精东影业

Requirements for the Independence and Neutrality of Outside Directors

• 1.
  An Outside Director must neither currently be nor in the past have been an Officer (see Note 1 below) or an employee of 精东影业or any of its affiliated companies (鈥溇�东影业Group鈥�).
• 2.
  An Outside Director鈥檚 economic independence and neutrality from 精东影业Group and specified enterprises, etc., is ensured by satisfying the following requirements:

  • 1)
    None of the following shall be applicable to the Outside Director within the past five years:

    • a.
      Having been an Officer or employee of an enterprise, etc., of a Major Business Partner (see Note 2 below) of 精东影业Group, or otherwise an Officer or employee of an enterprise, etc., conducted by a Major Business Partner of 精东影业Group;
    • b.
      Regardless of the value of the transaction, having been an Officer or employee of an enterprise, etc., with whom 精东影业conducts necessary transactions, Eisai鈥檚 audit corporation, or any other enterprise, etc., that has a relationship of substantive interest with 精东影业Group;
    • c.
      Having been an Officer or employee of a person or an enterprise, etc., who is a Major Shareholder (see Note 3 below) of 精东影业or of an enterprise, etc., in which 精东影业Group is a Major Shareholder;
    • d.
      Excluding Officer compensation from 精东影业Group, having directly received a Large Amount (see Note 4 below) of money or other property as a provider of professional services, etc. (i.e., a consultant, a lawyer, an accountant, etc.);
    • e.
      Having received a Large Amount of money or other property from 精东影业Group as a contribution or having been an Officer or employee of an entity, organization, etc., that has received such a contribution; or
    • f.
      Having been an Officer or employee of an enterprise, etc., which enterprise, etc., had an Officer, etc., who was at the same time an Officer, etc., of 精东影业Group;
  • 2)
    Even if more than five years has passed, the Nomination Committee must evaluate (see Note 5 below) the relationship with the enterprise, etc., in each item of the preceding clause 2(1) and determine that independence and neutrality is ensured; and
  • 3)
    In addition, from the perspectives of independence and neutrality, there must not be any other reason that would impede the performance of the duties as an Outside Director.
• 3.
  An Outside Director must not be a close relative of, or have a similar relationship to (see Note 6 below), or otherwise derive such person鈥檚 sole livelihood through a relationship with, any of the following persons:

  • 1)
    An Officer or Important Employee (see Note 7 below) of 精东影业Group; or
  • 2)
    Based on the requirements of paragraph 2 of this Article above, those as determined by the Nomination Committee whose independence and neutrality from 精东影业Group or from specified enterprises, etc., are not ensured.
• 4.
  An Outside Director must not have reason for the threat arising of a significant conflict of interest in the performance of the duties as a Director, and the judgment of an Outside Director must not be threatened to be affected by a relationship of interest.
• 5.
  The requirements for the independence and neutrality of Outside Directors provided in this Article continue to apply after the appointment as Director.

• Note 1:
  鈥淥fficer鈥� means Director, Corporate Officer, Statutory Auditor and other officers, etc.
• Note 2:
  鈥淢ajor Business Partner鈥� means (i) an enterprise, etc., for which 2% or more of its or the 精东影业Group鈥檚 sales in any of the past five fiscal years have been sales, or compensation for work or transactions, to or from, as applicable, the 精东影业Group, and (ii) a financial institution which has outstanding loans to the 精东影业Group whose principal aggregate amount equals or exceeds 2% of the 精东影业Group鈥檚 consolidated total assets.
• Note 3:
  鈥淢ajor Shareholder鈥� means a person who, or an enterprise, etc., that, directly or indirectly holds the voting rights to 10% or more of the general voting rights in any of the past five fiscal years.
• Note 4:
  鈥淟arge Amount鈥� means, in any of the past five fiscal years: \10 million in the case of remuneration for professional services or compensation for work or transactions, \10 million in the case of contributions, or the greater of 2% of the total income or operating income of entities or organizations receiving contributions.
• Note 5:
  鈥淓valuate鈥� means the Nomination Committee鈥檚 evaluation regarding the Outside Director鈥檚 relationship with the relevant enterprise, etc., based on the following factors:

  • 1)
    Shareholding or stock options ownership in the relevant enterprise, etc.;
  • 2)
    Post-retirement remuneration, company pension, etc., from the relevant enterprise, etc.; and
  • 3)
    Human interaction between the 精东影业Group and the relevant enterprise, etc.
• Note 6:
  鈥淎 close relative of, or have a similar relationship to鈥� means a relative within two degrees of kinship or having a human relationship that can be reasonably recognized as that which would impede the execution of the individual鈥檚 duties as an Outside Director, such as a personally interested individual.
• Note 7:
  鈥淎n Important Employee鈥� means an employee with a title of at least the head of a section.