Document:

Exhibit 4.2

 

ARTICLES OF ASSOCIATION

OF

GRIFOLS, S.A.

 

TITLE  I

 

CORPORATE NAME AND PURPOSE, REGISTERED OFFICE AND DURATION

 

Article 1.- Corporate name.- The company is named GRIFOLS, S.A. (the “Company”) and it is a public limited company (sociedad anónima) of Spanish nationality and corporate nature.

 

The Company shall be governed by its Corporate Governance System and, as to matters not contemplated or provided for herein, by the legal provisions regarding public limited companies and any other legal provisions applicable thereto.

 

The Company’s Corporate Governance System shall consist of the Articles of Association, the Regulation of the General Shareholders’ Meeting, the Regulation of the Board of Directors and the remaining Reports, Regulations and Internal Corporate Governance Regulations, passed by the competent bodies of the Company.

 

Article 2.- The corporate purpose of the Company is to provide administration, management and supervision services for companies and businesses, as well as investments in moveable and real estate assets.

 

Article 3.- Registered office.-  The Company has its registered office in Barcelona (08022), calle Jesús y María, number 6. The Board of Directors may resolve to relocate the registered office within the municipal area of Barcelona and to create branches, offices or agencies anywhere in Spain or abroad.

 

Article 4.- The Company has been established for an unlimited period of time, commencing its operations on the date of formalization of the notarial deed of incorporation.

 

Article 5.- The fiscal year will begin on the first day of January and end on December 31st of every year; with the exception of the year ending on December 31st, 1997, which began on August 1st, 1997.

 

TITLE II

 

SHARE CAPITAL AND SHARES

 

Article 6.- Share Capital.-

 

1.                                     Shares. The share capital of the Company is 119,603,705 euros, represented by 343,777,454 shares, fully subscribed and paid-up, pertaining to two separate classes:

 

1

 

1.1.                           Class “A” comprises 213,064,899 shares with a nominal value of 0.50 euros each, all of which belong to the same class and series, and being the ordinary shares of the Company (the “Class A Shares”); and

 

1.2.                           Class “B” comprises 130,712,555 shares with a nominal value of 0.10 euros each, all of which belong to the same class and series and are non-voting shares of the Company with the preferential rights set forth in Article 6 Bis of these Articles of Association (the “Class B Shares” and, together with the Class A Shares, the “shares”).

 

2.                                     Form of Representation. The shares are represented by means of book entries and are governed by the Securities Market Act (Ley del Mercado de Valores) and such other provisions as may be applicable. The book entries registry shall be managed by the company Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A. (Iberclear) and its participating entities.

 

Article 6 Bis.- Terms and conditions of the Class B Shares.-

 

1.                                     General.-

 

Each Class B Share shall be treated in all respects, in spite of having a lower nominal value, as identical to one Class A Share, and Class B Shares shall not be subject to discriminatory treatment regarding Class A Shares, although, as an exception to the foregoing, the Class B Shares (i) are not entitled to voting rights; and (ii) they have the right to preferred dividend, preference liquidation share and the remaining rights set forth herein.

 

The right of each Class B Share to the dividends and other distributions other than the Preferred Dividend and the preferential subscription right (derecho de suscripción preferente) and the free allotment right (derecho de asignación gratuita de acciones) of each Class B Share, are the ones set forth in sections 3.1 and 6.1 of this Article 6 Bis and are equal to those of a Class A Share, in spite of the fact that the nominal value of a Class B Share is lower than that of a Class A Share, pursuant to the provisions of Articles 98 to 103 and 498 to 499 of the Companies Act (Ley de Sociedades de Capital).

 

2.                                     Preferred Dividends.-

 

2.1.                           Calculation. Each Class B Share entitles its holder to receive a minimum annual preferred dividend out of the distributable profits for each year at the end of which it is still in issue (the “Preferred Dividend” and, each fiscal year in respect of which the Preferred Dividend is calculated, a “Calculation Period”) equal to 0.01 euros per Class B Share.

 

2.2.                           Preference. The Company shall pay the Preferred Dividend on the Class B Shares for a Calculation Period before any dividend out of distributable profits obtained by the Company during such Calculation Period is paid on the Class A Shares.

 

2

 

2.3.                           Accrual. Payment. Non-cumulative nature.

 

(A)                     The Preferred Dividend corresponding to all Class B Shares that are issued at the end of a Calculation Period shall be paid by the Company to the holders of Class B Shares within the nine months following the end of such Calculation Period, in the aggregate amount that such Preferred Dividend does not exceed the amount of distributable profits obtained by the Company during such Calculation Period.

 

(B)                     If during a Calculation Period the Company has not obtained sufficient distributable profits to pay in full, out of the distributable profits obtained by the Company during such Calculation Period, the Preferred Dividend on all the Class B Shares that have been issued for such Calculation Period, the part of the aggregate amount of such Preferred Dividend for the Class B Shares that exceeds the distributable profits obtained by the Company during such Calculation Period shall not be paid nor accumulated as a dividend payable in the future.

 

2.4.                           Voting rights in case of non-payment of the Preferred Dividend. The lack of total or partial payment of the Preferred Dividend during a Calculation Period due to the Company not having obtained sufficient distributable profits to pay in full the Preferred Dividend for such Calculation Period, shall not entail for the Class B Shares the recovery of any voting rights.

 

3.                                     Other Dividends.-

 

3.1.                           Each Class B Share entitles its holder to receive, in addition to the Preferred Dividend, the same dividends and other distributions (regardless of whether such dividends or distributions are satisfied in cash, in securities of the Company or any of its subsidiaries, or any other securities, assets o rights) as one Class A Share and, consequently, each Class B Share shall be treated as one Class A Share regarding any dividends and other distributions satisfied to the holders of Class A Shares, including what is related to the timing of the declaration and payment of any such dividends or distributions.

 

4.                                     Redemption rights.-

 

4.1                              Redemption event. Each Class B Share entitles its holder to obtain its redemption as set forth in this section 4 in the event that (each offer that meets the following requirements, a “Redemption Event”) a tender acquisition offer over all or part of the shares in the Company is made and settled (in whole or in part), except if holders of Class B Shares have been entitled to participate in such offer and to their shares acquired in such offer equally and on the same terms as holders of Class A Shares (including, without limitation, for the same consideration).

 

4.2                              Maximum percentage of Class B Shares to be redeemed in a Redemption Event. Notwithstanding the foregoing, the Class B Shares redeemed as a result of a specific Redemption Event will not be allowed to represent, as regards the total Class B Shares in circulation at the time the tender acquisition offer that gives rise to the Redemption Event is made, a higher percentage that the sum of the Class A Shares (i) to which the offer giving rise to this Redemption Event is addressed, (ii) held by the offerors of that

 

3

 

offer; and (iii) held by the persons acting together with the offerors or by the persons that have reached some kind of an agreement regarding the offer related to all Class A Shares in circulation at the time the tender acquisition offer that gives rise to this Redemption Event is made.

 

In the event that as a result of the application of the limit referred to above not all Class B Shares regarding which the redemption right of this Redemption Event has been exercised may be redeemed, the Class B Shares to be redeemed from each holder of Class B Shares shall be reduced in proportion to the number of Class B Shares regarding which such holder has exercised the redemption right so that the above referred limit is not exceeded.

 

4.3                              Redemption process. In case a Redemption Event takes place,

 

(A)                     Notice: The Company shall, for informative purposes only and within 10 days of the date on which a Redemption Event takes place, publish in the Official Gazette of the Commercial Registry, the Spanish Stock Exchange Gazettes and in at least two of the newspapers with broadest circulation in Barcelona, a notice informing the holders of Class B Shares of the occurrence of a Redemption Event and of the process for the exercise of the redemption right in connection with such Redemption Event.

 

(B)                     Exercise by holders: Each holder of Class B Shares shall be entitled to exercise its redemption right during two months as from the first date of settlement of the offer causing the Redemption Event by means of notification to the Company. The Company shall ensure that the notification of the exercise of the redemption right may be carried out by means of the arrangements provided the company Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A. (Iberclear).

 

(C)                     Price: The redemption price to be paid by the Company for each Class B Share for which the redemption right has been exercised shall be the equivalent to the sum of (i) the amount in euros of the highest consideration paid in the offer causing the Redemption Event and (ii) the interests on the amount referred to in (i), as from the date the offer causing the Redemption Event is first settled and until the date of full payment of the redemption price, at a rate equal to one-year Euribor plus 300 basis points.

 

For the purposes of the previous paragraph, the amount in euros corresponding to any non-cash consideration paid in the offer causing the Redemption Event shall be the market value of such non-cash consideration as at the date the offer causing the Redemption Event is first settled. The computation of such market value shall be supported by at least two independent experts from auditing firms of international repute designated by the Company.

 

(D)                     Formalization of the Redemption. The Company shall, within 40 days as from the end of the period for the notification of the exercise of the redemption rights following a Redemption Event, carry out all the necessary actions in order to (a) pay the redemption price for the Class B Shares regarding which the redemption

 

4

 

right has been exercised and to implement the capital reduction required for the redemption; and (b) to reflect the amendment of Article 6 of these Articles of Association arising from the redemption. In this connection, the directors of the Company are hereby authorized and obligated to adopt all such actions, including (a) carrying out and completing the capital reduction required for the redemption; (b) grant and registration with the Commercial Registry of the relevant public deeds in which the amendments of Article 6 of these Articles of Association deriving from the redemption of Class B Shares are reflected; (c) the formalization of the amendment of the book entries with the book entry registry; (d) the filing of the relevant applications and requests with any other persons, including the company Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A. (Iberclear), the Spanish Stock Exchanges, and the Spanish Securities Exchange Commission and the Commercial Registry.

 

4.4                              Effect on Dividends. After a Redemption Event takes place and until the redemption price for the Class B Shares in respect of which the redemption right has been exercised has been paid in full, the Company shall not be able to satisfy o pay any dividends nor any other distributions to its shareholders (regardless of whether such dividends or distributions are satisfied in cash, in securities of the Company or any of its subsidiaries, or any other securities, assets o rights).

