Advertising Terms and Conditions

These Advertising Terms and Conditions (hereinafter referred to as the "Terms and Conditions") stipulate matters that applicants for advertisement placement and placement (hereinafter referred to as the "Applicant") must comply with when Kids Scope Inc. and/or its affiliates designated by Kids Scope Inc. (hereinafter collectively referred to as the "Company") solicit, sell, and place (including by distribution) advertising space on the picture book app "KIKASETE" or other application software provided by the Company (hereinafter referred to as the "Company App").

• Article 1 (Advertising Agreement)

  1. When applying for individual advertising placements, the Applicant shall agree to the terms and conditions of these Terms and Conditions and then apply in accordance with the Company's designated procedures as set forth in paragraph 3 of this Article. By submitting an application to the Company, the Applicant shall be deemed to have agreed to all of the contents of these Terms and Conditions.
  2. When the Applicant applies for advertising and the Company expresses its intention to accept the application, an advertising agreement (hereinafter referred to as the "Advertising Agreement") will be established, with the terms and conditions of these Terms and Conditions as its contractual conditions.
  3. To apply, the applicant must fill in or complete the necessary information in the form prescribed by our company and send it in the manner prescribed by our company. Upon receiving this, our company will accept the application in the manner prescribed by our company and secure the posting space.
  4. If the Company has separately concluded an individual contract with the Applicant, the terms and conditions of the individual contract shall be the terms and conditions of the Advertising Agreement in addition to the contents of these Terms and Conditions. However, if the individual contract contains provisions that differ from these Terms and Conditions, the provisions of the individual contract shall take precedence.
  5. The Company may change any provision of these Terms and Conditions at any time. However, for advertising contracts that have already been concluded, the terms and conditions in effect on the date of conclusion of the advertising contract shall apply.

• Article 2 (Advertising)

  1. When the Applicant submits or changes the manuscript or data required for advertising, it must do so by the date and time specified by the Company in the format and manner specified.
  2. If the advertisement specified in the preceding paragraph is not posted due to the applicant's willful misconduct or negligence, the Company shall be relieved of its obligations under the advertising contract and may charge the applicant advertising fees for the period during which the advertisement could not be posted.

• Article 3 (Changes to advertising materials and rights processing)

  1. Even after an advertising contract has been concluded, if we determine that the content, format, or design of an advertisement that we have received violates or is likely to violate various laws and regulations, or that it violates our regulations and guidelines, we may request that you change the content, format, or design of the advertisement related to the application.
  2. Regardless of whether publication has commenced or not, if the applicant refuses our request for changes pursuant to the preceding paragraph, or if the applicant fails to make the changes immediately, our company may terminate the advertising contract without incurring any legal liability to the applicant, including liability for breach of contract or compensation for damages.
  3. After the posting ends, we will delete the image data and audio data required for the posting within seven business days.

• Article 4 (Applicant's Responsibilities)

  1. The applicant agrees that he/she shall bear all responsibility for the content of the advertisement.
  2. The applicant shall guarantee to the Company that the advertising content of the application does not infringe the rights of third parties, and that all copyrights and other property rights and personal rights relating to the content have been cleared.
  3. The applicant guarantees that they will comply with the regulations, guidelines, and other conditions set forth by our company in relation to advertising. Our company shall not be held responsible for the accuracy, usefulness, legality, or non-infringement of third party rights regarding advertising or advertising content.
  4. If a dispute arises with a third party or a complaint is received in connection with the preceding two paragraphs, the Applicant shall resolve the dispute at its own responsibility and expense.

• Article 5 (Limits of our exemption and liability)

  1. If we are unable to fulfill all or part of our obligations under the advertising contract due to causes not attributable to our company, such as the shutdown of lifelines and communication networks due to disasters or accidents, the failure of transportation means, force majeure such as power outages, communication line accidents or natural disasters, non-performance by communication carriers, system malfunctions of internet infrastructure or other servers, or the occurrence of emergency maintenance, we shall not be held liable. However, this does not apply if the failure is due to our willful misconduct or gross negligence, in which case the applicant shall not be liable for payment for the period during which we did not advertise.
  2. If a malfunction occurs in our app, we may suspend the display of the advertisement, and in this case, we shall not be liable for default.
  3. If, for any reason, the Company is liable for breach of contract or compensation to the Applicant in connection with the Advertising Agreement, the amount of such compensation shall be limited to the advertising fee set forth in Article 7 of this Agreement.

