Document:

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                                                                    EXHIBIT 10.3

                                                           [ENGLISH TRANSLATION]

                                                                  Execution Copy

                              DATED AUGUST 25, 2006

                   BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD.
                                       AND
                   YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

                             JOINT VENTURE CONTRACT

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                                    CONTENTS

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SECTION                                                                     PAGE
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<S>                                                                         <C>
1.  DEFINITIONS..........................................................     3
2.  PARTIES TO THE CONTRACT..............................................     5
3.  ESTABLISHMENT OF THE JV COMPANY......................................     6
4.  PURPOSES AND SCOPE OF BUSINESS.......................................     7
5.  TOTAL INVESTMENT AND REGISTERED CAPITAL..............................     8
6.  TRANSFER AND INCREASE OF REGISTERED CAPITAL AND SUBSCRIPTION RIGHT...     8
7.  RESPONSIBILITIES OF THE PARTIES......................................    13
8.  BOARD OF DIRECTORS...................................................    14
9.  SUPERVISORS..........................................................    16
10. OPERATION AND MANAGEMENT ORGANIZATIONS...............................    17
11. LABOR MANAGEMENT.....................................................    18
12. FINANCIAL AFFAIRS AND ACCOUNTING.....................................    19
13. INSURANCE............................................................    21
14. CONFIDENTIALITY......................................................    21
15. JOINT VENTURE TERM...................................................    22
16. TERMINATION AND DISSOLUTION..........................................    23
17. FORCE MAJEURE........................................................    25
18. DISPUTES RESOLUTION..................................................    25
19. APPLICABLE LAW.......................................................    26
20. MISCELLANEOUS PROVISIONS.............................................    26
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This Joint Venture Contract (the "CONTRACT") is signed on August 25, 2006 in
Baoding, Hebei, People's Republic of China

BY AND BETWEEN

(1)  BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD. ("PARTY A"), a company limited
     by shares duly established and validly existing under the laws of the
     People's Republic of China (the "PRC") and having its legal address at No.
     28, Jing Xiu Street, Baoding, Hebei, and its mailing address at No. 2222,
     West Tian Wei Road, Baoding, Hebei; Tel: 0312-3308511; Fax: 0312-3230382;
     AND

(2)  YINGLI GREEN ENERGY HOLDING COMPANY LIMITED ("PARTY B"), a legal person
     duly established and validly existing under the laws of the Cayman Islands
     and having its legal address at Century Yard, Cricket Square, Hutchins
     Drive, PO Box 2681 GT, George Town Cayman, British West Indies, and its
     mailing address at No. 3055, Middle Fuxing Road, National High-tech Zone,
     Baoding, Hebei, PRC.

(Party A and Party B are hereinafter collectively referred to as the "PARTIES"
and individually, a "PARTY".)

WHEREAS

     (1)  Baoding Tianwei Yingli New Energy Resources Co., Ltd. (the "COMPANY")
          is a limited liability company duly established and validly existing
          under the laws of the PRC and having its legal address at No. 3055,
          Middle Fuxing Road, Baoding, with the registered capital of RMB
          100,000,000;

     (2)  Baoding Yingli Group Co., Ltd. ("YINGLI GROUP") has entered into an
          Equity Purchase Agreement with Party B on the same date hereof (the
          "EPA"). According to the EPA, Yingli Group has agreed to sell to Party
          B, and Party B has agreed to purchase from Yingli Group, the 51%
          equity interest Yingli Group holds in the Company;

     (3)  In connection with the sale and purchase of the equity interest
          pursuant to the EPA, the Parties agree to convert the Company into a
          Sino-foreign equity joint venture company (the "JV COMPANY").

NOW, THEREFORE

In consideration of the foregoing premises, in accordance with the Company Law
of the People's Republic of China, the Law of the People's Republic of China on
Sino-Foreign Equity Joint Venture Enterprises and its implementing regulations
and other relevant PRC laws and regulations, adhering to the principles of
equality and mutual benefit and through friendly consultations, the Parties
hereby agree as follows:

1.   DEFINITIONS

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     Unless the provisions of this Contract provide otherwise, the following
     terms shall have the meanings set forth below:

     "AFFILIATE" means, in relation to either of the Parties, a company,
     individual or any other entity directly or indirectly controlling,
     controlled by, or under common control with, such a Party. For the purpose
     of this definition, "CONTROL", when used with respect to any entity, means
     the power to control, or cause others to control, the operation or
     management of such an entity, whether through the ownership of registered
     capital, by contract or otherwise, or the power to appoint the manager or
     majority of the members of the board of directors, management committee or
     equivalent decision making body of such an entity.

     "APPROVAL AUTHORITY" means the Ministry of Commerce of the PRC or its local
     counterpart in Hebei Province which is authorized by the Ministry of
     Commerce to examine and approve this Contract, the Articles of Association
     and any amendments or supplements hereto and thereto.

     "ARTICLES OF ASSOCIATION" means the articles of association of the JV
     Company entered into by the Parties together with this Contract on the date
     hereof.

     "BOARD" means the board of directors of the JV Company.

     "BUSINESS LICENCE" means the JV Company's business licence issued by the
     Registration Authority in connection with the conversion of the Company
     into the JV Company.

     "EXERCISE NOTICE" shall have the meaning provided in Section 6.3.1.

     "SWAPPED EQUITIES" shall have the meaning provided in Section 6.3.1.

     "CHINA" or "PRC" means the People's Republic of China.

     "DATE OF ESTABLISHMENT" shall have the meaning provided in Section 3.1.

     "JV COMPANY" means the Sino-foreign joint venture limited liability company
     converted from the Company by Party A and Party B pursuant to this
     Contract.

     "JOINT VENTURE TERM" means the term of the JV Company set forth in Section
     14.1.

     "MANAGEMENT PERSONNEL" means the Chief Executive Officer, the Chief
     Financial Officer, the departmental managers and other personnel designated
     by the Board as Management Personnel.

     "QUALIFIED STOCK EXCHANGE" means (i) New York Stock Exchange; (ii) Shanghai
     Stock Exchange, and (iii) any other international recognized stock exchange
     or automated quotation system outside the PRC.

     "REGISTRATION AUTHORITY" means the State Administration for Industry and
     Commerce of the PRC or its authorized local counterpart in Hebei Province
     in charge of the registration of the JV Company.

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     "RENMINBI" or "RMB" means the official currency of the PRC.

     "U.S. DOLLARS" or "US$" means the official currency of the United States of
     America.

2.   PARTIES TO THE CONTRACT

5.1  THE PARTIES

     The Parties to this Contract are as follows:

     (a)  Party A

          Name: BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD.

          Country of registration: China

          Legal address: No. 28, Jing Xiu Street, Baoding, Hebei

          Mailing address: No. 2222, West Tian Wei Road, Baoding, Hebei, China

          Legal representative: Name: Ding Qiang

                                Title: Chairman

                                Nationality: Chinese

     (b)  Party B

          Name: YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

          Country of registration: Cayman Islands

          Legal address: Century Yard, Cricket Square, Hutchins Drive,
          PO Box 2681 GT, George Town Cayman, British West Indies

          Mailing address: No. 3055, Middle Fu Xing Road, Baoding, Hebei, China

          Legal representative: Name: Miao Lian Sheng

                                Title: Director

                                Nationality: Chinese

5.2  REPRESENTATIONS AND WARRANTIES

2.2.1 Party A hereby represents and warrants that:

     (a)  it is a company limited by shares duly established and validly
          existing under the laws of the PRC in good standing and has the full
          powers and authority to conduct the business within the scope of its
          business licence;

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     (b)  it has the authority to enter into and perform this Contract and the
          transaction contemplated by this Contract;

     (c)  it has taken the requisite corporate actions to authorize the signing
          of this Contract and, the authorization and performance of this
          Contract and the transaction contemplated hereby do not and will not
          require any other company procedures of Party A unless otherwise
          provided in relevant laws, regulations and administrative rules of the
          PRC or the rules of Qualified Stock Exchanges. Upon approval by the
          Approval Authority, its obligations hereunder shall become valid and
          binding, and Party B shall have the right to require it to perform
          this Contract according to the terms hereof; and

     (d)  the execution and performance of this Contract will not violate its
          articles of association, any of its outstanding commitments or
          obligations, contractual or otherwise, or any of the currently
          effective laws, regulations, decrees or policies of the PRC.

2.2.2 Party B hereby represents and warrants that:

     (a)  it is a company duly established and validly existing under the laws
          of the Cayman Islands;

     (b)  it has the authority to enter into and perform this Contract and the
          transaction contemplated by this Contract; and

     (c)  it has taken the requisite corporate actions to authorize the signing
          of this Contract and, the authorization and performance of this
          Contract and the transaction contemplated hereby does not and will not
          require any other company procedures of Party B unless otherwise
          provided in relevant laws and regulations of the Cayman Islands or the
          Qualified Stock Exchanges. Upon approval by the Approval Authority,
          its obligations hereunder shall be valid and binding, and Party A
          shall have the right to require it to perform this Contract according
          to the terms hereof; and

     (d)  the execution and performance of this Contract will not violate its
          articles of association, any of its outstanding commitments or
          obligations, contractual or otherwise, or any of the currently
          effective laws, regulations, decrees or policies of the Cayman
          Islands.

2.2.3 Each Party shall indemnify the other Party and the JV Company against any
     and all losses that arise from any representations or warranties made by
     such Party in this Section that are proven to be untrue, incomplete,
     misleading or inaccurate in any material respect.

3.   ESTABLISHMENT OF THE JV COMPANY

5.1  ESTABLISHMENT

3.1.1 The issuance date of the Business Licence shall be the date of
     establishment of the JV Company ("DATE OF ESTABLISHMENT").

