The Corporation Law of Japan provides that an amount equal to 10% of distributions from retained earnings paid by the
Company and its Japanese subsidiaries be appropriated as a legal reserve. No further appropriations are required when the total amount of the additional paid-in capital and the legal reserve equals 25% of their respective stated capital. The Corporation Law of Japan also provides that additional paid in capital and legal reserve are available for appropriations by
resolution of the shareholders. Certain foreign subsidiaries are also required to appropriate their earnings to legal reserves
under the laws of their respective countries.