• Article 6 (Copyright)

  1. The copyright and all other rights relating to the manuscript submitted by the Applicant in accordance with Article 2 shall be reserved by the Applicant, except for the manuscript or data proposed by our company and advertisements using voice actors designated by our company.
  2. The Company may use the applicant's submitted advertising materials and the applicant's name in its advertising space recruitment and sales activities, and the applicant shall agree to this in advance.

• Article 7 (Advertising fees and payment methods)

  1. Advertising fees will be the amount specified in each application form.
  2. After the advertising contract is concluded, the Company will issue an invoice to the Applicant for the advertising fee, and the Applicant will pay the full amount of the advertising fee invoiced by the Company by the due date specified by the Company.
  3. Notwithstanding the provisions of the preceding paragraph, the Company may change the payment terms if it deems it particularly necessary within a reasonable scope. In such cases, the Company will notify the Applicant of the changed payment terms.
  4. Payment of the advertising fee set forth in this Article shall be made by transferring the advertising fee plus consumption tax and local consumption tax to a bank account specified by our company. Bank transfer fees shall be borne by the applicant.

• Article 8 (Cancellation Fees)

  1. In the event of a cancellation under the advertising contract, the Company will charge the Applicant a cancellation fee. The Applicant will also pay the cancellation fee plus an amount equivalent to the actual costs that the Company has paid or is obligated to pay up to that point.
  2. Cancellation fees will be capped at 30% of the advertising fee, and the terms and conditions of the individual application form will take precedence.

• Article 9 (Effects of late payment)

  If the Applicant delays payment as set forth in Article 7, the Company may suspend or not perform all advertising under the Advertising Agreement until payment is made by the Applicant. In such cases, the Applicant shall not be entitled to claim damages from the Company for the non-performance of said advertising.

• Article 10 (Termination of Contract)

  1. If the applicant falls under any of the following items, the Company may terminate the advertising contract without requiring any notice or other procedures from the applicant. In such cases, the Company may claim damages from the applicant.
     1. If the Company determines that there has been a significant change in the applicant's credit status. 2. If
     the Company determines that the applicant's business or operations are in violation of public order and morals or various laws and regulations.
     3. If the applicant is not present at the address stated in the application form and the Company is unable to contact the applicant.
     4. If the Company determines that the advertising content is inappropriate.
     5. If the applicant violates the provisions of these Terms and Conditions, such as Article 3, Paragraph 2, and fails to correct the violation despite being advised to do so.
     6. If the applicant is found to have ties with anti-social forces.
  2. Notwithstanding Article 8, the Applicant may terminate the Advertising Agreement at any time by paying the full amount pursuant to Article 7. However, if the termination of the Advertising Agreement results in damages exceeding the full amount pursuant to Article 7, the Company may claim that amount from the Applicant.

• Article 11 (Confidentiality)

  The Applicant shall not provide, disclose or leak to any third party any confidential information of the Company that the Applicant learns in connection with the advertisement placement or advertising contract. However, confidential information means all information that the Company clearly indicates as confidential at the time of disclosure, whether orally, in writing, or by clearly stating on the surface of a recording medium.

• Article 12 (Termination of App Provision or Services, etc.)

  1. The Company may, at its own discretion, terminate the provision of the Company App, or the services related to the Company App, or the recruitment, sale, and posting of advertising space, in whole or in part.
  2. In the case of the preceding paragraph, the Company will make a public announcement on the website provided by the Company or notify the Applicant by email or mail at least three months in advance.
  3. If the provision of the app and services related to our app are terminated pursuant to the preceding two paragraphs, the advertising contract will also terminate on the day of such termination.

• Article 13 (Jurisdiction)

  Any litigation regarding the Advertising Agreement shall be submitted to the Tokyo District Court or the Tokyo Summary Court as the court of first instance with exclusive jurisdiction.

• Article 14 (Consultation)

  If any matter not specified in these Terms and Conditions or any doubt arises regarding the interpretation of any provision of these Terms and Conditions, the Company and the Applicant shall negotiate in good faith and resolve the matter promptly.

End

Formulated on March 27, 2025