Consideration When Establishing Provisions for Exercise of Voting Rights byInstruction
Established on March 13, 2003
Revised on September 21, 2007
Revised on September 12, 2008
Revised on March 18, 2010

An investment trust management company (meaning the investment trust management company as defined inArticle 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951;
hereinafter referred to as the “Investment Trust Act”); hereinafter the same shall apply) shall bear the following
points in mind when establishing provisions for the exercise of voting rights by instruction in accordance withthe provisions in Article 2, Paragraph 2 of the Rules on Full Member’s Business Operations, etc.

1. Consideration in Establishment(1) Purpose of establishment of provisions and basic stance on exercise of voting rights by instruction
In consideration of the fact that the exercise of voting rights by instruction is only for the benefit ofbeneficiaries, the purpose for establishing the provisions and the basic concept for exercising voting rights
shall be clearly stated.
(2) Development of decision-making process and system for exercising voting rights by instruction, etc.
When exercising voting rights by instruction, the decision-making process and the authority andresponsibility for the decision-making shall be clearly described, and the system for such decision-making
shall be established.
(3) Screening standards
In order to contribute to the effective exercise of voting rights by instruction, an investment trust
management company may establish screening standards. However, when such standards are established,
the contents thereof shall be specified.
(4) Storage of supporting data
In accordance with the provisions such as matters specified in (1) through (3) above, an investment trust
management company shall determine whether any individual proposal is an issue, and if any proposal
represents an issue, the investment trust management company shall store the notice of the General
Meeting of Shareholders relating to such proposal, and records on which the reason for the issue and thereason for the decision-making, etc. are based for a period of five years after the end of the accounting
period to which the day of giving the instruction belongs. In addition, the retention period shall bespecified in such provisions. When exercising voting rights by instruction, it should be noted that
instructions shall be prepared and preserved in accordance with Article 26 of the Ordinance for
Enforcement of the Act on Investment Trusts and Investment Corporations and Appendix 1.

2. Other Considerations(1) Disclosure－1－(i) An investment trust management company shall specifically disclose items specified (1) to (3) above as
principles for exercising voting rights.
(ii) An investment trust management company shall set forth, in its internal rules, items to be disclosedand other necessary matters with regard to the result of the exercise of voting rights for domestic shares,and in principle, shall compile the results of the exercise of voting rights at the General Meeting ofShareholders held in May and June and disclose them by the end of August.
(2) Exercise of voting rights pertaining to foreign shares by Instruction
It should be noted that in accordance with the provisions of the Investment Trust Act and the Business
Regulations and Operational Rules, instructions shall be given based on the circumstances of the country
concerned.

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[Examples of Disclosure Items for Result of Exercise of Voting Rights by Instruction]
Proposed Agenda

Compiled Items

1. Company Proposals(i) Number of proposals(i) Appropriation of surplus(ii) Number of approval votes(ii) Election of Directors(iii) Number of opposition votes(iii) Election of Auditors(iv) Partial amendment of the Articles ofIncorporation(v) Payment of retirement allowance(vi) Revision of remuneration amount forofficers(vii) Issuance of stock acquisition rights(viii) Appointment of accounting auditor(ix) Reconstruction(x) Other Company Proposals
2. Shareholder Proposals

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2010.

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