Document:

ubic_Ex4_30

		
			Exhibit 4.30
		

		
			

		 

		

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Execution Version
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			-- The Borrower --
		

		
			UBIC, Inc.
		

		
			 
		

		
			 
		

		
			-- The Loaner --
		

		
			Sumitomo Mitsui Banking Corporation
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Term Loan Agreement
		

		
			 
		

		
			
		

		
			

		 

		

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			Table of Contents
		

		
			Items
		

		
			 
		

		
			Definition of Terms35
		

		
			Definition of Terms35 
		

		
			Provisions with respect to the Loan35 
		

		
			Principal terms of the Loan35 
		

		
			Conditions precedent to the Loan Obligations35 
		

		
			Provisions with respect to the provision of the Loan35 
		

		
			Exemption of Loaner from its obligations35 
		

		
			Increased Expenses35 
		

		
			Representations and Warranties by the Borrower35 
		

		
			Representations and warranties by the Borrower35 
		

		
			Obligations of the Borrower35 
		

		
			Obligations of the Borrower35 
		

		
			Obligations of the Borrower (Considerations to Society and the Environment)35 
		

		
			Incidents Causing Acceleration35 
		

		
			Incidents Causing Acceleration35 
		

		
			Termination of the Loan Obligations35 
		

		
			Termination of the Loan Obligations35 
		

		
			Provisions Governing the Repayment of Debts35 
		

		
			Performance of obligations by the Borrower35 
		

		
			 Set-off35 
		

		
			Articles for the Repayment before Due35 
		

		
			 Articles for the voluntary repayment before due35 
		

		
			Articles for the mandatory repayment before due35 
		

		
			Other Provisions35 
		

		
			Collections, etc., from third parties35 
		

		
			Assignment35 
		

		
			Assignment after the provision of the Loan35 
		

		
			General provisions35 
		

		
			
		

		
			      Annex 1 Contact Address of the Parties and Methods of Notification
		

		
			     Annex 2 Table of Repayment Schedule of the Principal, Table of Interest Payment Schedule
		

		
			
		

		
			

		 

		

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This Term Loan Agreement (the "Agreement") is made and entered into on November 30, 2015, by and between UBIC, Inc. (the "Borrower"), a Japanese corporation having its place of business at Meisan Takahama Building, 2-12-23, Konan, Minato-ku, Tokyo, Japan, and Sumitomo Mitsui Banking Corporation (the "Loaner"), a Japanese corporation having its place of business at 1-1-2, Marunouchi, Chiyoda-ku, Tokyo, Japan. The Borrower and Loaner may each be referred to as the "Party" and collectively the "Parties". The Parties agree as follows:
		

		
			 
		

		
			Chapter OneDefinition of Terms
		

		
			 
		

		
			Article 1-1 Definition of Terms
		

		
			 
		

		
			Except as otherwise evident in light of the context, the following terms in this agreement shall have the meaning as set forth below. Where certain article of law or government regulation is quoted herein, the quotation shall be deemed to include such article as changed or amended.
		

		
			1. "Seller" means, collectively, ANDATHA INTERNATIONAL, INC., EVOLVE DISCOVERY PA, LLC, EVOLVE DISCOVERY LA, LLC, EVOLVE DISCOVERY PORTLAND, LLC, and EVOLVE DISCOVERY SEATTLE, LLC.
		

		
			2. "Business Day" means any day except for the days designated as bank holidays in Japan, New York, or London.
		

		
			3. "Loan Obligations" mean the Loaner's obligations to provide the Loan to the Borrower on the Loan Drawdown Date, in accordance with the terms and conditions set forth herein.
		

		
			4. "Loan Drawdown Date" means the date as stipulated in Article 2-1(1) on which the Loan is provided.
		

		
			5. "Loan Disabling Incident" means any the following incidents that cause the inability of the Loaner to raise funds, thus making it incapable of providing the Loan: i) outbreak of a natural disaster, war, or terrorist attack, ii) stoppage, disconnection, or disruption of an electric power supply, telecommunication, or various clearance systems, each of which makes it impossible to lend or borrow United States Dollars, iii) any incidents that make it impossible for banks to engage in loan financing transactions for the Loan currencies in general in the relevant money markets, such as inter-bank market, and iv) any other incidents not attributable to Loaner. Judgments as to the occurrence and cessation thereof shall be in the reasonable judgment of the Loaner. 
		

		
			6. "Considerations to Society and the Environment" means considerations not only to the natural environment but also to human society, such as to involuntary resettlement and respecting human rights of indigenous people.
		

		
			7. "Taxes and Government Duties, etc., " means all taxes and duties that may be imposed in Japan, including income tax, corporation tax, and other taxes.
		

		
			8. "Payment Due Time" means 12:00 noon of the day on which any payment becomes due and payable pursuant to this Agreement.
		

		
			

		 

		

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9. "Settlement Money" means, where the repayment or set-off of the principal of the Loan is done on any day other than the Interest Payment Date,  the money for settling the difference in amount arising from the Reinvestment Interest Rate being lower than the Applicable Interest rate. This Settlement Money is calculated through multiplying said amount of the principal of the Loan repaid or set off as above by the difference in percentage between the Reinvestment Interest Rate and the Applicable Interest rate, and by the actual number of days in the Remaining Period. "Remaining Period" means the period from (and including) the date on which said repayment or set-off is done to (and including) the immediately succeeding Interest Payment Date. "Reinvestment Interest Rate" is the interest rate as reasonably determined by the Loaner assuming that the amount of the principal of the Loan repaid or set off were reinvested to the relevant inter-bank market, etc., for the Remaining Period. In the calculation of the Settlement Money, the interest rate will be pro-rated by the number of days elapsed (including the first day of the period but excluding the last), the division will be done finally, and the amount less than one (1) yen or 0.01 U.S. dollars will be rounded down.
		

		
			10. "Increased Expenses" means the amount of expenses as reasonably calculated by the Loaner and which represents the significant increase in the expenses incurred by the Loaner  (excluding an increase caused by the change in the  tax rate applicable to the taxable income of the Loaner) for providing or maintaining the Loan, maintaining the fulfillment of the Loan Obligations, or securing its rights caused by i) enactment, amendment, or change in the interpretation or operation of the Laws, etc., ii) an establishment of, or addition to any reserve fund, or iii) change, etc., in the accounting regulations or its operation.
		

		
			11. "Subject Company" means EvD, Inc.
		

		
			12. "Shares of the Subject Company" means the shares issued by the Subject Company.
		

		
			13. "Subject Business" means the business operated by the Subject Company with respect to the collection and analysis of electronic data in connection with such matters as a preservation of evidence in legal disputes and litigation.
		

		
			14 "Tranche" means, collectively, the Tranche A and Tranche B; or, separately, Tranche A or Tranche B
		

		
			15 "Tranche A" means, collectively, the Tranche A-1 and Tranche A-2; or, separately, Tranche A-1 or Tranche A-2.
		

		
			16 "Loan Balance of Tranche A" means the total amount of principals of Unpaid Loan Dues in connection with Tranche A
		

		
			17 "Tranche B" means, collectively, the Tranche B-1 and Tranche B-2; or, separately, Tranche B-1 or Tranche B-2.
		

		
			18 "Loan Balance of Tranche B" means the total amount of principals of Unpaid Loan Dues in connection with Tranche B
		

		
			19 "Japan Business Day" means any day except for the days designated as bank holidays in Japan.
		

		
			

		 

		

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20. "Antisocial Acts" means any acts of i) making any demands with violent behavior, ii) making unreasonable demands beyond one's legal responsibility, iii) using intimidating behaviors or violence in connection with a business, iv) impairing the credibility of, or interfering with the business of the Loaner through disseminating groundless rumors or using fraudulent means or force, or v) doing anything similar to any of the items i) through iv) above.
		

		
			21 "Antisocial Forces" mean any of the following person or entity: i) an organized crime group (of which members (including the members of the group belonging to that organized crime group) are likely to encourage doing, collectively or habitually, violent and illegal acts, etc.; the same shall apply hereafter; ii) a member of a crime syndicate, including a person who was a member of an organized crime group at any time during the past five (5) years; iii) a semi-member of an organized crime group, which means either any person or entity who is not a member of a crime group but is associated with any crime group and is likely to do violent and illegal acts backed by the powers of the crime group, or ii) any person or entity who cooperates with or is involved in the maintenance or operation of a crime group (including the members thereof) through such acts as providing funds, weapons, etc.; the same shall apply hereafter; iv) an entity associated with an organized crime group, which means an entity of which management has a substantial involvement of a member of an organized crime group, an entity managed by semi-members or former members of an organized crime group and which proactively cooperates with or involved in the maintenance or operation of an organized crime group through such acts as providing funds, or an entity which proactively utilizes an organized crime group in its operation of business, etc., and cooperates with or involved in the maintenance or operation of a crime syndicate; v) "Sokaiya" or the like, who is a corporate extortionist or a person who is likely to engage in violent and illegal activities seeking to obtain unlawful benefits, and who is a threat to the safety of civil life; vi) a group which is likely to engage in violent and criminal activities under the pretext or false pretense of conducting social or political campaigns seeking to obtain unlawful benefits, and who is a threat to the safety of civil life, vii) special intellectual violence group, etc., which mean crime groups or persons, other than the groups categorized under items i) through vi), which utilize the power of an organized crime group with which they are associated, or have financial relationship with an organized crime group, and which act as the core of the structural illegal activities, or viii) any person or entity which is similar to items i) through vii).
		

		
			22.  “Person Associated with Antisocial Forces” means a person or entity which has a relationship in which; i) the Antisocial Forces are considered to have the control over its management; ii) the Antisocial Forces are, in effect, involved in its management; iii) it is considered to wrongfully utilize the Antisocial Forces in such a way as to obtain illegal benefits for itself or third parties or to cause damages to third parties; iv) it is associated with Antisocial Forces by providing funds or convenience; or v) its officer or any person who is involved in its management has such a relationship with Antisocial Forces as to be socially criticized.
		

		
			

		 

		

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23. “Bridge Loan Agreement” means the application form for a loan on bill executed by the Loaner and Borrower as of July 27, 2015, pursuant to which a loan was provided to the Borrower for the purpose of providing funds for the acquisition of shares in connection with the Acquisition and the payment of expenses incidental thereto.
		

		
			24. “Repayment Date” means the specified date on which the principal, interest, and other money relating to the Loan shall become due and payable pursuant to this Agreement.
		

		
			25. “Laws, etc.”  mean any treaties, laws, ordinances of regional government, cabinet ordinances, ministerial ordinances, regulations, public notices, court rulings, court decisions, arbitration judgments, government notices, and policies of relevant government authorities, each of which is applicable to the Financing Agreements, any transactions pursuant thereto, or the parties to the Financing Agreements.
		

		
			26. “Loan” means the loan of money provided by the Loaner pursuant to this Agreement.
		

		
			27. “Loan Proceeds” mean the money provided by the Loaner as the Loan to the Borrower with respect to each Tranche. The amount of Loan Proceeds shall be referred to as the “Amount of Loan Proceeds.”
		

		
			28. “Unpaid Loan Dues” mean all the money that the Borrower has the obligation to pay to the Loaner pursuant to this Agreement and with respect to each Tranche, including the principal, interest, delay charges, Settlement Money in relation to the Loan. The amount of Unpaid Loan Dues shall be referred to as the “Amount of Unpaid Loan Dues.”
		

		
			29. “Security Agreement” means the security interests agreement with respect to the Shares of the Subject Company to be entered into among the Loaner, the Subject Company, and the Borrower.
		

		
			30. "The Acquisition" means the acquisition by the Borrower of one hundred percent (100%) of the total number of shares issued by the Subject Company in accordance with the Agreements Relevant to the Acquisition.
		

		
			31 "Agreements Relevant to the Acquisition" mean the Acquisition Agreement, and the Transaction Documents (including its amendments and changes) defined in the Acquisition Agreement.
		

		
			32 "Acquisition Agreement" means the Stock Purchase Agreement dated July 31, 2015, (including its subsequent amendments and changes) entered into among the Seller, Borrower, and the Subject Company.
		

		
			33. "Promissory Note" shall have the same meaning as the definition of the "Promissory Note" in the Acquisition Agreement.
		

		
			34. "Financing Agreements" mean, collectively, this Agreement and the Security Agreement.
		

		
			35. "London Business Day" means any day except for the days designated as bank holidays in London.
		

		
			36. "USD" or "U.S. Dollars" mean the legal tender of the United States of America.
		

		
			 
		

		
			

		 

		

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Chapter TwoProvisions with respect to the Loan
		

		
			Article 2-1 Principal terms of the Loan
		

		
			 
		

		
			(1) Loan Obligations
		

		
			The Loaner shall have the Loan Obligations as set forth below to the Borrower in accordance with the provisions herein.
		

			
					
						 

					
					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

				
	
					
						The Amount of Loan Proceeds

					
					
						The Amount of Loan Proceeds for each of the Tranches shall be as follows:

					
						 

					
						Tranche A-1: 9,120,000 U.S. dollars

					
						 

					
						Tranche A-2:    755,000,000 Japanese yen

					
						 

					
						Tranche B-1: 1,100,000 U.S. dollars

					
						 

					
						Tranche A-2:      98,000,000 Japanese yen

					
						 

				
	
					
						Loan Drawdown Date

					
					
						Tranche A: December 24, 2015

					
						 

					
						Tranche B: August 30, 2016

					
						 

				
	
					
						The number of drawdowns

					
					
						The Loaner shall have the obligation to the Borrower of providing the Loan only once per each of the Tranches in accordance with the terms as set forth herein.

				

		
			 
		

		
			(2) The Loan
		

		
			The Loaner shall provide the Loan of which the particulars are set forth below to the Borrower in accordance with the provisions herein.
		

		

		 

		

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						Application of the proceeds of the Loan

					
					
						Tranche A: If the Loan is provided on the Loan Drawdown Date, the Borrower shall apply the proceeds equivalent to the entire amount of the Tranche A to the repayment of the loan provided to the Loaner pursuant to the Bridge Loan Agreement and the payment of the expenses related to the Acquisition.  

					
						 

					
						Tranche B: If the Loan is provided on the Loan Drawdown Date, the Borrower shall apply the proceeds to the payment against the Promissory Note pursuant to the Acquisition Agreement, or repayment of the loan provided by the Loaner or any other financial institution to the Borrower for the purpose of said payment.

				
	
					
						Loan Currencies

					
					
						Tranche A-1: U.S. dollars

					
						 

					
						Tranche A-2: Japanese yen

					
						 

					
						Tranche B-1: U.S. dollars

					
						 

					
						Tranche B-2: Japanese yen

					
						 

				
	
					
						Maturity Date

					
					
						The date designated as the “Maturity Date” in the Repayment Schedule of the Principal table in Annex 2, as determined for each of the Tranches.

				
	
					
						Repayment dates of the principal

					
					
						The date designated as the “Repayment Date of the Principal” in the Repayment Schedule of the Principal table in Annex 2, as determined for each of the Tranches.

				
	
					
						The method of the repayment of the principal

					
					
						The Borrower shall, on each of the repayment date of the principal, pay the amount of principal due for repayment on such repayment date (as stipulated in Annex 2).

				
	
					
						Repayment before Due

					
					
						Separately provided for in this Agreement.

				
	
					
						Interest Period

					
					
						The period used for the calculation of the interest due on the interest payment dates. For each Tranche, the period for the calculation of the amount of interest due on the first interest payment date shall be from (and including) the Loan Drawdown Date to (and including) the first interest payment date. This period shall be referred to as the “First Interest Period” and this way of reference shall apply to the second period and thereafter. The second interest period and thereafter shall be from (and including) the last day of the immediately preceding interest period to (and including) the next interest payment date.

				

		 

		

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						Applicable Interest Rate

					
					
						Tranche A-1: the rate obtained by adding the Spread to the Base Interest Rate

					
						 

					
						Tranche A-2: 0.46% per annum

					
						 

					
						Tranche B-1: the rate obtained by adding the Spread to the Base Interest Rate

					
						 

					
						Tranche B-2: the rate obtained by adding the Spread to the Base Interest Rate

				
	
					
						Base Interest Rate

					
					
						This Base Interest Rate for each Interest Period  shall be the six-month interbank offered rate as stipulated below, published by ICE Benchmark Administration Limited (or its successor) for U.S. dollars LIBOR or by TIBOR operating body of Japanese Bankers Association (or its successor) for Japanese yen TIBOR, each at 11:00 a.m. or any nearest possible time after 11:00 a.m. of the day which is two (2) London Business Days (or two (2) Japan Business Days, in case of Tranche B-2)  before the Interest Payment Date (or the Loan Drawdown Date, in case of the first Interest Period) (such day shall be referred to as the “Interest Decision Day”) applicable to the Interest Period immediately preceding  the Interest Period to which this Base Interest Rate is applied. In the event that the aforementioned interest rate is not published for a certain reason, the Base Interest Rate shall be the interest rate (expressed as per annum) representing, in the reasonable judgment of the Loaner, the offered rate for the applicable Loan Currency for the period that corresponds to the Interest Period, in the relevant inter-bank market on the applicable Interest Decision Day. For the avoidance of doubt, the above provision shall apply to the first Interest Period of Tranche B as well.

					
						 

					
						Tranche A-1: U.S. dollars LIBOR

					
						 

					
						Tranche B-1: U.S. dollars LIBOR

					
						 

					
						Tranche B-2: Japanese yen TIBOR

					
						 

				
	
					
						Spread

					
					
						Tranche A-1: 0.3125 % per annum

					
						 

					
						Tranche B-1: 0.3125 % per annum

					
						 

					
						Tranche B-2: 0.30 % per annum

				

		 

		

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						Interest Payment Date

					
					
						The date designated as the “Interest Payment Date” in the Interest Payment Schedule of the Loan in Annex 2, as determined for each of the Tranches.

				
	
					
						Method of Interest Payment

					
					
						The interest amount for each Interest Period shall be calculated through multiplying the amount of the principal in the Unpaid Loan Dues in the respective Interest Period of the Loaner by the Applicable Interest Rate and pro-rated based on the actual number of days during the Interest Period (including the first day of the period but excluding the last), with the division done finally, and the amount less than one (1) yen or 0.01 U.S. dollar rounded down. The payment of the aforementioned interest shall be paid in arrear after the end of the respective Interest Period and on the Interest Payment Date for the Interest Period.

				
	
					
						Treatment of holidays

					
					
						In the event that the repayment due date for the principal and the interest falls on any day other than the Business Day, the repayment day in this case shall be the next Business Day. If this Business Day is in the succeeding month, then the repayment due date shall be the immediately preceding Business Day.

				

		
			 
		

		
			(3) Others
		

			
					
						Base Number of Days

					
					
						Unless otherwise provided for in this Agreement, in pro-rating on the daily basis for the purpose of this Agreement, the number of days in one (1) year shall be regarded as three hundred and sixty (360) days for transactions in U.S. dollars and three hundred and sixty-five (365) days for transactions in Japanese yen.

				
	
					
						Settlement Account of Borrower

					
					
						Settlement Account for Japanese yen

					
					
						Borrower’s savings account for the settlement of funds in Japanese yen with Gotanda Branch of Sumitomo Mitsui Banking Corporation (account number 7972989, the account holder: Kabushiki Kaisha UBIC

				
	
					
						Settlement Account for U.S. dollars

					
					
						Borrower’s foreign currency savings account for the settlement of funds in U.S. dollars with Gotanda Branch of Sumitomo Mitsui Banking Corporation (account number 0209010, the account holder: Kabushiki Kaisha UBIC

				

		 

		

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						Applicable Foreign Exchange Rate

					
					
						Unless otherwise provided for in this Agreement, any conversion of foreign currencies into Japanese yen (or conversion of Japanese yen to foreign currencies) shall use an exchange rate of 124.08 Japanese yen to one U.S. dollar at a foreign exchange market. Unless otherwise provided for in this Agreement, any aggregate calculation using U.S. dollars and Japanese yen shall use this Applicable Foreign Exchange Rate and be converted into Japanese yen.

				

		
			 
		

		
			Article 2-2Conditions precedent to the Loan Obligations    
		

		
			 (1) The Loan Obligations of the Loaner with respect to Tranche A shall be subject to the following conditions precedent:
		

		
			(i) Loan Obligations of the Loaner is not relieved pursuant to the provisions on Article 2-4.
		

		
			(ii) The Borrower submits to the Loaner all of the documents as stipulated below, no later than three (3) Business Days prior to the Loan Drawdown Date:  
		

		
			 (a) The certificate of a seal impression less than three (3) months old as at the date of receipt and valid as of the Loan Drawdown Date, for the representative of Borrower whose name is stated and whose seal of approval is given in this Agreement as a signatory;
		

		
			(b) The certified copy of commercial registration less than three (3) months old as at the date of receipt and valid as of the Loan Drawdown Date;
		

		
			(c) The certified copy of the articles of incorporation;
		

		
			(d) Registration of the impression of the seal of approval or signature in a format designated by Loaner; and
		

		
			(e) A copy of the Acquisition Agreement;
		

		
			 provided, however, any document mentioned above that has already been submitted pursuant to Article 4-1 (1) and has no further changes after the submission need not be submitted again.    
		

		
			 
		

		
			(iii) All of the Settlement Accounts of the Borrower are established and available.
		

		
			(iv) No Incidents Causing All Debts Become Due And Payable have occurred or been continuing.
		

		
			(v) All of the Borrower's representations and warranties are true and correct.
		

		
			(vi) The Acquisition pursuant to the Agreements Relevant to the Acquisition has been completed and is not the subject of cancellation or invalidity.
		

		
			(vii) The Agreements Relevant to the Acquisition has neither been terminated (except for the termination by virtue of the completion of the Acquisition) without the approval of the Loaner (which shall not be unreasonably withheld or delayed) nor been materially changed or amended.
		

		
			(viii) No incidents have occurred in relation to the Bridge Loan Agreement whereby all debts of the Borrower thereunder would immediately become due and payable pursuant thereto.
		

		
			

		 

		

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(ix) It is conclusive that all debts of the Borrower to the Loaner pursuant to the Bridge Loan Agreement will be repaid promptly after the Loan Drawdown Date of Tranche A.
		

		
			(x) The Security Agreement is executed as of the Loan Drawdown Date of Tranche A (New York time zone shall also apply for the purpose of this item) and it is conclusive that valid and first-priority security interests will be created and perfected over the Shares of the Subject Company pursuant to the Security Agreement, with the Loaner being the security holder.

		

		
			(2) The Loan Obligations of the Loaner with respect to Tranche B shall be subject to the following conditions precedent:
		

		
			  (i) Loan Obligations of the Loaner is not relieved pursuant to the provision of Article 2-4.
		

		
			  (ii) The Borrower submits all of the documents as stipulated below to the Loaner, no later than three (3) Business Days prior to the Loan Drawdown Date of the Tranche B:  
		

		
			 (a) The certificate of a seal impression less than three (3) months old as at the date of receipt and valid as of the Loan Drawdown Date, for the representative of Borrower whose name is stated and whose seal of approval is given in this Agreement as a signatory;
		

		
			(b) The certified copy of commercial registration less than three (3) months old as at the date of receipt and valid as of the Loan Drawdown Date;
		

		
			(c) The certified copy of the articles of incorporation;
		

		
			(d) Registration of the impression of the seal of approval or signature in a format designated by Loaner;
		

		
			(e) A copy of the Acquisition Agreement; and
		

		
			(f) A document evidencing the completion of the Borrower's payment against the Promissory Note in accordance with the Acquisition Agreement;
		

		
			 provided, however, any document mentioned above that has already been submitted pursuant to Article 2-2 (1) or Article 4-1 (1) and has no further changes after the submission need not be submitted again.    
		

		
			(iii) All of the Settlement Accounts of the Borrower are maintained.
		

		
			(iv) No Incidents Causing All Debts Become Due And Payable have occurred or been continuing.
		

		
			(v) All of the Borrower's representations and warranties are true and correct.
		

		
			(vi) The Acquisition pursuant to the Agreements Relevant to the Acquisition has been completed and is not the subject of cancellation or invalidity.
		

		
			(vii) The Agreements Relevant to the Acquisition has neither been terminated (except for the termination by virtue of the completion of the Acquisition) without the approval of the Loaner (which shall not be unreasonably withheld or delayed) nor been materially changed or amended.
		

		
			(viii) The Borrower’s payment against the Promissory Note has been completed in accordance with the Acquisition Agreement.
		

		
			 
		

		
			

		 

		

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Article 2-3Provisions with respect to the provision of the Loan
		

		
			 
		

		
			(1) The Loaner shall make a remittance to the Settlement Account of Borrower for each Loan Currency if the Loaner does not provide the notice pursuant to Article 2-3(2) and all of the conditions precedent to the Loan Obligations are satisfied in accordance with Article 2-2. The Loan shall be deemed to have been provided when the remittance is made to the Settlement Account of Borrower for each Loan Currency. The Loaner shall make its best efforts to complete the procedures for the aforementioned remittance by 11:00 a.m. of the Loan Drawdown Date.
		

