At the general shareholders’ meeting, I was elected as one of directors of Goko Corporation and was appointed as President & CEO at the board meeting both held on Wednesday, August 11, 2010. At the same time, as described in “About us” below, the new principal officers were elected.

Kohei Goto remains as Chairman. I, Izumi Nakayama, assumed the position of President & CEO after I had resigned the director of Tensho Electric Ind., Co. Ltd., which is also a major Sanko group company and listed on Tokyo Stock Exchange.
A newly appointed director, Takemichi Watanabe is CEO of Sanko Textile, and a newly appointed auditor, Yasuhiko Takeda is one of directors of Sanko.
As a Sanko group company, we will continue to serve in aerospace and defense industry in Japan as it has been doing until now.

In the meantime, Mr. A. Aomura, the former CEO who has been serving in aerospace and defense business field almost for 40 years, has been appointed as one of advisors who continuously supports the new management.

There was an unexpected happening last year that our long time and only US partner who had worked with us for more than 10 years since our foundation had decided to withdraw from Japanese market.
That was very unfortunate event for us. However, Goko leveraged the situation and developed new business partners by successfully acquiring business rights from more than 20 manufacturers
and suppliers in US and in Europe. Our professional staff has made a great contribution to its development. We could proudly say that it was the year of Goko’s regeneration.

Goko always strive to conduct business as the “Solution Provider” for the customers in government and private sectors of the aerospace and defense with its expertise and experience.

August 2010

Izumi Nakayama
President & CEO

The Principals of GOKO CORPORATION have adopted the following Code of Conduct with respect to all of their commercial transactions, whether local or international:

LOCAL AND FOREIGN LAWS: No officer, employee or representative of GOKO CORPORATION may, directly or indirectly, break or seek to evade the laws or regulations of the United States or the laws or regulations of any country in, through or with which it seeks to do business. That an illegal act is a “customary business practice” in any country is not sufficient justification for violation of this provision.

GOKO CORPORATION observes laws inter alia;

■ Foreign Corrupt Practices Act
■ Antitrust Laws
■ International Traffic In Arms Regulations (ITAR)

BRIBERY and FACILITATING PAYMENTS: No officer, employee or representative of GOKO CORPORATION may, directly or indirectly, offer or provide a bribe and all demands for bribes must be expressly rejected.

Bribery includes any offer, promise, or gift of any pecuniary or other advantage, whether directly or through intermediaries, to a public official, political party, political candidate or party official or any private sector employee, in order that the official or employee act or refrain from acting in relation to the performance of their duties, in order to obtain or retain business or other business advantage.

GOKO CORPORATION and its officers, employees and representatives shall not offer or make facilitating payments to government officials in order to encourage them to expedite a routine governmental task that they are otherwise required to undertake. GOKO CORPORATION shall have discretion to deviate from this prohibition if the government action sought is an urgent matter concerning health or safety. GOKO CORPORATION recognizes that extortion is widespread and that participation by the business community increases demand for facilitating payments.

KICK-BACKS: No officer, employee or representative of GOKO CORPORATION may “kick-back” any portion of a contract payment to employees of other parties to a contract or use other vehicles such as subcontracts, purchase orders or consulting agreements to channel payments to government officials, political candidates, employees of other parties to a contract, their relatives or business associates.

A “kickback” is a particular form of bribe which takes place when a person entrusted by an employer or public function has some responsibility for the granting of a benefit and does so in a way that secures a return (kickback) of some of the value of that transaction or benefit for that person without the knowledge or authorization of the employer or public body to which the person is accountable.

CONFLICTS OF INTEREST: Officers, employees and representatives of GOKO CORPORATION shall avoid any relationship or activity that might impair, or appear to impair, his or her ability to render objective and appropriate business decisions in the performance of his or her job.

POLITICAL CONTRIBUTIONS: Neither GOKO CORPORATION nor any of its officers, employees or representatives may make a political contribution in order to obtain an unlawful business advantage. GOKO CORPORATION shall comply with all public disclosure requirements.

PHILANTHROPIC CONTRIBUTIONS: GOKO CORPORATION and its officers, employees and representatives may make contributions only for bona fide charitable purposes and only where permitted by the laws of the country in which the contribution is made. Contributions made in order to obtain an unlawful business advantage are prohibited.

EXTORTION: GOKO CORPORATION and its officers, employees and representatives shall reject any direct or indirect request by a public official, political party, party official, or private sector employee for undue pecuniary or other advantage, to act or refrain from acting in relation to his or her duties.

GIFTS, HOSPITALITY AND ENTERTAINMENT: GOKO CORPORATION and its officers, employees and representatives shall avoid the offer or receipt of gifts, meals, entertainment, hospitality or payment of expenses whenever these could materially affect the outcome of business transactions, are not reasonable and bona fide expenditures, or are in violation of the laws of the country of the recipient.

REPORTING REQUIREMENT: Officers, employees and representatives of GOKO CORPORATION who find themselves subjected to any form of extortion or who are asked to participate in any way in a bribery scheme shall promptly report these occurences to senior corporate management, without fear that their employment will be adversely effected.

COMPANY RESPONSE: No employee will suffer demotion, penalty, or other adverse consequences for not paying bribes even when GOKO CORPORATION may lose business as a result of the employee’s refusal to do so. Employees are encouraged to report alleged violations of this Code of Conduct to senior management and no employee will suffer demotion, penalty or adverse consequences for reporting.

GOKO CORPORATION will, where appropriate, sanction employees, suppliers or business partners for violations of this Code of Conduct.

COMPANY ACCOUNTS: GOKO CORPORATION shall maintain complete and accurate financial records, ensuring that all transactions are properly and fairly recorded in appropriate books of account available for inspection.

COMMUNICATIONS AND TRAINING: GOKO CORPORATION will make annual training available for all principals, key employees involved in sales, marketing and procurement.

I hereby agree to comply with the TRACE Code of Conduct as outlined above. I understand that a violation of the Code of Conduct will be grounds for immediate expulsion from TRACE, after which, inquiring companies and organizations will be informed that GOKO CORPORATION’s membership has been revoked.

August 22, 2008

Akira Aomura
President & CEO