◎Employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreement and measures ofr preserving employees' rights and interests.

1. Employee benefit plans

The Company pays its employees higher than industry average salary, as well as yearend bonus, quarterly performance bonus and all kinds of allowances and subsidies. The Company also arranges free physical examination at designated institutions and purchases insurances for employees, including basic pension, medical, work injury, matemity and unemployment, and provide them with subsidies for wedding, death, childbirth and hospitalization, and group travel. The Company also holds cultural, art and sports activities to foster a sense of affinity among employees and enhance work efficiency.

2. Continuing education and training

Education and training aids the Company to grow and develop. Systematic, scientific and reasonable training hone the professional skills of employees and help develop their intelligence, potential and vigor to the maximum that will benefit the sustained operation of the Group, The Company provides a series of traning courses tailored to the needs of employees, including recruitment training, on-the-job training and professional skill training.

3. Retirement system and state of implementation

The Company's subsidiary registered in the Republic of China has established employee retirement plan in acordance with the Labor Standards Act of the ROC. Under the old system, the Company sets aside 2% of total salary paid as pension reserve and deposits it into a Labor Pension Fund Supervisory Committee account every month. Starting July 1, 2005 along with the implementation of a new pension system under the Labor Pension Act (referred to as the "new system" or "defined contribution plan" hereunder), employees who werw subject to the Basic Standard Act may choose to switch to the defined contribution plan. Under the plan, the Company will contribute 6% of an employee's monthly wages into his or her personal labor pension fund account. Company's subsidiaries in China will pay for the pension insurance of employees in accordance with the local regulations. Pension insurance in China is part of the social insurance, which cover medical, maternity, pension, work injury, and unemployment benefits. Once the Company enrolls a new employee in the social insurance program, the Company starts to make pension contribution on his or her behalf. The contribution rate, standards and disbursement of pension benfit are as follows:

◎Whether the Company has provided safe and healthy work  environments for its employees, and organizes training on safety and health for its employees on a regular basis. 

The Company believes that only mentally and physically healthy employees could produce efficient and high-quality performance in work. Thus the Company endeavors to provide employees with a safe and healtthy work environment. The Company has an employee lounge at worksite and arranges annual employee travel activities. in the aspect of work safety, the Company carries out safety management in accordance with the machinery production safety standards and draws up a comprehensive safety management system to identify hazardous factors at work and undertake troubleshooting. Through continuous education, tranining and promotion, the Company imparts employees with emergency reponse capability and raises their awareness to work safety. The Company also establishes prevention and tracking system for work injury to build al safe work environment in the hope to reduce the incidence of work-ralated accidents, thereby alleviating any adverse impact on Company assets and employee safety. Recreation Areas are equipped in the Company. Leisure activities are held by specially-assigned person and annual travels are arranged fo employees.