Confidential Exhibit 10.7
(English Translation of the Original Contract in Chinese)
SILICON SUPPLY AGREEMENT
THIS CONTRACT (this "Contract") is entered into this 8th days of October
2006 by and between the following two parties:
Buyer: Jiangsu Linyang Solarfun Co., Ltd., with its registered address at
000 Xxxxxxx Xxxx, Xxxxxx, Xxxxxxx Xxxxxxxx, and Xx. Xx Yonghua being its legal
representative (hereinafter referred to as "Party A"); and
Supplier: E-mei Semiconductor Material Factory, with its registered address
at 00 Xxxxx Xxxx, X-xxxxxxx, and Xx. Xxx Bin being its legal representative
(hereinafter referred to as "Party B").
Following the principle of mutual development and in view of the fact that
the two parities have become full strategic partners, with respect to the
purchase of silicon products in 2007, the two parties has agreed to the
following :
1. Product Quantity. The quantity of the products to be supplied by the
Seller to the Buyer shall be no less than 50% of Party B's annual production
capacity of silicon products. The Seller shall supply the products on a monthly
basis;
2. Product Price. The price of the products to be supplied shall be
determined pursuant to the pricing method agreed in the Silicon Products
Pre-Purchase Contract (No. EMC2006001), i.e. "[*]% of the market price";
3. Quality Requirements and Technical Standards. The quality standard shall
be determined by reference to the general standard for monocrystalline silicon
rods or wafers employed by international PV cell enterprises. The principal
quality data shall meet the production requirements for PV cells, provided that
if there is any special requirement, Party A and Party B shall negotiate with
respect thereto separately;
4. Delivery. The products shall be delivered to the warehouse of Party A;
5. Means of Transportation and Fee Assumption. Party B shall deliver the
products to the warehouse of Party A and the relevant fees shall be burdened by
Party B;
6. Packaging. The packaging must meet the requirements for the long
distance transportation of solar grade monocrystalline silicon rods/wafers;
*Confidential Treatment Requested. The redacted material has been separately
filed with the Securities and Exchange Commission.
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7. Standard and Method for Inspection and Acceptance. The products supplied
by Party B shall be inspected pursuant to the method provided in the standard
for inspection and acceptance;
8. Settlement. Party A shall make the payment in advance.
9. Term of this Contract. This Contract shall be valid in 2007.
10. Liability for Breach of Contract:
(1) The two parties agree that the aggregate payment to be made under this
Contract shall be computed on the basis of 50% of the actual production
capability and 92% of the then market price of the products;
(2) In case one party ("Defaulting Party") fails to perform this Contract
pursuant to the terms and conditions agreed hereunder, the Defaulting Party
shall compensate, on a monthly basis, the other party ("Non-defaulting Party")
liquidated damages which shall be 1% of the aggregate payment to be made under
this Contract and continue to perform this Contract;
(3) In case this Contract is unable to be implemented due to the breach of
contract committed by the Defaulting Party, then the Defaulting Party shall be
imposed on the liabilities for breach of contract in accordance with the
Contract Law of the People's Republic of China and shall compensate the
Non-defaulting Party for all the losses resulting from the failure of the
Defaulting Party to perform its obligation hereunder.
11. Any dispute arising from or in connection with the performance of this
Contract shall be resolved through consultations between the parties hereto. In
case of failure to reach any agreement through such consultations, the parties
agree that such dispute shall be resolved by a competent court in Shanghai.
12. Other matters agreed by the two parties:
This Contract shall become effective upon being affixed with the signature
of the duly authorized representatives and the company seal of both parties
hereto.
This Contract shall be executed in two originals, with each party to hold
one. The facsimile copy of this Contract shall have the same force and effect.
PARTY A: (TO BE AFFIXED WITH PARTY A'S COMPANY SEAL)
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Signed by: Xx Xxxxxxx (signature)
Legal Representative
Bank of Deposit:
A/C:
Tel:
PARTY B: (TO BE AFFIXED WITH PARTY B'S COMPANY SEAL)
Signed by: Deng Liangping (signature)
Authorized Representative
Signed by: Wei Bin (signature)
Legal Representative
Bank of Deposit:
A/C:
Tel:
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