone who is living with or someone near his/ her place, is suffering from the legal infectious diseases or similar diseases.

Section 2 Accident Compensation

Article 93 Accident Compensation

When an employee is injured or suffered from illness due to business reasons, the Company shall provide medical compensation, compensation for leave of absence and compensation for disabilities in accordance with the provisions of the Labor Standards Act. In addition, when the employee is injured due to business reasons or death due to illness, the Company shall provide compensation for the bereaved family and bear the expenses of funeral according to the provisions of the Labor Standards Act.

2 If the employee who shall receive compensation based on the preceding clause, shall receive insurance payment equivalent to the disaster compensation under the Industrial Accident Compensation Insurance Act for the same reason, the provisions of the preceding clause shall not be applied regarding to the limit of the amount.

Article 94 Compensation for Discontinuance

If the employee who receives compensation for recuperate treatment based on the provisions of Article 75 of the Labor Standards Act due to work related injury or illness, does not recover after three years after the starting of recuperate treatment, the Company shall provide 1,200 days of average salary for the compensation for discontinuation and the subsequent compensation for the employee shall be cut off.

2 The provisions of the preceding clause may be replaced if the employee receives or will receive an Injury and Disease Compensation from the Industrial Accident Compensation Insurance Act on or after the day of 3 years from the beginning of the recuperate treatment.

Article 95 Commuting Injury

If the employee is injured, suffered from a disease or died (hereinafter referred to as "calamity " in this Article) when commuting to work, he/ she shall receive insurance payment pursuant to the provisions of the Industrial Accident Compensation Insurance Act.

2 Notwithstanding the preceding clause, the employee cannot receive the insurance payment pursuant from Industrial Accident Compensation Insurance Act if he/ she are unable to obtain the accreditation of the competent directors of Labor Standards Inspection Offices under the Industrial Accident Compensation Insurance Act for such calamity.

Article 96 Industrial Injuries and Civil Damage Compensation

When employee or his/ her bereaved families receive money (hereinafter referred to as "additional compensation for injuries of employee") from the Company additionally and separately from the disaster compensation stipulated in this chapter, no other claim shall be made to the Company regarding the corresponding industrial injuries.

2 Employee or his/ her bereaved families shall submit a document to the Company stating that the employee himself/ herself or his/her bereaved families give up the right to request for civil damage compensation when receiving the additional compensation for injuries of employee. If the employee does not submit the document, he/ she shall not be given the additional compensation for injuries of employee.

3 The bereaved families specified in this provision shall be heirs under the Civil Code and the right to receive compensation under this provision shall not be transferred and used as collateral.

Article 97 Calamity due to Third-party and Compensation Adjustment Provision

When an industrial injury or an accident occurred during commuting to work is arose due to the action of a third party and compensation is made according to this chapter, the Company shall acquire the right to claim damages to the corresponding third party to the extent of the amount of the compensation. If the employee reconciles with the corresponding third party concerning the calamity, he/ she must obtain permission from the Company in advance.

2 When an industrial injury or an accident occurred during commuting to work is arose due to the action of a third party and the employee receives compensation from the third party for the same cause, the Company shall be exempt from this provision, up to the amount of such compensation.

3 The right to claim damages against the third party of the Company set forth in clause 1 or the amount of damages the employee received from the third party set forth in clause 2, included the right to claim damages against the insurance company and the insurance payment received from the insurance company.

Chapter 7 Commendation and Punitive Measures

Section 1 Commendation

Article 98 Commendation

When the employee comes under any of the following situations, the Company shall judge and award the employee.

1. When the employee follows the clause set forth in Rules of Service and being recognized as a model of others by well-behaved, excellence skills, enthusiasm on work

2. When the employee shows his/ her meritorious deed in preventing accidents, disasters or respond appropriately and minimize damage at the time of emergency

3. When there is a profitable invention, improvement, ingenuity, inventive idea in business

4. When the employee did something honoring the Company socially

5. When the employee has continued working without problems for long years

6. When it is recognized that there is a good deed or a merit to an extent equivalent to the preceding clause

Article 99 Method of Commendation

The award of the previous article shall be given in the form of a certificate of merit, a prize or money.

