Employees Welfare Committee

I. Legal Requirement

The law requires establishment of an Employees Welfare Committee (EWC), with management and employee participation, to have custody of and disburse an Employees Welfare Fund, which receives contribution from the Company and from each employee. The Employees-Welfare-Committee prepares a welfare program and has established an Employees Welfare Association (EWA) to administer the program. All Employee Welfare organizational and fiscal matters are under the rules and control of competent Government authority.

II. Organization

The EWC consists of nine members, including representatives of the Labor Union. The Committee meets every three months. A Chief Executive appointed by the Committee is delegated to exercise EWC authority between meetings.

A Chairman who supervises EWA personnel and manages EWA programs heads the EWA.

III. Finances

The Company legally required contribution to the Employee Welfare Fund includes 0.10 percent of gross income plus 40% of proceeds from scraps sales. Additionally the Company provides land, buildings and facilities (and maintenance thereof), and furnishes a number of full time administrative employees to the EWA and provides a monthly cash subsidy. The employees contribute approximately 0.5 percent of their base salaries to the Fund.

Periodic financial statements are required and submitted to competent Government authorities.

IV. Welfare Programs

Employees Welfare Committee implements the functions of welfare programs as following: canteen service, recreational facility, sponsorship of hobby groups, sponsorship of recreational events, company excursion arrangement, selecting festival gifts, employee’s assistant program and subsidies for employee’s emergency needs.