PART III Article 11 Preventing from insider trading  potential lawsuit or governmental investigation may not be destroyed, altered, or falsified. Where there is an event  of litigation or government investigation, it shall be presented to the internal legal department for consultation and  handled according to its instructions accordingly. 5.  Any of the following illegal business practices shall not be done with representatives of competing companies: (1)  Setting prices jointly; (2)  Allocating or dividing markets or customers; (3)  Boycotting or refusing from trading with other customers, suppliers, or competitors; or (4)  Engaging in any other illegal behavior that would restrain competition. 6. Any person shall not discuss or exchange sensitive business competing information with representatives of  competing companies unless otherwise with a prior approval of the internal legal department or the compliance  officer. 1. Complying with all applicable insider trading related laws. 2. Unless otherwise permitted by the R.O.C. laws or approved by the relevant authority, any person shall not trade the  Company securities while he/she possesses material and nonpublic information about the Company’s operations,  activities, plans, or financial results. 3. Material information refers to the information that may affect someone’s decision to buy, hold, or sell a company’s  securities. Material information includes a company’s expected earnings, significant businesses plans of acquisition  or sale, and changes to senior high-level managers. Any trading is prohibited prior to disclosure of material  information or within 18 hours after the disclosure. 4. Unless otherwise permitted by the laws or rules of the SFB or U.S. SEC, any person shall not trade securities of  other companies when he/she possesses material nonpublic information about the companies. In addition, any  person shall not trade securities of other companies when such trade will become illegal or result in a conflict of  interests. 5. Material nonpublic information of the Company and other companies which belongs to the Company cannot be  appropriated by any person and shall not be disclosed to the following persons even there is no profits arising  therefrom: (1) The Company’s employees who does not need to know the information for operational purpose; (2)   Non-The Company’s employees, unless otherwise a prior approval is obtained from the management. 6. The abovementioned rules apply to the Company’s employees’ spouses, children, relatives within the second degree,  and anyone else who lives together. The Company’s employees must be cautious when discussing about your work  with friends, spouses, children, relatives within the second degree, anyone else who lives together, or with other  employees. 1.  Transactions of the Company’s common shares (including stock options), preferred shares, and bond. 2.  Transfers of accumulated value of any Chunghwa common share in any Chunghwa benefit plan that is subject  to an individual’s control. 3.  Under certain circumstances, purchases or sales of securities in other companies and transactions made in  The rules outlined above apply to the following situations: Directors, supervisors, managers, and employees are prohibited from trading securities while they are in possession  of material nonpublic information. Directors, supervisors, managers, and employees shall comply with the relevant securities laws and the Company’s  policies regarding insider trading, securities transactions and processing of business confidential information. The Company, directors, supervisors, managers, and employees shall follow the following basic rules when  engaging in securities (including bonds) transactions: