Laws of the People's Republic of China

   Article 1 The present Interim Provisions are formulated, in accordance with the relevant laws and regulations, for the purposes of adjusting the layout of the estate in Shanghai, and of speeding up the construction of the commercial center in Shanghai Waitan Area (The Bund).

   Article 2 The replacement of the state-owned houses mentioned in the present Provisions means the act that the Municipal People's Government shall, in accordance with the planning requirements of the Waitan Area, adjust the function of the State-owned houses, terminate the original leases, and transfer and rent out the vacated houses.

The Waitan Area mentioned in the present Provisions refers to the area from Suzhou Road (S) in the north to Jinlin Road (E) (including both sides of the street) in the south; from ZhougShan Road (E. 1) in the east to Henan Road (C) (including both sides of the street) in the west.

   Article 3 The houses that shall be replaced according to the present Provisions refer to the State-owned houses, (including both non- residential and residential houses), which, at present, are not used in line with the planning requirements and the layout of the estate in the Waitan Area. The vacated house shall be transferred or rented out to financial institutions, stock exchanges, trading organizations, transnational corporations, comprehensive commercial establishments, and intermediate service agents or other service agents directly relating to those organizations.

   Article 4 Shanghai Municipal People's Government shall hold the House- Replacement Joint Conference of the Waitan Area (hereinafter referred to as the Joint Conference). The Joint Conference shall exercise the unified leadership over the-house-replacement in the Waitan Area.

The Joint Conference shall have its House-Replacement office. The House- Replacement Office is responsible for the administration of the house- replacement work. The Waitan House-Replacement Company shall undertake the management of the house-replacement business.

The competent governmental departments of planning, land, housing, city construction, public utility, post and tele-communication, power, and public security, etc. shall, in accordance with its own respective duty, cooperate with each other in the house-replacement work in the Waitan Area.

   Article 5 The duties of the House-Replacement Office are:

1. To work out the plan of the re-arrangement of the estate, the house- replacement plan and the detailed measures of the replacement in the Waitan Area, and to carry out the plans after getting the approval of the Joint Conference;

2. To supervise and urge the units whose houses shall be replaced and the Waitan House-Replacement Company to carry out the plans of the house-replacement in the Waitan Area;

3. To participate in the joint examination of the construction project in the Waitan Area;

4. To coordinate in the necessary construction of public facilities of the city construction because of the house-replacement and in the important events of the relocation of the original tenants;

5. To deal with other problems concerning the house-replacement authorized by the Joint Conference.

   Article 6 The duties of the Waitan House-Replacement company are:

1. To advance a specific scheme for the house replacement, report it to the Joint Conference, and carry it out after the approval of the Joint Conference;

2. To advance a plan for constructing houses for the relocation and a plan for the necessary construction of public facilities, report them to the competent departments as a project according to the stipulated procedure, and then carry out the construction;

3. To be responsible for the cost accounting and fund circulation of the house replacement;

4. To be responsible for the specific resettlement after the house replacement;

5. Mandated by the Municipal State-owned Assets Administration Committee, to take over the property right of the vacated houses, and be responsible for the bidding and negotiation with the buyer and renter on transferring and renting the vacated houses;

6. To deal with other relevant matters mandated by the House-Replacement Office.

   Article 7 The original tenant of the State-owned houses within the limits of the house-replacement program and plan (including the units and residents, the same hereinafter) shall obey the relevant program and plan and shall not refuse to move without proper reasons.

In the replacement of the State-owned houses, the original tenant shall be properly resettled according to the present Provisions.

   Article 8 The House-Replacement Office Shall inform the original tenant of the State-owned non-residential houses within the limits of the house-replacement program in written form. From the very day of receiving the notice, the original tenant of the State-owned non- residential houses shall not perform the following activities:

1. To change the original use of the house;

2. To open joint business by using the house as the condition;

3. To set up new organization or let other organization move in;

4. To extend new construction area;

5. To decorate or repair the house;

6. To perform other activities not allowed according to the relevant provisions.

The House-Replacement Office shall, according to the Specific Regulations for the Implementation of House Demolishing and Relocation of Shanghai Municipality, inform the Public Security Department to suspend the permanent residence registration from moving into the State- owned residential houses within the limits of the house-replacement program and the separation of the household registration in the above mentioned houses.

   Article 9 In respect of the State-owned house to be replaced the House- Replacement Office shall inform the original tenant of the State-owned houses within the limits of the house replacement program and the Waitan House-Replacement Company that the Waitan House-Replacement Company shall resettle the original tenant.

