The California Transparency in Supply Chains Act of 2010

1. Verification. Daesang conducts periodic evaluations of vendors in its supply chain. As a matter of policy, larger, prominent suppliers in the United States, Europe, Asia and other developed countries are considered to be low risk for violating slavery and human trafficking laws. Daesang has not employed a third party for verification.

2. Audit. As a matter of principle, Daesang expects all of its vendors and supplier throughout the supply chain to adhere to applicable laws in the jurisdictions where they conduct business. Daesang depends on its vendors to audit their own business practices for compliance with applicable laws and regulations. Daesang reserves the right to complete an additional independent audit.

3. Certification. Daesang provides its policy statement against human trafficking and slavery to all of its vendors and in some instances vendors are asked to provide a written statement certifying that the ingredients and/or products they supply to Daesang are made in compliance with the laws regarding human trafficking and slavery in the countries where they conduct business.

4. Accountability. Daesang employees managing procurement and supply chain matters are asked to apprise vendors of Daesang’s policy on human trafficking and slavery and are also instructed to further investigate vendors if compliance with such laws are called into question.

5. Training. Daesang has trained appropriate personnel regarding their role in preventing human trafficking and slavery as well as identification of risk.