Notice

Memorandum

TO:  Department Manager        

FROM: Mr. Man Leung, Director

DATE: 26 May 2002

SUBJECT:      Profit sharing plan

After much consultation and discussion we have elected to implement a discretionary profit-sharing plan for all full-time and part-time employees. For purposes of this plan, part-time will be defined as more than 15, but less than 38 hours per week.

The formula for designating an employee’s percentage of profits will be detailed at a later date. Briefly, it will be based on length of service with some consideration as to annual performance evaluations.

Also, as noted, the plan will be of a discretionary nature. Whether or not employees receive their percentage each year will depend upon total company profits and performance for the previous fiscal year.