Document:

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                                                                     Exhibit 4.5

                            SHARE PURCHASE AGREEMENT

THIS SHARE PURCHASE AGREEMENT (this "AGREEMENT") is made as of this July 28,
2006, by and among LDK Solar Co., Ltd., a company organized and existing under
the laws of the Cayman Islands (the "COMPANY"), Jiangxi LDK Solar Hi-Tech Co.,
Ltd. (Chinese Characters LDK Chinese Characters), a company organized and
existing under the laws of the PRC (the "PRC SUBSIDIARY"), each of the investors
set forth in Schedule A attached hereto (each an "INVESTOR" and collectively,
the "INVESTORS") and Mr. Peng Xiaofeng (the "FOUNDER").

                                   WITNESSETH

THE PARTIES HEREBY AGREE AS FOLLOWS:

1.   DEFINITIONS

Capitalized terms used in this Agreement shall have the meanings ascribed to
them in the Schedule of Definitions.

2.   PURCHASE AND SALE OF SECURITIES

2.1  Sale and Issuance of Series A-1 and Series A-2 Preferred Shares and
     Warrants

     (i)  The Company shall adopt on or before the Closing the Memorandum and
          Articles in substantially the form attached hereto as Exhibit A and
          file such Memorandum and Articles with the Registrar of Companies of
          the Cayman Islands within fifteen (15) days of such adoption.

     (ii) On or prior to the Closing, the Company shall have authorized (i) the
          sale and issuance to the Investors of the Preferred Shares; (ii) the
          issuance of the Conversion Shares upon conversion of the Preferred
          Shares pursuant to the Memorandum and Articles; and (iii) the sale and
          issuance of the Warrants. The Preferred Shares shall have the rights,
          preferences, privileges and restrictions set forth in the Memorandum
          and Articles.

     (iii) Subject to the terms and conditions of this Agreement, each Investor
          agrees, severally and not jointly, to purchase at the Closing and the
          Company agrees to sell and issue to each Investor at the Closing (a)
          that number of the Preferred Shares set forth opposite such Investor's
          name on Schedule A attached hereto for the purchase price set forth
          thereon, including the mandatory conversion of the Exchangeable Notes
          in accordance with the terms and conditions therein (the "SUBSCRIPTION
          PRICE"); and (b) the Warrants, the terms and conditions of which are
          set forth in the Warrant Purchase Agreement substantially in the form
          attached hereto as Exhibit B. It is understood that the aggregate
          number of Preferred Shares to be issued by the Company at the Closing
          shall be 4,580,000 shares, representing a 5.7552% ownership in the
          Company immediately after the Closing (the "INITIAL OWNERSHIP"). For
          the avoidance of doubt, the calculation of the Initial Ownership
          hereunder and any adjustment to such ownership under Section 2.4 shall
          be based on the total issued and outstanding 75,000,000 Ordinary
          Shares plus the total issued and outstanding 4,580,000 Preferred
          Shares, without consideration of any shares issued pursuant to the
          Company Option Plan and any issuance by the Company under the
          Follow-on Financing.

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2.2  Closing

     Subject to the satisfaction or waiver of the conditions to closing set
     forth in Section 5 and Section 6 of this Agreement, the purchase and sale
     of the Preferred Shares set forth on Schedule A shall take place at the
     offices of Clifford Chance LLP, 40th Floor, the Bund Center, No. 222 Yan An
     Road East, Shanghai 200002, PRC, at 10:00 a.m., on or prior to the fifth
     (5th) Business Day following satisfaction or waiver of all the closing
     conditions set forth in Section 5 and Section 6 of this Agreement, or at
     such other time and place as the Company and the Investors may mutually
     agree upon orally or in writing (which time and place are designated herein
     as the "CLOSING").

2.3  Closing Delivery

     At the Closing, the Company shall deliver to each Investor: (i) a
     certificate or certificates in form reasonably satisfactory to such
     Investor evidencing the Preferred Shares purchased or mandatorily converted
     (in case of the Exchangeable Notes) by such Investor, registered in such
     Investor's or its nominee's name as evidenced by delivery of a certified
     copy of the Company's Register of Members, reflecting such Investor's
     ownership of the Preferred Shares purchased or mandatorily converted (in
     case of the Exchangeable Notes) hereunder, against delivery to the Company
     of the Subscription Price, by a wire transfer of United States Dollars in
     immediately available funds, by mandatory conversion of the Exchangeable
     Notes in accordance with the terms and conditions therein, or by other
     payment methods mutually agreed to by Company and the Investors; and (ii)
     the Warrant against payment of US$1.00 to the Company.

2.4  Ownership Adjustments

     (i)  Following the issue by the Auditor of the 2006 Audited Income
          Statement:

          (a)  If the 2006 Net Earnings are equal to or more than Guaranteed
               2006 Net Earnings, the final ownership of the Investors in the
               Company after adjustment (the "FINAL OWNERSHIP") shall remain
               unchanged as the Initial Ownership of the Investors in the
               Company.

          (b)  If the 2006 Net Earnings are less than Guaranteed 2006 Net
               Earnings, the Final Ownership of the Investors in the Company
               shall be adjusted in accordance with the following formula
               promptly following the issue of the 2006 Audited Income
               Statement:

               FO1 = IO x GE06
                          ----
                          AE06

               For purpose of the foregoing formula, the following definitions
               shall apply: (1) FO1 shall mean the Final Ownership after
               adjustment in accordance with this Section 2.4(i)(b); (2) IO
               shall mean the Initial Ownership of the Investors in the Company;
               provided that if the Warrants have been exercised prior to the
               adjustment under this Section 2.4, IO shall mean the product of
               the total number of Preferred Shares held by the Investors
               (including the Preferred Shares issued under the Warrants)
               divided by the sum of the total number of Preferred Shares held
               by the Investors (including the Preferred Shares issued under the
               Warrants) and 75,000,000 Ordinary Shares; (3) GE06 shall mean the
               Guaranteed 2006 Net

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               Earnings of the Company Group, being an amount that is
               US$30,000,000; and (4) AE06 shall mean the actual 2006 Net
               Earnings.

          (c)  The adjustment of the Final Ownership as contemplated in Section
               2.4(i)(b) above shall be effected by adjusting the Conversion
               Rate of the Preferred Shares in accordance with the following
               formula within twenty (20) Business Days following the issue of
               the 2006 Audited Income Statement:

                                 FO1 x NO
                        CR1 = --------------
                              NS x (1 - FO1)

               For purpose of the above formula, the following definitions shall
               apply: (1) CR1 shall mean the effective Conversion Rate of the
               Preferred Shares at which the Preferred Shares are converted into
               Ordinary Shares in accordance with this Section 2.4(i); (2) FO1
               shall mean the Final Ownership as adjusted according to Section
               2.4(i)(b); (3) NO shall mean the total number of Ordinary Shares
               outstanding at the time of the adjustment under this Section
               2.4(i); and (4) NS shall mean the total number of Preferred
               Shares outstanding immediately prior to the adjustment under this
               Section 2.4(i).

          (d)  For the avoidance of doubt, after the adjustment under Section
               this 2.4(i), the aggregate number of Ordinary Shares convertible
               from the total number of the Preferred Shares held by the
               Investors will equal to:

               NS x CR1

               For purpose of the above formula, the following definitions shall
               apply: (1) NS shall mean the total number of Preferred Shares
               outstanding immediately prior to the adjustment under this
               Section 2.4(i); and (2) CR1 shall mean the effective Conversion
               Rate of the Preferred Shares as adjusted according to Section
               2.4(i)(c).

               Notwithstanding the above, the parties hereto may agree from time
               to time, based on legal advice mutually acceptable to the Company
               and the Investors, on any other method to effect the adjustment
               to the Final Ownership of the Investors to be equal to the amount
               derived from the formula set forth in Section 2.4(i)(b) hereof.

     (ii) Following the issue by the Auditor of the 2007 Audited Income
          Statement:

          (a)  If the 2007 Net Earnings are equal to or more than Guaranteed
               2007 Net Earnings, the Final Ownership of the Investors in the
               Company after adjustment shall remain unchanged as the ownership
               of the Investors adjusted, if any, in accordance with Section
               2.4(i) above.

          (b)  If the 2007 Net Earnings are less than Guaranteed 2007 Net
               Earnings, the Final Ownership of the Investors in the Company
               shall be adjusted in accordance with the following formula
               promptly following the issue of the 2007 Audited Income
               Statement:

                           GE06
               FO2 = FO1 x ----
                           AE06

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               For purpose of the foregoing formula, the following definitions
               shall apply: (1) FO2 shall mean the Final Ownership after
               adjustment in accordance with this Section 2.4(ii)(b); (2) FO1
               shall mean the Final Ownership of the Investors in the Company as
               adjusted under Section 2.4 (i)(b); (3) GE07 shall mean the
               Guaranteed 2007 Net Earnings of the Company Group, being an
               amount that is US$100,000,000; and (4) AE07 shall mean the actual
               2007 Net Earnings.

          (c)  The adjustment of the Final Ownership as contemplated in Section
               2.4(ii)(b) above shall be effected by adjusting the Conversion
               Rate of the Preferred Shares in accordance with the following
               formula within twenty (20) Business Days following the issue of
               the 2007 Audited Income Statement:

                        FO2 x NO
               CR2 = --------------
                     NS x (1 - FO2)

               For purpose of the above formula, the following definitions shall
               apply: (1) CR2 shall mean the effective Conversion Rate of the
               Preferred Shares at which the Preferred Shares are converted into
               Ordinary Shares in accordance with this Section 2.4(ii); (2) FO2
               shall mean the Final Ownership as adjusted in accordance with
               Section 2.4 (ii)(b); (3) NO shall mean the total number of
               Ordinary Shares outstanding at the time of the adjustment under
               this Section 2.4(ii); and (4) NS shall mean the total number of
               the Preferred Shares outstanding immediately prior to the
               adjustment under this Section 2.4(ii).

          (d)  For the avoidance of doubt, after the adjustment under this
               Section 2.4(ii), the aggregate number of Ordinary Shares
               convertible from the total number of Preferred Shares held by the
               Investors will equal to:

               NS x CR2

               For purpose of the above formula, the following definitions shall
               apply: (1) NS shall mean the total number of Preferred Shares
               outstanding immediately prior to the adjustment under Section
               2.4(ii); and (2) CR2 shall mean the effective Conversion Rate of
               the Preferred Shares as adjusted according to Section 2.4(ii)(c).

               Notwithstanding the above, the parties hereto may agree from time
               to time, based on legal advice mutually acceptable to the Company
               and the Investors, on any other method to effect the adjustment
               to the Final Ownership of the Investors to be equal to the amount
               derived from the formula set forth in Section 2.4(ii)(b) hereof.

     (iii) Notwithstanding anything to the contrary, the Investors agree not to
          make any adjustment to the ownership (a) with respect to the 2006
          Audited Income Statement under Section 2.4(i), if the 2006 Net
          Earnings is no less than US$28,500,000; and (b) with respect to the
          2007 Audited Income Statement under Section 2.4(ii), if the 2007 Net
          Earnings is no less than US$95,000,000.

     (iv) For the avoidance of doubt, the Investors' Final Ownership after any
          adjustment made under this Section 2.4 shall not be lower than their
          ownership before such adjustment,

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          and no adjustment to the Investors' ownership will be made according
          to Section 2.4(ii)(b) hereof if a Qualified IPO consummates in 2007.

3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE PRC SUBSIDIARY AND THE
     FOUNDER

The Company, the PRC Subsidiary and the Founder jointly and severally represent
and warrant to the Investors as of the date of this Agreement and as of the
Closing that, other than as set forth in the Disclosure Schedule (the
"DISCLOSURE SCHEDULE") with specific reference to the Section to which exception
is being taken:

3.1  Organization, Good Standing and Qualification

     (i)  Each member of the Company Group is duly incorporated, validly
          existing and in good standing under the laws of the jurisdiction of
          its incorporation. Each member of the Company Group has all requisite
          corporate power and authority to carry on its business as now
          conducted and as proposed to be conducted and is duly qualified to
          transact business and is in good standing in each jurisdiction in
          which it operates business and the failure to so qualify would have a
          Material Adverse Effect.

     (ii) The Company is an exempted company duly organized, validly existing
          and in good standing under the laws of Cayman Islands, and has all
          requisite corporate power and authority to carry on its business as
          now conducted and as proposed to be conducted and is duly qualified to
          transact business and is in good standing in each jurisdiction in
          which it operates business and the failure to so qualify would have a
          Material Adverse Effect. The Company is a holding company and since
          its formation has not engaged in any business operation, been a party
          to any agreement, contract or commitment, or incurred any liability or
          obligation other than in the course of forming and holding its equity
          interest in the PRC Subsidiary and those relating solely to the
          transactions contemplated under this Agreement, the Ancillary
          Agreements and the Exchangeable Notes.

     (iii) The PRC Subsidiary is a wholly foreign-owned enterprise, duly
          organized and validly existing under the laws of the PRC. The
          formation of the PRC Subsidiary was duly approved by MOFCOM or its
          authorized local counterpart. The PRC Subsidiary has the corporate
          power and authority to own and operate its properties and to carry on
          its business as specified in the scope of business in the business
          license issued to the PRC Subsidiary.

3.2  Capitalization and Voting Rights

     (i)  The authorized capital is and as of the Closing will be US$14,000,000.
          The authorized capital of the Company consists, or will consist
          immediately prior to the Closing, of:

          (a)  Ordinary Shares. (i) 135,000,000 ordinary shares, par value
               US$0.10 per share (the "ORDINARY SHARES"), of which 75,000,000
               shares are issued and outstanding, and 52,042,000 of which are
               reserved for issuance upon conversion of the Preferred Shares to
               be issued pursuant to this Agreement and issuable upon the
               exercise of the Warrants.

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          (b)  Preferred Shares. 5,000,000 preferred shares, (1) 3,275,109 of
               which have been designated Series A-1 Preferred Shares, par value
               US$0.10 per share (the "SERIES A-1 PREFERRED SHARES"), none of
               which is issued and outstanding; and (2) 1,724,891 of which have
               been designated Series A-2 Preferred Shares, par value US$0.10
               per share (the "SERIES A-2 PREFERRED SHARES" and together with
               Series A-1 Preferred Shares, the "PREFERRED SHARES"), none of
               which is issued and outstanding.

     (ii) The registered capital of the PRC Subsidiary is US$29,000,000 as of
          the Closing, all of which is owned by the Company and has been fully
          paid for.

     (iii) On the date hereof and at the Closing, the issued and outstanding
          share capital of the Company is and will be as set forth in Section
          3.2(iii) of the Disclosure Schedule, which lists all shareholders
          owning issued and outstanding shares of the Company, together with the
          number held by each.

     (iv) Section 3.2(iv) of the Disclosure Schedule shows an accurate and true
          list of all outstanding securities of the Company and the PRC
          Subsidiary and their respective holders to be in effect immediately
          following the Closing.

     (v)  As of the date hereof and the Closing, except as provided in this
          Agreement, the Ancillary Agreements, the Company Option Plan, the
          Warrant Purchase Agreement, the Exchangeable Notes, and the rights and
          privileges of the Preferred Shares under the Memorandum and Articles,
          there are no outstanding options, warrants, rights (including
          conversion or preemptive rights and rights of first refusal), proxy or
          shareholders agreements or agreements of any kind for the purchase or
          acquisition from the Company or the PRC Subsidiary of any of their
          securities.

     (vi) Except as may be provided by the terms of the Preferred Shares or as
          otherwise set forth in Section 3.2(vi) of the Disclosure Schedule,
          neither the Company nor the PRC Subsidiary is subject to any
          obligation (contingent or otherwise) to purchase or otherwise acquire
          or retire any equity interest held by its shareholders or to purchase
          or otherwise acquire or retire any of its other outstanding
          securities.

3.3  Group Structure

     (i)  Section 3.3(i) of the Disclosure Schedule lists each Group Company,
          and correctly sets forth the capitalization of such Group Company, the
          Company's ownership interest therein, the interest of any other Person
          therein, the nature of legal entity which the Group Company
          constitutes, the jurisdiction in which the Group Company was
          organized, each jurisdiction in which the Group Company is required to
          be qualified or licensed to do business as a foreign Person and a
          brief summary of the Group Company's business.

     (ii) Except in respect of any interest held in any Group Company, none of
          the Company or the Group Companies has any Subsidiaries or owns or
          controls, directly or indirectly, any interest in any other
          corporation, partnership, trust, joint venture, association or other

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          entity. Except as set forth in Section 3.3(ii) of the Disclosure
          Schedule, none of the Company or the Group Companies maintains any
          offices or any branches.

     (iii) In respect of any ownership interest held in a Group Company by the
          Company or another Group Company, as described in Section 3.3(i) of
          the Disclosure Schedule, (a) the Company or such Group Company holds
          good and valid title to such ownership interest free and clear of all
          restrictions on transfer or other encumbrances, other than those
          restrictions on transfer or other encumbrances created by the
          Ancillary Agreements or the constitutional documents, (b) such
          ownership interest was acquired in compliance with all Applicable
          Laws, including those promulgated by SAFE and those regulating the
          offer, sale or issuance of securities generally, and (c) there are no
          outstanding options or rights for the purchase or acquisition from the
          Company or such Group Company of such ownership interest. There are no
          outstanding options, warrants, rights (including registration,
          conversion or preemptive rights and rights of first refusal), proxy or
          shareholders agreements or agreements of any kind for the purchase or
          acquisition from any Group Company of any of its equity. None of the
          Group Companies is subject to any obligation (contingent or otherwise)
          to purchase or otherwise acquire or retire any interest held by its
          equity holders or to purchase or otherwise acquire or retire any of
          its securities.

     (iv) In respect of the PRC Subsidiary, as of the Closing, the full amount
          of the registered capital thereof has been contributed, such
          contribution has been duly verified by a certified accountant
          registered in the PRC and the accounting firm employing such
          accountant, and the report of the certified accountant evidencing such
          verification has been registered with the SAIC or its authorized local
          counterpart.

3.4  Authorization

     Each of the Company, the PRC Subsidiary and the Founder has all requisite
     power and authority to execute and deliver this Agreement and each of the
     Ancillary Agreements to which it is a party and to carry out and perform
     its obligations thereunder. All corporate action on the part of each of the
     Company, the PRC Subsidiary and their respective officers, directors and
     shareholders necessary for the authorization, execution and delivery of
     this Agreement and each of the Ancillary Agreements to which it is a party,
     the performance of all obligations of each of the Company and the PRC
     Subsidiary thereunder, and the authorization, issuance (or reservation for
     issuance), sale and delivery by the Company of the Preferred Shares and the
     Warrants being sold hereunder and the Ordinary Shares issuable upon
     conversion of such Preferred Shares, has been taken or will be taken prior
     to the Closing. This Agreement and each of the Ancillary Agreements to
     which each of the Company, the PRC Subsidiary or the Founder is a party
     have been duly executed and delivered by each of the Company, the PRC
     Subsidiary and the Founder, and constitute valid and legally binding
     obligations thereof, enforceable thereagainst in accordance with its terms,
     except (i) as limited by applicable bankruptcy, insolvency, reorganization,
     moratorium, and other laws of general application affecting enforcement of
     creditors' rights generally, and (ii) as limited by laws relating to the
     availability of specific performance, injunctive relief, or other equitable
     remedies. Neither the issue of any Preferred Shares or the Warrants, nor
     the issue of any Conversion Shares is subject to any preemptive rights or
     rights of first refusal.

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3.5  Valid Issuance of Preferred Shares and the Warrants

     (i)  The Series A-1 and A-2 Preferred Shares and the Warrants that are
          being purchased by or issued to the Investors hereunder, when issued,
          sold and delivered in accordance with the terms of this Agreement
          against payment of the Subscription Price, including the irrevocable
          mandatory conversion of the Exchangeable Notes, will be duly and
          validly issued, fully paid, and non-assessable, and will be free of
          restrictions on transfer other than such restrictions on transfer as
          may be imposed by this Agreement, the Ancillary Agreements or the
          Memorandum and Articles. The Ordinary Shares issuable upon conversion
          of the Preferred Shares purchased under this Agreement or issuable
          upon the exercise of the Warrants have been duly and validly reserved
          for issuance and, upon issuance in accordance with the terms of the
          Memorandum and Articles, will be duly and validly issued, fully paid,
          and non-assessable and will be free of restrictions on transfer other
          than such restrictions on transfer as may be imposed by this
          Agreement, the Ancillary Agreements or the Memorandum and Articles.

     (ii) All presently outstanding shares of the Company are duly and validly
          issued, fully paid and non-assessable, and in each case such shares
          have been issued in full compliance with the requirements of all
          applicable securities laws and regulations, including to the extent
          applicable, the Securities Act and all other antifraud and other
          provisions of applicable securities laws and regulations.

3.6  Licenses

     (i)  Section 3.6 of the Disclosure Schedule contains a true and complete
          list of all Licenses used in and material to the business or
          operations of the Group Companies, setting forth the owner, the
          function and the expiration and renewal date of each. Prior to the
          execution of this Agreement, the Company has delivered to the
          Investors true and complete copies of all such Licenses.

          (a)  Each Group Company owns or validly holds all Licenses that are
               necessary to conduct its business and own and operate its assets
               and properties as presently conducted and operated, and can
               obtain, without undue burden or expense, all Licenses for the
               conduct of its businesses as currently conducted and as proposed
               to be conducted;

          (b)  Each License listed in Section 3.6 of the Disclosure Schedule is
               valid, binding and in full force and effect; and

          (c)  No Group Company is or has at any time been, or has received any
               notice that it is or has at any time been, in default (or with
               the giving of notice or lapse of time or both, would be in
               default) under any such License.

     (ii) Without limiting the generality of paragraph (i) above, all Licenses
          required under PRC laws for the due and proper establishment and
          operation of the PRC Subsidiary and the consummation of the
          transactions contemplated hereby have been duly obtained from the
          relevant Governmental Authority and are in full force and effect; all
          filings and registrations with the relevant PRC Governmental Authority
          required in respect of the

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          PRC Subsidiary and its operations, including but not limited to
          registration with MOFCOM, SAIC, and SAFE have been duly and timely
          completed in accordance with the relevant PRC laws; the consummation
          of the transactions contemplated under this Agreement and each of the
          Ancillary Agreements will not result in a termination or revocation of
          any of the Material Licenses; each Group Company is in compliance with
          applicable requirements of the relevant tax bureau, customs
          authorities and product registration authorities to which it and its
          business are subject.

