Retirement Systems

The Company's retirement systems are as follows:

Taiwan: All employees are now under the New Pension System. As required by law, the Company contributes 6% of each employee's monthly wages to the employee's individual pension account; employees may also voluntarily contribute 0% to 6% of their monthly wages to their individual pension accounts, with the Company withholding the contribution from their wages each month.

China: Retirement is handled in accordance with the retirement regulations of mainland China. Employees who have paid the statutory social insurance for 15 years are entitled to a monthly pension upon retirement. Retirement ages follow the Labor Law: 60 for male employees, 55 for female cadres and 50 for female workers.

The operating entity Zhejiang Tong Ming is an enterprise in mainland China, and pays pension insurance for its employees' retirement in accordance with local regulations. Under local social-insurance practice, pension insurance is part of social insurance (which covers medical care, maternity, pensions, work injury and unemployment); once the Company registers an employee for social insurance, its obligation to pay pension insurance begins. The pension-insurance contribution rates and basis are as follows:

Welfare Measures

The Company has always treated its employees with sincerity, building a relationship of mutual trust through a welfare system that enriches and stabilizes employees' lives and through a sound education and training system. The Company complies with the relevant labor laws and regulations, protects employees' legitimate rights and interests, provides a safe and healthy working environment, and has established channels for employee feedback and complaints. The Company's concrete measures for harmonious labor-management relations are as follows:

1. The Company distributes employee compensation as required by law; performance bonuses are calculated and paid monthly against targets, and year-end bonuses and profit-sharing/special bonuses are paid annually based on operating profit.
2. Each year the Company runs training programs by job level, offers subsidies for professional courses and certification examinations, and pays bonuses for employees who upgrade their academic qualifications.
3. The Company applies the Labor Pension Act and the Labor Standards Act in Taiwan, and the Labor Law and the Social Insurance Law in mainland China.
4. In mainland China the Company runs a cafeteria and provides every employee with lunch and overtime meals; in Taiwan it provides lunch. It also offers high-coverage group insurance, emergency-relief loans, and allowances for marriage, childbirth, miscarriage, funerals, hospitalization, work injury, high-temperature work and employees' children's scholarships, in addition to birthday gifts and gifts for the major festivals.
5. The Company has a multi-purpose recreation center (with a library, fitness equipment, a table-tennis room, a cafeteria and a training room) and subsidizes clubs that organize a wide range of activities inside and outside the Company, such as hiking, mountain tours, yoga classes, ball sports of all kinds, and charity visits. Ball-game tournaments are held from time to time, and employees are welcome to bring their families.