(Promulgated on July 5, 2001 by Shanghai Municipal People’s Government and revised for the first time on June 24, 2004 in accordance with the  “Decision of Shanghai Municipal People’s Government on the Revision of 32 Regulations and Normative Documents, Including the ‘Procedures of Shanghai Municipality on the Supervision and Administration of Safety in the Production of Dangerous Chemical Substances’” and revised for the second time on March 29, 2007 in accordance with the “Decision of Shanghai Municipal People’s Government on the Revision of the ‘Provisions of Shanghai Municipality on Promoting the Development of  Zhangjiang Hi—Tech Park”’ and re—promulgated)

        Article 1(Purpose)

       In order to promote the development of Zhangjiang High—Tech Park Area, these Provisions are formulated in accordance with the “Decision of the Central Committee Of the Communist Party of China and the State Council on Strengthening Technological Innovations, Developing High Technology and Realizing their Industrialization”, taking into account the actual Situation of this Municipality.

        Article 2(Administrative Organization)

      This Municipality shall establish the Administrative Committee of Zhangjiang High—Tech Park Area(hereinafter referred to as the AC)as an agency of the Municipal People’s Government and the Pudong New Area Government. On the commission or authorization of relevant administrative departments and organizations of this Municipality and the Pudong New Area, the AC shall be responsible for the examination and approval of investment projects and infrastructure construction projects within the Park Area: responsible for the accreditation of new and hi—tech enterprises, software enterprises, IC enterprises and transformation projects of new and hi—tech achievements within the Park Area；responsible for coordinating other administrative departments in day-to-day administration and annual inspection of enterprises in the Park Area and implementation of preferential policies；and responsible for providing a variety of necessary services for enterprises within the Park Area.

       Article 3(Establishment of Enterprises)

       The establishment of enterprises in the Park Area shall be directly registered.

      Registration of enterprises that meet the requirements for establishment shall be completed within three work days by the industrial and commercial administrative departments.

      Where prioritized examination and approval are required by law or administrative statutes, applications shall be “accepted and handled by industrial and commercial administrative departments, ‘reported with copies to relevant departments，examined and approved concurrently and jointly and completed within a specified time limit”．Competent authorities shall complete prioritized examination and approval formalities within 5 work days.

       Enterprises that apply for establishment may also commission enterprise registration agencies to go through for them necessary formalities.

       The prioritized examination and approval process prescribed for enterprise establishment by the Municipal Government and departments under it shall be abolished.

       Scientific and technological personnel and managerial personnel who apply for the establishment of science and technology-type enterprises within the Park Area while remaining in their current positions or after leaving their positions may submit applications to the industrial and commercial administrative departments by presenting relevant personal certificates. There shall no longer be any restrictions imposed on the scope of business for science and technology-type enterprises.

        Article 4(Examination and Approval of Projects)

       The AC shall be authorized by the Municipal Foreign Investment Commission to examine and approve foreign investment projects within the Park Area and report the results of examination and approval to competent administrative departments for the record.

       The AC shall be authorized by competent administrative departments of this Municipality to examine and approve domestic investment projects within the Park Area.

        Article 5(Administration of Planning and Project Construction)

       Matters concerning the administration of planning within the Park Area shall be subject to the examination and approval by the AC in accordance with the approved detailed plans upon the authorization of the planning administration departments of the Municipality and Pudong New Area, while matters concerning the administration of project construction within the Park Area shall be subject to the examination and approval by the AC upon the authorization of the construction administration departments of the Municipality and Pudong New Area.The AC shall report the results of examination and approval to competent administrative departments of the Municipality and Pudong New Area for the record.

        Article 6(Major Patronized Industries)

       The Park Area shall give focus on patronizing the following new and hi-tech industries;

       (1)Industries listed in the State Catalogue of New and Hi-tech Products;

       (2)Bio—pharmaceutical industries;

       (3)Information industries;

       (4)Other industries stipulated by the Municipal People’s Government.

         Article 7(Accreditation of Enterprises and Projects and Issue of Certificates)

        The accreditation of new and hi—tech enterprises，software enterprises, IC enterprises and projects for the transformation of new and hi—tech achievements within the Park Area shall be conducted unified by the AC upon the authorization of the Municipal Science Commission, Municipal Information Commission and municipal new and hi—tech enterprise accreditation organizations and shall be accepted and handled by one single designated department. In conducting accreditation, the AC shall adhere to the accreditation standard, increase efficiency, simplify procedures and bring convenience to enterprises. It shall report the accreditation results to the competent municipal administrative departments and organizations for the record.

       Competent municipal, administrative departments and organizations shall supervise the accreditation and certification by the AC and have the power to cancel any accreditation result that do not meet the standards or requirements.

         Article 8(Preferential Policies)

        Enterprises and projects accredited by competent municipal administrative departments and organizations or the AC may enjoy the following preferential policies within the Park Area:

        (1)A variety of preferential policies of the State and this Municipality designed to

encourage technological innovations：

        (2)A variety of preferential policies of the State and this Municipality designed to encourage the transformation and industrialization of scientific and technological achievements;

        (3)A variety of preferential policies of the State and this Municipality designed to encourage software industry and IC industry;

        (4)Relevant，preferential policies of this Municipality：for the promotion of the development Of small and medium—sized enterprises.

         Article 9(Autonomy of Enterprises and Scientific Research Institutions)

        Enterprises within the Park Area shall enjoy autonomy in operation and in making personnel and distribution decisions, and be solely responsible for their own profits and losses in accordance with law.

        Scientific research institutions within the Park Area may establish professional and technical posts as required by their own development programs, make professional and technical appointments for themselves and decide on their own on the post responsibilities and requirements of appointment.

         Article 10(Notification and Commitments)   

        Competent administrative departments shall inform enterprises within the Park Area in advance and in writing of the statutory obligations they shall undertake.

      Enterprises  may  make  for  themselves  commitment  or  guarantees to competent administrative departments with regard to the statutory obligations they shall undertake and bear corresponding legal responsibilities.

         Article 11(Provisions on Routine Administration and Annual Inspections)

        Quality and technical supervsion and pharmaceutics supervision and administrative departments may conduct supervision，inspection and sample testing on me quality of the products of the enterprises in the Park Area in accordance with law, by showing their 1egal certificates.

        Notice  of the inspections  and  supervisions  to be made in accordance  with law  on enterprises in me Park Area shall be given by the administrative departments to the enterprises concerned 15 work days in advance and unified and coordinated arrangements shall be made by the AC therefor.

         Annual inspections of enterprises in the Park Area by administrative departments in accordance with the provisions of law and administrative regulations shall be coordinated and arranged in a unified manner by the AC.

         Article 12(Normalization of flee—charging Acts)

        Fee-payment registration cards shall be introduced for enterprises in the Park Area.

       When collecting fees from enterprises, fee-charging units shall show their “Fee-collecting Permits (Annex)’” or other 1egal certificates and fill in item by item, the “Fee—Payment Registration Cards Of Shanghai Enterprises”．Enterprises have the right to refuse to pay fees if the fee-collecting units do not show their ‘‘Fee—collecting Permits” and fill in the “Fee—Payment Registration Cards of Shanghai Enterprises”.

         Article 13(Intermediary services)

        The intermediary service system in the Park Area shall be improved so as to provide units and individual persons mat are engaged in technological innovations and transformation and industrialization of scientific and technological achievements with a variety of intermediary services  that  comply  with  international  practice  and  State  norms，such  as  operational management, technology marketing, information, talents，finance，banking，standards and weight and measurement, patents, law and notarization services．

        Intermediary service agencies shall raise their service level in transaction of technology, transaction of technological property, brokerage of technology, consultation of technology, evaluation of intangible assets,  consultation of investment in science and technology and appraisal of technology.

          Article 14(Attracting talents and Simplifying Formalities for Going Abroad)

         Professionals at home and abroad are encouraged to join enterprises in the Park Area to engage in the development of scientific research projects and the transformation of research achievements.

         The formalities of examination and approval for enterprise staff’s in the Park Area going abroad or across border on business shall be simplified. Persons going abroad or across border in  connection  with  major  projects  of technical  innovation and  the  transformation  and industrialization of scientific and technological achievements shall only have to go through the examination and approval only once for multiple visits and shall be accorded priority by relevant departments．

          Article 15(Protection of Intellectual Property Rights)

        Enterprises in me Park Area are encouraged to develop technologies with independent intellectual property rights．The enterprises shall be encouraged to provide on-the-job related inventors, designers, authors and  main  executors  of  intellectual  property  rights  with remunerations or profit of share right appropriate to their actual contributions.

         Technological innovations and activities involving the transformation and industrialization of scientific and technological achievements in the Park Area shall be subject to laws and regulations on the protection of intellectual property rights, as well as to those international treaties and agreements to which China is a party or signatory.

         Special reward funds shall be established in me Park Area to encourage enterprises to take the initiative in applying for patents and support the industrialization of patented projects．

          Article 16(Investments in Starting Projects)

         Domestic and foreign organizations are encouraged t0 establish investment organizations for starting projects in the Park Area．

         Enterprises in the Park Area are encouraged to develop mechanisms for the entry and withdrawal of risks investment funds.

         Enterprises in the Park Area are encouraged to conduct transactions of technologies and property rights.

          Article 17(Prohibited Acts)

         Administrative departments and other units are prohibited to require enterprises in the Park Area to participate in any kind of inspection, comparison on and appraisal activities. Unauthorized collection of fees from enterprises in me Park Area in any name shall be prohibited．

          Article 18(Lodging Complaint)

         The AC shall make public at the working places the basis, contents, conditions, Procedures, time limit，the catalogue of the materials shall be submitted，and the model text of application concerning the examination and approval matters.

         In case the applicant requests the AC to give an explanation or an interpretation of the contents that are made public，me AC shall provide accurate and reliable information.

         An enterprise in the Park area may lodge complaints t0 the AC about the administrative acts of the administrative departments that fail to comply with these Provisions or about the fact that the preferential treatment it is entitled to fails t0 be carried out.

          Article 19(Scope of Application and Date of Implementation)

         These Provisions shall apply to enterprises in the developed area of the Park Area．

         The AC and competent departments may formulate detailed rules for implementation on the basis of these Provisions.

         These Provisions shall become effective on the date of its promulgation.