 

5.                                     Preferential liquidation rights.-

 

5.1.                           Each Class B Share entitles its holder to receive, upon the winding-up and liquidation of the Company, an amount (the “Liquidation Preference Share”) equal to the sum of (i) the nominal value of such Class B Share, and (ii) the share premium paid for the issuance of such Class B Share.

 

5.2.                           The Company shall pay the Liquidation Preference to the Class B Shares before any amount can be paid to holders of Class A Shares on account of liquidation.

 

5.3.                           Each Class B Shares entitles its holder to receive, in addition to the Liquidation Preference, the same amount on account of liquidation as the one to be paid to a Class A Share.

 

6.                                     Other rights.-

 

6.1.                           Subscription rights. Each Class B Share entitles its holder to the same rights (including the preferential subscription right (derecho de suscripción preferente), and the free allotment right (derecho de asignación gratuita)) as one Class A Share in connection with any issuance, granting or sale of (i) any shares in the Company, (ii) any rights and other securities exercisable for or exchangeable or convertible into shares in the Company, or (iii) any options, warrants or other instruments giving the right to the holder thereof to purchase, convert, subscribe or otherwise receive any securities of the Company.

 

As exception to the foregoing,

 

5

 

(A)                     the preferential subscription right and the free allotment right of the Class B Shares shall be only cover Class B Shares, and the preferential subscription right and the free allotment right of the Class A Shares shall be only cover Class A Shares in every capital increase which meets the following three requirements (i) that it entails the issuance of Class A Shares and Class B Shares in the same proportion that Class A Shares and Class B Shares represent over the share capital of the Company at the time the resolution regarding capital increase is passed; (ii) that it recognizes preferential subscription rights or free allotment rights, as applicable, to Class B Shares over the Class B Shares to be issued in that capital increase in the same terms as that which recognize preferential subscription rights or free allotment rights, as applicable, to Class A Shares over the Class A Shares to be issued in the capital increase; and (iii) that no other shares or securities are issued at the same; and

 

(B)                     likewise, the preferential subscription right and the free allotment right of the Class B Shares shall be only cover instruments that grant their owners with right to purchase, convert, subscribe or otherwise receive in any other form Class B Shares, and the preferential subscription right and the free allotment right of a Class A Shares shall be only cover instruments that grant their owners with right to purchase, convert, subscribe or otherwise receive in any other form Class A Shares in every issuance which meets the following three requirements (i) that it entail the issuance of instruments that grant their owners with right to purchase, convert, subscribe or otherwise receive in any other form Class A Shares and instruments that grant their owners with right to purchase, convert, subscribe or otherwise receive in any other form Class B Shares in the same proportion as Class A Shares and Class B Shares represent over the share capital of the Company at the time the resolution on the capital increase is passed; (ii) that it recognizes preferential subscription rights or free allotment rights, as applicable, to the Class B Shares over the instruments that grant their owners with right to purchase, convert, subscribe or otherwise receive Class B Shares to be issued in such issuance in the same terms as in those which recognize to the Class A Shares a preferential subscription rights or free allotment rights, as applicable, over the instruments granting their owner the right to purchase, convert, subscribe or otherwise receive Class A Shares to be issued in such issuance; and (iii) that no other shares or securities are issued at the same.

 

6.2.                           Separate vote at the General Shareholders’ Meeting regarding Extraordinary Matters. Without disregarding the provisions set forth in Article 103 of the Companies Act (Ley de Sociedades de Capital) and on an additional basis, but also in order to protect the rights of Class B Shares, the resolutions of the Company on the following matters (the “Extraordinary Matters”) will require, in addition to their approval pursuant to the provisions of Article 17 of these Articles of Association, the approval of the majority of the outstanding Class B Shares:

 

(A)                     Any resolution (i) authorizing the Company or any of its subsidiaries to repurchase or acquire any Class A Shares of the Company, except for pro-rata repurchases made available to the holders of Class B Shares under the same terms and at the same price as that offered to holders of Class A Shares or (ii) approving the redemption of any shares in the Company and any share capital

 

6

 

reductions (through repurchases, cancellation of shares or any other means) other than (a) those redemptions which are mandatory by law and (b) those redemptions which affect equally Class A Shares and Class B Shares and those in which each Class B is treated equally and is provided with the same terms as a Class A Share;

 

(B)                     Any resolution approving the issuance, granting or delivery (or authorising the Board of Directors of the Company to issue, grant or deliver) (i) any shares in the Company, (ii) any rights or other securities which give the right to acquire shares of the Company o that are exchangeable or convertible into shares in the Company or (iii) any options, warrants or other instruments giving the right to the holder to purchase, convert, subscribe or otherwise receive in any other form any securities in the Company, except for the foregoing events (i), (ii) and (iii), if (a) each Class B Share is treated equally as a Class A Share regarding the issuance, granting or delivery and, therefore, it has, in the event they exist, the same preferential rights (of subscription of preferential allotment or of any other kind)  in the relevant issuance, granting or delivery as a Class A Share, or (b) if the issuance is performed in accordance with the provisions of the foregoing section 6.1;

 

(C)                     Any resolution approving unconditionally or not (i) a transaction subject to Law 3/2009 (including, without limitation, a merger, split-off, cross-border redomiciliation or global assignment of assets and liabilities), except if in such transaction each Class B Share is treated, in all respects, in an equal manner as one Class A Share; or (ii) the dissolution or winding-up of the Company, except where the resolution is mandatory by law;

 

(D)                     Any resolution approving the delisting of any shares of the Company from any stock exchange or secondary market; and

 

(E)                      In general, any resolution and any amendment of the Articles of Association of the Company which directly or indirectly damages or adversely affects the rights, preferences or privileges of the Class B Shares (including any resolution that damages or adversely affects the Class B Shares in comparison with the Class A Shares or that benefits or positively affects the Class A Shares in comparison to the Class B Shares, or that affects the provisions in these Articles of Association regarding the Class B Shares).

 

The General Shareholders’ Meeting has the power to decide on all matters vested on it by Law or by these Articles of Association and, in particular, without limitation to the foregoing, it shall be the only corporate body or office entitled to decide on the matters considered “Extraordinary Matters” according to these Articles of Association.

 

6.3.                           Other rights. The Class B Shares shall have all remaining rights vested on them in Articles 100, 102 and 103 of the Companies Act (Ley de Sociedades de Capital) and, safe for the provisions set forth herein and in articles 100, 102 and 103 of the Companies Act (Ley de Sociedades de Capital), each Class B Share entitles its holder to the same rights as one Class A Share (including the right to attend all general

 

7

 

shareholders’ meetings of the Company, the information right on the Company and the right to challenge resolutions of the Company).

 

Article 7.-  The shares are indivisible with regard to the Company and, therefore, only a single owner for each share will be recognized by the Company. Co-owners of shares must designate a single person to represent them before the Company and shall be jointly and severally liable to the Company for all obligations arising from their status as shareholders.

 

TITLE III

 

SHAREHOLDERS’ RIGHTS AND OBLIGATIONS

 

Article 8.-  The acquisition of one or more shares entails adherence and acceptance of these Articles of Association, and the status or condition of shareholder implies, without exception, not only the acceptance of these Articles of Association but also the adherence to the resolutions passed by the General Shareholders’ Meeting and to the decisions of the representative bodies of the Company, and the compliance of all such other obligations resulting from the deed of incorporation or the enforcement or interpretation of these Articles of Association, with the exception, nevertheless, of the rights and legal actions granted to the shareholders by the Law.

 

Article 9.-  Each Company’s share confers upon its rightful holder the status of shareholder and vests such holder with the rights and obligations established by Law and by the Company’s Corporate Governance System,  regardless of the class and series of the shares that may be created in each one of the classes.

 

Article 9 Bis.- Corporate web page.- The Company will keep a corporate web page to enable the exercise by the shareholders of their information right, and to divulge the relevant information required by the securities market legislation, which shall include all documents and information foreseen by the Law and the Corporate Governance System of the Company and all other information deemed appropriate to be made available to the shareholders and investors through this system.

 

Article 10.- Transfer of Shares.- Company shares shall be freely transferable by any means admitted by Law.

 

TITLE IV

 

ADMINISTRATION AND MANAGEMENT OF THE COMPANY

 

Article 11.-  The administration and management of the Company corresponds to:

 

a)                 The General Shareholders’ Meeting.

b)                 The Board of Directors.

 

Notwithstanding this, other offices may be appointed pursuant to these Articles of Association or as required by Law.

 

8

 

CHAPTER ONE:  ON THE GENERAL SHAREHOLDERS’ MEETING

 

Article 12.-  The General Shareholders’ Meeting validly summoned represents all shareholders and its resolutions, passed in accordance with these Articles of Association, the Regulations of the General Shareholders’ Meeting and such other legal provisions in force, shall be binding on all shareholders, including dissenting shareholders and those who have not participated in the voting, preserving, nevertheless, those rights which are granted to shareholders by Law.

 

Article 13.-  The General Shareholders’ Meetings may be either ordinary or extraordinary. The ordinary General Shareholders’ Meeting must be held within the first six months of each fiscal year in order to approve, if applicable, the corporate management, the annual accounts for the previous fiscal year and the allocation of the results. Any other shareholders’ meeting will be deemed Extraordinary.

 

Extraordinary Meetings shall be held whenever the Board deems it convenient on its own initiative or upon the request of one or several shareholders holding at least 5% of the share capital, who must state in their request the matters to be addressed at the Meeting.

 

In such case, the Meeting shall be called to be held within the two months following the date on which a notarial demand requesting the Board to call the Meeting was served.

 

Article 14.- Calling of the General Shareholders’ Meeting.-

 

1.                                     Both the Ordinary and the Extraordinary General Shareholders’ Meetings must be called according to the legal requirements in force at least one month in advance from the date set for the meeting, except in those cases where the Law might have foreseen other terms, by means of a notice published in, at least, the following media:

 

a)                  The Official Gazette of the Commercial Registry or one of the major newspapers in circulation in Spain.

