Regarding the procedure for termination of employment

November 26, 2007

To : Employees of Nova Corporation

Bankrupt company Nova Corporation: Trustee in bankruptcy Lawyer Toshiaki Higashibata; Trustee in bankruptcy Lawyer Noriaki Takahashi

1. Regarding the notice of dismissal

Following Nova Corporation receiving a decision for the commencement of bankruptcy proceedings on November 26th 2007 at the Osaka District Court, we are giving notice of termination of employment as of November 30th to those who have not yet resigned from the company.

As already notified through the information seminars that were held on November 9th and 10th, and as later notified through the website, in principle those employees of Nova Corporation who wish to be employed by the sponsor, G.communication Co., Ltd. (employment will actually be with the group company G.education Co., Ltd.) are employed after attending an interview. For those who would like employment with G.education but have not yet applied, please apply to G.education promptly.

Contact information concerning employment:

[Japanese nationals] Tokyo Jinji TEL 03-6688-6565（In the information enclosed in the Notice of Dismissal, there was an error in Tokyo Personnel telephone number for Japanese staff. The number should be 03-6688-6565, not 03‐6686-6565 as was written in the letter. We apologize for this error.）/ Osaka Jinji TEL 06-7688-0100

[Foreign nationals] GEDU Somu Jinji Tokyo / Osaka Gaiji staff: Tokyo: TEL 03-6688-4441 / Osaka TEL 06-7688-0404

Due to the circumstances of processing the paperwork, it is possible that a dismissal notice may be sent to those who have already submitted a resignation notice and resigned from Nova Corporation. In this case the resignation that has already been submitted will be valid.
Also, if there are any changes to your address or contact information, please notify the following contact point to ensure that procedures go smoothly in future.

Contact point to notify of change of address and/or contact information:: Attention to Jinji Kanri, the Office of the Trustees in Bankruptcy, Bankrupt Company Nova Corporation, Nishi Tenma Asahi Bldg 2nd Floor, 10-14 Nishi Tenma 1-chome, Kita-ku, Osaka-shi Fax: 06-6360-6766

2. Regarding employment insurance

For those unable to find new employment right away and who are seeking employment, unemployment benefits will be paid from the Employment Insurance scheme, according to the period of enrolment.

Please go to the public job center (Hello Work) with jurisdiction for your home address and go through the necessary procedures, with a 'Rishokuhyo' (letter of release) sent by Nova and other necessary documents listed on the back of the 'Rishokuhyo'.

The location of the Hello Work office with jurisdiction for your address can be found on the website of the Ministry of Health, Labour and Welfare(http://www.mhlw.go.jp/kyujin/hwmap.html).

The 'Rishokuhyo' of those who have resigned will be sent as promptly as possible, with priority being given to those who have not secured new employment.

3. Information regarding those enrolled in Shakaihoken (social insurance); Kenko Hoken (health insurance) and Kosei Nenkin Hoken (employee's pension insurance)

With the expiration of the health insurance status (the day following termination of employment) Nova's health insurance card cannot be used. Please return your health insurance card (including the cards for any dependent family members) to Nova at the end of your employment.(Return address: Jinji Kanri, the Office of the Trustees in Bankruptcy, Bankrupt Company Nova Corporation, Nishi Tenma Asahi Bldg 2nd Floor, 10-14 Nishi Tenma 1-chome, Kita-ku, Osaka-shi).

(1) For those who have already obtained new employment

Those who have already obtained new employment enrol in Kenko Hoken and Kosei Nenkin Hoken at the new employer to receive the set benefits.

(2) For those who have not obtained new employment

Those who have not obtained new employment should either go to the social insurance office with jurisdiction for your home address and complete the procedures for 'Nin-i Keizoku' 'voluntary continuation' (please note that this procedure should be done within 20 days of the resignation) or join 'Kokumin Kenko Hoken' (National Health Insurance) by going to the city/ward office with jurisdiction for your home address and following the procedures.

If you follow the procedures to enrol in Kenko Hoken 'Nin-i Keizoku', the premium that you have to pay will be about twice the current amount (there is an upper limit, the maximum premium amount for Kenko Hoken is 22,960 yen) however the premiums for 'Kokumin Kenko Hoken' differ between different cities/wards/etc so please contact the administrative office directly.

If you follow the procedures for 'Nin-i Keizoku', you will be able to receive almost the same benefits as when you were employed, including those for your dependent family members. You can find the location of the city/ward office with jurisdiction for your home address at the following website: (http://www.sia.go.jp/sodan/madoguchi/kankatsu/index.htm)

Also, if a family member is enrolled in Kenko Hoken (health insurance), you can be a dependent of the family member. However, there are certain conditions for this; it is, for example, not possible to enroll during the period the person is receiving a benefit such as the unemployment insurance benefit. Please contact your nearest social insurance office for details.

Those who are not able to enrol in Kosei Nenkin enrol in 'Kokumin Nenkin' Please go through the procedures at the city/ward office for your address.

4. Regarding Replacement Payment

Regarding the unpaid wages and retirement payment up to the decision on the commencement of bankruptcy proceedings, 80% of that will be reimbursed by the Independent Administrative Corporation, Japan Labour Health and Welfare Organization (however, there is a maximum limit according to age

For those who were ordered to stay at home from October 26 onward, 80% of the absence allowance ( which is 60% of the 'average wage' stipulated in law), and not the full wage during the period, will be reimbursed by the Independent Administrative Corporation - the Japan Labour Health and Welfare Organization. Neither bonus nor dismissal notice allowance are subject to the replacement payment. Although we have discussed this with the Organization in order to have as wide a range of replacement payments covered as possible, the above conclusion was reached. We appreciate your understanding of this.

There is an explanation of the system on the organization's website (http://www.rofuku.go.jp) for your reference.

We are currently discussing the procedures and the level of the coverage with the organization so that the replacement payments can be processed as promptly and accurately as possible, however it is expected to take some time to prepare and create the necessary documents. We will provide further information through the home page on the details of the procedures when they are confirmed.

5.Job Placement Service at Employment Security Offices (Hello-Work) with Interpreters

Employment Security Offices (Hello-Work) with interpreters are located as designated in the enclosed handout, "Questionnaire & handout for foreign instructors who want to find jobs other than NOVA"

Instructors who need job counseling, job placement, etc. with interpreters are advised to come to those offices, according to the guidance in the handout.

Questionnaire & handout for foreign instructors who want to find jobs other than NOVA (Employment Security Offices) PDF