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5.2  NAME, ADDRESS AND BRANCHES

3.2.1 The name of the JV Company shall be Baoding Tianwei Yingli New Energy
     Resources Co., Ltd. in English and (Chinese Characters) in Chinese.

3.2.2 The legal address of the JV Company shall be No. 3055, Middle Fuxing Road,
     National High-tech Zone, Baoding, Hebei, PRC.

3.2.3 The JV Company may, in accordance with its needs and upon approval by the
     Board and the Approval Authority, establish subsidiaries, branch offices or
     representative offices inside or outside the PRC.

5.3  LIMITED LIABILITY COMPANY

     The organizational form of the JV Company shall be a limited liability
     company. Unless otherwise agreed in writing, once a Party has paid in full
     its contribution to the registered capital of the JV Company, it shall not
     be required to provide any further funds to the JV Company, or on behalf of
     the JV Company to any third party, by way of contribution, loan, advance,
     guarantee or otherwise. If the Parties have fully paid in their subscribed
     capital contribution to the JV Company, creditors of the JV Company shall
     have recourse only to the assets of the JV Company and shall not seek
     repayment from either of the Parties.

5.4  LAWS AND DECREES

     The JV Company shall be a legal person established under the laws of the
     PRC. The activities of the JV Company shall be governed and protected by
     the relevant published laws and regulations of the PRC.

4.   PURPOSES AND SCOPE OF BUSINESS

5.1  PURPOSES OF BUSINESS

     The business purposes of the JV Company are as follows:

     (a)  The objective of the Parties in converting the Company into the JV
          Company is to improve the efficiency of production and operation of
          the Company and to actively participate in the development of the PRC
          new energy resource industry to a greater extent;

     (b)  The Parties also desire that the JV Company improve the competitive
          position of its products on the domestic and international markets by
          improving product quality, continuously developing products that
          satisfy the needs of the JV Company's customers and improving economic
          efficiency and thereby maximize economic returns to the Parties.

5.2  SCOPE OF BUSINESS

     The business scope of the JV Company is as follows:

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     Development, production and sale of silicon solar cells and related
     products or accessories; exportation of self-produced products and
     technologies; importation of raw materials, instrument, mechanical
     equipment, components and accessories and technologies that are necessary
     for the JV Company's operation (except goods that the state designates
     specific companies to deal with or prohibits import or export); processing
     with imported materials, processing and assembly with supplied materials
     and parts, and compensation trade; design, installation and construction of
     solar energy photovoltaic electricity plants. (Operation of any business
     within the business scope that the law or administrative regulations
     require relevant approvals shall not start before such approvals are
     obtained in accordance with the law.)

5.   TOTAL INVESTMENT AND REGISTERED CAPITAL

5.1  TOTAL INVESTMENT

     The amount of the total investment of the JV Company is three hundred
     million Renminbi (RMB300,000,000).

5.2  REGISTERED CAPITAL

     The amount of the registered capital of the JV Company is one hundred
     million Renminbi (RMB100,000,000).

5.3  CONTRIBUTIONS TO REGISTERED CAPITAL

     The registered capital of the JV Company has been fully paid up. Of the
     total amount of the registered capital, the subscribed amount and
     percentage (the "CONTRIBUTION PERCENTAGE") of capital contribution of each
     Party are as follows:

     (a)  Party A subscribed for forty-nine million Renminbi (RMB49,000,000),
          corresponding to 49% of the equity interest in the JV Company.

     (b)  Party B subscribed for fifty-one million Renminbi (RMB51,000,000) in
          equivalent U.S. Dollars, corresponding to 51% of the equity interest
          in the JV Company.

     As agreed upon by both Parties, if Party B fails to complete its initial
     pubic offering and list its shares on a Qualified Stock Exchange, the
     Parties shall re-negotiate the percentages of equity interest they hold in
     the JV Company.

6.   TRANSFER AND INCREASE OF REGISTERED CAPITAL AND SUBSCRIPTION RIGHT

5.1  TRANSFER OF REGISTERED CAPITAL

6.1.1

     (a)  If either Party (the "TRANSFERRING PARTY") desires to transfer all or
          part of its registered capital in the JV Company to any third party,
          the Transferring Party shall give the Board and the other Party (the
          "NON-TRANSFERRING PARTIES") a written notice (the "TRANSFER NOTICE")
          of its intent to do so;

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     (b)  The Transfer Notice shall:

          (i)  specify the percentage of the registered capital of the JV
               Company that the Transferring Party intends to transfer (the
               "OFFERED SHARE PERCENTAGE"); and

          (ii) specify the price at which the Transferring Party intends to
               transfer the Offered Share Percentage (the "OFFERED SHARE
               PERCENTAGE PRICE"), the third party who desires to purchase the
               Offered Share Percentage (the "PROPOSED TRANSFEREE"), the method
               of payment, the terms and conditions of the payment, and other
               principal terms.

     (c)  The Non-Transferring Party shall have a pre-emptive right to purchase
          the Offered Share Percentage. The Non-Transferring Party shall inform
          the Transferring Party in writing within thirty (30) days of receipt
          of the Transfer Notice whether it desires to purchase the Offered
          Share Percentage. If the Non-Transferring Party accepts the proposed
          sale offer of the Offered Share Percentage (the "OFFER"), such
          Non-Transferring Party shall purchase all of the Offered Share
          Percentage.

     (d)  If the Non-Transferring Party accepts the Offer in writing ("WRITTEN
          ACCEPTANCE") within the thirty (30) day period in sub-paragraph (c)
          above, the Parties shall use their best endeavors to procure the
          approval of the Approval Authority for the transfer of the Offered
          Share Percentage to the Non-Transferring Party and shall use their
          respective best endeavors to effect such transfer.

     (e)  If the Transferring Party has not received any written acceptance of
          the Offer from the Non-Transferring Party by the end of the thirty
          (30) day period in sub-paragraph (c) above, the Non-Transferring Party
          shall be deemed to have given its consent to the transfer of the
          Offered Share Percentage by the Transferring Party to the Proposed
          Transferee and the Transferring Party may transfer the Offered Share
          Percentage to the Proposed Transferee within sixty (60) days after the
          expiration date of the thirty (30) day period in sub-paragraph (c)
          above.

     (f)  If the Non-Transferring Party is deemed to have consented to the
          transfer by the Transferring Party to the Proposed Transferee pursuant
          to Section 6.1.1 (e), the Non-Transferring Party shall:

          (i)  sign a statement consenting to the transfer and waiving its
               pre-emptive right of purchase;

          (ii) procure each of the directors it appoints to the Board to vote in
               favour of the board resolutions proposing the transfer, the
               amendments of the Articles of Association and the relevant
               ancillary agreements;

     (g)  Any transfer by the Transferring Party to the Proposed Transferee
          pursuant to Section 6.1.1 (e) shall not be at a price lower than, or
          on terms more favourable than, those offered in the Transfer Notice.

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     (h)  Details of any purchase/transfer made in accordance with Section 6.1.1
          (e) (and any amendment to this Contract (if any) required as a result
          thereof) shall be submitted by the JV Company to the Approval
          Authority for examination and approval. The Parties agree to use their
          respective best endeavors to procure the relevant approvals as soon as
          practicable. Upon receipt of the approval of the Approval Authority,
          the Parties shall procure the JV Company to register the change in
          ownership of the registered capital with the Registration Authority
          and issue new investment certificates to the Parties to reflect the
          adjusted shareholdings, upon cancellation of the existing investment
          certificates.

6.1.2 The Parties agree that the Transferring Party may transfer all or part of
     its shares in the registered capital of the JV Company to any of its
     Affiliates, and the Non-Transferring Party shall consent to such transfers.
     In such an event, the Transferring Party shall notify the Non-Transferring
     Party in written form of the proposed transfer. The Non-Transferring Party
     shall take all actions as may be necessary to effect such a transfer,
     including but not limited to signing the letters or contracts consenting to
     such a transfer and waiving any pre-emptive right of purchase as required
     by the Transferring Party, and shall procure that all of the directors it
     appoints to the Board vote affirmatively in favour of a Board resolution
     approving such a transfer.

     Notwithstanding the above, neither Party may implement any transfer
     pursuant to this Section 6.1.2 before the completion of Party B's initial
     pubic offering and listing of Party B's shares on a Qualified Stock
     Exchange, unless otherwise agreed upon by the other Party in writing.

6.1.3 Neither Party shall mortgage, pledge, charge or otherwise encumber all or
     part of its shares in the registered capital of the JV Company without the
     prior written consent of the other Party.

5.2  INCREASE OF REGISTERED CAPITAL

6.2.1 During the term of the JV Company, upon approval by the Board and the
     Approval Authority, the registered capital of the JV Company may be
     increased or decreased in accordance with the capital requirements of the
     JV Company's business scale. Any increase or decrease of the registered
     capital of the JV Company shall be resolved unanimously by all the
     directors present at a meeting of the Board.

6.2.2 As further agreed upon by both Parties, if Party B subscribes for
     additional capital of the JV Company with proceeds from private placements
     prior to Party B's initial public offering or with proceeds from Party B's
     public offerings, both Parties shall cause all the directors they appoint
     to the Board to vote in favour of the relevant Board resolutions proposing
     the increase of the registered capital, sign all the necessary legal
     documents (including but not limited to any amendments to the joint venture
     contracts and the Articles of Association concerning the increase of the
     registered capital) and take all necessary actions (including but not
     limited to procure the JV Company to carry out the approval and
     registration procedures concerning the increase of the registered capital).