 

b)                  The web page of the Spanish Securities Exchange Commission.

 

c)                   The Company’s web page.

 

Notwithstanding the foregoing, when the Company offers the shareholders the genuine possibility of voting by electronic means made available to all of them, the extraordinary General Meetings may be called with a minimum prior notice of fifteen (15) days. This reduction in the term to call the meeting will require an express resolution by the Ordinary General Meeting passed by, at least, two thirds (2/3) of the subscribed share capital with voting rights; the validity of this resolution must not exceed the date on which the next meeting is to be held.

 

The notice published on the Company’s corporate web page will be kept available uninterruptedly at least until the General Shareholders’ meeting takes place.

 

2.                                     The notice must state, in addition to the statements required by article 517 of the Companies Act, the name of the Company, the date and time of the meeting, the agenda, which shall include the matters to be addressed thereat, and the position held

 

9

 

by the person or persons issuing the notice; the notice may also set forth the date on which the meeting shall be held, as the case may be, upon second call.

 

3.                                     Shareholders representing at least five per cent (5%) of the share capital may request the publication of a supplement to the call of the Ordinary General Shareholders’ Meeting including one or more items in the agenda of the call and to file justified resolution proposals regarding matters already included or that should be included in the agenda, as long as these new proposals are accompanied by a justification or, if applicable, by a justified resolution proposal. This right must be exercised by means of a certified notification, which must be received at the Company’s registered office within five (5) days of the publication of the call to the meeting.

 

The supplement to the call to the meeting must be published at least fifteen (15) days prior to the date set for the meeting.

 

Article 15.- Calling and quorums for holding of a General Shareholders’ Meeting.- Both the Ordinary and the Extraordinary General Shareholders’ meetings shall be validly summoned on first call when the shareholders who are present or represented hold, at least, 25% of the subscribed share capital with voting rights. Upon second call, the meeting shall be validly held regardless of the amount of the share capital present at the meeting.

 

Notwithstanding the provisions of the preceding paragraph, the meeting shall be deemed duly called and will be validly summoned to discuss any matters, whenever all the subscribed share capital with voting rights is present or represented and all those attending unanimously agree to hold the meeting.

 

Article 16.- Right to attend, proxy granting and representation at the General Shareholders’ Meeting.-

 

1.                                     All Company shareholders shall be entitled to attend the general meeting as long as their shares appear registered under their name in the accounting registry at least five (5) days in advance from the date on which the meeting is to be held;

 

2.                                     Notwithstanding the foregoing, all shareholders with right to attend the meeting, according to the provisions set forth herein, may do so by means of a proxy, even when such proxy is not a shareholder.

 

Proxy representation must be granted on a special basis for each meeting, either in writing or by distance communication systems, as long as the identity of the represented shareholder, the proxy-holder and the contents of the proxy itself are duly guaranteed.

 

In the event the representation is granted to a legal entity, such entity shall appoint an individual as its proxy representative, as established by the Law.

 

10

 

 

Article 17.- System of majorities at the General Shareholders’ Meeting.-

 

The resolutions shall be passed by majority of votes among the shareholders present or represented by proxy (one half plus one of the votes), except in those cases for which the Law or the Articles of Association provide a higher quorum.

 

Article 17.bis.- Casting of votes through distance voting systems.-

 

1                                        All shareholders who have right to attend the Meeting may cast their vote regarding the proposals included in the agenda through the following systems of communication:

 

(a)                       By postal correspondence, through the sending of the attendance, proxy representation and distance vote card, duly signed and with indication of the sense of their vote; or

 

(b)                       By electronic correspondence or any other distance voting systems in accordance with the instructions contained on the corporate web page of the Company, provided that the safety of the electronic communications is duly guaranteed and the electronic document through which the voting right is exercised includes a recognized electronic signature, according to the provisions of the Electronic Signature Act (Ley de Firma Electrónica) or that, without fulfilling the requirements for the electronic signature, such electronic signature is deemed to be valid by the Board of Directors for having the adequate guarantees as to the authenticity and identification of the shareholder who is exercising his voting right.

 

In order to be deemed valid, distance votes must be received by the Company at least five (5) days before the date set for the meeting.

 

2                                        The notice of the General Shareholders’ Meeting shall state the deadlines, means and procedures for casting the vote through distance voting systems.

 

3                                        The shareholders who cast their vote through distance voting systems pursuant to this article shall be deemed as present to the effects of convening the meeting. In consequence, the delegations issued previously shall be deemed revoked and those conferred afterwards shall be deemed as not effected.

 

4                                        Notwithstanding the foregoing, a vote casted by distance voting systems shall be rendered void by the personal attendance of the shareholder casting the vote to the Meeting.

 

Article 18.-  The General Shareholders’ Meeting shall be held in any municipal area belonging to the province of Barcelona. The Meetings shall be chaired by the Chairperson of the Board of Directors or by the board member  validly substituting him and, failing that, by the attendee appointed by the shareholders. The Chairperson shall be assisted by a Secretary, who shall be in turn secretary to the Board. In the absence of the Secretary, the Vice secretary who is validly substituting him shall act as such and, failing that, any shareholder attending the Meeting appointed by the shareholders for this purpose. The Chairperson shall lead the debate and resolve any queries arising at the meeting. Before going over the items included in the agenda, an Attendance List shall be prepared, stating for each attendee the capacity in which he is attending and the number of shares that he owns or represents. The deliberations

 

11

 

and resolutions passed at the meeting shall be recorded in the minutes, which will be incorporated to the corresponding Book, and shall be approved in the manner provided by law. The certificates of such minutes shall be issued by the Secretary of the Board of Directors and will have the countersignature of the Chairperson.

 

Article 19.-  The resolutions validly passed by the General Shareholders’ Meetings shall be legally binding as from their approval and mandatory for all shareholders, including those absent and dissenting, without the need for the Minutes to be approved at a later meeting, without prejudice to the challenge and, as the case may be, withdrawal rights legally vested on the shareholders.

 

CHAPTER TWO: ON CORPORATE MANAGEMENT

 

Article 20.- Structure and remuneration for the Board of Directors.-  The management and legal representation of the Company will correspond to the Board of Directors, which shall be composed of a minimum of three and a maximum of fifteen directors.

 

Directors shall be appointed and dismissed by the General Shareholders’ Meeting and will serve in their positions for five years, albeit the possibility of their indefinite re-election for the same periods of time. The position of director shall be remunerated. For such purpose, the General Shareholders’ Meeting shall set for each year or for a certain period of time a fixed amount of remuneration for the Board of Directors, which will be distributed among its members, by virtue of a board resolution, based on their dedication to the Company.

 

Notwithstanding the foregoing, the directors will have the right to be refunded on the expenses incurred upon while holding their office.

 

Article 21.- Regulations of the Board of Directors.- The Board of Directors shall pass the regulations governing its operation and internal regime, as well as those governing the different delegated committees that may be established within it. The Board of Directors shall inform the General Shareholders’ Meeting on the content of such regulations and on any amendment thereto immediately after a resolution to pass or amend such regulations has been passed.

 

Article 21.bis.- Corporate Governance Annual Report.- The Board of Directors shall annually pass a corporate governance report, whose content shall comply with the laws and regulations in force.

 

Article 22.- Calling of the Board of Directors, quorum and majorities.-  The Board of Directors shall be called to a meeting by the Chairperson or the or by the person validly taking his place, by any mean that allows its receipt with at least ten (10) days prior to the date on which the meeting is to be held, except for urgent matters that justify a shorter term. The notice of the meeting of the Board shall state the place, date and time as well as the matters to be discussed thereat.

 

Notwithstanding the foregoing, the Board of Directors shall be considered validly held without having been called, if all the directors attending or represented by proxy unanimously accept the holding of the meeting, as well as the agenda to be discussed thereat.

 

12

 

The directors constituting at least one third (1/3) of the members of the Board of Directors may call a meeting, for it to be held at the locality of the registered office, indicating the proposed agenda if, prior request to the Chairperson, he fails to call the meeting without a reasonable cause within one month from said request.

 

The attendance of one half plus one of its members, being present or represented by proxy, is required for validly holding meetings of the Board of Directors.

 

Resolutions shall be passed by absolute majority of the members of the Board present at the meeting. In the event of a tie, the Chairperson shall have the casting vote.

 

Article 22.bis.- Meetings held through distance communication systems.- The Board of Directors, as well as the Committees established within it according to the provisions of the Articles of Association, may hold meetings by videoconference, conference calls or by any other distance communication systems as long as said communications take place in real time and, therefore, in one sole act, and both the identity of the participating or voting individual and the security of the electronic communications, are properly guaranteed. Additionally, any communication or information provided by the Board of Directors or any of the Committees therein shall be in writing, being the electronic means and other distance communication systems admissible. For such purposes, email addresses supplied by the Directors to the Secretary to the Board of Directors shall be deemed valid.

 

Article 23.-  The Board of Directors is vested with all the authorities that can be legally delegated by the General Shareholders’ Meeting in accordance with the provisions of the Companies Act (Ley de Sociedades de Capital).

 

Article 24.- Delegation of authorities.- The Board of Directors can permanently delegate all or part of its authorities to one or more managing directors or to an executive committee, insofar as they can be delegated by law and in accordance with the Articles of Association.

 

Article 24.bis.- Delegated Committees.- The Board of Directors shall necessarily create the following committees, which shall be governed by these Articles of Association and the internal Regulations of the Board of Directors:

 

(a)                       An Audit Committee; and

 

(b)                       An Appointments and Remuneration Committee.

 

Article 24.ter.- Audit Committee.-

 

1.                                     The Audit Committee shall be composed of a minimum of three (3) directors and a maximum of five (5), to be appointed by the Board of Directors. The Audit Committee shall in any case be composed of a majority of external directors with an adequate representation of independent directors.