		
			(2) In the event that the Loaner decides not to provide the Loan for the reason that the conditions precedent to the Loan Obligations are, in whole or in part, not satisfied, the Loaner may notify the Borrower of the decision. However, the Loaner shall not be relieved from its liability arising from its failure to provide the Loan despite that all of the conditions precedent to the Loan Obligations are satisfied.
		

		
			(3) The Borrower shall indemnify the Loaner against any damages, losses, and expenses suffered by the Loaner (including, but not limited to, the expenses incurred to avoid any damages or losses, the expenses incurred to recover from damages or losses and attorney's expenses) caused by the Loaner's inability to provide the Loan; provided, however, the Borrower shall have no obligation to indemnify the Loaner if such inability of the Loaner is the Loaner's breach of the Loan Obligations.
		

		
			Article 2-4Exemption of Loaner from its obligations
		

		
			 
		

		
			(1) The Loaner shall immediately notify in writing the Borrower of any Loan Disabling Incident that the Loaner determines to have occurred.   
		

		
			(2) The Loaner shall also notify the Borrower of any cessation, to the Loaner's judgment, of the aforementioned Loan Disabling Incident, occurring after the Loaner's notice of its occurrence to the Borrower pursuant to Article 2-4(1).
		

		
			(3) The Loaner shall be exempted from the Loan Obligations for the period from (and including) the date of Borrower's receipt of the notice in accordance with Article 2-4(1) to (and including) the date of Borrower's receipt of the notice in accordance with Article 2-4(2). Such period shall be hereinafter referred to as the "Loan Disabled Period.”
		

		
			Article 2-5  Increased Expenses
		

		
			 
		

		
			(1) In the event that the Increased Expenses occur, the Loaner may, by provide the written notice explaining the reasonable reasons for the occurrence of the Increased Expenses, demand the Borrower to choose either to (i) bear the Increased Expenses, or (ii) (a) to extinguish the Loaner’s Loan Obligations or (b) to terminate this Agreement, with the Loaner identifying (a) or (b) to the Borrower. The Borrower shall reply the aforementioned notice of demand by giving the Loaner the written notice, within fifteen (15) Japan Business Days of the date of receiving the aforementioned notice.  
		

		
			(2) Where the Borrower chooses to (i) bear the Increased Expenses in its reply to the Loaner's demand in Article 2-5(1), the Borrower shall pay the amount equivalent to the Increased Expenses in accordance with the provisions hereof on the fifth Japan Business Day from the date on which the Borrower gives its reply to the Loaner pursuant to the Article 2-5(1).
		

		
			(3) Where the Borrower chooses (ii) to extinguish the Loaner's Loan Obligations or to terminate this Agreement to the demand under Article 2-5(1), the Borrower shall notify in writing the Loaner thereof.
		

		
			

		 

		

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(4) Where the notice under Article 2-5(3) is given in reply to the Loaner identifying (ii) (a) to extinguish the Loaner's Loan Obligations in its demand pursuant to Article 2-5(1), the Loaner's Loan Obligations shall be extinguished effective upon the delivery date of the aforementioned notice is delivered to the Loaner (the "Date of Extinguishment of the Loan Obligations" in this article).
		

		
			(5) Where the notice under Article 2-5(3) is given in reply to the Loaner identifying (ii) (b) to terminate this Agreement in its demand pursuant to Article 2-5(1), this Agreement shall be terminated effective on the date on which the aforementioned notice is delivered to the Loaner (the "Date of Termination of the Agreement" in this article). In this case, the Borrower shall perform all of its obligations hereunder to the Loaner in accordance with this Agreement on the fifth Japan Business Day from the Date of Termination of the Agreement. All provisions herein relevant to the performance by Borrower of its obligations to the Loaner shall remain in full force and effect, until and to the extent of the completion by the Borrower of its performance of its obligations.
		

		
			 
		

		
			Chapter ThreeRepresentations and Warranties by the Borrower
		

		
			Article 3-1Representations and warranties by the Borrower
		

		
			The Borrower hereby represents and warrants that all matters stipulated in the following paragraphs are nothing but the truth as of the date of execution of this Agreement and each of the Loan Drawdown Dates (except for the matters with respect to the Security Agreement as of the date of execution of this Agreement). In the event that such representations or warranties are found to be untrue at a later date, the Borrower shall immediately notify in writing the Loaner thereof and indemnify and hold harmless the Loaner against all of its losses, expenses, and other damages arising therefrom.
		

		
			(i) The Borrower is a stock corporation duly incorporated and validly existing under Japanese laws.
		

		
			(ii) The Borrower has full legal rights and capabilities to execute and perform under the Financing Agreements; Borrower's execution and performance under the Financing Agreements as well as its transactions thereunder are all within the scope of purpose for the incorporation of the Borrower; and the Borrower has completed all procedures required by the Laws, etc., its articles of incorporation, and other internal rules of the Borrower for the execution and performance.
		

		
			(iii) Borrower's execution and performance under the Financing Agreements as well as its transactions thereunder do not (i) violate any Laws, etc., binding upon the Borrower, (ii) contravene its articles of incorporation, and other internal rules of the Borrower, or (iii) contravene any agreements or contracts with any third parties to which the Borrower is a party or which are binding upon the Borrower or its property.
		

		
			(iv) Any person who gives one's signature to, or whose name is stated and whose seal of approval is given in the Financing Agreements has been duly granted, through all procedures required by the Laws, etc., its articles of incorporation, and other internal rules of the Borrower, the full power and authority to represent the Borrower and give one's signature to, or whose name is stated and whose seal of approval is given in the Financing Agreements.
		

		
			(v) The Financing Agreements are lawful, valid, and binding upon the Borrower and is enforceable in accordance with each of their provisions.   
		

		
			(vi) The financial statements and business reports, and their supplementary schedules prescribed by Article 435, paragraph 2 of the Companies Act (Law number 86 of 2005, as amended), the provisional financial statements prescribed by Article 441, paragraph 1 of the Companies Act, and consolidated financial statements prescribed by 

		 

		

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Article 441, paragraph 1 of the Companies Act, each prepared by the Borrower (hereinafter referred to as the "Financial Statements, etc.," are accurate by the standards of the generally accepted accounting principles of Japan, are lawfully prepared, appropriately represent the state of assets and liabilities, and the state of financial conditions and the profits of the Borrower as of the date of preparation, and were audited by the auditing firm, which gave its opinion endorsing the appropriateness of such statements and reports.   
		

		
			(vii) Since the closing of the accounts for the Borrower's business year that ended in March, 2015, there have been no changes in the circumstances surrounding the Borrower which represent specific possibilities of an incident that would significantly deteriorate the Borrower's business, property or financial conditions as stated in its Financial Statements, etc., and cause material adverse effects on the Borrower's performance of obligations under the Financing Agreements,
		

		
			(viii) No litigations, arbitrations, administrative proceedings, or any other disputes that would cause, or pose threats of, the material adverse effects on the performance by the Borrower or the Subject Company of their obligations pursuant to the Financing Agreement have been commenced in relation to the Borrower or the Subject Company and there are no plausible threats of the same.
		

		
			(ix) No Incidents Causing All Debts Become Due And Payable (as prescribed in this Agreement) or its plausible threats exist.
		

		
			 (x) All information provided by the Borrower to the Loaner is accurate in its material respects, has nothing omitted in its material respects, and does not cause any material misunderstandings.
		

		
			(xi) There is no Borrower's breach of its obligations under any of the Agreements Relevant to the Acquisition or plausible threats thereof occurring after the Loan Drawdown Date.
		

		
			(xii) The Borrower's obligations to make payments to the Loaner pursuant to the Financing Agreements rank at least pari passu to all other unsecured debts of the Borrower at present and future in terms of the creditor's rank or right to receive payments, except for prioritized debts based on the general application of law.
		

		
			(xiii) Neither the Borrower nor the Subject Company is Antisocial Forces or a Person Associated with Antisocial Forces; nor do they engage in or utilize third parties to indirectly engage in the Antisocial Acts.
		

		
			(xiv)  The Subject Company is a wholly owned subsidiary of the Borrower, with all of its voting rights owned by the Borrower
		

		
			(xv) The Borrower and the Subject Company maintains all permissions, etc., necessary for their operation of the business and comply with all Laws, etc., in their material respects.
		

		
			 
		

		
			 
		

		
			Chapter FourObligations of the Borrower
		

		
			 
		

		
			Article 4-1Obligations of the Borrower
		

		
			 
		

		
			(1) The Borrower shall, on the date of executing this Agreement, submit all of the following documents to the Loaner at its costs and responsibility:
		

		
			

		 

		

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(i) The certificate of a seal impression less than three (3) months old as at the date of receipt and valid as of the date of executing this Agreement, for the representative of Borrower whose name is stated and whose seal of approval is given in this Agreement as a signatory;
		

		
			(ii) The certified copy of commercial registration less than three (3) months old as at the date of issue and valid as of the date of executing this Agreement;
		

		
			(iii) The certified copy of the articles of incorporation;
		

		
			(iv) Registration of the seal of approval or signature in a format designated by Loaner; and
		

		
			(v) A copy of the Acquisition Agreement.
		

		
			(2) Unless the Borrower obtains a prior written approval of the Loaner, the Borrower shall not provide security for any debts (except for the debts pursuant to the Financing Agreements) owed by itself or any third party, for the period from the date of executing this Agreement until the Borrower performs all of its obligations to Loaner arising from the Financing Agreements; except that either of the following applies and that the Borrower provides a prior written notice to the Loaner that it will provide the security:
		

		
			(i) The Borrower provides security over the assets it acquires, the funds for which are raised through a loan (including a loan for its refinancing); or
		

		
			(ii) The Borrower newly acquires an asset over which security interests are created, including the cases where the Borrower acquires the assets over which security interests have already been created in connection with a corporate merger, company split, or sale of business.
		

		
			To "provide security" means, in this article, to create or reserve the security interests over the assets of the Borrower, excluding statutory lien, retention rights, or other security interests that are naturally established pursuant to the Laws, etc.
		

		
			(3) The Borrower hereby covenants that, for the period from the date of executing this Agreement until this Agreement is terminated and the Borrower performs to the Loaner all of its obligations arising from the Financing Agreements, it will perform all of the following obligations at its expense and responsibility:
		

		
			(i) The Borrower will immediately report to the Loaner any Incidents Causing All Debts Become Due And Payable or its plausible threats.
		

		
			(ii) Where the Borrower prepares its Financial Statements, etc., the Borrower shall submit the copy thereof to the Loaner within three (3) months from the last day of each business year. Such Financial Statements, etc., will be accurate by the standards of the generally accepted accounting principles of Japan, be lawfully prepared, appropriately represent the state of assets and liabilities, financial conditions, and the state of profits of the Borrower as of the date of preparation, and be audited by the auditing firm, which will give its opinion endorsing the appropriateness of such statements.
		

		
			Where the Borrower discloses its reports, etc., electrically by using the EDINET, an electronic disclosure system for disclosure of such documents as Annual Securities Report pursuant to Financial Instruments and Exchange Act, such disclosure shall be deemed to be the submission stipulated in the previous sentence; provided that the Borrower shall nevertheless submit the copy stipulated in the previous sentence upon request by the Loaner.
		

		
			(iii) Upon reasonable request by the Loaner, the Borrower will immediately report the status of the property, management or business of the Borrower and its subsidiaries (the meaning of which is given in the regulation 

		 

		

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applied to the definition of terms, form and the method of preparation used for financial statements, etc., regardless of whether the Financial Statements, etc., of the Borrower is actually prepared pursuant to such regulation; the same shall apply hereinafter), and provide reasonably necessary convenience to the Loaner.
		

		
			 (iv) The Borrower will immediately report to the Loaner any occurrence of i) an incident which would cause material adverse effects on the property, management, or business of the Borrower or the Subject Company, ii) an incident which specifically threatens to cause such adverse effects by the lapse of time, or iii) commencement, or specific likelihood of the commencement of a litigation, arbitration, administrative proceeding, or any other disputes which would cause or specifically threatens to cause material adverse effects on performance by the Borrower or the Subject Company of their obligations pursuant to the Financing Agreements.   
		

		
			(v) The Borrower will immediately report to the Loaner its discovery that any of its representations or warranties in the Financing Agreements is found to be untrue, or any occurrence of an incident that contravenes such representation or warranty. 
		

		
			(4) The Borrower hereby covenants that, for the period from the date of executing this Agreement until this Agreement is terminated and the Borrower performs all of its obligations to the Loaner arising from the Financing Agreements, it will comply with all of the following items:
		

		
			(i) The Borrower will not make material changes to its principal business. Nor will it cause the Subject Company to do the same.
		

		
			(ii) The Borrower will maintain all permissions, etc., necessary for its operation of the business and comply with all Laws, etc., and shall cause the Subject Company to do the same for the operation of its business.
		

		
			(iii) The Borrower will maintain the percentage of the principal of the Unpaid Loan Dues for the Tranche A-1 and Tranche B-1 in the loan balances of Tranche A and Tranche B at or below sixty percent (60%) respectively;
		

		
			(iv) The Borrower will ensure that its direct or indirect equity ownership in the Subject Company shall not become less than 100%;
		

		
			(v) Except as otherwise provided for by the Law, etc., Borrower's repayment of any debt pursuant to the Financing Agreements will rank at least pari passu and in no way subordinate to all other unsecured debts (including the unrecovered portion of secured debts after converting the collateral into cash) of the Borrower;
		

		
			(vi) There shall be no reorganization, merger, company split, exchange or transfer of shares of the Borrower, or sales of all or substantial part of the Borrower's business or assets to third parties (including the sale thereof for the purpose a sale and leaseback transaction, but excluding the same which is within the scope of the Borrower's ordinary course of business), each of which causes material adverse effects on the Borrower's ability to repay its debts pursuant to the Financing Agreements;
		

		
			(vii) The Borrower will maintain all of the Settlement Accounts of the Borrower.
		

		
			(viii) Neither the Borrower nor the Subject Company will become Antisocial Forces or a Person Associated with Antisocial Forces; nor will they engage in or utilize third parties to indirectly engage in the Antisocial Acts, nor will they make the Subject Company to engage in the Antisocial Acts.
		

		
			(ix) The Borrower will retain its accounting books pertaining to its business, liabilities, and assets, its Financial Statements, and all documents that are considered reasonably necessary for the purpose of generally accepted accounting procedures.
		

		
			

		 

		

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(x)  The Borrower shall enter into the Security Agreement as of the Loan Drawdown Date of Tranche A (New York time zone shall also apply for the purpose of this item) and create and perfect the valid and first-priority security interests over the Shares of the Subject Company with the Loaner being the security holder.
		

		
			(5) The Borrower hereby covenants that, for the period from the date of executing this Agreement until this Agreement is terminated and the Borrower performs all of its obligations to Loaner arising from the Financing Agreements, it will comply with all of the following items:
		

		
			(i) The Borrower will not record an ordinary loss in its financial statements as at the end of any two (2) consecutive business years, either on a consolidated or nonconsolidated basis.
		

		
			(ii) The total amount for the section of net assets in the Borrower's consolidated balance sheets for the successive business years after March 31st, 2016 will be no less than the higher of i) seventy-five percent (75%) of the total amount for the section of net assets in the Borrower's consolidated balance sheet as at the end of the Borrower's business year that ended in March 2015, or ii) seventy-five percent (75%) of the total amount for the section of net assets in the Borrower's consolidated balance sheet as at the end of the immediately preceding business year.
		

		
			(6) The Borrower shall notify in writing the Loaner of any order of provisional attachment, preservative attachment, or attachment imposed on the loan claim in connection with the Loan, immediately after the same is served upon the Borrower, together with the copy thereof. In such notification, the Borrower must also make a phone call to Loaner to confirm the notification has been actually delivered to the Loaner.
		

		
			(7) The Borrower shall not claim any damages from Loaner for the Borrower's damages, losses, or expenses arising from (a) the fact that Borrower's representation and warranty pursuant to Article 3-1(xiii) is found to be untrue, or (b) the application of Article 5-1 based on the Borrower's breach of Article 4-1(4)(xiii). The Borrower shall indemnify and hold harmless the Loaner from any of the Loaner's damages, losses, or expenses arising from (a) or (b) in the foregoing sentence.     
		

		
			 
		

		
			Article 4-2Obligations of the Borrower (Considerations to Society and the Environment)
		

		
			 
		

		
			(1) The Borrower must, by following the instructions given by the Loaner, report to the Loaner the Borrower's measures and the outcome of the Borrower's monitoring activities for the Considerations to Society and the Environment in connection with the operation of the Subject Business. The Borrower shall report to Loaner any of the Borrower's threatened inability, as it comes to the Borrower's knowledge, to comply with any environmental law, regulation, or standards, etc., implemented by the national or local government of the region in which the Subject Business is operated.
		

		
			(2) In the event that any issue with respect to the Considerations of Society and the Environment arises, the Borrower shall engage in, or shall cause the Subject Company to engage in, a consultation in good faith with the stakeholders of the Subject Business including local residents and regional NGOs.
		

		
			(3) Where the national or local government of the region in which the Subject Business is operated plays an important role in terms of the Considerations to Society and the Environment, the Borrower shall endeavor to involve such government in concluding arrangements, etc., with respect to Considerations to Society and the Environment.
		

		
			(4)  If it is revealed that the Borrower's failure to provide the Loaner with correct information in connection with the Borrower's report on the Considerations to Society and the Environment causes unfavorable impact to the 

		 

		

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environment, the Borrower shall, upon demand by the Loaner, repay all of the Unpaid Loan Dues to the Loaner by the date specified by the Loaner.
		

		
			(5) The Borrower shall retain certificates etc. and other materials for prima facie proof in connection with this Agreement requested by the Loaner (including copies of the agreement, etc., and proof of remittance in connection with the capital contribution, etc.) and, upon request by the Loaner, submit the copy of the same or ensure that the Loaner is able to confirm the certificates etc. and other materials for prima facie proof requested by the Loaner.
		

		
			(6) The Borrower shall render its cooperation in connection with the investigation about the Borrower which the Loaner or Japan Bank for International Corporation deems necessary.
		

		
			 
		

		
			Chapter FiveIncidents Causing Acceleration
		

		
			Article 5-1Incidents Causing Acceleration
		

		
			(1) In the event that any single item out of (i) through (v) below occurs upon the Borrower, all debts of the Borrower under the Financing Agreements shall naturally and immediately become due and payable, and the Borrower shall, immediately and in accordance with the provisions of the Financing Agreements, repay all amounts of the principal and interests of the Loan, the Settlement Money and any other money which the Borrower has the obligation to pay pursuant to the Financing Agreements, with or without notice or demand from the Loaner. The term "Incidents Causing Acceleration" in this Agreement means each of the items in this Article 5-1(1) and Article 5-1(2).
		

		
			(i) The payment by the Borrower is suspended, or a petition for the commencement of bankruptcy proceedings, commencement of civil rehabilitation proceedings, commencement of corporate reorganization proceedings, commencement of special liquidation proceedings, or any other legal insolvency proceedings is filed by or against the Borrower (including such petition filed in countries outside Japan).   
		

		
			(ii) The Borrower passes a resolution for dissolution; a court renders the judgment to dissolve the Borrower; or a court issues an order to dissolve the Borrower.
		

		
			(iii) The Borrower terminates its business.
		

		
			(iv) A clearinghouse or densai.net Co., Ltd. imposes the penalty of suspending transactions upon the Borrower, or any other entity that records monetary claims electronically imposes a similar sanction upon the Borrower.
		

		
			(v) An order or notice of provisional attachment, preservative attachment, or attachment upon the Borrower's deposit claims or other monetary claims to the Loaner (including a similar proceeding in countries outside Japan) is served upon the Borrower.
		

		
			(2) In the event that any single item out of (i) through (viii) below occurs upon the Borrower or the Subject Company, all  debts of the Borrower under the Financing Agreements shall immediately become due and payable with a notice from the Loaner, and the Borrower shall, immediately and in accordance with the provisions in the Financing Agreements, repay all amounts of the principal and interests of the Loan, the Settlement Money and any other money which the Borrower has the obligation to pay pursuant to the Financing Agreements.
		

		
			(i) The Borrower's performance of the obligations under the Financing Agreements is delayed, in whole or in part.
		

		
			(ii) The Borrower's representation or warranty under the Financing Agreements is found to be untrue.
		

		
			

		 

		

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(iii) The Borrower commits a material breach of other obligations than items (i) or (ii) above under the Financing Agreements.
		

		
			(iv) The Borrower's monetary debt other than those pursuant to the Financing Agreements and of which aggregate amount exceeds fifty million Japanese yen (JPY 50,000,000) becomes immediately due and payable, or the Borrower fails to perform its obligation as it becomes due.
		

		
			(v) A litigation, mediation, arbitration, or administrative proceeding is commenced, a decision of which is reasonably likely to be unfavorable to the Borrower or the Subject Company, and, once such unfavorable decision is given, it is reasonably likely that the decision will cause material adverse effects on the Borrower or the Subject Company.
		

		
			(vi) Special mediation proceedings are commenced for the Borrower.
		

		
			(vii) The rank of the security interests created upon the Shares of the Subject Company pursuant to the Security Agreement is not the first priority; the Loaner's rights to such security interests do not satisfy the requirements for being perfected or becomes not perfected; or such security interests become invalid or not effective.
		

		
			(viii) Except as set forth in items (i) through (vii) above, the state of Borrower's business or property suffers material deterioration so that there is a reasonable need to preserve the Loaner's claims.
		

		
			(3) In the event of delay attributable to the Borrower in giving the notice of any of the items in Article 5-1(2) above or Borrower's failure to give the same, all debts of the Borrower under the Financing Agreements shall immediately become due and payable, the Borrower shall immediately repay all amounts of the principal and interests of the Loan, the Settlement Money and any other money which the Borrower has the obligation to pay pursuant to the Financing Agreements, and the Loaner's Loan Obligations (if any) shall be extinguished, each of which taking effect on the date on which the Borrower's notice should have normally been delivered to the Loaner.  
		

		
			 
		

		
			Chapter SixTermination of the Loan Obligations
		

		
			Article 6-1Termination of the Loan Obligations
		

		
			(1) In the event of any of the following incidents, all of the Loaner's Loan Obligations with respect to the relevant Tranche shall be extinguished. The Borrower, in this case shall nevertheless have the obligation to repay, on the Repayment Date (unless the Borrower's debts pursuant to the Financing Agreements become due and immediately payable), the portion of the principal and the interests of the Loan of which Repayment Date is after the date of the said extinguishment. All relevant provisions herein shall survive such extinguishment and be in full force and effect until and to the extent of the Borrower's completion of all of its performance of obligations under the Financing Agreements.
		

		
			(i) The Loan Drawdown Date has elapsed.
		

		
			(ii) The Loaner has provided the Loan.
		

		
			(2) In the event that the execution of and the performance under this Agreement as well as the transactions hereunder violate any Laws, etc., binding upon the Lender, the Lender shall consult with the Borrower and determine necessary courses of actions. In this case, the Borrower may not unreasonably reject the extinguishment of the Loaner's Loan Obligations or the termination of this Agreement.
		

		
			 
		

		
			

		 

		

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Chapter SevenProvisions Governing the Repayment of Debts
		

		
			Article 7-1Performance of obligations by the Borrower
		

		
			(1) The Borrower shall, for the purpose of repaying its debts hereunder, make the remittance to the Settlement Account of Borrower for each Loan Currency applicable to respective Tranche, (a) no later than the Payment Due Time, for such debts that have the Repayment Date hereunder, or (b) immediately upon demand by the Loaner given to the Borrower, for such debts that do not have the Repayment Date hereunder. In this case, the Borrower's performance of its obligation to the Loaner shall be deemed to have been completed upon the Loaner's withdrawal of the repayment from the Settlement Account of Borrower. The Lender shall do the aforementioned withdrawal (a) by the end of the Payment Due Date, for such debts that have the Repayment Date hereunder, or (b) without undue delay on or after the date of remittance, for such debts that do not have the Repayment Date hereunder.
		

		
			(2) The Borrower shall grant to the Loaner, and waive its rights to revoke such grant of, the right to withdraw the money from the Settlement Account of Borrower pursuant to Article 7-1(1). The aforementioned withdrawal shall not require any cheque or application for withdrawal issued by the Borrower.
		

		
			(3) All repayments of the Borrower pursuant to this article shall be applied to, and in the order of, the following items (such order shall be referred to as the "Order of Application"). However, in the event that the Borrower's debts under the Financing Agreements become immediately due and payable, the application and the order shall be separately determined by other provisions herein.
		

		
			 (i) The portion that is required to be paid to third parties in the expenses to be borne by the Borrower pursuant to the Financing Agreements.
		

		
			(ii) The portion that is incurred by the Loaner on behalf of the Borrower, in the expenses to be borne by the Borrower pursuant to the Financing Agreements.   
		

