the Ministry of Labor and Social Security

Order of the Ministry of Labor and Social Security of the People’s Republic of China

No.20

The Trial Measures on Enterprise Annuity, which were adopted by the Ministry of Labor and Social Security at the 7th executive meeting
on December 30, 2003, are hereby promulgated and shall come into force as of May 1, 2004.

Zheng Silin, the Minister of the Ministry of Labor and Social Security

January 6, 2004

Trial Measures for Enterprise Annuity

Article 1

With a view to establishing the multi-layer endowment insurance system, guaranteeing that the retirees of enterprises live a better
life and perfecting the social security system, the present Measures are formulated according to the Labor Law and the relevant regulations
of the State Council.

Article 2

The term “enterprise annuity” as mentioned in the present Measures refers to the supplementary endowment insurance system established
voluntarily by enterprises and their employees after they have bought basic endowment insurance. The enterprise annuity shall be
established according to the provisions of the present Measures.

Article 3

An enterprise, which meets the following requirements, may establish the enterprise annuity:

(1)

Having bought the basic endowment insurance and performing the duties of payment according to law;

(2)

Having the corresponding economic capacity; and

(3)

Having established a collective negotiation mechanism.

Article 4

The establishment of enterprise annuity shall be jointly determined by the enterprise and the labor union or the representatives of
the employees through collective negotiation, and the enterprise annuity plan shall also be formulated by them. The draft of the
enterprise annuity plan of a state-owned or state-held enterprise shall be submitted to the assembly of the employees or the assembly
of the representatives of employees for discussion and adoption.

Article 5

The enterprise annuity plan shall cover the following contents:

(1)

Scopes of the persons to buy the insurance;

(2)

Fund raising methods;

(3)

The individual account management method for the enterprise annuity;

(4)

The fund management method;

(5)

The calculating approach and the way of payment;

(6)

Qualifications for the treatment of paying enterprise annuity;

(7)

The organization management and supervisory methods;

(8)

Conditions for suspension of payment; and

(9)

Other matters as stipulated by both parties.The enterprise annuity plan shall apply to the persons whose probation period has expired.

Article 6

The enterprise annuity plan shall be reported to the administrative department of labor and social security of the local people’s
government at or above the county level. The enterprise annuity plan of a large enterprise under the Central Government shall be
reported to the Ministry of Labor and Social Security. Where the administrative department of labor and social security raises no
objection within 15 days as of the date of receipt of the text of the enterprise annuity plan, the enterprise annuity plan shall
go into effect immediately.

Article 7

The expenses necessary for enterprise annuity shall be jointly paid by the enterprise and its employees. The payment of the expenses
by the enterprise shall accord with the relevant regulations of the state, and the part of the expenses paid by the employees may
be deducted from their wages by the enterprise.

Article 8

The expenses paid by the enterprise may not exceed one twelfth of the total amount of wages of the employees of the enterprise in
the previous year. And the sum of the expenses paid by the enterprise and the employees may not exceed one sixth of the total amount
of wages of the employees of the enterprise in the previous year.

Article 9

The enterprise annuity fund is composed of the following items:

(1)

Expenses paid by the enterprise;

(2)

Expenses paid by the employees;

(3)

Proceeds derived from the investment and operation of the enterprise annuity fund.

Article 10

The enterprise annuity fund shall be in the form of complete accumulation and be managed by means of individual accounts.The enterprise
annuity fund may be used for investment and operation according to the regulations of the state. And the proceeds derived from the
investment and operation shall be merged into the enterprise annuity fund

Article 11

The expenses to-be-paid by the enterprise shall be computed pursuant to the proportion as specified in the enterprise annuity plan
and be deposited into the employees’ enterprise annuity individual accounts; and the expenses to-be-paid by employees shall be computed
and deposited into their respective accounts.The proceeds derived from the investment and operation of the enterprise annual fund
shall be deposited into the individual accounts of enterprise annuity pursuant to the net income ratio.

Article 12

When an employee reaches the retirement age as provided for by the state, he (she) may draw the enterprise annuity from his (her)
individual enterprise annuity account in a lump or regularly. No employee under the retirement age as provided for by the state may
draw the said fund out of his (her) account ahead of time.As for an employee who has settled abroad, the fund in his (her) individual
enterprise annuity account may paid to the employee in a lump in light of his (her) requirements.

Article 13

When an employee changes his (her) employer, the fund in his (her) individual enterprise annuity account may be transferred accordingly.
Where an employee enters a school of higher grade, joins the army or the new employer involved doesn’t adopts the enterprise annuity
system, his (her) individual enterprise annuity account may be managed continuously by the former management institution.

Article 14

After the death of an employee or a retiree, the balance in his (her) individual enterprise annuity account shall be drawn out in
a lump by the beneficiary or the legal heir.

Article 15

The enterprise that has established enterprise annuity shall determine an assignee of the enterprise annuity (hereinafter referred
to as the assignee) for the management of the enterprise annuity. The assignee may be the enterprise annuity council established
by the enterprise or a legal person as a trust institution meeting the relevant requirements of the state.

Article 16

The enterprise annuity council shall be composed of the enterprise and the representatives of employees or as well as professional
personnel hired from outside the enterprise. And the representatives of employees may not be less than 1/3 of the total number of
the council members.

Article 17

The enterprise annuity council shall, except managing the matters related to the enterprise annuity, may not engage in any other business
operation.

Article 18

For the determination of an assignee, a written contract shall be concluded between the enterprise and the assignee.

Article 19

The assignee may entrust a qualified enterprise annuity account management institution to act as the account manager who shall be
responsible for the management of the enterprise annuity. It may entrust a qualified investment operating institution to act as the
investment manager who shall be responsible for the investment and operation of the enterprise annuity fund.The assignee may choose
a qualified commercial bank or a professional trust institution to act as the trustee who shall be responsible for the entrustment
of the enterprise annuity fund.A written contract shall be concluded for determining the relationship between the assignee and the
account manager or the investment manager or the trustee.

Article 20

The enterprise annuity fund shall be managed separately from the self-owned assets and other assets of the assignee, account manager,
investment manager and trustee, and may not be used for any other purpose.The enterprise annuity fund shall be managed according
to the relevant provisions of the state.

Article 21

The administrative departments of labor and social security of the people’s governments at or above the county level shall be responsible
for the supervision and inspection of the implementation of the present Measures. Any one having violated the present Measures shall
be given a warning by the administrative department of labor and social security and shall be ordered to make corrections.

Article 22

Where any dispute arises from the performance of the enterprise annuity contract, the parties concerned may apply for arbitration
or file a lawsuit. Any dispute arising from the conclusion or execution the enterprise annual plan shall be settled in accordance
with the regulations of the state on settlement of collective contract disputes.

Article 23

Other entities, which have bought uniform enterprise basic endowment insurance, may establish enterprise annuity by reference to the
present Measures.

Article 24

The present Measures shall come into force as of May 1, 2004. The Circular on Printing and Distributing the Opinions on the Establishment
of Supplementary Endowment Insurance System issued by the former Ministry of Labor on December 29, 1995 shall be repealed simultaneously.