Exhibit 10.22
(Summary Translation)
LOAN AGREEMENT
This AGREEMENT is made by and between Xx. Xxxxxxxx Xxxx (hereinafter referred to
as "Party A") and Jiangxi LDK Solar Hi-Tech Co., Ltd. (hereinafter referred to
as "Party B").
Whereas, Party B, currently in its early stage of operations, is in need of
funds to finance its operations and wishes to borrow loans from Party A.
NOW, THEREFORE, Party A and Party B, subject to the terms and conditions set
forth herein, agree as follows:
1. Currency of the loan: Renminbi (hereinafter referred to as "Rmb").
2. Loan amount: Party A shall lend to Party B Rmb 200 million (hereinafter
referred to as the "Principal" or "Principal Amount").
3. Interest rate: The loan shall bear interests at the benchmark lending rates
published by the People's Bank of China from time to time (hereinafter
referred to as the "Interest").
4. Use of the loan proceeds: The loan proceeds shall be used by Party B to
purchase equipment and raw materials necessary for its productions and for
other purposes as consented to by Party A.
5. Source of the loan: Party A undertakes that the source of funds lent to
Party B is legal. Except for the obligation to repay the Principal and
Interest of the loan to Party A in accordance with this Agreement, Party B
shall not be required to pay any financing expenses incurred by Party A to
any third party.
6. Loan advancement: Party A may advance, or designate a third party to fund,
the Principal Amount to Party B in installments, and the number and amount
of installments shall be determined by Party A. Party A may not demand
repayment by Party B of any amount exceeding the sum of the aggregate
outstanding Principal Amount plus Interest accrued.
7. Term of the loan: Both parties agree that the loan shall have no fixed
term. Should Party A demand repayment by Party B of any Principal Amount
and Interest accrued, Party A shall provide Party B a 15-business day
advance notice with respect to the amount of repayment and due date
thereof.
8. Loan repayment: The parties agree that Party B shall repay the loan to
Party A or any third party designated by Party A in one lump sum or in
installments, and the parties shall separately agree on the particulars of
such repayment.
9. Loan guarantee: The parties agree that Suzhou Liouxin Industry Co., Ltd.,
Saiweng Technology (Suzhou) Co., Ltd. and Jiangxi Liouxin Industry Co.,
Ltd. (collectively, the "Guarantors") shall provide guarantees for the loan
and be jointly and severally liable for the obligations of Party B under
this Agreement and that Party A and the Guarantors shall enter into
separate guarantee
agreements to provide particulars of the guarantees.
10. Remedies for breach: (1) Party A has the right to require partial or full
repayment of the outstanding Principal Amount and accrued but unpaid
Interest thereof should Party B fail to use the loan in accordance with
this Agreement; and (2) Party B shall repay the outstanding Principal
Amount and accrued but unpaid Interest thereof in accordance with this
Agreement. Should Party B request an extension of the loan, Party B shall
inform Party A of such intention at least 15 days prior to the due date. If
Party B fails to repay any loan amount according to this Agreement, Party A
shall have the right to demand repayment of the outstanding Principal
Amount and accrued but unpaid Interest thereof and shall also have the
right to seek damages calculated at 0.01% of the outstanding loan amount
per day.
11. Dispute resolution: The parties shall resolve all disputes arising from or
in connection with this Agreement through consultation. If the parities
cannot reach an agreement through such consultations, both parties agree to
submit the disputes to the Shanghai Branch of China International Economic
and Trade Arbitration Commission ("CIETAC") for arbitration. The
arbitration shall be conducted in accordance with the rules and procedures
of CIETAC then in effect. The arbitration award by CIETAC shall be final
and binding upon both parties.
12. Miscellaneous: (1) Except as permitted by laws and administrative
regulations, neither party may modify or terminate this Agreement without
the consent of the other party; (2) this Agreement shall become effective
upon signing by both parties; and (3) this Agreement shall be signed in two
original copies, and each party shall keep one copy hereof.
PARTY A
/s/ Xxxxxxxx Xxxx
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Xxxxxxxx Xxxx
PARTY B
/sealed/ Corporate chop of Jiangxi LDK Solar Hi-Tech Co., Ltd.
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Jiangxi LDK Solar Hi-Tech Co., Ltd.
Date: September 22, 2005