		
			(iii) the delay charges and Settlement Money
		

		
			(iv) Interests on Loan
		

		
			(v) The principal of Loan
		

		
			(4) If the applied repayment is insufficient for any item in Article 7-1(3) (the first of such item in the order in Article 7-1(3) shall be referred to as "Insufficient Item"), the balance of the repayment amount remaining after its application to the immediately preceding item to the Insufficient Item shall be applied in proportion to the amount of each of payable debts of the Borrower within the Insufficient Item (this method of application shall be hereinafter referred to as "Application Method for the Insufficient Item").
		

		
			(5) Except as otherwise required by the Laws, etc., the Borrower shall not deduct the Taxes and Government Duties, etc., from the repayment of its debts pursuant to the Financing Agreements. If the Borrower is required to deduct the Taxes and Government Duties, etc., from the repayment of its debts, the Borrower shall add an amount to the repayment so that the amount received by the Loaner net of the Taxes and Government Duties, etc., will be equal to the amount had it not been for such Taxes and Government Duties, etc. In this case, the Borrower shall send the certificate of tax payment issued by the tax authorities of Japan in charge of withholding taxes or any other government authorities directly to the Loaner within thirty (30) days of the date on which the Borrower makes the repayment. 
		

		
			 
		

		
			

		 

		

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 Article 7-2 Set-off
		

		
			(1) When the Borrower is required to perform its obligations for the Loaner for such reasons as its debt becoming due, its debt becoming immediately due and payable or otherwise, the Loaner may (a) set off its deposit liability and other liabilities to the Borrower (regardless of its due date) against its receivables from the Borrower pursuant to the Financing Agreements, and (b) may, without any prior notice to the Borrower or any prescribed procedures, receive on behalf of the Borrower a repayment of deposits made by the Borrower and then apply such receipt to the unpaid debts owed by the Borrower.  The method of manifesting the Loaner's intentions shall be in accordance with the Laws, etc. Interests on the receivables and liabilities, the Settlement Money, and the delay charges for the foregoing set-off or application to the debts shall be calculated for the period ending the date on which such calculation is performed. The interest rates and the rate of charges in such calculation shall be in accordance with the provisions of applicable agreements, or, in the absence of such provisions, be reasonably determined by the Loaner. The exchange rates for foreign currencies shall be reasonably determined by the Loaner based on the market rates on the date of the calculation. In the event that the foregoing set-off or application to the debts is insufficient to extinguish the total amount of debts owed by the Borrower, the Loaner may apply in the order and method as it thinks fit and the Borrower may not object to that application.
		

		
			(2) The Borrower may set off its receivables from the Loaner against its liabilities to the Loaner hereunder, only if the Repayment Date of the Loan becomes due and it is necessary to preserve such receivables of the Borrower as its deposit claims or other monetary claims with the Loaner become due. In this case, the Borrower shall notify in writing the Loaner of the set-off and promptly submit to the Loaner the certificate or passbook of its deposit claims or other monetary claims by which the set-off is made. Interests on the receivables and liabilities and the amount of delay charges for the foregoing set-off shall be calculated for on the period ending the date on which the notice of set-off is delivered. The interest rates and the rate of charges in such calculation shall be in accordance with the provisions of applicable agreements, or, in the absence of such provisions, be reasonably determined by the Loaner. The exchange rates for foreign currencies shall be reasonably determined by the Loaner based on the market rates on the date of the calculation. In the event that the foregoing set-offs are insufficient to extinguish the total amount of debts owed by the Borrower, the Borrower may apply in the order and method as it thinks fit. However, if the Borrower fails to designate such order or method, the Loaner may apply in the order and method as it thinks fit and the Borrower may not object to that application.
		

		
			(3) In the event that the set-off herein is performed, the Party performing it shall promptly notify in writing the other party of the details of such set-off. The notifying party shall indemnify the other party against the other party's damages, losses, or expenses caused by the undue delay in giving such notice.
		

		
			 
		

		
			Chapter Eight Articles for the Repayment before Due
		

		
			 
		

		
			Article 8-1 Articles for the voluntary repayment before due
		

		
			 
		

		
			(1) The Borrower, when it plans to repay all or part of the principal of the Loan before the Maturity Date (such repayment shall be hereinafter referred to as the "Repayment before Due"), shall do so in accordance with the procedures set forth in the following paragraphs.
		

		
			(2) When the Borrower plans the Repayment before Due, it shall, no later than forty-five (45) days before the date of the planned Repayment before Due (such date shall be the Business Day and be referred to as the "Planned Date of 

		 

		

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Repayment before Due" in this chapter), notify in writing the Loaner of (a) the Tranche and its amount of principal for the planned Repayment before Due (provided that such amount of the principal shall be fifty million yen (JPY 50,000,000) and above, and be in units of fifty million yen (JPY 50,000,000), for the Loan in Japanese yen; or five hundred thousand U.S. dollars (USD 500,000) and above, and be in units of five hundred thousand U.S. dollars (USD 500,000), for the Loan in U.S. dollars; or the entire amount of the Unpaid Loan Dues in the Loan for which the Repayment before Due is planned), (b) the Borrower's intention to pay the full amount of interest which will accrue on the amount of principal for which the Repayment before Due is planned in the period from (and including) the Drawdown Date of the Loan to (and including) the Planned Date of Repayment before Due (such amount of interest shall be referred to as the "Transitional Interest" in this chapter and the calculation method of the Transitional Interest shall be in accordance with the method of calculating the amount of ordinary interest as provided herein), and (c) the Planned Date of Repayment before Due.
		

		
			(3) In performing the Repayment before Due for Tranche A or Tranche B pursuant to Article 8-1(2), the Borrower will maintain the percentage of the balance of the principal of the Unpaid Loan Dues after the Repayment before Due with respect to the Tranche A-1 and Tranche B-1 in the loan balance of Tranche A and Tranche B at or below sixty percent (60%) respectively.
		

		
			(4) The Loaner shall make its judgment as to whether or not it accepts the Repayment before Due and notify the Borrower of such judgment no later than thirty (30) days before the requested Date of Repayment before Due. 
		

		
			(5) If the Repayment before Due is accepted in accordance with Article 8-1(4), the Lender  shall notify the Borrower of the Settlement Money no later than two (2) Business Days before the Planned Date of Repayment before Due. The Borrower shall pay the principal of the Loan, and the aggregate amount of the Transitional Interest and the Settlement Money subject to the Repayment before Due on the Planned Date of Repayment before Due.
		

		
			(6) In the event that any Repayment before Due made pursuant to this article represents a portion of the principal of the Loan, such repayment shall be applied first to the principal of the applicable Loan that falls due the latest of all others.
		

		
			 
		

		
			Article 8-2Articles for the mandatory repayment before due
		

		
			 
		

		
			(1) In the event that any of the incidents described in the following items occurs after the Loan Drawdown Date (such incident shall be referred to as the "Incident Causing the Mandatory Repayment before Due"), the Borrower must repay all or part of the principal of the Loan before its due date, in an amount and by the date stipulated below (such repayment shall be referred to as the “Mandatory Repayment before Due” and such date shall be hereinafter referred to as the "Due Date for Mandatory Repayment before Due"). All amounts in item (i) below and all pro-rated amounts in items (ii) and (iii) below shall be adjusted so that each of them will be in units of one hundred thousand yen (JPY 100,000) or one thousand U.S. dollars (USD 1,000).
		

		
			(i) In the event that the percentage of the principal of the Unpaid Loan Dues with respect to the Tranche A-1 or Tranche B-1 in the loan balance of Tranche A or Tranche B becomes, respectively, more than sixty percent (60%), the Borrower shall, immediately (but in any event within ten (10) days of the date on which such incident occurs) and before the due date, repay to the Loaner the principal, the Transitional Interest and the Settlement Money of the Loan with respect to the excess amount in the applicable Tranche.
		

		
			(ii) In the event that Borrower issues its shares (only when its considerations are paid in money; for the avoidance of doubt, this issuance excludes the share subscription warrants) and only upon request by the Loaner, the Borrower 

		 

		

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shall, immediately after the receipt of the proceeds from the issue (but in any event within ten (10) days of the date on which such incident occurs), remit, as the Repayment before Due, fifty percent (50%) (or such percentage above fifty percent (50%) as agreed upon by the Borrower and the Loaner as the result of a negotiation in good faith) of the amount of the proceeds net of the reasonable expenses and Taxes and Government Duties in connection with the proceeds, to the Settlement Account of Borrower with respect to the relevant Tranche. The amount of the Repayment before Due for each of the Tranches shall be calculated in proportion to the amount of principal in the respective Unpaid Loan Dues.
		

		
			(iii) In the event that Subject Company transfers all or substantially all of the Subject Business to third parties (except for the Borrower or its subsidiaries) by means of sale or other disposals, the Borrower shall, on the date of the receipt of the proceeds from the transfer, remit, as the Repayment before Due, one hundred percent (100%) of the amount of the proceeds from the transfer net of reasonable expenses and Taxes and Government Duties in connection with said transfer, to the Settlement Account of Borrower for the applicable currency with respect to the relevant Tranche. The amount of Repayment before Due for each of the Tranches shall be calculated in proportion to the amount of principal in the respective Unpaid Loan Dues.
		

		
			(2) In the event of the Mandatory Repayment before Due in accordance with Article 8-2(1), the Borrower shall, no later than five (5) Business Days before the date on which the Mandatory Repayment before Due is made (hereinafter referred to as the "Planned Date of Mandatory Repayment before Due"), notify in writing the Loaner of (a) its intention to make the Mandatory Repayment before Due, (b) the amount of the principal of the Loan for which the Mandatory Repayment before Due is planned, (c) the Borrower's intention to repay the aggregate of the full amount of the interest accruing for the period until (and including) the Planned Date of Mandatory Repayment before Due and the Settlement Money, each with respect to the principal for the Mandatory Repayment before Due, and (d) the Planned Date of Repayment before Due.
		

		
			 
		

		
			(3) In the event that any Repayment before Due made pursuant to this article represents a portion of the principal of the Loan, such repayment shall be applied first to the principal of the Loan that falls due the latest of all others.
		

		
			 
		

		
			Chapter NineOther Provisions
		

		
			 
		

		
			Article 9-1Collections, etc., from third parties
		

		
			 
		

		
			(1) Unless the Loaner gives its prior written acceptance, no repayments by any third parties other than the Borrower shall be accepted with respect to the Borrower's debts under the Financing Agreements.
		

		
			(2) Unless the Loaner gives its prior written acceptance,
		

		
			 the Borrower shall not, after the date of execution of this Agreement, engage any third party to provide its guarantee (including a real guarantee) over the Borrower's debts pursuant to the Financing Agreements, or assign any debts pursuant to the Financing Agreements to any third party.
		

		
			(3) Where the Loaner enters into a guarantee agreement (including a real guarantee) or a debt assumption agreement with a third party not commissioned by the Borrower with respect to the Borrower's debts pursuant to the Financing Agreements, the Loaner shall be required to obtain the prior written consent of the third party that;
		

		
			

		 

		

			59

		

		

			 

		

 

(i) the third party will assume the same obligations as the Loaner has towards the Borrower pursuant to the right of indemnification or Financing Agreements, in connection with the third party's exercise of (a) the rights of the third party to demand performance by the Borrower acquired through the third party's performance of obligations under the aforementioned debt assumption agreement, and (b) its claim rights under the Financing Agreements;
		

		
			(ii) the third party will be bound by each provision of this Agreement;
		

		
			(iii) the third party is a corporation having its place of business in Japan (i.e. it has its head office, branch office or sales office having registered itself in Japan pursuant to the laws of Japan) and not a subsidiary, etc., of the Borrower, and the Borrower is not a subsidiary of such third party;
		

		
			(iv) the amount of claim rights regarding the Loan that the third party may acquire through subrogation shall be one hundred million yen (JPY 100,000,000) and above, or one million U.S. dollars (USD 1,000,000) and above; and
		

		
			(v) no withholding tax, etc., which will increase the amount of interest to be paid by the Borrower to such third party shall be imposed on the aforementioned subrogation.
		

		
			Where the subrogation of the loan claims to a third party under the Financing Agreements takes place pursuant to item (i) above, all expenses incurred for such subrogation shall be borne by such third party.
		

		
			    
		

		
			Article 9-2Assignment
		

		
			 
		

		
			(1) Unless the Loaner gives its prior written acceptance, the Borrower may not assign its status, rights, or obligations under this Agreement to any third parties.
		

		
			(2) Subject to the Borrower's prior written acceptance and the satisfaction of all of the requirements set forth in the following items, and except for the assignment of the loan claims as separately set forth herein, the Loaner may, until its provision of the Loan, assign its status and its associated rights or obligations under this Agreement, in whole or in part, to any third parties , provided, however, that this shall not apply when special provisions exist in this agreement pertaining to  the assignment of the loan claims. The Loaner assigning as such shall be hereinafter referred to as the "Assignor" and the person to whom the Assignor assigns shall be hereinafter referred to as the "Assignee.”
		

		
			(i) In the case of a partial assignment of this Agreement, the Assignor and the Assignee shall jointly be the Loaner hereunder and be bound by the provisions of this Agreement on and after the date of such assignment, and the Amount of Loan Proceeds provided by the Assignor before the assignment (referred to as "Amount of Loan Proceeds before Assignment" in this paragraph) shall be reduced by the amount separately agreed by the Assignor and the Assignee (referred to as the "Reduction Amount" in this paragraph).
		

		
			(ii) The Assignee is a corporation having its place of business in Japan (i.e. it has its head office, branch office or sales office having registered itself in Japan pursuant to the laws of Japan).
		

		
			(iii) In case of a partial assignment of this Agreement, (a) the Reduction Amount and (b) the amount calculated by deducting the Reduction Amount from the Amount of Loan Proceeds before Assignment will one hundred million yen (JPY 100,000,000) and above, or one million U.S. dollars (USD 1,000,000) and above.
		

		
			(iv) No withholding tax, etc., which will increase the amount of interest to be paid by the Borrower to the Assignee shall be imposed on the aforementioned assignment.
		

		
			

		 

		

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(3) All expenses, etc., incurred for the assignment pursuant to Article 9-2(2) above shall be borne by the Assignor or Assignee; provided that the Increased Expenses occurring upon the Assignee after the assignment shall be governed by the provisions herein with respect to the Increased Expenses.
		

		
			 
		

		
			Article 9-3Assignment after the provision of the Loan
		

		
			(1) Except as otherwise provided for herein and subject to the satisfaction of all of the requirements set forth in the following items, the Loaner may assign its loan claims. The Assignor and the Assignee shall, immediately following the date of such assignment, satisfy all requirements for perfecting such assignment against third parties and debtors. Upon assignment of the loan claims pursuant to this paragraph, all rights associated with the assigned loan claims of the Assignor hereunder shall be transferred to the Assignee; and the Assignee shall have undertaken all obligations associated with the assigned loan claims of the Assignor. The Borrower shall accept in advance such transfer of rights to the Assignee and such undertaking of obligations by the Assignee. The Assignee shall be deemed to be the Loaner in this case, in terms of the application of the provisions herein relevant to such loan claims.
		

		
			(i) The Assignee will be bound by each of the provisions herein relevant to the loan claims which are assigned to the Assignee (the Assignee shall not have the Loan Obligations).
		

		
			(ii) The Assignee is a corporation having its place of business in Japan (i.e. it has its head office, branch office or sales office having registered itself in Japan pursuant to the laws of Japan).
		

		
			(iii) If the loan claims are split as they are assigned, the amount of each loan claims after the split will be one hundred million yen (JPY 100,000,000) and above, or one million U.S. dollars (USD 1,000,000) and above.
		

		
			(iv) no withholding tax, etc., which will increase the amount of interest to be paid by the Borrower to the assignee shall be imposed on the aforementioned assignment.
		

		
			(2) All expenses, etc., incurred for the assignment pursuant to Article 9-3(1) above shall be borne by the Assignor or Assignee. The Increased Expenses occurring after the assignment shall be governed by the provisions herein with respect to the Increased Expenses.
		

		
			 
		

		
			Article 9-4General provisions
		

		
			(1) Disclosure of Information
		

		
			(i) Neither the Loaner nor the Borrower shall, before and after the complete repayment of all debts hereunder, disclose or divulge to third parties the contents of the Financing Agreements or other Party's confidential information that it learned in connection with the transactions contemplated by the Financing Agreements. Nor shall the Parties use the aforementioned contents or confidential information for any purposes except for the purpose in connection with the Financing Agreements or of the credit examination or credit administration by the Loaner. The obligations stipulated in the preceding sentences in this paragraph shall not apply to any information (i) which has become publicly known, (ii) lawfully obtained from third parties without confidentiality obligations, (iii) disclosed pursuant to the requirement by law, government agencies, or self-regulatory bodies (including the financial instruments exchange and Japan Securities Dealers' Association), (iv) disclosed to attorneys at law, judicial scriveners, certified public accountants, licensed tax accountants, et al., (v) disclosed by the Loaner or Borrower to its respective affiliated companies, (vi) disclosed by the Borrower to the Seller, (vii) disclosed for the 

		 

		

			61

		

		

			 

		

 

purpose of performing under, or incidental to or in connection with, the agreement with Japan Bank for International Corporation, or (viii) disclosed to the extent reasonably necessary for the transactions contemplated by the Financing Agreements and the Agreement Relevant to the Acquisition. The permitted disclosures of personal information shall nevertheless be limited to the extent permitted for disclosure by law. 
		

		
			(ii) The Borrower shall not object to the Loaner disclosing any information relating to the Financing Agreements to the assigns (including the Assignee), guarantors, persons assuming debts, purchasers of a participation benefit, or any persons who are considering the an assignment, guarantee, assumption of debts, or purchase of participation benefit (including the persons acting as a broker with respect to such transactions), each in connection with (a) the assignment of contractual status or of loan claims pursuant to the Financing Agreements, (b) the execution of a guarantee agreement (including a real guarantee) or a debt assumption agreement not commissioned by the Borrower with respect to the Borrower's debts pursuant to the Financing Agreements, or (c) the sale of a participation benefit in connection with the loan claims hereunder (including, but not limited to, the loan participation and self-settled trust); provided that the Loaner shall impose confidentiality obligations on the person(s) receiving the information. If the Loaner elects to disclose the information relating to the Financing Agreements in accordance with this item, the Loaner shall inform the Borrower of such fact, promptly after it imposes the confidentiality obligations on such person. The "information relating to the Financing Agreements" in this paragraph means any information about the credit worthiness of the Borrower obtained in connection with the Financing Agreements, information about the contents of the Financing Agreements and any other accompanying information, and contents of the loan claims which is the subject of transaction and any other accompanying information, but excluding any information about the creditworthiness of the Borrower obtained in connection with agreements other than the Financing Agreements.
		

		
			(2) Delay charges
		

		
			In the event that the Borrower delays its performance of obligations to the Loaner hereunder, the Borrower shall pay the delay charges immediately after the demand therefor from the Loaner pursuant to this Agreement. The aforementioned delay charges shall be calculated by multiplying the amount corresponding to the delayed performance of obligation  (such delayed performance shall be referred to as the "Delayed Performance") by the interest rate of fourteen percent (14%) per annum as applied to the period from (and including) the date on which the Delayed Performance should have been performed to (and including) the date on which all of the Delayed Performance are performed, based on the pro-rated calculation by the number of days elapsed (including the first day of the period but excluding the last), with the division being done finally, and the amount less than one (1) yen or 0.01 U.S. dollars being rounded down.
		

		
			(3) Expenses, and Taxes and Government Duties, etc.
		

		
			(i) All reasonable expenses (including the reasonable extent of attorney fees) incurred for the Financing Agreements, and the preparation, modification, and amendment of the term sheet with respect to the Financing Agreements shall be borne by the Borrower. Immediately after the demand for payment by the Loaner and subject to the consummation of the Acquisition, the Borrower shall pay the aforementioned expenses to the Loaner pursuant to this Agreement.
		

		
			(ii) All expenses (including attorney fees) incurred by the Loaner for its retention and exercise of its rights or performance of its obligation pursuant to the Financing Agreements shall be borne by the Borrower. The Loaner shall promptly notify the Borrower of such expenses as it incurs. Where the Loaner bears such expenses on behalf of the Borrower, the Borrower shall reimburse such expenses to the Loaner pursuant to this Agreement, immediately after the Loaner demands such reimbursement.
		

		
			

		 

		

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(iii) All stamp duties and other similar Taxes and Government Duties, etc., incurred for the preparation, modification, and enforcement, etc., of the Financing Agreements and other relevant documents shall be borne by the Borrower. Where the Loaner bares such expenses on behalf of the Borrower, the Borrower shall reimburse such expenses to the Loaner pursuant to this Agreement, immediately after the Loaner demands such reimbursement.
		

		
			(4) Amendments to this Agreement
		

		
			No amendments to this Agreement may be made except by the written agreement by the Loaner and the Borrower.
		

		
			(5) Assumption of risk, disclaimer, compensation, and indemnification
		

		
			(i) In the event that any documents submitted by the Borrower to the Loaner is lost, destroyed, or damaged due to such uncontrollable incidents as social uprising or natural disaster, the Borrower shall, after consultation with the Loaner, perform its obligations hereunder based on the accounting books, vouchers, and other records retained by the Loaner. Upon request by the Loaner, the Borrower shall promptly prepare and submit the replacing documents to the LoanerLoaner.
		

		
			(ii) The Borrower shall indemnify the Loaner against damages, losses, or expenses etc. incurred by the Loaner caused by an incident of the forged, altered, or stolen seal of the Borrower's approval occurring in the course of the Loaner's transactions pursuant to this Agreement where the Loaner used its due care in  verifying and authenticating the impression of the seal of approval by the Borrower's representative and its agent against another impression of the seal of approval which the Borrower had previously registered with the Loaner.   
		

		
			(iii) The Borrower shall indemnify the damages, losses, or expenses, etc., incurred by the Loaner caused by the Borrower's breach of the provisions herein. The Loaner shall promptly notify the Borrower of such damages, losses, or expenses, etc.
		

		
			(iv) In addition to Article 9-4(5)(iii) above, the Borrower shall indemnify the Loaner and its affiliated companies as well as their directors, officers, employees and agents (hereinafter referred to as the "Indemnified Party") against their expenses and liabilities (including attorney's fees) arising from or in connection with the demand, litigation, or other proceedings (regardless of whether the Indemnified Party is a party thereto; or any third party, the Borrower or its related parties initiated such demand, litigation, or other  proceedings) relevant to the transactions contemplated by the Financing Agreements; except for such expenses and liabilities caused by or based on the willful misconduct, gross negligence, or material breach of this Agreement by the Indemnified Party.
		

		
			(6) Severability
		

		
			If any part of the provisions of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of other provisions of this Agreement shall in no way be impaired or affected thereby.
		

		
			(7) Calculations
		

		
			Except as otherwise expressly stipulated herein, all calculations in this Agreement shall use a pro-rated calculation based on a number of days that includes the first day of the applicable period but excluding the last, with the division being done finally, and the amount less than one (1) yen or 0.01 U.S. dollars being rounded down.
		

		
			(8) Preparation of a notarized deed
		

		
			Upon request by the Loaner at any time, the Borrower shall follow necessary procedures to commission a notary public to issue a notarized deed authenticating the obligations contained herein and acknowledging the enforceability of a compulsory execution.
		

		
			

		 

		

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(9) Non-waiver of rights 
		

		
			No failure or delay by the Loaner in exercising its rights, in whole or in part, prescribed in this Agreement shall, under any circumstances, be construed as a waiver of such rights by the Loaner or a release or reduction of the Borrower's obligation, or give any effects to the rights or obligations of the Loaner.
		

		
			(10) A bank transaction agreement, etc., not applicable
		

		
			A bank transaction agreement, if any, separately submitted by the Borrower to the Loaner or separately entered into between the Borrower and the Loaner shall not apply to this Agreement or any transactions hereunder.
		

		
			(11) Governing law and jurisdiction
		

		
			This Agreement shall be governed by the laws of Japan. Any disputes arising from this Agreement shall be subject to the exclusive jurisdiction of the Tokyo District Court.
		

		
			(12)  Language
		

		
			This Agreement shall be executed in Japanese, which shall constitute the only authentic agreement.
		

		
			(13) Mutual consultation
		

		
			In the event of any matter not provided for herein, or questions or doubts about the interpretation of this Agreement, the Borrower and the Loaner shall mutually consult and determine the course of action.
		

		
			 
		

		
			[The remainder of this page is intentionally left blank.]
		

		
			
		

		
			

		 

		

			64

		

		

			 

		

 

IN WITNESS WHEREOF, the parties hereto have prepared one original document of this Agreement to be executed by their representative or his/her agent by affixing their names in print and their seals of approval, the executed original document of which shall be retained by the Loaner for itself and for the Borrower.
		

		
			 
		

		
			 
		

		
			November 30, 2015
		

		
			 
		

		
			 
		

		
			 
		

		
			The Borrower:  UBIC, Inc.
		

		
			 
		

		
			 
		

		
			UBIC, Inc.
		

