Document:

English translation of the Supplemental Agreement to the Strategic Cooperation

 Exhibit 10.17 
  

			
	English Translation	  	CONFIDENTIAL TREATMENT

 REQUESTED PURSUANT TO RULE 406 
 Supplemental Agreement 
 Party A: Chongqing Daqo New Energy Co., Ltd. 
 Party B: SUMEC Hardware & Tools Co., Ltd. 
 Pursuant to the principles set forth in the Strategic Cooperation Agreement dated December 3, 2008, Party A and Party B negotiated on certain matters
not specified therein, such as price lock-up and its implementation procedures, on December 12, 2008 and agreed as follows: 
 1. Party
B’s Profit Margin 
 The parties, abiding by the principles of mutual benefit, win-win and mutual development, have reached an agreement
on the principles to determine pricing for photovoltaic modules after thorough due diligence on the market conditions of upstream and downstream markets of the photovoltaic industry. Given that the benchmark price of a standard photovoltaic module
is * * * and Party B’s benchmark profit margin is * * *, Party B’s profit margins corresponding to the sales prices of modules shall be as follows: 
  

									
	 Price of Modules
 (€/W)
	 	 * * *
 (exclusive of
 both
numbers)
	 	* * *	 	 * * *
 (exclusive of
 both
numbers)
	 	* * *
	 	 	 	 	 
	 Party B’s
Profit
 Margin
	 	* * *	 	* * *	 	* * *	 	* * *

 If Party B needs to lower the price of its module products in order to obtain purchase orders with a
larger volume and in the event that sales price of the modules may be lower than €2.0/W, Party B shall not enter into any module sales agreements without the prior consent of Party A. Otherwise, Party A will not be bind by any obligations. If
Party A gives its prior consent under such circumstances, both parties will agree on Party B’s profit margin on a case-by-case basis. 
 2. Scope and Rate of Party B’s Fees 
 Scope and rate of Party B’s fees shall be calculated as follow: 
 0.1% of damages from breakage incurred in unpacking; 
 0.3% of damages from breakage incurred in processing; 
 1% of difference between
the actual output power of a cell and the theoretical power of such cells; 
 * * * of financial costs; 
  

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 0.05% of product liability insurance for modules; 
 Calculation of profit margin shall be based on the table above and process cost of modules includes expenses of other raw materials, labor
and utilities, etc. at the amount of * * *. 
 During the valid period of this Agreement, where the breakage rate of unpacking
is higher than 0.1%, such additional costs shall be borne by Party A and shall be deducted from the amount of products delivered; where the breakage rate of processing is higher than 0.3%, such additional costs shall be borne by Party B. 

3. Conversion between Prices of Cells and Prices of Modules 
 Prices of cells (A) and modules (B) shall be converted in accordance with the following formula: 
 * * * 
 C% refers to the relevant profit margin, which shall be determined
pursuant to sales price of modules set forth in Article 1; R refers to the exchange rate of Euro against RMB at the time of export. 
 Given the current exchange rate (€1=RMB8.6), price of cells corresponding to modules shall be as follows: 
 price
of cells corresponding to €2.0 shall be RMB15.02/W; 
 price of cells corresponding to €2.1 shall be RMB15.76/W;

 price of cells corresponding to €2.2 shall be RMB16.48/W; and 
 price of cells corresponding to €2.3 shall be RMB17.18/W. 
 Considering the risk arising from fluctuation of exchange rates, the parties will mutually agree on a future exchange rate of Euro against
RMB within the term of overseas purchase orders, and Party B shall be responsible to enter into foreign exchange forwarding arrangements to lock-up the agreed future exchange rate. If either party disagrees with such lock-up arrangement, such party
shall be responsible for any exchange rate loss that may incur. 
 4. Performance of Cells Purchase Agreement 
 The parties shall enter into a cell purchase agreement within 3 days after Party B confirms purchase orders from an overseas customer and
gives notice to Party A, provided the sales price is within the price range provided in Article 1, or after Party B obtains consent from Party A (if the price is lower than the minimal price provided in Article 1). Sales price of cells shall
be determined in accordance with provisions set forth above, and the cells shall be delivered no later than one month after the execution of a cells purchase agreement. Payment shall be made within three days upon delivery. The advance payment from
Party B to Party A at the amount of RMB30 million as set forth in the Strategic Cooperation Agreement between the parties dated December 3, 2008 will be deducted from Party B’s payment to Party A in the amount equaling to 10% of each
purchase price. Such deduction arrangement does not apply to the initial installment to be returned by Party A to Party B in the amount of RMB50 million. The settlement date of each cells purchase agreement shall be the day on which the refund is
deducted accordingly. 
  

