Employee Benefits

Labor-management Relations

1. CviLux's various employee benefit policies, professional development, training, retirement program, and the implementation; there are agreements between labor and management and policies for safeguarding employees' rights and interests:
   1. Employee benefits:
      1. The establishment of the Company's various management regulations are in accordance to the Labor Standards Act for all employees to comply. The management and employee representatives regularly hold labor-management meetings and unscheduled factory meetings to promote the Company's policies and exchange ideas on adjustments, work, benefits, and suggestions. The result is a coherent labor-management relationship.
      2. CviLux has established a reasonable salary and bonus plan with a pension plan in line with regulations. On May 17, 2000, CviLux organized the Employee Welfare Committee to subsidize annual employee travel, weddings, funerals, and occasional birthday parties. CviLux provides a comprehensive employee benefit package to ensure its employees' happiness.
      3. CviLux has established an employee shareholding system to encourage employees to participate in the operations and management, improve company performance, and achieve success. The system serves to make CviLux's capital structure stronger, and it results in good relationships between labor and management. At the same time, the employees may feel confident about the future of the Company and share the success together.
   2. Employee development and training:
      CviLuxs’ training is divided into the orientation training and on-the-job training. Apart from implementing the training programs, CviLux also attaches great importance to the feedback from employees during the training, refers the employees’ feedback and training record for staff promotion and transfer in the future
      1. The statistics of the CviLux's 2019 employee training programs are as follows:

         Number of CviLux-organized orientation	Number of CviLux-organized orientation hours	Number of non-CviLux-organized orientation hours	Total cost of education and training
         73	117.5	373	NT$160,000

      2. Employee development and training methods: CviLux has established its orientation training requirement form which contains the employees' personal education and training related information.
   3. Retirement system and the status of implementation:
      1. Retirement system:
         1. CviLux has established the rules for the retirement of employees based on the Labor Standards Act. Since 1998, CviLux has been appropriating labor pension reserve funds on a monthly basis in a designated Taiwanese bank account. In 2016, the rate was 3% of the total salaries paid, and the employers and employees established the Supervisory Committee of Labor Retirement Reserve to manage and audit the retirement reserve. Since July 1, 2005, employees who choose the Labor Pension Act (new labor retirement system) will have their 6% of total insured salary appropriated to the Individual Retirement Account (IRA).
         2. Applying for retirement:
            An employee may apply for retirement in one of the following circumstances:
            1. Having served for 25 years or longer
            2. Having served for 15 years or longer and reached 55 years old or older
            3. Having served for 10 years or longer and reached 60 years old or older
         3. Forced retirement:
            An employee may be forced to retire in one of the following circumstances:
            1. Having reached the age of 65
            2. Mental disorders or physical disabilities incurred from the execution of their duties
         4. The pension is given to:
            1. The pensions applicable to the "Labor Standards Act" are issued in accordance with the following provisions: two bases are given for each full year of service rendered, but for those who serve for more than 15 years, one base is given for each full year of service rendered; the total number of bases shall be no more than 45. The standard of the retirement base in the preceding paragraph refers to the average salary of the last six months before retirement multiplied by the base of payment.
            2. Workers who are applicable to the "Labor Pension Act" will receive their pensions from the Individual Retirement Account (IRA).
      2. Implementation status: good
   4. The agreements between labor and management and policies for safeguarding employees' rights and interests:
      1. The company is an industry applicable to the Labor Standards Act, and all operations are based on the Labor Standards Act.
      2. In CviLux, each department has a comprehensive operation procedure, and implements various employee rights and responsibilities according to regulations and internal control guidelines. In addition, CviLux has created a communication mechanism for employees and management to exchange opinions, and ensure the interests of employees and the Company.
      3. CviLux understands the importance of the workplace safety and employees' personal safety as well as the corporate social responsibility and the health, safety and environment. The ISO14001 environmental management system is implemented to promote products without hazardous substances and protect the health, safety and environment. CviLux is committed to become a sustainable corporation to protect the environment and its employees' health and rights.
      4. To prevent serious threat to the Company's property, corporate image, and employees' safety, CviLux has established safety and health guidelines to prevent accidents and created contingency and emergency response plans; the plans include emergency response, notification system, and post-disaster recovery procedures to minimize damages to the Company's property, personnel and the environment.
         1. Conduct fire drills and emergency response drills every six months and establish a contingency plan for potential accidents.
         2. Conduct unscheduled safety and health promotion and occupational safety training to ensure employees to work safely.
         3. Hire professional safety consultants to conduct risk assessment and hazard identification in the factories to prevent occupational injuries or accidents
         4. Employees have regular medical examination to prevent occupational injuries.
2. The loss suffered by the Company due to labor disputes occurring in the most recent fiscal year and up to the prospectus' publishing date: None.
3. Code of Business Conduct and Ethics for Employees:
   CviLux has a code of conduct as a guideline for directors, managers, and employees of the Company. The main contents are:
   1. All employees should be honest and with good ethics, even when a conflict of interest presents within their duties.
   2. All employees should abide by the terms of NDA and intellectual property rights.
   3. All employees should comply with government regulations, including insider trading regulations.
   4. Any disclosure of the Company's financial status and information should be fair, correct, and immediate to protect the shareholders' rights.
   5. Treat customers, suppliers, and competitors in a fair manner