		
			Meisan Takahama Building, 2-12-23, Konan, Minato-ku, Tokyo, 
		

		
			108-0075 Japan
		

		
			Representative Director   Masahiro Morimoto    [Seal of Approval]
		

		
			 
		

		
			
		

		
			

		 

		

			65

		

		

			 

		

 

The Loaner: Sumitomo Mitsui Banking Corporation
		

		
			 
		

		
			 
		

		
			1-14-10, Higashi Gotanda, Shinagawa-ku, Tokyo, Japan
		

		
			Gotanda Corporate Banking Department, Sumitomo Mitsui Banking Corporation
		

		
			General Manager  Yoshio Hagita [Seal of Approval]
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

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Annex 1
		

		
			 
		

		
			Contact Address of the Parties and Methods of Notification
		

		
			 
		

		
			1. The Borrower
		

		
			 
		

			
					
						The Borrower and its name of department

					
					
						Address

					
					
						Telephone number / 

					
						Facsimile number

				
	
					
						UBIC, Inc.

					
						Treasury Division

					
						 

					
					
						(Postal Code: 108-0075) 

					
						7th Floor, Meisan Takahama Building, 2-12-23, Konan, Minato-ku, Tokyo, Japan

					
					
						+81-3-5463-6344   

					
						 

					
						+81-3-5463-6345

					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			2. The Loaner
		

		
			 
		

			
					
						The Loaner and its name of department

					
					
						Address

					
					
						Telephone number / 

					
						Facsimile number

				
	
					
						Sumitomo Mitsui Banking Corporation

					
						Gotanda Corporate Banking Department

					
					
						(Postal Code: 141-0022)

					
						 

					
						1-14-10, Higashi Gotanda, Shinagawa-ku, Tokyo, Japan  

					
					
						+81-3-3442- 7914

					
						 

					
						+81-3-3443-6617

				

		
			 
		

		
			 
		

		
			3. Methods of notification
		

		
			 
		

		
			(1) All notices hereunder shall be in writing, expressly state such notice is given pursuant to this Agreement, be delivered to the address which the other Party being the receiving Party specifies herein, and use one of the methods specified as follows:
		

		
			 
		

		
			(i) by a delivery by hand and in person
		

		
			 
		

		
			(ii) by a registered postal mail or courier service
		

		
			

		 

		

			67

		

		

			 

		

 

 
		

		
			(iii) by a facsimile transmission; provided that notice of any of the following sent by a facsimile transmission must accompany its authenticated copy delivered to the receiving Party using the method of (i) or (ii) above after each transmission:
		

		
			 
		

		
			(a) notice by the Borrower of the Planned Repayment before Due;
		

		
			 
		

		
			(b) notice given by the Borrower  to the Loaner hereunder that an order of provisional attachment, preservative attachment, or attachment imposed on the loan claim is served upon the Borrower;
		

		
			 
		

		
			(c) registration of the impression of the seal of approval or authorized signature in a format specified by the Loaner; or
		

		
			 
		

		
			(d) any other notices, a delivery of the authenticated copy of which is reasonably requested by the receiving Party.
		

		
			 
		

		
			Each Party hereto may change its contact address by giving the notice of the change of the contact address to the other Party.   
		

		
			 
		

		
			(2) Each notice stipulated in the above paragraph (3) shall be deemed to have been effectively delivered at a time when (i) the receipt is confirmed, for the facsimile transmission, and (ii) the applicable document is actually received, for the other methods.
		

		
			 
		

		
			4. Changes to the matters having been submitted
		

		
			 
		

		
			(1) The Borrower shall give prompt written notice to the Loaner of any changes to its trade name, the name of its representative, its agents, its authorized signature, the impression of its seal of approval, its address, and any other matters it has submitted to the Loaner. The Loaner shall give prompt written notice to the Borrower of any of the aforementioned matters.
		

		
			 
		

		
			(2) In the event of a failure or delay of the notification set forth above, such notice shall be deemed to have been delivered at a time when it would normally be delivered.
		

		
			
		

		
			

		 

		

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Annex 2
		

		
			 
		

		
			Table of Repayment Schedule of the Principal, Table of Interest Payment Schedule
		

		
			 
		

		
			The following shall apply to each Tranche.
		

		
			1.    Repayment Schedule of the Principal of the Loan
		

		
			(1) Tranche A
		

			
					
						 

					
					
						Repayment Date of the Principal

					
					
						Amount of Principal due for Repayment

				
	
					
						The first repayment

					
					
						June 24, 2016

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The second repayment

					
					
						December 24, 2016

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The third repayment

					
					
						June 24, 2017

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The fourth repayment

					
					
						December 24, 2017

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The fifth repayment

					
					
						June 24, 2018

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The sixth repayment

					
					
						December 24, 2018

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The seventh repayment

					
					
						June 24, 2019

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The eighth repayment

					
					
						December 24, 2019

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The ninth repayment

					
					
						June 24, 2020

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The tenth and the final repayment

					
						(Maturity Date)

					
					
						December 24, 2020

					
					
						The entire amount of the principal in the Unpaid Loan Dues in connection with Tranche A

				

		
			 
		

		
			(2)  Tranche B
		

			
					
						 

					
					
						Repayment Date of the Principal

					
					
						Amount of Principal due for Repayment

				
	
					
						The first repayment

					
					
						December 24, 2016

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				

		 

		

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						The second repayment

					
					
						June 24, 2017

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The third repayment

					
					
						December 24, 2017

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The fourth repayment

					
					
						June 24, 2018

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The fifth repayment

					
					
						December 24, 2018

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The sixth repayment

					
					
						June 24, 2019

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The seventh repayment

					
					
						December 24, 2019

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The eighth repayment

					
					
						June 24, 2020

					
					
						Five percent (5%) of the total amount of principal in the Unpaid Loan Dues as at the Loan Drawdown Date

				
	
					
						The ninth and the final repayment

					
						(Maturity Date)

					
					
						December 24, 2020

					
					
						The entire amount of the principal in the Unpaid Loan Dues in connection with Tranche B 

				

		
			 
		

		
			2.  Interest Payment Schedule of the Loan
		

		
			 
		

		
			(1) Tranche A
		

			
					
						 

					
					
						Interest Payment Date

				
	
					
						The first payment 

					
					
						June 24, 2016

				
	
					
						From the second payment to the payment immediately preceding the final payment

					
					
						The same day of the month (before applying the treatment of holidays) as the immediately preceding Interest Payment Date, in the month which is six months from (and including) the month that includes the immediately preceding Interest Payment Date. 

				
	
					
						The final payment

					
					
						The Maturity Date for Tranche A

				

		
			 
		

		
			 
		

		
			(2) Tranche B
		

			
					
						 

					
					
						Interest Payment Date

				
	
					
						The first payment 

					
					
						December 24, 2016

				

		 

		

			70

		

		

			 

		

 

	
					
						From the second payment to the payment immediately preceding the final payment

					
					
						The same day of the month (before applying the treatment of holidays) as the immediately preceding Interest Payment Date, in the month which is six months from (and including) the month that includes the immediately preceding Interest Payment Date. 

				
	
					
						The final payment

					
					
						The Maturity Date for Tranche B

				

		
			 
		

		 

		

			71ubic_Ex4_31

		
			Exhibit 4.31
		

		
			 
		

		
			
		

		
			

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		 

 

		

		
			

		 

 

 
		

		
			(Translation)
		

		
			 
		

		
			 
		

		
			Commitment Term Loan Agreement
		

		
			(One Billion Japanese Yen)
		

		
			 
		

		
			 
		

		
			By and among
		

		
			 
		

		
			 
		

		
			FRONTEO, Inc.
		

		
			As Borrower
		

		
			 
		

		
			 
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
		

		
			As Arranger and Agent
		

		
			For and on behalf of Five Banks:
		

		
			 
		

		
			And
		

		
			 
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd
		

		
			Sumitomo Mitsui Banking Corporation
		

		
			The Bank of Yokohama, Ltd.
		

		
			Mizuho Bank, Ltd.
		

		
			Resona Bank, Limited
		

		
			As Lenders
		

		
			 
		

		
			 
		

		
			Date as of July 26, 2016
		

		
			

		 

 

TABLE OF CONTENTS
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Article1

					
					
						Definitions

					
					
						1

				
	
					
						Article2

					
					
						Lenders’ Rights and Obligations 

					
					
						6

				
	
					
						Article3

					
					
						Use of Proceeds 

					
					
						7

				
	
					
						Article4

					
					
						Application for Several Loan

					
					
						7

				
	
					
						Article5

					
					
						Conditions Precedent to Disbursement 

					
					
						7

				
	
					
						Article6

					
					
						Disbursement 

					
					
						8

				
	
					
						Article7

					
					
						Non-Disbursement Disbursement

					
					
						8

				
	
					
						Article8

					
					
						Indemnification of Lender

					
					
						9

				
	
					
						Article9

					
					
						Additional Costs and Illegality

					
					
						9

				
	
					
						Article10

					
					
						Payment of Principal

					
					
						10

				
	
					
						Article11

					
					
						Interest 

					
					
						10

				
	
					
						Article12

					
					
						Prepayment 

					
					
						10

				
	
					
						Article13

					
					
						Late Payment Charges 

					
					
						11

				
	
					
						Article14

					
					
						Commitment Fee

					
					
						11

				
	
					
						Article15

					
					
						Agent Fee

					
					
						12

				
	
					
						Article16

					
					
						Costs and Expenses, and Taxes and Public Duties 

					
					
						12

				
	
					
						Article17

					
					
						Performance of Obligations by Borrowers 

					
					
						12

				
	
					
						Article18

					
					
						Distribution to Lenders 

					
					
						13

				
	
					
						Article19

					
					
						Rep and Warranty by Borrowers 

					
					
						16

				
	
					
						Article20

					
					
						Affirmation by Borrowers

					
					
						17

				
	
					
						Article21

					
					
						Events of Defaults

					
					
						19

				
	
					
						Article22

					
					
						Offset, Exercise of Security Interest and Voluntary Sale 

					
					
						21

				
	
					
						Article23

					
					
						Coordination between Lenders and Agent

					
					
						22

				
	
					
						Article24

					
					
						Agent’s Rights and Obligations 

					
					
						23

				
	
					
						Article25

					
					
						Resignation or Dismissal of Agent

					
					
						24

				
	
					
						Article26

					
					
						Integration of Intention by Majority Lenders 

					
					
						25

				
	
					
						Article27

					
					
						Changes in Provisions of Agreement 

					
					
						26

				
	
					
						Article28

					
					
						Assignment of Status 

					
					
						26

				
	
					
						Article29

					
					
						Transfer of Lending Claims etc. 

					
					
						27

				

		 

 

	
					
						Article30

					
					
						Collection of Lending Claims from Third Part

					
					
						27

				
	
					
						Article31

					
					
						Termination of Lending Obligations 

					
					
						28

				
	
					
						Article32

					
					
						General Provisions

					
					
						28

				
	
					
						Annexed

					
					
						Table 1 List of Parties Concerned 

					
					
						33

				
	
					
						Annexed

					
					
						Table 2 Repayment Schedule 

					
					
						35

				
	
					
						Exhibit

					
					
						1 Application Form for Borrowing 

					
					
						37

				
	
					
						Exhibit

					
					
						2 Confirmation Documents 

					
					
						38

				
	
					
						Exhibit

					
					
						3 Certification of Receipt

					
					
						39

				
	
					
						Exhibit

					
					
						4 Compliance Report with respect to Collection from third parties 

					
					
						40

				

		
			

		 

 

Commitment Term Loan Agreement
		

		
			 
		

		
			This Specific Term Loan Agreement (hereinafter referred to as the “Agreement”) is made and entered into this 26th day of July, 2016 by and among FRONTEO INC. (hereinafter referred to as “Borrower”), the financial Institutions described in the column of Lenders in Annexed Table 1 attached hereto (hereinafter referred to as “Lenders”), and the Bank of Tokyo-Mitsubishi UFJ, Ltd. as Agent (hereinafter referred to as “Agent”), and the Parties hereto hereby agree as follows:
		

		
			 
		

		
			Article1 Definitions 
		

		
			 
		

		
			1.1 In this Agreement, the following terms have the following meanings, except where the context otherwise expressly requires.
		

		
			1.1.1 “Business Days” means days other than those days which fall under holidays of the bank provided by the laws and regulations of Japan.
		

		
			1.1.2 “Agent service” means all services provided for in the provisions of this Agreement which are engaged to the Agent by all Lenders and performed on behalf thereof.
		

		
			1.1.3 “Agent Account” means the checking account which the Agent holds in the Operation Department in Tokyo of the Bank of Tokyo-Mitsubishi UFJ, Ltd. (hereinafter referred to as “UFJ”) (Account number: 0041097, Type of the Account: UFJ Syndicate Loan Account,) or any other account which Agent indicates from time to time and informs to Borrower or Lenders.
		

		
			1.1.4 “Agent Fee” means the charges which shall be paid by Borrower to Agent after being separately agreed between Borrower and Agent.
		

		
			1.1.5 “Parent Company”, “Subsidiary Company” and “Affiliates” mean the meanings defined in Article 8 of the Rules relating to the terms of the Financial Statements and forms and making-ways thereof.
		

		
			1.1.6 “Each Lending” means the meaning defined in Article10, 1.1 hereof.
		

		
			1.1.7 “Unpaid Each Lending Amount” means all kinds of money which shall be borne by Borrower including principals, interests, late payment charges, liquidation amount relating thereto, and all other money, the obligations of which shall be borne by Borrower based on the Agreement.
		

		
			1.1.8 “Each Several Lending” means Lending disbursed by each Lender based on one and the same Application form for Borrow.
		

		
			1.1.9 “Each Several Lending Disbursement” means the money to be lent by Lender as Each Several Lending to Borrower, and “Each Several Lending Amounts” means the amount of the Each Several Lending Disbursement (such amount shall be the amount obtained by multiplying the Amount of Several Lending relating to the application form by the participation rate of such Lender, provided, however, in case the amount of the Several Lending relating to the Application Form for Lending is equivalent to the total amount of Unused Lending Limits of all Lenders, the amount of such Lending shall be the amount equivalent to the amount of the Unused Lending Limit of such Lender).
		

		
			1.1.10 “Unpaid Each Several Lending Amount” means all the money which shall be liable for payment by borrower including principals relating to the Each Several Lending, interests, late payment charges, liquidation amounts, and any and all obligations based on this Agreement. 
		

		
			1.1.11 “Lending Obligations” means Lenders’ obligations to lend the money to Borrower as provided for in Article2.2.1 of this Agreement.
		

		
			1.1.12 “Amount of Lending Limit” means the amount described in such Lender’s column of the “Amount of Lending Limit” in Annexed Table1 attached hereto (provided, however, in case the Amount of Lending Limit is revised in accordance with the provisions of Article2.5, the revised provisions shall apply). 
		

		
			1.1.13 “Lending Claim” means credit relating to the Each Several Lending (provided, however, in case of the Several Lending Integrating Date and thereafter, Each Lending shall apply).
		

		
			1.1.14 “Term Impossible for Lending” means the term from the day on which Borrower has received the 

		 

 

notice provided in Article8.1 (inclusive) to the other day on which Borrower receives the notice provided in Article 8.2 (inclusive).
		

		
			1.1.15 “Event Impossible for Lending” means events which shall be determined by the majority of Lenders as the event Impossible for Lending (in case the majority of Lenders cannot integrate the intention thereof, Agent shall apply) within the following events:
		

		
			(1) Outbreak of natural disaster・war・terrorist attack
		

		
			(2) Stoppage and trouble in electrical・communicating and other kinds of settlement system
		

		
			(3) Event of Tokyo interbank market where debt-credit transaction in Japanese currency can’t be traded, and 
		

		
			(4) Other events which shall not be liable to Lenders
		

		
			1.1.16 “Application form for Borrowing” means the application documents in the form described in Exhibit1 attached hereto.
		

		
			1.1.17 “Base Period” means one month in case interest calculation period starts on the interest payment day and ends also on the other payment day, with respect to the other interest calculation period, in case such interest calculation period is one month, one month shall apply, in case such interest calculation period is more than one week and less than one month, period of one week or one month corresponding to higher rate of the Japanese TIBOR (on the page of 17097 of Telerate or succeeding page thereof) disclosed by the operational institute of the ZENJINKYO Tokyo Inter Bank Offered Rate at 11:00 a.m. or at the time closest to the 11:00 a.m. after thereof as much as possible on the day 2 days before the starting day of such interest rate calculation period, the period with such higher rate shall apply, and in case such interest rate calculation period is less than one week, one week shall apply.
		

		
			1.1.18 “Base Rate” means the rate corresponding to the base period relating to such interest rate calculation period within Japanese Currency TIBOR (on the page of 17097 of Telerate or succeeding page thereof) displayed by the operational institute of the ZENJINKYO Tokyo Inter Bank Offered Rate at 11:00 a.m. or at the time closest to the 11:00 a.m. after thereof as much as possible on the day 2 days before the starting day of such interest rate calculation period. Provided, however, in case such rate cannot be disclosed due to some unknown causes, the rate that the Agent determines reasonably as the offered rate of debt-credit transaction in Japanese currency of the period corresponding to the Base Period relating to such interest rate calculation period (expressed as annual rate) in the Tokyo Interbank Market at 11:00 a.m. or at the time closest to 11:00 a.m. and prior thereto on the day two (2) business days before the starting day of such interest rate calculation period. In case there is no period corresponding to such interest rate calculation period within the period of Japanese Currency TIBOR (on the page of 17097 of Telerate or succeeding page thereof) displayed by the operational institute of the ZENJINKYO Tokyo Inter Bank Offered Rate, the rate reasonably determined by the Agent (expressed as annual rate) shall apply. In addition, in case the rate provided for in this Item is less than 0%, 0% shall apply.
		

		
			1.1.19 “Date of Repayment before Maturity” means the date described in the column of “Date of Repayment” in Annexed Table 2 Repayment Schedule attached hereto (provided, however, except for the Maturity Date, and in case such repayment day does not fall under any business day, the immediately next business day shall apply, if such next business day falls under the day which belongs to the next month, the business day prior to such repayment day shall apply.
		

		
			1.1.20 “Financial Statement” means the meaning provided in any one of items (1) to (4) below: 
		

		
			(1) Financial Statements relating to each fiscal year provided for in Paragraph2 of the Company Law, Article435 (including balance sheet and profit and loss statement provided for in the same Paragraph, and statement of shareholders’ equity and notes to specification provided for in Paragraph 1of Company Accounting Rules,) and Business reports;
		

		
			(2) Actually prepared provisional financial statements provided for in Paragraph1 of the Company Law, Article441(i.e. profit-and-loss statement relating to the period from the starting day to provisional closing day of fiscal year in which balance sheet and such closing date belong as defined in the same paragraph);
		

		
			(3) In case consolidated financial statements relating to each fiscal year provided for in the Company law, Article444, Paragraph3 pursuant to the same Law, Paragraph1 (consolidated balance sheet, consolidated 

		 

 

profit-and-loss statement, consolidated statement of shareholders’ equities and consolidated notes to specific items provided for in Company Accounting Rules, Article 66, the same shall apply hereafter) are obligated to prepare, such consolidated financial statement and actually prepared consolidated financial statement relating to each fiscal year provided for in Paragraph1 of the Company Law, article 444; and 
		

		
			(4) Actually prepared consolidated and single balance sheet, profit-and loss statement, statement of shareholders’ equities and notes to specific items.
		

		
			1.1.21 “Taxes and Other Public Duties” means all taxes and other public duties imposed in Japan such as, income taxes, corporation taxes, and other taxes etc.
		

		
			1.1.22 “Several Lending Integration Day” means the first arriving interest payment day after the Due Date.
		

		
			1.1.23 “Starting Day of Commitment” means July 29th, 2016.
		

		
			1.1.24 “Period of Commitment” means the period from the starting day (inclusive) to ending day (inclusive) of such Commitment.
		

		
			1.1.25 “Due Date” means July 28th, 2017 (in case such day falls under those other than business day, the immediately preceding business day shall apply).
		

		
			1.1.26 “Commitment Fee” means charges paid by Borrower to Lender as the consideration of Lending obligations. 
		

		
			1.1.27 “Calculation period of Commitment Fee” means the period from the Commitment starting day (inclusive) until the Commitment ending day (inclusive) of the Commitment. Provided, however, in case any Lender’s obligation relating to such Lender terminates prior to the ending day of the Commitment Period, the Commitment Fee Calculation Period relating to such Lender shall terminates on such termination day.
		

		
			1.1.28 “Rate of Commitment Fee” means annual rate of 0.2%.
		

		
			1.1.29 “Participation Rate” means the rate of the principal balance of such each Lender’s each Lending amount to the amount of the Principal Balance of such Lending (provided, in case of the day prior to the Several Lending Integration Day, the total amounts of Each Several Lending shall apply). Provided, however, until the day on which all Lenders’ Lending obligations shall have been terminated, the said Rate means the rate of such Lender’s amount of Lending Limit to the total amounts of Lending Limit.
		

		
			1.1.30 “Wishing Disbursement Day” means the business day described by Borrower in the application form for Borrowing as the wishing day on which Borrower wishes the disbursement of the Several Lending within the Commitment Period.
		

		
			1.1.31 “Disbursement Day” shall be the day on which such Several Lending has been performed.
		

		
			1.1.32 “Due Date for Repayment” means, in case the due date is provided for in the Agreement, 10:30 a.m. of such due date.
		

		
			1.1.33 “Syndicate Account” means the ordinary deposit Account held by Borrower in Shinagawa Ekimae Branch of UFJ (Account No: 2034628, Name of the holder of the Account: FRONTEO Inc.), or the Account in UFJ head office or branch thereof, opened by Borrower and approved by the Agent.
		

		
			1.1,34 “Spread” means an annual rate of 0.45%.
		

		
			1.1.35 “Liquidation Amount” means, in case the repayment or offset of the Principal of Each Several Lending is performed on the day which does not fall under any of Interest Payment Day and such repayment or offset rate is less than the applied rate of the Interest Calculating Period to which such repayment or offset day belongs, the amount obtained by multiplying the amount of Principal by the balance of the applied rates in such Interest calculation period and such rates to be applied again, and also by actual number of days of the remaining period. Provided, however, such Amount must be within legality.  The “Remaining Period” shall be the period from the day on which such repayment or offset is performed to the next interest payment date. The “Rate to be applied again” shall be the Rate designated by the Agent reasonably for the hypothetical purpose of investment again in the Tokyo interbank market during the Remaining Period. The amount of Liquidation shall be calculated per diem basis a year being 365 days and division thereof shall be performed in the last rounding off the amount less than one (1) yen. In addition, the calculation of number of days of a certain period shall include the first day of such period, but exclude the last day thereof.
		

		
			

		 

 

1.1.36 “All Lenders” shall be referred to as all Lenders collectively at the time prior to the first disbursement, and as all Lenders collectively but having claim right for unpaid amount of Each Several Lending (provided, after the Several Lending Integration day (inclusive), unpaid amount of Each Lending shall apply) at the time after the first Disbursement of Several Lending.
		

		
			1.1.37 “Total Amount of Lending Limit” means the total amount of Lending Limits of all Lenders.
		

		
			1.1.38 “Additional Costs” means the increased amount of Lending Costs (reasonably calculated by such Lender), in case of (1) enactment, abolition or revision of Laws and Regulations, or change of Interpretation thereof or the Operation, (2) preparation or increased amount of Reserved Money, or (3) increased amount of Lending Costs due to the change of Accounting Regulations or Operation thereof, (provided, however, except for the case of increase due to the change of tax rates of such Lender).
		

		
			1.1.39 “Lenders with increased Lending Costs” means Lenders whose Lending Costs have increased.
		

		
			1.1.40 “Total Amount of Unused Lending Limits” means the Total Amounts of Unused Lending Limit of all Lenders.
		

		
			1.1.41 “Damages etc.” means damages, loss, and cost and expenses (including attorney’s fee).
		

		
			1.1.42 “Majority of Lenders” means singular or plural Lender or Lenders whose Participation Rates account for not less than 66.7% at the Standard time for the Integration of Intentions. For the purpose of clarification, “Standard Time for the Integration of Intentions” shall be the time when the Agent has received the notice based on Paragraph1, Item 1 of Article26, in case a certain Lender determines the event has occurred in which the Majority of Lenders’ Designation is necessary, or the time the Agent has sent the notice based on Paragraph2 of Article 26 in case the Agent determines the event has occurred in which the Majority of Lenders’ Designation is necessary.  
		

		
			1.1.43 “Advance Cost” means the amount obtained by multiplying the amount paid in advance for someone by interest rate for fund-raising and the actual number of days during which such amount paid in advance remains un-repaid in case of the Advance Costs incurred by the Agent. For the purpose of clarification, the “Period of Advance Costs” shall be the period from the day on which the Agent has paid in advance for someone to the day on which the Agent receives such amount relating to the amount paid by Agent in advance, and the “Interest Rate for fund-raising” shall be the interest rate reasonable decided by the Agent for the fund raising through the Period of Advance Costs. The amount of Advance Cost shall be calculated per diem basis a year being 365 days and division thereof shall be performed in the last and rounded off the amount less than one (1) yen. In addition, the calculation of number of days of a certain period shall include the first day of such period, but exclude the last day thereof.
		