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 This agreement is to supplement the Strategic Cooperation Agreement dated December 3,
2008 and shall have the same legal effect therewith. Matters that are not provided herein shall be resolved by the parties through negotiation. 
 This agreement shall be executed in two counterparts, each of which shall be held by each party, and shall come into effect upon execution by both parties. 
  

									
	Party A: Chongqing Daqo New Energy Co., Ltd.	  		  	Party B: SUMEC Hardware & Tools Co., Ltd.
					
	Signature:	 	 /s/
	  		  	Signature:	  	 /s/

	(company seal)	  		  	(company seal)
	Date: December 12, 2008	  		  	Date: December 12, 2008

  
  
 Note: 
  

	*	Indicates where text has been omitted pursuant to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. The omitted
materials have been filed separately with the Securities and Exchange Commission. 

  

 3English translation of a Sales and Purchase Agreement

 Exhibit 10.18 
 English Translation 
 Sales and Purchase Agreement 

Between 
 Chongqing Daqo New Energy Co., Ltd. 
 And 
 China Electric Equipment Group (Nanjing) Semiconductor Materials Co., Ltd. 
  

			
	Party A:	  	Party B:
	Chongqing Daqo New Energy Co., Ltd.	  	 China Electric Equipment Group (Nanjing)
 Semiconductor Materials Co., Ltd.

	(Seal)	  	(Seal)
	Signature of the representative: /s/ Zhou Tianqun	  	Signature of the representative: /s/ Sun Qiquan
	Date: December 18, 2009	  	Date: December 18, 2009

 Sales and Purchase Contract 
  
 Party A: Chongqing Daqo New Energy Co., Ltd. 

 Contract No.: DQZD091215 
 Company’s Form: Limited Liability Company 
 Registered Address: Wanzhou Industrial Park, Chongqing 
 Legal Representative: Xu Guangfu 
 Bank of Deposit:
China Construction Bank, Business Department of Wanzhou Branch 
 Account No.: 50001303600050207456 
 Tel: 023-64866666 
 Fax: 023-64866688 
 Party B: China Electric Equipment Group (Nanjing) Semiconductor Materials Co., Ltd. 
 Contract No.: CSMI091218 
 Company’s Form: Limited Liability Company 
 Registered Address: No. 6, Shuige Road, Economic and Technological Development Zone, Jiangning, Nanjing 
 Legal Representative: He Aoxi 
 Bank of Deposit:
Industrial and Commercial Bank of China, Nanjing Jiangning Economic and Technological Development Zone Sub-branch 
 Account No.:
4301021119100121497 
 Tel: 025-52095640 
 Fax: 025-52095953 
 Pursuant to the Contract Law of the People’s Republic of China, on the basis of equality, voluntariness and
fairness, under the principle of long-term cooperation and mutual development, Party A and Party B, through friendly negotiation, reached the following agreement regarding the purchase and sales of solar grade polysilicon. 
 Article 1: Subject Matter 
 Solar-grade
polysilicon. 
 Article 2: Quantity (ton), Price (RMB) and Time of Supply 
 2.1 Quantity, Time of Supply and Price 
 The parties agree that from December 2009 through
December 2010, the estimated quantity to be purchased shall be 50 tons per month. The sales price shall be RMB460 per kilogram (tax included) for December 2009 through June 2010. The parties shall negotiate and determine the sales price for the
second half of 2010 prior to May 30, 2010. 
 Based on its manufacturing needs, Party B shall determine the actual quantity to be purchased
and deliver to Party A, in the form of purchase orders, written estimations of requirement. Party A shall reply in writing within 2 days upon receiving such purchase orders and make arrangements for delivery of goods. 
 Article 3: Payment Terms 
 3.1 Party A
grants Party B two-month credit (payment due two months after the goods arrive in Party B’s factory). 
 3.2 Party A shall provide
corresponding VAT invoices within 7 business days after Party B receives and confirms the quantity of goods. 
  

