Settlement Agreement In regards to the complaint H.20 FU No.14 at the Osaka Prefectural Labour Relations Commission (hereinafter referred to as ‘this complaint’, 1), General Union (hereinafter referred to as ‘the Union’) and the respondents, G.communication (hereinafter referred to as ‘Communication’) and G.education (hereinafter referred to as ‘Education’) have agreed as below, drawn up this agreement document, and promise that both parties will execute it in good faith. 1. Education and Communication express their regret to all those who were forced to leave work or return to their countries and for their failure as of yet to “employ all NOVA teachers and staff who wished to continue their employment” after taking over the operation of K.K. NOVA (hereinafter referred to as ‘NOVA’). 2. In order to cope with the incipient shortage of teachers at NOVA schools in some areas, the Union will co-operate as necessary in finding teachers. 3. Education will invite ex-NOVA teachers who are not currently working at NOVA schools to take up employment at Education. In particular, ex-NOVA teachers who are willing to move to those areas where there is a shortage of teachers shall be accorded highest priority in rehiring. Teachers hired after an interview shall be assigned to the relevant areas, but even in areas where there is no teacher shortage, those who wish to be employed will be registered for future job openings. In principle, at the time of hiring they will be employed on conditions that will not fall short of those enjoyed previously. The Union shall co-operate in the recruitment and employment. 4. In regard to those teachers who do not wish to be re-employed, Education will rectify the wrong impression given by a past press release stating that they ‘did not renew teachers with bad working performance’ by issuing letters of recommendation upon request from teachers and co-operate as far as possible in finding them new jobs. Also, in cases where it is requested by the individual, Education will issue separation papers (‘Rishokuhyo’) stating ‘for reason of the company’s convenience.’ 5. Education will prepare new employment contracts for those who are to be re-employed as stated in item 3 above. Education shall decide which type of contract will be issued according to the place of work and working conditions on the basis of the situation of both the company and the teacher concerned. At this time contracts with the possibility of Social Insurance (‘Shakai Hoken’) enrollment will also be prepared. The contract period shall be one year. Furthermore, the contracts of teachers currently working will, in principle, be renewed unless there are special circumstances of poor work performance, etc. At this time, a new employment contract with Education will be concluded and the contract term will be one year. 6. Education will continue its efforts to open new schools in metropolitan areas such as in the Kansai and Tokyo areas and to expand its courses in English and other languages in order to increase opportunities for the students to take lessons as well as opportunities for employment. 7. Education and Communication, which are essentially the basis of operation for the transferred NOVA operation, will hold collective bargaining with the Union in good faith and strive to comply with the Labour Standards Law, Trade Union Law and other relevant laws and ordinances. 8. The Union will withdraw this complaint. 10 June 2008 Complainant: General Union YAMAHARA Katsuji, Chair Respondent: G.communication Co., Ltd. INAYOSHI Masaki, Representative Director Proxy : ISHII Yasushi Respondent: G.education Co., Ltd. ONO Hisashi, Representative Director Proxy: SAKAMOTO Daiki We hereby confirm the above. Osaka Prefectural Labour Relations Commission OHNO Jun, Judging Commissioner IWASA Toshiaki, Consulting Commissioner YAMAMOTO Fumihiko, Consulting Commissioner (NOTE: This is an unofficial translation by the General Union)