		
			1.1.44 “Advance Payment for Someone” means the act with respect to the repayment by Borrower on the Repayment Day, of the disbursement of amount by the Agent equivalent to the amount to be distributed to Lenders in accordance with Article 18, Paragraph1~5 prior to the completion of repayment by Borrower. Provided, however, Borrower and Lender shall not raise an objection at all.
		

		
			1.1.45 “Qualified Assignees” means being Lenders on the day on which this Agreement is executed, Bankers with license under the Banking Act of Japan and the Long-term Credit Bank Law, Lifetime Underwriter or Non-life Underwriter with License based on the Insurance Business Act, Shinkin Bank, Shinkin Central Bank, Rokin Bank, Federation of Rokin Banks, Federation of prefectural Shinnokyo, Norin Central Bank, Shinkyo Cooperation, National Federation of Shinkyo Cooperation, National Federation of Kyosai-Nokyo Cooperation, Shokokumiai central Bank, Trust Company based on the Trust Business Act and Money Lending Company registered based on Paragraph1 of Article 3 of Money Lending Business Act.
		

		
			1.1.46 “Applied Interest Rate” means the interest rate obtained by adding the spread to the Base Interest Rate.
		

		
			1.1.47 “Due Date” means the Repayment Date during the term and the Maturity Date with respect to the Principal relating to the Lending, Each Payment Date as the Ending day of the Each Interest Calculation Period with respect to the Interest, and the Date designated as the date on which any amount shall be paid in accordance with the Agreement with respect to any other Money.
		

		
			

		 

 

1.1.48 “Reporting Documents” means reporting documents such as Annual Securities Reports, Semi-annual Securities Reports, Quarterly Securities Reports, Extraordinary Reports, and Amendment Reports, etc.
		

		
			1.1.49 “Laws and Regulations” means Treaties, Laws, Regulations, Cabinet Orders, Ministerial Decrees, Rules, Judgment, Decisions, Arbitral Awards, Notification, and Policies of the relevant Authorities.
		

		
			1.1.50 “Lending” means the Whole of Each Lending.
		

		
			1.1.51 “Several Lending” means the Whole of Each Several Lending that shall be disbursed on the same Disbursement Day.
		

		
			1.1.52 “Maturity Date” means July 29th, 2022 (Provided, in case such day falls under the day other than the Business day, the next succeeding business day unless such day would fall in the next calendar month, in which case, such due date shall be the immediately preceding business day).
		

		
			1.1.53 “Unused Amount of Lending Limit” means the amount obtained by reducing the total amount of the Each Several Lending Amount disbursed from such Lender’s amount of Lending Limit with respect to Each Lender (including the amount prepaid).
		

		
			1.1.54 “Assignee” means an assignee who shall be assigned the Lending Claim in accordance with Paragraph1 of Article 29.
		

		
			1.1.55 “Assignor” means an assignor who shall transfer the Lending Claim in accordance with Paragraph1 of Article 29. 
		

		
			1.1.56 “Interest Calculation Period” means the first period shall be the period from the Disbursement Day of such Several Lending to the first Interest Payment Day. After the second period (inclusive) such Calculation Period shall be the period from the precedent Interest Payment Day to the immediately next Period with respect to Each Several Lending (provided, after Several Lending Integration Day (inclusive), Each Lending shall apply).
		

		
			1.1.57 “Interest Payment Day” means the payment day of the interest, which shall be the ending day of each month and Maturity Day during the period from the next day of the First Disbursement Day to the Maturity Day (Provided, in case such day falls under the day other than the Business day, the next succeeding business day unless such day would fall in the next calendar month, in which case, such due date shall be the immediately preceding business day).
		

		
			 
		

		
			1.2 For the purpose of this Agreement, One-Month Period shall be the Period in which the calculation starting day is the Starting Day (inclusive) and the day corresponding to the starting day of the next calendar month of the month to which such Starting Day belongs is the Ending Day (inclusive), in case of integral multiple months such period shall be calculated by the way mentioned above, in mutatis mutandis (provided, in case such corresponding day falls under the day other than the Business day, the next succeeding business day shall apply unless such day would fall in the next calendar month, in which case, such due date shall be the immediately preceding business day). Provided, however, in case the calculation starting day is the last business day of the month, the ending day of such period shall be the last business day of the month in which such corresponding day belongs, and the corresponding day of the calculation starting day does not exist in the calendar month in which such period should be terminated, the last business day in such month shall be the ending day of such month.
		

		
			 
		

		
			1.3 In this Agreement the period of one week shall be the period in which calculation starting day is the Starting Day (inclusive) and the ending day of the period is the corresponding week day of the next week (inclusive) (provided, in case the corresponding week day falls under any day other than the business day, the next business day shall be the ending day whether such business day is in the next month whatsoever.
		

		
			 
		

		
			Article2 Rights and Obligations of Lender
		

		
			 
		

		
			2.1 Unless otherwise specifically provided, Lender may severally and independently execute the rights under the Agreement.
		

		
			 
		

		
			

		 

 

2.2 Lender shall lend the money within the amount of Lending limit.
		

		
			 
		

		
			2.3 Except for the case otherwise is separately provided in the Agreement, Lenders’ obligations hereunder shall be several and independent and Lender cannot be relieved from the performance of its obligations hereunder due to the cause that the other Lender does not perform the obligation thereof. In addition, the Lender shall not be completely liable for the fact that other Lender doesn’t perform any obligations hereunder.
		

		
			 
		

		
			2.4 In case Lender violates the Lending Obligations and doesn’t perform the Disbursement of Each Several Lending relating to such wishing disbursement day on any Wishing Disbursement Day, such Lender shall immediately compensate for damages incurred by Borrower upon the request of such Borrower. Provided, however, such compensation amount incurred by Borrower shall be obtained by reducing the amount of interests and other costs which such Borrower has expensed during the period from such Wishing Disbursement day (inclusive) to the First Interest Payment Day (exclusive) in case such Each Several Lending is disbursed on such Wishing Disbursement Day from amount of interest and other costs which Borrower has expensed or would be needed during the period from such Wishing Disbursement day (inclusive) to the First Interest Payment Day (exclusive) in case such Borrower has borrowed separately due to the cause such Lending is not disbursed on such Wishing Disbursement Day, and such compensation amount shall be limited to maximum amount of such obtained amount.
		

		
			 
		

		
			2.5 Borrower may make Lender terminate any and all Lending Obligations or reduce the part of the amount of Lending Limit within the unused total amount of Lending Limit by giving ten business days Notice to the Agent during the Period of Commitment. In case of reducing part of the total amount of Whole Lending Limit, the amount to be reduced shall be not less than 50 million yen (\50,000,000) and integral multiple thereof, and shall be the amount less than that of Whole Unused Lending Limit. In case the part of the amount of Whole Lending Limit is reduced, the amount to be reduced of Lenders’ Lending Limit shall be reduced the amounts of Each Several Lending Limit in proportion to the Participation Rate. In case the Agent receives such notice from Borrower, it shall notify Lender thereof without delay. Borrower cannot cancel such notice and the termination of the whole Lending Obligations or reducing the part of the amount of whole Lending Limit and which become effective on the day on which Borrower wishes thereof in such notice. 
		

		
			 
		

		
			Article3 Use of Proceeds
		

		
			 
		

		
			Borrower shall use the money which has been raised through the Several Lending only for operating funds. 
		

		
			For the purpose of clarification, The Agent and Each Lender shall not be liable to supervise or review 
		

		
			Borrower with respect to the actual use of proceeds
		

		
			 
		

		
			Article4 Application of Several Lending
		

		
			 
		

		
			4.1 In case Borrower wishes the disbursement of the Several Lending, it is necessary for Borrower to express its intention of application for the Several Lending to all Lenders by submitting the Application form for Borrowing to the Agent by the noon of three business days before the Wishing Day of Disbursement. The submission of the application form shall be performed by sending Facsimile and confirming the receipt thereof through the telephone.
		

		
			 
		

		
			4.2 The amount of the Several Lending described in the Borrowing Forms shall be not less than 50 million yen with one unit of 10 million or the total amount of Unused Lending Limit, and the amounts of Each Several Disbursement which may be obtained from the amount of such Several Lending shall not exceed the amount 

		 

 

of unused Lending Limit of Lender on the Wishing Disbursement Day described in the Application Form for Borrowing.
		

		
			 
		

		
			4.3 The number of Disbursement of the Several Lending on the same Wishing Disbursement Day shall be not more than one.
		

		
			 
		

		
			4.4 Expressing Intention of Application Form for the Several Lending based on Paragraph1 of this Article has become effective with having relations with all Lenders at the time when the Agent has received the Application Form. For the purpose of clarification, after the receipt of the Application Form for Borrowing by the Agent, Borrower cannot cancel or change the Application Form based on Paragraph1 of this Article in the relation with any Lender whatever the reason, if any. In case the Agent has received the Application Form for Borrowing, such Agent shall notify all lenders of the fact of Application for the Several Lending by Borrower and contents thereof by sending the copy of the Application Form for Borrowing at least 3 business days before the Wishing Disbursement Day. 
		

		
			 
		

		
			Article5 Conditions Precedent of Each Several Lending
		

		
			 
		

		
			Each Lender shall perform the Disbursement relating to the Wishing Disbursement Day subject to the satisfaction of the conditions precedent set forth in the following Items on each Wishing Disbursement Day (provided, however, regardless the notice based on Paragraph1 of Article7). For the purpose of clarification, the satisfaction of the Conditions Precedent shall be performed with each Lender, and other Lenders and the Agent shall not be liable for the other Lenders’ satisfaction: 
		

			
	
			
				 1)
			

			
	
			
			The Application for the Several Lending meets the conditions set forth in Paragraph1~3 of the precedent Article.

			
	
			
				 2)
			

			
	
			
			The Lending Obligations of all Lenders shall not be indemnified pursuant to Paragraph3 of Article8.

			
	
			
				 3)
			

			
	
			
			All matters described in each Items of Article19 are true and correct.

			
	
			
				 4)
			

			
	
			
			Borrower doesn’t violate any provision of this Agreement and there are no possibility that Borrower violate any provision hereof after such Wishing Disbursement Day.

			
	
			
				 5)
			

			
	
			
			Borrower submits all of the following documents to the Agent on the day on which this agreement is executed, and the Agent and all Lenders are satisfied with the contents thereof.

			
	
			
				 (i)
			

			
	
			
			The certificate of registered seal impression of the representative of Borrower who will affix and sign on the Agreement (provided, such certificate is issued within three (3) months prior to the execution of this Agreement).

			
	
			
				 (ii)
			

			
	
			
			The copy of register of commerce or the certified copy of whole superseded & current entries of registration of Borrower (provided, such certificate is issued within three (3) months prior to the execution of this Agreement).

			
	
			
				 (iii)
			

			
	
			
			Notification of Borrower’s seal impression and its signature by the prescribed Form by the Agent.

			
	
			
				 (iv)
			

			
	
			
			The Confirmation documents by the form set forth in Exhibit2 attached hereto (Documents which certificates the completion of all procedures necessary for the Borrowing based on the execution of this Agreement, in accordance with laws and regulations and company rules of Borrower, shall be attested by the authorized executive.

			
	
			
				 6)
			

			
	
			
			The Lending Obligations of such Lender are not terminated by any provision of this Agreement.

		
			 
		

		
			Article6 Disbursement of Several lending
		

		
			 
		

		
			6.1 In case Lender accept the Application for the Several Lending in accordance with Article4, doesn’t give any notice based on Paragraph1 of Article7, and the conditions provided for in each Item of the Precedent Article is satisfied on each Wishing Disbursement Day, Lender shall remit the amount of Each Several Lending as Disbursement relating to the Wishing Disbursement Day to the syndicate account on such Wishing Disbursement Day (provided, however, Lender shall have completed the Bank-transfer procedures to the syndicate account by 11:00 a.m. on such Wishing Disbursement Day). At the time when Lender has 

		 

 

completed the remittance of the amount of Each Several Lending to the syndicate account, Each Several Lending relating to the Wishing Disbursement Day with respect to such Lender shall be deemed to be disbursed. 
		

		
			 
		

		
			6.2 In case the Disbursement of Several Lending is performed based on the precedent Paragraph, Borrower shall promptly send to Lender which has performed the disbursement of Each Several Lending, the receipt in the form prescribed in Exhibit3 attached hereto stating the amount of Several Lending and the details of Each Several Lending in the form prescribed in Exhibie3 attached hereto. In addition the Agent shall hold the original receipts for such Lenders until such Agents are repaid all of the un-repaid amount of Each Several Lending relating to such Each Several Lending (provided, on the Integration Day and thereafter, Un-repaid Each Lending Amount).
		

		
			 
		

		
			Article7 Non-disbursement of Each Several Lending
		

		
			 
		

		
			7.1 Lender which has decided to refrain from disbursement of Each Several Lending (hereinafter referred to as “Lender of Non-disbursement) due to the cause that all or part of conditions set forth in Article5 is not satisfied, such Lender of Non-disbursement may notify the Agent, Borrower and all of other Lenders to that effect by 17:00 p.m. on the precedent business day of Wishing Disbursement Day relating to such Each Several Lending. Provided, however, even though all conditions set forth in Article5 is satisfied, if such notice is given and such Each Several Lending is not disbursed, such Lender of Non-disbursement shall not be relieved from the responsibility for Violation of Lending Obligations.
		

		
			 
		

		
			7.2 In case the Agent or Lender of Non-disbursement is incurred damages due to the cause that Each Several Lending couldn’t been disbursed by Lender of Non-disbursement, Borrower shall bear such damages; provided, however, unless non-disbursement of such Each Several Lending falls under the violation of Lending Obligations by such Non-disbursement Lender.
		

		
			 
		

		
			Article8. Indemnification of Lender
		

		
			 
		

		
			8.1 In case of occurrence of lending-impossible event, the Agent shall promptly give the notice in writing to that effect to Borrower and all Lenders.
		

		
			 
		

		
			8.2 In case Majority of Lenders (if it is difficult for Majority of Lenders concentrate their intentions, the Agent shall apply) determine that such Lending-impossible Event is resolved after giving notice set forth in precedent Paragraph, the Agent shall promptly inform to the effect that such Lending-impossible Event is resolved to Borrower and all Lenders.
		

		
			 
		

		
			8.3 During such Lending-impossible Term, the Lending Obligations of all Lenders shall be relieved.
		

		
			 
		

		
			Article9 Additional Costs and Illegality
		

		
			 
		

		
			9.1 Lenders with Additional Costs occurred may request Borrowers the burden of Additional Costs by giving notice in writing to Borrower through the Agent, in case of such request, Borrower shall pay such Additional Costs to such Lender with Additional costs occurred.
		

		
			 
		

		
			9.2 In case of request set forth in the precedent Paragraph, Borrower, by giving notice to the Agent and all Lenders, make such Lender with additional costs occurred terminate such Lending Obligation if such 

		 

 

Lending Obligations of the same Lender does not terminate thereof, and may make Prepayment of all amount of such Principal Balance if any Principal Balance of the Each Several Lending (provided, Several Lending Integration Day and thereafter Each Lending shall apply) of such Lender with Additional Costs occurred exists, on the day described in the notice given by Borrower (provided, however, such day shall be the day not less than 10days after such notice, and hereinafter referred to as “Terminating Lending Obligation and Additional Costs Prepayment Wishing Day”). In this case, if the Lending obligation of such Lender with Additional Costs occurred is not terminated and the Principal Balance of Each Several Lending of such Lender with Additional Costs occurred exists, it is not approved that Borrower wishes only one option from 2) Termination of Lending Obligations of such Lender with Additional Cost occurred or 2) Prepayment of Each Several Lending of Lender with Additional Costs occurred.
		

		
			 
		

		
			9.3 In case the notice set forth in Paragraph 1 is given by Borrower, the Lending Obligations of such Lender with Additional Costs occurred will be cancelled on the Terminating Lending Obligation and Additional Costs Prepayment Wishing Day. In such case Borrower shall pay Lender with Additional Costs occurred all amount of Principal Balance of all debts owed by Borrower to Lender with Additional Costs occurred based on the Agreement (all Each Several Lending the Repayment Due Date of which arrives after the next day of such Terminating Lending Obligation and Additional Costs Prepayment Wishing Day (provided, after Several Lending Integration Day, Each Lending shall apply), interests occurred until the Terminating Lending Obligations and Additional Costs Prepayment Wishing Day (inclusive) and the liquidation money notified by Lender with Additional Costs occurred (if any), and including requested burden of Additional Costs), on the Terminating Lending Obligation and Additional Costs Prepayment Wishing Day in accordance with the provisions of Article17.
		

		
			 
		

		
			9.4 In case the execution and performance and succeeding transaction of this Agreement violates any of the laws and regulations which binds any Lender, such Lender, by giving notice to that effect to Borrower through the Agent, 1) may terminate the Lending Obligations on the immediately precedent day on which such performance is deemed illegal if the fund raising for keeping of the Lending Obligations or Disbursement of Each Several Lending or planning thereof is deemed illegal, and 2) may request Borrower the repayment of all amount of Unpaid Each Several Lending (provided, Several Lending Integration Day and thereafter, such Each Lending) of Each Several Lending (provided, Several Lending Integration Day and thereafter, such Each Lending) by deeming that the Repayment Due Date of such Each Several Lending (provided, Several Lending Integration Day and thereafter, such Each Lending) has arrived on the immediately precedent day of the day on which Borrower’s performance is deemed illegal (provided, in case Repayment due date is provided by the laws and regulations, the day provided by the laws and regulations) if keeping of already disbursed Each Several Lending (provided, Several Lending Integration Day and thereafter, such Each Lending) is deemed illegal on Repayment Due Date or before relating to Each Several Lending (provided, Several Lending Integration Day and thereafter, such Each Lending). 
		

		
			 
		

		
			Article10 Repayment of Principal
		

		
			 
		

		
			10.1 With respect to Each Lender, all of Each Several Lending shall become one single Lending (hereinafter referred to as “Each Lending”) on the Each Several Lending Integration Day.
		

		
			 
		

		
			10.2 Borrower shall repay the amount obtained by dividing the amount of Principal at the time of Several Lending Integration Day equally by 60 (in case there are any fraction, such fractions shall be rounded off less than one yen, and the Repayment amount of Principal on the Maturity Date shall be the amount obtained by reducing the total amount repaid on every Repayment Day from the total Repayment Amount of the Principal) to all Lenders relating to the Lending on the Repayment Day during the term and the Maturity day in accordance with the Repayment Schedule described in Annexed Table2 attached hereto based on the provision of Article17. The amount to be repaid to each Lender on each Repayment Day shall be the Amount 

		 

 

obtained by dividing the amount of Principal in proportion to the Participation Rate on the Several Lending Integration Day with respect to all Lenders, and The amount repaid to each Lender on the Maturity date shall be each amount of Principal Balance of each Lender on the Maturity Date.
		

		
			 
		

		
			Article11 Interest
		

		
			 
		

		
			11.1 Borrower shall pay each Lender each total amount of Interest obtained by multiplying the un-repaid amount of Principal of Each Several Lending (Several Lending Integration Day and thereafter, Each Lending) by the Applied Interest rate during the Interest Calculation Period and actual number of days of the Interest Calculation Period on the Interest Payment day of the last day of the Interest Calculation Period in accordance with the provisions of Article17.
		

		
			 
		

		
			11.2 The Calculation Method of Interest shall be on a per diem basis in which the Fast day of any period will be included, but the Last Day thereof excluded being 365days per year. And dividing shall be the last calculation rounding off fractions less than one yen.
		

		
			 
		

		
			Article12 Prepayment
		

		
			 
		

		
			12.1 Borrower must not repay all or part of the amount of the Principal of the Lending (provided, in case of before the Several Lending Integration Day, Several Lending) which shall be repaid on any of Principal Repayment Day or the Maturity Day before such day (hereinafter referred to as “Prepayment”), unless Borrower obtained the approval in writing of the Agent and all Lenders in advance in case of being based on Article9 or in accordance with the following procedures.
		

		
			 
		

		
			12.2 In case of wishing of Prepayment, Borrower shall notify the following matters mentioned below in writing to the Agent at least 15 business days before the day on which Borrower wishes as the Prepayment Day (hereinafter referred to as the “Wishing Prepayment Day”):
		

		
			(i) The amount of Principal (such amount must be all amount of Principal Balance of such Several Lending (provided, Several Lending Integration Day and thereafter, Lending) or not less than 50 million yen and unit of 10 million yen. In case the amount of Principal of such Several Lending (provided, Several Lending Integration Day and thereafter, Lending ) is not the all amount of Principal Balance, such amount shall be prepaid to such Lender in proportion to each rate of Principal Balance of the Several Lending (provided, Several Lending Integration Day and thereafter, Lending) relating to such Several Lending) of the Several Lending (provided, Several Lending Integration Day and thereafter, Lending), (ii) to the effect that Borrower will prepay all of the interest accrued until the Wishing Prepayment Day (inclusive) (hereinafter referred to as “Accrued Interest”) with respect to Principal amount which Borrower wishes Prepayment, and (iii) the Wishing Prepayment Day. The Agent shall promptly notify the matters described in this Paragraph (i)~(iii) to all Lenders and such Lenders shall notify consent or refusal of the Prepayment to the Agent at least 10 business days before the Wishing Prepayment Day. For the purpose of clarification if such consent or refusal notice is not delivered to the Agent at least 10 days before the Wishing Prepayment Day, such Lender shall be deemed as refusal thereof. The Agent shall determine consent or refusal of Prepayment at least 8 business days before the Wishing Prepayment Day and notify thereof to Borrower and all Lenders.
		

		
			 
		

		
			12.3 In case the Prepayment is approved in accordance with the precedent Paragraph, and if the Wishing Prepayment Day is the day other than Interest Payment Day, all Lenders shall notify the amount of Liquidation Money to Borrower and the Agent at least 2 business days before the Wishing Prepayment Day. Borrower shall pay the total amount of the Principal and Interest of the Several Lending (provided, on the 

		 

 

Several Lending Integration Day and thereafter, Lending), and Liquidation Money (if any) on the Wishing Prepayment Day in accordance with the provision of Article17. For the purpose of Clarification, even if such Prepayment is performed, each Lenders’ Lending obligations relating to Each Several Lending the Disbursement Day of which arrives thereafter are not affected at all.
		

		
			 
		

		
			12.4 In case Part of Principal of the Lending is prepaid based on the provisions of this Article, the Principal with later Prepayment Day is applied with priority.
		

		
			 
		

		
			Article 13 Late Payment Charges
		

		
			 
		

		
			13.1 In case Borrower delays in performing the debt to Lender or Agent under the Agreement, Borrower shall promptly pay the amount of Late Payment Charges obtained by multiplying the amount of debts of late performance by annual rate of 14% (so long as observing laws and regulations) with respect to the period from the day on which Borrower shall perform the debt (inclusive) to the day on which such late performance of debt (hereinafter referred to as the “Debt of Late Performance”) is completely performed (inclusive), in accordance with the provisions of Article17, upon the request of Agent.
		

		
			 
		

		
			13.2 Calculation Method of Late Payment Charges shall be per diem basis and including the First and the last day of a certain period being 365 days per year, and Dividing the number is performed in the Last, rounding off fractions less than one yen.
		

		
			 
		

		
			Article14 Commitment Fee
		

		
			 
		

		
			14.1 Borrower shall pay Lender as the amount of Commitment Fee obtained by multiplying the average balance of unused amount of Lending Limit of such Lender by the Rate for Commitment Fee with respect to the Commitment Fee Calculation Period on the day designated by the Agent within 5 business days from the ending day of the Commitment to Borrower and all Lenders. In case of the performance of Each Several Lending or the change of the amount of Lending limit in accordance with the provisions of Paragraph 5 of Article 2, each unused amount of Lending Limit of such Lender on the day on which such Lending or change is performed shall be each Unused Amount of Lending Limit changed due to such performance or changes. The calculation of the Commitment Fee by the Agent shall be definite and binding as far as there are no clear mistakes.
		

		
			 
		

		
			14.2 Notwithstanding the provision of the precedent Paragraph, in case Lending Obligations of all Lenders in accordance with the provisions of Paragraph 1 of this Article, Borrower shall not be liable to all Lenders for Payment of Commitment Fee corresponding to the Lending Impossible Period.
		

		
			 
		

		
			14.3 Notwithstanding the provisions of Paragraph1 of this Article, in case any Non-bank Lender’s (hereinafter referred to as “Non-bank Lender” registered based on the Money Lending Business Act, Article3, Paragraph1, the same shall apply hereafter) interest rates (expressed by percentage point) that can be obtained by the following formula exceeds as annual rate of 15% on the ending day of the Commitment Fee Calculation Period, Borrower shall not be liable to pay the amount of the Interest corresponding to the part which exceeds 15% of the annual rate obtained by the said formula and the amount of Commitment Fee to such Non-bank Lender. For the purpose of clarification, the Agent shall not be liable to confirm whether such percentage point obtained by such formula exceeds 15% or not.
		