3.7  Consents

     No consent, approval, order or authorization of, or registration,
     qualification, designation, declaration or filing with, any Governmental
     Authority or other third party on the part of any of the Company, the PRC
     Subsidiary or the Founder will be required in connection with the
     execution, delivery and performance of this Agreement and each of the
     Ancillary Agreements and the consummation of the transactions contemplated
     thereby which has not already been secured or effected or will be secured
     or effected prior to the Closing.

3.8  Offering

     The Ordinary Shares, the Preferred Shares, the Warrants and the Conversion
     Shares have not been, and will not be, registered under the Securities Act
     and are made subject of sale and purchase under this Agreement, to the
     extent they are so made herein, pursuant to an exemption from registration
     requirements of the Securities Act. Subject in part to the truth and
     accuracy of each Investor's representations set forth in Section 4 of this
     Agreement, the offer, sale and issuance of the Preferred Shares, the
     Warrants and the Conversion Shares (when issued), as contemplated by this
     Agreement, is exempt from the registration and prospectus delivery
     requirements of the Securities Act and any applicable securities laws, and
     neither the Company nor any authorized agent acting on its behalf has taken
     or will take any action that would cause the loss of such exemption.

3.9  Business Plan and Budget

     The business plan and budget dated April 2006, as amended (the "2006
     BUSINESS PLAN AND BUDGET") was previously delivered to the Investors by the
     Company and is attached as Exhibit C hereto. The 2006 Business Plan and
     Budget, including an annual profit and loss projection of the PRC
     Subsidiary for the fiscal years ending December 31, 2006 and 2007, does not
     contain any untrue statement of a material fact, nor does it omit to state
     a material fact necessary to make the statements therein not misleading,
     except that with respect to assumptions, projections and expressions of
     opinion or predictions contained in the 2006 Business Plan and Budget, the
     Company represents only it believes there is a reasonable basis therefor.

3.10 Books and Records; Minutes

     All accounts, ledgers, material files, documents, instruments, papers,
     books and records relating to the business, operations, conditions
     (financial or other) of each member of the Company Group, results of
     operations, and assets and properties of each member of the Company Group
     (collectively, the "BOOKS AND RECORDS"), each as supplied to the Investors,
     are true, correct, complete and current in all material respects, there are
     no material inaccuracies or discrepancies of

                                       -9-

<PAGE>

     any kind contained or reflected therein, and they have been maintained in
     accordance with relevant legal requirements and industry standards, as
     applicable, including the maintenance of an adequate system of internal
     controls. The minute books of each member of the Company Group, as made
     available to Investors and their representatives, contain complete and
     accurate records of all meetings of and corporate actions or written
     consents by the shareholders and the board of such member of the Company
     Group and, to the extent that such minute books are deficient, all material
     information not contained in such minutes has been conveyed to the
     Investors in other written form.

3.11 Tax Matters

     All Tax Returns required to be filed in respect of each member of the
     Company Group have been duly and timely filed, have been prepared in
     compliance with Applicable Law, and are true, correct and complete. All
     Taxes due and payable by each member of the Company Group, whether or not
     shown as due on such Tax Returns, have been fully paid when due. Each
     member of the Company Group has established adequate reserves on their
     respective books of account for all Taxes and for the liability for
     deferred income Taxes payable in respect of such member of the Company
     Group. There have been no extraordinary examinations or audits of any tax
     returns or reports by any applicable governmental agency.

3.12 Review Report

     (i)  The Company has delivered to the Investors and attached as Section
          3.12(i) of the Disclosure Schedule the review report (the "REVIEW
          REPORT") for the period from July 5, 2005 to May 31, 2006 (the "REPORT
          DATE") and the financial forecast for the seven months ending December
          31, 2006 of the Company. The Review Report and financial forecast are
          complete and correct in all material respects and present fairly the
          financial condition and position of the Company Group as of the Report
          Date, and are reviewed and signed off by KPMG in accordance with the
          IFRS.

     (ii) There are no debts, liabilities, or claims owed by or against any
          member of the Company Group, of any nature, whether accrued, absolute,
          contingent or otherwise, and whether due or to become due, other than
          liabilities set forth in the Review Report or disclosed in Section
          3.12(ii) of the Disclosure Schedule. None of the members of the
          Company Group is a guarantor or indemnitor of, or has provided
          security for, any indebtedness of any Person.

     (iii) Except as otherwise disclosed in Section 3.12(iii) of the Disclosure
          Schedule, all of the accounts receivable and notes receivable owing to
          each member of the Company Group, including without limitation all
          accounts receivable and notes receivable set forth on the Review
          Report, constitute valid and enforceable claims other than accounts
          receivable and notes receivable which individually and in the
          aggregate would not result in a Material Adverse Event if unpaid, and
          are good and collectible in the ordinary course of business in all
          material respects, net of any reserves shown on the Review Report
          (which reserves are adequate and were calculated on a basis consistent
          with IFRS), and no further goods or services are required to be
          provided in order to complete the sales and to entitle such Person to
          collect in full. There are no material contingent or asserted claims,

                                      -10-

<PAGE>

          refusals to pay, or other rights of set-off with respect to any member
          of the Company Group.

3.13 Absence of Changes

     Since the Report Date, except as otherwise disclosed in Section 3.13 of the
     Disclosure Schedule:

     (i)  None of the members of the Company Group has entered into any
          transaction that was not in the ordinary course of business.

     (ii) There has been no Material Adverse Event (individually or when
          separate events are taken together) with respect to any member of the
          Company Group or the Company Group taken as a whole.

     (iii) None of the members of the Company Group has incurred any obligation
          or liability except obligations or liabilities incurred in the
          ordinary course of business.

     (iv) There has been no resignation or termination of employment of any
          Senior Manager of any member of the Company Group, and the Company has
          no Knowledge of any impending resignation or termination of employment
          of any Senior Manager of any member of the Company Group.

     (v)  There has been no labor dispute involving any member of the Company
          Group or any of its respective employees and none is pending or
          threatened.

     (vi) There has been no material change in any compensation arrangement or
          agreement with any employee of any member of the Company Group.

     (vii) There have been no loans or guarantees made by any member of the
          Company Group to or for the benefit of any Person, other than travel
          advances and other advances made to employees in the ordinary course
          of business.

     (viii) There has been no waiver by any member of the Company Group of a
          material right or debt owing to such member.

     (ix) No member of the Company Group has purchased, acquired, sold, leased,
          granted a security interest in, pledged, mortgaged, created a lien in,
          or otherwise transferred a material portion of any material asset,
          whether tangible or intangible, other than the sale of inventory in
          the ordinary course of business and other than the creation of liens
          for taxes not yet due or payable.

     (x)  There has been no material change to, or termination of, any Material
          Contracts, no member of the Company Group has entered into any new
          Material Contracts other than those listed in Section 3.15 of the
          Disclosure Schedule, and there has been no change to the charter
          document of any member of the Company Group.

     (xi) There has been no declaration, setting aside or payment or other
          distribution in respect of any of the share capital of any member of
          the Company Group, or any direct or indirect redemption, purchase or
          other acquisition of any such share capital by any member of the
          Company Group.

                                      -11-

<PAGE>

     (xii) None of the members of the Company Group has incurred any
          indebtedness for money borrowed.

     (xiii) There has been no damage to, destruction or loss of physical
          property (whether or not covered by insurance) materially affecting
          the business or operations of any member of the Company Group.

     (xiv) There has been no agreement or commitment by any member of the
          Company Group to do any of the things described in this Section 3.13.

3.14 Litigation

     Except as set forth in Section 3.14 of the Disclosure Schedule, there are
     no legal actions, suits, proceedings or claims pending in any jurisdiction
     in which the members of the Company Group operate, are organized or
     licensed to do business, or, to the Knowledge of the Company, threatened
     (whether or not the defense thereof or liabilities in respect thereof are
     covered by insurance), at law, in equity, in arbitration or before any
     governmental entity or authority against or affecting the Business or
     Condition of the Company Group or the Founder, or any of their respective
     assets or properties, nor does the Company have Knowledge of any facts
     which are likely to give rise to the same.

     No injunction, writ, temporary restraining order, decree or any order of
     any nature has been issued by any court or other Governmental Authority
     purporting to enjoin or restrain the execution, delivery or performance of
     this Agreement or the other Ancillary Documents. No member of the Company
     Group has commenced or currently intends to initiate any legal action,
     suit, proceeding or claim.

3.15 Material Contracts

     Section 3.15 of the Disclosure Schedule lists each outstanding Contract to
     which any member of the Company Group is a party or to which any member of
     the Company Group or any of their respective properties is subject or by
     which any thereof is bound that is deemed a Material Contract under this
     Agreement.

     (i)  True and complete copies of the Material Contracts, including any
          amendments and supplements to such Contracts, have been delivered to
          the Investors.

     (ii) Unless otherwise noted on Section 3.15(ii) of the Disclosure Schedule,
          each of the Material Contracts was entered into in the ordinary course
          of business.

     (iii) Each Material Contract is valid and subsisting, enforceable by the
          parties thereto in accordance with its terms, except (a) as limited by
          applicable bankruptcy, insolvency, reorganization, moratorium and
          other laws of general application affecting enforcement of creditors'
          rights generally, and (b) as limited by laws relating to the
          availability of specific performance, injunctive relief or other
          remedies in the nature of equitable remedies. Each member of the
          Company Group has duly performed all its obligations under each
          Material Contract to the extent that such obligations to perform have
          accrued. No breach or default, alleged breach or default, or event
          which would (with the passage of time, notice or both) constitute a
          breach or default under any of the Material Contracts

                                      -12-

<PAGE>

          by any member of the Company Group, as the case may be, or any other
          party or obligor with respect thereto, has occurred, or as a result of
          this Agreement or any Ancillary Agreement, or the performance hereof
          or thereof, will occur.

     (iv) Consummation of the transactions contemplated by this Agreement and
          the Ancillary Agreements will not (and will not give any Person a
          right to) terminate or modify any rights of, or accelerate or augment
          any obligation of any member of the Company Group under any Material
          Contract.

     (v)  Notwithstanding anything to the contrary provided herein, each of the
          following Contracts is deemed to be a Material Contract and has been
          identified in Section 3.15 of the Disclosure Schedule:

          (a)  any Contract that, after the Report Date, obligates any member of
               the Company Group to pay an amount in excess of US$1,000,000;

          (b)  any Contract of the Company or any Group Company that has an
               unexpired term of more than one (1) year valued in excess of
               US$1,000,000;

          (c)  any Contract on which the business of any member of the Company
               Group is substantially dependent or which is otherwise material
               to the Business or Conditions of any member of the Company Group;

          (d)  any loan agreement, indenture, letter of credit, security
               agreement, mortgage pledge agreement, deed of trust, bond, note,
               or other agreement relating to the borrowing of money or to the
               mortgaging, pledging, transferring of a security interest, or
               otherwise placing an encumbrance on any material asset or
               material part of the assets of any member of the Company Group,
               in an amount in excess of US$1,000,000;

          (e)  any Contract involving a guarantee by the Company or any Group
               Company of performance by any Person or involving any agreement
               of the Company or any Group Company to indemnify or act as surety
               for any Person, or any other Contract of the Company or any Group
               Company to be contingently or secondarily liable for the
               obligations of any Person;

          (f)  any Contract that limits or restricts the ability of any member
               of the Company Group to compete or otherwise to conduct its
               business in any manner or place;

          (g)  any joint venture, partnership, alliance or similar Contracts of
               the Company or any Group Company involving a sharing of profits
               or expenses (including joint development and joint marketing
               contracts);

          (h)  any asset purchase agreement, share purchase agreement or other
               Contract for acquisition by the Company or any Group Company of
               assets or shares of another Person;

                                      -13-

<PAGE>

          (i)  any agreement for the divestiture of (1) any assets by or of any
               member of the Company Group for consideration in excess of
               US$1,000,000 or (2) any shares of capital stock of any member of
               the Company Group;

          (j)  any sales agency, marketing or distributorship Contract the
               termination or non-extension of which would result in a Material
               Adverse Event;

          (k)  any Contract requiring performance on the part of the Company or
               any Group Company in any country other than the PRC;

          (l)  any Contract of the Company or any Group Company that grants a
               power of attorney, agency or similar authority to another Person
               or entity, agency or similar authority to another Person or
               entity;

          (m)  any Contract that contains a right of first refusal in respect of
               the share capital of any member of the Company Group;

          (n)  all supply agreements with vendors for materials, parts and other
               inputs for the Company's products and supply agreements with a
               value in excess of US$1,000,000;

          (o)  all contracts with customers of the Company with a value (or
               expected value) in excess of US$1,000,000; and

          (p)  any other Contract that was not made in the ordinary course of
               business of the Company or any Group Company.

3.16 Compliance with Laws

     (i)  Each member of the Company Group is, and at all times has been, in
          full compliance with all Applicable Laws in any jurisdiction in which
          it operates, owns assets or is organized or licensed to do business.

     (ii) No event has occurred and no circumstance exists that (with or without
          notice or lapse of time) (a) may constitute or result in a violation
          by any member of the Company Group of, or a failure on the part of any
          member of the Company Group to comply with, any Applicable Law, or (b)
          may give rise to any obligation on the part of any member of the
          Company Group to undertake, or to bear all or any portion of the cost
          of, any remedial action of any nature.

     (iii) None of the members of the Company Group has received any notice or
          other communication (whether oral or written) from any governmental or
          regulatory body regarding (a) any actual, alleged, possible, or
          potential violation of, or failure to comply with, any Applicable Law,
          including without limitation any applicable Environmental Laws and
          Applicable Law relating to customs, transfer pricing, foreign exchange
          and related import and export regulations or (b) any actual, alleged,
          possible, or potential obligation on the part of any member of the
          Company Group to undertake, or to bear all or any portion of the cost
          of, any remedial action of any nature.

                                      -14-

<PAGE>

     (iv) None of the members of the Company Group or the Founder, director,
          agent, employee or any other person acting for or on behalf of such
          member of the Company Group, has directly or indirectly (a) made any
          contribution, gift, bribe, payoff, influence payment, kickback, or any
          other improper payment in any form, whether in money, property, or
          services to any person, including but not limited to any officer of
          any Governmental Authority (w) to obtain favorable treatment in
          securing business for such member or any other member of the Company
          Group, (x) to pay for favorable treatment for business secured, (y) to
          obtain special concessions or for special concessions already
          obtained, for or in respect of such member or any other member of the
          Company Group, or (z) in violation of any Applicable Law, or (b)
          established or maintained any fund or assets in which such member of
          the Company Group has proprietary rights that have not been recorded
          in the Books and Records of such member of the Company Group, except,
          in each case, for such payments which facilitate or expedite the
          performance of routine government action and which was lawful under
          the laws of the jurisdiction of such payments.

3.17 Real Property

     (i)  None of the members of the Company Group owns or has legal or
          equitable title or other right or interest in any real property other
          than the land use rights (the "LAND USE RIGHTS") held by the Company
          Group as set forth in Section 3.17(i) of the Disclosure Schedule or as
          held pursuant to Lease (as defined below). True and complete copies of
          the certificates evidencing the Land Use Rights have been delivered to
          each of the Investors or their agents or professional advisers. Any
          land grant premium required under Applicable Law in connection with
          securing such Land Use Rights has been fully paid. The use of any real
          property by each of the members of the Company Group has conformed to
          the intended use of such real property as granted under the applicable
          Land Use Rights. The particulars of the Land Use Rights as set out in
          Section 3.17(i) of the Disclosure Schedule are true and complete.

     (ii) Section 3.17(ii) of the Disclosure Schedule sets forth each leasehold
          interest with the annual lease payment in excess of US$50,000 pursuant
          to which any member of the Company Group holds any rights, titles or
          interests of a tenant (each a "LEASE"), indicating the parties to such
          Lease, the address of the property demised under the Lease, the rent
          payable under the Lease and the term of the Lease. Each Lease
          constitutes the entire agreement to which any member of the Company
          Group is party with respect to the property demised thereunder, and a
          true and complete copy of each such Lease has been delivered to the
          Investors, together with all amendments, modifications, alterations
          and other changes thereto. Each Lease is valid and subsisting,
          enforceable against the parties thereto in accordance with its terms.
          As of the date hereof, all conditions precedent to the enforceability
          of each Lease have been satisfied and there exists no breach or
          default, nor state of facts which, with the passage of time, notice,
          or both, would result in a breach or default on the part of any party
          to the Lease. Each member of the Company Group has accepted possession
          of the property demised pursuant to each Lease and is in actual
          possession thereof and has not sublet, assigned or hypothecated its
          leasehold interest except as set forth on Section 3.17(ii) of the
          Disclosure Schedule. The

                                      -15-
<PAGE>

          particulars of the Leases as set out in Section 3.17(ii) of the
          Disclosure Schedule are true and complete.

     (iii) Except as set forth in Section 3.17(iii) of the Disclosure Schedule,
          each member of the Company Group has obtained property ownership
          certification for the plants, buildings and improvements located on
          land with respect to which it holds Land Use Rights (collectively, the
          "IMPROVEMENTS"). The Improvements and the operation thereof are part
          of a construction project plan approved by the applicable construction
          commission for the jurisdiction where the Improvements are located and
          do not (A) contravene any Applicable Law relating to zoning or
          building or (B) violate any restrictive covenant or any provision, in
          the case of either (i) or (ii), the effect of which could interfere
          with or prevent the continued use of such Improvements for the purpose
          for which they are now being used. All of the Improvements are in good
          operating condition and in a state of reasonable maintenance and
          repair (except for ordinary wear and tear) and are adequate for the
          conduct of the business of each member of the Company Group as
          currently conducted.

     (iv) Each of the Land Use Rights and the Improvements is free and clear of
          any and all encumbrances except for those identified in Section
          3.17(iv) of the Disclosure Schedule. A true and complete copy of each
          of the agreements relating to the encumbrances identified in Section
          3.17(iv) of the Disclosure Schedule (the "MORTGAGES") has been
          delivered to each of the Investors.

     (v)  Except as set forth in Section 3.17(v) of the Disclosure Schedule,
          none of the Company Group uses any real property in the conduct of its
          business except insofar as it holds valid Land Use Rights or has
          secured a Lease with respect thereto. No default or event of default
          on the part of any member of the Company Group or event which, with
          the giving of notice or passage of time or both, would constitute a
          default or event of default has occurred and is continuing unremedied
          or unwaived under the terms of any of the Land Use Rights, the Leases
          or Mortgages. There exists no pending or threatened condemnation,
          confiscation, dispute, claim, demand or similar proceeding with
          respect to, or which could materially and adversely affect, the
          continued use and enjoyment of any Land Use Right, Lease or
          Improvement. The Land Use Rights, Leases and Mortgages are valid and
          subsisting and are enforceable in accordance with the terms contained
          therein in all material respects.

3.18 Personal Property

     (i)  The personal property of each member of the Company Group is
          sufficient for the conduct of its business as currently conducted.

     (ii) All personal property of each member of the Company Group which is
          reflected in the Review Report therefor delivered to the Investors
          under Section 3.12(i) or which has been acquired by any member of the
          Company Group since the Report Date and which has not been disposed of
          in the ordinary course of its business is owned by such member of the
          Company Group free and clear of any encumbrances.

                                      -16-

<PAGE>

     (iii) All machinery, tools and equipment of each member of the Company
          Group (other than inventories) which are reflected in the Review
          Report therefor delivered to the Investors under Section 3.12(i) or
          which have been acquired thereby since the Report Date are in a state
          of reasonable maintenance and repair (except for ordinary wear and
          tear) and are adequate for the conduct of the business thereof as
          currently operated.

     (iv) The inventories of each member of the Company Group which are
          reflected in the Review Report therefor delivered to the Investors
          under Section 3.12(i) were, on the Report Date, in good condition, and
          any inventories produced or acquired thereby after such date (to the
          extent not sold or otherwise disposed of in the ordinary course of
          business), are in good condition, are useable or useful in the
          ordinary course of the business thereof and are not in excess of
          reasonable requirements.

3.19 Entire Business

     There are no material facilities, services, assets or properties shared
     with any other entity, which are used in connection with the business
     operations of the Company Group, and all of the facilities, services,
     assets or properties owned by the Group Companies are sufficient to conduct
     its business as proposed to be conducted.

3.20 Compliance with Other Instruments

     None of the members of the Company Group is in, nor will the conduct of
     business of any of them as proposed to be conducted result in, any
     violation, breach or default of the Memorandum and Articles or any other
     constitutional documents (which include, as applicable, any articles of
     incorporation, by-laws, joint venture contracts and the like), or of any
     material respect of any term or provision of any mortgage, indenture,
     contract, agreement or instrument to which any such member of the Company
     Group is a party or may be bound, or of any provision of any judgment,
     decree, order, statute, rule or regulation applicable to or binding upon
     any of them. The execution, delivery and performance of and compliance with
     each of the Agreement and the Ancillary Agreements, and the consummation of
     the transactions contemplated thereby, will not result in any such
     violation, breach or default, or be in conflict with or constitute, with or
     without the passage of time or the giving of notice or both, either a
     default under the Memorandum and Articles or any other such constitutional
     documents, any such contract, agreement or instrument, or a violation of
     any statutes, laws, regulations or orders, or an event which results in the
     creation of any lien, charge or encumbrance upon any asset of the Company
     Group.

3.21 Interested Party Transactions

     No officer, director or shareholder, founder of the Company Group or any
     Affiliate of any of them has had, either directly or indirectly, any
     interest in (except less than 1% shareholdings for investment purposes in
     securities of publicly held and traded companies), or is an officer,
     director, employee or consultant of: (a) any person or entity which
     purchases, leases or borrows from or sells, licenses, leases, lends or
     furnishes to any member of the Company Group any goods, property,
     technology, intellectual or other property rights or services; or (b) any
     contract or agreement to which any member of the Company Group is a party
     or by which it may be bound or affected, except as set forth in Section
     3.21 of the Disclosure Schedule. All such contracts and agreements were
     made on terms and conditions as favorable to such member of the Company

                                      -17-

<PAGE>

     Group as, or more favourable to such member of the Company Group than,
     would have been obtainable by it at the time in a comparable arm's-length
     transaction with an unrelated party.