Section 2 Punitive Measures

Article 100 Type and Degree of Discipline

When an employee comes under any of the disciplinary reasons stipulated in the Regulations, based on the events and circumstances, the Company shall perform disciplinary penalty according to the following classifications.

1. Admonition: Request to summit a letter of apology and warn the future.

2. Deduction of Salary: Request to summit a letter of apology and decrease the salary. However, the amount of deduction for one case is half of the average salary for one day and the total amount shall be within one tenth of the total salary in one payroll period、

3. Suspension of Work: Request to summit a letter of apology and suspend the work with a fixed time limit of 30 days. The period of suspension of work is unpaid

4. Relegation: Dismissal or pull down from a position or pull down from a qualified grade, or both.

5. Recommend to Resign: Recommend to submit a letter of resignation. If the employee does not submit letter of resignation within seven working days from the date of recommendation, the employee shall be dismissed as a disciplinary penalty.

6. Disciplinary Dismissal：Immediate dismissal without a notice period. In this case, no dismissal allowance shall be given when receiving the approval of the competent directors of Labor Standards Inspection Offices.

2 If it is necessary for investigation of the employee who has acted in accordance with disciplinary penalty, he/ she shall stay at home and wait until the disciplinary penalty is decided.

Article 101 Disciplinary Reason

When an employee comes under any of the following situations, based on the circumstances, admonition, deduction of salary, suspension of work or demoting shall be made to the employee.

1. When the employee violates various regulations established by the Company while the degree is not heavy

2. When the employee violates the provision of Rules of Service set forth in the Regulations while the degree is not heavy

3. When the employee violates the provision of prohibition of sexual harassment set forth in the Regulations while the degree is not heavy

4. When the employee violates the provision of protection of personal information / confidentiality in the Regulations while the degree is not heavy

5. When the employee violates the provision of items requiring permission in the Regulations while the degree is not heavy

6. When the employee violates the provision of disaster prevention in the Regulations while the degree is not heavy

7. When the employee committed unexcused lateness, unexcused early leave, unexcused going out for private matter or unexcused absence without legitimate reasons

8. When the employee is always late, leave early without legitimate reasons or not working sincerely, such as leaving the duties recklessly

9. When the employee does not comply with the orders or instructions from the head of department without legitimate reasons

10. When the employee asks someone to record the time arriving and leaving the workplace or accept such request

11. When the employee neglects the procedures related to work or any other notification

12. When there is business failure or damage to the Company due to the negligence of the employee

13. When the employee behaves badly, disturbing the order or discipline within the Company

14. When the employee inhibits the efficiency of work and hinder the execution of work intentionally

15. When the employee refuses to follow the business conduct such as being investigated on the own belongings without any legitimate reasons

16. When there is a serious blunder due the lack of supervision and a subordinate is disciplined due to the blunder.

17. When the employee has is no enthusiasm or sincerity to the work duties and it is deemed that such negligence will hinder the work

18. When the employee violates malicious traffic regulations such as drunk driving, excessive speed exceeding etc

19. When the employee treats the property of the Company roughly and damaging the Company

20. When there are other similar acts pursuant to the preceding clauses

2 When the employee comes under any of the following situations, the employee shall be dismissed as a disciplinary penalty.