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     Under the above circumstances, the Board shall have the JV Company valued
     by an independent asset valuer in accordance with the internationally
     accepted valuation method and the relevant laws and regulations of the PRC.
     Both Parties agree that the percentage of the equity interest held by Party
     B in the JV Company following the capital increase shall be calculated
     according to the following formula:

     Percentage of Party B's equity interest in the JV Company immediately after
     the capital increase = Percentage of Party B's equity interest in the JV
     Company immediately before the capital increase + Amount of Party B's
     contribution x (1 - Percentage of Party B's equity interest in the JV
     Company immediately before the capital increase) / Fair market value of the
     JV Company.

     The Parties hereby confirm that, upon the completion of the private
     placements by Party B, the "fair market value of the JV Company" in the
     above formula shall be the expected total value of the JV Company
     immediately following Party B's contribution to the increased registered
     capital of the JV Company with the proceeds of private placements; and upon
     the completion of the public offerings by Party B, the "fair market value
     of the JV Company" in the above formula shall be the expected total value
     of the JV Company immediately following Party B's contribution to the
     increased registered capital of the JV Company with the proceeds of public
     offerings.

     For the avoidance of doubt, the Parties hereby further confirm that the
     dilution of Party A's equity interest in the JV Company as a result of
     Party B's contribution to the increased registered capital in accordance
     with the above formula shall be proportional to the dilution of the equity
     interest in the JV Company held by Party B before the registered capital
     increase. Party B agrees to timely communicate with Party A and jointly
     implement the private placements prior to its initial public offering.

6.2.3 Unless otherwise agreed upon in writing, both Parties shall have the right
     to subscribe for the increased registered capital of the JV Company (the
     "INCREASED REGISTERED CAPITAL") in proportion to their respective equity
     interests in the JV Company as of the date of the Board resolution. Each
     Party shall pay up its contribution to the Increased Registered Capital
     within thirty (30) days upon the issuance of the approval by the Approval
     Authority.

     If either Party (the "WAIVING PARTY ") (i) waives its right to subscribe
     for all or part of the Increased Registered Capital it is entitled to by
     written notice to the Board, or (ii) fails to duly contribute its
     proportion of any part of the Increased Registered Capital within thirty
     (30) days upon the approval by the Approval Authority, the other party (the
     "SOLE CONTRIBUTING PARTY") shall have the right (but not the obligation) to
     fully subscribe for all or part of the Increased Registered Capital waived
     or failed to be contributed by the Waiving Party. Under such circumstances,
     the Board shall have the JV Company valued by an independent asset valuer,
     in accordance with internationally accepted valuation method and the
     relevant laws and regulations of the PRC. Both parties agree that the
     percentage of the equity interest held by the Sole Contributing Party in
     the JV Company following the capital increase shall be calculated according
     to the following formula:

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     Percentage of the Sole Contributing Party's equity interest in the JV
     Company immediately after the capital increase = Percentage of the Sole
     Contributing Party's equity interest in the JV Company immediately before
     the capital increase +Amount of capital contribution made by the Sole
     Contributing Party x (1 - Percentage of the Sole Contributing Party's
     equity interest in the JV Company immediately before the capital increase)
     / Fair market value of the JV Company

     The Parties hereby confirm that the "fair market value of the JV Company"
     in the above formula shall be the expected total value of the JV Company
     immediately after the Sole Contributing Party's contribution to the
     increased registered capital of the JV Company.

     Both Parties undertake to sign all necessary legal documents (including but
     not limited to the amendments to the joint venture contracts and the
     Articles of Association concerning the registered capital increase) and
     take all necessary actions to complete the increase of the registered
     capital under Section 6.2.3 (including but not limited to procure the JV
     Company to carry out the approval and registration procedures concerning
     the registered capital increase)

5.3  SUBSCRIPTION RIGHT

6.3.1 Both Parties agree that, subject to the conditions that (i) Party A or its
     Affiliate (the same applies below) obtains all necessary approvals from the
     Chinese government, and (ii) Party B completes its initial public offering
     and its shares are listed on a Qualified Stock Exchange, Party A shall have
     the right to sell to Party B all the equity interest then held by Party A
     in the JV Company (the "SWAPPED EQUITY") as consideration for, and in
     exchange of, Party B's shares (the "SUBSCRIPTION RIGHT").

6.3.2 Subject to the provision of this Section 6.3, relevant PRC laws, laws of
     the jurisdiction where Party B is located, laws of the jurisdiction where
     Party B's shares are listed, laws of the jurisdiction where the Qualified
     Stock Exchange is located and the rules of such Qualified Stock Exchange,
     Party A may, within one month of the first date on which all of the
     conditions provided in Section 6.3.1 are satisfied, send to Party B a
     written notice (the "EXERCISE NOTICE") requesting sale of the Swapped
     Equity as consideration for, and in exchange of, Party B's shares. The
     Exercise Notice issued by Party B shall be accompanied by copies of all
     necessary approvals of the Chinese government for Party A to exercise the
     Subscription Right that have been obtained, legal opinions of Party A's PRC
     counsel confirming that all necessary approvals of the Chinese government
     for Party A to exercise the Subscription Right have been obtained, and all
     other necessary documents.

6.3.3 Party A shall have the Swapped Equity held by Party A valued by an asset
     valuer reasonably accepted by Party B in accordance with the
     internationally accepted valuation methods and relevant laws and
     regulations of the PRC. The asset valuation result shall be acknowledged by
     both Parties and undergo the procedures required by the laws of the PRC (if
     any). Party A shall consult with Party B to determine the value of the
     Swapped Equity on the basis of the asset valuation result.

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6.3.4 Concurrent with transfer of Swapped Equity by Party A to Party B in
     accordance with the Exercise Notice, Party B shall issue to Party A new
     common shares of Party B according to the following formula. The number of
     new common shares to be issued to Party A by Party B shall be:

     Number of shares to be issued to Party A by Party B = the total number of
     shares of Party B at the time x (Percentage of the Swapped Equity in the JV
     Company / Percentage of the equity interest held by Party B in the JV
     Company)

     For the avoidance of doubt, the Parties hereby further confirm that the
     percentage of equity interest held indirectly by Party A in the JV Company
     through Party B after Party A exercises the Subscription Right in
     accordance with this Section 6.3 is equal to the percentage of equity
     interest held directly by Party A in the JV Company immediately before the
     exercise of the Subscription Right.

6.3.5 After Party A issues the Exercise Notice, both Parties shall sign all the
     necessary documents (including but not limited to an equity purchase
     agreement between both Parties regarding the equity interest of the JV
     Company and a share subscription agreement between both Parties regarding
     issuance of new common shares), take all necessary actions and procure all
     necessary approvals from, consents of, registrations and filings with
     governmental and regulatory authorities, to make Party A the legal and
     beneficial owner of the shares issued by Party B and to make Party B the
     legal and beneficial owner of the Swapped Equity. Both Parties agree that
     exercise of the Subscription Right shall be governed by the equity purchase
     agreement and share subscription agreement to be signed by the Parties at
     the time, but the share subscription agreement shall be consistent with the
     principles set forth in Section 6.3 hereof.

6.3.6 Upon execution of the agreements provided in Section 6.3.5 above, Party A
     shall work in cooperation with Party B to take all necessary procedures
     required by the laws of the PRC, including procedures for the conversion of
     the JV Company into a wholly foreign owned enterprise.

6.3.7 Both Parties agree that if Party A fails to exercise the Subscription
     Right within three hundred (300) days from the date of the completion of
     Party B's initial public offering and listing of its shares on a Qualified
     Stock Exchange, Party A may request Party B to purchase all equity interest
     held by Party A in the JV Company at the time. Party B will undertake to
     use its best efforts to assist Party A in completing the transfer of such
     equity interest held by Party A in the JV Company. The specific manner and
     price of the transfer shall be negotiated by both Parties based on the fair
     market value and in accordance with applicable laws and regulations of the
     PRC.

7.   RESPONSIBILITIES OF THE PARTIES

5.1  RESPONSIBILITIES OF PARTY A AND PARTY B

7.1.1 In addition to its other obligations under this Contract, Party A shall:

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     (a)  assist the JV Company in obtaining the approvals, permits and licences
          necessary for the establishment and operation of the JV Company;

     (b)  assist the JV Company in procuring Renminbi by way of loans or
          otherwise as and when requested by the Board;

     (c)  assist the JV Company with the procedures for the import of necessary
          machinery and equipment, materials and supplies, and arrange the
          inland transportation thereof;

     (d)  assist the JV Company in exploring the domestic market and procuring
          information to promote sales of the products of the JV Company in the
          domestic market;

     (e)  assist the employees of the JV Company recruited outside China in
          obtaining entry visas and work permits and assist the personnel of the
          JV Company travelling abroad for training to go through the necessary
          procedures in China; and

     (f)  assist the JV Company in opening Renminbi and foreign exchange bank
          accounts in China.

7.1.2 In addition to its other obligations under this Contract, Party B shall:

     (a)  assist the JV Company in obtaining the approvals, permits and licences
          necessary for the establishment and operation of the JV Company; and

     (b)  assist the JV Company in exploring the international market and
          procuring information to promote sales of the products of the JV
          Company in the international market.

8.   BOARD OF DIRECTORS

5.1  DIRECTORS AND CHAIRMAN

8.1.1 The Board shall consist of seven (7) directors, three (3) of whom shall be
     appointed by Party A, and four (4) of which shall be appointed by Party B.
     Each Party shall promptly notify the Board if it replaces its appointee(s)
     to the Board. During the term of this Contract, if the capital contribution
     percentages of the Parties change, the Parties shall amend this Contract
     accordingly, including, without limitation, making appropriate changes to
     the composition of the Board and the number of directors to be appointed by
     each Party as agreed upon by the Parties at that time.