3.22 Intellectual Property Rights

     (i)  Each member of the Company Group owns or otherwise has the sufficient
          legal right or license to use all Intellectual Property necessary to
          permit the members of the Company Group to carry on their businesses
          as currently conducted and as proposed to be conducted. No claims are
          currently being asserted against any member of the Company Group, nor
          is any member of the Company Group aware of any threatened claim or
          demand, by any other Person (a) challenging or questioning the Company
          Group's validity, enforceability, ownership or use of any of the
          Intellectual Property owned or used by the Company Group or the
          validity or effectiveness of any license or similar agreement with
          respect thereto or (b) alleging any interference, infringement,
          misappropriation or unfair competition or trade practices.

     (ii) Section 3.22(ii) of the Disclosure Schedule sets forth a complete list
          of the registered rights to, registration applications of, and
          licenses under, any (a) trademarks, service marks and trade names; (b)
          patents; (c) copyrights; (d) domain names of each member of the
          Company Group.

     (iii) Each member of the Company Group has taken reasonable steps and
          measures to establish and preserve ownership of or right to use all
          Intellectual Property material to the operation of its business. Each
          member of the Company Group has taken reasonable steps to register,
          protect, maintain, and safeguard the Intellectual Property material to
          its business, including any Intellectual Property for which improper
          or unauthorized disclosure would impair its value or validity, and has
          executed appropriate nondisclosure and confidentiality agreements and
          made all appropriate filings, registrations and payments of fees in
          connection with the foregoing. There is no infringement or
          misappropriation by any other Person of any Intellectual Property of
          any member of the Company Group. No proceedings or claims in which any
          member of the Company Group alleges that any Person is infringing
          upon, or otherwise violating, any Intellectual Property of any member
          of the Company Group are pending, and none has been served, instituted
          or asserted by any member of the Company Group.

     (iv) Each member of the Company Group owns all rights in and to any and all
          Intellectual Property used or planned to be used by such member of the
          Company Group, or covering or embodied in any past, current or planned
          activity, service or product of such member of the Company Group,
          which Intellectual Property was made, developed, conceived, created or
          written by any consultant retained, or any employee employed, by such
          member of the Company Group. No former or current employee, and no
          former or current consultant, of any member of the Company Group has
          any rights in any Intellectual Property made, developed, conceived,
          created or written by the aforesaid employee or consultant during the
          period of his or her retention by such member of the Company Group
          which can be asserted against such member of the Company Group, and
          such member of the Company Group has no obligation to compensate any
          former or current employee for the use of any such Intellectual
          Property. Except as set forth on

                                      -18-

<PAGE>

          Section 3.22(iv) of the Disclosure Schedule, each former and present
          employee and consultant of each member of the Company Group has
          executed a Confidentiality, Assignment of Inventions and
          Non-Competition Agreement in substantially the form attached hereto as
          Exhibit D. None of the Company, the PRC Subsidiary or the Founder is
          aware that any of the employees employed, or any of the consultants
          retained by any member of the Company Group is in violation thereof.

     (v)  No Intellectual Property owned by any member of the Company Group is
          the subject of any security interest, lien, license or other Contract
          granting rights therein to any other Person. The Company Group has not
          (a) transferred or assigned, (b) granted an exclusive license to or
          (c) provided or licensed in source code form, any Intellectual
          Property owned by any member of the Company Group to any Person.

     (vi) To the Knowledge of the Company, no patent, invention, device,
          principle or any statute, law, rule, regulation, standard or code is
          pending or proposed which would restrict the ability of any member of
          the Company Group to use any of the Intellectual Property Rights used
          in the conduct of their business.

3.23 Labor Agreements and Actions; Employee Compensation

     (i)  Except as disclosed in Section 3.23 of the Disclosure Schedule, none
          of the members of the Company Group is a party to or is bound by any
          currently effective employment contract, deferred compensation
          agreement, bonus plan, incentive plan, profit sharing plan, retirement
          agreement, vacation, hospitalization, medical or other plan, policy,
          trust or arrangement or other employee compensation agreement.

     (ii) The Company is not aware that any of the Key Persons, senior officer
          or key employee, or that any group of key employees, intends to
          terminate their employment with the Company Group, nor does the
          Company Group have a present intention to terminate the employment of
          any of the foregoing. The employment of each of the Key Persons,
          senior officer and key employee of each member of the Company Group is
          terminable at the will of such member of the Company Group without
          giving rise to a claim for compensation or damages (other than a
          statutory severance or redundancy payment or statutory compensation
          for unfair dismissal). Each members of the Company Group has complied
          in all material respects with all Applicable Laws related to
          employment.

     (iii) None of the members of the Company Group has any liability (whether
          legally binding or not) to make any payment to or for the benefit of
          any employee, officer, consultant, independent contractor or agent in
          respect of past service, pension or the termination of the employment
          or engagement of that or any other person (including without
          limitation, payments for wrongful or unfair dismissal, loss of office
          or redundancy) that would have a Material Adverse Effect, other than
          in respect to current month payroll expenses and related deductions in
          relation to employee and employer contributions.

3.24 Benefit Plans

     (i)  None of the members of the Company Group has scheduled or agreed upon
          future increases of benefit levels (or creations of new benefits) with
          respect to any Benefit Plan,

                                      -19-

<PAGE>

          and no such increases or creation of benefits have been proposed or
          made the subject of representations to employees of the Company Group
          under circumstances which make such employees reasonably expect that
          such increases will be granted. No loan is outstanding between any
          member of the Company Group and any employee.

     (ii) Other than statutory social insurance plans operated under the
          Applicable Laws of the PRC, no member of the Company Group provides or
          is required to provide any retirement, social insurance, life
          insurance, medical, dental or other welfare benefits provided on
          ill-health, injury, death disability or on termination of employment
          (whether voluntary or involuntary) to any current or former employees,
          officers, consultants, independent contractors or agents of the
          Company Group.

     (iii) Each member of the Company Group has complied with all Applicable
          Laws in all material respects relating to any of the Benefit Plans,
          including by deducting and making all required contributions and
          payments required to be made by or on behalf of any employees of the
          Company Group to the relevant Governmental Authority, and no such
          deductions have been challenged or disallowed by any Governmental
          Authority or any employee of the Company Group. None of the members of
          the Company Group has been delinquent in making any payment to or for
          the benefit of any current or former employee, officer, consultant,
          independent contractor or agent with respect to statutory social
          insurance plans operated under the Laws of the PRC.

3.25 No State Assets

     Except as set forth in Section 3.25 of the Disclosure Schedule, none of the
     assets of any member of the Company Group constitute state-owned assets
     and, inasmuch, are not required to undergo any form of valuation under
     Applicable Law in the PRC governing the transfer of state-owned assets
     prior to the consummation of the transactions contemplated herein or in any
     of the Ancillary Agreements.

3.26 Conflict of Interest

     Section 3.26 of the Disclosure Schedule lists all existing or potential
     conflict of interest any Key Person may have with the members of the
     Company Group, and all measures that have been taken or are planned to be
     taken to address such conflicts.

3.27 Insurance

     Section 3.27 of the Disclosure Schedule contains copies of all of the
     insurance policies or programs of each of the members of the Company Group
     in effect as of the date hereof that have an insured amount of at least
     US$50,000,000, and indicates the insurer's name, policy number, expiration
     date, amount of coverage, type of coverage, annual premiums, exclusions and
     deductibles, that is in effect. All such policies are underwritten by
     financially sound and reputable insurers, and are sufficient to satisfy all
     Applicable Laws in all material respects. All such policies will remain in
     full force and effect and will not in any way be affected by, or terminate
     or lapse by reason of any of the transactions contemplated hereby.

3.28 Customers

                                      -20-

<PAGE>

     Section 3.28 of the Disclosure Schedule contains a true, complete and
     correct list of the ten largest customers of the Company Group taken as a
     whole in terms of sales during the six-month period from January 1, 2006 to
     June 30, 2006 and the twelve-month period ended December 31, 2005. There
     exists no actual or, to the Knowledge of the Company, threatened
     termination, cancellation or limitation of, or any adverse modification or
     change in, the business relationship of the members of the Company Group or
     their business with any customer or any group of customers whose purchases
     are individually or in the aggregate material to the business of the
     Company Group, and there exists no present condition or state of facts or
     circumstances that would cause a Material Adverse Effect or prevent the
     members of the Company Group from conducting their business after the
     consummation of the transactions contemplated by this Agreement, in
     substantially the same manner in which such business has heretofore been
     conducted.

3.29 Environmental Matters

     (i)  The property, assets and operations of the members of the Company
          Group are and have been in material compliance with all applicable
          Environmental Laws. No Hazardous Materials have been released, on or
          into any of the properties or premises of the Company and its
          Subsidiaries, including without limitation, the ground water, in
          contravention of Environmental Laws.

     (ii) None of the properties, assets or operations of any of the members of
          the Company Group is the subject of any governmental investigation
          evaluating whether (i) any remedial action is needed to respond to a
          release or threatened release of any Hazardous Materials into the
          environment or (ii) any release or threatened release of any Hazardous
          Materials into the environment is in contravention of any
          Environmental Law.

None of the members of the Company Group has received any written notice or
claim, nor to the Knowledge of the Company, there are pending or threatened
lawsuits or proceedings against any of them with respect to violations of an
Environmental Law or any release or threatened release of any Hazardous
Materials into the environment.

3.30 Full Disclosure

     The Company, the PRC Subsidiary and the Founder have provided each of the
     Investors with all the information that such Investor has requested for
     deciding whether to consummate the transactions contemplated under this
     Agreement. None of this Agreement, any Ancillary Agreements or any other
     statements or certificates or other materials made or delivered, or to be
     made or delivered, to such Investor in connection herewith or therewith,
     contains any untrue statement of a material fact or omits to state a
     material fact necessary to make the statements herein or therein not
     misleading. No representation or warranty by the Company, the PRC
     Subsidiary or the Founder in this Agreement and no information or materials
     provided to such Investor in connection with its due diligence
     investigation of any member of the Company Group or the negotiation and
     execution of this Agreement and the Ancillary Agreements contains or will
     contain any untrue statement of a material fact or omits or will omit to
     state any material fact required to be stated therein or necessary in order
     to make the statement therein, in light of the circumstances in which they
     are made, not misleading.

     The Company, the PRC Subsidiary and the Founder acknowledge that each of
     the Investors is

                                      -21-

<PAGE>

     entering into this Agreement in reliance on the representations and
     warranties given herein and that the representations and warranties have
     been given with the intention of inducing the Investors to enter into this
     Agreement.

4.   REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

4.1  Representations and Warranties of All Investors

     Each of the Investors hereby severally but not jointly represents and
     warrants to the Company as of the date of this Agreement and as of the
     Closing that:

     (i)  Authorization

          Such Investor has full power and authority to enter into this
          Agreement, and this Agreement, when executed and delivered by such
          Investor, will constitute its valid and legally binding obligation,
          enforceable in accordance with its terms except (i) as limited by
          applicable bankruptcy, insolvency, reorganization, moratorium, and
          other laws of general application affecting enforcement of creditors'
          rights generally, and (ii) as limited by laws relating to the
          availability of specific performance, injunctive relief, or other
          equitable remedies.

     (ii) Purchase for Own Account

          This Agreement is made with such Investor in reliance upon such
          Investor's representation to the Company, which by such Investor's
          execution of this Agreement such Investor hereby confirms, that the
          Preferred Shares and the Warrants, as the case may be, to be acquired
          hereunder and the Conversion Shares (collectively, the "SECURITIES")
          will be acquired by such Investor for investment for such Investor's
          own account, not as a nominee or agent, and not with a view to the
          resale or distribution of any part thereof, and that such Investor has
          no present intention of selling, granting any participation in, or
          otherwise distributing the same. By executing this Agreement, each of
          the Investors further represents that it does not have any contract,
          undertaking, agreement or arrangement with any Person to sell,
          transfer or grant participations to such Person or to any third
          Person, with respect to any of the Securities.

     (iii) No Public Market

          Such Investor understands that the Securities have not been, and will
          not be, registered under the Securities Act, that no public market now
          exists for the Securities, that the Company has made no assurances
          that a public market will ever exist for the Securities, and that the
          Securities may not be resold absent a registration under the
          Securities Act or an available exemption from the registration
          requirements of the Securities Act.

     (iv) Investment Experience

          Such Investor acknowledges that it is able to bear the economic risk
          of this investment and has such knowledge and experience in financial
          or business matters that it is capable of evaluating the merits and
          risks of its investment in the Securities.

     (v)  Disclosure of Information

                                      -22-

<PAGE>

          The Investors and their advisors have been furnished with all
          materials relating to the business, finances and operations of any
          member of the Company Group and materials relating to the securities
          which have been requested by the Investors or their advisors. The
          Investors and their advisors have been afforded the opportunity to ask
          questions of representatives of any member of the Company Group and
          have received answers to such questions, as the Investors deem
          necessary in connection with its decision to subscribe for the
          Preferred Shares. For the avoidance of doubt, nothing in this Section
          4.1(v) shall limit in any way the scope of the warranties set forth in
          Section 3 of this Agreement or the liability of the Company, the PRC
          Subsidiary or the Founder for breach thereof.

     (vi) Legends

          Such Investor understands that the certificates evidencing the
          securities issued pursuant to this Agreement may bear the following
          legend:

          "These securities have not been registered under the Securities Act of
          1933, as amended. They may not be sold, offered for sale, pledged or
          hypothecated in the absence of a registration statement in effect with
          respect to the securities under such Act or an opinion of counsel
          satisfactory to the Company that such registration is not required or
          unless sold pursuant to Rule 144 of such Act."

4.2  Representations and Warranties of Holders of Exchangeable Notes

     The holders of the Exchangeable Notes hereby, severally but not jointly,
     represent, warrant and agree with all the other parties to this Agreement
     that the definitive documents relating to the Series A-1/A-2 Preferred
     Shares as contemplated in this Agreement are satisfactory in form and
     substance and that the holders of the Exchangeable Notes shall exchange
     their Exchangeable Notes into Series A-1 Preferred Shares at the Closing in
     accordance with the terms and conditions hereof and thereof.

5.   CONDITIONS OF THE INVESTORS' OBLIGATIONS AT THE CLOSING

The obligations of each Investor under this Agreement at the Closing are subject
to the fulfillment on or before the Closing of each of the following conditions
unless waived by the Investors; provided, however, that any waiver of a
condition shall not be deemed a waiver of any breach of any representation,
warranty, agreement, term or covenant or of any misrepresentation by the
Company, the PRC Subsidiary or the Founder, except to the extent expressly so
waived.

5.1  Representations and Warranties

     The representations and warranties of the Company, the PRC Subsidiary and
     the Founder contained in Section 3 shall be true, correct and complete in
     all material respects when made, and shall be true, correct and complete on
     and as of Closing at which the Investors are acquiring Preferred Shares and
     the Warrants with the same effect as though such representations and
     warranties had been made on and as of the date of the Closing.

5.2  Performance

     Each of the Company, the PRC Subsidiary and the Founder shall have
     performed and complied

                                      -23-

<PAGE>

     with all agreements, obligations and conditions contained in this Agreement
     in all material respects that are required to be performed or complied with
     by it on or before the Closing.

5.3  Compliance Certificate

     The Chief Executive Officer of the Company shall deliver to each Investor
     at the Closing a certificate stating that the condition specified in
     Section 5.1, 5.2, 5.5 and 5.20 have been fulfilled in all material respects
     and stating that there shall have been no Material Adverse Change since the
     Report Date.

5.4  Secretary's or Director's Certificate

     The Investors shall have received a certificate from the Company, dated as
     of the Closing Date and signed by the Secretary or a director of the
     Company, certifying (a) that the attached copies of the organizational
     documents of the Company and each of the members of the Company Group and
     the resolutions of the Board of Directors and/or shareholders (as
     appropriate) of the Company and the PRC Subsidiary approving this Agreement
     and the Ancillary Agreements and the transactions contemplated hereby and
     thereby, are all true, complete and correct and remain unamended and in
     full force and effect, (b) that the incumbency and specimen signature of
     each officer of the Company and the PRC Subsidiary executing each such
     document or any other document delivered in connection herewith or
     therewith on behalf of the Company, (c) that the attached copies of current
     business licenses of the Company and each of the Group Companies are all
     true, complete and correct and remain unamended and in full force and
     effect, and (d) that the attached copy of a good standing certificate for
     the Company is true, complete and correct.

5.5  Governmental Consents and Approvals

     Each of the Company, the PRC Subsidiary and the Founder shall have obtained
     all authorizations, approvals, waivers or permits of any competent
     Governmental Authority or regulatory body for the consummation of all of
     the transactions contemplated by this Agreement that are required in
     connection with the lawful issuance and sale of the Preferred Shares and
     the Warrants pursuant to this Agreement, and all such authorizations,
     approvals, waivers and permits shall be effective as of the Closing.

5.6  Corporate Approval

     The Investors shall have received true, complete and correct copies of the
     resolutions of the Board of Directors and/or shareholders (as appropriate)
     of the Company and the PRC Subsidiary and such other agreements, schedules,
     exhibits, certificates, documents, financial information and filings which
     are reasonably required in connection with or relating to the transactions
     contemplated hereby, all in form and substance reasonably satisfactory to
     the Investors.

5.7  Consents From Third Parties

     Each of the Company, the PRC Subsidiary and the Founder shall have obtained
     any necessary third-party consents required in connection with or relating
     to the transaction contemplated hereby by virtue of Applicable Laws,
     contractual obligations or otherwise.

5.8  2006 Review Report

                                      -24-

<PAGE>

     The Company shall have, at the Company's expense, prepared and submitted to
     the Investors: (i) the Review Report, all prepared under IFRS and reviewed
     by the Auditor; and (ii) financial forecast for the seven months ending
     December 31, 2006, prepared and signed off by KPMG which shall be
     consistent with the 2006 Business Plan and Budget previously delivered to
     the Investors.

5.9  Due Diligence

     The Investors shall have completed and be satisfied with the results of all
     business, legal and financial due diligence, and any items requiring
     correction identified by any Investor shall have been corrected to the
     Investors' reasonable satisfaction. Without limiting the foregoing, the
     Investors shall have received from the Company all documents and other
     materials reasonably requested by the Investors for the purpose of
     examining and determining the rights of the Company, the PRC Subsidiary or
     any other members of the Company Group in and to any technology, products
     and Proprietary Assets now used, proposed to be used in, or necessary to
     the Company or the PRC Subsidiary's business as now conducted and proposed
     to be conducted, and the status of its ownership rights in and to all such
     technology, products and Proprietary Assets shall be reasonably
     satisfactory to the Investors.

5.10 Approval of the Investment Committee

     Each Investor's investment committee shall have approved the terms of the
     investment, including this Agreement and all ancillary or related
     agreements.

5.11 "Red Chip" Restructuring

     (i)  The "red chip" restructuring (including registration of shares) by the
          Company shall have been completed with no outstanding issues and the
          Investors shall have received a legal opinion issued by the Company's
          PRC counsel confirming the same to the Investors' reasonable
          satisfaction.

     (ii) The Investors shall also have been provided with documentation in a
          form reasonably satisfactory to the Investors confirming that (i) the
          Company has acquired a 100% equity interest in the PRC Subsidiary (as
          reflected in the articles of incorporation and business license of the
          PRC Subsidiary, SAIC registration documentation and the Foreign
          Exchange Certificate in due and proper form), and (ii) the
          consideration amount of the acquisition has been paid in full in
          foreign exchange to the former shareholders of the PRC Subsidiary (as
          reflected in the foreign exchange verification circular issued by SAFE
          at the provincial level consenting to the settlement of foreign
          exchange for the transfer to the Company of the 100% equity interest
          in the PRC Subsidiary).

     (iii) Simultaneously at the Closing, all Exchangeable Notes shall be
          converted into a total number of 3,000,000 Series A-1 Preferred Shares
          in accordance with the terms and conditions of such Exchangeable
          Notes.

5.12 Proceedings and Documents

     All corporate and other proceedings in connection with the transactions
     contemplated at the Closing and all documents incident thereto shall be
     reasonably satisfactory in form and substance

                                      -25-

<PAGE>

     to the Investors, and each Investor shall have received all such
     counterpart original or other copies of such documents as it may reasonably
     request.

5.13 Subscription for Preferred Shares Permitted by Applicable Laws

     The subscription for the Preferred Shares by the Investors hereunder and
     the consummation of the transactions contemplated hereby (a) shall not be
     prohibited by the Memorandum and Articles or any Applicable Laws, (b) shall
     not subject the Investors to any penalty or other onerous condition under
     or pursuant to any Applicable Law, and (c) shall be permitted by all
     Applicable Laws to which the Investors or the transactions contemplated by
     or referred to herein or in the other documents and agreements contemplated
     hereby are subject; and the Investors shall have received such certificates
     or other evidence as they may reasonably request to establish compliance
     with this condition.

5.14 Memorandum and Articles

     The Memorandum and Articles shall have been duly amended by all necessary
     action of the Company's board of directors and shareholders to read as set
     forth in the form attached hereto as Exhibit A and such amendment shall be
     duly filed with and registered by the Registrar of Companies of the Cayman
     Islands within fifteen (15) days of the adoption of such amendment as
     required by the applicable Cayman Islands law.

5.15 Right of First Refusal and Co-Sale Agreement

     The Founder and the Company shall have entered into a Right of First
     Refusal and Co-Sale Rights Agreement in substantially the form attached
     hereto as Exhibit E, and such agreement shall be in full force and effect.

5.16 Opinion of the Company's Cayman Islands Counsel

     The Investors shall have received from Conyers Dill & Pearman, Cayman
     Islands counsel for the Company, an opinion, dated as of the Closing, in
     the form attached hereto as Exhibit F.

5.17 Opinion of the Company's PRC Counsel

     The Investors shall have received from Grandall Legal Group, PRC counsel
     for the Company, an opinion, dated as of the Closing, substantially in the
     form and to the effect of Exhibit G, and to such further effect as the
     Investors may reasonably request.

