(Excerpts from the Supportive Provisions of the Measures)

1. Supporting major global collaborative projects. Lin-gang Special Area will relax restrictions on registered capital and investment methods for manufacturers of large passenger aircraft and civil aviation engines, and support domestic and international competitive aviation/aerospace institutions to set up research and development (R&D) centers and invest in industrialization projects in Lin-gang Special Area. Specific incentives and supportive measures will be discussed and determined by Lin-gang Special Area Administration.

2. Support for tackling problems in core technologies and products. Every year, according to the State and Shanghai municipality's requirements for industrial and technological innovation, focusing on the R&D of cutting-edge technologies such as large passenger aircraft, aero engines, unmanned aerial vehicles (UAVs) and micro-satellites, aiming at breakthroughs in core basic parts (components), key basic materials, advanced basic processes and basic industrial technologies, Lin-gang Special Area Administration shall collect product demands and select high-quality projects in the aviation/aerospace field, and choose teams to take tasks by way of international competitive bidding. Based on project requirements and expert review results, enterprises (or consortiums) that undertake and complete the core technology problem-tackling tasks will be offered a subsidy up to 50 percent of the technology R&D expenses.

3. Supporting industry-wide development and industry cluster construction. Lin-gang Special Area will support the introduction and cultivation of a batch of leading enterprises and small and medium-sized enterprises that have certain market share at home or abroad in the aviation and aerospace industry, speed up the gathering of basic research, technology development, product development, experimental verification and other supporting agencies and projects, to form industry concentration and synergetic development, promoting industrywide development of aviation and aerospace covering assembly delivery, production, operation and maintenance. Enterprises with paid-in capital exceeding (including) 50 million yuan ($7.10 million) will be offered a reward equal to 3 to 5 percent of the paid-in capital with a maximum of 10 million yuan for each enterprise. The reward shall be based on the enterprise's paid-in capital when it first reaches the above standards and it shall be paid at the rate of 40 percent, 30 percent and 30 percent respectively for three years.

4. Supporting transactions and purchases within Lin-gang Special Area. Aviation/aerospace enterprises in Lin-gang Special Area that purchase products or services exceeding 5 million yuan annually from non-related enterprises in Lin-gang Special Area will be given a reward equal to 2 percent of the purchase invoice amount with a maximum of 3 million yuan for each enterprise each year.

5. Supporting large-scale development of enterprises:

1) R&D or producer service enterprises that achieve for the first time annual sales revenue exceeding 50 million yuan, 100 million yuan, 500 million yuan, 1 billion yuan and 2 billion yuan will respectively be offered a one-off reward of 1 million yuan, 1.5 million yuan, 2 million yuan, 3 million yuan and 5 million yuan maximum. Each rank is rewarded once. Skipped ranks are also rewarded.

2) Manufacturing enterprises that achieve for the first time annual sales revenue exceeding 500 million yuan, 1 billion yuan, 5 billion yuan and 10 billion yuan will respectively be offered a one-off reward of 1 million yuan, 2 million yuan, 3 million yuan and 5 million yuan maximum. Each rank is rewarded once. Skipped ranks are also rewarded.