ibcnu2day69


PRE-SOLD ORDERS? UH.. NOT EXACTLY
31-Dec-07 02:19 am   


(5) When its production capacity reaches 200 MW or above in 2007, LDK Solar will
supply 100 MW of silicon wafers to Suntech for the year of 2007. 30% of the
silicon raw materials will be supplied by Suntech. After 2007, LDK Solar will
supply 50-60% of its silicon wafers annually to Suntech and all the raw
materials for the production will be procured by LDK Solar. After 2007, LDK
Solar will supply its multicrystalline silicon wafers to Suntech at a 5%
discount off the international mainstream market prices. Specific details may be
settled by the end of 2006.

(6) Suntech will purchase on a priority basis the maximum amount of silicon
wafers produced by LDK Solar. If LDK Solar can satisfy Suntech's rapidly growing
requirements for silicon wafers, Suntech will not procure multicrystalline
silicon wafers from other manufacturers. In addition, subsequent to an overall
evaluation by Suntech on the economics and efficiencies with favourable results,
Suntech will try its best to expand its multicrystalline solar cell production
and gradually reduce its monocrystalline cell production, in our mutual efforts
to contribute to the development of photovoltaic application in China and the
world.

(7) Both parties shall negotiate the prices of silicon raw materials supplied by
Suntech based on the quality of the materials, which in no event shall be higher
than the market price.

(8) The payment terms for silicon wafer purchases: pre-payment of 60% of the
purchase price 6 months before shipments of solar wafers. Pre-payments for
silicon wafers purchased in 2006 will be based on the pricing under
Sub-section F of Section 4 of this agreement. The remaining 40% will be
calculated proportionately at the time of delivery based on the actual silicon
raw materials procurement contract prices and the corresponding silicon wafer
prices.

(9) Support of each other and communication with each other with regard to
technological and market information. Suntech will provide LDK Solar with its
knowledge of and experiences on the current silicon ingot and wafer production
technologies and technical skills. LDK will improve the quality of its products
to satisfy the needs of its customers.

(10) With the development of the cooperative relationship, the two parties will
further explore their long term in-depth cooperation, such as joint investment
in certain projects or holding of each other's shares.

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