5.18 Confidentiality, Commitment and Non-Competition Agreement

     The Founder and Key Persons of each member of the Company Group with access
     to confidential information shall have executed a Confidentiality,
     Assignment of Inventions and Non-Competition Agreement dated on or before
     the Closing, in the form attached hereto as Exhibit D.

5.19 Registration Rights Agreement

     The Company shall have agreed to grant the Investors certain registration
     rights in accordance with the Registration Rights Agreement in
     substantially the form attached hereto as Exhibit H.

5.20 No Litigation

                                      -26-

<PAGE>

     No action, suit, proceeding, claim, arbitration or investigation shall have
     been threatened or instituted against any of the Founder, the Company, the
     PRC Subsidiary, any other members of the Company Group or any Investor (a)
     seeking to restrain, prevent or change the transactions contemplated hereby
     or questioning the validity or legality of any of such transactions, or (b)
     which would, if resolved adversely to the Investors or the Company,
     severally or in the aggregate, cause a Material Adverse Effect.

5.21 Company Option Pool

     As of the Closing, the Company shall have authorized a stock option plan,
     pursuant to which up to 7,958,000 Ordinary Shares, representing up to ten
     percent (10%) of the aggregate number of the issued and outstanding shares
     of the Company on an as-converted and fully diluted basis as of the Closing
     Date, as may be adjusted from time to time, may be issued to the Key
     Persons, officers, directors, consultants, employees or other service
     providers of the Company in the form attached hereto as Exhibit I, which
     shall also include a list of proposed allocation of the options (the
     "COMPANY OPTION PLAN"). The options granted to the Key Persons, officers,
     directors and employees of the Company shall provide for a vesting period
     of no less than three (3) years and no more than one-third (1/3) of the
     options so granted shall be vested each year, and the exercise price of
     such options shall be at a fair market value determined by the Board of
     Directors in good faith at the time of grant, but in no event lower than
     $4.43 per share; provided however, the options granted to the holders of
     the Exchangeable Notes under the Company Option Plan shall not be subject
     to any vesting schedule and shall be immediately exercisable by such
     holders.

5.22 No Material Adverse Change

     There shall not have occurred prior to the Closing any event or transaction
     reasonably likely to have a Material Adverse Effect (the "MATERIAL ADVERSE
     CHANGE").

5.23 Directors

     The Company shall have duly appointed Kevin Wang (Chinese Characters), as
     the Investor Director nominated by the Investors, to the Board of Directors
     of the Company, and shall have procured the PRC Subsidiary to appoint the
     Investor Director to the Board of Directors of the PRC Subsidiary.

5.24 No Material Judgment or Order

     There shall not be on the Closing any judgment or order of a court of
     competent jurisdiction or any ruling of any governmental entity or
     authority or any condition imposed under any Applicable Law which, in the
     reasonable opinion of the Investors, would prohibit the subscription of the
     Preferred Shares hereunder or subject the Investors to any penalty or other
     onerous condition under or pursuant to any Applicable Law if the Preferred
     Shares were to be purchased hereunder or would cause a Material Adverse
     Effect.

5.25 Closing Condition Fulfilment Notice

     Upon fulfilment of all the closing conditions set forth in this Section 5,
     the Investors, through their legal counsel, shall have issued to the
     Company a closing condition fulfilment notice acknowledging that all the
     closing conditions set forth herein have been met.

                                      -27-

<PAGE>

6.   CONDITIONS OF THE COMPANY'S, THE PRC SUBSIDIARY'S AND THE FOUNDER'S
     OBLIGATIONS AT THE CLOSING

The obligations of the Company, the PRC Subsidiary and the Founder among
themselves and to the Investors under this Agreement at the Closing are subject
to the fulfillment on or before the Closing of each of the following conditions
by each of the Investors:

6.1  Representations and Warranties

     The representations and warranties of the Investors contained in Section 4
     shall be true, correct and complete when made, and shall be true, correct
     and complete on and as of the Closing with the same effect as though such
     representations and warranties had been made on and as of the Closing.

6.2  Performance

     Each of the Investors shall have performed and complied with all
     agreements, obligations and conditions contained in this Agreement that are
     required to be performed or complied with by it on or before the Closing.

7.   COVENANTS

7.1  Covenants Until Closing

     The Company, the PRC Subsidiary and the Founder covenant and agree with the
     Investors that, at all times from and after the date hereof until the
     Closing, the Company, the PRC Subsidiary and the Founder will comply with
     the following covenants and provisions, except to the extent the Investors
     may otherwise consent in writing.

     (i)  Governmental Authorization; Maintenance of Licenses

          The Company and the PRC Subsidiary will, and the Founder will procure
          the members of the Company Group to (i) proceed diligently and in good
          faith and use all commercially reasonable efforts, as promptly as
          practicable, to obtain all consents, approvals or actions of, to make
          all filings with and to give all notices to Governmental Authorities
          required of the Company or any Subsidiary to consummate the
          transactions contemplated hereby, (ii) provide such other information
          and communications to such Governmental Authorities as the Investors
          or such Governmental Authorities may reasonably request in connection
          with the consummation of the transactions contemplated hereby, (iii)
          cooperate with the Investors in obtaining as promptly as practicable
          all consents, approvals or actions of, making all filings with and
          giving all notices to Governmental Authorities required of the
          Investors to consummate the transactions contemplated hereby, and (iv)
          ensure that all Licenses are, and will remain, in full force and
          effect at all times following the Closing.

     (ii) Dividends

          The Company and the PRC Subsidiary will not, and the Founder will
          procure the Company and the PRC Subsidiary not to, declare or issue
          any dividends for any class of shares of the Company and the PRC
          Subsidiary.

                                      -28-

<PAGE>

     (iii) Major Transactions

          The members of the Company Group shall not, and the Founder shall
          ensure that the members of the Company Group shall not, effect any
          merger, consolidation, scheme of arrangement, recapitalization, fund
          raising or sale of all or substantially all of the assets of any
          member of the Company Group without first discussing the details of
          such activities with the Investors prior to actual execution of such
          activities.

     (iv) Notice and Cure

          The members of the Company Group shall conduct their business in a
          manner, and shall otherwise use all reasonable efforts, so as to
          ensure that the representations and warranties set forth in Section 3
          hereof shall continue to be true and correct on and as of the Closing
          Date as if made on and as of the Closing. The Company, the PRC
          Subsidiary and the Founder will notify the Investors promptly in
          writing of, and will as soon as practicable provide the Investors with
          true and complete copies of any and all information or documents
          relating to, and will use all best efforts to cure before the Closing,
          any event, transaction or circumstance occurring after the date of
          this Agreement that causes or will cause any covenant or agreement of
          any such party under this Agreement to be breached or that renders or
          will render untrue any representation or warranty of any such party
          contained in this Agreement as if the same were made on or as of the
          date of such event, transaction or circumstance. The Company also will
          notify the Investors promptly in writing of, and will use all best
          efforts to cure, before the Closing, any violation or breach of any
          representation, warranty, covenant or agreement made by the Company in
          this Agreement, whether occurring or arising before, on or after the
          date of this Agreement. No notice given pursuant to this Section
          7.1(iv) shall have any effect on the representations, warranties,
          covenants or agreements contained in this Agreement for purposes of
          determining satisfaction of any condition contained herein or shall in
          any way limit the Investors' right to seek any remedy available at law
          or in equity.

     (v)  Fulfillment of Conditions

          The Company, the PRC Subsidiary and the Founder will execute and
          deliver at or prior to the Closing this Agreement and each of the
          Ancillary Agreements that they are required hereby to execute and
          deliver as a condition to the Closing, and will take all commercially
          reasonable steps necessary or desirable and proceed diligently and in
          good faith to satisfy the other conditions to the obligations of the
          Investors contained in this Agreement and will not permit the Company
          or any member of the Company Group to take or fail to take any action
          that could reasonably be expected to result in the nonfulfillment of
          any such condition.

     (vi) Memorandum and Articles

          The Founder hereby agrees to take, or cause to be taken, all actions
          and to do, or cause to be done, all things necessary under the
          Applicable Law to abide by the terms of the Memorandum and Articles,
          as may be amended from time to time, and to cause each Group Company
          to conduct its business as if bound by the Memorandum and

                                      -29-

<PAGE>

          Articles. The Founder further agrees to execute and deliver, or cause
          to be executed and delivered, such other documents, certificates,
          agreements and other writings and to take, or cause to be taken, such
          other actions as reasonably deemed necessary in order to consummate or
          implement expeditiously the provisions of the Memorandum and Articles,
          each as may be amended from time to time.

7.2  Covenants After Closing

     The Company, the PRC Subsidiary and the Founder covenant and agree with the
     Investors that, at all times from and after the date hereof, they will
     comply with the following covenants.

     (i)  Use of Proceeds

          Without the Investors' prior written consent, the Subscription Price
          paid by the Investors to the Company shall be only used by the Company
          to implement business expansion, make capital expenditures and meet
          general working capital needs of the PRC Subsidiary within the
          business scope of solar energy in accordance with the Business Plan of
          the Company and/or the PRC Subsidiary approved by the Investors.

     (ii) Disclosure of Major Events

          The Company covenants to disclose to all of its shareholders all major
          events that may lead to liabilities of any of the members of the
          Company Group, including without limitation, legal proceedings
          threatened or taken against the Company Group.

     (iii) Internal Control and Financial Management

          The Company and the PRC Subsidiary shall use their best efforts to
          adopt an internal control system that ensures the separation of
          internal audit and financial control of the Company and the PRC
          Subsidiary, respectively.

     (iv) Regulatory Compliance

          The Company, the PRC Subsidiary and the Founder shall cause all
          shareholders of the Company and the PRC Subsidiary (or any successor
          entity) to timely complete all required registrations and other
          procedures with applicable governmental authorities, including without
          limitation the State Administration of Foreign Exchange, if and when
          required pursuant to applicable law, and shall ensure that at all
          times the Company, the PRC Subsidiary and their respective
          shareholders are in compliance with such requirements and that there
          is no barrier to repatriation of profits, dividends and other
          distributions from the PRC Subsidiary (or any successor entity) to the
          Company.

     (v)  Hiring of Chief Financial Officer and Chief Operating Officer

          Within six (6) months following the Closing, the Company shall hire,
          and the Founder shall take, or cause to be taken, all actions and
          shall do, or cause to be done, all things that are necessary,
          desirable or appropriate to cause the Company to hire a Chief
          Financial Officer and Chief Operating Officer in each case of
          international and professional standard. The Investors agree to assist
          the Company in such hiring process.

                                      -30-
<PAGE>

     (vi) Key Man Insurance

          Within ninety (90) days following the Closing, the Company shall
          obtain key man insurance policy for the Founder, the terms and
          conditions of which shall be to the reasonable satisfaction of the
          Investors.

     (vii) PRC Matters

          (a)  Within ninety (90) days following the Closing, the Company shall
               obtain valid titles to all land and buildings located on such
               land which are used in the conduct of business by the Company
               Group, and enter into valid and binding land use right transfer
               agreements to acquire such land if necessary.

          (b)  Within ninety (90) days following the Closing, the Company shall
               procure the PRC Subsidiary to obtain all permits, certificates,
               authorizations and approvals required under any PRC environmental
               laws, regulations, ordinance and orders in connection with the
               business operations of the PRC Subsidiary.

8.   CONFIDENTIALITY

8.1  Disclosure of Terms

     Each party hereto agrees that it will maintain the confidentiality of the
     terms and conditions of this Agreement, all exhibits and schedules attached
     hereto (collectively, the "FINANCING TERMS") and the transactions
     contemplated hereby of the Company; provided, however, such obligation of
     confidentiality shall not apply to (i) information which was in the public
     domain or otherwise known to the relevant party before it was furnished to
     it by another party hereto or, after it was furnished to that party,
     entered the public domain otherwise than as a result of (1) a breach by
     that party of this Section 8.1 or (2) a breach of a confidentiality
     obligation by the disclosing party, where the breach was known to that
     party; (ii) information the disclosure of which is necessary in order to
     comply with applicable law, the order of any court, the requirements of a
     stock exchange or other governmental or regulatory authority or to obtain
     tax or other clearances or consents from any relevant authority; (iii)
     information disclosed by the Investors to a bona fide proposing purchaser
     of any Preferred Shares, (iv) information disclosed by the Company to
     holders of the Exchangeable Notes for their consideration of conversion of
     the Exchangeable Notes into the Series A-1 Preferred Shares, or (v)
     information disclosed by the parties hereto to their respective directors,
     managers, officers, employees, partners, accountants and attorneys where
     such Persons or entities are under appropriate nondisclosure obligation to
     the relevant party.

8.2  Press Releases

     Notwithstanding any other provision of this Section 8, with respect to the
     transactions contemplated under this Agreement, within sixty (60) days
     after the Closing, the Company may issue a press release through any media
     channels, including industrial conferences, disclosing the existence of
     this Agreement and the transactions contemplated hereunder, provided that
     such press release does not disclose the Financing Terms and is in a form
     approved by the Investors. Any communication with the media or press
     release (via any medium, including industrial conferences) that uses an
     Investor's trade name or otherwise refers to an Investor's participation

                                      -31-

<PAGE>

     or involvement with the Company Group shall be subject to the prior written
     approval of the Investors prior to the release or use of such communication
     or press release.

8.3  OTHER INFORMATION

     The provisions of this Section 8 shall survive the termination of this
     Agreement and shall be in addition to, and not in substitution for, the
     provisions of any separate nondisclosure agreement executed by any of the
     parties hereto with respect to the transactions contemplated hereby.

9.   ADDITIONAL AGREEMENTS

9.1  Delivery of Financial Statements

     The Company shall deliver to each Investor:

     (i)  as soon as practicable, but in any event within one-hundred and twenty
          (120) days after the end of each fiscal year of the Company,
          consolidated (with respect to the Company) and unconsolidated (with
          respect to the PRC Subsidiary) income statements and statements of
          cash flows for the Company Group for such fiscal year, consolidated
          balance sheets for the Company and each member of the Company Group as
          of the end of the fiscal year all prepared in accordance with IFRS and
          audited and certified by the Auditor;

     (ii) as soon as practicable, but in any event within sixty (60) days after
          the end of each fiscal quarter, unconsolidated unaudited income
          statements, statements of cash flows and balance sheets for such
          fiscal quarter of the PRC Subsidiary, and a management report of the
          Company;

     (iii) as soon as practicable, but in any event within thirty (30) days of
          the end of each month, unconsolidated unaudited income statements,
          statements of cash flows and balance sheets for the PRC Subsidiary as
          of the end of such month, and a management report of the Company; and

     (iv) as soon as practicable, but in any event prior to the end of each
          fiscal year, an operating budget, budget of capital expenditures, and
          strategic plan for the succeeding fiscal year, all as approved by the
          Board.

                                      -32-

<PAGE>

9.2  Inspection

     The Company shall permit each Investor, at such Investor's expense, to
     visit and inspect any of the properties and examine the books of account
     and records of the Company Group and discuss the affairs, finances and
     accounts of the Company Group with the directors, officers, accountants,
     legal counsel and investment bankers of the Company Group, all at such
     reasonable times as may be requested in writing by such Investor. Without
     limiting the foregoing, the Company shall permit each Investor, at such
     Investor's expense, to inspect all Tax Returns for the Company Group,
     together with all supporting materials or materials used in the preparation
     of such Tax Returns, and to discuss the Company's Tax policies with the
     directors, officers, employees, accountants, legal counsel and investment
     bankers of the Company and the Group Companies, all at such reasonable
     times as may be requested by the Investors.

9.3  Termination of Information and Inspection Covenants

     The covenants set forth in Sections 9.1 through 9.2 shall terminate as to
     each holder of the Preferred Shares or Conversion Shares and be of no
     further force or effect if (i) the Company becomes subject to the filing
     requirements of the Exchange Act or the rules of any other organized
     securities exchange, or (ii) such holder of the Preferred Shares shall
     cease to hold any Preferred Shares or Conversion Shares.

9.4  Assignment

     To the extent any holder of the Preferred Shares transfers any such shares
     to any other Person, such holder may assign its rights under Sections 9.1
     and 9.2 to such Person.

9.5  Lock-up of Investors' Preferred Shares

     Each of the Investors undertakes not to sell, transfer or otherwise dispose
     of the legal and beneficial ownership of the Preferred Shares it subscribed
     for under this Agreement or the Conversion Shares during the six-month
     period following the Closing. Upon expiration of such six-month period,
     each of the Investors may, with prior notification in writing to the
     Company, sell, transfer or otherwise dispose of such ownership, provided
     that it shall not sell, transfer or otherwise dispose of such ownership to
     any Competitor of the Company or the PRC Subsidiary.

     Each of the Investors also acknowledges that during a Qualified IPO, it
     will agree to a reasonable lock-up period if so requested by the managing
     underwriter of such Qualified IPO.

9.6  Board of Directors

     (i)  The Board of Directors of the Company shall consist of five (5)
          directors. The Investors shall have the right to appoint one (1)
          member of the Board of Directors, currently being Kevin Wang (the
          "INVESTOR DIRECTOR"). The remaining directors shall be nominated,
          elected and removed by the holders of Ordinary Shares in accordance
          with the Memorandum and Articles. The Investor Director designated by
          the Investors will be entitled to be a member of all board committees,
          including the Compensation Committee and the Auditing Committee once
          they are formed by the Board of Directors.

                                      -33-

<PAGE>

     (ii) Meetings of the Board of Directors shall be held at least once per
          calendar quarter on as regular a basis as possible by giving at least
          fifteen (15) calendar day's prior notice of such meeting and the
          agenda of such meeting. The number of directors necessary to
          constitute a quorum at any regular or special meeting of the Board of
          Directors of the Company shall be a majority of the total number of
          directors then in office.

     (iii) The Company and the PRC Subsidiary shall, and the Founder shall
          procure the Company and the PRC Subsidiary to, cause the Board of
          Directors of each member of the Company Group to be composed of the
          same nominees designated by such Persons pursuant to Section 9.6(i).

     (iv) The Company shall indemnify and hold harmless each director appointed
          pursuant to Section 9.6(i) who was or is a party or is threatened to
          be made a party to any threatened, pending or completed action, suit
          or proceeding, whether civil, criminal, administrative or
          investigative by reason of the fact that he is or was a director of
          the Company, or is or was a director of the Company serving at the
          request of the Company as a director of another company, partnership,
          joint venture, trust, employee benefit plan or other enterprise,
          against expenses (including attorney's fees), judgments, fines and
          amounts paid in settlement actually and reasonably incurred by him in
          connection with such action, suit or proceeding if he acted in good
          faith and in a manner he reasonably believed to be in or not opposed
          to the best interests of the Company, and, with respect to any
          criminal action or proceeding, had no reasonable cause to believe his
          conduct was unlawful.

     (v)  Each of the parties to this Agreement shall vote any shares of the
          Company held thereby and if applicable, cause its respective
          representatives on the Board to, and the Company shall, and the
          Founder shall cause the Company to, promptly take any and all actions
          necessary to effect the provisions of this Section 9.6 and Section 9.7
          below.

9.7  Major Corporate Transactions

     (i)  Neither the Company nor any other members of the Company Group shall,
          and the Founder shall cause the Company and such member of the Company
          Group not to, take any of the following actions subsequent to the
          Closing without, in addition to any other authorizations or approvals
          required by Applicable Law and the Memorandum and Articles, the prior
          written approval of the holders of at least two thirds (2/3) of the
          total number of issued and outstanding Preferred Shares, voting as a
          single class.

          (a)  any amendment to the Articles of the Company or the PRC
               Subsidiary;

          (b)  any merger, acquisition, consolidation, joint venture or like
               transaction involving any member of the Company Group (whether or
               not such member of the Company Group is the surviving
               corporation), or any liquidation, dissolution, winding-up,
               bankruptcy, revocation of voluntary dissolution (judicial or
               non-judicial) or similar proceeding filed by or against any of
               the members of the Company Group;

                                      -34-

<PAGE>

          (c)  any sale, lease, transfer, exchange or other disposition of all
               or substantially all of the assets of the Company (including the
               disposition of operating rights of any member of the Company
               Group);

          (d)  any transfer or exclusive license in any of the Company Group's
               technology other than licenses of non-exclusive rights in such
               technology that are required or necessary in the ordinary course
               of business;

          (e)  creation, incurrence, assumption or permission to exist any
               mortgage, pledge, charge, lien or other encumbrance on all or
               substantially all of assets of any member of the Company Group,
               other than those required or necessary in the ordinary course of
               business which shall not exceed US$5,000,000 in any single
               transaction;

          (f)  issuance or sale by any member of the Company Group of any
               securities other than (i) any issuance of the Conversion Shares,
               (ii) any grant of stock options under the Company Option Plan,
               (iii) any issuance of securities pursuant to the Follow-On
               Financing, (iv) any issuance of the Series A-1 Preferred Shares
               upon the conversion of the Exchangeable Notes, and (v) any
               issuance of the Preferred Shares upon the exercise of the
               Warrants and the issuance of Conversion Shares thereof;

          (g)  any redemption, retirement, purchase or other acquisition, direct
               or indirect, by any member of the Company Group of any
               outstanding Ordinary Shares or Securities (or any warrants,
               rights or options to acquire any such Ordinary Shares or
               Securities), other than in accordance with the right of
               redemption of the Investors as provided in the Memorandum and
               Articles, or any other reduction or similar change of capital
               structure of any member of the Company Group;

          (h)  launch of an initial public offering of the Ordinary Shares at a
               price lower than the minimum offering price as required for a
               Qualified IPO (i.e., US$11.00 per Ordinary Share);

          (i)  issuance of any securities at the Follow-On Financing at a price
               per share lower than US$5.00, the maximum number of securities to
               be issued pursuant to the Follow-On Financing exceeding
               20,420,000 shares, or the conversion rate being other than 1:1,
               with adjustments permitted for recapitalization, share split or
               combination and share dividends;

          (j)  any declaration or payment of any dividend or other distribution,
               direct or indirect, in cash or in property by any member of the
               Company Group on account of any class of share capital of such
               member of the Company Group now or hereafter outstanding;

          (k)  any sale, transfer or other disposition of any Ordinary Shares by
               the Founder prior to a Qualified IPO;

          (l)  any sale, transfer or other disposition by any Key Person of any
               shares acquired through the exercise of stock options received
               under the Company Option Plan before a Qualified IPO;

                                      -35-

<PAGE>

          (m)  any sale, transfer or other disposition of any shares by any
               other holder of equity interest in the Company (other than any of
               the Investors or their transferees or permitted assigns)
               representing more than a five percent (5%) equity interest in the
               Company (on a fully diluted and as converted basis);

          (n)  termination of the Company Option Plan or adoption of any other
               share option or similar incentive plan of any member of the
               Company Group or any material amendment to the same, including
               change or determination of the number of options reserved,
               vesting periods and exercise prices of the stock options
               thereunder;

          (o)  grant of loans to any director, officer or employee of any member
               of the Company Group;

          (p)  engagement in any transactions by any member of the Company Group
               with (i) its directors, (ii) shareholders, (iii) the Founder, the
               Key Persons or their respective Affiliates, (iv) close relatives
               of the Founder or Affiliates of such relatives, (v) close
               relatives of the Affiliates of the Founder or Affiliates of such
               relatives, or (vi) any corporation or other entity of which
               majority equity is held or which is otherwise controlled by any
               of the Persons listed in (i) through (vi) of this paragraph (p),
               jointly or respectively;

          (q)  creation, incurrence, assumption, guarantee or otherwise becoming
               liable (directly or indirectly) by any of the member of the
               Company Group with respect to any indebtedness (including capital
               leases) which represents an amount in excess of US$8,000,000;

          (r)  the purchase or lease by any member of the Company Group of any
               real estate property valued in excess of US$3,000,000;

          (s)  the purchase by any member of the Company Group of listed or
               unlisted securities;

          (t)  any increase or decrease in the total number of directors
               comprising the board of directors of any member of the Company
               Group;

          (u)  any adoption by the Company Group of a business plan or annual
               budget or any material amendment to its current business plan or
               annual budget, or any material alteration or change in the
               strategic direction or business operations in a manner that is
               not contemplated in the most recent business plan or annual
               budget;

          (v)  changes of the independent auditors or changes in accounting
               practices or policies by any member of the Company Group; and

          (w)  public offerings and/or registration of securities other than a
               Qualified IPO of the Company.