8.1.2 Each director shall be appointed for a term of three (3) years and may
     serve consecutive terms if reappointed by the Party that originally
     appointed her or him. A director may be removed by her or his appointing
     Party. The term of appointment of the members of the initial Board shall
     commence on the issuance date of the Business Licence. If a seat on the
     Board is vacated due to retirement, resignation, illness, disability or
     death of a director or his removal by the Party that originally appointed
     her or him, the Party that originally appointed her or him shall appoint a
     successor to serve the term of such director.

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     All the directors of the JV Company shall act in accordance with the
     resolutions of the Board, and shall not engage in any action to jeopardize
     the interest of the JV Company.

8.1.3 A director appointed by Party A shall serve as the chairman of the Board
     and a director appointed by Party B shall serve as the vice chairman of the
     Board. The chairman shall be the legal representative of the JV Company.

5.2  POWERS OF THE BOARD

     The Board shall be the highest authority of the JV Company, deciding all
     important matters of the JV Company.

5.3  MEETINGS OF THE BOARD

8.3.1 Each director shall have one vote and the chairman of the Board shall have
     no casting vote. Meetings can be convened by directors through telephone or
     video, so long as the attendance of directors satisfies the quorum
     requirements and each director could be clearly heard during the meeting.

8.3.2 Each Board meeting requires a quorum of two-thirds (2/3) or more of all
     the directors of the JV Company attending the meeting in person (including
     attending via telephone or videoconference) or by proxy. Resolutions
     adopted at any Board meeting where the quorum is not satisfied are invalid.
     If the quorum is not satisfied at a duly convened Board meeting, the
     director presiding over the meeting shall postpone the meeting to a working
     day within seven (7) working days from the originally scheduled meeting
     date, and notify in writing all the directors of the postponement. If any
     director fails to attend or appoint a proxy to attend the postponed Board
     meeting, such director shall be deemed to be present at the meeting (but
     deemed to have waived his or her voting rights) and shall be included in
     calculating the quorum.

8.3.3 The Board shall convene at least one (1) meeting every quarter. The Board
     meetings shall be convened and presided over by the chairman of the Board
     or, in his absence, by the vice chairman or, in the absence of the vice
     chairman, by a director elected by half or more of the directors. A prior
     written notice of no less than five (5) days (which shall include
     notification as to time, place and the agenda of the meeting) shall be sent
     by telex, fax or registered mail to each director. Minutes of each Board
     meeting shall be sent to all the members of the Board and shall be signed
     by all the directors who have attended such a meeting

8.3.4 If a director is unable to attend a Board meeting, she or he shall appoint
     another person in writing to attend and vote at the meeting as her/his
     proxy.

8.3.5 Upon the written request of no less than one third (1/3) of all the
     directors of the JV Company, specifying the matters to be discussed, the
     chairman or, in his absence, the vice chairman or a director authorized by
     the chairman, shall convene an interim Board meeting at a convenient time
     and location. Such interim Board meeting shall be convened by no less than
     five (5) days' prior written notice (which shall include notification as to
     time, place and

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     the agenda of the meeting) sent by fax or registered mail to each director.

8.3.6 The minutes of the Board meetings and the resolutions adopted by the Board
     shall be recorded in the minute-book of the Board meetings of the JV
     Company which shall be kept at the JV Company's legal address.

8.3.7 Resolutions in respect of the following matters shall only be adopted by a
     duly convened Board meeting, upon the unanimous affirmative vote of each
     and every director voting in person or by proxy at such meeting:

     (a)  amendment to the Articles of Association;

     (b)  merger with another entity or division of the JV Company;

     (c)  without prejudice to the power of either of the Parties to dissolve
          the JV Company in accordance with Section 16, termination or
          dissolution of the JV Company; and

     (d)  increase, reduction or transfer of the registered capital of the JV
          Company.

8.3.8 Matters other than those referred to in Section 8.3.7 shall be adopted by
     the affirmative votes of a simple majority of the directors present at a
     duly convened Board meeting in person or by proxy.

8.3.9 Notwithstanding any other provisions of this Contract, a written
     resolution may be adopted by the Board in lieu of a Board meeting provided
     that such resolution to be adopted is delivered to all the directors of the
     JV Company and affirmatively signed and adopted by each of them.

8.3.10 Directors shall serve without any remuneration for the performance of
     their duties, except that directors shall be reimbursed by the JV Company
     for their expenses incurred in attending Board meetings (including but not
     limited to costs relating to travel, food and lodging).

9.   SUPERVISORS

5.1  The Company shall have two (2) Supervisors. Each Party shall appoint one
     supervisor. The directors and the management personnel shall not be
     appointed as Supervisors.

5.2  Each supervisor shall be appointed for a term of three (3) years and may
     serve consecutive terms upon reappointment.

5.3  Powers of the Supervisors include:

9.3.1 inspecting financial affairs of the Company;

9.3.2 supervising acts of directors and senior management personnel in the
     performance of their duties to the Company, and proposing to remove
     directors and senior management personnel who have violated laws,
     regulations, the Articles of Association or resolutions of the Board;

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9.3.3 demanding directors and senior management personnel to correct any acts
     that harm the interests of the Company;

9.3.4 proposing to convene an interim Board meeting; and

9.3.5 other powers provided in the Articles of Association.

5.4  The supervisors may attend Board meetings and make inquiries and
     suggestions concerning matters being resolved by the Board.

10.  OPERATION AND MANAGEMENT ORGANIZATIONS

5.1  OPERATION AND MANAGEMENT ORGANIZATIONS

10.1.1 The JV Company shall have one (1) Chief Executive Officer who shall have
     overall responsibility for the daily operation and management of the JV
     Company. The Chief Executive Officer shall be nominated by Party B and
     appointed by the Board and shall report to and be under the supervision of
     the Board. The term of office of the Chief Executive Officer shall be three
     (3) years, and if re-nominated by Party B and re-appointed by the Board,
     the Chief Executive Officer may serve consecutive terms.

10.1.2 The JV Company shall also have one (1) Chief Financial Officer and
     several departmental managers. The Chief Financial Officer shall be
     nominated by the Chief Executive Officer and appointed by the Board. The
     departmental managers shall be appointed by the Chief Executive Officer.

10.1.3 The Chief Financial Officer shall be responsible for the financial
     matters of the JV Company and shall report to the Chief Executive Officer.
     The departmental managers shall be responsible for the operation of their
     respective departments, handle the matters delegated by the Chief Executive
     Officer, and shall report to the Chief Executive Officer from time to time.

10.1.4 A director of the JV Company may concurrently serve the office of the
     Chief Executive Officer or hold another senior management position of the
     JV Company.

5.2  RESPONSIBILITIES OF THE CHIEF EXECUTIVE OFFICER

10.2.1 The Chief Executive Officer of the JV Company shall have the following
     responsibilities:

     (a)  to take charge of the operation and management of the JV Company and
          report to the Board;

     (b)  to organize the implementation of the JV Company's plans and the
          resolutions of the Board;

     (c)  to prepare proposals for the establishment of the internal management
          organizations of the JV Company;

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     (d)  to formulate the rules and regulations for the operation and
          management of the JV Company;

     (e)  to propose to the Board for the appointment or dismissal of the Chief
          Financial Officer;

     (f)  to appoint or dismiss the Management Personnel other than those who
          should be appointed or dismissed by the Board;

     (g)  to determine the wages, welfare and benefits and rewards and
          disciplines of the working personnel and decide on their employment
          and dismissal; and

     (h)  other duties and powers conferred upon him by the PRC laws and
          regulations, the Articles of Association and the Board.

10.2.2 The Chief Executive Officer shall submit to the Board for discussion and
     approval of:

     (a)  the annual management report and accounts of the JV Company;

     (b)  the annual budget and long term plans of the JV Company; and

     (c)  other matters as may be required by the Board.

11.  LABOR MANAGEMENT

5.1  PRINCIPLES

     Matters relating to the recruitment, employment, dismissal, resignation,
     wages, welfare and other matters concerning the employees of the JV Company
     shall be handled in accordance with relevant PRC laws and regulations.

5.2  EMPLOYEES

11.2.1 The JV Company shall hire employees based upon the qualities of the
     candidates and in accordance with the demands of its operation and
     development. If the JV Company hires new employees through examinations or
     tests, only those candidates who make superior achievements in the
     examinations or tests will be hired. New employees hired by the JV Company
     shall undergo a probation period not exceeding six (6) months. During the
     probation period, the JV Company may terminate, at any time, the labor
     contracts with any employees who do not satisfy the relevant requirements,
     and do not need to pay any economic compensation to such employees upon
     such termination.

11.2.2 The Chief Executive Officer shall determine the number of employees based
     on the operational need of the JV Company.

5.3  DISCIPLINE

11.3.1 The Chief Executive Officer shall have the right to take disciplinary
     actions, including giving a warning to, recording a demerit against, and
     reducing the wages of, those employees who violate the rules, regulations
     and labor discipline of the JV Company. Where a case is

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     serious, the Chief Executive Officer may dismiss such an employee. The
     Chief Executive Officer shall also have the right to dismiss those of the
     employees who are found incompetent or unsuitable for their jobs.

11.3.2 Dismissal of employees by the JV Company shall be carried out in
     accordance with the provisions of the labor contracts, the rules and
     regulations of the JV Company and relevant PRC laws and regulations.

5.4  ANNUAL REVIEW

     The annual adjustment of salaries and other related matters of the JV
     Company's employees shall be decided by the Board and executed by the Chief
     Executive Officer.

5.5  TRADE UNION

11.5.1 The employees of the JV Company shall have the right to establish a trade
     union and to participate in the activities of the trade union in accordance
     with the Trade Union Law of the People's Republic of China. The trade union
     of the JV Company shall represent the interests of the JV Company's
     employees.

