Summary of legal risk management work

The legal risk management standardization work has entered the internal rectification stage. On August 8, the company’s legal risk management leading group carried out the work according to the work plan and compared with the "Legal Risk Management Work Assessment Score Sheet (Revised Draft)" Legal risk self-assessment and rectification work.

The self-evaluation is conducted strictly in accordance with the 8 A elements and 125 sub-elements, and we strive to have supporting materials for each element. The self-evaluation and rectification situation is now summarized as follows:

1. Cultivation and improvement of legal risk management awareness

First, through general manager office meetings, special meetings, local area network, and company bulletin boards , department billboards and other forms to publicize the significance and requirements of legal risk management work, work goals, organizational structure, personnel division of labor, scoring standards, work dynamics, etc. The company's publicity board was replaced 3 times, thematic meetings were held 8 times, 10 issues of the Group's legal risk management briefings were submitted, and 7 publicity manuscripts were submitted.

Second, *** conducted 5 centralized trainings, which mainly included basic legal knowledge training, contract law and file management training, risk information submission training, intellectual property rights and all-staff training. The Legal Risk Management Office began to organize legal risk management standardized answer sheets in batches on June 13, with a total of 398 copies. On July 3, the legal specialist went to Wuhu Company for training.

Third, through publicity and training, employees have improved their awareness of legal risk prevention and enhanced their awareness of complying with the company's rules and regulations; relevant personnel of the purchasing department, sales department, and logistics department have mastered contract negotiation, Knowledge of legal risk prevention during the signing and execution process; the administrative and human resources department has standardized personnel recruitment, resignation, rules and regulations formulation, issuance and other processes; the archives management personnel of each department have mastered the legal risk matters related to archives management

2. Construction of the legal risk management system

First, the "Notice on the Establishment of the Legal Risk Management Leading Group" was issued, and a legal risk leading group was established with an office affiliated to the Finance Department. Formulate the company's legal risk management goals and clarify the main responsibilities of the legal risk leadership group and office.

Second, recruit qualified full-time personnel to carry out legal risk management.

Third, set up special funds for legal risk management to provide financial guarantee for legal risk management work.

Fourth, the Legal Risk Management Office formulated 8 work plans, and relevant personnel gradually carried out various tasks according to the work plan time points.

Fifth, establish and improve the legal risk information reporting system, and all departments will submit legal risk information on a monthly basis.

3. Decision-making on major matters

First, refer to the implementation of XX Group's "Three Important and One Management Measures" and "Legal Affairs Participation in Major Matters Decision-making Management Measures" to clarify the scope of major matters.

Secondly, in late April, the Legal Risk Management Office compared the "Main Contents of the Inspection of the Implementation of the "Three Major and One" Decision-making System" and carefully conducted self-examination item by item, formed a summary, and reported it to the group.

Third, legal specialists gradually participate in major company matters and promptly issue legal opinions on major company matters.

IV. Management of rules and regulations

First, refer to the "XX Group Rules and Regulations Management Regulations" to standardize the formulation, modification and abolition of company rules and regulations.

Second, in the first half of the year, 8 rules and regulations were revised and formulated, all of which were reviewed by legal specialists for legality and compliance; employee representatives and labor union members were organized to discuss the clauses involving the vital interests of employees. The newly formulated system shall be publicized and publicized in accordance with prescribed procedures.

Third, organize the company’s current effective rules and regulations and establish a directory.

5. Contract Management

First, set up a contract review team, formulate the "Contract Review Methods", review the contract, and sign the contract review form.

Legal specialists review the accuracy and completeness of contract terms and content; review the contract signing procedures and the legality of contract matters; and review the contract text for legal risks.

Second, the special contract seal must be managed by a dedicated person. The contract must be stamped with the special contract seal and cannot be replaced by the official seal of the unit. The special contract seal must be registered.

Third, establish customer credit files and classify 11 customers based on their repayment status.

Fourth, the contract text was modified and improved. The "Industrial and Mineral Products Purchase and Sales Contract" added three breach of contract clauses and an agreement on the jurisdiction of the court.

Fifth, strengthen contract file management and organize contract catalogs to facilitate inquiry and management.

6. Intellectual Property Management

First, establish an intellectual property leadership group to be fully responsible for organizing and coordinating the company’s intellectual property management work. The intellectual property leading group has an office responsible for the daily activities of intellectual property management.

Second, in order to strengthen the protection of the company's intellectual property rights, standardize intellectual property management work, establish and improve the intellectual property management system, promote the application of intellectual property rights, encourage employees to invent and create, and protect the rights and interests of inventions and creations, the " Intellectual Property Management Measures", "Intellectual Property Early Warning Management Measures", "Patent Application and Maintenance Guidelines"

Third, in order to strengthen the protection of the company's business secrets and safeguard the economic interests and legitimate rights and interests of the enterprise, do a good job Regarding the company's trade secret rating and management work, we further standardized the company's trade secret management system and formulated and issued the "Business Secrets Management Measures" and "Business Secrets Assessment Methods".

Fourth, establish an intellectual property platform to conduct market monitoring of intellectual property rights. The "Notice on Encouraging Employees to Apply for Patents" was issued to reward employees who apply for patents.

Fifth, strengthen the management of intellectual property files, and the product engineering department will add 3 novelty checking records and 3 R&D records.

Sixth, create a file for each patent, with a list of contents, and archive the data in chronological order. In 2012, *** applied for 4 patents.

Seventh, nine non-compete agreements were signed with senior technical personnel and workers who knew the company’s business secrets or other information that had a significant impact on the company’s operations.

7. Dispute case handling

First, establish dispute case files, track case handling, establish dispute case ledgers, and strengthen dispute case management.

Second, improve the legal risk information management process. Each department determines a legal risk information reporting person and establishes a legal risk information ledger.

Third, the company is currently not involved in economic disputes.

8. Self-examination and assessment and evaluation

First, on the morning of March 29, we organized the labor contract files, document files, financial department expense establishment, and product management of the Administrative and Human Resources Department. The engineering department's intellectual property file arrangement and the purchasing department's contract arrangement were inspected and implemented.

On May 10, the Legal Risk Management Office conducted a self-examination on the progress of legal risk management work in the company’s eight departments, and put forward on-site rectification suggestions for existing problems.

On June 7, the Legal Risk Management Office held a rectification meeting and formulated 28 rectification measures based on the group’s inspection situation.

Second, the "Legal Risk Management Target Responsibility Letter" was signed with eight department managers as required