 

2.                                     The Chairperson of the Committee, whose position shall be held by an external director, will be appointed by the Board of Directors. The Chairperson shall be replaced every four (4) years, being eligible for re-election only after one (1) year has elapsed since his dismissal. The Board of Directors will appoint the Secretary of the

 

13

 

Audit Committee, who may be (a) one of the members of the Audit Committee (being, in such case, Secretary member of the Audit Committee), (b) any other member of the Board of Directors of the Company who is not a member of the Audit Committee (being, in such case, Secretary non member of the Audit Committee), or (c) the Secretary or a Vice secretary of the Board of Directors of the Company (being, in such case, Secretary non member of the Audit Committee). The Secretary shall record in the minutes the resolutions passed at each Meeting of the Committee and report to the full Board of Directors through its Chairperson. The Audit Committee shall be deemed validly held when it is attended by half plus one of its members, either present or represented by proxy. Resolutions shall be passed by absolute majority of the members of the Board present at the meeting. In the event of a tie, the Chairperson shall have the casting vote.

 

3.                                     Notwithstanding the provisions of the Law, of these Articles of Association or other commitments assigned to it by the Board of Directors, the Audit Committee shall have the following basic responsibilities:

 

(a)                       To inform the General Shareholders’ Meeting on the issues raised therein  concerning any matters of its competence.

 

(b)                       To propose to the Board of Directors, for its submission to the shareholders, the appointment of the Company’s external auditors, the terms and conditions of employment of the auditors, the scope of their professional duties and, where applicable, their removal or non-renewal;

 

(c)                        To monitor the internal audit services and to inform about the selection process, appointment, renewal and removal of its director;

 

(d)                       To know the financial information and the internal control system process of the Company; to review the annual accounts and the periodic financial statements that should be submitted to the securities regulatory authorities and to make sure that the appropriate accounting standards are followed; to inform the Board of Directors on any changes in the accounting standards and on the balance sheet and off balance sheet risks;

 

(e)                        To receive information from the auditors regarding matters that could impair their independence and any other matters related to the development of the auditing of the financial statements, as well as to receive any such other communications foreseen in the legislation governing the auditing of financial statements and in technical auditing regulations.

 

(f)                         To assess the transactions carried out by the Company with significant shareholders, as set forth in the Regulations of the Board of Directors;

 

(g)                        To review the compliance with the Internal Code of Conduct on Stock Exchange Matters, the present Regulations, the rules of conduct listed in the “Code of Ethics of Grifols” and, in general, with any other corporate regulations, as well as to make the necessary proposals to improve such regulations;

 

14

 

4.                                     The Audit Committee shall meet as regularly as required to ensure the correct development of its duties.

 

5.                                     Any member of the executive board or the staff of Company whose presence is required by the Chairperson is obliged to attend the meetings of the Committee and to provide the assistance and information requested. The Chairperson may also request the attendance of the auditors to the meetings;

 

6.                                     The Audit Committee may seek the advice of external consultants in order to ensure a better performance of its functions.

 

TITLE V

 

BALANCE SHEET, ANNUAL ACCOUNTS AND ALLOCATION OF RESULTS

 

Article 25.- Annual Accounts.-

 

1.                                     Within the maximum term of three (3) months following the end of the fiscal year, the Board of Directors must prepare, in compliance with the requirements set by law, the annual accounts, as well as the management report and the proposed allocation of the result corresponding to such fiscal year.

 

2.                                     The annual accounts and the management report shall be reviewed by the Company’s auditors and shall be submitted to the shareholders’ consideration and approval, if applicable, at least one month prior to the date of the General Shareholders’ Meeting.

 

Article 26.-  The Extraordinary General Shareholders’ Meeting called for such purpose may pass and implement reorganization, merger and split-up transactions, or any other structural modifications of its competence, following at all times the requirements and formalities set up by the Act on Companies’ Structural Modifications (Ley de Modificaciones Estructurales de las Sociedades Mercantiles) and these Articles of Association.

 

Article 27.-  The dissolution of the Company shall require a prior resolution of the General Shareholders’ Meeting and its dissolution can be based on any of the grounds set forth in Article 363 of the Companies Act (Ley de Sociedades de Capital).

 

Article 28.-  Once the dissolution has been passed, the liquidation shall be carried out according to the provisions of the Companies Act (Ley de Sociedades de Capital). Provided the lack of appointment of the liquidators by the General Shareholders’ Meeting that approved the dissolution of the Company, those who held the office of directors at the moment of dissolution of the Company will be turned into liquidators.

 

Article 29.-  Upon completion of the liquidation, the liquidators or the liquidation committee shall prepare a final balance sheet, a complete report on such liquidation and a project on the splitting of the remaining assets between the shareholders.

 

15

 

GENERAL PROVISIONS

 

Article 30.-  1. The shareholders are subject to the jurisdiction of the Court corresponding to the Company’s registered office.

 

2.  All corporate contentious matters that might arise between the Company and its directors or its shareholders, between the former and latter, or between the shareholders between them, shall be resolved by arbitration of the Arbitration Court of Barcelona (Tribunal Arbitral de Barcelona), of the Catalan Association for Arbitration (Asociación Catalana para el Arbitraje), which will be in charge of appointing one (1) arbitrator and of the administration of the arbitration in accordance with its Regulations. All such matters over which the parties have no free disposition are excepted.

 

3.  Any person subject to a legal incompatibility, especially those established in Law 5/2206, dated 10 April, shall not be entitled to hold offices in the Company.

 

*          *          *

 

THIS DOCUMENT CONSTITUTES A TRANSLATION INTO ENGLISH OF THE OFFICIAL SPANISH VERSION OF THE ARTICLES OF ASSOCIATION OF THE COMPANY.

IN CASE OF DISCREPANCIES, THE OFFICIAL SPANISH VERSION SHALL PREVAIL.

 

16Exhibit 4.22

 

English Translation

 

Contract No. (1300383612012584097)

 

CHINA DEVELOPMENT BANK

 

FOREIGN EXCHANGE LOAN CONTRACT

 

	
Type of loan:
    	
Short-term Foreign Exchange Working   Capital Loan (Revolving)
    
	
 
    	
 
    
	
Project Name:
    	
One-year Working Capital Loan for   Yingli Green Energy International Trading Co., Ltd
    
	
 
    	
 
    
	
Borrower:
    	
Yingli Green Energy International   Trading Co., Ltd
    
	
 
    	
 
    
	
Lender:
    	
China Development Bank Co., Ltd
    

 

Date of signing:

 

1

 

Table of Contents

 

	
Article I Definitions
    	
5
    
	
 
    	
 
    
	
Article II Loan limit
    	
7
    
	
 
    	
 
    
	
Article III Usage mode for loan limit
    	
7
    
	
 
    	
 
    
	
Article IV Intended use of loan
    	
8
    
	
 
    	
 
    
	
Article V Valid period for withdrawal
    	
8
    
	
 
    	
 
    
	
Article VI Term of loan
    	
8
    
	
 
    	
 
    
	
Article VII Loan interest rate and interest 
    	
9
    
	
 
    	
 
    
	
Article VIII Overdue interest 
    	
9
    
	
 
    	
 
    
	
Article IX Interest for misappropriation of   loan
    	
10
    
	
 
    	
 
    
	
Article X Preconditions for withdrawal
    	
10
    
	
 
    	
 
    
	
Article XI Procedure for withdrawal
    	
12
    
	
 
    	
 
    
	
Article XII Fund payment 
    	
12
    
	
 
    	
 
    
	
Article XIII Interest payment and principal   repayment
    	
14
    
	
 
    	
 
    
	
Article XIV Repayment sequence
    	
15
    
	
 
    	
 
    
	
Article XV Prepayment
    	
16
    
	
 
    	
 
    
	
Article XVI Settlement bank and settlement
    	
17
    
	
 
    	
 
    
	
Article XVII Representation and warranty of   borrower 
    	
17
    
	
 
    	
 
    
	
Article XVIII Rights and obligations of   borrower
    	
19
    
	
 
    	
 
    
	
Article XIX Rights of lender
    	
23
    
	
 
    	
 
    
	
Article XX Account management
    	
23
    
	
 
    	
 
    
	
Article XXI Guarantee 
    	
24
    
	
 
    	
 
    
	
Article XXII Borrower default event and   liability for breach 
    	
24
    

 

2

 

	
Article XXIII Tax and expense
    	
26
    
	
 
    	
 
    
	
Article XXIV Front-end expense
    	
26
    
	
 
    	
 
    
	
Article XXV Contract change and termination
    	
26
    
	
 
    	
 
    
	
Article XXVI Contract integrity and   separability of contract terms
    	
27
    
	
 
    	
 
    
	
Article XXVII Confidentiality
    	
27
    
	
 
    	
 
    
	
Article XXVII Notice
    	
28
    
	
 
    	
 
    
	
Article XXIX Governing law and dispute   settlement
    	
28
    
	
 
    	
 
    
	
Article XXX Miscellaneous
    	
28
    
	
 
    	
 
    
	
Article XXXI Entry into force of contract
    	
29
    
	
 
    	
 
    
	
Drawdown Application
    	
30
    

 

THIS CONTRACT is hereby entered into by and between the following parties in 

 

3

 

Shijiazhuang on       , 2012:

 

Borrower: Yingli Green Energy International Trading Co., Ltd

 

Address: Room 2008, Floor 20, Kai Tak Commercial Building, No.317-319, Des Voeux Road Central, Central, Hong Kong

 

Legal representative: Miao Liansheng

 

Operator: Liu Zitong

 

Telephone: 0312-8632683

 

Fax: 0312-8929800

 

Lender: China Development Bank Co., Ltd

 

Address: No.29, Fuchengmenwai Street, Xicheng District, Beijing

 

Legal representative: Chen Yuan

 

Postcode: 100037

 

Administering subsidiary bank: Hebei Branch, China Development Bank Co., Ltd

 

Address: Tower B, Yuyuan Plaza, No.9, Yuhua West Road, Qiaoxi District, Shijiazhuang City, Hebei Province

 

Person in charge of subsidiary bank: Zhang Linwu

 

Postcode: 050051

 

Operator: Zhang Jie

 

Telephone: 0311-85518780

 

Fax: 0311-85288205

 

The Borrower applies to the Lender for using short-term foreign exchange

 

4

 

working capital loan on revolving basis, and the Lend agrees to offer such loan. This Contract is hereby entered into by and between the Borrower and the Lender through consultation on the basis of equality, voluntariness, fairness and good faith in accordance with relevant national laws and regulations.