11.5.2 The trade union shall operate in accordance with the laws of the PRC and
     support the operation of the JV Company. The trade union activities shall
     be held during hours other than the working time of the JV Company;
     otherwise, approvals of the Chief Executive Officer shall be obtained
     before conducting such activities.

12.  FINANCIAL AFFAIRS AND ACCOUNTING

5.1  ACCOUNTING SYSTEM

12.1.1 The JV Company shall adopt the internationally accepted accrual basis and
     debit and credit accounting system in the preparation of its accounts.

12.1.2 The JV Company shall establish accounting systems and procedures in
     accordance with the applicable PRC accounting principles. The JV Company
     shall also ensure that it prepares and produces accounts in accordance with
     the generally accepted accounting principles as applied by Party B in its
     own accounts (including but not limited to the US GAAP) so as to satisfy
     Party B's reporting and management requirements.

12.1.3 The JV Company shall adopt Renminbi as its standard book-keeping base
     currency, but may also use U.S. dollar or other foreign currencies as
     supplementary book-keeping currencies.

12.1.4 Routine accounting records, vouchers, books and statements of the JV
     Company shall be made and kept in Chinese. At Party B's request, English
     versions shall be provided.

5.2  ACCOUNTING YEAR

     The accounting year of the JV Company shall begin on January 1 of each
     calendar year and end on December 31 of the same year. The first accounting
     period of the JV Company shall

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     commence on the issuance date of the Business Licence and end on December
     31 of the same calendar year.

5.3  ACCOUNTING REPORTS

     The Chief Executive Officer shall procure the preparation of an annual
     balance sheet, an annual profit and loss account and an annual statement of
     cash flow of the JV Company during the first three (3) months of each
     accounting year, for the immediately preceding accounting year. The Chief
     Executive Officer shall submit the balance sheet and the annual profit and
     loss account to the Board for approval after the same have been examined
     and audited by the auditors appointed by the Board.

5.4  AUDITING

12.4.1 The Board shall appoint a joint venture accounting firm registered in
     China (whose foreign party is an internationally reputable independent
     accounting firm) as the independent auditors of the JV Company. Such firm
     will perform the annual examination and audit of the financial statements
     of the JV Company, produce the relevant certificates and reports and assist
     in the production and counter-signing of the annual accounting statements
     and other documents, certificates or statements required by the PRC laws to
     be examined and certified by an accountant registered in China. The cost of
     employing the auditors shall be borne by the JV Company.

12.4.2 Each Party shall have the right to inspect the books of accounts and
     other financial records of the JV Company at any time during normal
     business hours and to take such copies thereof as it may require. Any such
     inspection shall be carried out at the cost of the Party requiring the same
     and without unnecessary disturbance to the business of the JV Company.

12.4.3 Each Party shall have the right to appoint accountants registered inside
     or outside China to undertake financial audit or examination of the JV
     Company's financial statements at any time, and the other Party and the JV
     Company shall co-operate with such accountants. All expenses of such
     financial audit or examination shall be borne by the appointing Party.

5.5  BANK ACCOUNTS AND FOREIGN EXCHANGE

     The JV Company shall open Renminbi bank accounts and foreign exchange
     accounts in currencies used by the JV Company. The JV Company's foreign
     exchange transactions shall be handled in accordance with the regulations
     of the PRC relating to foreign exchange control.

5.6  BALANCING FOREIGN EXCHANGE

     The Parties agree that the JV Company shall balance its foreign exchange
     income and expenditure by itself, using means permissible under the PRC
     laws.

5.7  PROFIT DISTRIBUTION

12.7.1 The JV Company shall, after accumulated losses of previous years have
     been fully made up and after payment of taxes in accordance with the
     relevant laws and regulations of the PRC,

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     allocate a percentage of its annual after tax profits for contribution
     towards the reserve fund, enterprise development fund and employee bonus
     and welfare fund for staff and workers.

12.7.2 In any particular accounting year, the percentages of the JV Company's
     annual after tax profits to be contributed to the above mentioned funds
     shall be decided by the Board.

12.7.3 Unless otherwise determined by the Board, after paying taxes in
     accordance with the laws and regulations and making contributions to the
     above mentioned funds, the remaining profits of the JV Company shall be
     distributed in proportion to the Parties' respective actual contributions
     to the registered capital of the JV Company.

     The risks and losses of each Party associated with the JV Company shall be
     limited to the Contribution Percentage of each Party in the registered
     capital of the JV Company.

12.7.4 The JV Company shall not distribute profits unless the accumulated losses
     of previous accounting year(s) have been fully made up. Remaining
     undistributed profits from previous years can be distributed together with
     those of the current year.

12.7.5 All payments under this Section shall, at the request of the receiving
     Party, be remitted electronically or by telegraphic transfer to a bank
     account designated in advance by the receiving Party.

13.  INSURANCE

5.1  The JV Company shall purchase all necessary insurance services at its own
     cost and expense during the term of the JV Company.

5.2  The types, amounts and currencies of insurance coverage shall be determined
     by the Chief Executive Officer of the JV Company.

5.3  All items of insurance of the JV Company shall be taken out with an
     insurance company registered in China or, to the extent permitted under the
     PRC law, overseas.

14.  CONFIDENTIALITY

5.1  During the term of this Contract and for a period of five (5) years from
     the date of termination or expiration of this Contract for any reason
     whatsoever, the Receiving Party of any Confidential Information shall:

     (a)  keep the Confidential Information confidential;

     (b)  not disclose the Confidential Information to any person without the
          prior written consent of the Disclosing Party; and

     (c)  not use the Confidential Information for any purpose other than for
          the performance of its obligations under this Contract.

5.2  The obligations contained in Section 5.1 shall not apply to any
     Confidential Information which:

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     (a)  at the date of this Contract, is in, or at any time after the date of
          this Contract, comes into, the public domain other than through breach
          of this Contract by the Receiving Party;

     (b)  can be shown by the Receiving Party to the reasonable satisfaction of
          the Disclosing Party to have been known by the Receiving Party before
          disclosure by the Disclosing Party to the Receiving Party; or

     (c)  after the date of this Contract, comes lawfully into the possession of
          the Receiving Party from a third party.

5.3  For the purposes of this Section, "CONFIDENTIAL INFORMATION" means any
     information of a confidential nature disclosed (whether in writing,
     verbally or by any other means and whether directly or indirectly) by one
     Party (the "DISCLOSING PARTY") to the other Party (the "RECEIVING PARTY")
     whether before or after the date of this Contract, including but not
     limited to any information relating to the Disclosing Party's operations,
     plans or intentions, know-how (including management know-how), trade
     secrets, market opportunities and business affairs.

5.4  The provisions of this Section shall survive the termination of this
     Contract and the dissolution or liquidation of the JV Company for a period
     of five (5) years.

5.5  The obligations contained in this Section shall not apply to:

     (a)  disclosures made in accordance with relevant legal procedures,
          subpoenas, or requirements of laws and regulations or rules of a
          Qualified Stock Exchange;

     (b)  for the purposes of this Contract, within the reasonable scope of
          disclosure, the Receiving Party's disclosures of information to its
          employees, directors, consultants, lawyers, auditors, accountants or
          other staffs appointed by the JV Company in writing; and

     (c)  other disclosures permitted in accordance with this Section.

15.  JOINT VENTURE TERM

5.1  The Joint Venture Term shall commence on the issuance date of the Business
     Licence and expire on the date fifty (50) years after the issuance of the
     Business Licence unless extended pursuant to the provisions of Section
     15.2.

5.2  Notwithstanding the provisions of Section 15.1, either Party to this
     Contract may propose an extension of the Joint Venture Term no later than
     twelve (12) months before expiration of the Joint Venture Term. If such
     proposal is accepted by the other Party and approved by the Board, then an
     application for approval to extend the Joint Venture Term shall be
     submitted to the Approval Authority one hundred and eighty (180) days prior
     to the expiration date of the Joint Venture Term. Upon such approval being
     granted, the JV Company shall proceed with registration formalities to
     extend the Joint Venture Term.

5.3  If the Joint Venture Term is not extended pursuant to this Section, the
     Parties shall procure that

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     the Board unanimously agree to dissolve the JV Company.

16.  TERMINATION AND DISSOLUTION

5.1  TERMINATION

     Subject to other provisions of this Section, this Contract shall be
     terminated upon the expiration of the Joint Venture Term, unless extended
     pursuant to Section 15.2, or terminated in advance according to a written
     agreement between the Parties or Section 16.2.

5.2  EARLY TERMINATION

     Either Party shall have the right to give written notice to the other Party
     of its desire to terminate this Contract prior to the expiration of the
     Joint Venture Term under the following circumstances:

     (a)  if the JV Company or the other Party becomes bankrupt, or is the
          subject of proceedings for liquidation or dissolution, or ceases to
          carry on business or becomes unable to pay its debts as they come due;

     (b)  if the conditions or consequences of Force Majeure as defined in
          Section 17 prevail for a period in excess of six (6) consecutive
          complete calendar months and the Parties are unable to find an
          equitable solution pursuant to Section 17;

     (c)  if the Business Licence or any extension or substitution thereof is
          terminated, cancelled or revoked; or

     (d)  for any other reason provided in this Contract.

5.3  NOTIFICATION PROCEDURE

     Within one (1) month after a Party gives the notice pursuant to Section
     16.2, the Parties shall commence negotiations and endeavor to resolve the
     matter leading to such notice. In the event that the matter is not resolved
     to the satisfaction of the Parties within one (1) month after commencement
     of negotiations or either of the Parties refuses to commence negotiations
     within the period stated above, the notifying Party may give a written
     notice (the "DISSOLUTION NOTICE") to the other Party of its desire to
     dissolve the JV Company.