		
			The Formula: (A+B) ÷ (C) × 365 ÷(D) (%)
		

		
			A: Total amount of Commitment Fees which should be paid to such Non-bank Lender 
		

		
			B: Total amount of Interest relating to all Each Several Lending with respect to such Non-bank Lender 
		

		
			

		 

 

C: Total Amount of Average Principal Balance of all of Each Several Lending
		

		
			D: Actual Number of Commitment Fee Calculation Period
		

		
			 
		

		
			14.4 The calculation method of Commitment Fee Based on this Article, Paragraph1 shall be on a per diem basis of being 365 days per year including the fast and the last days of a certain period, and dividing procedure shall be in the past rounding off fractions less than one (1) yen.
		

		
			 
		

		
			Article15. Agent Fee
		

		
			 
		

		
			Borrower must pay the Agent fee to the Agent for the Agent Services agreed separately between Borrower and the Agent as provided for in the Agreement.
		

		
			 
		

		
			Article 16 (Expenses, Taxes and Public Charges)
		

		
			 
		

		
			16.1 The Borrower shall bear all costs incurred in relation to the preparation, modification or amendment of this Agreement and relevant documents hereof (including attorneys’ fees) and all costs incurred in the maintenance or enforcement of the rights or the performance of the obligations by the Lender or the Agent hereunder and relevant documents hereof (including attorney fees) unless it contradicts the Laws. If the Lender or the Agent paid such costs in the place of the Borrower, the Borrower shall pay the same in accordance with the provisions of Article 17 immediately upon the request from the Agent.
		

		
			 
		

		
			16.2 The Borrower shall bear all costs of stamp duties and other similar Taxes and Public Charges incurred in relation to the preparation, modification or execution of this Agreement and relevant documents hereof. If the Lender or the Agent paid such costs in the place of the Borrower, the Borrower shall pay the same in accordance with the provisions of Article 17 immediately upon the request from the Agent.
		

		
			 
		

		
			Article 17 (Performance of Obligations by Borrower)
		

		
			 
		

		
			17.1 The Borrower shall deposit money to the account of the Agent to the extent that it does not contradict the Laws in order to perform its obligations hereunder by the Due Time if the Due Date is specified hereunder, or immediately upon the request from the Agent if no Due Date is specified hereunder. In such a case, the Borrower is deemed to have performed its obligations to the Agent or the Lender at the time of deposit to the account of the Agent.
		

		
			 
		

		
			17.2 Unless otherwise provided in this Agreement, the Borrower may not pay its obligations hereunder directly to any Lender other than the Agent contrary to the preceding paragraph. The Lender who received such payment shall immediately pay the money received to the Agent, and the obligation for such money is deemed to have been performed by receipt of such money by the Agent. The Borrower may not perform its obligations hereunder by substitute performance unless the Agent and All Lenders give their prior written approval.
		

		
			 
		

		
			17.3 The payment by the Borrower hereunder shall be appropriated in the following order:
		

		
			(i) Money paid by the Agent in the place of the Borrower, the Agent Fee and delay damages thereof among the costs to be borne by the Borrower hereunder; 
		

		
			(ii) Money payable to third parties among the costs to be borne by the Borrower hereunder;
		

		
			(iii) Money paid by the Lender in the place of the Borrower and delay damages thereof among the costs to be borne by the Borrower hereunder;
		

		
			(iv) Delay damages (excluding delay damages stipulated in the items 1 and 3 of this paragraph) and 

		 

 

Settlement Money;
		

		
			(v) Commitment Fee;
		

		
			(vi) Interest on the Individual Loan (or the Aggregate Loan on or after the Consolidation Date of Individual Loans); and
		

		
			(vii) Principal of the Individual Loan (or the Aggregate Loan on or after the Consolidation Date of Individual Loans).
		

		
			 
		

		
			17.4 In the appropriation in the preceding paragraph, if the appropriation amount is less than the amount of any of the items, the first item that is not fully appropriated (hereinafter referred to as “Unappropriated Item”) shall be appropriated by dividing the remainder of amount appropriated to the higher priority items in proportion to the amount of each payment obligation of the Borrower becoming due for such Unappropriated Item.
		

		
			 
		

		
			17.5 The Borrower shall not deduct the Taxes and Public Charges from the payment of obligations hereunder unless required by Laws. If any Taxes and Public Charges need to be deducted from the amount payable by the Borrower, the Borrower shall pay by adding the necessary amount so that the Lender or the Agent may receive the amount if the Taxes and Public Charges are not imposed. In such a case, the Borrower shall directly send to such Lender or the Agent the certificate of tax payment related to withholding taxes issued by the tax authority or other supervisory authority in Japan within 30 days from the date of payment.
		

		
			 
		

		
			Article 18 (Distribution to Lenders)
		

		
			 
		

		
			18.1 If there still exists any remainder after deducting the amount corresponding to those described the items 1 and 2 of the paragraph 3 of the preceding Article from the amount paid by the Borrower pursuant to the preceding Article, the Agent shall immediately distribute such remainder to the Lenders in accordance with the provisions of this Article.
		

		
			 
		

		
			18.2 If, prior to the distribution to the Lenders by the Agent in accordance with this Article, (a) an order of provisional attachment, preservative attachment or attachment in relation to the Loan Claim was served on the Borrower, (b) an assignment was made with respect to the Loan Claim, or (c) the obligations were performed by third parties, the rights and obligations of the Borrower, the Agent and the Lenders shall be regulated in accordance with the following provisions:
		

		
			(a)
		

		
			(i) In the case that the Agent completed the distribution to the Lenders under this Article prior to the receipt of a notice from the Borrower pursuant to the paragraph 5 of Article 20 that an order of provisional attachment, preservative attachment or attachment for the Loan Claim was served on the Borrower.
		

		
			In this case, even if any Damages are incurred by the creditors having an order of provisional attachment, preservative attachment or attachment, the Borrower, the Lenders or other third parties due to such distribution by the Agent, the Agent will not be liable for such Damages and the Borrower shall deal with such Damages at its own costs and responsibilities. If the Agent suffers any Damages caused by such distribution, the Borrower shall compensate for such Damages.
		

		
			(ii) In the case that the Agent received a notice from the Borrower pursuant to the paragraph 5 of Article 20 that an order of provisional attachment, preservative attachment or attachment for the Loan Claim related to such distribution was served on the Borrower after the performance of obligations by the Borrower in accordance with the provisions of paragraphs 1 and 2 of the preceding Article and prior to the completion of distribution to the Lenders under this Article.
		

		
			In this case, (i) the Agent may withhold the distribution of money related to such notice under this Article, and may proceed in such other manner as the Agent deems reasonable, and (ii) the Agent shall distribute money received from the Borrower other than the money related to such notice pursuant to the appropriation method stipulated in the paragraphs 3 and 4 of the preceding Article. If any Damages are incurred by the creditors having an order of provisional attachment, preservative attachment or attachment, 

		 

 

the Borrower, the Lenders or other third parties due to the actions taken by the Agent pursuant to the provisions of this item (i) or the distribution by the Agent under this item (ii), the Agent will not be liable for such Damages and the Borrower shall deal with such Damages at its own costs and responsibilities. If the Agent suffers any Damages caused by such actions against distribution or such distribution, the Borrower shall compensate for such Damages.
		

		
			(iii) In the case that the Agent received a notice from the Borrower pursuant to the paragraph 5 of Article 20 that an order of provisional attachment, preservative attachment or attachment was served on the Borrower prior to the performance of obligations by the Borrower in accordance with the provisions of paragraphs 1 and 2 of the preceding Article.
		

		
			In this case, the Agent shall distribute money pursuant to the appropriation method stipulated in the paragraphs 3 and 4 of the preceding Article, considering there is no claim related to such notice. Even if any Damages are incurred by the creditors having an order of provisional attachment, preservative attachment or attachment, the Borrower, the Lenders or other third parties due to the distribution by the Agent, the Agent will not be liable for such Damages and the Borrower shall deal with such Damages at its own costs and responsibilities. If the Agent suffers any Damages caused by such distribution, the Borrower shall compensate for such Damages;
		

		
			(b) In the case that the Assignor and the Assignee in their joint names notified the Agent of the fact of assignment of the Loan Claim pursuant to the paragraph1 of Article 29. For the avoidance of doubt, if the Loan Claim is assigned pursuant to the provisions of Article 28, this item is applied with the Assignor replaced with the assigning Lender, and the Assignee with the assigned Lender.
		

		
			In this case, the Agent shall commence all administrative procedures necessary to treat such Assignee as the creditor of such Loan Claim immediately after the receipt of such notice, and the Agent will not be held liable if the Agent treats the previous Lender as the effective Lender until the Agent notifies the Borrower, the Assignor and the Assignee that such administrative procedures have been completed. If any Damages are incurred by the Assignee or other third parties due to such treatment by the Agent, the Agent will not be liable for such Damages and the Borrower and the Assignor of such Loan Claim shall deal with such Damages at their own costs and responsibilities. If the Agent suffers any Damages resulting from this item, the Borrower and the Assignor of such Loan Claim shall jointly compensate for such Damages; or
		

		
			(c) In the case that the third party who repaid pursuant to the provisions of paragraph 2 of Article 30 and the Lender who received such repayment in their joint names, or the Borrower in its own name, notified the Agent of the fact of repayment by third party under the paragraph 2 of Article 30.
		

		
			In this case, the Agent shall commence all administrative procedures necessary to treat a right to indemnity obtained by such third party and a claim obtained by subrogation in the same manner as the Loan Claim related to such repayment immediately after the receipt of either of such notices, and the Agent will not be held liable if the Agent treats such repayment by the third party as not having been made until the Agent notifies the Borrower, such third party and the Lender who received such repayment by the third party that such administrative procedures have been completed. If any Damages are incurred by such third party or other third party due to such treatment by the Agent, the Agent will not be liable for such Damages the Borrower and the Lender who received such repayment by the third party shall deal with such Damages at their own costs and responsibilities. If the Agent suffers any Damages resulting from this item, the Borrower and the Lender who received such repayment by the third party shall jointly compensate for such Damages.
		

		
			 
		

		
			18.3 The distribution by the Agent to the Lenders shall be made in the order from the items (iii) to (vii) of paragraph 3 of the preceding Article. If an Unappropriated Item arises for the amount to be distributed, the appropriation and distribution for such Unappropriated Item shall be made in accordance with the provisions of paragraph 4 of the preceding Article. In this case, each Lender may, at its discretion, determine the order and method of appropriation for the repayment of obligations to such Lender by the Borrower with respect to the amount so distributed regardless of the provisions of paragraphs 3 and 4 of the preceding Article, and the Borrower will not object to such determination, provided, however, even if any of the Lenders appropriated 

		 

 

the repayment in an order different from the order stipulated in the provisions of paragraphs 3 and 4 of the preceding Article, the Agent may deem that the Lender appropriated the repayment pursuant to the provisions of paragraphs 3 and 4 of the preceding Article, and the Agent may thereafter make such distribution to each Lender on the basis that All Lenders has made appropriation pursuant to the provisions of paragraphs 3 and 4 of the preceding Article. The Agent will not be liable as long as the Agent makes such distribution even if the distributed amount is different from the amount appropriated by each Lender.
		

		
			 
		

		
			18.4 If the Borrower makes the remittance stipulated in the paragraph 1 of the preceding Article later than the Due Time, the Agent will not assume an obligation to make the distribution stipulated in the paragraph 1 of this Article within the same day. In this case, the Agent shall make the distribution immediately after the receipt of remittance from the Borrower, and any Damages incurred by the Lender or the Agent due to such distribution shall be borne by the Borrower.
		

		
			18.5 Upon request from the Agent and if such request is based on a reasonable cause, the Lender who received such request shall immediately notify the Agent of the amount of loan it holds against the Borrower hereunder (including breakdown). In this case, the obligation of the Agent to make the distributions stipulated in the paragraph 1 of this Article arises at the time all such notices reach the Agent. If any Damages are incurred by the Lenders or the Agent due to delay in delivery of such notice without reasonable cause, the Lender causing such delay shall be liable for such Damages.
		

		
			 
		

		
			18.6 The Agent may make a distribution to the Lender by Advance Payment (accompanying no obligation). The Advance Payment does not mean the performance of obligations by the Borrower. If Advance Payment is made and if the Borrower does not perform the obligations in relation to such Advance Payment by the Due Time, the Lender who received the distribution by Advance Payment under this paragraph shall reimburse to the Agent the amount of such Advance Payment immediately upon request from the Agent. The Lender shall pay to the Agent, immediately upon request from the Agent, the Advance Payment Cost required for such Advance Payment in proportion to the amount of Advance Payment that it received. If the Lender paid such Advance Payment Cost to the Agent, the Borrower shall compensate such Lender for such Advance Payment Cost. If the Agent completed the procedures for Advance Payment of the distribution to the Lender prior to the receipt of notice from the Borrower pursuant to the paragraph 5 of Article 20 that an order of provisional attachment, preservative attachment or attachment was served on the Borrower, and even if any Damages are incurred by the creditors having an order of provisional attachment, preservative attachment or attachment, the Borrower, the Lenders or other third parties due to such Advance Payment of the distribution by the Agent, the Agent will not be liable for such Damages and the Borrower shall deal with such Damages at its own costs and responsibilities. If the Agent suffers any Damages (including, but not limited to, the money not reimbursed or not paid in the case of non-reimbursement or non-payment of the money to be reimbursed or to be paid to the Agent by the Lender stipulated in the third and fourth sentences of this paragraph) caused by such Advance Payment of the distribution, the Borrower shall compensate for such Damages.
		

		
			 
		

		
			Article 19 (Representations and Warranties by Borrower)
		

		
			 
		

		
			The Borrower represents and warrants to the Lenders and the Agent that each of the following items is true and correct as of the execution date of this Agreement, the Commitment Start Date and each Drawdown Date:
		

		
			(i) The Borrower is a joint-stock company duly incorporated and currently validly existing under the laws of Japan;
		

		
			(ii) The execution and performance of this Agreement and transactions hereunder by the Borrower are the actions within the purposes of the Borrower’s company, and the Borrower has completed all the procedures thereof necessary under the Laws, the articles of incorporation and other internal company rules of the Borrower;
		

		
			(iii) The execution and performance of this Agreement and transactions hereunder by the Borrower do not 

		 

 

(a) contradict the Laws that are binding on the Borrower, (b) contradict the articles of incorporation and other internal company rules of the Borrower, and (c) contradict any contract with a third party to which the Borrower is a party or which binds the Borrower or its assets;
		

		
			(iv) The person, representing the Borrower, who signs or affixes his/her name and seal on this Agreement is authorized to sign or affix his/her name and seal hereon by representing the Borrower in accordance with all the procedures necessary under the Laws, the articles of incorporation or other internal company rules of the Borrower;
		

		
			(v) This Agreement is legally and validly binding on, and enforceable in accordance with each provision hereof against, the Borrower;
		

		
			(vi) The Financial Statements (the audited Financial Statements if the Borrower is obligated to conduct an audit on such Financial Statements in accordance with the Laws and if it has otherwise conducted an audit) (or the Reports if the Borrower has prepared the Reports) prepared by the Borrower are accurate and duly prepared in light of the accounting standards that are generally accepted as fair and appropriate ones in Japan. If the Borrower is obligated to receive an audit on such Financial Statements in accordance with the Laws, the Borrower has received a necessary audit;
		

		
			(vii) No material change has occurred, which may materially affect the performance of obligations by the Borrower hereunder with respect to the information provided by the Borrower to the Agent or the Lender in relation to this Agreement, or which may, after the conclusion of accounting period ending in March 2016, deteriorate the business, properties, or financial condition of the Borrower described in the Financial Statements (the audited Financial Statements if the Borrower is obligated to conduct an audit on such Financial Statements in accordance with the Laws and if it has otherwise conducted an audit) (or the Reports if the Borrower has prepared the Reports) prepared by the Borrower for such accounting period and other accounting documents, and may materially affect the performance of obligations by the Borrower hereunder;
		

		
			(viii) No lawsuit, arbitration, administrative procedure, or any other dispute has commenced and will possibly commence against the Borrower, which will or may cause significant adverse effect on the performance of obligations by the Borrower hereunder;
		

		
			(ix) No event stipulated in each item of paragraph 1 or each item of paragraph 2 of Article 21, nor event constituting such event by notice or passage of time or by both, has occurred and will possibly occur; and
		

		
			(x) The Borrower does not fall under any of the following subitems (a) through (n):
		

		
			(a) An organized crime group (meaning a group the members (including the members of the member group of such group) of which may foment violent and unlawful acts and the like collectively or habitually; the same applies hereinafter in this item);
		

		
			(b) An organized crime group member (meaning a member constituting an organized crime group; the same applies hereinafter in this item);
		

		
			(c) A person for whom five years have not elapsed from the date the person ceased to be an organized crime group member;
		

		
			(d) A quasi member of an organized crime group (meaning a person who has a relation with organized crime groups other than a member of an organized crime group and may conduct violent and unlawful acts and the like backed by the force of an organized crime group, or a person who cooperates in or is involved in the maintenance or operation of an organized crime group by providing funds, weapons and the like to the organized crime group or the members thereof; the same applies hereinafter in this item);
		

		
			(e) An affiliated company of an organized crime group (meaning a company in which an organized crime group member is substantially involved in its management, or a company managed by a quasi member of an organized crime group or a former organized crime group member which actively cooperates in or is involved in the maintenance or operation of the organized crime group by providing funds to the organized crime group, or a company which actively utilizes an organized crime group in the company in which it is involved or in the execution of its business and cooperates in the maintenance or operation of the organized crime group);
		

		
			(f) A corporate racketeer and the like (meaning a corporate racketeer, a corporate extortionist and the like who may conduct violent and unlawful acts in pursuit of illegal interest targeting companies and poses a threat 

		 

 

to the safety of civil life);
		

		
			(g) A group engaging in criminal activities under the pretext of conducing social campaigns (meaning a person who conducts false social campaigns or political activities, or professes to be engaging in such campaigns and activities, and may conduct violent and unlawful acts and the like in pursuit of illegal interest, and poses a threat to the safety of civil life);
		

		
			(h) A crime group specialized in intellectual crimes and the like (meaning a group or an individual other than those listed in the above subitems (a) through (g), who uses the force of an organized crime group backed by a relation with the organized crime group, or has a financial relation with an organized crime group and is a core of structural unlawful acts);
		

		
			(i) A person equivalent to those listed in the above subitems (a) through (h);
		

		
			(j) A person having a relation where those who fall under any of the above subitems (a) through (i) (hereinafter referred to as the “organized crime group members” in this item) are deemed to control management of such person;
		

		
			(k) A person having a relation where the organized crime group members are deemed to be substantially involved in the management of such person;
		

		
			(l) A person having a relation where the person is deemed to unduly utilize the organized crime group members for the purpose of acquiring illicit benefit for itself, its company or third parties, or of causing damage to third parties;
		

		
			(m) A person having a relation where the person is deemed to be involved in providing funds or convenience to the organized crime group members; or
		

		
			(n) A person whose officers or staff who are substantially involved in its management have a socially condemnable relation with the organized crime group members.
		

		
			 
		

		
			Article 20 (Covenants of Borrower)
		

		
			 
		

		
			20.1 The Borrower covenants that it performs, at its expense, the matters described in each of the following items on and after the execution date of this Agreement until the Borrower completes the performance of all of its obligations hereunder to the Lenders and the Agent:
		

		
			(i) If any event stipulated in each item of paragraph 1 or each item of paragraph 2 of Article 21, or any event constituting such event by notice or passage of time or by both has occurred or will possibly occur, the Borrower shall immediately notify the Agent and All Lenders of such event;
		

		
			(ii) If the Borrower prepares the Financial Statements, the Borrower shall promptly submit to the Agent and All Lenders a copy of such Financial Statements, provided, however, if the Borrower prepares the Reports, the Borrower shall, promptly upon the submission of the same to the Director General of the competent Finance Bureau, submit a copy of such Reports to the Agent and All Lenders in place of a copy of the Financial Statements. For the avoidance of doubt, if the Borrower discloses the Reports electronically by the Electronic Disclosure System related to the disclosure documents such as the annual securities reports under the Financial Instruments and Exchange Act (the Electronic Data Processing System for Disclosure stipulated in Article 27-30-2 of the Financial Instruments and Exchange Act) (EDINET), such copy is deemed to have been submitted at the time of such disclosure. If the Agent or any of the Lenders requests the Borrower to submit a copy of the Reports, the Borrower shall promptly submit such copy to the Agent or the Lender. Such Financial Statements (or the Reports if the Borrower has prepared the Reports), if prepared, shall be accurate and duly prepared in light of the accounting standards that are generally accepted as fair and appropriate ones in Japan. If the Borrower is obligated to receive an audit on such Financial Statements in accordance with the Laws, the Borrower shall receive a necessary audit;
		

		
			(iii) If the Borrower has prepared the Financial Statements or the Reports for the accounting periods ending on or after the execution date of this Agreement, the Borrower shall promptly submit to the Agent and All Lenders the documents in the form of Exhibit 4 attached hereto in which the compliance of matters stipulated in the paragraph 1 of Article 30 may be confirmed;
		

		
			  (iv) Upon request from the Agent or the Lender through the Agent, the Borrower shall immediately report 

		 

 

to the Agent and All Lenders the status of properties, management or business of the Borrower, its Subsidiaries and Affiliates, and shall provide benefit necessary to facilitate the investigations thereof;
		

		
			(v) If any material change has occurred, or will possibly occur by passage of time, to the status of properties, management or businesses of the Borrower, its Subsidiaries or Affiliates, or if any lawsuit, arbitration, administrative procedure, or any other dispute has commenced or will possibly commence against the Borrower, which will or may cause significant effect on the performance of obligations by the Borrower hereunder, the Borrower shall immediately report to the Agent and All Lenders such fact; and
		

		
			(vi) If any of the items of the preceding Article is found untrue, the Borrower shall immediately report to the Agent and All Lenders of such fact.
		

		
			 
		

		
			20.2 If the Majority Lenders determine that it is necessary to preserve the claims against the Borrower hereunder and request the Borrower through the Agent in writing to preserve such claims, the Borrower covenants that it would immediately offer security interest with the same priority for each Lender and the Agent on the Borrower’s assets designated by the Majority Lenders and the Agent by making such claims of All Lenders and the Agent against the Borrower hereunder the secured claims with the contents and in the form satisfactory to the Majority Lenders and the Agent.
		

		
			 
		

		
			20.3 The Borrower covenants that it complies with each of the following items on and after the execution date of this Agreement until the Borrower completes the performance of all of its obligations hereunder to the Lenders and the Agent:
		

		
			(i) The Borrower maintains licenses and permits necessary to conduct its principal business, and continue the business in compliance with all Laws;
		

		
			(ii) The Borrower will not change its principal business;
		

		
			(iii) Unless otherwise specified in the Laws, the Borrower will not subordinate the payment of all of its debts hereunder to the payment of any unsecured and non-subordinate debts (including any debts that will not be fully collected after the foreclosure sale of the security among the secured loans) or at least treat it with the same priority;
		

		
			(iv) The Borrower will not, without approval of the Agent and All Lenders, execute reorganization (having the meaning as defined in the item 26 of Article 2 of the Companies Act), merger, company split, share exchange, share transfer, assignment of a whole or a part of its business or assets to third parties (including the assignment for a sale and leaseback transaction), capital reduction, succession to a whole or a part of material business or assets of third parties with respect to the Borrower, its Subsidiaries and Affiliates, which will or may cause significant adverse effect on the performance of obligations by the Borrower hereunder;
		

		
			(v) The Borrower will not fall under any of the items 10 (a) through (n) of Article 19; and
		

		
			(vi) The Borrower will not conduct any act falling under any of the following subitems (a) through (e) by itself or by utilizing third parties:
		

		
			 (a) Violent demands;
		

		
			 (b) Unlawful demands beyond legal liability;
		

		
			 (c) Any act using threatening words or violence in relation to a transaction;
		

		
			 (d) Any act that is detrimental to the credibility of the Lenders or the Agent by spreading rumors or using fraudulent means or force, or any act that interferes with the business of the Lenders or the Agent; or
		

		
			 (e) Other acts equivalent to the above subitems (a) through (d).
		

		
			 
		

		
			20.4 (i) The Borrower covenants that it will maintain the amount of net assets in its nonconsolidated balance sheet as of the last day of accounting period of its each fiscal year ending on or after the execution date of this Agreement respectively at 75% or more of the amount of net assets in its nonconsolidated balance sheet as of either the last day of previous accounting period thereof or the last day of accounting period ending in March 2016, whichever the greater.
		

		
			(ii) The Borrower covenants that it will maintain the amount of net assets in its consolidated balance sheet as 

		 

 

of the last day of accounting period of its each fiscal year ending on or after the execution date of this Agreement respectively at 75% or more of the amount of net assets in its consolidated balance sheet as of either the last day of previous accounting period thereof or the last day of accounting period ending in March 2016, whichever the greater.
		

