Work &Life in Nan Ya PCB

Benefit

---

• Employee accommodation,in-house delis, convenience stores, movies theater (movie for free), andgymnasium with pool, table tennis and basketball stadium
• Shuttle buses services to andfrom Nan Ya PCB
• Annual health examination
• Getting discount from Chang GungMemorial Hospital
• Family days, Sport events, andother activities to enrich employees lives

Implementationstatus of employee's benefit:Good.

Retirement

---

• Applying Retirement：
  • Employees who match one of the following conditions may applyretirement：
  1. Service for 15 years or more and age above 55
  2. Service for 25 years or more
  3. Service for 10 years or more and age above 60

• Ordered Retirement：
  • Employees who match one of the following conditions may beretired：
  1. Age above 65. Senior vice president or above may extend to70
  2. Mentally or physically incapable to work

• Calculation Standard of Pension：
  1. Employees who choose old calculation standard of pension：
  1. The cardinal number of calculation ofservice period before July 31st 1984is based on RegulationsGoverning the Retirement of theFactory Workers of TaiwanProvince and calculated with theaverage salary of the 3 monthsbefore retirement. The calculationcardinal number of service periodafter August 1st 1984 is basedon 55th code of Labor Standards ACTand calculated with the averagesalary of the 6 months beforeretirement. The sum of thecalculation cardinalnumbers must not exceed 45
  2. Full-time employees who are retired due tomental or physical issues because ofoccupational harms receive extra 20%of the pension.
  2. The Company is required by law to monthly extract 6% ofsalary as pension from employees whoare applied to new standard ofpension.

Implementation status of retirementregulations: Good.

Compensation

---

• Competitive salary and bonus
• Gift coupons in birthday and Chinese main festivals

Internal Communication

---

• Effective two-way communication
• Business magazine on-line
• Employee suggestion boxes and lines

Incentives in Nan YaPCB

---

• Setting up of IE prize money initiative：
  • Encourage employees tobring up work-related issues, and propose ways to improve the situation.Monetary reward will be based on the effectiveness of the proposal which willbe reviewed after a period of time.
• Setting up of an online suggestionportal：
  • In order to encourage employees toactively bring up work-related issues, we have setup a "Formosa Plastics GroupOnline Suggestion Portal" in year 2006. This will allow all employees to voiceout their innovative suggestions on various management areas. Employees caneven start a discussion thread so that all the departments can discuss about itonline, hence encouraging active participation and discussion in hope to comeup with a good proposal with breadth and depth. After Reviewing Panel hasreviewed the feasibility of the proposals, approved proposals will be forwardto a team which will come up with concrete plans on execution of the proposal.

OccupationalSafety

---

• We formulatedthe rules of occupational safetyand hygiene management to enableeach department to follow andprevent our employees fromaccidents. In addition, therules allow us to develop aworking environment with zerooccupational hazard to securethe safety of employees andneighborhoods as well as theintegrity of Company'sequipments.
• The applicationscope includes the systems ofsafety and hygiene systems, theduty of each department, alltypes of protective measures,periodical hygiene self-auditingand training, evaluations, andcontingency plans.
• Weperiodically hold educationalpropaganda of safety and hygieneto ensure our employees toreceive adequate and essentialtraining. Each departmentexhibits the safety and hygienepolicies in obvious places.
• Weperiodically have our employeesreceive physical examination,such as regular heath checkup,special health checkup, foreignemployees physical examination,and food court staff healthcheckup. In addition, we set upa medical unit, which in chargeof medical resource management,first-aid personnel, and drugsand ambulance management.