5.4  LIQUIDATION PROCEDURES

16.4.1 The Parties shall procure that the Board unanimously agree to dissolve
     the JV Company and submit a dissolution application for approval by the
     Approval Authority if:

     (a)  a Dissolution Notice is issued and no resolution is agreed upon by the
          Parties within thirty (30) days after the issuance of the Dissolution
          Notice; or

     (b)  the Joint Venture Term expires and no extension of the term is agreed
          upon by the Parties.

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16.4.2 The Board shall appoint a committee (the "LIQUIDATION COMMITTEE") which
     shall have the power to represent the JV Company in all legal matters. The
     Liquidation Committee shall value and liquidate the JV Company's assets in
     accordance with applicable published PRC laws and regulations and the
     principles set forth therein.

16.4.3 Each Party may appoint directors of the JV Company or professional
     advisers, such as accountants and lawyers qualified either in China or
     overseas, to be members of the Liquidation Committee. The number of members
     of the Liquidation Committee shall be the same as the Board members and the
     respective right to appoint members of the Liquidation Committee by each
     Party shall correspond to the respective right of such Party to nominate
     directors as set forth in Section 8.1.1. One of the members of the
     Liquidation Committee appointed by Party B shall be its chairman. The Board
     shall report the formation of the Liquidation Committee to the Approval
     Authority. The Liquidation Committee may appoint professional advisers to
     assist in the liquidation. The Liquidation Committee shall make decisions
     based on unanimous consent.

16.4.4 The Liquidation Committee shall conduct a thorough examination of the JV
     Company's assets and liabilities, on the basis of which it shall develop a
     liquidation plan which, if approved by the Board, shall be executed under
     the Liquidation Committee's supervision.

16.4.5 In developing and executing the liquidation plan, the Liquidation
     Committee shall use every effort to obtain the highest possible price for
     the JV Company's assets. Considerations shall be given to sale of the JV
     Company's assets by public auction open to domestic and foreign bidders
     with a view towards sales at international market prices.

16.4.6 The liquidation expenses, including remuneration to members of the
     Liquidation Committee, shall be paid out of the JV Company's assets in
     priority to the claims of other creditors.

16.4.7 After the liquidation of the JV Company's assets and the settlement of
     all its outstanding debts, the balance of its assets shall be paid over to
     the Parties in proportion to their respective contributions to the
     registered capital of the JV Company.

16.4.8 Following the completion of all liquidation procedures, the Liquidation
     Committee shall submit a final report approved by the Board to the Approval
     Authority for approval, submit the Business Licence to the Registration
     Authority and complete all other formalities for nullifying the JV
     Company's registration, whereupon this Contract shall be terminated.

5.5  FOREIGN EXCHANGE

     Any and all amounts payable to Party B by the Liquidation Committee
     pursuant to Section 16.4.7 shall be paid promptly to Party B in foreign
     exchange which shall be freely remitted out of China. Any expenses related
     to the conversion of Renminbi to foreign exchange shall be borne by Party
     B.

5.6  SPECIAL LIQUIDATION

     If the Parties are unable to carry out the above ordinary liquidation
     procedures, the JV Company

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     shall undertake the special liquidation procedures in accordance with the
     Procedures for Liquidation of Foreign-Investment Enterprises and other
     relevant laws and regulations.

17.  FORCE MAJEURE

5.1  "FORCE MAJEURE" means all events that are beyond the control of the Parties
     to this Contract, and which are unforeseen, or if foreseen, unavoidable,
     and which prevent either Party from performing all or a material part of
     its obligations. Such events shall include but are not limited to
     explosions, shipwrecks, acts of nature or fires, floods, sabotage,
     accidents and any other similar contingency.

5.2  If an event of Force Majeure occurs, to the extent that any contractual
     obligation of either of the Parties cannot be performed as a result of such
     an event, such contractual obligation shall be suspended while the Force
     Majeure subsists and the due date for performance thereof shall be
     automatically extended, without penalty, for a period equal to such
     suspension.

5.3  The Party encountering Force Majeure shall promptly inform the other Party
     in writing and shall furnish appropriate proof of the occurrence and
     duration of such Force Majeure. The Party encountering Force Majeure shall
     also use all reasonable endeavors to terminate the Force Majeure.

5.4  In the event of Force Majeure, the Parties shall immediately consult with
     each other to find an equitable solution and shall use all reasonable
     endeavors to minimize the consequences of such Force Majeure.

18.  DISPUTES RESOLUTION

5.1  Any dispute or disagreement arising out of or in connection with this
     Contract, including any issue regarding the existence, interpretation,
     validity, termination or performance of this Contract, shall be submitted
     to and settled by the Hong Kong International Arbitration Centre (the
     "CENTRE"), applying the UNCITRAL Arbitration Rules then effective. Such
     Arbitration Rules (including any amendment thereto) shall be deemed as a
     part of this Contract. The arbitration venue shall be Hong Kong.

5.2  Any award made by the arbitral tribunal of the Centre shall be final and
     binding on the Parties. Both parties shall execute the award. The refusal
     of one Party to execute the award authorizes the other Party to apply for
     enforcement to the courts that have jurisdiction over the issue in
     accordance with the provisions of applicable laws.

5.3  No arbitration of any dispute or disagreement shall commence unless the
     Parties have attempted genuinely to settle the same amicably within a
     period of ninety (90) days after the issuance of a written arbitration
     notice by one Party to the other, which notice shall describe generally the
     nature of the dispute.

5.4  The costs of arbitration shall be borne by the losing Party, unless
     otherwise determined by the arbitration award.

                                      -25-

<PAGE>

5.5  When any dispute occurs and when any dispute is under arbitration, except
     for the matters under dispute, the Parties shall continue to fulfil their
     respective obligations and shall be entitled to exercise their rights under
     this Contract.

19.  GOVERNING LAW

     The execution, validity, interpretation and performance of this Contract
     and the resolution of any of the dispute thereunder shall be governed by
     the PRC law but, in the event that there is no applicable PRC law governing
     a particular matter relating to this Contract, generally accepted standards
     and principles of international law and general international commercial
     practices shall be applied.

20.  MISCELLANEOUS PROVISIONS

5.1  The failure to exercise or delay in exercising a right or remedy under this
     Contract shall not constitute a waiver of the right or remedy or a waiver
     of any other rights or remedies and no single or partial exercise of any
     right or remedy under this Contract shall prevent any further exercise of
     such a right or remedy or the exercise of any other right or remedy.

5.2  This Contract shall become effective when it is approved by the Approval
     Authority.

5.3  This Contract is written and executed in Chinese.

5.4  The invalidity of any provision of this Contract shall not affect the
     validity of any other provision of this Contract.

5.5  Any notice or other communication provided in this Contract shall be
     delivered personally or sent by fax as follows:

     (a)  if to Party A, to:

          Address:    No. 2222, West Tian Wei Road, Baoding, Hebei, China

          Fax number: 0312--3230382

          Attention:  Zhang Jicheng

     (b)  if to Party B, to:

          Address:    No.3055, Middle Fu Xing Road, Baoding, Hebei, China

          Fax number: 0312--3151881

          Attention:  Liu Conghui

     or to any other address, fax number or person as either of the Parties may
     specify by notice in writing to the other.

5.6  In the absence of evidence of earlier receipt, any notice or other
     communication shall be

                                      -26-

<PAGE>

     deemed to have been duly given:

     (a)  if delivered personally, when delivered to the address referred to in
          Section 20.5;

     (b)  if sent by fax, when a confirmation report of transmission is recorded
          by the sender's facsimile machine;

     (c)  if sent by air mail, ten (10) business days after posting it.

5.7  This Contract constitutes the entire agreement between the Parties relating
     to the subject matters of this Contract and supersedes all previous
     agreements.

5.8  If there is any conflict or inconsistency between the provisions of this
     Contract and the Articles of Association, this Contract shall prevail.

5.9  No variation to this Contract shall be valid unless it is in writing and
     signed by both Parties or their representatives and approved by the
     Approval Authority.

5.10 Except as expressly provided in this Contract, the rights and remedies
     contained in this Contract are cumulative and not exclusive of any rights
     or remedies provided by law.

5.11 Nothing in this Contract shall be construed as creating a partnership
     between the Parties or constituting either Party as the agent of the other
     for any purpose whatsoever and neither of the Parties shall have the
     authority or power to bind the other or to contract in the name of or
     create a liability against the other in any way or for any purpose.

5.12 This Contract shall be executed in four (4) originals.

                                      -27-

<PAGE>

IN WITNESS WHEREOF each of the parties hereto has caused this Contract to be
executed by its duly authorized representative on the date first set forth
above.

BAODING TIANWEI BAOBIAN ELECRTIC CO., LTD

/s/ Mingjin Yang
-------------------------------------------
Name: Mingjin Yang
Title: General Manager
Nationality: Chinese

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

/s/ Liansheng Miao
-------------------------------------------
Name: Liansheng Miao
Title: Chairman and Chief Executive Officer
Nationality: Chinese

                                      -28-

<PAGE>

             SUPPLEMENTAL CONTRACT TO THE JOINT VENTURE CONTRACT OF

              BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD.

This Contract is signed on October 10, 2006 in Baoding, Hebei, People's Republic
of China

BY AND BETWEEN

(1)  BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD. ("PARTY A"), a company limited
     by shares duly established and validly existing under the laws of the
     People's Republic of China (the "PRC") and having its legal address at No.
     28, Jing Xiu Street, Baoding, Hebei, and its mailing address at No. 2222,
     West Tian Wei Road, Baoding, Hebei; Tel: 0312-3308511; Fax: 0312-3230382;
     and

(2)  YINGLI GREEN ENERGY HOLDING COMPANY LIMITED ("PARTY B"), a legal person
     duly established and validly existing under the laws of the Cayman Islands
     and having its legal address at Century Yard, Cricket Square, Hutchins
     Drive, PO Box 2681 GT, George Town Cayman, British West Indies, and its
     mailing address at No. 3055, Middle Fuxing Road, National High-tech Zone,
     Baoding, Hebei, PRC.