Within two months from the following day after receiving the notice, the Waitan House-Replacement Company shall, according to the present Provisions, consult with the original tenant on the way of resettlement and sign a resettlement agreement.

If the Waitan House-Replacement Company provides the house for the original tenant, the original tenant shall move out and vacate the original house within three months from the day of receiving the house- replacement notice or within the time limit settled in the agreement.

If the original tenant is resettled in other ways, the time limit of moving out and vacating the original house shall be defined in the house replacement agreement, the original tenant shall move out and vacate the original house according to the time limit defined in the agreement.

   Article 10 The resettlement of the original tenant of the State-owned non-residential house may adopt the following ways:

1. The Waitan House-Replacement Company provides the original tenant with house in some other place, and sign a new lease.

2. The original tenant itself resettles in some other place;

3. The Waitan House-Replacement Company provides a construction site, and the original tenant builds houses to settle down;

4. The Waitan House-Replacement Company provides the original tenant with State-owned residential house in exchange for the original tenant's State-owned non-residential house.

The original tenant of the State-owned residential house shall be resettled with ready-made house once for all.

To arrange the resettlement for the house replacement, the Waitan House- Replacement company shall sign a resettling agreement with the original tenant. If the house replacement needs interim settling of the original tenant, the Waitan House-Replacement Company shall consult and sign an interim settling agreement with the original tenant.

   Article 11 In the replacement of the State-owned houses, the original tenant shall be properly resettled on the premises that the original construction area shall not be reduced and the housing condition shall not be lowered.

The resettlement house area for resettling the original tenant of the State-owned non-residential house shall be expanded by 10% on the basis of the original construction area. However, the resettlement house area for organizations or institutions may be re-ratified according to the actual conditions of the organizational reform and the new house can be arranged in some other place.

The resettlement house area for the original tenant of the State-owned residential house shall, on the basis of the standard stipulated in the Rules of Shanghai Municipality for the Implementation of House Demolishing and Relocation, be expanded by 10% within the inner circle, and by 10%-20% outside the inner circle.

The resettlement house area shall be calculated on the basis of the area registered in the leasing contract or in the renting certificate of the State-owned house.

   Article 12 If the original tenant of the State-owned non-residential house finds house to resettle itself, the Waitan House-Replacement Company shall give the original tenant the resettlement allowance. The specific standard of the allowance shall be made by the House- Replacement Office, and shall be implemented after being approved by the Joint Conference.

The original tenant of the State-owned non-residential house itself finds house for temporary settlement, the Waitan House-Replacement Company shall, according to the rent standard of the State-owned house and the actual transition period, give the original tenant the temporary settlement allowance.

   Article 13 The award and resettlement allowance for the replacement of the State-owned residential houses shall be offered according to the Specific Regulations for the Implementation of House Demolishing and Relocation of Shanghai Municipality and the relevant regulations stipulated by Shanghai Municipal Housing Management Bureau.

   Article 14 Any one of the following situations or parties shall not be considered to be in the range of the resettlement of Waitan house replacement:

1. The one who has no direct leasing relationship with the housing management department;

2. The area within the illegal structures and shelters;

3. The tenant of the sublessor;

4. The unit or individual who runs a joint business with the original tenant.

   Article 15 If the original tenant does not move out or vacate the house after the deadline, the rent of the house shall be collected in accordance with the market rent standard of its character of use after the replacement.

In the Waitan Area, if the original tenant keeps using the house in its original way, the rent shall be raised accordingly. The rent standard of the houses in the Waitan Area shall be stipulated by the Municipal Housing Management Bureau, and be implemented after being approved by Shanghai Municipal People's Government.

   Article 16 Before the house replacement, if the original tenant, with the approval of the housing management department, has signed a joint business agreement with other unit by using the rented house as the condition of the joint business, the agreement shall naturally terminate after the day when the original lease expires. After the termination of the joint business agreement, if the other party's character of using the house is in conformity with the requirement of the house replacement program, it shall, under the same condition, have the priority to buy or rent the house.

   Article 17 After the replacement, the Waitan House Replacement Company shall, according to the defined character of use, transfer or rent out the vacated houses through negotiation, bidding and auction. If the house is to be transferred, the transfer shall be carried out with a price for the land-use right in accordance with the relevant regulations of the State and Shanghai Municipality; of the house is to be rented out, a lease shall be signed in accordance with the market rent standard.

   Article 18 The House-Replacement Office shall be responsible for the interpretation of the present Interim Provisions.

   Article 19 These Interim Provisions shall become effective on the date