		
			(iii) The Borrower covenants that it will not post an ordinary loss for two consecutive fiscal years with respect to the ordinary profit and loss in its nonconsolidated profit and loss statement for the accounting period of its each fiscal year ending on or after the execution date of this Agreement.
		

		
			(iv) The Borrower covenants that it will not post an ordinary loss for two consecutive fiscal years with respect to the ordinary profit and loss in its consolidated profit and loss statement for the accounting period of its each fiscal year ending on or after the execution date of this Agreement.
		

		
			 
		

		
			18.5 If the Borrower receives service of an order of provisional attachment, preservative attachment or attachment in relation to the Loan Claim, it shall immediately notify All Lenders through the Agent in writing of such service together with a copy of such order.
		

		
			 
		

		
			Article 21 (Event of Acceleration)
		

		
			 
		

		
			21.1 If any of the events described in the items below has occurred, all obligations of the Borrower to All Lenders and the Agent hereunder will become due and payable as a natural consequence without any notice or demand from the Lender or the Agent, and the Borrower shall immediately pay the principal of Individual Loan (or the Aggregate Loan on or after the Consolidation Date of Individual Loans), interest, Settlement Money, and all other money owed by the Borrower hereunder in accordance with the provisions of Article 17, whereby the Lending Obligations of All Lenders will be extinguished:
		

		
			(i) If any payment by the Borrower has been suspended, or if a petition of commencement of bankruptcy procedures, commencement of civil rehabilitation procedures, commencement of corporate reorganization procedures, commencement of special liquidation, or commencement of any other similar legal arrangement procedures (including similar petition filed outside Japan) against the Borrower is submitted;
		

		
			(ii) If the Borrower adopts the resolution for dissolution or receives an order of dissolution (excluding the dissolution of the Borrower resulting from an absorption-type merger or an consolidation-type merger);
		

		
			(iii) If the Borrower abolishes its business;
		

		
			(iv) If the Borrower receives a disposition to suspend transactions with a clearinghouse or a disposition to suspend transactions from densai.net Co., Ltd., or receives similar measures from other electronic credits recording institution; or
		

		
			(v) If any order or notice of provisional attachment, preservative attachment or attachment (including any similar procedures outside Japan) has been sent out, or if any lawsuit that orders an enforcement of preservative attachment or attachment has been filed, with respect to the deposit claims or other claims held by the Borrower against the Lender.
		

		
			 
		

		
			21.2 If any of the events described in the items below has occurred, all obligations of the Borrower to All Lenders and the Agent hereunder will become due and payable upon notice from the Agent to the Borrower under the request of the Majority Lenders, and the Borrower shall immediately pay the principal of Individual Loan (or the Aggregate Loan on or after the Consolidation Date of Individual Loans), interest, Settlement Money, and all other money owed by the Borrower hereunder in accordance with the provisions of Article 17, whereby the Lending Obligations of All Lenders will be extinguished:
		

		
			(i) If the Borrower has delayed the performance of a whole or a part of its monetary obligations to the Lender or the Agent whether under this Agreement or not;
		

		
			(ii) If any matter described in each of the items of Article 19 has been found untrue;
		

		
			(iii) Except for the case described in the item (i) of this paragraph, if the Borrower has breached any of its 

		 

 

obligations hereunder (provided, however, if the breach has not been remedied for ten or more Business Days after the occurrence thereof in the case of breach that could be remedied);
		

		
			(iv) If any order or notice of attachment, provisional attachment, preservative attachment or provisional disposition (including any similar procedures outside Japan) has been sent out, or if auction procedures have commenced, with respect to the subject of security offered by the Borrower to the Lender;
		

		
			(v) If any of the outstanding corporate bonds issued by the Borrower have become due and payable before the original due date;
		

		
			(vi) If the Borrower has delayed the performance of a whole or a part of its monetary obligations other than those hereunder or if such monetary obligations have become due and payable before the original due date, or if the Borrower has delayed the performance of a whole or a part of its guarantee obligations on debts owed by third parties though the performance obligations thereof has occurred;
		

		
			(vii) If the Borrower has suspended its business or received dispositions such as suspension of business from the competent government authorities;
		

		
			(viii) If a petition for special conciliation is filed; or
		

		
			(ix) Except for each of the preceding items, if the status of business or assets of the Borrower deteriorates or may deteriorate and thereby it is deemed necessary to preserve the claims.
		

		
			 
		

		
			21.3 If the notice dispatched pursuant to the preceding paragraph was delayed or not delivered due to the fault of the Borrower, all obligations of the Borrower hereunder will become due and payable at the time such notice should have been delivered, and the Borrower shall immediately pay the principal of Individual Loan (or the Aggregate Loan on or after the Consolidation Date of Individual Loans), interest, Settlement Money, and all other money owed by the Borrower hereunder in accordance with the provisions of Article 17, whereby the Lending Obligations of All Lenders will be extinguished.
		

		
			 
		

		
			21.4 If the Lender has become aware of the occurrence of any event described in the items (i) through (iv) of the paragraph 1 of this Article or each item of the paragraph 2 of this Article, the Lender shall immediately notify the Agent of such occurrence, and the Agent shall notify all other Lenders of the occurrence of such event. In the event described in the item (v) of the paragraph 1 of this Article, if the Lender, who is the debtor of the claim in such event, has become aware of the occurrence of such event, the Lender shall notify the Borrower, all other Lenders and the Agent of such occurrence thereof.
		

		
			 
		

		
			Article 22 (Offset, Exercise of Security Interest, and Sale by Private Contract)
		

		
			 
		

		
			22.1 If the Borrower is required to perform its obligations to the Agent or the Lender upon due date, acceleration or otherwise, the Agent or the Lender may (a) offset its claims against the Borrower hereunder with the deposit obligations, obligations under an insurance contact or other obligations of the Agent or the Lender to the Borrower, whether or not such obligations are due and payable, regardless of the provisions of the paragraph 2 of Article 17, and (b) omit prior notice and prescribed procedures, receive reimbursement of the deposited amount on behalf of the Borrower, and appropriate this amount to the payment of obligations. The interest, Settlement Money and delay damages for claims and obligations in the case of such offset or appropriation to payment shall be calculated assuming that such claims and obligations will be extinguished on the date of such calculation, and the interest rate or the rate of delay damages shall be in accordance with the provisions of agreement thereon, and the foreign exchange rate at the time of calculation reasonably determined by the Agent or the Lender shall be applied.
		

		
			 
		

		
			22.2 The Borrower may offset its deposit claims, claims under an insurance contract or other claims against the Agent or the Lender that have become due with its obligations hereunder owed to the Agent or the Lender that have become due regardless of the provisions of the paragraph 2 of Article 17 only if the Borrower necessarily preserve such claims. In this case, the Borrower shall give written offset notice and promptly 

		 

 

submit to the Agent or the Lender the certificates of deposit claims, claims under an insurance contract or other claims being offset and the passbook affixed with the registered seal. The interest and delay damages for claims and obligations in the case of such offset shall be calculated assuming that such claims and obligations will be extinguished on the delivery date of such offset notice, and the interest rate or the rate of delay damages shall be in accordance with the provisions of agreement thereon, and the foreign exchange rate at the time of calculation reasonably determined by the Agent or the Lender shall be applied.
		

		
			 
		

		
			22.3 If the Borrower is required to perform its obligations to the Agent or the Lender upon due date, acceleration or otherwise, the Agent or the Lender may exercise its security interest (including the collection through real subrogation, receipt of substitute performance of assets on which security interest is established, or private disposition of such assets; hereinafter referred to as “Exercise of Security Interest”) regardless of the provisions of the paragraph 2 of Article 17.
		

		
			 
		

		
			22.4 If the Borrower is required to perform its obligations to the Agent or the Lender upon due date, acceleration or otherwise regardless of the provisions of the paragraph 2 of Article 17, the Borrower may, with prior written notice to the Agent, sell by private contract the assets subject to the security interest granted in favor of the Agent or the Lender, pay the money received directly to the Agent or the Lender as the performance of obligations hereunder, or make payment in substitution with the assets subject to the security interest granted in favor of the Agent or the Lender as the performance of obligations hereunder. Such payment may be deemed to be the performance of obligations hereunder.
		

		
			 
		

		
			22.5 If the principal of each Individual Loan (or each Loan on or after the Consolidation Date of Individual Loans) of the Lender is repaid or offset on the date other than the Interest Payment Date for reasons not attributable to the Lender (including, but not limited to, the case where the principal of each Individual Loan (or each Loan on or after the Consolidation Date of Individual Loans) ceases to exist by offset pursuant to the paragraph 1 of this Article), and in the case that the reinvestment interest rate of each Individual Loan (or each Loan on or after the Consolidation Date of Individual Loans) being repaid or offset is lower than the interest rate applied for the Interest Rate Calculation Period that includes the date of such repayment or offset of each Individual Loan (or such each Loan on or after the Consolidation Date of Individual Loans), the Borrower shall pay to the Lender the Settlement Money in relation to such repayment or offset on the same day as the date of such repayment or offset in accordance with the provisions of Article 17 unless otherwise provided herein.
		

		
			 
		

		
			22.6 If an offset or appropriation to repayment is made pursuant to the paragraph 1 or 2 of this Article, or if the security interest is exercised pursuant to the paragraph 3 of this Article, or if the assets subject to the security interest are sold by private contract or accepted as substitute performance pursuant to the paragraph 4 of this Article, the Lender shall, for the paragraphs 1 and 3 of this Article, and the Borrower, for the paragraphs 2 and 4 of this Article, shall promptly notify the Agent in writing of the details thereof. If any Damages are incurred by the Lender or the Agent due to delay of such notice without any reasonable cause, either the Lender who has failed to give such notice or the Borrower who has failed to give such notice shall bear such damages.
		

		
			 
		

		
			Article 23 (Arrangement among Lenders and Agent)
		

		
			 
		

		
			23.1 If the obligations of the Borrower against any of the Lenders hereunder has been extinguished without following the provisions of Articles 17 and 18 (excluding the cases of offset or appropriation to repayment under the paragraph 1 or 2 of the preceding Article) (hereinafter such Lender is referred to as the “Obligation Ceasing Lender” in this paragraph), unless otherwise provided hereunder, All Lenders and the Agent shall make an arrangement among the Lenders and the Agent by assigning claims or receiving claims pursuant to the provisions of each of the following items or through other reasonable measures so as to obtain the same 

		 

 

results as the cases where the repayment is made pursuant to the provisions of Articles 17 and 18 and the obligations to the Agent and the Lenders are extinguished. If agreement of All Lender and the Agent to such assignment of claims, receipt of claims or other reasonable measures, All Lenders shall follow the measures determined by the Agent at its discretion, provided, however, if the claim is to be assigned as the matter of arrangement among the Lenders and the Agent stipulated in this paragraph (including, but not limited to, the cases stipulated in the item 2 of this paragraph), the Lender who will be the Assignor of such claim may refuse such assignment:
		

		
			(i) When assuming that the amount in relation to extinguishment of the obligations has been paid to the Agent at the time of the extinguishment of obligations pursuant to the provisions of the paragraph 1 of Article 17, the Agent shall specify the claim the payment of which other Lenders and the Agent (hereinafter referred to as the “Other Lenders” in this paragraph) would have received pursuant to the provisions of Articles 17 and 18, and calculate the amount thereof;
		

		
			(ii) The Obligation Ceasing Lender shall purchase from such Other Lenders at the face value the part of claims equivalent to the amount calculated by the Agent pursuant to the preceding item among the claims of Other Lenders specified by the Agent pursuant to the preceding item; and
		

		
			(iii) If the purchase of claim stipulated in the preceding item is made, Other Lenders who sold such claim shall, at their own expense, notify the Borrower with an instrument bearing a certified date specified in Article 467 of the Civil Code promptly after the sale of such claim.
		

		
			 
		

		
			23.2 Notwithstanding the preceding paragraph, in the case of the following items, the arrangement among the Lenders and the Agent stipulated in the preceding paragraph will not be made and only the relevant Lenders shall receive the repayment:
		

		
			(i) If the security interest is exercised by the Lender;
		

		
			(ii) If the Lender receives any repayment of claims it has against the Borrower hereunder with respect to its security interest as a result of compulsory execution or auction for Exercise of Security Interest by a third party;
		

		
			(iii) If the obligations hereunder are extinguished as a result of offset or appropriation to repayment pursuant to the provisions of the paragraph 1 or 2 of the preceding Article; and
		

		
			(iv) If a sale by private contract of the assets subject to the security interest granted in favor of the Lender is made pursuant to the provisions of the paragraph 4 of the preceding Article and the money received is paid directly to the Lender for the performance of obligations hereunder, or if repayment is made by substitute performance with the assets on which security interest is established in favor of the Lender and the obligations hereunder to the Lender are extinguished.
		

		
			 
		

		
			ARTICLE24 RIGHTS AND OBLIGATIONS OF THE Agent 
		

		
			 
		

		
			24.1. The Agent shall conduct its Agent service on behalf of all Lenders and exercise its powers under the entrustment of all Lenders, and exercise its powers admitted by the Agent as commonly required and appropriate in conducting its Agent service. The Agent shall not have any obligations other than explicitly provided in each article hereunder, or shall not be liable for the failure of the Lenders to perform its obligations hereunder. Furthermore, the Agent is the agent of the Lenders so that the Agent shall not act as an agent of the Borrower unless otherwise provided. 
		

		
			 
		

		
			24.2. The Agent may rely on the correspondence, documents and papers (including the Application Form for Borrowing received by facsimile from the Borrower in accordance with the Section4.1.) which are considered as true and correct and signed or placed signatures and seals by an appropriate person, and may perform relying on the statements or instructions submitted by the experts reasonably appointed by the Agent to the extent required with respect to this Agreement.
		

		
			 
		

		
			

		 

 

24.3. The Agent shall fulfill its obligations and exercise its powers hereunder with the due care of a prudent manager.
		

		
			 
		

		
			24.4. The Agent or its officers, employees or agents shall not be liable to the Lenders for any acts or omissions in connection with this Agreement, unless caused intentionally or by gross negligence hereunder. The Lenders shall jointly and severally indemnify Agent for any liability and damage assumed and incurred by the Agent to fulfill its obligations hereunder, including but not limited to the costs and expenses incurred to avoid and recover the loss or damage (including attorney’s fee) as long as not reimbursed by the Borrower. Provided, however, that if the Agent concurrently serves as the Lenders, the Lenders excluding the Agent shall jointly and severally indemnify Agent for the balance after deducting the amount shared pro rata in accordance with the participating proportion of such Lenders concurrently serving as the Agent (in case the Lenders who is not able to indemnify is included, the proportion after divided by the total of the participating proportion of the Lenders excluding such Lenders from the participation proportion of the Lenders concurrently serving as the Agent) from aforementioned costs and expenses.
		

		
			 
		

		
			24.5. With the written instruction of the Lenders, the Agent may perform an act pursuant to such instruction which is lawful. In this case, the Agent shall not be liable to the Borrower or the Lenders for any consequences of the act.
		

		
			 
		

		
			24.6. Unless notified of the events in Section21.1 or Section21.2, or the events constituting such events by notification and/or time passage, the Agent shall be deemed not to have known the existence of such events.
		

		
			 
		

		
			24.7. The Agent makes no warranty with the validity of this Agreement and any representations herein. The Lenders shall execute this Agreement on its own decision after reviewing the credit of the Borrower or other necessary matters based on the documents and information it deemed as appropriate, and shall conduct the transaction intended herein.
		

		
			 
		

		
			24.8. If the Agent concurrently serves as the Lenders, its rights and obligations of the Lenders shall be equivalent to those of the other Lenders irrespective of its obligations of the Agent hereunder. And, the Agent may conduct generally admitted banking transactions with the Borrower outside of this Agreement. Meanwhile, the Agent shall be under no obligation to disclose to the other Lenders the information of the Borrower obtained in the course of the transaction outside this Agreement (the information received from the Borrower shall be deemed as the information obtained in the course of the transactions outside this Agreement), or no obligation to distribute to the other Lenders the amount paid by the Borrower in the transaction with the Borrower outside this Agreement.
		

		
			 
		

		
			24.9. In calculating the amount of each Several Lending Disbursement and the distribution amount to the Lenders pursuant to Article18, any fractions less than one (1) yen of the distribution amount to the Lenders other than the Lenders appointed by the Agent(hereunder, “Calculating Fractions Lenders” in this Section, provided that the Lenders concurrently serving as the Agent shall be the Calculating Fractions Lenders if the Agent concurrently serves as the Lenders) shall be rounded off, and the distribution amount to the Calculating Fractions Lenders shall be the amount deducted the distribution amount to the other Lenders from the total distribution amount. The necessary calculation of any fractions less than one (1) yen hereunder shall be subject to the manner the Agent deems as appropriate. As for fractions, the amounts and the number of shares are rounded down, whereas ratios and other values are rounded off.
		

		
			 
		

		
			

		 

 

24.10. The decision on the interest, Interest Calculation Period and due date included in the notification from the Agent to the Borrower or the Lenders, and other decisions and the amount paid based on this Agreement shall bind the Borrower and the Lenders as fixed and firm terms, unless any explicit errors.
		

		
			 
		

		
			24.11. If the Agent receives the notification from the Borrower to be notified to the Lenders hereunder, the Agent shall promptly notify its contents to all Lenders. And if the Agent receives the notification from the Lenders to be notified to the Borrower or the other Lenders, the Agent shall promptly notify its contents to each of the Borrower and all Lenders. The Agent shall make available for inspection by the Lenders the documents received from the Borrower and kept by itself during the standard business hours of the Agent. 
		

		
			 
		

		
			 
		

		
			ARTICLE25 RISIGNATION AND DISMISSAL OF THE Agent
		

		
			 
		

		
			25.1 The procedure to resign the Agent shall be as follows.
		

		
			(i) The Agent may resign by written notification to all Lenders and the Borrower. Provided, however, that such resignation shall not be effective until the successor Agent is appointed and accepts such appointment.
		

		
			(ii) If the notification in Section 25.1(i) is made, Majority of Lenders shall appoint the successor Agent after obtaining approval of the Borrower.
		

		
			(iii) If the successor is not appointed within thirty (30) days from the date of notification in above Section25.1(i), or the person appointed by Majority of Lenders does not accept such appointment, the incumbent Agent may the successor Agent on behalf of the Majority of Lenders.
		

		
			 
		

		
			25.2 The procedure to dismiss the Agent shall be as follows.
		

		
			(i) Majority of Lenders may dismiss the Agent by written notification to all of the Lenders, the Borrower and the Agent. Provided, however, that such dismissal shall not be effective until the successor Agent is appointed and accepts such appointment.
		

		
			(ii) If the notification is Section 25.2(i) is made, Majority of Lenders shall appoint the successor Agent after obtaining approval of the Borrower.
		

		
			 
		

		
			25.3 If the person appointed as the successor Agent under Section25.1 or 25.2 accepts the appointment, the former Agent shall deliver all documents filed by such person as an Agent to the successor Agent and provide all cooperation necessary for the successor Agent to fulfil its obligations hereunder as the Agent. 
		

		
			 
		

		
			25.4 The successor Agent shall assume the rights and obligations of the former Agent and the former Agent shall be released from all obligations of the Agent at the same time as assuming the post of the Agent. Provided, however, that the provisions hereunder shall continue to affect effectively to the performance (including omission) the former Agent conducted during its tenure.
		

		
			 
		

		
			25.5 Notwithstanding above Section25.1 to Section25.4, the Agent may resign by forming a consensus with the Majority of Lenders if falling under either of the following subsections. If the Agent has resigned pursuant to this Section25.5, such Agent who resigned shall promptly notify to the Borrower and the Borrower shall not make any objections against such resignation. Even if the Agent has resigned pursuant to this Section25.5, the Borrower shall not be released from the payment obligations of the agent fee already incurred.
		

		
			(i)In the event that any petitions for the commencement of bankruptcy proceedings, civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation proceedings or other similar legal insolvency proceedings (including any similar petitions overseas) are filed.
		

		
			

		 

 

(ii) In the event that the Borrower fails to pay the agent fee and despite of reasonable day of notice, the Borrower still fails to pay within such period.
		

		
			 
		

		
			ARTICLE26 GATHERING Majority of Lenders’ DECISIONS
		

		
			 
		

		
			26.1 The procedure of gathering Majority of Lenders’ decisions shall be as follows;
		

		
			(i) The Lenders may notify the Agent to require gathering Majority of Lenders’ decisions if it deems the event requiring the instructions by the Majority of Lenders set forth herein occurs.
		

		
			(ii) The Agent notified above (i) shall promptly all Lenders to gather many Lenders’ decisions.
		

		
			(iii) The Lenders notified above (ii) shall make its decision on such event and shall notify its contents to the Agent within five (5) business days.
		

		
			(iv) In case where the Majority of Lenders’ decisions are gathered in accordance with above (i) (ii) (iii), the Agent shall promptly notify all Lenders of its contents as instructions by the Majority of Lenders. 
		

		
			 
		

		
			26.2 The Agent may notify all Lenders to gather Majority of Lenders’ decisions if it deems the event other than those in Section26.1 which require the gathering Majority of Lenders’ decisions occurs. The procedure after such notification shall be subject to above 26.1(iii) and (iv).
		

		
			 
		

		
			ARTICLE27 MODIFICATION OF THIS AGREEMENT
		

		
			 
		

		
			27.1. This Agreement shall not be modified or altered without any written consent of the Borrower, all Lenders and the Agent.
		

		
			 
		

		
			27.2 Notwithstanding the foregoing, if the successor Agent is not immediately appointed by the mutual consent of the Majority of Lenders pursuant to Section25.5, this Agreement may be modified or altered with the written consent of the Majority of Lenders and the Agent (the Majority of Lenders if the Agent has already resigned) to the extent reasonably required to enable each Lenders to exercise its rights respectively. The party who modified or altered this Agreement pursuant hereto, shall notify its contents of the modification or alteration in writing to the other parties hereto without any delay. 
		

		
			 
		

		
			ARTICLE28 TRANSFER OF ITS CONTRACTUAL STATUS
		

		
			 
		

		
			28.1 The Borrower shall not transfer its contractual status or rights and obligations hereunder to any third party without prior written consent of all Lenders and the Agent.
		

		
			 
		

		
			28.2 The Lenders may transfer its contractual status and all of the rights and obligations accompanied to the third party (transfer of any part of its contractual status and rights and obligations accompanied shall not be allowed), only with the consents of all of the other Lenders, the Borrower and the Agent, and meeting all requirements in each of the following subsections, prior to termination of the Lending Obligations (hereinafter the Lenders having transferred shall refer to “Status Transferor” and the person transferred shall refer to “Status Transferee”). Provided, however, that, transfer of the Lending Claim set forth in Article23 or Article29 shall not require above consents. In this case, Status Transferor and Status Transferee shall deliver in the joint names the notification of status transferring with a copy of written consent of all of the other Lenders, the Borrower and the Agent. All of the other Lenders, the Borrower and the Agent shall not unreasonably withhold the consents and the Agent shall notify to all Lenders pursuant to Section32.5 if such 

		 

 

transfer is completed.
		

		
			(i) If Lending Claim or the other rights of the Status Transferor against the Borrower hereunder are transferred to Status Transferee through such transfer, the consent of the Borrower shall include the consent for such rights (if any), and the date of transfer shall be certified for such consent.
		

		
			(ii) Status Transferee shall be the Qualified Assignee.
		

		
			(iii) Such Transfer shall not cause any withholding tax or any increase of the Borrower’s interest against such Status Transferee pursuant to Section17.5 (unless the Lenders transfers its contractual status to its subsidiaries or affiliate companies overseas because the Lenders abolishes its loan service in Japan).
		

		
			 
		

		
			28.3 All costs and expenses resulting from the transfer under above Section28.2 shall be borne by the Status Transferee. Furthermore, the Status Transferor shall pay five hundred thousand (500,000) JPY with consumption tax and local tax to the Agent in consideration of administrative procedure relating to such transfer by the date of transfer. 
		

		
			 
		

		
			ARTICLE29 ASSIGNMENT OF Lending Claim ETC.
		

		
			 
		

		
			29.1 Unless otherwise provided herein, the Lenders may assign all Lending Claim (assignment of any part of Lending Claim shall not be allowed) of either Each Several Lending (or Each Lending on and after the Several Lending Integrating Date) , all relevant rights and obligations and other contractual status only if the Lending Obligations has been fulfilled and all requirement in the following (i) to (iii) are applicable. Assignor and Assignee shall meet requirements for opposition to any third party and to debtors, and Assignor and Assignor shall immediately notify the Agent of the fact of such assignment. Such notification shall be conducted by delivering a letter of assignment of rights. All of the other Lenders, the Borrower and the Agent hereby agree to such assignment. In this case, in applying each provision hereunder concerning such Lending Claim and all relevant rights and obligations and other contractual status, Assignee shall be treated as Lenders.
		