     (ii) Notwithstanding anything provided in this Section 9.7 to the contrary,
          to the extent any of the actions referred to in Section 9.7(i) above
          will impact the liquidation preference or redemption rights of the
          holders of the Preferred Shares, the holders of the Series A-1

                                      -36-

<PAGE>

          Preferred Shares and the Series A-2 Preferred Shares shall vote as
          separate classes with respect to each of such actions.

9.8  Pre-emptive Right

     (i)  General

          The Company hereby grants to each Investor a pre-emptive right to
          purchase up to a pro rata share of any New Securities which the
          Company may, from time to time, propose to sell and issue. An
          Investor's "pro rata share", for purposes of this pre-emptive right,
          shall be determined according to the number of Ordinary Shares owned
          by such Investor immediately prior to the issuance of the New
          Securities (assuming the exercise, conversion or exchange of any
          Ordinary Share Equivalents) in relation to the total number of
          Ordinary Shares outstanding immediately prior to the issuance of the
          New Securities (assuming the exercise, conversion or exchange of any
          Ordinary Share Equivalents). Each Investor shall have a right of
          over-allotment such that, if any Investor fails to exercise its right
          hereunder to purchase its pro rata share of New Securities, the other
          Investors may purchase the non-purchasing Investor's portion on a pro
          rata basis within ten (10) days from the date such non-purchasing
          Investor fails to exercise its right hereunder.

     (ii) Issuance Notice

          In the event the Company proposes to undertake an issuance of New
          Securities, it shall give each Investor written notice (an "ISSUANCE
          NOTICE") of such intention, describing the type of New Securities, and
          their price and the general terms upon which the Company proposes to
          issue the same. Each Investor shall have thirty (30) days after any
          such notice is mailed or delivered to agree to purchase up to such
          Investor's pro rata share of such New Securities for the price and
          upon the terms specified in the notice by giving written notice to the
          Company and stating therein the quantity of New Securities to be
          purchased.

     (iii) Sales by the Company

          Upon the expiration of forty (40) days from the Company's delivery of
          the Issuance Notice and for sixty (60) days thereafter, the Company
          may sell any New Securities with respect to which the Investors'
          pre-emptive rights under this Section 9.8 was not exercised, at a
          price and upon terms no more favorable to the purchasers thereof than
          specified in the Issuance Notice. In the event the Company has not
          sold such New Securities within such 60-day period, the Company shall
          not thereafter issue or sell any New Securities, without first again
          offering such securities to the Investors in the manner provided in
          Section 9.8(i) above.

     (iv) The pre-emptive right granted under this Agreement shall expire upon,
          and shall not be applicable to, a Qualified IPO.

     (v)  To the extent any holder of Preferred Shares transfers any such shares
          to any other Person, such holder may assign its rights under this
          Section 9.8 to such Person.

                                      -37-

<PAGE>

10.  MISCELLANEOUS

10.1 Survival

     The warranties, representations and covenants of the Company, the PRC
     Subsidiary, the Founder and each of the Investors contained in or made
     pursuant to this Agreement and the indemnity given by the Company, the PRC
     Subsidiary and the Founder pursuant to Section 10.2 shall survive the
     execution and delivery of this Agreement and the Closing, and shall in no
     way be affected by any investigation of the subject matter thereof made by
     or on behalf of any of the Investors or the Company.

10.2 Indemnity

     (i)  The Company, the PRC Subsidiary and the Founder agree to, jointly and
          severally, indemnify and hold harmless any Investor and such
          Investor's directors, officers, employees, Affiliates, agents and
          permitted assigns (each, an "INDEMNITEE"), against any and all
          Indemnifiable Losses to such Indemnitee, directly or indirectly, as a
          result of, or based upon or arising from any inaccuracy in or breach
          of nonperformance of any of the representations, warranties, covenants
          or agreements made by the Company, the PRC Subsidiary and the Founder
          in or pursuant to this Agreement. For purposes of this Section,
          "INDEMNIFIABLE LOSS" means, with respect to any Indemnitee, any
          action, cost, damage, disbursement, expense, liability, loss,
          deficiency, diminution in value, obligation, penalty or settlement of
          any kind or nature, whether foreseeable or unforeseeable, including,
          but not limited to, (i) interest or other carrying costs, penalties,
          legal, accounting and other professional fees and expenses reasonably
          incurred in the investigation, collection, prosecution and defense of
          claims and amounts paid in settlement, that may be imposed on or
          otherwise incurred or suffered by such Indemnitee and (ii) any taxes
          that may be payable by such Indemnitee as a result of the
          indemnification of any Indemnifiable Loss hereunder.

     (ii) The Founder shall indemnify, defend and hold harmless the Company, any
          Investor and their respective directors, officers, employees,
          Affiliates, agents and permitted assigns, against any and all
          Indemnifiable Losses to such Person, directly or indirectly resulting
          from, arising out of or relating to any tax or other obligations as a
          result of the Company's purchase of a 72.41% equity interest in the
          PRC Subsidiary from Liouxin Industrial Limited at US$1.

     (iii) The Investors shall indemnify, severally but not jointly, defend and
          hold harmless the Company, the PRC Subsidiary and the Founder, their
          respective directors, officers, employees, Affiliates, agents and
          permitted assigns, against any and all Indemnifiable Losses to such
          Person, directly or indirectly resulting from, arising out of or
          relating to any inaccuracy in or breach of nonperformance of any of
          the representations, warranties, covenants or agreements made by the
          Investors.

          Notwithstanding anything contained herein to the contrary, the
          indemnification obligations of the Investors pursuant to this Section
          10.2(ii) hereof shall expire at Closing.

                                      -38-

<PAGE>

10.3 Successors and Permitted Assigns

     Except as otherwise provided herein, (i) the terms and conditions of this
     Agreement shall inure to the benefit of and be binding upon the respective
     successors and permitted assigns of the parties hereto whose rights or
     obligations hereunder are affected by such terms and conditions; (ii)
     except or otherwise provided herein, this Agreement, and the rights and
     obligations herein may be assigned by any Investor to any Affiliate of such
     Investor, but not to any other person without the prior written consent of
     the Company; and (iii) the Founder may not assign any of his rights or
     delegate any of its obligations under this Agreement without the prior
     written consent of each Investor. Subject to Section 10.2 above, nothing in
     this Agreement, express or implied, is intended to confer upon any party
     other than the parties hereto or their respective successors and permitted
     assigns any rights, remedies, obligations, or liabilities under or by
     reason of this Agreement, except as expressly provided in this Agreement.

10.4 Governing Law

     This Agreement shall be governed by and construed under the laws of Hong
     Kong, without regard to principles of conflicts of law thereunder.

10.5 Counterparts

     This Agreement may be executed in two or more counterparts, each of which
     shall be deemed an original, but all of which together shall constitute one
     and the same instrument.

10.6 Titles and Subtitles

     The titles and subtitles used in this Agreement are used for convenience
     only and are not to be considered in construing or interpreting this
     Agreement.

10.7 Notices

     Any and all notices required or permitted under this Agreement shall be
     given in writing in English and shall be provided by one or more of the
     following means and shall be deemed to have been duly given (a) if
     delivered personally, when received, (b) if transmitted by facsimile, on
     the date of transmission with receipt of a transmittal confirmation, or (c)
     if by international courier service, on the fourth (4th) Business Day
     following the date of deposit with such courier service, or such earlier
     delivery date as may be confirmed in writing to the sender by such courier
     service.

10.8 Administrative Fee and Other Expenses

     The Company shall bear its own costs in connection with this Agreement. At
     the Closing, the Company shall also pay all costs and expenses reasonably
     incurred by the Investors in connection with the negotiation, execution,
     delivery and performance of this Agreement, the Ancillary Agreements and
     the transactions contemplated hereby and thereby through the date of the
     Closing, including the expenses of counsel and other professional advisors
     to the Investors, up to a maximum amount of US$50,000 which the Investors
     are entitled to deduct from payment of the Subscription Price at Closing.
     If any action at law or in equity is necessary to enforce or interpret the
     terms of this Agreement, the prevailing party shall be entitled to
     reasonable attorney's fees,

                                      -39-

<PAGE>

     costs and necessary disbursements in addition to any other relief to which
     such party may be entitled.

10.9 Amendments and Waivers

     Any term of this Agreement may be amended and the observance of any term of
     this Agreement may be waived (either generally or in a particular instance
     and either retroactively or prospectively), only by an instrument signed by
     (i) the Company, (ii) the Founder, and (iii) the holders of at least two
     thirds (2/3) of the Preferred Shares then outstanding unless otherwise
     provided in Section 9.7(ii) hereof. Notwithstanding the foregoing, in the
     case of a proposed amendment or waiver of Section 2.1(iii) or Schedule A of
     this Agreement, such amendment or waiver shall only be effective if an
     instrument is signed by each party to the Agreement.

10.10 Severability

     If one or more provisions of this Agreement are held to be unenforceable
     under any Applicable Law, such provision shall be excluded from this
     Agreement and the balance of the Agreement shall be interpreted as if such
     provision were so excluded and shall be enforceable in accordance with its
     terms.

10.11 Entire Agreement

     This Agreement and the documents referred to herein, together with all
     schedules and exhibits hereto and thereto, constitute the entire agreement
     among the parties and no party shall be liable or bound to any other party
     in any manner by any warranties, representations, or covenants except as
     specifically set forth herein or therein; provided, however, that nothing
     in this Agreement or any Ancillary Agreement shall be deemed to terminate
     or supersede the provisions of any confidentiality and nondisclosure
     agreements executed by the parties hereto prior to the date of this
     Agreement, all of which agreements shall continue in full force and effect
     until terminated in accordance with their respective terms.

10.12 Dispute Resolution

     (i)  Any dispute, controversy or claim arising out of or relating to this
          Agreement, or the interpretation, breach, termination or validity
          hereof, shall be resolved through consultation. Such consultation
          shall begin immediately after one party hereto has delivered to the
          other party hereto a written request for such consultation. If within
          thirty (30) days following the date on which such notice is given the
          dispute cannot be resolved, the dispute shall be submitted to
          arbitration upon the request of either party with notice to the other.

     (ii) The arbitration shall be conducted in Hong Kong under the auspices of
          the Hong Kong International Arbitration Centre (the "CENTRE"). There
          shall be three arbitrators. Each party hereto shall each select one
          arbitrator within thirty (30) days after giving or receiving the
          demand for arbitration. Such arbitrators shall be freely selected, and
          the parties shall not be limited in their selection to any prescribed
          list. The Chairman of the Centre shall select the third arbitrator,
          who shall be qualified to practice law in Hong Kong. If either party
          does not appoint an arbitrator who has consented to participate

                                      -40-

<PAGE>

          within thirty (30) days after selection of the first arbitrator, the
          relevant appointment shall be made by the Chairman of the Centre.

     (iii) The arbitration proceedings shall be conducted in English. The
          arbitration tribunal shall apply the Arbitration Rules of the Centre
          in effect at the time of the arbitration. However, if such rules are
          in conflict with the provisions of this Section 10.12, including the
          provisions concerning the appointment of arbitrators, the provisions
          of this Section 10.12 shall prevail.

     (iv) The arbitrators shall decide any dispute submitted by the parties to
          the arbitration strictly in accordance with the substantive law of
          Hong Kong and shall not apply any other substantive law.

     (v)  Each party hereto shall cooperate with the other in making full
          disclosure of and providing complete access to all information and
          documents requested by the other in connection with such arbitration
          proceedings, subject only to any confidentiality obligations binding
          on such party.

     (vi) The award of the arbitration tribunal shall be final and binding upon
          the disputing parties, and either party may apply to a court of
          competent jurisdiction for enforcement of such award.

     (vii) Either party shall be entitled to seek preliminary injunctive relief,
          if possible, from any court of competent jurisdiction pending the
          constitution of the arbitral tribunal.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK]

                                      -41-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                        COMPANY:

                                        LDK SOLAR CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        No. 18 Xizang Mid-Road
                                        Harbor Ring Plaza
                                        Shanghai 200001

                                        Attention: Mr. Peng Xiaofeng &
                                                   Mr. Shao Yonggang
                                        Facsimile: (86-21) 6350 8707

                                      -42-

<PAGE>

                                        PRC SUBSIDIARY:

                                        JIANGXI LDK SOLAR HI-TECH CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        Hi-tech Industrial Park
                                        Xinyu City, Jiangxi Province
                                        People's Republic of China

                                        Attention: Peng Xiaofeng
                                        Fax: 0790-6860085

                                      -43-

<PAGE>

                                        FOUNDER:

                                        PENG XIAOFENG

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        No. 18 Xizang Mid-Road
                                        Harbor Ring Plaza
                                        Shanghai 200001

                                      -44-

<PAGE>

                                        INVESTOR:

                                        FINANCIERE NATEXIS SINGAPORE 4 PTE, LTD.

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin)
                                        Fax: (86) 21-6217-3742

                                        INVESTOR:
                                        DECATUR OVERSEAS CORPORATION

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin) or Nicolazo
                                                   De Barmon, Gael
                                        Fax: (86) 21-6217-3742

                                      -45-

<PAGE>

                                        INVESTOR THROUGH MANDATORY EXCHANGE OF
                                        EXCHANGEABLE NOTE:

                                        BRILLIANT EVER INVESTMENTS LIMITED

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: 852-2877-6852

                                        INVESTOR THROUGH MANDATORY EXCHANGE OF
                                        EXCHANGEABLE NOTE:

                                        BOUNDLESS FUTURE INVESTMENT LIMITED

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: 852-2877-6852

                                      -46-
<PAGE>

                             SCHEDULE OF DEFINITIONS

"2006 BUSINESS PLAN AND BUDGET" has the meaning set forth in Section 3.9.

"2006 AUDITED INCOME STATEMENT" means the consolidated income statement of the
Company Group for the financial year ending December 31, 2006 audited and
approved by the Auditor in conformity with IFRS or US GAAP (which shall be the
same as the relevant accounting standards used in connection with the Company's
Qualified IPO).

"2006 NET EARNINGS" means the US Dollar equivalent (based on the then applicable
daily USD/CNY exchange rate set by the People's Bank of China and published by
the State Administration of Foreign Exchange at www.safe.gov.cn for the Business
Day immediately prior to December 31, 2006, rounded to the nearest ten
thousandth USD) of the Net Earnings (as defined below) of the Company Group that
is stated in Renminbi as determined from the 2006 Audited Income Statement.

"2007 AUDITED INCOME STATEMENT" means the consolidated income statement of the
Company Group for the financial year ending December 31, 2007 audited and
approved by the Auditor in conformity with IFRS or US GAAP (which shall be the
same as the relevant accounting standards used in connection with the Company's
Qualified IPO).

"2007 NET EARNINGS" means the US Dollar equivalent (based on the then applicable
daily USD/CNY exchange rate set by the People's Bank of China and published by
the State Administration of Foreign Exchange at www.safe.gov.cn for the Business
Day immediately prior to December 31, 2007, rounded to the nearest ten
thousandth USD) of the Net Earnings (as defined below) of the Company Group that
is stated in Renminbi as determined from the 2007 Audited Income Statement.

"AUDITOR" means an independent accounting firm duly appointed by the Board of
Directors to serve as the Company's auditor, being one of the "Big-4"
international accounting firms.

"ANCILLARY AGREEMENTS" means, collectively, the Right of First Refusal and
Co-Sale Agreement, the Registration Rights Agreement, and any other document or
agreement contemplated by this Agreement.

"AFFILIATE" means, with respect to any given Person, a Person that Controls, is
Controlled by, or is under common Control with the given Person.

"AGREEMENT" has the meaning ascribed to it in the preamble.

"ANNUAL BUSINESS PLAN AND BUDGET" means the annual business plan and budget of
the Company and/or the PRC Subsidiary, as may be amended from time to time.

"APPLICABLE LAW" means, with respect to any Person, all applicable provisions of
all (a) constitutions, treaties, statutes, laws (including the common law),
codes, rules, regulations, ordinances or orders of any Governmental Authority,
(b) Governmental Approvals and (c) orders, decisions, injunctions, judgments,
awards and decrees of or agreements with any Governmental Authority.

"BOARD INFORMATION" means the meaning set forth in Section 9.6.

"BOOKS AND RECORDS" has the meaning set forth in Section 3.10.

"BUSINESS DAY" means any day other than a Saturday, Sunday or other day on which
commercial banks

                                     -DS 1-

<PAGE>

in the PRC, Hong Kong or New York are authorized or required by law or
governmental order to close.

"BUSINESS OR CONDITIONS OF THE COMPANY GROUP" means the business, condition
(financial or otherwise), results of operation and assets and properties of the
Company Group taken as a whole.

"CENTER" means the Hong Kong International Arbitration Centre.

"CLOSING" has the meaning set forth in Section 2.2.

"COMPANY" has the meaning ascribed to it in the preamble.

"COMPANY GROUP" means the Company and all Group Companies, taken together.

"COMPANY OPTION PLAN" means an employee stock option plan to be established by
the Company prior to Closing substantially in the form attached hereto as
Exhibit I pursuant to which stock options will be granted out of the Company
Option Pool.

"COMPANY OPTION POOL" means an aggregate of 7,958,000 Ordinary Shares which
shall be reserved prior to the Closing, representing up to ten percent (10%) of
the total number of issued and outstanding shares of the Company on an as
converted and fully diluted basis immediately after the Closing, as may be
adjusted from time to time pursuant to the Company Option Plan, to be issued to
the Key Persons, officers, directors, consultants, employees or other service
providers of the Company from time to time pursuant to the Company Option Plan.

"COMPETITOR" means any Person that may be reasonably deemed to be engaged in any
business that develops, manufactures or produces solar grade silicon ingots and
wafers.

"CONTRACT" means any agreement, arrangement, bond, commitment, franchise,
indemnity, indenture, instrument, lease, license or binding understanding,
whether or not in writing.

"CONTROL" means, when used with respect to any Person, the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms
"Controlling" and "Controlled" have meanings correlative to the foregoing.

"CONVERSION RATE" means the effective conversion rate, initially at 1:1 and
subject to adjustment as provided in Section 2.4, at which the Preferred Shares
are converted into Ordinary Shares in accordance with the Memorandum and
Articles.

"CONVERSION SHARES" means shares issuable upon conversion of the Preferred
Shares issued under this Agreement or upon exercise of the Warrants.

"DISCLOSURE SCHEDULE" has the meaning set forth in Article 3.

"ENVIRONMENT LAWS" means any applicable present national, territorial,
provincial, foreign or local law, common law doctrine, rule, order, decree,
judgment, injunction or regulation relating to environmental matters, including
those pertaining to land use, air, soil, surface water, ground water (including
the protection, cleanup, removal, remediation or damage thereof), public or
employee health or safety, together with any other laws (national, territorial,
provincial, foreign or local) relating to emissions, discharges, releases or
threatened releases of any pollutant or contaminant including without
limitation,

                                     -DS 1-

<PAGE>

medical, chemical, biological, biohazardous or radioactive waste and materials,
into ambient air, land, surface water, ground water, personal property or
structures.

"EQUITY SECURITIES" means any Ordinary Shares or warrants, options and rights
exercisable for Ordinary Shares and instruments convertible or exchangeable for
Ordinary Shares, including, without limitation, the Preferred Shares.

"EXCHANGEABLE NOTES" means the notes issued by the Company on July 21, 2006 to
Brilliant Ever Investments Limited and Boundless Future Investment Limited, each
exchangeable into the Series A-1 Preferred Shares upon the Closing.

"FINAL OWNERSHIP" has the meaning ascribed to it in Section 2.4(i) hereof.

"FINANCING TERMS" has the meaning ascribed to it in Section 8.1 hereof.

"FOLLOW-ON FINANCING" means the issuance of shares of the Company's capital
stock in a private placement prior to the Qualified IPO of up to 20,420,000
preferred shares with a per share price of no less than US$5.00 and an initial
conversion rate of 1:1.

"FOUNDER" has the meaning ascribed to it in the preamble.

