“Declaration of Partnership Building“
We declare that we will focus on the following items in order to build new partnerships with
our supply chain partners and value-creating businesses by promoting cooperation, coexistence and co-prosperity.
１． Coexistence and co-prosperity throughout the supply chain and new collaboration
beyond scale, affiliations, etc.
We will work to increase the added value of the entire supply chain by encouraging ourdirect business partners to work with their business partners (from "Tier N" to "Tier
N+1"), and we will aim to build a mutually beneficial relationship with our business
partners through cooperation that transcends existing business relationships andcorporate scale. In doing so, from the perspective of business continuity in the event ofdisasters and work style reform, we will also support our business partners byintroducing teleworking and providing advice on BCP (Business Continuity Plan)
formulation.
We will further strengthen cooperation with our business partners to build asustainable supply chain and create new businesses.
２． Compliance with "Promotion Standards
We will comply with desirable business practices between parent companies andsubcontractors (the "Promotion Standards" based on the Law for the Promotion of
Small and Medium-Sized Subcontractors) and actively work to correct businesspractices and commercial practices that hinder the establishment of partnerships withbusiness partners.
① Price determination method
We will not make unreasonable requests for cost reductions. In determining thetransaction consideration, if a subcontractor requests consultation, we will respond to
the request and hold sufficient discussions with the subcontractor to include appropriate
benefits for the subcontractor, such as taking into account the impact of increased laborcosts. We will clearly state and deliver the terms and conditions of the contract,including the determination of the transaction consideration, in writing, etc., to theparent company.
② Payment Terms for Bills, etc.
We will pay subcontract proceeds in cash whenever possible. If payment is made in
the form of a bill, the subcontractor shall not be responsible for any discount charges,etc., and efforts shall be made to keep the payment site within 60 days.

③Intellectual property and know-how
We do not seek disclosure of know-how or free transfer of intellectual property
rights by taking advantage of our position in business dealings.

④ Wrinkles caused by reforms in work styles, etc.
We will not place orders to subcontractors with short delivery times or change
specifications at short notice without bearing appropriate costs, so that our suppliers
can also respond to changes in work styles. In the event of a disaster, etc., we will not
impose a one-sided burden on subcontractors in business transactions, and we will giveas much consideration as possible to the continuation of business relationships upon theresumption of business, etc.
３． Others (optional)
We will contribute to the realization of a sustainable society by establishing a CSR
procurement policy and working together with our suppliers.
October 27, 2023
Osamu Nakano, President and Representative Director
ADMATECHS COMPANY LIMITED