		
			(i) For assigned Lending Claim and all relevant rights and obligations and other contractual status, Assignee shall be bound to each provisions concerning assigned Lending Claim and all relevant rights and obligations and other contractual status hereof.
		

		
			(ii) Assignee shall be the Qualified Assignee.
		

		
			(iii) Such assignment shall not cause any withholding tax or any increase of the Borrower’s interest against such Assignee pursuant to Section17.5 (unless the Lenders assigns to its subsidiaries or affiliate companies overseas because the Lenders abolishes its loan service in Japan).
		

		
			 
		

		
			29.2 All costs and expenses resulting from the assignment under above Section29.1 shall be borne by Assignee. Furthermore, Assignee shall pay five hundred thousand (500,000) JPY with consumption tax and local tax to the Agent in consideration of administrative procedure relating to such assignment by the date of assignment.
		

		
			 
		

		
			ARTICLE30 COLLECTION FROM THIRD PARTY
		

		
			 
		

		
			30.1 Unless any prior written consent of the Agent and all Lenders, the Borrower shall not appoint any third party as a guarantor for the liabilities hereunder (including real guarantee but excluding the real guarantee as revolving guarantee or revolving collateral), or shall not allow any third party to assume any liabilities hereunder or its fulfillment after and including the execution date of this Agreement.
		

		
			 
		

		
			

		 

 

30.2 As for the repayment of any liabilities hereunder by any third party, the Lenders may receive such repayment from the third party only if such repayment meets all of the following requirements (provided that only the requirement provided in this Section30.2(i) shall be met in case of exercise of any security interest created by a third-party pledger, repayment by the amount received from any private sale of the property for which a third-party pledger creates a security interest, or repayment by substitute performances using the property for which a third-party pledger creates a security interest.) If the Lenders receives the repayment from any third party pursuant to this Section, such Lenders shall immediately notify the Agent of such repayment in the joint names of the Lenders and such third party, and in the sole name of the Borrower. Section17.2 shall not apply to the repayment pursuant to this Section30.2, and the adjustment between the Lenders and the Agent provided in Section23.1 shall not be conducted.
		

		
			(i) If the third party exercise its rights to reimbursement obtained as a result of such repayment, or rights obtained by subrogation of the Lenders, such rights to reimbursement and rights obtained by subrogation shall be treated equivalently as rights regarding such repayments, and such third party shall accept by written form that the third party is bound to each provisions hereof to the extent, and provide such form to the Agent for the Lenders and the Agent.
		

		
			(ii) The third party shall be the Qualified Assignee and shall not be the subsidiary or the affiliate company of the Borrower, or the Borrower shall not be the subsidiary or the affiliate company of such third party.
		

		
			(iii) If the repayment is the repayment of either of obligations concerning any loan of Each Several Lending (but the Each Lending on and after Several Lending Integrating Date), total amount of such Lending Claim shall be repaid.
		

		
			(iv) Such repayment shall not result in any withholding tax, or any increase of the interest amount pursuant to Section17.5.
		

		
			If any third party exercise its rights to reimbursement or obtain the Lending Claimby subrogation, such acquisition of the rights to reimbursement or acquisition by subrogation shall be deemed as an assignment of the Lending Claim under above Article29 so that Section29.2 shall apply mutatis mutandis.
		

		
			 
		

		
			 
		

		
			ARTICLE31 TERMINATION OF Lending Obligations
		

		
			 
		

		
			If either of the following events occurs, Lending Obligations of all Lenders shall be extinguished. If the event set forth in (ii) of the following events occurs, the Borrower shall immediately pay its debt hereunder in accordance with Article17. The relevant provisions of this Agreement shall remain in force until the Borrower completes its obligations hereunder.
		

		
			(i) if the Due Date has passed;
		

		
			(ii) if the Borrower loses the benefit of time pursuant to Article21;
		

		
			(iii) if the Borrower terminate its Lending Obligations pursuant to Section2.5; or
		

		
			(iv) if the total of the Unused Amount of Lending Limit has reduced to zero (0).
		

		
			 
		

		
			 
		

		
			ARTICLE32 GENERAL CONDITIONS
		

		
			 
		

		
			32.1 Confidentiality
		

		
			The Borrower shall not make any objections to the disclosure with respect to the following;
		

		
			(i) if any failure of each Several Lending is notified under Section7.1, or any events set forth in each subsection in Section21.1 or Section21.2 or any events constituting such events by notification and/or time passage are occurred, or it is necessary to gather Majority of Lenders’ decisions under Article26, the Agent and the Lenders mutually disclose the information regarding the Borrower and the 

		 

 

transactions with the Borrower obtained in connection with this Agreement or any agreements other than this Agreement to the extent reasonably required;
		

		
			(ii) In transferring the contractual status under Article28 or in assigning the Lending Claim under Article29, the Lenders discloses the information concerning this Agreement to the Assignee (including the transferee in Article28) and any person who is considering to be assigned or transferred (including the person who conducts agency business for such assignment or transfer), provided that the Lenders shall impose confidential information to those who disclosed. For the avoidance of doubt, the information concerning this Agreement means the information with respect to the Borrower’s credit obtained in connection with this Agreement, the contents of this Agreement and its supplementary information, and the contents of the Lending Claim subject to assignment and its supplementary information, excluding the information with respect to Borrower’s credit obtained in connection with any agreement other than this Agreement.
		

		
			(iii) The Lenders or the Agent discloses the information concerning this Agreement to the extent reasonably required in accordance with any applicable laws, or any order, direction, request by any administrative authorities, judiciary authorities or other authorities concerned, central bank, self-censorship organizations, or discloses such information only to attorneys, judicial scriveners, certified public accountants, audit corporations, tax accountants, rating agencies or other experts who need to be disclosed such confidential information in the performance of their duty. Furthermore, the Lenders or the Agent discloses the information concerning this Agreement to its parent company, subsidiaries and affiliate companies for the purpose of internal control, and to the necessary and appropriate extent.
		

		
			 
		

		
			32.2 Risk of loss, Disclaimer and Remedy and Indemnification 
		

		
			(i) If the documents submitted by the Borrower to the Agent or the Lenders should be lost, extinguished or damaged due to circumstances beyond its control such as incidents and disasters, the Borrower shall discuss with the Agent and shall perform its obligations hereunder on the basis of the records such as books and slips of the Agent or the Lenders. And, the Borrower shall promptly prepare substitute documents and submit them to the Agent or the Lenders through the Lenders, as required by the Agent or the Lenders through the Agent. 
		

		
			(ii) If any accidents such as counterfeiting, falsification or plagiarism of a seal occur in the transactions in which the Lenders or the Agent has checked the signature or seal of Borrower’s representative or agent for use in the transaction hereunder against the signature or seal previously the Borrower notified, and such accidents result in any loss or damage, the Borrower shall bear such loss or damage.
		

		
			(iii) Even if the Borrower should bear any loss or damages by any actions of the Lenders or the Agent allowed hereunder (including making decision not to perform each Several Lending, notifying the Borrower pursuant to Section21.2 or disclosing the information under Section32.1(i)) for the reason that the Borrower breaches any provisions hereof or that any of the Subsections in Article19 is untrue (including that the matters stipulated in Section19(x) (a) to (n) are not true or that the Borrower breaches Section20.3(v) or (vi), and hereinafter the “Borrower’s Breach”), the Borrower shall not claim against the Lenders or the Agent whatsoever. Any loss or damage incurred by the Lenders or the Agent due to the Borrower’s Breach or the failure of the Lenders to indemnify under Section24.4 shall be borne by the Borrower. 
		

		
			32.3 Severability of this Agreement
		

		
			If any part of the provisions of this Agreement should be or become illegal or unenforceable, the validity, legality and enforceability of the remaining conditions shall not be impaired or affected.  
		

		
			 
		

		
			32.4 Priority over Transaction Agreements”
		

		
			If there should be any conflicts between the provisions in this Agreement and any banking agreement submitted by the Borrower to the Lenders separately, or executed between the Borrower and the Lenders separately or other general agreement on financial transactions (hereinafter, “Transaction Agreements” for the purpose of this Section), the 

		 

 

provision shall control and prevail such Transaction Agreements. And if any matters not stipulated herein shall be provided in such Transaction Agreements, the Transaction Agreements shall apply with respect to the matter. 
		

		
			 
		

		
			32.5 Notices
		

		
			(i) All notices hereunder shall be by written form and specify that the notice is based on this Agreement, and shall be made to the contact address listed in the Appendix1 attached hereto by either way of the following (a) to (d);
		

		
			(a) direct delivery;
		

		
			(b) registered mail or courier service;
		

		
			(c) facsimile communication; or
		

		
			(d) exchange mail service(only limited to the notices between the Lenders and the Agent).
		

		
			(ii) All notices sent, or to be sent, in accordance with above 32.5(i), shall be considered as delivered when the receipt of the notice is confirmed on sender’s facsimile where sent by facsimile and when the notice is actually received where sent by other ways. 
		

		
			 
		

		
			32.6 Changes of the matters to be notified
		

		
			(i) The Lenders and the Borrower shall promptly notify the Agent in written form if they change their trade name or corporate name, representative, agent, signature, seal, address or other matters to be notified to the Agent.
		

		
			(ii) If the notice is delayed or not reached due to failure of the notification of above (i), the notice shall be deemed reached when it should have been reached generally.
		

		
			 
		

		
			32.7 Fund Settlement
		

		
			Any fee and expenses of any payments from any of the parties hereto to the other party/parties hereunder shall be borne by the party who pays.
		

		
			 
		

		
			32.8 Computation of Interest
		

		
			Unless otherwise clearly provided herein, interest hereunder shall be computed on the basis of a year of 365 days and paid for the actual number of days elapsed (including the first day but excluding the last day), and disregarding amounts of less than one (1) JPY. Division shall be carried out in the last. 
		

		
			 
		

		
			32.9 Preparation of Notary Deed
		

		
			The Borrower shall take the required measure to draft a notarial deed clearly states acceptance of the obligations hereunder and their enforceability whenever required by the Agent or the Majority of Lenders.
		

		
			 
		

		
			32.10 Governing Law and Jurisdiction
		

		
			This Agreement shall be governed by and construed in accordance with Japanese law and the court of non-excluding jurisdiction for all disputes arising with regards to this Agreement shall be the Tokyo District Court.
		

		
			 
		

		
			32.11 Language
		

		
			This Agreement shall be made in Japanese and only such Japanese version shall be the official governing version.
		

		
			 
		

		
			32.12 Consultation
		

		
			Matters not stipulated in this Agreement and matters of doubt arising in the interpretation or application of this Agreement shall be settled in good faith between the Borrower and the Lenders through the Agent.
		

		
			

		 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed or to be placed their signatures and seals thereon by their representatives or the agents of their representatives in one (1) original. The original shall be kept by the Agent and the Lenders and the Borrower shall receive a copy thereof from the Agent.
		

		
			 
		

		
			July 26, 2016
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Borrower (address, signature and seal)
		

		
			 
		

		
			 
		

			
					
						 

				
	
					
						 

				
	
					
						FRONTEO, Inc.

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Lenders concurrently serving as Agent (address, signature and seal)
		

		
			 
		

			
					
						 

				
	
					
						 

				
	
					
						The Bank of Tokyo-Mitsubishi UFJ, Ltd.

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Lenders (address, signature and seal)
		

		
			 
		

			
					
						 

				
	
					
						Sumitomo Mitsui Banking Corporation

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

 
		

		
			Lenders (address, signature and seal)
		

		
			 
		

			
					
						 

				
	
					
						The Bank of Yokohama, Ltd.

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Lenders (address, signature and seal)
		

		
			 
		

			
					
						 

				
	
					
						Mizuho Bank, Ltd.

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Lenders (address, signature and seal)
		

		
			 
		

			
					
						 

				
	
					
						Risona Bank, Limited.

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

 

Appendix1 (List of Parties)
		

		
			 
		

		
			List of Parties
		

		
			 
		

		
			1. Borrower
		

			
					
						trade name/ name

					
					
						FRONTEO, Inc.

				
	
					
						address

					
					
						2-12-23, Kounan, Minato-ku, Tokyo

				
	
					
						Contact address

					
					
						7F Meisan Takahama building, 2-12-23, Kounan, Minato-ku, Tokyo 108-0075

					
						TEL:03-5463-6344

					
						FAX:03-5463-6345

				

		
			 
		

		
			2. Agent
		

			
					
						trade name/ name

					
					
						The Bank of Tokyo-Mitsubishi UFJ, Ltd

				
	
					
						address

					
					
						2-7-1, Marunouchi, Chiyoda-ku, Tokyo

				
	
					
						contact address

					
					
						JP Tower 2-7-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005

					
						Administration Office, Financial Solution Division

					
						TEL:03-6259-7689

					
						FAX:03-5252-5941

				

		
			 
		

		
			3. Lenders
		

		
			(i)
		

			
					
						trade name/ name

					
					
						The Bank of Tokyo-Mitsubishi UFJ, Ltd

				
	
					
						address

					
					
						2-7-1, Marunouchi, Chiyoda-ku, Tokyo

				
	
					
						loan office

					
					
						Sinagawa station branch office

				
	
					
						contact address

					
					
						2-16-2, Kounan, Minato-ku, Tokyo 108-0075

					
						First Corporte Division, Shinagawa station branch office

					
						TEL:03-6716-1010

					
						FAX:03-6716-1012

				
	
					
						credit

					
					
						\400 million JPY

				

		
			 
		

		
			(ii)
		

		

		 

 

	
					
						trade name/ name

					
					
						Sumitomo Mitsui Banking Corporation

				
	
					
						address

					
					
						1-1-2, Marunouchi, Chiyoda-ku, Tokyo

				
	
					
						loan office

					
					
						Gotanda Corporate Sales Division

				
	
					
						contact address

					
					
						1-14-10, Higashi-Gotanda, Sinagawa-ku, Tokyo 141-0022

					
						Second Sales Group, Gotanda Corporate Sales Division

					
						TEL:03-3443-6617

					
						FAX:03-3442-7914

				
	
					
						credit

					
					
						\200 million JPY

				

		
			 
		

		
			(iii)
		

			
					
						trade name/ name

					
					
						The Bank of Yokohama,Ltd.

				
	
					
						address

					
					
						3-1-1, Minatomirai, Nishi-ku, Yokohama, Kanagawa

				
	
					
						loan office

					
					
						Tamachi Branch Office

				
	
					
						contact address

					
					
						2F Yajima Building, 3-13-1, Shibaura, Minato-ku, Tokyo 108-0023

					
						Tamachi Branch Office

					
						TEL:03-3474-2965

					
						FAX:03-3474-2926

				
	
					
						credit

					
					
						\200 million JPY

				

		
			 
		

		
			(iv)
		

			
					
						trade name/ name

					
					
						Mizuho Bank,Ltd.

				
	
					
						address

					
					
						1-5-5, Ohteachi, Chiyoda-ku, Tokyo

				
	
					
						loan office

					
					
						Shinagawa Branch Office

				
	
					
						contact address

					
					
						2-2-7, Minami-Shinagawa, Shinagawa-ku, Tokyo 140-0004

					
						Second Liaison Division, Shinagawa Branch Office

				
	
					
						credit

					
					
						\100 million JPY

				

		
			 
		

		
			(v)
		

			
					
						trade name/ name

					
					
						Resona Bank, Limited.

				
	
					
						address

					
					
						2-2-1, Bingo-cho, Chuo-ku, Osaka-city, Osaka

				
	
					
						loan office

					
					
						Shinagawa Branch Office

				

		 

 

	
					
						contact address

					
					
						5-6-6 Minami-Shinagawa, Shinagawa-ku, Tokyo 140-0004

					
						Loan Division, Sihagawa Branch Office

					
						TEL:03-3492-2706

					
						FAX:03-3490-1526

				
	
					
						credit

					
					
						\100 million JPY

				

		
			 
		

		
			
		

		
			

		 

 

Appendix2 (repayment schedule)
		

		
			 
		

		
			Repayment Schedule
		

		
			 
		

			
					
						Principal Repayment Date

				
	
					
						The last day of August, 2017

				
	
					
						The last day of September, 2017

				
	
					
						The last day of October, 2017

				
	
					
						The last day of November, 2017

				
	
					
						The last day of December, 2017

				
	
					
						The last day of January, 2018

				
	
					
						The last day of February, 2018

				
	
					
						The last day of March, 2018

				
	
					
						The last day of April, 2018

				
	
					
						The last day of May, 2018

				
	
					
						The last day of June, 2018

				
	
					
						The last day of July, 2018

				
	
					
						The last day of August, 2018

				
	
					
						The last day of September, 2018

				
	
					
						The last day of October, 2018

				
	
					
						The last day of November, 2018

				
	
					
						The last day of December, 2018

				
	
					
						The last day of January, 2019

				
	
					
						The last day of February, 2019

				
	
					
						The last day of March, 2019

				
	
					
						The last day of April, 2019

				
	
					
						The last day of May, 2019

				
	
					
						The last day of June, 2019

				
	
					
						The last day of July, 2019

				
	
					
						The last day of August, 2019

				
	
					
						The last day of September, 2019

				

		 

 

	
					
						The last day of October, 2019

				
	
					
						The last day of November, 2019

				
	
					
						The last day of December, 2019

				
	
					
						The last day of January, 2020

				
	
					
						The last day of February, 2020

				
	
					
						The last day of March, 2020

				
	
					
						The last day of April, 2020

				
	
					
						The last day of May, 2020

				
	
					
						The last day of June, 2020

				
	
					
						The last day of July, 2020

				
	
					
						The last day of August, 2020

				
	
					
						The last day of September, 2020

				
	
					
						The last day of October, 2020

				
	
					
						The last day of November, 2020

				
	
					
						The last day of December, 2020

				
	
					
						The last day of January, 2021

				
	
					
						The last day of February, 2021

				
	
					
						The last day of March, 2021

				
	
					
						The last day of April, 2021

				
	
					
						The last day of May, 2021

				
	
					
						The last day of June, 2021

				
	
					
						The last day of July, 2021

				
	
					
						The last day of August, 2021

				
	
					
						The last day of September, 2021

				
	
					
						The last day of October, 2021

				
	
					
						The last day of November, 2021

				
	
					
						The last day of December, 2021

				
	
					
						The last day of January, 2022

				
	
					
						The last day of February, 2022

				
	
					
						The last day of March, 2022

				
	
					
						The last day of April, 2022

				

		 

 

	
					
						The last day of May, 2022

				
	
					
						The last day of June, 2022

				
	
					
						The last day of July, 2022

				

		
			 
		

		
			 
		

		
			
		

		
			

		 

 

Exhibit 1 (Application for Loan)
		

		
			 
		

		
			Application for Loan
		

		
			Date: 
		

		
			Dear Lenders
		

		
			(Here “Lenders” mean the Lenders set forth herein at the time of submitting this letter. The same applies hereinafter.)
		

		
			 
		

		
			Attention: Agent Administration Office, Financial Solution Division
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd
		

		
			 
		

		
			(Signature and Seal)
		

		
			(Borrower)
		

		
			 
		

		
			 
		

		
			FRONTEO, Inc. Term Loan Agreement with Commitment Perion for one (1) billion JPY
		

		
			 
		

		
			 
		

		
			In accordance with Article4 of the Term Loan Agreement with Commitment Period, dated July 26, 2016 for FRONTEO, Inc. (hereinafter the “Borrower”) through The Bank of Tokyo-Mitsubishi UFJ, Ltd as an Agent (hereinafter “this Agreement”), we, as a Borrower, hereby require execution of this Several Lending to be executed on the following date and for the amount of this Several Lending.
		

		
			 
		

		
			Desired Execution Date:
		

		
			Amount of the this Several Lending: JPY
		

		
			 
		

		
			The Borrower shall represent and warrant that, as of the Desired Execution Date of the this Several Lending, (i) events stipulated in each subsection in Section19 are true and correct, and (ii) any events stipulated in each subsection of Section21.1 or Section21.2 hereof, or any events constituting such events by notification and/or time passage do not occur or execution of the this Several Lending do not cause such events.
		

		
			 
		

		
			 
		

		
			Any term in this letter has same meaning as the terms define in this Agreement except otherwise defined in this letter.
		

		
			 
		

		
			

		 

 

Exhibit 2 (Confirmation Letter)
		

		
			 
		

		
			Confirmation Letter
		

		
			 
		

		
			Date: 
		

		
			Dear Lenders
		

		
			(Here “Lenders” mean the Lenders set forth herein at the time of submitting this letter.)
		

		
			 
		

		
			Attention: Agent Administration Office, Financial Solution Division 
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd
		

		
			 
		

		
			 
		

		
			 
		

		
			(Signature and Seal)
		

		
			(Borrower)
		

		
			 
		

		
			 
		

		
			FRONTEO, Inc. Term Loan Agreement with Commitment Perion for one (1) billion JPY
		

		
			 
		

		
			 
		

		
			With respect to execution of Term Loan Agreement with Commitment Period, dated July 26, 2016 for FRONTEO, Inc.(hereinafter the “Borrower”) through The Bank of Tokyo-Mitsubishi UFJ, Ltd  as an Agent(hereinafter “this Agreement”), and loan hereunder, the Borrower, hereby confirm that all necessary procedures are completed in accordance with any laws or ordinances and any company rules of the Borrower.
		

		
			Any term in this letter has same meaning as the terms define in this Agreement except otherwise defined in this letter.
		

		
			 
		

		
			
		

		
			

		 

 

Exhibit 3 (Receipt)
		

		
			 
		

		
			 
		

		
			 
		

		
			Receipt
		

		
			 
		

		
			Date:
		

		
			 
		

		
			Dear Lenders
		

		
			(Here “Lenders” mean the Lenders listed below. The same applies hereinafter.)
		

		
			 
		

		
			Attention: Agent Administration Office, Financial Solution Division 
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd
		

		
			 
		

		
			(Signature and Seal)
		

		
			(Borrower)
		

		
			 
		

		
			FRONTEO, Inc. Term Loan Agreement with Commitment Perion for one (1) billion JPY
		

		
			/ Receipt of Loan
		

		
			 
		

		
			We, borrowed from each Lenders as follows and confirmed the loan today.
		

		
			 
		

		
			Total Loan Amount JPY
		

		
			 
		

			
					
						Lenders

					
					
						Loan Amount

				
	
					
						The Bank of Tokyo-Mitsubishi UFJ, Ltd

					
						Sumitomo Mitsui Banking Corporation

					
						The Bank of Yokohama,Ltd.

					
						Mizuho Bank,Ltd.

					
						Resona Bank, Limited.

					
					
						JPY

					
						JPY

					
						JPY

					
						JPY

					
						JPY

				

		
			 
		

		
			
		

		
			

		 

 

Exhibit 4
		

		
			 (Report on Compliance Status regarding the provision of Collection from the Third Party)
		

		
			 
		

		
			Report on Compliance Status regarding the provision of Collection from the Third Party
		

		
			 
		

		
			Date:
		

		
			Dear Lenders
		

		
			(Here “Lenders” mean the Lenders set forth herein at the time of submitting this report. The same applies hereinafter.)
		

		
			 
		

		
			Attention: Agent Administration Office, Financial Solution Division 
		

		
			The Bank of Tokyo-Mitsubishi UFJ, Ltd
		

		
			 
		

		
			(Signature and Seal)
		

		
			(Borrower)
		

		
			 
		

		
			FRONTEO, Inc. Term Loan Agreement with Commitment Perion for one (1) billion JPY
		

		
			 
		

		
			In accordance with Section20.1(iii) of Term Loan Agreement with Commitment Period, dated July 26, 2016 for FRONTEO, Inc.(hereinafter the “Borrower”) through The Bank of Tokyo-Mitsubishi UFJ, Ltd (hereinafter the “Agent”) as an Agent(hereinafter “this Agreement”), we, report as follows the compliance status on the matters provided in Section30.1 for a period from and including [the execution date of this Agreement / starting date of the applicable fiscal period in Section1 below] [*Select the execution date of this Agreement for the first report] up to and including the submission date of this report (hereinafter the “Report Period”). 
		

		
			Any term in this letter has same meaning as the terms define in this Agreement except otherwise defined in this letter.
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Applicable Fiscal Period: The fiscal period ending in Month/ Year.

		
			 
		

			
	
			
				 2.
			

			
	
			
			Report regarding the provision of Collection from the Third Party in Section30.1 for the Report Period.

		
			 
		

			
	
			
				 ¡
			

			
	
			
			We do not appoint any third party as a guarantor for the liabilities hereunder (including real guarantee but excluding the real guarantee as revolving guarantee or revolving collateral), or we do not allow any third party to assume any liabilities hereunder or its fulfillment.

		
			 
		

			
	
			
				 ¡
			

			
	
			
			We appointed a third party as a guarantor for the liabilities hereunder (including real guarantee but excluding the real guarantee as revolving guarantee or revolving collateral), or we allowed a third party to assume the liabilities hereunder or its fulfillment, but we obtained prior written consents of the Agent and all Lenders.

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