"GOVERNMENTAL AUTHORITY" means any court, tribunal, arbitrator, authority,
agency, commission, official or other instrumentality of the PRC, any foreign
country or any domestic or foreign state, county, city or other political
subdivision including but not limited to MOFCOM and SAIC and their respective
local and provincial branches or departments.

"GROUP COMPANY" means a Person (other than a natural person) that is a
Subsidiary of the Company.

"GUARANTEED 2006 NET EARNINGS" means the guaranteed Net Earnings of the Company
Group for the financial ending December 31, 2006, being an amount that is
US$30,000,000.

"GUARANTEED 2007 NET EARNINGS" means the guaranteed Net Earnings of the Company
Group for the financial ending December 31, 2007, being an amount that is
US$100,000,000.

"HAZARDOUS MATERIALS" means any chemical pollutant, contaminant, pesticide,
petroleum or petroleum product or by-product, radioactive substance, solid
waste, special, dangerous or toxic waste, hazardous or toxic substance, chemical
or material regulated, limited or prohibited under any Environmental Law.

"HONG KONG" means shall mean the Special Administration Region of Hong Kong.

"IFRS" means the International Financial Reporting Standards promulgated by the
International Accounting Standards Board (IASB) (which includes standards and
interpretations approved by the IASB and International Accounting Principles
issued under previous constitutions), together with its pronouncements thereon
from time to time, and applied on a consistent basis.

"IMPROVEMENT" has the meaning set forth in Section 3.17.

"INDEMNITEE" has the meaning set forth in Section 10.2.

"INDEMNIFIABLE LOSS" has the meaning set forth in Section 10.2.

                                     -DS 1-

<PAGE>

"INITIAL CONVERSION RATE" means the initial conversion rate at which the
Preferred Share are converted into Ordinary Shares, being a ratio that is 1:1.

"INITIAL OWNERSHIP" has the meaning set forth in Section 2.1(iii).

"INTELLECTUAL PROPERTY" means any and all (i) patents, all patent rights and all
applications therefor and all reissues, reexaminations, continuations,
continuations-in-part, divisions, and patent term extensions thereof, (ii)
inventions (whether patentable or not), discoveries, improvements, concepts,
innovations and industrial models, (iii) registered and unregistered copyrights,
copyright registrations and applications, author's rights and works of
authorship (including artwork of any kind and software of all types in whatever
medium, inclusive of computer programs, source code, object code and executable
code, and related documentation), (iv) URLs, web sites, web pages and any part
thereof, (v) technical information, know-how, trade secrets, drawings, designs,
design protocols, specifications for parts and devices, quality assurance and
control procedures, design tools, manuals, research data concerning historic and
current research and development efforts, including the results of successful
and unsuccessful designs, databases and proprietary data, (vi) proprietary
processes, technology, engineering, formulae, algorithms and operational
procedures, (vii) trade names, trade dress, trademarks, domain names, and
service marks, and registrations and applications therefor, and (viii) the
goodwill of the business symbolized or represented by the foregoing, customer
lists and other proprietary information and common-law rights.

"INVESTOR" or "INVESTORS" has the meaning ascribed to it in the preamble.

"INVESTOR DIRECTOR" has the meaning set forth in Section 9.6(i).

"KEY PERSONS" means Peng Xiaofeng, Shao Yonggan, Zhu Liangbao and all the other
Persons listed as Optionees in Exhibit I hereof, other than the holders of the
Exchangeable Notes.

"KNOWLEDGE" of a Party means the current actual knowledge of the executive
officers of such Party principally responsible for the management of the
business (including with respect to Intellectual Property) of such Party and its
Subsidiaries.

"LAND USE RIGHTS" has the meaning set forth in Section 3.17.

"LEASE" has the meaning set forth in Section 3.17.

"LICENSES" means all licenses, permits, certificates of authority,
authorizations, approvals, registrations, franchises and similar consents
granted or issued by any Governmental Authority, including but not limited to
the Licenses set forth in Section 3.6 of the Disclosure Schedule and the
business licenses of the applicable Group Companies.

"MATERIAL ADVERSE CHANGE" has the meaning set forth in Section 5.22.

"MATERIAL ADVERSE EFFECT" means any (a) event, occurrence, fact, condition,
change or development that has had a material adverse effect on the Business or
Conditions of the Company Group, or (b) material impairment of the ability of
any member of the Company Group to perform their respective material obligations
hereunder or under each of the Ancillary Agreements, as applicable.

"MATERIAL ADVERSE EVENT" means any change, event or effect that (i) is or would
be materially adverse to the Business or Conditions of the Company Group or (ii)
is or would materially impair the validity or enforceability of this Agreement
against the Company, the PRC Subsidiary or the Founder or (iii) is or

                                     -DS 1-

<PAGE>

would materially and adversely affect the Company, the PRC Subsidiary or the
Founder's ability to perform its obligations under this Agreement, any Ancillary
Agreements or in connection with the transactions contemplated hereunder or
thereunder. "MATERIAL CONTRACT" means, with respect to any Person, any
outstanding Contract material to the business of such Person as of or after the
date hereof and includes, but is not limited to, those Contracts deemed material
by Section 3.15(v).

"MATERIAL LICENSES" means the Licenses set forth in Section 3.6 of the
Disclosure Schedule.

"MEMORANDUM AND ARTICLES" means the amended and restated memorandum of
association and the articles of association of the Company, as amended from time
to time, attached hereto as Exhibit A.

"MOFCOM" means the Ministry of Commerce or, with respect to any matter to be
submitted for examination and approval by the Ministry of Commerce, any
government entity which is similarly competent to examine and approve such
matter under the laws of the PRC.

"MORTGAGE" has the meaning set forth in Section 3.17.

"NET EARNINGS" shall mean the consolidated and normalized positive profit after
tax (less one-off, non-recurring and extraordinary items as well as stock
compensation charges, if any, but plus any governmental grants and subsidies)
attributable to the shareholders of the Company Group as audited by the Auditor
in accordance with IFRS or US GAAP (which shall be the same as the relevant
accounting standards used in connection with the Company's Qualified IPO).

"NEW SECURITIES" means any Equity Securities of the Company whether now or
hereafter authorized; provided that the term "New Securities" does not include
(i) securities issued upon conversion of the Preferred Shares; (ii) the
Preferred Shares issuable upon the exercise of the Warrants and securities
issued upon conversion of such Preferred Shares; (iii) Ordinary Shares issuable
to the Key Persons, officers, directors, consultants, employees or other service
providers of the Company pursuant to the Company Option Plan; (iv) securities
issued in a Qualified IPO; (v) securities issued in connection with any stock
split, stock dividend or re-capitalization of the Company; and (vi) securities
issued pursuant to the acquisition of another business entity or business
segment of any such entity by the Company by merger, purchase of substantially
all the assets or other reorganization whereby the Company will own not less
than fifty-one percent (51%) of the voting power of such business entity or
business segment of any such entity.

"ORDINARY SHARES" has the meaning ascribed to it in Section 3.2(i).

"ORDINARY SHARE EQUIVALENTS" means warrants, options and rights exercisable for
Ordinary Shares and instruments convertible or exchangeable for Ordinary Shares,
including, without limitation, the Preferred Shares.

"PERSON" means any individual, corporation, partnership, limited partnership,
proprietorship, association, limited liability company, firm, trust, estate or
other enterprise or entity.

"PRC" means the People's Republic of China, but solely for the purposes of this
Agreement, excluding the Hong Kong Special Administrative Region, Macau Special
Administrative Region and Taiwan.

"PRC SUBSIDIARY" has the meaning ascribed to it in the preamble.

                                     -DS 1-

<PAGE>

"PREFERRED SHARES" has the meaning set forth in Section 3.2(i).

"PROPRIETARY ASSETS" means all patents, patent applications, trademarks, service
marks, trade names, copyrights, moral rights, maskworks, trade secrets,
confidential and proprietary information, compositions of matter, formulas,
designs, proprietary rights, know-how and processes of a company.

"QUALIFIED EXCHANGE" means (i) the New York Stock Exchange or the Nasdaq Stock
Market's National Market System, or (ii) any other exchange of recognized
international reputation and standing duly approved by the Company's Board of
Directors, including the affirmative vote of the Investor Director.

"QUALIFIED IPO" means an initial public offering on a Qualified Exchange that
values the Company at no less than US$1,210,000,000 immediately prior to the
initial public offering with a per share offering price of no less than US$11.00
and that results in aggregate net proceeds to the Company of at least
US$300,000,000.

"REPORT DATE" has the meaning set forth in Section 3.12.

"REVIEW REPORT" has the meaning set forth in Section 3.12.

"SAFE" means the Sate Administration of Foreign Exchange of the PRC, and any PRC
governmental body that is a successor thereto.

"SAIC" means the State Administration of Industry and Commerce or, with respect
to the issuance of any business license or filing or registration to be effected
with or by the State Administration of Industry and Commerce, any government
entity which is similarly competent to issue such business license or accept
such filing or registration under the laws of the PRC.

"SECURITIES" has the meaning set forth in Section 4.1(ii).

"SECURITIES ACT" means the U.S. Securities Act of 1933, as amended and
interpreted from time to time.

"SENIOR MANAGER" means, with respect to any member of the Company Group, the
chief executive officer, the chief financial officer, the chief operating
officer, the chief technology officer and the vice presidents of such company.

"SERIES A-1 PREFERRED SHARES" has the meaning set forth in Section 3.2(i).

"SERIES A-2 PREFERRED SHARES" has the meaning set forth in Section 3.2(i).

"SUBSIDIARY" means, with respect to any Person, a corporation or other entity
that is, directly or indirectly, controlled by such Person, by the possession of
the power to direct or cause the direction of the management and policies of
first mentioned Person, whether through the ownership of voting securities or
equity interest, by contract or otherwise.

"SUBSCRIPTION PRICE" has the meaning set forth in Section 2.1(iii).

"TAX" and "TAXES" means and includes any and all taxes, including any and all
income, gross receipts, franchise, license, severance, stamp, occupation,
premium, environmental, customs duties, capital stock, profits, unemployment,
disability, real property, personal property, transfer, registration, value
added, estimated, sales, use, excise, withholding, employment, payroll, social
security taxes, and similar assessments, charges, and fees (including interest,
penalties and additions to such taxes, penalties for

                                     -DS 1-

<PAGE>

failure to file or late filing of any return, report or other filing, and any
interest in respect of such penalties and additions) imposed or assessed by any
federal, state or local taxing authority, including the Cayman Islands, Hong
Kong or the PRC (or any political subdivision thereof or therein).

"TAX RETURNS" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

"US GAAP" means generally accepted accounting principles in the United States,
consistently applied.

"WARRANT" or "WARRANTS" means the Warrant(s) the Company agrees to issue and
sell to the Investors at the Closing, the terms and conditions of which are set
forth in the Warrant Purchase Agreement substantially in the form attached
hereto as Exhibit B.

                                     -DS 1-

<PAGE>

                               DISCLOSURE SCHEDULE

                                     -DS 1-

<PAGE>

                                   SCHEDULE A

                              INVESTORS AT CLOSING

<TABLE>
<CAPTION>
                                                                                               SUBSCRIPTION
                                                                                              PRICE/AMOUNT OF
                                                                      NUMBER OF PREFERRED   EXCHANGEABLE NOTES
        NAME                             ADDRESS                       SHARES SUBSCRIBED         CONVERTED
        ----           -------------------------------------------   --------------------   ------------------
<S>                    <C>                                           <C>                    <C>
Financiere Natexis     Natexis Private Equity Asia Limited           1,128,571 (Series      US$5,000,000
Singapore 4 Pte Ltd.   Suite 1808, 18/F Westgate Mall Plaza          A-2)
                       1038 Nanjing West Road, Shanghai, China
                       200041

                       Attention: Gang Wang (Kevin)

Decatur Overseas       Natexis Private Equity Asia Limited           451,429 (Series A-2)   US$2,000,000
Corporation            Suite 1808, 18/F Westgate Mall Plaza
                       1038 Nanjing West Road
                       Shanghai, China 200041

                       Attention:  Gang Wang  (Kevin) or  Nicolazo
                       De Barmon, Gael

Brilliant Ever         Suite 2302-3, 23/F Great Eagle Centre         2,000,000 (Series      US$5,333,333
Investments Limited    23 Harbour Road                               A-1)
                       Wanchai
                       Hong Kong

                       Attention: Ms Clara Chan

Boundless Future       Suite 2302-3, 23/F Great Eagle Centre         1,000,000 (Series      US$2,666,667
Investment Limited     23 Harbour Road                               A-1)
                       Wanchai
                       Hong Kong

                       Attention: Ms Clara Chan
</TABLE>

                                     -SCH A-

<PAGE>

                                    EXHIBIT A

                  AMENDED AND RESTATED MEMORANDUM AND ARTICLES

                                     -EXH A-

<PAGE>

                                    EXHIBIT B

                           WARRANT PURCHASE AGREEMENT

                                     -EXH B-

<PAGE>

                                    EXHIBIT C

                          2006 BUSINESS PLAN AND BUDGET

                                     -EXH C-

<PAGE>

                                    EXHIBIT D

          CONFIDENTIALITY, ASSIGNMENT OF INVENTIONS AND NON-COMPETITION
                                    AGREEMENT

                                     -EXH D-

<PAGE>

                                    EXHIBIT E

                  RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

                                     -EXH E-

<PAGE>

                                    EXHIBIT F

                 OPINION OF THE COMPANY'S CAYMAN ISLANDS COUNSEL

                                     -EXH F-
<PAGE>

                                    EXHIBIT G

                      OPINION OF THE COMPANY'S PRC COUNSEL

                                    -EXH G-

<PAGE>

                                    EXHIBIT H

                          REGISTRATION RIGHTS AGREEMENT

                                    -EXH H-

<PAGE>

                                    EXHIBIT I

                               COMPANY OPTION PLAN

                                    -EXH I-

<PAGE>

                                                               EXECUTION VERSION

                                  AMENDMENT TO

                            SHARE PURCHASE AGREEMENT

THIS AMENDMENT (the "AMENDMENT"), dated as of September 15, 2006, is made to the
SHARE PURCHASE AGREEMENT (the "SERIES A SHARE PURCHASE AGREEMENT") dated as of
July 28, 2006 by and among LDK Solar Co., Ltd., a company organized and existing
under the laws of the Cayman Islands (the "COMPANY"), Jiangxi LDK Solar Hi-Tech
Co., Ltd. (Chinese Characters LDK Chinese Characters), a company organized and
existing under the laws of the PRC (the "PRC SUBSIDIARY"), Mr. Peng Xiaofeng
(the "FOUNDER") and each of the holders of the Series A-1 Preferred Shares and
the Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED SHARES").

                                    RECITALS

A.   The Company and certain investors are parties to the Series B Preferred
     Shares Purchase Agreement, dated as of September 15, 2006 (the "SERIES B
     SHARE PURCHASE AGREEMENT"), pursuant to which such investors (collectively,
     the "SERIES B PREFERRED SHAREHOLDERS") have agreed to subscribe for a
     certain number of Series B Preferred Shares of the Company (the "SERIES B
     PREFERRED SHARES") upon the terms and subject to the conditions contained
     therein.

B.   The parties intend that the Series A Share Purchase Agreement shall be
     amended to provide for a concerted ownership adjustment mechanism for both
     the Series A Preferred Shares and the Series B Preferred Shares.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
agree as follows:

1.   Defined Terms. Unless otherwise defined herein, capitalized terms used
     herein which are not defined in the Series A Share Purchase Agreement, as
     amended hereby, are used herein as therein defined.

2.   Amendment to Section 2.1(iii). Section 2.1(iii) of the Series A Share
     Purchase Agreement is hereby amended by deleting the last two sentences in
     such section and substituting in lieu thereof the following sentences:

     "It is understood that the aggregate number of Series A-1 Preferred Shares
     and Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED
     SHARES") to be issued by the Company at the Closing shall be 4,580,000
     shares, representing a 5.230% ownership in the Company (the "INITIAL
     OWNERSHIP") immediately after the closing of the issuance of the Series B
     Preferred Shares of the Company (the "SERIES B PREFERRED SHARES") pursuant
     to the Series B Preferred Shares Purchase Agreement (the "SERIES B SHARE
     PURCHASE AGREEMENT"), dated as of September 15, 2006, by and among the
     Company, the PRC Subsidiary, the Founder and certain purchasers of the
     Series B Preferred Shares (the "SERIES B Financing"). For the avoidance of
     doubt, the calculation of the Initial Ownership hereunder and any
     adjustment to such ownership under Section 2.4

<PAGE>

     shall be based on the total issued and outstanding 75,000,000 plus the
     total issued and outstanding Series A Preferred Shares and the Series B
     Preferred Shares, all on an as-converted basis, as of the date of the
     closing of the Series B Financing or the date of adjustment, as the case
     may be, and in each case as provided in the Memorandum and Articles,
     without consideration of any shares issued pursuant to the Company Option
     Plan."

3.   Amendment of Section 2.4. Section 2.4 of the Series A Share Purchase
     Agreement is hereby amended by deleting the whole section in its entirety
     and substituting in lieu thereof the following provisions:

     "2.4 Ownership Adjustments

          (ii) Following the issue by the Auditor of the 2006 Audited Income
               Statement:

               (1)  if the 2006 Net Earnings are equal to or more than the
                    Guaranteed 2006 Net Earnings, the final ownership of the
                    Investors in the Company after adjustment (the "FINAL
                    OWNERSHIP") shall remain unchanged as the Initial Ownership
                    of the Investors in the Company.

               (2)  if the 2006 Net Earnings are less than the Guaranteed 2006
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2006 Audited
                    Income Statement:

                               GE06
                    FO1 = IO x ----
                               AE06

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO1 shall mean the Final
                    Ownership of the Investors after adjustment in accordance
                    with this Section 2.4(i)(b); (2) IO shall mean the Initial
                    Ownership of the Investors in the Company; (3) GE06 shall
                    mean the Guaranteed 2006 Net Earnings of the Company Group,
                    being an amount that is US$30,000,000; and (4) AE06 shall
                    mean the actual 2006 Net Earnings.

          (iii) Following the issue by the Auditor of the 2007 Audited Income
               Statement:

               (1)  If the 2007 Net Earnings are equal to or more than the
                    Guaranteed 2007 Net Earnings, the Final Ownership of the
                    Investors shall remain unchanged as the ownership adjusted,
                    if any, in accordance with 2.4(i)(b) above.

               (2)  if the 2007 Net Earnings are less than the Guaranteed 2007
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2007 Audited
                    Income Statement:

                                       2

<PAGE>

                                GE07
                    FO2 = FO1 x ----
                                AE07

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO2 shall mean the Final
                    Ownership of the Investors in the Company after adjustment
                    in accordance with this Section 2.4(ii)(b); (2) FO1 shall
                    mean the Final Ownership of the Investors in the Company as
                    adjusted under Section 2.4 (i)(b) above; (3) GE07 shall mean
                    the Guaranteed 2007 Net Earnings of the Company Group, being
                    an amount that is US$100,000,000; and (4) AE07 shall mean
                    the actual 2007 Net Earnings.

          (iv) To effect the ownership adjustment as set forth in Sections
               2.4(i) and (ii) above, the effective Conversion Rate of the
               Series A Preferred Shares shall be adjusted in accordance with
               the following formula:

                                   TS
               CR(A) = FO(A) x ---------
                               4,580,000

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) CR(A) shall mean the effective Conversion Rate
               of the Series A Preferred Shares at which the Series A Preferred
               Shares are converted into Ordinary Shares in accordance with this
               Section 2.4; (2) FO(A) shall mean the final ownership of the
               holders of the Series A Preferred Shares in the Company as
               adjusted according to Section 2.4(i)(b) and Section 2.4(ii)(b)
               above; and (3) TS shall mean the total number of Ordinary Shares
               to be issued and outstanding, on an as-converted basis, as of the
               date of the closing of the Series B Financing or the date of
               adjustment, as the case may be, which shall be equal to the
               number derived from the following formula:

                      75,000,000
               TS = -------------
                    1-FO(A)-FO(B)

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) FO(A) shall mean the Final Ownership of the
               Investors in the Company as adjusted according to Section
               2.4(i)(b) and Section 2.4(ii)(b) above; and (2) FO(B) shall mean
               the final ownership of the holders of the Series B Preferred
               Shares as adjusted according to Section 2.4 of the Series B Share
               Purchase Agreement.

          (v)  Notwithstanding the above, the parties hereto may agree from time
               to time, based on legal advice mutually acceptable to the Company
               and the Investors, on any other method to effect the adjustment
               to the Final Ownership of the Investors to be equal to the
               amounts derived from the formulas set forth in Section 2.4(i)(b)
               and Section 2.4(ii)(b) above.

                                       3

<PAGE>

          (vi) Notwithstanding anything to the contrary, the Investors agree not
               to make any adjustment to the ownership (a) with respect to the
               2006 Audited Income Statement under Section 2.4(i), if the 2006
               Net Earnings is no less than US$28,500,000; and (b) with respect
               to the 2007 Audited Income Statement under Section 2.4(ii), if
               the 2007 Net Earnings is no less than US$95,000,000.

          (vii) For the avoidance of doubt, the Investors' Final Ownership after
               any adjustment made under this Section 2.4 shall not be lower
               than their ownership before such adjustment, and no adjustment to
               the Investors' ownership will be made according to Section
               2.4(ii)(b) hereof if a Qualified IPO consummates in 2007."

4.   Counterparts. This Amendment may be executed by one or more of the parties
     hereto on any number of separate counterparts and all such counterparts
     shall be deemed to be one and the same instrument. Each party hereto
     confirms that any facsimile copy of such party's executed counterpart of
     this Amendment (or its signature page thereof) shall be deemed to be an
     executed original thereof.

5.   Effectiveness. This Amendment shall become effective as of the date first
     written above.

6.   Continuing Effect. This Amendment is made under Section 10.9 of the Series
     A Share Purchase Agreement. Except as otherwise described in this
     Amendment, the terms and conditions of the Series A Share Purchase
     Agreement shall remain in full force and effect.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK.]

                                       4

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date first written above.