 

Article 1  Definitions

 

Unless otherwise specified herein, the following terms herein have the following meaning:

 

1.1                               Lender: China Development Bank Co., Ltd

 

1.2                               Borrower: Yingli Green Energy International Trading Co., Ltd

 

1.3                               Project: One-year Worki5ng Capital Loan for Yingli Green Energy International Trading Co., Ltd

 

1.4                               Loan limit: Maxium limit of loan balance which the Lender agrees to offer to the Borrower hereunder

 

1.5                               Loan balance: Total amount of all foreign exchange working capital loan which the Lender has actually offered to the Borrower hereunder but the Borrower has not yet repaid

 

1.6                               Overdue amount: Total amount of principal, interest and expense due and payable hereunder which the Borrower fails to repay beyond time limit

 

1.7                               Misappropriated loan: The loan not used for the intended purpose hereunder

 

1.8                               Valid period for withdrawal: Valid period during which the Borrower draws money within the limit of revolving foreign exchange loan hereunder

 

1.9                               Date of withdrawal: The date when loan fund is transferred into deposit account of the Borrower as agreed by the Borrower and the Lender hereunder or under loan note

 

1.10                        Date of principal repayment: The date when the Borrower shall repay loan principal as agreed hereunder or under loan note

 

1.11                        Date of interest payment: The date when the Borrower shall pay interest to the Lender as stipulated in Subparagraph Two, Article 7 herein

 

5

 

1.12                        Loan account: The account which the Borrower opens with administering subsidiary bank of the Lender and is used for recording matters including loan origination and repayment etc hereunder

 

1.13                        Deposit account: The account which the Borrower opens with settlement bank and is used for transferring loan into deposit hereunder, repaying loan principal and interest, expense hereunder, making settlement etc

 

1.14                        Capital recovery account: The account opened or designated by the Borrower in accordance with Article 21 herein and specially used for recovering operating capital of the Borrower

 

1.15                        Entrusted payment by the Lender: the Lender pays loan fund hereunder to counterparty of the Borrower through deposit account according to intended use of loan hereunder, the Borrower’s Withdrawal Application Form/payment notice and the bases for fund payment

 

1.16                        Self-payment by the Borrower: The Borrower pays loan fund hereunder from deposit account to counterparty of the Borrower according to intended use of loan hereunder after the Lender transfers loan fund to deposit account according to the Borrower’s Withdrawal Application Form and the bases for fund payment

 

1.17                        Administering subsidiary bank: Branch of the Borrower responsible for signing of this Contract, post-lending management etc according to authorization by the Lender

 

1.18                        Settlement bank: The bank responsible for providing settlement service to the Borrower according to relevant agreement and supervising use of loan fund hereunder according to requirements

 

1.19                        Business day: Working day when banks in Beijing, China, Hong Kong and (U.S New York) and (London, Britain) are open for business

 

1.20                        Guarantor: The Guarantor providing guarantee for the Borrower’s obligations hereunder

 

1.21                        Guarantee contract: Guarantee contract between the Guarantor and the Lender

 

1.22                        LIBOR: London Interbank Offered Rate published by British Bankers

 

6

 

Association, based on six-month U.S Dollar LIBOR quotation published at 11:00 am (London time) by Thomson Reuters in two business days prior to commencement of each interest period

 

1.23                        Related party: With respect to the Borrower, subordinate companies or controlling shareholder of the Borrower or other subordinate companies of controlling shareholder

 

1.24                        Liabilities: Any liabilities incurred by the Borrower from time to time as a result of borrowing, debenture, notes, loan stock, commercial bills, any acceptance credit or bill discounting credit from banks or other financial institutions, acquisition cost of major assets, funds raised according to any other transactions which give commercial effect of borrowing or debt financing, and provision of guarantee for the third party etc

 

1.25                        Loan note: The loan note which the Borrower fills in at each withdrawal according to the sample provided by the Lender

 

1.26                        Material adverse change: With respect to the Borrower and any guarantor, any changes occurring in business, operation, property or financial position of the Borrower and any guarantor or China’s political or economic situation, which result in or may result in, under reasonable circumstance, failure of the Borrower or any guarantor to pay major liabilities hereunder or under any guarantee contract, or affect the legality, validity, binding force or enforceability of major responsibilities of the Borrower or any guarantor hereunder or under any guarantee contract

 

Article II Loan Limit

 

Loan limit hereunder is 150 million USD (Say ONE HUNDRED AND FIFTY MILLION USD only).

 

Article III  Usage Mode of Loan Limit

 

The Borrower may withdraw loan limit for many times, make repayment on loan-by-loan basis, use loan limit on revolving basis according to this Contract.

 

7

 

Where the Borrower fails to withdraw money for six consecutive months starting from the date when this Contract comes into force, such loan limit will be automatically canceled.

 

Loan balance shall not exceed such loan limit at any time within valid period of this Contract.

 

Article IV  Intended Use of Loan

 

Loan hereunder shall be used for operation turnover of the Borrower in routine production, specifically purchase of raw materials for producing photovoltaic modules. The Borrower shall not misappropriate loan fund hereunder, nor shall the Borrower use loan fund hereunder to make fixed asset investment, equity investment, venture investment or in the fields and for the purposes as expressed prohibited from production or operation by the State, nor shall the Borrower transfer loan fund hereunder to its related parties.

 

Where the Borrower misappropriates loan fund hereunder, interest penalty shall be calculated and paid according to provisions of this Contract.

 

Article V  Valid Period for Withdrawal

 

Valid period for withdrawal hereunder is twelve months (inclusive) starting from the date when this Contract comes into force.

 

Article VI  Term of Loan

 

Loan term for each withdrawal by the Borrower may be one month, three months, six months, twelve months from the date of actual withdrawal by the Borrower to the agreed date of principal repayment, based on records made in loan note. Date of repayment for each loan shall not exceed expiry date of this Contract, namely the date when one year following the date of first withdrawal expires.

 

8

 

Article VII  Loan Interest Rate and Interest

 

7.1                               Loan interest rate

 

Annual loan interest rate hereunder is (floating) interest rate, six-moth USD LIBOR + 520BP.

 

7.2                               Interest period and interest payment date

 

Each six months constitute one interest period except the first interest period and the last interest period. Interest period starts from each interest payment date and ends on the day before the next interest payment date. The first interest period starts from the date when the first loan is withdrawn and ends on the day before subsequent first interest payment date. The last interest period starts from the interest payment date before the date of repayment for principal of the loan which expires last and ends on the date of repayment for principal of such loan. Interest payment date hereunder is June 21 and December 21 each year, and accrued interest for each loan shall be fully paid on the date when such loan expires.

 

Where interest payment date coincides with legal festival and holiday or public holiday, such interest payment date shall be extended to the first business day following such legal festival and holiday or public holiday; however, if where the first business day following such legal festival and holiday or public holiday does not occur in the month of interest payment date hereunder or under loan note, such interest payment date shall occur on the business day immediately before such legal festival and holiday or public holiday.

 

7.3                               Interest calculation

 

Interest shall be based on loan balance, actual number of days and 360 days a year. Interest calculation formula: loan balance x loan interest rate x actual number of days of loan in the corresponding interest period ÷ 360.

 

Article VIII  Overdue Interest

 

8.1                               Where the Borrower fails to repay loan principal and expense due according to provisions of this Contract or loan note, the Lender will calculate and collect overdue interest from the Borrower; overdue interest rate is loan interest rate plus 1%.

 

8.2                               Calculation formula for overdue interest: overdue amount x overdue interest rate x

 

9

 

number of overdue days ÷ 360.

 

8.3                     Where the Borrower fails to repay overdue loan principal, interest and expense on the next interest payment date or principal repayment date, the Lender will calculate and collect compound interest from the Borrower on the basis of current overdue interest rate and interest period.

 

8.4                     Current overdue interest rate for all overdue amount shall float along with current loan interest rate.

 

Article IX  Interest for Misappropriation of Loan

 

9.1                     Where the Borrower fails to use the loan for the intended purpose specified hereunder, the Lender will calculate and collect interest for misappropriation of loan from the Borrower on the basis of default interest rate being loan interest rate plus 3%.

 

9.2                     Calculation formula for interest for misappropriation of loan: amount of misappropriated loan x default interest rate for misappropriated loan x number of days of misappropriation ÷ 360.

 

9.3                     Where the Borrower fails to repay the principal, interest of misappropriated loan on time on the next interest payment date or principal repayment date, the Lender will calculate and collect compound interest from the Borrower on the basis of current default interest rate for misappropriated loan and interest period.

 

9.4                     Current default interest rate for all misappropriated loan funds shall float along with current loan interest rate.

 

9.5                     Where one loan is concurrently overdue and misappropriated, higher default interest rate shall prevail.

 

Article X  Preconditions for Withdrawal

 

Preconditions for each withdrawal by the Borrower include all the following content:

 

10.1              The Lender has received the following documents or materials provided by the Borrower:

 

10

 

(a)   Copy of the latest legal person business licenses of the Borrower and the Guarantor which have passed annual check, duplicate copy of articles of association, audited financial statements in the last three accounting years, and financial statements of the last quarter;

 

(b)         Resolution of relevant power organ of the Borrower for approving the Borrower in signing and performing this Contract, and resolution of relevant power organ of the Guarantor for approving the Guarantor in signing and performing guarantee contract, and the Borrower has paid front-end expense to our bank and has signed account supervision agreement;

 

(c)          Specimen signature of legal representative of the Borrower for signing this Contract or authorization letter and specimen signature of authorized signatory, and specimen signature of legal representative of the Guarantor for signing guarantee contract or authorization letter and specimen signature of authorized signatory;

 

(d)         Copy or duplicate copy of approved and valid commercial contracts concerning this Contract;

 

(e)          Properly completed Withdrawal Application Form (See the Form in Annex 1) which is sent to the Lender by the Borrower according to provisions of this Contract and loan note completed for the Lender;

 

(f)           Other relevant documents which the Lender deems necessary (such as government approval document etc).

