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Contents - MiTAC

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5.2 Benefits and Training<br />

The Company considers its employees to be one of its most important assets. In addition<br />

to providing employee insurance in conformance with relevant labor laws, the Company has<br />

also joined group life and overseas travel insurance plans, with the Company covering the full<br />

amount of insurance fees.<br />

A well-organized employee benefits committee with members selected by individual<br />

departments not only holds regular meetings to coordinate the Company's worker benefits<br />

measures and programs, but also organizes intra-company clubs to promote leisure and<br />

recreational activities that can build camaraderie among employees.<br />

The Company has established a reference library that is open to employees all day,<br />

stocking it with materials on CD-ROM and participating in the Sci-Tech Interlibrary<br />

Cooperation Association so that employees can easily access information pertinent to their<br />

work. The Company also provides comprehensive training programs to stimulate employees'<br />

potential and allow them to continuously learn and grow as they work—making work a home<br />

and a school. Each year, the Company disburses substantial funds for employee education.<br />

Severeal years of effort in this area, have yielded results.<br />

5.3 Retirement system<br />

The Company has established, in accordance with applicable labor laws, a<br />

comprehensive retirement system compliant with all legal stipulations. In addition to creating<br />

individual pension accounts for employees as required by law, the Company has also<br />

established a steering committee composed of representiatives from both labor and<br />

management to jointly monitor the handling of these accounts. Moreover, an amount<br />

calculated by a neutral third party is distributed into each account from the pension fund on a<br />

monthly basis. To date, no irregularities have occurred in operation of this system.<br />

5.4 Labor/management relations<br />

The Company has negotiated a As current labor/management relations at the Company<br />

are harmonious, the possibility of losses stemming from disputes in this area are exceedingly<br />

low. The Compnay will remain faithful to principles of humane management and continuing<br />

building a system of multiple channels of communication, not only to maintain the current<br />

harmonious state of relations between labor and management, but also in the hope of<br />

advancing these relations even further.<br />

6. Major Agreements<br />

Contract Type Party Period of Validity Major Content Limiting Terms<br />

OEM<br />

DELL From 1 August 2002 to Arranges for product None<br />

1 August 2005, can be manufacture, delivery,<br />

automatically extended warranties, etc.<br />

Purchase Agreement HP From 16 October 2003 Arranges for computer<br />

product manufacture,<br />

delivery, warranties, etc.<br />

None<br />

7. Litigation Proceedings<br />

7.1 The Company has not been involved in lawsuits or other legal action that might influence<br />

shareholder interests or securities prices as defined by the relevant laws in the Republic of<br />

China (Taiwan).<br />

7.2 None of the Company's directors, supervisors, general manager, actual person in charge, or<br />

major shareholders holding a stake in excess of 10% or the companies to which these<br />

shareholders belong, have in the most recent two calendar years and the current year to the<br />

publication date of this annual report been involved in any lawsuits or other legal action.<br />

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