Defendant

B Imprisonment with prison labor for three years and for two years, each of the defendants A shall be punished by imprisonment.

However, from the date this judgment became final and conclusive, Defendant.

Punishment of the crime

[criminal records] Defendant B was sentenced to a suspended sentence of two years on January 18, 2013 to imprisonment with prison labor for a violation of the Act on the Registration of Loan Business, etc. and the Protection of Financial Users at the Seoul High Court on January 18, 2013, and the judgment became final and conclusive on the 26th of

[Status of Related Persons]

1. Defendant B operated L by a lending company located in Gangnam-gu Seoul Gangnam-gu Seoul, and was a bondholder who lends money to KOSDAQ-listed companies and received interest profits.

2. From November 14, 2008 to March 29, 2010, Defendant A served as the representative director of M Co., Ltd. (hereinafter “Co., Ltd.”) from the time when the second title of the Co., Ltd. was omitted).

3. The case is pending after being transferred to the Seoul Western District Court after being separated from the prosecution as the N Joint Defendant.

From November 14, 2008 to February 22, 2010, M was in service as a director, Defendant A (from November 14, 2008 to March 29, 2010) andO (from March 30, 2010 to July 14, 2010) who actually operates M under the name of the representative director was in charge of the affairs such as company personnel, business, finance, and accounting.

[Criminal facts]

1. The background of the crime was that while operating P and Q Co., Ltd., the former representative director, etc. conducted physical embezzlement to a new listed company due to the difficulties in managing the company, M&A was not good at the time, and M&A became aware of the merger of the company listed on the KOSDAQ as a material in the A market.

After acquiring M, N immediately settled the debt with funds raised by capital increase for consideration, and again sold M and promote the acquisition of M with mind as an instrument.

N on November 14, 2008, was appointed as a director at a temporary general meeting of shareholders, and Defendant A was appointed as a joint representative director with R at the board of directors on the same day.

Since then, around January 2009, N paid a total of KRW 2.5 billion to V who operates U as a bond holder of M&S Co., Ltd. (hereinafter “S”), a bond holder of M&S Co., Ltd. (hereinafter “S”).