Intellectual Property Protection

Intellectual property (IP) protection is a primary concern for clients outsourcing their software development to third parties. Protection of our client's IP is of utmost concern to us. We have instituted comprehensive measures to ensure that our client's IP and business secrets are fully protected.

·Policies

1. Strict enforcement of the Company's Non-disclosure and Security Management Regulations. Rules clearly defining what constitutes confidential information and business secrets are.propagated throughout the Company.
2. Regular training on Security and IP protection for all employees
1. Departments and individual staff are trained on non-disclosure issues and on their responsibilities for maintaining absolute client confidentiality.
3. In addition to Non-disclosure Agreements (NDAs) signed between Litsoft and the client, Company employees are also required to sign individual NDAs with the client.
4. Clear rules and guidelines on how confidential documents and information should be handled.
5. Additional policies in place to accommodate IP protection requirements of individual clients.
6. Customer Segregation: we allocate independent information space for each project and separate servers for each project team.
7. We provide the necessary sources to ensure a maximum non-disclosure and security environment. We have:

   1. installed a special configuration management server,
   2. established exclusive development zones and segregated labs installed with access control systems and professional system and configuration management systems.
   3. retained professionally-trained security personnel.

Litsoft's Office Access Control System requires personnel to present an electronic ID badge for entry into secured areas.

High security areas (such as secured server rooms) are managed by special personnel, and can only be accessed by authorized administrators. Independent access control systems are implemented for Development Zones with special safety requirements.

The video surveillance system works 24 hours a day, and 16 screens on different sections could trace back to the monitoring data during the past 30 days.

·Network Security

In order to guarantee the normal operation and security of the company's network, it is required that all staff members should:

1. Each server and workstation are installed with daily-updated Symantec Antivirus Software. Email anti-virus software is installed on the Company email system.
2. All installed software systems are timely patched to address security issues.
3. Public IP addresses are only on Internet-enabled servers
4. Unless authorized, Company computers are prohibited from connecting to outside networks through telephone lines or other connections on the office business network.
5. The office business network is segregated from the software development and testing network, meaning all machines and equipments used for software development and testing are prohibited from connecting to the office business network.
6. Firewalls are set up on Internet channels
7. Unauthorized scanning, detecting or intercepting of data on the office network is strictly prohibited.

In order to guarantee safe storage of and access to confidential information, Litsoft requires the following:

1. Documents be managed with VSS and PCVS. Access rights should be fixed in the system according to the ranking of management and the right of the project team. Different project teams are not permitted to access documents belonging to other project teams.
2. Clients' confidential information and documents are safely stored and managed with VSS and PCVS. Only authorized personnel (such as contract management personnel, project managers, and senior managers) have access to VSS and PCVS secured data.
3. The System Administrator is responsible for coordinating Litsoft's Access Management System, which ensures that only approved personnel have access to secure information and that access rights are constantly maintained to account for staff movement
4. The user password setting rules: the account password of common users should be no fewer than 8 digits, including at least one lowercase, one uppercase, and one digit; the account password for the system administrators should be no fewer than 12 digits which, apart from one lowercase, one uppercase and one digit, must include a special character, e.g. @#$, etc. The passwords for different systems should be safely preserved and should not easily be informed to others.
5. Strict controls on data transfer, the recording of data onto CD must be approved and hard copies of sensitive documents are carefully managed and stored in secure locations. The use of portable media devices is prohibited within secure networks.
6. All access to the extranet pass through the Proxy Server. Unauthorized connections to the extranet via telephone lines or special lines are prohibited.
7. All access to the extranet pass through the Proxy Server. Unauthorized connections to the extranet via telephone lines or special lines are prohibited.