 

10.2   The Borrower has satisfied the following conditions:

 

(a)   Guarantee contract required hereunder has been signed and come into force;

 

(b)         This Contract continues being valid, and the Borrower does not violate provisions of this Contract, no material adverse change occurs and no matter adverse to the Lender occurs;

 

(c)          Guarantee contract continues being valid, and guarantee registration formalities have been completed according to laws and regulations, the Guarantor does not violate provisions of guarantee contract, no material 

 

11

 

adverse change occurs;

 

(d)         The Borrower has opened loan account, deposit account according to Article 20 herein, and has opened or designated capital recovery account;

 

(e)          Representations and warranties made by the Borrower in Article 17 herein are authentic and valid;

 

(f)           Other conditions

 

Article XI  Procedure for Withdrawal

 

The Borrower shall submit irrevocable Withdrawal Application Form to the Lender five business days before expected withdrawal date, and provide the Lender with the bases for fund payment and documents specified in Article 10 herein. The bases for fund payment provided by the Borrower shall include commercial contract, payment notice issued by counterparty, invoice, customs declaration form, internal approval document of the Borrower etc.

 

After receipt of Withdrawal Application Form, the bases for fund payment and documents specified in Article 10 herein as provided by the Borrower, the Lender examines them according to internal management procedure. Where such examination shows that the bases for fund payment are authentic and payment requirements are complete, the Lender shall complete fund payment formalities on the withdrawal date specified in Withdrawal Application Form according to Article 12 herein. Where such examination shows that payment is unauthentic and incomplete or any condition in Article 10 herein is not satisfied, the Lender may suspend or reject payment of loan fund.

 

Withdrawal Application Form once filed shall not be revoked without written consent of the Lender.

 

Article XII  Fund Payment

 

Fund payment hereunder is divided into entrusted payment by the Lender and self-payment by the Borrower.

 

12.1                Entrusted payment by the Lender

 

12

 

The Lender will pay loan fund hereunder on entrusted basis under any of the following circumstances:

 

(a)   Payment amount for single transaction exceeds 1% of loan limit hereunder;

 

(b)         Any circumstance involving the Borrower specified in Paragraph III of this Article occurs and the Lender deems necessary for making entrusted payment;

 

(c)          After examining Withdrawal Application Form/payment notice and relevant bases for fund payment, the Lender believes that the Lender shall make entrusted payment.

 

After receipt, examination and verification of the Borrower’s Withdrawal Application Form, the bases for fund payment and documents specified in Article 10 herein, the Lender shall transfer the amount which the Borrower applies for withdrawing to deposit account on the withdrawal date. The Borrower hereby irrevocably entrusts the Lender to pay loan fund within deposit account to bank account of the Borrower’s counterparty complying with intended use agreed hereunder on the payment date specified in Withdrawal Application Form.

 

The Borrower hereby confirms that the Lender makes payment only according to the aforesaid payment entrustment of the Borrower and assumes no liability for any loss (if any) incurred by the Borrower under commercial contract.

 

12.2                Self-payment by the Borrower

 

The Borrower may make self-payment except under the circumstances specified in Paragraph I of this Article. After receipt, examination and verification of the Borrower’s Withdrawal Application Form, the bases for fund payment and documents specified in Article 10 herein, the Lender shall transfer the amount, which the Borrower applies for withdrawing, from loan account of the Borrower to deposit account on the withdrawal date. The Borrower shall make self-payment by withdrawing money in the light of its capital needs or transferring loan fund.

 

The Borrower shall, (in the first ten days of each month) (determined through negotiation), report to the Lender self-payment of loan fund by the Borrower (in the 

 

13

 

previous month), and provide relevant bases for fund payment.

 

Notwithstanding the foregoing provisions of this Article, where the circumstance under which entrusted payment shall be made as specified in Paragraph I of this Article occurs when the Borrower uses loan fund in deposit account, the Borrower shall provide the Lender with another payment notice specifying the amount, date of entrusted payment, payee’s name, bank account number, commercial contract etc, in which case the Lender shall make such entrusted payment according to provisions of Paragraph I of this Article. Such payment notice shall be submitted to the administering subsidiary bank/ administering agency or settlement bank of the Lender (five) business days before proposed fund payment.

 

12.3                Changes in withdrawal conditions and payment mode

 

The Lender is entitleed to change withdrawal conditions hereunder, apply the circumstances under which entrusted payment and self-payment is made, suspend or stop lending, reduce or cancel loan limit etc under one of the following circumstances:

 

(a)   Credit standing of the Borrower decreases;

 

(b)              Profitability of the Borrower’s main business decreases;

 

(c)               Use of loan fund is abnormal etc;

 

(d)              Capital movement is abnormal in capital recovery account or operating revenue of the Borrower does not flow into capital recovery account;

 

(e)               The Borrower violates entrusted payment requirements specified in this Article or the Borrower violates provisions of this Contract by breaking up the whole into parts for circumventing entrusted payment by the Lender;

 

(f)                Other circumstances which the Lender deems reasonable.

 

The Lender shall send written notice to the Borrower in the case of exercising the rights specified in this Article. Such notice comes into force as from the date of sending.

 

12.4              The Borrower shall timely provide records and materials concerning use of loan fund according to the Lender’s requirements.

 

Article XIII  Interest Payment and Principal Repayment

 

13.1                Mode of principal repayment

 

14

 

The Borrower shall repay the loan on the basis of loan amount and the principal repayment date specified hereunder or under loan note.

 

Where principal repayment date coincides with legal festival and holiday or public holiday, such principal repayment date shall be extended to the next business day provided, however, that such principal repayment date shall occur on the previous business date if the next business day enters the next month.

 

13.2                        The Lender shall send Principal and Interest Repayment Notice to the Borrower ten business days before interest payment date and principal repayment date.

 

13.3                        The Borrower shall, three business days before interest payment date and principal repayment date, transfer repayment amount into its deposit account; otherwise, the expenditure caused by fund in transit shall be borne by the Borrower.

 

13.4                        Neither notification of the Borrower by the Lender nor the fact that content in Principal and Interest Repayment Notice is correct shall relieve the Borrower of being liable for fully repaying principal and interest.

 

13.5                        The Lender may actively debit the corresponding amount in deposit account of the Borrower on interest payment date and principal repayment date.

 

Article XIV  Repayment Sequence

 

If the amount of repayment made by the Borrower is less than total amount due hereunder or under loan note, such amount shall be arranged to make payment in the following sequence:

 

14.1                                  The expense, liquidated damages which are payable according to laws or provisions of this Contract;

 

14.2                                  Default interest, compound interest;

 

14.3                                  Payable loan interest;

 

14.4                                  Payable loan principal;

 

14.5                                  Other payable amount.

 

If the amount of repayment made by the Borrower is insufficient for repaying all

 

15

 

amounts in the same sequence, repayment shall be made in the sequence of occurrence of relevant amounts.

 

Article XV  Prepayment

 

If the Borrower needs to make repayment in advance, the Borrower shall, at least twenty business days before proposed repayment date, file written application to the Lender; loan amount which is repaid in advance shall be integral multiples of ten million USD, and minimum repayment amount shall be ten million USD. The Borrower shall not repay the loan hereunder in advance without written consent of the Lender. Where the Borrower makes repayment in advance without authorization, the Lender is entitled to reject such prepayment, and subject the Borrower to assume the liability for breach.

 

The Borrower shall, at the time of prepayment, concurrently pay off all payable and due amounts hereunder up to the date of prepayment.

 

The loan hereunder which is repaid by the Borrower in advance is still governed by loan interest rate for the originally agreed period, namely loan interest rate specified in loan note. Subject to the Borrower paying certain amount of compensation to the Lender, the Lender may approve prepayment by the Borrower. Calculation formula for such compensation is as follows:

 

Amount of compensation = amount of prepayment x number of days of prepayment x loan interest rate/360 x 20%

 

Where the Lender approves prepayment by the Borrower, the Borrower shall, five business days before the date of prepayment, remit the prepaid principal, the corresponding interest compensation and expense to the account designated by the Lender. The Borrower’s application for prepayment is irrevocable; application may be re-filed for withdrawing the prepaid amount.

 

16

 

Article XVI  Settlement Bank and Settlement

 

16.1                        The Lender designates Hong Kong Branch of China Development Bank as settlement bank; the Borrower shall open settlement account with settlement bank. Payment of fund in this account shall be supervised by the Lender and settlement bank.

 

16.2                        Settlement of loan fund for the Borrower, its foreign exchange settlement and sale shall be conducted through settlement bank; (the Borrower shall pay settlement expense according to Schedule of Rates of the Lender.) The aforesaid settlement of loan fund payment specifically covers (issuance and payment etc of the loan hereunder).

