Dear Representatives of Nitto group

Dear Representatives of Nitto group companies,

In consideration of the services to be rendered by (Nitto) to Nitto group companies and difficult to apply a direct-charge method, each Nitto group company agrees and undertakes to pay the service fees as IGS (Intra-Group Services) determined by indirect-charge method (Nitto group has implemented this system since FY2007).
Now the conclusion of the new service agreement for IGS became necessary since the allocation basis has been revised to reflect more adequately the actual provision of the IGS.
At the same time, since the IGS rendered by (Nitto) have changed in the past ten years, the descriptions of IGS and Related Party Group has been revised.
Please find the attached files as the new service agreement which you can see the changes highlighted in red.

This revision of allocation basis has already informed in the notice of "FY2016 Budget of Intra-Group Service" in January 2016 and reflected to the budget figures of each Nitto group company.
Although the new service agreements for IGS should have concluded before the start of FY 2016, our procedure was delayed and the request to you became this timing.
Please note that the effective date of the new agreement is April 1st 2016. We will appreciate your understanding.

We are going to send two sets of the new service agreements signed by CFO (Takeuchi) in this week.
Upon arrival, please sign both and return one to us.
We would appreciate your cooperation in this matter.