 1 

 Sales and Purchase Contract 
  
 Article 4: Requirements of Packing and Marking and
Delivery Terms 
 4.1 Packing: the package shall be suitable for long-distance highway transportation and Party A shall bear the cost of
package. 
 4.2 Marking: Party A shall mark the name of manufacturer, lot number, specification, weight and date of production on the outer
package and inner package as required by Party B. 
 4.3 Place of Delivery: the place of delivery shall be Party B’s factory or another
place agreed upon by both parties. 
 4.4 Method of Delivery: Party A shall deliver the goods by truck via highway transportation at Party
A’s cost. 
 4.5 Transfer of title: title to the goods, together with the risk of damage or loss, shall transfer to Party B upon delivery.

 Article 5: Quality Guarantee 
 5.1 The quality standard of solar grade polysilicon sold by Party A to Party B under this Agreement is as follows: N-type resistivity shall exceed 40 ohm.cm. Anything not specified herein shall refer to the quality requirements of industry
standard. 
 5.2 Party A shall submit a test report of each batch of goods to Party B. 
 5.3 Party B shall inspect the quality of goods within 30 days after receipt of goods and notify Party A in writing of its objection within such period in
the event of any quality deficiency. Otherwise, goods supplied by Party A shall be deemed to have met the quality requirements agreed upon by both parties. 
 5.4 In the event that the goods supplied by Party A fail to meet the specifications set forth herein (see Annex 1), Party B shall be entitled to refund or discount at Party B’s choice. 
 Article 6: Effectiveness, Term and Termination of the Agreement 
 6.1 This Agreement shall take effect after it is signed and affixed with seal by the representatives of both parties. 
 6.2 If either party fails to perform its obligation under this Agreement and fails to make remedies for its non-performance or breach of obligation within 15 days after being required by the other party,
the other party can terminate this Agreement by written notice. 
 6.3 The Articles of Confidentiality, Liability for Breach of Agreement and
Dispute Settlement shall survive termination, cancellation or invalidation of this Agreement. 
 6.4 The designated contact person for the
business under this Agreement shall be as follows: 
  

			
	Contact Person Designated by Party A: Chang Zhixiang (Manager)	  	Contact Person Designated by Party B: Sun Qiquan
	 Address: Daqo Industrial Park, No.28, Yinglong Road,
 Economic and Technological Development Zone,
 Jiangning, Nanjing, Jiangsu Province
	  	 Address: No. 6, Shuige Road, Economic and
 Technological Development Zone, Jiangning, Nanjing,
 Jiangsu Province

	Tel: 86-25-6698-0570; 151-5183-2179	  	Tel: 86-25-5209-5988; 186-0619-7098
	Fax: 86-25-6698-0590	  	Fax: 86-5209-5953
	Email: changzhixiang@daqo.com	  	Email: mss@ceeg.cn

 In the event of any changes to the designated contact person, the party shall notify the other party
in writing of the changes and information of the replacement contact person the next day after the occurrence of such changes. 
 Article 7:
Liability for Breach of Contract 
 (1) Party A’s Liability for Breach of Contract 
 7.1 If Party A fails to make delivery pursuant to the terms of this Agreement, Party A shall assume the corresponding liability for breach of contract.

  

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 Sales and Purchase Contract 
  
 7.2 If Party A fails to make delivery according to
the schedule as set forth in the delivery notice letter and delays for 10 days, Party A shall be deemed to have breached this Agreement and shall pay the liquidated damages amounting to 0.1% of the total amount of the undelivered goods each day to
Party B, but such liquidated damages shall not exceed 5% of the total amount of the undelivered goods. 
 (2) Party B’s Liability for
Breach of Contract 
 7.3 If Party B fails to perform its obligations hereunder after the Agreement takes effect, Party B will assume the
corresponding liability for breach of contract. 
 7.4 If Party B fails to take the delivered goods according to the schedule under this
Agreement and delays for 10 days, Party B shall be deemed to have breached this Agreement and shall pay the liquidated damages amounting to 0.1% of the total price of the untaken goods each day to Party A, but such liquidated damages shall not
exceed 5% of the total price of the untaken goods. 
 (3) Miscellaneous 
 7.5 If both parties modify or terminate this Agreement through negotiation, no breach of contract shall occur. 
 7.6 For economic indemnifications such as liquidated damages and compensations, the breaching party shall make remittance to the other party within 10 days after the liability is clearly allocated.

