Business Conduct Guidelines

7. Strictly Manage Information and Assets

(1) We shall maintain a correct file of all business records, including accounting records.

• We shall ensure the accuracy of accounting records in compliance with the relevant accounting standards and related laws. We shall also keep other business records and data, and shall report correctly, based on facts. We shall understand that fraud, forgery, misleading interpolation, and the improper destruction of records or data may cause serious violations of law, may lead to misjudgment by management and may also result in major damage to the company. Therefore, we shall not tolerate and shall earnestly strive to prevent such conduct.
• We shall not intentionally exaggerate individual, divisional/departmental, or company performance contrary to fact.

(2) We shall conscientiously implement internal control procedures.

• We shall perform accounting procedures strictly, following the appropriate internal checking system. We shall review the adequacy and effectiveness of the system and revise it as necessary. When revising the system, we shall follow the appropriate and required procedures.
• We shall earnestly facilitate and assist audits by our corporate auditors and accountants, tax examinations, and other business audits and inspections so as to support accurate financial statements and a proper audit and inspection. In the event that a public agency investigates or inspects our business records due to suspicion of a violation of the law, we shall cooperate with such agencies for swift clarification of the truth.
• We shall faithfully exercise our individual authorities, and not make decisions that are beyond our respective authority. We shall submit reports as designated without delay.

(3) We shall carefully manage the company's confidential information, intellectual property, and tangible and intangible assets. We shall respect and shall not unlawfully or improperly obtain or use confidential information, personal information or the intellectual property of others.

• We shall secure and protect the results of our R&D and technologies as intellectual property, and shall efficiently utilize and exercise all rights associated therewith.
• All intellectual property and other rights of invention, designs and literary works developed or acquired as a result of our work belong to the company. We shall strive to treat these rights appropriately, and ensure that such rights are not used unlawfully by others.
• We shall prevent the leaking of confidential information and in particular we shall prevent such leaking due to careless management. We shall be careful not to discuss the company's confidential information with or permit it to be disclosed to unauthorized persons, taking particular care in places where a third party is present, for example, outside on cellular phones, in transportation facilities or in restaurants. To prevent viruses and hackers from getting into our computer system, we shall implement regular virus checks and manage passwords.
• No employee or former employee of the company shall leak confidential information concerning the company, either during or following his employment.
• Any confidential information that belongs to others shall be obtained from its proper owners or from other legitimate sources in a lawful and appropriate way, and we shall maintain accurate and specific records of receipt. We shall use such confidential information in compliance with agreements and usage conditions to protect confidentiality. In particular, information sourced from the internet, newspapers, magazines, and business documents shall be treated carefully so as not to commit wrongful acts such as plagiarism, piracy, or violation of copyrights due to the unauthorized usage of photographs of models or other personalities for advertising. We shall refrain entirely from the illegal copying of computer software.
• We shall adopt policies in compliance with relevant laws, regulations and guidelines to thoroughly control protected personal information.
• We shall efficiently utilize the company's various assets both tangible and intangible, and we shall properly maintain and control such assets so that they can be utilized in business activities whenever necessary. We shall endeavor to prevent loss, theft, or illegal use of our assets.
• We shall not use the company's assets (i.e. equipment, facilities, vehicles, samples, products, computer systems, software, etc.) for any purpose other than for business related activities or such other activities as may be authorized by our supervisors. We shall handle these assets in accordance with internal rules. In particular, communication and correspondence via the Internet or via other company communication systems shall be limited to proper business related purposes, and shall not to any substantial extent be for personal use.
• Without permission from our supervisors, we shall not bring to or keep at the company, any personal belongings other than those that are necessary for our duties. We shall not mix our personal belongings with the company's assets, nor engage in any conduct which undermines safety.