 

Article XVII  Representations and Warranties of the Borrower

 

The Borrower hereby makes the following representations and warranties to the Lender:

 

17.1                        The Borrower is legal person incorporated according to laws, is holding valid business license, owns its assets and operates its business according to laws, and is capable of operating as one going concern;

 

17.2                        The Borrower has completed all formalities for approval, authorization, license, permit etc necessary for signing and performing this Contract, and ensures that all approval documents are authentic and legal;

 

17.3                        The Borrower has completed internal authorization procedure necessary for signing and performing this Contract, and the Borrower’s signatory for signing this Contract is duly authorized representative of the Borrower, and this Contract is legally binding on the Borrower upon entry into force of this Contract;

 

17.4                        Neither signing of this Contract by the Borrower nor fulfillment of its obligations hereunder violates its any other agreements or its articles of association, nor such signing, fulfillment conflict with its any other agreements or its articles of association in terms of laws or (and) commercial interests;

 

17.5                        The Borrower enjoys good financial position, and is capable of paying off all 

 

17

 

due debts hereunder with the capital legally obtained by it;

 

17.6                        Financial statements provided by the Borrower are prepared in accordance with accounting systems promulgated by relevant department of the State and truly, accurately reflect financial position as at base date of such financial statements; and there is no indication that financial position of the Borrower has deteriorated since base date of such financial statements;

 

17.7                        The Borrower is currently not subject to any ongoing or pending or threatened lawsuits, actions, proceedings, arbitration or administrative procedure which may adversely affect the Borrower or its assets and income;

 

17.8                         The Borrower is not subject to any other liabilities to any person except the liabilities which have been disclosed in writing in advance and recognized by the Lender;

 

17.9                        The Borrower enjoys legal title of its assets which are free from any guarantee (except guarantee under guarantee contract);

 

17.10                 There is no transaction with unfair terms between the Borrower and its related parties;

 

17.11                 The Borrower does not violate its obligation for making tax payment;

 

17.12                 There is no insolvency, liquidation, dissolution of the Borrower, revocation of its business license or its bankruptcy or assets of the Borrower are not frozen, expropriated, detained or compulsorily executed according to laws or forcibly acquired by government department;

 

17.13                 All materials and data provided to the Lender by the Borrower are authentic, complete, accurate and valid, duplicate copies provided are consistent with original copies;

 

The aforesaid representations and warranties continue being valid within valid period of this Contract. The Borrower acknowledges that the Lender enters into this Contract on the basis of the aforesaid representations and warranties made by the Borrower.

 

18

 

Article XVIII  Rights and Obligations of the Borrower

 

18.1                        The Borrower is entitled to use loans according to provisions of this Contract and require the Lender to offer loans according to provisions of this Contract;

 

18.2                        The Borrower is entitled to make prepayment according to provisions of Article 15 herein;

 

18.3                        The Borrower shall engage in production and operation according to applicable laws, regulations and provisions within operation period, and shall timely complete all formalities according to relevant provisions of State Administration of Foreign Exchange;

 

18.4                         The Borrower shall repay loan principal and interest and pay relevant expense according to provisions of this Contract or loan note;

 

18.5                        The Borrower shall use loan fund for the intended purpose specified hereunder and shall not misappropriate it;

 

18.6                        The Borrower shall make loan fund payment according to provisions of this Contract;

 

18.7                        The Borrower shall timely provide records and materials concerning use of loan fund according to provisions of this Contract or the Lender’s requirements, and shall cooperate with the Lender in management of loan fund payment and relevant inspection;

 

18.8                        Where cumulative borrowing amount of the Borrower will exceed 30% of net asset specified in the most recent annual financial statement of the Borrower in the case of any borrowing, the Borrower shall obtain prior written consent of the Lender;

 

18.9                        The Borrower shall not provide any form of guarantee to the third party without prior written consent of the Lender;

 

18.10                 The Borrower shall ensure any major asset exceeding RMB 500 million yuan is not sold, leased, transferred, assigned or otherwise disposed of through single transaction or multiple transactions or series of transactions other than normal operation transactions; or where such disposals involve major asset above 20% of its total asset and 30% of its net asset, the Borrower shall obtain prior written consent of the Lender;

 

19

 

18.11                 Where the Borrower makes any single investment exceeding RMB 500 million yuan or makes investments with cumulative amount exceeding RMB 500 million yuan within one year, or there is any single investment change exceeding RMB 500 million yuan or are investment changes with cumulative amount exceeding RMB 700 million yuan within one year, the Borrower shall obtain prior written consent of the Lender with respect to its investment matters, amounts etc.

 

18.12                 Where the Borrower proposes to initiate merger and acquisition, amalgamation, separation, and be under contract operation or similar arrangement, the Borrower shall, 30 business days in advance, notify the Lender of plans and details about such merger and acquisition, amalgamation, separation, contract operation etc, and shall obtain prior written consent of the Lender. The aforesaid plans or arrangements shall not harm legitimate rights and interests of the Lender hereunder;

 

18.13                 The Borrower shall not enter into any agreements or documents sufficient to harm interests of the Lender, nor shall the Borrower engage in any matters sufficient to harm interests of the Lender;

 

18.14                 Where there are changes in credit standing, financial position and debt paying ability of the Borrower hereunder, or market situation is adverse to the Lender, or guarantee capability of the Guarantor decreases, the Borrower shall provide guarantee, supplement the existing guarantee within the time specified by the Lender, and the Guarantor and the Lender shall sign valid guarantee agreement according to laws;

 

18.15                 The Borrower shall, prior to March 31 each year, provide the Lender with full set of financial statements of the previous accounting year audited by accounting firm recognized by the Lender (including balance sheet, income statement, cash flow statement and audit report), and shall, within ten days at the beginning of each quarter, provide the Lender with full set of financial statements of the previous quarter; shall, prior to September 10 each year, provide the Lender with full set of financial statements of the first half year;

 

20

 

18.16         Where the Borrower changes enterprise name, domicile, registered capital, business scope, company type, or modifies articles of association, or major financial changes occur in the Borrower, the Borrower shall, 30 business days in advance, notify the Lender in writing, and file relevant materials with the Lender.

 

18.17         The Borrower shall cooperate with the Lender in credit rating of the Borrower, and provide relevant materials according to the Lender’s requirements;

 

18.18         The Borrower shall keep correct account records and account book concerning its operation, and shall, within any reasonable time, allow the Lender and/or professional advisor appointed by the Lender to check and inspect account records and account book of the Borrower provided, however, that such check and inspection shall not unreasonably affect normal operation of the Borrower;

 

18.19         The Borrower shall observe the following financial indicators before full repayment of loans hereunder.

 

(a)             Asset-liability ratio (asset-liability ratio = total liabilities/total net assets x 100%) shall not be higher than 80%;

 

(b)             Debt service coverage ratio (Debt service coverage ratio = current available capital for debt service/current amount of debt service x 100%) shall not be lower than 130%;

 

18.20         Where any default event occurs under any agreement entered into by the Borrower, the Borrower shall notify the Lender in writing within ten business days following such default event;

 

18.21         If there are any lawsuits, actions, proceedings, arbitration or administrative procedure involving the Borrower after this Contract is signed, the Borrower shall notify the Lender in writing within 30 business days following such event;

 

18.22         The Borrower shall maintain its existence, and operate its business in a legitimate and valid way, and observe all applicable laws, regulations,

 

21

 

authorization, agreements and obligations, and make all payable and due tax payments;

 

18.23         The Borrower shall timely obtain all approvals, authorizations, licenses, permits, consents, registrations and filing necessary for signing and performing this Contract and guarantee contract, and maintain their continuous validity;

 

18.24         Unless otherwise approved in writing by the Lender, the Borrower shall ensure that its registered capital is not reduced, and the Borrower shall not declare or pay any dividend to its shareholders or make income distribution in any other ways before all payable amounts are repaid hereunder;

 

18.25         Where equity structure of the Borrower proposes to be changed, the Borrower shall, 30 days before such proposed change, notify the Lender in writing, and obtain prior written consent of the Lender;

 

18.26         The Borrower shall not enter into any agreement which may cause material adverse effect on its financial position or other conditions;

 

18.27         The Borrower shall not enter into any contract or agreement which does not comply with fair trade rule with its related parties, nor shall the Borrower make to related parties any payment which does not comply with fair trade rule;

 

18.28         The Borrower shall open loan account, deposit account and capital recovery account according to provisions of Article 20 herein, and use such accounts according to provisions of this Contract, and accept supervision of such accounts by the Lender and actively cooperate with the Lender in supervising such accounts;

 

18.29         The Borrower shall, according to requirements specified by the Lender from time to time, provide the Lender with written report covering real financial position including accounts receivable, accounts payable and inventory etc which is satisfactory for the Lender;

 

18.30         The Lender shall not repay the loans offered by shareholders in any way before full repayment of all payable amounts hereunder;

 

22

 

18.31         The Borrower shall urge its controlling shareholder Yingli Energy (China) Co., Ltd to ensure that its shareholding ratio in the Lender is not less than 50% at any time.

 

Article XIX  Rights of the Lender

 

19.1                The Lender is entitled to recover loan principal, interest and collect relevant expense according to this Contract or loan note;

 

19.2                The Lender is entitled to be informed of, inspect and supervise use of loan by the Borrower, its plan execution, financial revenue and expenditure etc in production operation management;

 

19.3                The Lender is entitled to, within withdrawal period hereunder, conduct annual review about the Borrower’s credit so as to determine whether to continue offering loans to the Borrower; where conditions are satisfied, the Lender offers loans; where conditions are not satisfied, the Lender will cancel lending;

 

19.4                The Lender is entitled to recover loans in advance in the light of capital recovery by the Borrower.

 

Article XX  Account Management

 

20.1                The Borrower shall, prior to _MM,DD,YY, open loan account and deposit account with the administering subsidiary bank and settlement bank of the Lender respectively, which are used by the Lender to offer loans, make settlement and recover principal and interest.

 

The Borrower shall make settlement concerning all loans hereunder through settlement bank of the Lender.

 

20.2                Capital recovery account is determined in the following _1st  way:

 

(a)                                        The Borrower and the Lender agree that the Borrower designates its following account opened with Hong Kong Branch, China Development Bank as capital recovery account hereunder:

 

Account name:

Opening bank:

Account No.:

 

23

 

20.3                The Borrower agrees that the Lender may take the following supervision measures for loan account, deposit account and capital recovery account:

 

(b)                                 Require the Borrower to periodically (quarterly) provide the report on capital movement in capital recovery account, including but not limited to amount of current capital inflow, outflow, use of capital which flows out from such account etc (supplement specific content in capital movement report in the light of project situation);

 

(c)                                  Require the Borrower to provide information concerning abnormal capital movements;

 

Article XXI  Guarantee

 

This Contract is under the following guarantee mode:

 

21.1                                   The Guarantor Yingli Green Energy Holding Company Limited provides joint liability guarantee;

 

The Guarantor shall timely sign valid guarantee contract with the Lender, and maintain the validity and enforceability of guarantee under such guarantee contract.

