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Yupoong, Inc. (" Yupoong ") and its subsidiaries (" Factories ") recognize the dignity of each employee and respect their rights including the right to free association and collective bargaining. Yupoong consistently works to create better workplace and working conditions for our employees. Based on this general policy, Yupoong developed labor standards which comply with all applicable laws, behavioral codes of our clients and international standards for implementation of the Factories. The core standards are set forth below:

EMPLOYMENT

All employees of the Factories are free to terminate their employment at anytime.
The Factories do not use forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.

Age restriction The Factories do not employ anyone younger than the minimum age provided by local laws. All employees must provide the Factories with proof of age documentation, a copy of which will be retained by the Factories. Any children under this minimum age will not be allowed in the factory work areas, unless as part of a guided tour or other special event.

Nondiscrimination Policy The Factories do not discriminate in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, union membership, or social or ethnic origin. All applicants and employees will be treated fairly and equally without regard to any of these characteristics.
Employment decisions will be made solely on the basis of education, training, demonstrated skills or abilities, job performance, and compliance with the Factories' code of conduct. All employment decisions will be subject to this provision including: hiring, job assignment, wages, bonuses, allowances, and other forms of compensation, promotion, discipline, assignment of work, termination of employment, and any other term or condition of employment.

ANTI-HARASSMENT POLICY

Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.
Sexual harassment is strictly prohibited. The Factories will ensure that all its security practices are gender-appropriate and non-intrusive.

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

Employees have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Likewise, employees have the right to refrain from any and all activities as they desire.
The Factories recognize and respect the right of employees to associate freely and to bargain collectively. The Factories will not interfere, to the detriment of employees' organizations, with government registration requirements regarding the formation of employees' organizations. Nor will it discriminate against or dismiss, discipline, or otherwise coerce or threaten employees seeking to form, join or participate in employees' organizations. Likewise, the Factories will not refuse work to an otherwise qualified individual because of his or her union membership. In addition, the Factories will not retaliate against employees who have formed or are attempting to form a union.

WAGES, HOURS OF WORK AND BENEFITS

Wages The Factories pledge to pay all employees at least the minimum wage required by local law and to provide legally mandated benefits.
Hours of Work The Factories comply with legally mandated work hours.
Benefits The Factories will pay all benefits required by local laws.

HYGIENE AND INDUSTRIAL SAFETY

The Factories shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of Factories facilities. The Factories will comply with all applicable health and safety laws and regulations and possess all legally required permits.

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