Labor/Management Relations

1.Employee Benefits
(1)All employees of the Company are enrolled under labor insurance starting from the day they join the Company. All payments for childbirth, injuries, disabilities, agednesses, and death shall be provided in accordance with the Labor Insurance Act. Employees and family members are also enrolled under National Health Insurance.
(2)The Company has established the Employee Welfare Committee and appropriates a certain ratio of welfare fund upon the establishment of the Committee in accordance with the Organization Regulations. A fixed ratio of the Company's monthly revenue is appropriated to the designated bank account.
(3)The Company's employees have the following benefits：
A.Subsidies for marriage, childbirth, injuries and sickness, funerary expenses, and material disasters.
B.Establishment of clubs to organize various recreational activities and games.
C.Subsidies for short trips and domestic and overseas long-distance travel.
D.Gifts and monetary gift for Chinese New Year, Labor Day, Dragon Boat Festival, Mid-Autumn Festival, etc. to thank employees for their hard work.
E.The year-end banquet and party is held to thank employees for their hard work throughout the year.
F.Other ad hoc activities are held to thank employees for their hard work throughout the year
G.Subsidies for employees' on-the-job education and training.
H.Employee health examinations are held regularly once every two years.
I. Organize employee life service plans to provide employees with physical and mental growth and channels for stress relief.

2.Retirement System and Implementation
The Company has established the Labor Pension Preparatory Fund Supervision Commission and the Employee Retirement Plan. All official current employees of the Company are eligible for participation. In response to the implementation of the "Labor Pension Act" (hereinafter referred to as the new system) in July 2005,
the Company has contributed pension in accordance with the new system. For employee who opt for the old system, we provide two base points for each year of service within fifteen years (inclusive) and one base points for every year after fifteen years. The number of base points is capped at 45.

3.Protective Measures for the Work Environment and Physical Safety of Employees
The Company has planned a series of labor safety and health courses to protect employees from occupational hazards. The Company plans labor safety and health training courses for new employees and provides comprehensive health examinations for employees every two years. In addition, we also implement environmental inspections in January each year in statutory hazardous areas (Production Department) to meet requirements in the Occupational Safety and Health Act and protect labor safety and health. In terms of the air quality and various safety requirements, the high-quality offices currently provided by the Company have been equipped with measures that meet regulatory requirements or are superior to regulatory requirements.