                                        COMPANY:

                                        LDK SOLAR CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        No. 18 Xizang Mid-Road
                                        Harbor Ring Plaza
                                        Shanghai 200001

                                        Attention: Mr. Peng Xiaofeng & Mr. Shao
                                                   Yonggang
                                        Facsimile: (86-21) 6350 8707

                                        PRC SUBSIDIARY:

                                        JIANGXI LDK SOLAR HI-TECH CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        Hi-tech Industrial Park
                                        Xinyu City, Jiangxi Province
                                        People's Republic of China

                                        Attention: Mr. Peng Xiaofeng
                                        Facsimile: (0790) 6860-085

                                       5

<PAGE>

                                        FOUNDER:

                                        PENG XIAOFENG

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                       6

<PAGE>

                                        INVESTOR:

                                        FINANCIERE NATEXIS SINGAPORE 4 PTE, LTD.

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin)
                                        Fax: (86) 21-6217-3742

                                        INVESTOR:

                                        DECATUR OVERSEAS CORPORATION

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin) or Nicolazo
                                        De Barmon, Gael
                                        Fax: (86) 21-6217-3742

                                       7

<PAGE>

                                        BRILLIANT EVER INVESTMENTS LIMITED

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: 852-2877-6852

                                        BOUNDLESS FUTURE INVESTMENT LIMITED

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: 852-2877-6852

                                       8

<PAGE>

                                                               EXECUTION VERSION

                             SUPPLEMENTAL AGREEMENT

THIS SUPPLEMENTAL AGREEMENT (the "SUPPLEMENTAL AGREEMENT"), dated as of December
15, 2006, is made to: (1) the Share Purchase Agreement, dated as of July 28,
2006, by and among LDK Solar Co., Ltd., a company organized and existing under
the laws of the Cayman Islands (the "COMPANY"), Jiangxi LDK Solar Hi-Tech Co.,
Ltd. (Chinese Characters LDK Chinese Characters), a company organized and
existing under the laws of the PRC (the "PRC SUBSIDIARY"), Mr. Peng Xiaofeng
(the "FOUNDER") and each of the holders of the Series A-1 Preferred Shares and
the Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED SHARES"),
as amended by the Amendment to the Share Purchase Agreement, dated as of
September 15, 2006, by and among the Company, the PRC Subsidiary, the Founder
and each of the holders of the Series A Preferred Shares (as amended, the
"SERIES A SHARE PURCHASE AGREEMENT"); and (2) the Series B Preferred Shares
Purchase Agreement, dated as of September 15, 2006, by and among the Company,
the PRC Subsidiary, the Founder and each of the holders of the Series B
Preferred Shares, as amended by the Amendment to the Series B Preferred Shares
Purchase Agreement, dated as of September 26, 2006 (as amended, "SERIES B SHARE
PURCHASE AGREEMENT").

                                    RECITALS

A.   The Company and certain investors are parties to the Series C Preferred
     Shares Purchase Agreement, dated as of December 15, 2006 (the "SERIES C
     SHARE PURCHASE AGREEMENT"), pursuant to which such investors (collectively,
     the "SERIES C PREFERRED SHAREHOLDERS") have agreed to subscribe for certain
     number of Series C Preferred Shares of the Company (the "SERIES C PREFERRED
     SHARES") upon the terms and subject to the conditions contained therein.

B.   The parties intend that a supplemental agreement be made to the Series A
     Share Purchase Agreement and the Series B Share Purchase Agreement to
     provide for a concerted ownership adjustment mechanism for all the Series A
     Preferred Shares, the Series B Preferred Shares and the Series C Preferred
     Shares.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
agree as follows:

1.   Defined Terms. Unless otherwise defined herein, capitalized terms used
     herein which are not defined in the Series A Share Purchase Agreement or
     the Series B Share Purchase Agreement, each as amended hereby, are used
     herein as therein defined.

2.   Amendment to Section 2.1(iii) of the Series A Share Purchase Agreement.
     Section 2.1(iii) of the Series A Share Purchase Agreement is hereby amended
     by deleting the last two sentences in such section and substituting in lieu
     thereof the following sentences:

     "It is understood that the aggregate number of Series A-1 Preferred Shares
     and Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED
     SHARES") to be issued by the Company at the Closing shall be 4,580,000
     shares, representing a 5.056% ownership

<PAGE>

     in the Company (the "INITIAL OWNERSHIP") immediately after the closing of
     the issuance of the Series C Preferred Shares of the Company (the "SERIES C
     PREFERRED SHARES") pursuant to the Series C Preferred Shares Purchase
     Agreement (the "SERIES C SHARE PURCHASE AGREEMENT"), dated as of December
     15, 2006, by and among the Company, the PRC Subsidiary, the Founder and
     certain purchasers of the Series C Preferred Shares (the "SERIES C
     FINANCING"). For the avoidance of doubt, the calculation of the Initial
     Ownership hereunder and any adjustment to such ownership under Section 2.4
     shall be based on the sum of the total number of the issued and outstanding
     Ordinary Shares (being 75,000,000) and the total number of issued and
     outstanding Series A Preferred Shares, Series B Preferred Shares and Series
     C Preferred Shares, all on an as-converted basis, as of the date of the
     closing of the Series C Financing or the date of adjustment, as the case
     may be, and in each case as provided in the Memorandum and Articles,
     without consideration of any shares issued pursuant to the Company Option
     Plan."

3.   Amendment to Section 2.4 of the Series A Share Purchase Agreement. Section
     2.4 of the Series A Share Purchase Agreement is hereby amended by deleting
     the section in its entirety and substituting in lieu thereof the following
     provisions:

     "2.4 Ownership Adjustments

          (viii) Following the issue by the Auditor of the 2006 Audited Income
               Statement:

               (1)  if the 2006 Net Earnings are equal to or more than the
                    Guaranteed 2006 Net Earnings, the final ownership of the
                    Investors in the Company after adjustment (the "FINAL
                    OWNERSHIP") shall remain unchanged as the Initial Ownership
                    of the Investors in the Company.

               (2)  if the 2006 Net Earnings are less than the Guaranteed 2006
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2006 Audited
                    Income Statement:

                               GE06
                    FO1 = IO x ----
                               AE06

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO1 shall mean the Final
                    Ownership of the Investors after adjustment in accordance
                    with this Section 2.4(i)(b); (2) IO shall mean the Initial
                    Ownership of the Investors in the Company; (3) GE06 shall
                    mean the Guaranteed 2006 Net Earnings of the Company Group,
                    being an amount that is US$30,000,000; and (4) AE06 shall
                    mean the actual 2006 Net Earnings.

          (ix) Following the issue by the Auditor of the 2007 Audited Income
               Statement:

                                       2

<PAGE>

               (1)  If the 2007 Net Earnings are equal to or more than the
                    Guaranteed 2007 Net Earnings, the Final Ownership of the
                    Investors shall remain unchanged as the ownership adjusted,
                    if any, in accordance with 2.4(i)(b) above.

               (2)  if the 2007 Net Earnings are less than the Guaranteed 2007
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2007 Audited
                    Income Statement:

                                GE07
                    FO2 = FO1 x ----
                                AE07

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO2 shall mean the Final
                    Ownership of the Investors in the Company after adjustment
                    in accordance with this Section 2.4(ii)(b); (2) FO1 shall
                    mean the Final Ownership of the Investors in the Company as
                    adjusted under Section 2.4 (i)(b) above; (3) GE07 shall mean
                    the Guaranteed 2007 Net Earnings of the Company Group, being
                    an amount that is US$100,000,000; and (4) AE07 shall mean
                    the actual 2007 Net Earnings.

          (x)  To effect the ownership adjustment as set forth in Sections
               2.4(i) and (ii) above, the effective Conversion Rate of the
               Series A Preferred Shares shall be adjusted in accordance with
               the following formula:

                                   TS
               CR(A) = FO(A) x ---------
                               4,580,000

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) CR(A) shall mean the effective Conversion Rate
               of the Series A Preferred Shares at which the Series A Preferred
               Shares are converted into Ordinary Shares in accordance with this
               Section 2.4; (2) FO(A) shall mean the final ownership of the
               holders of the Series A Preferred Shares in the Company as
               adjusted according to Section 2.4 hereof; and (3) TS shall mean
               the total number of Ordinary Shares to be issued and outstanding,
               on an as-converted basis, as of the date of the closing of the
               Series C Financing or the date of adjustment, as the case may be,
               which shall be equal to the number derived from the following
               formula:

                         75,000,000
               TS = -------------------
                    1-FO(A)-FO(B)-FO(C)

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) FO(A) shall mean the Final Ownership of the
               Investors in the Company as adjusted according to Section 2.4
               hereof; (2) FO(B) shall mean the final ownership of the holders
               of the Series B Preferred Shares as adjusted according to Section
               2.4 of the Series B Share Purchase Agreement; and (3) FO(C) shall
               mean the final ownership of the holders

                                       3

<PAGE>

               of the Series C Preferred Shares as adjusted according to Section
               2.4 of the Series C Share Purchase Agreement.

          (xi) Notwithstanding the above, the parties hereto may agree from time
               to time, based on legal advice mutually acceptable to the Company
               and the Investors, on any other method to effect the adjustment
               to the Final Ownership of the Investors to be equal to the
               amounts derived from the formulas set forth in Section 2.4(i)(b)
               and Section 2.4(ii)(b) above.

          (xii) Notwithstanding anything to the contrary, the Investors agree
               not to make any adjustment to the ownership (a) with respect to
               the 2006 Audited Income Statement under Section 2.4(i), if the
               2006 Net Earnings is no less than US$28,500,000; and (b) with
               respect to the 2007 Audited Income Statement under Section
               2.4(ii), if the 2007 Net Earnings is no less than US$95,000,000.

          (xiii) For the avoidance of doubt, the Investors' Final Ownership
               after any adjustment made under this Section 2.4 shall not be
               lower than their ownership before such adjustment, and no
               adjustment to the Investors' ownership will be made according to
               Section 2.4(ii)(b) hereof if a Qualified IPO consummates in
               2007."

4.   Amendment to Section 2.1(iii) of the Series B Share Purchase Agreement.
     Section 2.1(iii) of the Series B Share Purchase Agreement is hereby amended
     by deleting the last two sentences in such section and substituting in lieu
     thereof the following sentences:

     "It is understood that the aggregate number of Series B Preferred Shares
     (the "SERIES B PREFERRED SHARES") to be issued by the Company at the
     Closing shall be 8,000,000 shares, representing a 8.832% ownership in the
     Company (the "INITIAL OWNERSHIP") immediately after the closing of the
     issuance of the Series C Preferred Shares of the Company (the "SERIES C
     PREFERRED SHARES") pursuant to the Series C Preferred Shares Purchase
     Agreement (the "SERIES C SHARE PURCHASE AGREEMENT"), dated as of December
     15, 2006, by and among the Company, the PRC Subsidiary, the Founder and
     certain purchasers of the Series C Preferred Shares (the "SERIES C
     FINANCING"). For the avoidance of doubt, the calculation of the Initial
     Ownership hereunder and any adjustment to such ownership under Section 2.4
     shall be based on the sum of the total number of issued and outstanding
     Ordinary Shares (being 75,000,000) and the total number of issued and
     outstanding Series A Preferred Shares, Series B Preferred Shares and Series
     C Preferred Shares, all on an as-converted basis, as of the date of the
     closing of the Series C Financing or the date of adjustment, as the case
     may be, and in each case as provided in the Memorandum and Articles,
     without consideration of any shares issued pursuant to the Company Option
     Plan."

5.   Amendment to Section 2.4(iv) of the Series B Share Purchase Agreement.
     Section 2.4(iv) of the Series B Share Purchase Agreement is hereby amended
     by deleting the sub-section in its entirety and substituting in lieu
     thereof the following provisions:

                                       4
<PAGE>

     "(iv) To effect the ownership adjustment as set forth in Sections 2.4(i),
          (ii) and (iii) above, the applicable Conversion Rate of the Series A
          Preferred Shares and the Series B Preferred Shares shall be adjusted
          in accordance with the following formulas:

                              TS
          CR(A) = FO(A) x ---------
                          4,580,000

                              TS
          CR(B) = FO(B) x ---------
                          8,000,000

          For purposes of the foregoing formulas, the following definitions
          shall apply: (1) CR(A) shall mean the effective Conversion Rate of the
          Series A Preferred Shares at which the Series A Preferred Shares are
          converted into Ordinary Shares in accordance with this Section 2.4;
          (2) CR(B) shall mean the effective Conversion Rate of the Series B
          Preferred Shares at which the Series B Preferred Shares are converted
          into Ordinary Shares in accordance with this Section 2.4; (3) FO(A)
          shall mean the final ownership of the holders of the Series A
          Preferred Shares in the Company as adjusted according to Section 2.4
          of the Series A Share Purchase Agreement; (4) FO(B) shall mean the
          Final Ownership of the Investors in the Company as adjusted according
          to Section 2.4 hereof; and (5) TS shall mean the total number of
          Ordinary Shares to be issued and outstanding, on an as-converted
          basis, as of the date of the closing of the Series C Financing or the
          date of adjustment, as the case may be, which shall be equal to the
          number derived from the following formula:

                   75,000,000
          TS = ------------------
               1-FO(A)-FO(B)-FO(C)

          For purposes of the foregoing formula, the following definitions shall
          apply: (1) FO(A) shall mean the final ownership of the holders of the
          Series A Preferred Shares in the Company as adjusted according to
          Section 2.4 of the Series A Share Purchase Agreement; (2) FO(B) shall
          mean the Final Ownership of the Investors in the Company as adjusted
          according to Section 2.4 hereof; and (3) FO(C) shall mean the final
          ownership of the holders of the Series C Preferred Shares in the
          Company as adjusted according to Section 2.4 of the Series C Share
          Purchase Agreement."

6.   Counterparts. This Supplemental Agreement may be executed by one or more of
     the parties hereto on any number of separate counterparts and all such
     counterparts shall be deemed to be one and the same instrument. Each party
     hereto confirms that any facsimile copy of such party's executed
     counterpart of this Supplemental Agreement (or its signature page thereof)
     shall be deemed to be an executed original thereof.

                                       5

<PAGE>

7.   Effectiveness. This Supplemental Agreement shall become effective as of the
     date first written above.

8.   Continuing Effect. This Supplemental Agreement is made under Section 10.9
     of the Series A Share Purchase Agreement and Section 9.9 of the Series B
     Share Purchase Agreement. Except as otherwise described in this
     Supplemental Agreement, the terms and conditions of the Series A Share
     Purchase Agreement and the Series B Share Purchase Agreement shall remain
     in full force and effect.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK.]

                                        6

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date first written above.

                                        COMPANY:

                                        LDK SOLAR CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                        Attention: Mr. Peng Xiaofeng & Mr. Shao
                                                   Yonggang
                                        Facsimile: (86-21) 6350-8707

                                        7

<PAGE>

                                        PRC SUBSIDIARY:

                                        JIANGXI LDK SOLAR HI-TECH CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        Hi-tech Industrial Park
                                        Xinyu City, Jiangxi Province
                                        People's Republic of China

                                        Attention: Mr. Peng Xiaofeng
                                        Facsimile: (0790) 6860-085

                                        8

<PAGE>

                                        FOUNDER:

                                        PENG XIAOFENG

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                        9

<PAGE>

                                        INVESTOR:

                                        FINANCIERE NATEXIS SINGAPORE 4 PTE, LTD.

                                        (As a holder of both Series A-2
                                        Preferred Shares and Series B Preferred
                                        Shares)

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin)
                                        Facsimile: (86-21) 6217-3742

                                       10

<PAGE>

                                        INVESTOR:

                                        DECATUR OVERSEAS CORPORATION

                                        (As a holder of Series A-2 Preferred
                                        Shares)

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin) or Nicolazo
                                                   De Barmon, Gael
                                        Facsimile: (86-21) 6217-3742

                                       11

<PAGE>

                                        INVESTOR:

                                        BRILLIANT EVER INVESTMENTS LIMITED

                                        (As a holder of Series A-1 Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: (852) 2877-6852

                                       12

<PAGE>

                                        INVESTOR:

                                        BOUNDLESS FUTURE INVESTMENT LIMITED

                                        (As a holder of Series A-1 Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: (852) 2877-6852

                                       13

<PAGE>

                                        INVESTOR:

                                        SHINE FIELD INVESTMENTS LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 957
                                        Offshore Incorporations Centre
                                        Road Town, Tortola, BVI

                                        c/o Petrius Lui or Ignatius Seu
                                        41st Floor Jardine House
                                        1 Connaught Place
                                        Hong Kong

                                        Attention: Petrius Lui or Ignatius Seu
                                        Facsimile: (852) 2111-3299

                                       14

<PAGE>

                                        INVESTOR:

                                        CDH SOLARFUTURE LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Lew Kiang Hua
                                            ------------------------------------
                                        Name: Lew Kiang Hua
                                        Capacity: Director

                                        Address:

                                        Level 30, Six Battery Road
                                        Singapore 049909

                                        Attention: Mr. Lew Kiang Hua
                                        Facsimile: (65) 6550 9898

                                       15

<PAGE>

                                        INVESTOR:

                                        CHF WAFER COMPANY LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Andrew Lo
                                            ------------------------------------
                                        Name: Andrew Lo
                                        Capacity: Authorized Representative

                                        Address:

                                        P.O. Box 173, Kingston Chamber
                                        Road Town, Tortola
                                        British Virgin Islands

                                        c/o China Renaissance Capital Investment
                                        Suites 305-307
                                        St George's Building
                                        2 Ice House Street, Central
                                        Hong Kong

                                        Attention: Hung Shih
                                        Facsimile: (852) 2521-8023

                                       16

<PAGE>

                                        INVESTOR:

                                        CHINA ENVIRONMENT FUND 2004, LP.

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Hua Cao
                                            ------------------------------------
                                        Name: Hua Cao
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 908
                                        George Town, Cayman Islands

                                        c/o Tsinghua Venture Capital Management
                                        A2302, SP Tower, Tsinghua Science Park
                                        Beijing, China 100084

                                        Attention: Dr. Catherine Cao
                                        Facsimile: (86-10) 8215-1150

                                       17

<PAGE>

                                        INVESTOR:

                                        JAFCO ASIA TECHNOLOGY FUND III

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Vincent Chan Chun Hung
                                            ------------------------------------
                                        Name: Vincent Chan Chun Hung
                                        Capacity: Attorney

                                        Address of registered office:

                                        c/o Walkers SPV Limited
                                        P.O. Box 908GT, Mary Street
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        Notice address:

                                        c/o JAFCO Investment (Asia Pacific) Ltd.
                                        6 Battery Road
                                        #42-01 Singapore 049909

                                        Attention: The President
                                        Facsimile: (65) 6221-3690

                                        With a copy to:

                                        JAFCO Investment (Hong Kong) Ltd.
                                        30/F, Two IFC, 8 Finance Street,
                                        Central, Hong Kong

                                        Attention: General Manager
                                        Facsimile: (852) 2536-1979

                                       18

<PAGE>

                                        INVESTOR:

                                        MUS ROOSEVELT CHINA PACIFIC FUND L.P.

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jun Otsuka
                                            ------------------------------------
                                        Name: Jun Otsuka
                                        Capacity: Managing Direcotr

                                        Address:

                                        c/o MUS Roosevelt Capital Partners, Ltd.
                                        Offshore Incorporations (Cayman) Limited
                                        Scotia Centre 4/F
                                        P.O. Box 2804
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        With a copy to:

                                        Mitsubishi UFJ Securities (HK) Capital,
                                        Limited
                                        11/F, AIG Tower
                                        One Connaught Road
                                        Central, Hong Kong

                                        Attention: Mr. Jun Otsuka (Managing
                                                   Director)
                                        Facsimile: (852) 2865-6214

                                       19

<PAGE>

                                        INVESTOR:

                                        TECH TEAM HOLDINGS LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Address:

                                        2nd Floor, Abbott Building, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        299 Bisheng Road
                                        Suite 13-101
                                        Pudong, Shanghai
                                        China 201204

                                        Attention: Jerry Jiyi WENG
                                        Facsimile: (86-21) 5080-1333

                                       20

<PAGE>

                                        INVESTOR:

                                        GRAND GAINS INTERNATIONAL LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Registered address:

                                        Palm Grove House, P.O. Box 438, Road
                                        Town, Tortola, British Virgin Islands

                                        Notice address:

                                        32/F, Tower of China Merchants Bank
                                        No. 7088 Shennan Road
                                        Futian, Shenzhen 518040

                                        Attention: Li Hongwei
                                        Facsimile: (86-755) 8319-5157

                                       21

<PAGE>

                                        INVESTOR:

                                        BOFA CAPITAL COMPANY LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Lingyong Peng
                                            ------------------------------------
                                        Name: Lingyong Peng
                                        Capacity: Authorized Signatory

                                        Registered address:

                                        c/o Maples Finance BVI Limited, P.O. Box
                                        173, Kingston Chambers, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        Room 16D
                                        Building 8
                                        Shijicheng 3 Term
                                        Haidian District
                                        Beijing, P.R.China

                                        Attention: Mr. Peng Lingyong
                                        Facsimile: (86-10) 8889 1502

                                       22<PAGE>

                                                                     Exhibit 4.6

                               LDK SOLAR CO., LTD.

                  SERIES B PREFERRED SHARES PURCHASE AGREEMENT

THIS SERIES B PREFERRED SHARES PURCHASE AGREEMENT (this "AGREEMENT") is made as
of this September 15, 2006, by and among LDK Solar Co., Ltd., a company
organized and existing under the laws of the Cayman Islands (the "COMPANY"),
Jiangxi LDK Solar Hi-Tech Co., Ltd. (Chinese Characters LDK Chinese Characters),
a company organized and existing under the laws of the PRC (the "PRC
SUBSIDIARY"), each of the investors set forth in Schedule A attached hereto
(each an "INVESTOR" and collectively, the "INVESTORS") and Mr. Peng Xiaofeng
(the "FOUNDER").

                                   WITNESSETH

THE PARTIES HEREBY AGREE AS FOLLOWS:

1.   DEFINITIONS

Capitalized terms used in this Agreement shall have the meanings ascribed to
them in the Schedule of Definitions.

