professional investors system

○ The company has set the deadline for the financial instruments and exchange law’s professional investors system as stated below:

○ According to the financial instruments and exchange law started on September 30 2007, our customers are classified as either “professional investor” or “non-professional investor client (hereafter general investor),” depending on the “type of contract” (cabinet office ordinance article 53 regarding financial instruments business, etc.).

○ In the professional investors system, if the client is a professional investor, the company, as a financial instruments business operator, will be exempted from certain behavior regulations such as “document delivery obligations before making a contract.”

○ Based on the financial instruments and exchange law, when a “general investor” desires to become a “professional investor” or vice versa, the company will require them to submit a proposal and go through the company’s procedure for approval. After successfully completing the procedure, their switch may be approved by the company in a case by case manner depending on the “type of contract” (cabinet office ordinance article 53 regarding financial instruments business, etc.). Now, please note that the company may still deny certain cases where a “general investor” opts to become a “professional investor,” after conducting a set of investigations.

○ Generally, the term lasts one year for a “general investor” who switched to become a “professional investor.” However, the company sets the end date for the term on the next August 31st after beginning the term (even if the company is closed on the said date). For “general investors” who opted to become “professional investors,” they may also feel free to always revert to being a general investor, no matter how much is left in their term as a professional investor.

○ “General investors” who opted to become “professional investors” will return to being “general investors” after the end date of their term. “General investors” who would like to continue being “professional investors” must therefore re-submit a proposal to the company. The company will begin accepting such proposals (which are being re-submitted) one month before the set end date for the term. Note that this article is not written with the purpose to invite “general investors” who have become “professional investors” to continue being “professional investors.”