(Party A and Party B are hereinafter collectively referred to as the "PARTIES"
and individually, a "PARTY".)

WHEREAS, as required by its expansion of business capacity, Baoding Tianwei
Yingli New Energy Resources Co., Ltd. proposes to increase its registered
capital. In accordance with the Law of the People's Republic of China on
Sino-Foreign Equity Joint Venture Enterprises and other relevant PRC laws and
regulations, adhering to the principles of equality and mutual benefit and
through friendly consultations, the Parties hereby amend the Joint Venture
Contract (the "JV CONTRACT") signed by the Parties on August 25, 2006 to reflect
the change of the registered capital.

Unless otherwise defined or specified herein, the terms used in this Contract
shall have the same meanings as ascribed to them under the JV Contract.

I.   Section 5 of the JV Contract is amended as follows:

The original Section 5 was:

5.1  Total Investment

     The amount of the total investment of the JV Company is three hundred
     million Renminbi (RMB300,000,000).

5.2  REGISTERED CAPITAL

     The amount of the registered capital of the JV Company is one hundred
     million Renminbi (RMB100,000,000).

5.3  CONTRIBUTIONS TO REGISTERED CAPITAL

<PAGE>

     The registered capital of the JV Company has been fully paid up. Of the
     total amount of the registered capital, the subscribed amount and
     percentage (the "CONTRIBUTION PERCENTAGE") of capital contribution of each
     Party are as follows:

     (c)  Party A subscribed for forty-nine million Renminbi (RMB49,000,000),
          corresponding to 49% of the equity interest in the JV Company.

     (d)  Party B subscribed for fifty-one million Renminbi (RMB51,000,000) in
          equivalent U.S. Dollars, corresponding to 51% of the equity interest
          in the JV Company.

     As agreed upon by both Parties, if Party B fails to complete its initial
     pubic offering and list its shares on a Qualified Stock Exchange, the
     Parties shall re-negotiate the percentages of equity interest they hold in
     the JV Company.

NOW IT IS AMENDED AS FOLLOWS:

5.4  TOTAL INVESTMENT

     The amount of the total investment of the JV Company is six hundred million
     Renminbi (RMB600,000,000).

5.5  REGISTERED CAPITAL

     The amount of the registered capital of the JV Company is two hundred and
     thirty million nine hundred and forty thousand Renminbi (RMB230,940,000).

5.6  CONTRIBUTIONS TO REGISTERED CAPITAL

     The registered capital of the JV Company has been fully paid up. Of the
     total amount of the registered capital, the subscribed amount and
     percentage (the "CONTRIBUTION PERCENTAGE") of capital contribution of each
     Party are as follows:

     (e)  Party A subscribed for forty-nine million Renminbi (RMB49,000,000),
          corresponding to 46.02% of the equity interest in the JV Company.

     (f)  Party B subscribed for one hundred and eighty-one million nine hundred
          and forty thousand Renminbi (RMB181,940,000) in equivalent U.S.
          Dollars, corresponding to 53.98% of the equity interest in the JV
          Company.

     As agreed upon by both Parties, if Party B fails to complete its initial
     pubic offering and list its shares on a Qualified Stock Exchange, the
     Parties shall re-negotiate the percentages of equity interest they hold in
     the JV Company.

II.  The following provision is added to Section 6 of the JV Contract:

6.1.4 Notwithstanding the above provisions, the Parties agree that neither Party
     shall transfer all or any part of the equity interest held by such Party in
     the registered capital of the JV Company to any third party that is engaged
     in a competing business with the JV Company.

III. This Contract shall become effective after it is signed by authorized
     representatives of both

                                      -2-

<PAGE>

     Parties and approved by the Approval Authority.

IV.  This Contract shall be executed in four (4) originals.

                    [Space below is intentionally left blank]

                                      -3-

<PAGE>

IN WITNESS WHEREOF each of the parties hereto has caused this Contract to be
executed by its duly authorized representative on the date first set forth
above.

BAODING TIANWEI BAOBIAN ELECRTIC CO., LTD

/s/ Qiang Ding
-------------------------------------------
Name: Qiang Ding
Title: Chairman
Nationality: Chinese

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

/s/ Liansheng Miao
-------------------------------------------
Name: Liansheng Miao
Title: Chairman and Chief Executive Officer
Nationality: Chinese

                                      -4-

<PAGE>

           SUPPLEMENTAL CONTRACT NO.2 TO THE JOINT VENTURE CONTRACT OF

              BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD.

This Contract is signed on November 13, 2006 in Baoding, Hebei, People's
Republic of China

BY AND BETWEEN

(1)  BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD. ("PARTY A"), a company limited
     by shares duly established and validly existing under the laws of the
     People's Republic of China (the "PRC") and having its legal address at No.
     28, Jing Xiu Street, Baoding, Hebei, and its mailing address at No. 2222,
     West Tian Wei Road, Baoding, Hebei; Tel: 0312-3308511; Fax: 0312-3230382;
     and

(2)  YINGLI GREEN ENERGY HOLDING COMPANY LIMITED ("PARTY B"), a legal person
     duly established and validly existing under the laws of the Cayman Islands
     and having its legal address at Century Yard, Cricket Square, Hutchins
     Drive, PO Box 2681 GT, George Town Cayman, British West Indies, and its
     mailing address at No. 3055, Middle Fuxing Road, National High-tech Zone,
     Baoding, Hebei, PRC.

(Party A and Party B are hereinafter collectively referred to as the "PARTIES"
and individually, a "PARTY".)

WHEREAS, as required by its expansion of business capacity, Baoding Tianwei
Yingli New Energy Resources Co., Ltd. proposes to increase its registered
capital. In accordance with the Law of the People's Republic of China on
Sino-Foreign Equity Joint Venture Enterprises and other relevant PRC laws and
regulations, adhering to the principles of equality and mutual benefit and
through friendly consultations, the Parties hereby amend the Joint Venture
Contract and the Supplemental Contract to the Joint Venture Contract
(collectively, the "JV CONTRACT") signed by the Parties on August 25, 2006 and
October 10, 2006, respectively, to reflect the change of the registered capital.

WHEREAS, through further consultation, the Parties agree to terminate the
Supplemental Contract No. 2 to the Joint Venture Contract signed by the Parties
on October 25, 2006 and sign this Supplemental Contract No. 2 to the Joint
Venture Contract.

Unless otherwise defined or specified herein, the terms used in this Contract
shall have the same meanings as ascribed to them under the JV Contract.

I.   Section 5 of the JV Contract is hereby amended as follows:

5.1  Total Investment

     The amount of the total investment of the JV Company is one billion three
     hundred and fifty million Renminbi (RMB1,350,000,000).

5.2  REGISTERED CAPITAL

     The amount of the registered capital of the JV Company is seven hundred and
     fifteen million seven hundred and eighty thousand Renminbi
     (RMB715,780,000).

<PAGE>

5.3  CONTRIBUTIONS TO REGISTERED CAPITAL

     Of the total amount of the registered capital, the subscribed amount and
     percentage (the "CONTRIBUTION PERCENTAGE") of capital contribution of each
     Party are as follows:

     (g)  Party A subscribes for forty-nine million Renminbi (RMB49,000,000),
          corresponding to 37.87% of the equity interest in the JV Company.

     (h)  Party B subscribes for six hundred and sixty-six million seven hundred
          and eighty thousand Renminbi (RMB666,780,000) in equivalent U.S.
          Dollars, corresponding to 62.13% of the equity interest in the JV
          Company.

     The Parties have contributed two hundred and thirty million nine hundred
     and forty thousand Renminbi (RMB230,940,000) to the registered capital and
     the remaining registered capital of four hundred and eighty-four million
     eight hundred and forty thousand Renminbi (RMB484,840,000) shall be
     contributed by Party B. Party B shall make full contribution to the above
     registered capital that it is required to actually contribute to within
     thirty (30) days after the approval of this Supplemental Contract by the
     Approval Authority.

     As agreed upon by both Parties, if Party B fails to complete its initial
     pubic offering and list its shares on a Qualified Stock Exchange, the
     Parties shall re-negotiate the percentages of equity interest they hold in
     the JV Company.

II.  This Contract shall replace the Supplemental Contract No.2 signed by the
     Parties on October 25, 2006.

V.   This Contract shall become effective after it is signed by authorized
     representatives of both Parties and approved by the Approval Authority.

VI.  This Contract shall be executed in four (4) originals.

                    [Space below is intentionally left blank]

-2-

<PAGE>

IN WITNESS WHEREOF each of the parties hereto has caused this Contract to be
executed by its duly authorised representative on November 13, 2006.

BAODING TIANWEI BAOBIAN ELECRTIC CO., LTD

/s/ Qiang Ding
-------------------------------------------
Name: Qiang Ding
Title: Chairman
Nationality: Chinese

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

/s/ Liansheng Miao
-------------------------------------------
Name: Liansheng Miao
Title: Chairman and Chief Executive Officer
Nationality: Chinese

-3-

<PAGE>

          SUPPLEMENTAL CONTRACT NO. 3 TO THE JOINT VENTURE CONTRACT OF

              BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD.

This Contract is signed on December 18, 2006 in Baoding, Hebei, People's
Republic of China

BY AND BETWEEN

(1)  BAODING TIANWEI BAOBIAN ELECTRIC CO., LTD. ("PARTY A"), a company limited
     by shares duly established and validly existing under the laws of the
     People's Republic of China (the "PRC"), with its correspondence address at
     No. 28, Jing Xiu Street, Baoding, Hebei, and its mailing address at No.
     2222, West Tian Wei Road, Baoding, Hebei; Tel: 0312-3308511; Fax:
     0312-3230382.

