I. When a technical innovation and venture enterprise in the Zhongguancun Science Park transforms its scientific and technological achievements and awards its related technical personnel in the form of stock, contribution ratio or other equity forms, or if the technical personnel have difficulty in paying tax in a lump sum, they may pay their individual income tax by installments upon approval of the competent tax authority, but the payment period may not exceed five years.

(I) The technical innovation and venture enterprises in Zhongguancun Science Park refer to the high-tech enterprises that are registered inside the park. They adopt audit collection and are recognized by the high-tech enterprise recognition authority of Beijing.

(II) The related technical personnel of an enterprise refers to the important technical personnel and managerial personnel of the company, including:

1. The technical personnel with outstanding contribution to the R&D and industrialization of the scientific and technological achievements of the enterprise, including the main researchers of the scientific and technological achievements, staff members who are responsible for a major development project, the main technical personnel who have made major innovations or improvements to a leading product or core technology, and the main R&D personnel in an institution of a higher learning or scientific research institution who help transform scientific and technological achievements to products.

2. The managerial personnel with outstanding contributions to the development of the enterprise, including the senior managers presiding over the overall production and operation of the enterprise, and the intermediate and senior managers responsible for the production and operation of the main products (services) of the enterprise, of which total income accounts for more than 50 percent of its main business income (or main business profit).

(III) Payment of individual income tax by installment refers to the technical personnel who have obtained equity awards shall pay the individual income tax every time they earn profits from the equity.

(IV) The equity award to technical personnel shall be subject to individual income tax according to the related prevailing policy. The assessable price of equity award is determined in reference to the fair market price of the equity at the time of acquisition.

(V) If the technical personnel transfer the equity thereafter, the transfer income exceeding the fair market price at the time of acquisition shall be subject to individual income tax pursuant to the regulations applicable to "property transfer income".

Policy execution duration: January 1, 2010 ~ December 31, 2011.

Procedure:

(I) When technical personnel of an enterprise are entitled to the policy for payment of individual income tax by installment, the awarding organization shall report to the competent tax authority by providing the following materials in the first seven days of the month next to the equity award issuing month:

1. Certificate of a high-tech enterprise (photocopy).

2. Enterprise Registration Certificate in a subpark of the Zhongguancun Science Park issued by the Administrative Committee of Zhongguancun Science Park.

3. The equity award plan of the awarding organization, which is included in the scope of the pilot program on equity incentives in the Zhongguancun Science Park, is approved or recorded by the related department as per the requirements on an equity incentive pilot program of the Zhongguancun Science Park, as well as a list of the awarded technical personnel.

4. Form of Personal Information of Equity Award Receivers from a Technical Innovation and Venture Enterprise in the Zhongguancun Science Park.

(II) The awarding organization shall fulfill its obligation for withholding tax according to the law and shall fill out the Form of Personal Information of Equity Award Receivers from a Technical Innovation and Venture Enterprise in Zhongguancun Science Park and submit it to the competent tax authority for record prior to March 31 of the year after the equity award issuing year.