 

Where the aforesaid guarantee is insufficient to effectively guarantee creditor’s rights of the Lender, the Lender is entitled to require the Borrower to timely provide other forms of guarantee.

 

Article XXII  Borrower Default Event and Liability for Breach

 

22.1                Where the Borrower violates Article 18 or Article 21 herein, or events specified in Article 18 (20) or (21) occur and the Lender believes that such events will adversely affect loan repayment ability of the Lender, or any representations or warranties made by the Borrower in Article 17 herein prove to be incorrect or misleading, or the following events occur, the Borrower is deemed to violate this Contract:

 

(a)                                 The Borrower fails to pay off any payable and due debts;

 

(b)                                 The Borrower is subject to any winding-up of business, dissolution,

 

24

 

liquidation, bankruptcy, reorganization, compromise, rectification or similar legal procedures;

 

(c)                                  Assets of the Borrower with total market value reaching or exceeding RMB 200 million yuan are sealed up, frozen, detained, executed, expropriated, confiscated or are subject to other similar measures, which in the opinion of the Lender, will have material adverse effect on the safety of loans;

 

(d)                                 Any major adverse change event occurs.

 

In the case of the aforesaid events, the Lender is entitled to take one or more of the following measures;

 

(a)                                 Stop offering loans;

 

(b)                                 Cancel loan limit which has not yet been withdrawn;

 

(c)                                  Declare acceleration of maturity of loans and concurrently require the Borrower to repay the outstanding principal and interest within time limit, and have the right to directly deduct repayment fund from any account opened with the Lender’s banking system by the Borrower until all debts hereunder are fully paid off (the Borrower has, at the time of signing this Contract, authorize the Lender to exercise the aforesaid right to directly deduct repayment fund);

 

(d)                                 Unilaterally terminate this Contract, and concurrently exercise the rights specified in Paragraphs 1 — 3 of this Article;

 

(e)                                  Realize security interest under guarantee document;

 

(f)                                   Take other measures as permitted by relevant national and local laws, regulations or agreed hereunder.

 

22.2                Where the Borrower commits any act of violating other provisions of this Contract, the Lender is entitled to require the Borrower to make corrections within time limit; where the Borrower fails to make corrections within time limit, the Lender is entitled to require the Borrower to pay liquidated damages amounting to 0.1% of loan limit; where such liquidated damages is insufficient to compensate for financial loss incurred to the Lender, the Lender is entitled to

 

25

 

require the Borrower to make compensation.

 

22.3                Where breach of the Borrower results in lawsuit, attorney fee and other expenses paid by the Lender for such lawsuit shall be borne by the Borrower.

 

Article XXIII  Tax and expense

 

23.1                The Borrower shall bear all taxes and surcharges relating to signing and performance of this Contract (except enterprise income tax of the Lender), including but not limited to stamp duty payable, taxes and surcharges levied on the Lender’s interest income as required by Chinese laws. If according to Chinese laws, the Borrower shall withhold or deduct any taxes and surcharges from any amount payable to the Lender, the Borrower shall pay additional amount to the Lender so as to make the Lender receive the amount available as if no such withholding or deduction occurs.

 

23.2                The Borrower shall bear all reasonable expenses and costs relating to negotiation, preparation, signing and modification of this Contract, including but not limited to attorney fee.

 

23.3                At the request of the Lender, the Borrower shall immediately reimburse the Lender for all reasonable expenses and costs incurred for the reason that the Lender exercises or asserts the rights hereunder or any loan document under any jurisdiction, including but not limited to attorney fee and legal cost.

 

Article XXIV Front-end expense

 

The Borrower Yingli Green Energy International Trading Co., Ltd shall pay to Hebei Branch of China Development Bank front-end expense 20BP relating to One-year Working Capital Loan for Yingli Green Energy International Trading Co., Ltd before the first loan is offered.

 

Article XXV  Contract Change and Termination

 

25.1                Unless otherwise specified herein, neither party is permitted to unilaterally change or terminate this Contract after this Contract comes into force; any

 

26

 

modification or change to this Contract is subject to consultation through the Borrower and the Lender and written agreement between the Borrower and the Lender;

 

25.2                The Lender may transfer, in whole or in part, the rights hereunder to the third party. the aforesaid transfer by the Lender shall be notified to the Borrower;

 

25.3                Where changes in national laws, regulations or policies result in all or part of this Contract no longer complying with national laws, regulations or policies, the Borrower and the Lender shall timely conduct consultation to modify relevant terms as soon as possible;

 

25.4                Where the Borrower or the Lender is prevented from performing this Contract by force majeure, the affected party shall timely notify the other party of such event and take effective measures to prevent further loss; the affected party shall, within ten days following occurrence of such event, provide the other party with details about such event and documentary evidence concerning occurrence and impact of such event issued by competent government department. The Borrower and the Lender shall timely hold consultation for taking countermeasures.

 

Article XXVI  Contract Integrity and Separability of Contract Terms

 

No supplement, modification or change to this Contract shall be made unless in writing. Written supplements, modifications or changes to this Contract shall form the integral part of this Contract.

 

Terms of this Contract are separable to the extent that invalidity, illegality or unenforceability of any term of this Contract shall not affect the validity of other terms of this Contract.

 

Article XXVII  Confidentiality

 

Neither party shall disclose this Contract to the third party without consent of the Borrower, the Lender.

 

Where either party is informed of business secrets of the other party as a result of 

 

27

 

exercising the rights hereunder, such party shall keep them confidential, and shall not disclose them to the third party without consent of the other party.

 

Article XXVII  Notice

 

28.1                Any notice given hereunder shall be delivered to address of the other party firstly specified herein in the following ways agreed herein:

 

(a)             Delivered in person;

 

(b)              Delivered by registered letter, postage prepaid (with receipt);

 

(c)               Delivered by express mail service;

 

(d)              Delivered by fax.

 

28.2                In the case of change in postal address firstly specified herein, the party making such change shall, within 48h following such change, notify the other party; where such documents as notice can’t be served as a result of failure to timely notify the other party in the case of changing the aforesaid addresses, the loss incurred there from shall be borne by the party making such change.

 

Article XXIX  Governing Law and Dispute Settlement

 

This Contract is governed by and interpreted in accordance with laws of the People’s Republic of China.

 

Disputes between the Borrower and the Lender arising out of performance of this Contract shall be settled through amicable consultation by both parties; where no agreement is reached, such disputes shall be brought to people’s court in the place where the Lender is domiciled.

 

Article XXX  Miscellaneous

 

30.1                Matters not covered hereunder shall be addressed through consultation by both parties or in accordance with relevant national laws and regulations.

 

30.2                Original copy of this Contract is made in triplicate, with each copy retained by each of the Borrower, the Lender and the Guarantor, its duplicate copy is made in quadruplicate, with one copy retained by each of the Guarantor and the Lender, 

 

28

 

the remaining two copies retained by the Lender.

 

Article XXXI  Entry into Force of Contract

 

This Contract comes into force upon being signed and stamped by the Borrower and the Lender.

 

 

Borrower: Yingli Green Energy International Trading Co., Ltd

(Company Seal or Special Seal for Contracts)

 

 

Legal representative: /s/ Liansheng Miao                  (signature)

(or Authorized Representative): Miao Liansheng

(mm)        (dd)        (yy)

Opening Bank & Account Number of Borrower:

Lender: China Development Bank Co., Ltd

 

 

Legal representative: /s/ Chen Yuan                    (signature)

(or Authorized Representative)

(mm)       (dd)        (yy)

 

 

Place of Execution: Shijiazhuang, Hebei Province

 

29

 

Annex One: Withdrawal Application

 

Withdrawal Application Form

 

(No.:                      )

 

China Development Bank Co., Ltd:

 

According to Foreign Exchange Loan Contract (No.:                  ) (hereinafter referred as to “Loan Contract”) entered into by and between Our Company and Your Bank on     MM DD,YY      , Our Company hereby irrevocably applies to Your Bank for withdrawing:

 

oWithdrawal Amount:                          ;

 

oWithdrawal Date:                                     ;

 

oTerm of Loan: term of loan is                months; expiry date (namely “principal repayment date”) is                         ;

 

oInterest Payment Mode:                               ;

 

oAuthorize Your Bank to transfer the aforesaid amount into deposit account opened with Your Bank by Our Company on the Withdrawal Date, account number:                                    ;

 

oOur Company authorizes Your Bank to, after depositing such loan fund into deposit account of Our Company, according to the following Entrusted Payment List, pay, on entrusted basis, all/part of such loan fund (as the case may be) to account of counterparty of Our Company in an aggregate amount of ():

 

30

 

Entrusted Payment List

 

	
Serial
   No.
    	
 
    	
Payment
   date
    	
 
    	
Amount
    	
 
    	
Payee’s
   name
    	
 
    	
Receiving
   bank
    	
 
    	
Payee’s
   account
    	
 
    	
Use of
   fund
    	
 
    	
Commercial
   contract
    
	
1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

The bases for making the aforesaid entrusted payment include: (enter names of supporting documents submitted along with this Withdrawal Application Form)

 

oOur Company will utilize such loan fund/the remaining amount of such load fund (used in the case of partial loan fund available under self-payment mode) according to self-payment mode. Our Company will, according to Loan Contract, periodically report Your Bank use of the part of loan fund subject to self-payment.

 

31

 

Our Company hereby declares that Our Company has satisfies all preconditions for withdrawal specified in Loan Contract, and no default event hereunder occurs. The aforesaid withdrawal will constitute withdrawal from Your Bank by Our Company and Our Company will assume the debts incurred therefrom.

 

Lender:                                    (Official seal or special seal for contract)

 

Legal representative (or duly authorized agent) :                   (signature)

 

32

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]