(2)  YINGLI GREEN ENERGY HOLDING COMPANY LIMITED ("PARTY B"), a legal person
     duly established and validly existing under the laws of the Cayman Islands
     and having its legal address at Century Yard, Cricket Square, Hutchins
     Drive, PO Box 2681 GT, George Town Cayman, British West Indies, with its
     correspondence address at No. 3055, Middle Fuxing Road, National High-tech
     Zone, Baoding, Hebei, PRC.

(Party A and Party B are hereinafter collectively referred to as the "PARTIES"
and individually, a "PARTY".)

WHEREAS, as required by the expansion of its business capacity, Baoding Tianwei
Yingli New Energy Resources Co., Ltd. (the "JV COMPANY") proposes to increase
its registered capital;

WHEREAS, Party B will enter into a Term Loan Agreement ("LOAN AGREEMENT") with
the JV Company pursuant to which Party B will extend a loan to the JV Company at
the amount of USD seventy eight million four hundred thousand (US$78,400,000)
and with a term of eighteen months;

In accordance with the Law of the People's Republic of China on Sino-Foreign
Equity Joint Venture Enterprises and other relevant PRC laws and regulations,
adhering to the principles of equality and mutual benefit and through friendly
consultations, the Parties hereby amend the Joint Venture Contract, the
Supplemental Contract to the Joint Venture Contract, and the Supplemental
Contract No.2 to the Joint Venture Contract (collectively, the "JV CONTRACT")
signed by the Parties on August 25, 2006, October 10, 2006, and November 13,
2006, respectively, to reflect the change of the registered capital.

<PAGE>

Unless otherwise defined or specified herein, the terms used in this Contract
shall have the same meanings as ascribed to them under the JV Contract.

I.   Section 5 of the JV Contract is hereby amended as follows:

5.1  TOTAL INVESTMENT

     The amount of the total investment of the JV Company is four billion
     seventy-five million eight hundred thousand Renminbi (RMB4,075,800,000).

5.2  REGISTERED CAPITAL

     The amount of the registered capital of the JV Company is one billion six
     hundred and twenty four million three hundred and eighty thousand Renminbi
     (RMB1,624,380,000).

5.3  CONTRIBUTIONS TO REGISTERED CAPITAL

     Of the total amount of the registered capital, the subscribed amount and
     percentage (the "CONTRIBUTION PERCENTAGE") of capital contribution of each
     Party are as follows:

     (i)  Party A subscribes for forty-nine million Renminbi (RMB49,000,000),
          corresponding to 29.89% of the equity interest in the JV Company.

     (j)  Party B subscribes for one billion five hundred and seventy-five
          million three hundred and eighty thousand Renminbi (RMB1,575,380,000)
          in equivalent U.S. Dollars, corresponding to 70.11% of the equity
          interest in the JV Company.

     The Parties have contributed seven hundred and fifteen million seven
     hundred and eighty thousand Renminbi (RMB715,780,000) to the registered
     capital and the remaining registered capital of nine hundred and eight
     million six hundred thousand Renminbi (RMB908,600,000) shall be contributed
     by Party B.

     Both Parties agree that Party B shall contribute to the JV Company nine
     hundred and eight million six hundred thousand Renminbi in equivalent US
     dollars (the "CAPITAL CONTRIBUTION") within thirty (30) days after the
     approval of this Contract by the Approval Authority. Both Parties further
     agree that, after the approval is obtained from the foreign exchange
     administrative authority, all of the loan principal and its accrued
     interests (if any) provided by Party B for the JV Company under the Loan
     Agreement shall be converted in equivalent amount into the registered
     capital of the

-2-

<PAGE>

     JV Company contributed by Party B, and shall be deemed as part of Party B's
     Capital Contribution.

     As agreed upon by both Parties, if Party B fails to complete its initial
     pubic offering and list its shares on a Qualified Stock Exchange, the
     Parties shall re-negotiate the percentages of equity interest they hold in
     the JV Company.

II.  Section 8.1.1 of the JV Contract is hereby amended as follows:

8.1.1 The Board of Director shall consist of nine (9) directors, of whom three
     (3) shall be appointed by Party A and six (6) shall be appointed by Party
     B, the Parties shall notify the Board promptly if any of their appointed
     directors are being dismissed or changed.

III. All other articles and sections of the JV Contract shall remain unchanged.

IV.  This Contract shall be executed in four (4) originals, and shall be after
     they are signed by authorized representatives of both Parties and approved
     by the Approval Authority.

                    [SPACE BELOW IS INTENTIONALLY LEFT BLANK]

-3-

<PAGE>

IN WITNESS WHEREOF each of the parties hereto has caused this Contract to be
executed by its duly authorised representative on December 18, 2006.

BAODING TIANWEI BAOBIAN ELECRTIC CO., LTD

/s/ Qiang Ding
-------------------------------------------
Name: Qiang Ding
Title: Chairman
Nationality: Chinese

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED

/s/ Liansheng Miao
-------------------------------------------
Name: Liansheng Miao
Title: Chairman and Chief Executive Officer
Nationality: Chinese

-4-<PAGE>

                                                                    EXHIBIT 10.4

                                 SALES CONTRACT

                                                  Contract No.: YL-Sunline 06/07
                                                         Date: November.28, 2006

     The Seller: Baoding Tianwei Yingli New Energy Resources Co., Ltd

                 No.11, Huaxian Road, Baoding City, China
                 Tel: +86-312-8929801
                 Fax: +86-312-3151881

     The Buyer:  Sunline AG

                 Hans-Vogel-Stasse 22, D-90765 Fuerth, Germany
                 Tel: +49-911-79101914
                 Fax: +49-911-79101917

The undersigned Seller and Buyer agreed to close the following transactions
according to the terms and conditions stipulated below:

1. Description of Goods:

<TABLE>
<CAPTION>
   Commodity and Specification       Total Quantity     Unit Price & Terms         Amount
   ---------------------------     ------------------   ------------------   ------------------
<S>                                <C>                  <C>                  <C>
Crystalline Silicon Solar Panels       30 MW            FOB Xingang, China   USD 111,000,000.00
165WP, 170WP, 175WP, 180WP
Cable and Connector                                        USD 3.70/Wp
Demension: 1310mmX990mm
                                   ------------------
Total Amount:                      USD 111,000,000.00
                                   ==================
</TABLE>

Delivery Schedule:

<TABLE>
<CAPTION>
      TIME        QUANTITY
      ----        --------
<S>               <C>
January, 2007        2Mwp
February, 2007       1Mwp
March, 2007          2Mwp
April, 2007          3Mwp
May, 2007            3Mwp
June, 2007           4Mwp
July, 2007           5Mwp
August, 2007         5Mwp
September, 2007      5Mwp
TOTAL               30MWP
</TABLE>

2. Payment

For the payment terms of this sales contract, it should be subject to clause
5.(2).

3. PORT OF LOADING : XINGANG, China

4. DESTINATION: Port of destination, Europe

<PAGE>

5. GENERAL TERMS:

(1) The Seller agrees to supply and the Buyer agrees to purchase the contracted
volume of 30Mwp in 2007.

(2) Based on the contract, the parities should sign individual supply contract
for each project. The delivery schedule and payment term should be specified in
each individual contract.

(3) The conversion efficiency indicated in the contract or in the attached data
sheet of module means typical efficiency after lamination with Power tolerance
of +/-5%, for which no claims will be asked for.

(4) Buyers are to assume full responsibilities for any consequences arising
from; a) late submission of specifications or any other details necessary for
the execution of this Sales confirmation; b) late payment

(5) The Seller shall not be held liable for failure or delay in delivery of the
entire lot or a portion of the goods under this Sales Confirmation in
consequence of any Force Majeure incidents.

(6) In case of quality discrepancy, claim should be filed by the Buyer within 30
days after the arrival of the goods at port of destination. While for quantity
discrepancy, claim should be filed by the Buyer within 15 days after the arrival
of the goods at port of destination. It is understood that the Seller shall not
be liable for any discrepancy of the goods shipped due to causes for which the
Insurance Company, Shipping Company, other transportation organizations and /or
Post Office are liable.

(7) The Seller warrants its Photovoltaic modules (" PV-modules") to be free from
defects in materials and workmanship under normal application, installation, use
and service conditions. If the PV-modules fail to conform to this warranty, then
for a period ending twenty-four months from date of sale to the original
end-customer, The seller at its option, either repair or replacement or refund ,
or refund the purchase price as paid by the Customer (" purchase price ").
Baoding Tianwei YingLi guarantee output power of PV module is more than 90% of
the minimum Peak Power within 10 years and more than 80% in 25 years, if can't
reach the warranty data, Baoding Tianwei YingLi will replace such loss in power
either by replacing the defective PV modules or by refunding the Purchase Price
(details is shown in the warranty term).

(8) All disputes arising from the execution of or in connection with this
contract, shall be settled through friendly negotiation. In case no settlement
can be reached through negotiation, the case shall then be be finally settled
under the Rules of Arbitration of the International Chamber of Commerce by one
or more arbitrators appointed in accordance with the said Rules. The arbitration
should be final and binding upon both parties.

6. This Sales Confirmation is made in two original copies, one copy to be held
by each Party in witness thereof.

7. This contract will come to effective after receiving the confirmation of the
Board of Directors of Sunline AG.

The seller: /s/ Zhiheng Zhao            The buyer: /s/ W. Driud
            -------------------------              -----------------------------
Baoding Tianwei Yingli New Energy       Sunline AG
Resources Co., Ltd

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