Exhibit 10.16
(Summary Translation)
POLYSILICON SUPPLY FRAMEWORK COOPERATION AGREEMENT
PARTY A: JIANGXI LDK SOLAR HIGH-TECH CO., LTD.
Address: High-Tech Industrial Park, Xinyu City, Jiangxi Province
Legal Representative: Xxxxxxxx Xxxx
PARTY B: LUOYANG ZHONGGUI HIGH-TECH CO. LTD.
Address: Gaoxin District, Luoyang City
Legal Representative: Wenhai Sun
To take advantage of each other's strengths, jointly prevent market and
industry risks and obtain development advantage, Party A and Party B, after
friendly negotiations and based on the principle of mutual trust and respect,
enter into this long-term strategic cooperation agreement to establish a
long-term, friendly and cooperative relationship:
ARTICLE 1 Party A's Obligations
1 Party A undertakes that it will give priority to using Party B's solar
grade polysilicon feedstock under the same condition, and will expand its
purchasing quantity each year based on Party B's production capacity
expansion.
2 Party A undertakes that starting from November 2007, it will purchase solar
grade polysilicon feedstock from Party B, provided that the quality of the
polysilicon feedstock supplied by Party B shall comply with the industry
standards. The specific purchase quantity will be determined based on the
production expansion situation of Party B, and the minimum purchasing
quantity shall be at least 200 tons per year for each year starting from
2008. The exact supply quantity will be decided by both parties through
agreements, and the cooperation period is preliminarily set for 5 years.
3 Party A undertakes to make advance payment for the purchase of solar grade
polysilicon feedstock under this agreement. The specific payment schedule
is as follows:
Renminbi fifty million to be paid before October 30, 2007; Renminbi one
hundred and fifty million to be paid before November 30, 2007; Renminbi one
hundred and eighty million to be paid before April 30, 2008; and Renminbi
twenty million to be paid before December 31, 2008. The total amount is
Renminbi four hundred million,
