Charter of the SHCDF Shanghai Hai Na Bai Chuan Culture Special Fund

　　Chapter One General Principle

　　Article 1: Shanghai Hai Na Bai Chuan Special Fund (hereinafter referred to as the Fund)is a special fund authorized by and subjected to Shanghai Cultural Development Foundation.

　　Article 2: The mission of the Fund is to carry forward the all-embracing city spirit of Shanghai, to promote the development of cultural construction among cities, to give grants and awards to those who have made contribution to cultural cause of our city, to remedy the“high-input, low-efficiency”defect in cultural industry, to increase the public awareness and to boost the degree of social publicity to Shanghai cultural cause.

　　Article 3: The sponsor of the Fund is Shanghai Hai Na Bai Chuan Cultural Development Co., Ltd . The company has contributed the initial funding and is the Permanent Director of the Council of the Fund.

　　Chapter Two Mission

　　Article 4: The Fund shall, through various channels and measures, strive after imbursement and contributions from organizations and individuals who show great interests in the cause of cultural construction both at home and abroad.

　　Article 5: The Fund constructively promotes the development of cultural cause in Shanghai, raises funds to encourage and reward people of insight in cultural circles and to foster relevant cultural projects, better embodies the all-embracing and flourishing city spirit of Shanghai, introduces more and better cultural projects to Shanghai and recommends more and better Shanghai cultural products to the world, in order to strengthen the communication and cooperation of culture and art projects among countries and regions.

　　Chapter Three The Council

　　Article 6: The Permanent Director of the Council is an authoritative institution of the Fund, and it consists of the companies sponsoring it. The council is the management and supervisory setup of the Fund. The members of the council are augmented or recalled basing on their contribution to the Fund. The Council convenes irregularly depending on the needs.

　　Article 7: The Council has one Chairman, one Vice Chairman and several Trustees. The Chairman is elected for a term of four years, and can be re-elected.

　　Article 8:The functions and powers of the Council are:

　　1.To constitute and amend the Charter of the Foundation;

　　2.To elect the Chairman and Vice Chairmen;

　　3.To examine and approve the yearly work plan and budget;

　　4.To decide on financial assistance projects and examine the fulfillments of the project plans;

　　5.To discuss and decide on other major issues of the Foundation.

　　Article 9:The Fund's daily work and fundraising are presided by the Chairman.

　　Chapter Four Trustees and Others

　　Article 10:Representatives of organizations and individuals at home and abroad can be approved to be members or units of the Fund as long as they accede to the Charter, show great enthusiasm in the cause of nation's culture and art and take on some necessary assignments in the Fund.

　　Article 11:Trustees have the right to participate in and supervise all kinds of work and to join all kinds of activities in the Fund. Also, they have the obligation to abide by the Fund's Charter, to execute resolutions made by the Council and actively accomplish the task assigned by the Fund.

　　Article 12: There can be one supervisor in the council, who should be from the Shanghai Cultural Development Foundation. The Fund's financial affair is done by the Shanghai Cultural Development Foundation.

　　Chapter Five The Fund

　　Article 13:The sources of the Fund are: funds for cultural activities given by the government, contributions from individuals or organizations at home and abroad as well as other legal incomes.

　　Article 14:The Fund is managed under the related requirement of Charter of Shanghai Cultural Development Foundation (SHCDF).

　　Article 15: The funds are utilized in Shanghai culture-related items and cultural undertaking. On condition that the funds are sufficient and with both the resolution of the Council and the approval of the SHCDF, the funds can also be properly utilized in other items and activities which are in line with principles in the Charter.

　　Article 16: The Fund's outlay should be signed both by the Chairman and the authorized representatives from Shanghai Cultural Development Foundation.

　　Article 17:All items granted by this fund should give clear indication of Items Granted by Shanghai Hai Na Bai Chuan Culture Special Fund in proper way when appeared in public.

　　Article 18:The Fund abides by the related finance system, audit system and social supervision system of Shanghai Cultural Development Foundation. The Fund implements an independent system of accounting and account opening and reports to the Council about the annual Budget and Final Account.

　　Article 19:When the sum of the fund（including fixed asset）is less than RMB100,000Yuan,the fund should be brought forward for accounting purposes. After liquidation, the asset is still in the possession of Shanghai Cultural Development Foundation, and the fund shall be disbanded simultaneously.

　　Chapter Six Appendix

　　Article 20:The Council is entitled the sole right to the interpretation and amendment of the Charter.