1. When the employee violates the regulations prescribed by the Company more than once or the degree of the act is serious

2. When the employee violates the provision of Rules of Service set forth in the Regulations more than once or the degree of the act is serious

3. When the employee violates the provision of prohibition of sexual harassment set forth in the Regulations more than once or the degree of the act is serious

4. When the employee violates the provision of protection of personal information / confidentiality in the Regulations more than once or the degree of the act is serious

5. When the employee violates the provision of items requiring permission in the Regulations more than once or the degree of the act is serious

6. When the employee violates the provision of disaster prevention in the Regulations more than once or the degree of the act is serious

7. Unexcused absence over 14 days without legitimate reasons and does not respond to the hasten of report to work

8. When there is a serious business failure or a serious damage to the Company due to intention, negligence or serious blunder

9. When the intention to subject to disciplinary penalty is not recognized even after being disciplined

10. When the employee who has received disciplinary penalty is deemed to commit the same acts within one year from such disciplinary penalty

11. When the employee used fake full name or important background or other illegal method for the employment

12. When there is assault, intimidation, injury, or similar act in the workplace or a place equivalent thereto

13. When the employee commits an act corresponding to a crime prescribed in the Penal Code or other laws and regulations in the workplace or a place equivalent thereto, and the fact is clear

14. When the employee tries to steal or stolen someone’s money or valuables

15. When the employee is trying to utilize the status on the work and taking advantage of the status, receiving, asking for or providing for money or other valuable improperly and unjustly

16. When the facility, machinery and equipment, other goods of the Company are damaged or lost, or a serious accident occurs due to intention or serious negligence of an employee

17. When the employee used the money of the Company for personal use or steal the money of the Company

18. When the employee violates malicious traffic regulations such as drunk driving, excessive speed exceeding etc causing an accidence which harm or cause damage to other person

19. When the employee behaves badly, disturbing the order or discipline within the Company remarkably

20. When the employee neglects or forge the procedures related to work or any other notification intentionally

21. When the employee leaks internal confidential information, business policy, customer information, personal information of employee and matters which are disadvantageous to the Company that he/ she learned from his/ her duties to others

22. When the employee who has registered in the Company works for a company or business office or other external organization or doing his/ her own business without permission or order of the Company

23. When there are other improprieties pursuant to the preceding items

3 Even if the employee comes under the items of the preceding clause, depending on circumstances, the penalty may be reduced or recommend to resign.

Article 102 Instigation and Assistance

If the Company found that an employee instigates and assists other employees and caused them to perform the acts within the disciplinary matter prescribed in the Regulations, the Company shall give penalty to the actor.

Article 103 Aggravation

When an employee who has received disciplinary penalty preforms an act that further subjects to disciplinary penalty within one year thereafter, or when he/ she has performed two or more disciplinary matter at the same time, the Company shall aggravate the disciplinary penalty

Article 104 Damage Compensation

In the event that an employee gives damages to the Company intentionally or by negligence, the Company may request compensation from the employee in whole or in part. Provided, however, that the employee shall not be exempt for the disciplinary penalty under this rule by compensation.

2 Even after resignation/ retirement, the same shall be applied to damages arising from the acts of said employee whose damage is during his/ her service.

3 In cases where compensation is not made from the employee, the Company may request the compensation from the guarantor.

Article 105 Approval Revocation of Consensual Resignation

For the employee who is already approved for consensual resignation, if the Company found out he/ she comes under any disciplinary matters before resignation, the Company shall revoke the approval and give disciplinary penalty to the employee.

Article 106 Squealing

If the Company learns that the employee has violated the provisions of the Criminal Code or other laws and regulations, the Company shall squeal on the employee to relevant agencies.

Chapter 8 Education and Training

Article 107 Education and Training

The Company shall provide necessary education to employees in order to raise their knowledge of work and to improve their skills.

2 The employee cannot refuse without legitimate reasons when he/ she is ordered to attend the educational training conducted by the Company.

3 The employee must have an obligation to receive educational training conducted by the Company and also work on his/ her own self-developments, advance self-studies and self-vocational ability development and improvement actively.

Supplementary Provisions

The contents of the Regulations shall be reviewed every three years. Regarding revision or abolishment, the representative director or the person receiving the instruction shall make a draft and listens to the opinions from the representative of majority of the employees.

The effective date of the Regulations is from April 1, 2016

The following regulations are attached to this Regulations.

1. Regulations concerning childcare and nursing care leave