 7.7 Other matters shall be solved in accordance with the Contract Law of the People’s Republic of China. 
 Article 8: Confidentiality 
 8.1 Both
parties shall keep strict confidential of the following information: 
 (1) Existence of the business relationship under this Agreement;

 (2) The terms and conditions of this Agreement and its negotiation; 
 (3) The subject matter and quantity hereunder; and 
 (4) All the commercial and technical
information involved in the performance of this Agreement. 
 However, information disclosed pursuant to Article 8.2 hereof shall be excluded.

 8.2 The information set forth in Article 8.1 can only be disclosed in the following circumstances: 
 (1) Compulsory requirements under applicable laws; 
 (2) Compulsory requirements of any competent government agency or supervisory authority; 
 (3) Disclosed by either party to the
professional consultant or lawyer under the premise that the latter undertakes to keep confidential (if any); 
 (4) The information enters the
public domain due to the fault of neither party; or 
 (5) Both parties give a written consent in advance. 
 Article 9 Force Majeure 
 9.1 Force Majeure
refers to unforeseeable, unpreventable and unavoidable events after this Agreement takes effect, such as earthquake, typhoon, flood, fire, snowstorm and war, directly affecting the continuous performance of this Agreement. 
 9.2 The affected party shall inform the other party of the reason for non-performance or incomplete performance of this Agreement immediately so as to
alleviate the losses that may be caused to the other party; the affected party shall also provide the detailed information of the force majeure and the evidence of proof issued by a competent authority within fifteen days. The breaching party shall
thereafter be allowed to delay performance, partial performance or non performance of this Agreement and shall be partially or completely exempted from the liability for breach of contract according to the actual situations. 
 9.3 If the event of force majeure lasts for over thirty days, both parties shall determine whether to continue or terminate this Agreement through friendly
negotiation. If either party fails to perform its obligations hereunder for more than two months due to the event of force majeure, the other party may terminate this Agreement by written notice. 
  

 3 

 Sales and Purchase Contract 
  
 Article 10 Dispute Settlement 
 10.1 All matters in relation to this Agreement shall be subject to the laws of the People’s Republic of China. Any dispute shall be exclusively governed
by the laws of the People’s Republic of China. 
 10.2 Any dispute arising from the interpretation or performance of this Agreement between
both parties shall be settled through friendly negotiation first. If such negotiation fails to reach an agreement within thirty days, either party may file a lawsuit with the People’s Court at the location of the plaintiff. 
 10.3 Except for the matters under dispute, both parties shall continue to exercise other rights and perform other obligations under the Agreement during the
period of occurrence and settlement of dispute. 
 Article 11 Miscellaneous 
 11.1 This Agreement shall be executed in two counterparts in Chinese, each of which shall be held by each party. This Agreement, together with its annex, shall constitute the entire agreement between both
parties concerning the subject matter of the Agreement. 
 11.2 The Agreement shall take effect upon execution. 
 11.3 The annex attached hereto is integral part of the Agreement and shall have the same legal effect as the terms of this Agreement. If the terms of this
Agreement contradict with the terms of the annex, the terms of the Agreement shall prevail. 
 11.4 Anything not included herein shall be
supplemented with supplemental agreements through friendly negotiation by both parties. The supplemental agreements shall enjoy the same legal effect as this Agreement. 
  

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 Sales and Purchase Contract 
  
 Annex 1 
 Quality Specifications of the Semiconductor Solar Grade Polysilicon 
 1. Specifications 
  

					
	 Specifications
	  	Unit	 	Target
	 Boron Test Resistivity (P-Type)
	  	Wcm	 	3200
	 Acceptor Impurity Density
	  	ppba	 	£2.7
	 Phosphorus Test Resistivity (N-Type)
	  	Wcm	 	340
	 Donor Impurity Density
	  	ppba	 	£5.4
	 Minority Carrier Lifetime
	  	μs	 	350
	 Carbon Content
	  	x1016	 	£4
	 Oxygen Content
	  	x1017	 	£1
	 Total Body Metal Content
	  	ppmw	 	£0.1

 Remark: body metal – ferrum, nickel, chromium, cuprum, zinc 
  

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