2.   PURCHASE AND SALE OF SECURITIES

2.1  Sale and Issuance of Series B Preferred Shares

     (i)  The Company shall adopt on or before the Closing (defined below) the
          Memorandum and Articles in substantially the form attached hereto as
          Exhibit A and file such Memorandum and Articles with the Registrar of
          Companies of the Cayman Islands within fifteen (15) days of such
          adoption.

     (ii) On or prior to the Closing, the Company shall have authorized (i) the
          sale and issuance to the Investors of the Series B Preferred Shares
          (defined below); and (ii) the issuance of the Conversion Shares upon
          conversion of the Series B Preferred Shares pursuant to the Memorandum
          and Articles. The Series B Preferred Shares shall have the rights,
          preferences, privileges and restrictions set forth in the Memorandum
          and Articles.

     (iii) Subject to the terms and conditions of this Agreement, each Investor
          agrees, severally and not jointly, to purchase at the Closing and the
          Company agrees to sell and issue to each Investor at the Closing that
          number of the Series B Preferred Shares set forth opposite such
          Investor's name on Schedule A attached hereto for the purchase price
          set forth thereon (collectively, the "SUBSCRIPTION PRICE"). It is
          understood that the aggregate number of Series B Preferred Shares to
          be issued by the Company at the Closing shall be 8,000,000 shares,
          representing a 9.135% ownership in the Company immediately after the
          Closing (the "INITIAL OWNERSHIP"). For the avoidance of doubt, the
          calculation of the Initial Ownership hereunder and any adjustment to
          such ownership under Section 2.4 shall be based on the total issued
          and outstanding 75,000,000 Ordinary Shares plus the total issued and
          outstanding 12,580,000 Preferred Shares, without consideration of any
          shares issued pursuant to the Company Option Plan.

                                       1

<PAGE>

2.2  Closing

     Subject to the satisfaction or waiver of the conditions to closing set
     forth in Section 5 and Section 6 of this Agreement, the purchase and sale
     of the Series B Preferred Shares set forth on Schedule A shall take place
     at the offices of Clifford Chance LLP, 40th Floor, the Bund Center, No. 222
     Yan An Road East, Shanghai 200002, PRC, at 10:00 a.m., on or prior to
     September 28, 2006, or at such other time and place as the Company and the
     Investors may mutually agree upon orally or in writing (which time and
     place are designated herein as the "CLOSING").

2.3  Closing Delivery

     At the Closing, the Company shall deliver to each Investor a certificate or
     certificates in form reasonably satisfactory to such Investor evidencing
     the Series B Preferred Shares purchased by such Investor, registered in
     such Investor's or its nominee's name as evidenced by delivery of a
     certified copy of the Company's Register of Members, reflecting such
     Investor's ownership of the Series B Preferred Shares purchased hereunder,
     against delivery to the Company of the purchase price therefore in the
     amount specified in column 4 of Schedule A attached hereto, by a wire
     transfer of United States Dollars in immediately available funds or by
     other payment methods mutually agreed to by Company and the Investors.

2.4  Ownership Adjustments

     (i)  Following the issue by the Auditor of the 2006 Audited Income
          Statement:

          (a)  if the 2006 Net Earnings are equal to or more than the Guaranteed
               2006 Net Earnings and the final ownership of the holders of the
               Series A-1 Preferred Shares and the holders of the Series A-2
               Preferred Shares (collectively, the "SERIES A SHAREHOLDERS") is
               to remain unchanged in accordance with Section 2.4(i) of the
               Share Purchase Agreement, dated as of July 28, 2006, by and among
               the Company, the Founder and the Series A Shareholders, which is
               amended by that certain Amendment to the Share Purchase Agreement
               dated as of September 15, 2006 (as amended, the "SERIES A SHARE
               PURCHASE AGREEMENT"), then the final ownership of the Investors
               in the Company after adjustment (the "FINAL OWNERSHIP") shall
               remain unchanged as the Initial Ownership of the Investors in the
               Company. For purposes of this Section 2.4, the calculation of the
               Final Ownership of the Investors in the Company and any
               adjustment to such ownership hereunder shall be effected by
               dividing the total number of issued and outstanding Series B
               Preferred Shares by the sum of the total issued and --
               outstanding Ordinary Shares (being 75,000,000) and the total
               number of issued and outstanding Preferred Shares (defined
               below), all on an as-converted basis, as of the date of the
               Closing or the date of adjustment, as the case may be.

          (b)  if the 2006 Net Earnings are less than the Guaranteed 2006 Net
               Earnings and the final ownership of the Series A Shareholders is
               to be adjusted in accordance with Section 2.4(i)(b) of the Series
               A Share Purchase Agreement, in order for the Final Ownership to
               remain unchanged as the Initial Ownership of the Investors in the
               Company, the respective Conversion Rate at which the Series A-1
               Preferred Shares and the Series A-2 Preferred Shares
               (collectively, the "SERIES A PREFERRED

                                       2

<PAGE>

               SHARES") and the Series B Preferred Shares (together with the
               Series A Preferred Shares, the "PREFERRED SHARES") are converted
               into Ordinary Shares shall be appropriately adjusted so that (A)
               the final ownership of the Series A Shareholders in the Company
               (calculated by dividing the total number of issued and
               outstanding Series A Preferred Shares by the sum of the total
               number of issued and -- outstanding Ordinary Shares (being
               75,000,000) and the total number of issued and outstanding
               Preferred Shares, all on an as-if converted basis, as of the date
               of the adjustment) shall be equal to the number derived from the
               formula set forth in Section 2.4(i)(b) of the Series A Share
               Purchase Agreement; and (B) the Final Ownership of the Investors
               in the Company shall be equal to the Initial Ownership of the
               Investors in the Company.

     (ii) Following the issue by the Auditor of the 2006/2007 Audited Income
          Statement:

          (a)  If the 2006/2007 Net Earnings are equal to or more than the
               Guaranteed 2006/2007 Net Earnings, the Final Ownership shall
               remain unchanged as the Initial Ownership of the Investors in the
               Company.

          (b)  If the 2006/2007 Net Earnings are less than the Guaranteed
               2006/2007 Net Earnings, the Final Ownership of the Investors in
               the Company shall be adjusted in accordance with the following
               formula promptly following the issue of the 2006/2007 Audited
               Income Statement:

                         GE06/07
               FO = IO x -------
                         AE06/07

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) FO shall mean the Final Ownership after
               adjustment in accordance with this Section 2.4(ii)(b); (2) IO
               shall mean the Initial Ownership of the Investors in the Company;
               (3) GE06/07 shall mean the Guaranteed 2006/2007 Net Earnings of
               the Company Group, being an amount that is US$60,000,000; and (4)
               AE06/07 shall mean the actual 2006/2007 Net Earnings.

          (c)  The adjustment of the Final Ownership as contemplated in Section
               2.4(ii)(b) above shall be effected by adjusting the respective
               Conversion Rate of the Series A Preferred Shares and the Series B
               Preferred Shares so that (A) the final ownership of the Series A
               Shareholders (calculated by dividing the total number of issued
               and outstanding Series A Preferred Shares by the sum of the total
               number of issued and outstanding Ordinary Shares (being
               75,000,000) and the total number of issued and outstanding
               Preferred Shares, all on an as-converted basis, as of the date of
               the adjustment) shall remain unchanged as the ownership of the
               Series A Shareholders adjusted, if any, according to Section
               2.4(i)(b) of the Series A Share Purchase Agreement; and (B) the
               Final Ownership of the Investors in the Company shall be equal to
               the number derived from the formula set forth in Section
               2.4(ii)(b) of this Agreement.

     (iii) Following the issue by the Auditor of the 2007 Audited Income
          Statement:

                                       3

<PAGE>

          (a)  if the 2007 Net Earnings are equal to or more than the Guaranteed
               2007 Net Earnings, then the respective Conversion Rate of the
               Series A Preferred Shares and the Series B Preferred Shares shall
               be appropriately adjusted so that (A) the final ownership of the
               Series A Shareholders in the Company (calculated by dividing the
               total number of issued and outstanding Series A Preferred Shares
               by the sum of the total number of issued and -- outstanding
               Ordinary Shares (being 75,000,000) and the total number of issued
               and outstanding Preferred Shares, all on an as converted basis,
               as of the date of the adjustment) shall remain unchanged as the
               ownership of the Series A Shareholders adjusted, if any,
               according to Section 2.4(i)(b) of the Series A Share Purchase
               Agreement; and (B) the Final Ownership of the Investors in the
               Company shall remain unchanged as the ownership of the Investors
               adjusted, if any, according to Section 2.4(ii)(b) of this
               Agreement.

          (b)  if the 2007 Net Earnings are less than the Guaranteed 2007 Net
               Earnings and the final ownership of the Series A Shareholders is
               to be adjusted in accordance with Section 2.4(ii)(b) of the
               Series A Share Purchase Agreement, in order for the Final
               Ownership remain unchanged as the ownership of the Investors
               adjusted, if any, according to Section 2.4(ii)(b) of this
               Agreement, the respective Conversion Rate of the Series A
               Shareholders in the Company and the Series B Preferred Shares
               shall be appropriately adjusted so that (A) the final ownership
               of the Series A Shareholders (calculated by dividing the total
               number of issued and outstanding Series A Preferred Shares by the
               sum of the total number of the -- issued and outstanding Ordinary
               Shares (being 75,000,000) and the total number of issued and
               outstanding Preferred Shares, all on an as-converted basis, as of
               the date of the adjustment) shall be equal to the number derived
               from the formula set forth in Section 2.4(ii)(b) of the Series A
               Share Purchase Agreement; and (B) the Final Ownership of the
               Investors in the Company shall remain unchanged as the ownership
               of the Investors adjusted, if any, according to Section
               2.4(ii)(b) of this Agreement.

     (iv) To effect the ownership adjustment as set forth in Sections 2.4(i),
          (ii) and (iii) above, the applicable Conversion Rate of the Series A
          Preferred Shares and the Series B Preferred Shares shall be adjusted
          in accordance with the following formulas:

                             TS
          CR(A) = FO(A) x ---------
                          4,580,000

                             TS
          CR(B) = FO(B) x ---------
                          8,000,000

          For purposes of the foregoing formulas, the following definitions
          shall apply: (1) CR(A) shall mean the effective Conversion Rate of the
          Series A Preferred Shares at which the Series A Preferred Shares are
          converted into Ordinary Shares in accordance with this Section 2.4;
          (2) CR(B) shall mean the effective Conversion Rate of the Series B
          Preferred Shares at which the Series B Preferred Shares are converted
          into Ordinary Shares in accordance with this Section 2.4; (3) FO(A)
          shall mean the final ownership of the holders of the Series A
          Preferred Shares in the Company as adjusted according to Section 2.4
          of the Series A Share Purchase Agreement; (4) FO(B) shall mean the
          Final

                                       4

<PAGE>

          Ownership of the Investors in the Company as adjusted according to
          Section 2.4 hereof; and (5) TS shall mean the total number of Ordinary
          Shares to be issued and outstanding, on an as-converted basis, as of
          the date of the Closing or the date of adjustment, as the case may be,
          which shall be equal to the number derived from the following formula:

          TS =

     (v)  Notwithstanding anything contained herein to the contrary, the
          Investors agree not to make any adjustment to the ownership with
          respect to the 2006/2007 Audited Income Statement under Section
          2.4(ii) hereof if the 2006/2007 Net Earnings is no less than
          US$57,000,000.

     (vi) A number of hypothetical examples showing the detailed processes in
          the adjustment of the respective ownership of the Series A
          Shareholders and the Investors in accordance with the formulas and
          principles set forth in this Section 2.4 are attached as Appendix 1 to
          this Agreement. The parties hereto acknowledge that such examples are
          for illustration purposes only and shall not be legally binding in any
          respect.

     (vii) Notwithstanding the above, in the event a Qualified IPO consummates
          or is expected to consummate prior to June 30, 2007, the Company
          agrees to perform a special audit of the interim period covering the
          number of complete months prior to such date. If the 2006/2007 Net
          Earnings is less than the Guaranteed 2006/2007 Net Earnings, each on a
          pro rata basis, then the Final Ownership of Investors in the Company
          shall be adjusted, prior to the consummation of the Qualified IPO, in
          accordance with the formulas and principles set forth in this Section
          2.4, except the actual adjustment will be made on a pro rata basis.

     (viii) Notwithstanding the above, the parties hereto may agree from time to
          time, based on legal advice mutually acceptable to the Company and the
          Investors, on any other method to effect the adjustment to the final
          ownership of the Series A Shareholders and the Final Ownership of the
          Investors to be equal to the amounts derived from the formulas and
          principles set forth in this Section 2.4. For the avoidance of doubt,
          the Investors' Final Ownership after any adjustment made under this
          Section 2.4 shall not be lower than their ownership before such
          adjustment.

     (ix) Notwithstanding anything contained herein to the contrary, in the
          event there shall be any conflict between the provisions set forth in
          this Section 2.4 and the provisions contained in the Memorandum and
          Articles, then the provisions of the Memorandum and Articles shall
          prevail.

3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE PRC SUBSIDIARY AND THE
     FOUNDER

The Company, the PRC Subsidiary and the Founder jointly and severally represent
and warrant to the Investors as of the date of this Agreement and as of the
Closing that, other than as set forth in the Disclosure Schedule (the
"DISCLOSURE SCHEDULE") with specific reference to the Section to which exception
is being taken:

3.1  Organization, Good Standing and Qualification

                                       5

<PAGE>

     (i)  Each member of the Company Group is duly incorporated, validly
          existing and in good standing under the laws of the jurisdiction of
          its incorporation. Each member of the Company Group has all requisite
          corporate power and authority to carry on its business as now
          conducted and as proposed to be conducted and is duly qualified to
          transact business and is in good standing in each jurisdiction in
          which it operates business and the failure to so qualify would have a
          Material Adverse Effect.

     (ii) The Company is an exempted company duly organized, validly existing
          and in good standing under the laws of Cayman Islands, and has all
          requisite corporate power and authority to carry on its business as
          now conducted and as proposed to be conducted and is duly qualified to
          transact business and is in good standing in each jurisdiction in
          which it operates business and the failure to so qualify would have a
          Material Adverse Effect. The Company is a holding company and since
          its formation has not engaged in any business operation, been a party
          to any agreement, contract or commitment, or incurred any liability or
          obligation other than in the course of forming and holding its equity
          interest in the PRC Subsidiary and those relating solely to the
          transactions contemplated under this Agreement and the Ancillary
          Agreements.

     (iii) The PRC Subsidiary is a wholly foreign-owned enterprise, duly
          organized and validly existing under the laws of the PRC. The
          formation of the PRC Subsidiary was duly approved by MOFCOM or its
          authorized local counterpart. The PRC Subsidiary has the corporate
          power and authority to own and operate its properties and to carry on
          its business as specified in the scope of business in the business
          license issued to the PRC Subsidiary.

3.2  Capitalization and Voting Rights

     (i)  The authorized capital is and as of the Closing will be US$14,000,000.
          The authorized capital of the Company consists, or will consist
          immediately prior to the Closing, of:

          (a)  Ordinary Shares. 127,000,000 ordinary shares, par value US$0.10
               per share (the "ORDINARY SHARES"), of which 75,000,000 shares are
               issued and outstanding, and 52,000,000 are reserved for issuance
               upon conversion of the Preferred Shares issued and outstanding as
               of the Closing Date, upon the exercise of the Warrants as well as
               upon the exercise of stock options granted under the Company
               Option Plan.

          (b)  Preferred Shares. 13,000,000 preferred shares, (1) 3,275,109 of
               which have been designated Series A-1 Preferred Shares, par value
               US$0.10 per share (the "SERIES A-1 PREFERRED SHARES"), 3,000,000
               of which are issued and outstanding; (2) 1,724,891 of which have
               been designated Series A-2 Preferred Shares, par value US$0.10
               per share (the "SERIES A-2 PREFERRED SHARES"), 1,580,000 of which
               are issued and outstanding; and (3) 8,000,000 of which have been
               designated Series B Preferred Shares, par value US$0.10 per share
               (the "SERIES B PREFERRED SHARES", together with the Series A-1
               Preferred Shares and the Series A-2 Preferred Shares, the
               "PREFERRED SHARES"), none of which has been issued and
               outstanding.

     (ii) The registered capital of the PRC Subsidiary is US$35,900,000 as of
          the Closing, all of which is owned by the Company and has been fully
          paid for.

                                       6

<PAGE>

     (iii) On the date hereof and at the Closing, the issued and outstanding
          share capital of the Company is and will be as set forth in Section
          3.2(iii) of the Disclosure Schedule, which lists all shareholders
          owning issued and outstanding shares of the Company, together with the
          number held by each.

     (iv) Section 3.2(iv) of the Disclosure Schedule shows an accurate and true
          list of all outstanding securities of the Company and the PRC
          Subsidiary and their respective holders to be in effect immediately
          following the Closing.

     (v)  As of the date hereof and the Closing, except as provided in this
          Agreement, the Ancillary Agreements, the Company Option Plan, the
          Warrants and the rights and privileges of the Preferred Shares under
          the Memorandum and Articles, there are no outstanding options,
          warrants, rights (including conversion or preemptive rights and rights
          of first refusal), proxy or shareholders agreements or agreements of
          any kind for the purchase or acquisition from the Company or the PRC
          Subsidiary of any of their securities.

     (vi) Except as may be provided by the terms of the Preferred Shares or as
          otherwise set forth in Section 3.2(vi) of the Disclosure Schedule,
          neither the Company nor the PRC Subsidiary is subject to any
          obligation (contingent or otherwise) to purchase or otherwise acquire
          or retire any equity interest held by its shareholders or to purchase
          or otherwise acquire or retire any of its other outstanding
          securities.

3.3  Group Structure

     (i)  Section 3.3(i) of the Disclosure Schedule lists each Group Company,
          and correctly sets forth the capitalization of such Group Company, the
          Company's ownership interest therein, the interest of any other Person
          therein, the nature of legal entity which the Group Company
          constitutes, the jurisdiction in which the Group Company was
          organized, each jurisdiction in which the Group Company is required to
          be qualified or licensed to do business as a foreign Person and a
          brief summary of the Group Company's business.

     (ii) Except in respect of any interest held in any Group Company, none of
          the Company or the Group Companies has any Subsidiaries or owns or
          controls, directly or indirectly, any interest in any other
          corporation, partnership, trust, joint venture, association or other
          entity. Except as set forth in Section 3.3(ii) of the Disclosure
          Schedule, none of the Company or the Group Companies maintains any
          offices or any branches.

     (iii) In respect of any ownership interest held in a Group Company by the
          Company or another Group Company, as described in Section 3.3(i) of
          the Disclosure Schedule, (a) the Company or such Group Company holds
          good and valid title to such ownership interest free and clear of all
          restrictions on transfer or other encumbrances, other than those
          restrictions on transfer or other encumbrances created by the
          Ancillary Agreements or the constitutional documents, (b) such
          ownership interest was acquired in compliance with all Applicable
          Laws, including those promulgated by SAFE and those regulating the
          offer, sale or issuance of securities generally, and (c) there are no
          outstanding options or rights for the purchase or acquisition from the
          Company or such Group Company of such

                                       7

<PAGE>

          ownership interest. There are no outstanding options, warrants, rights
          (including registration, conversion or preemptive rights and rights of
          first refusal), proxy or shareholders agreements or agreements of any
          kind for the purchase or acquisition from any Group Company of any of
          its equity. None of the Group Companies is subject to any obligation
          (contingent or otherwise) to purchase or otherwise acquire or retire
          any interest held by its equity holders or to purchase or otherwise
          acquire or retire any of its securities.

     (iv) In respect of the PRC Subsidiary, as of the Closing, the full amount
          of the registered capital thereof has been contributed, such
          contribution has been duly verified by a certified accountant
          registered in the PRC and the accounting firm employing such
          accountant, and the report of the certified accountant evidencing such
          verification has been registered with the SAIC or its authorized local
          counterpart.

3.4  Authorization

     Each of the Company, the PRC Subsidiary and the Founder has all requisite
     power and authority to execute and deliver this Agreement and each of the
     Ancillary Agreements to which it is a party and to carry out and perform
     its obligations thereunder. All corporate action on the part of each of the
     Company, the PRC Subsidiary and their respective officers, directors and
     shareholders necessary for the authorization, execution and delivery of
     this Agreement and each of the Ancillary Agreements to which it is a party,
     the performance of all obligations of each of the Company and the PRC
     Subsidiary thereunder, and the authorization, issuance (or reservation for
     issuance), sale and delivery by the Company of the Series B Preferred
     Shares being sold hereunder and the Ordinary Shares issuable upon
     conversion of such Series B Preferred Shares, has been taken or will be
     taken prior to the Closing. This Agreement and each of the Ancillary
     Agreements to which each of the Company, the PRC Subsidiary or the Founder
     is a party have been duly executed and delivered by each of the Company,
     the PRC Subsidiary and the Founder, and constitute valid and legally
     binding obligations thereof, enforceable thereagainst in accordance with
     its terms, except (i) as limited by applicable bankruptcy, insolvency,
     reorganization, moratorium, and other laws of general application affecting
     enforcement of creditors' rights generally, and (ii) as limited by laws
     relating to the availability of specific performance, injunctive relief, or
     other equitable remedies. Any preemptive rights or rights of first refusal
     with respect to the issuance of the Series B Preferred Shares or the
     Ordinary Shares to be issued upon conversion of the Series B Preferred
     Shares have been duly waived.

3.5  Valid Issuance of the Series B Preferred Shares

     (i)  The Series B Preferred Shares that are being purchased by or issued to
          the Investors hereunder, when issued, sold and delivered in accordance
          with the terms of this Agreement against payment of the Subscription
          Price will be duly and validly issued, fully paid, and non-assessable,
          and will be free of restrictions on transfer other than such
          restrictions on transfer as may be imposed by this Agreement, the
          Ancillary Agreements or the Memorandum and Articles. The Ordinary
          Shares issuable upon conversion of the Series B Preferred Shares
          purchased under this Agreement have been duly and validly reserved for
          issuance and, upon issuance in accordance with the terms of the
          Memorandum and Articles, will be duly and validly issued, fully paid,
          and non-

                                       8

<PAGE>

          assessable and will be free of restrictions on transfer other than
          such restrictions on transfer as may be imposed by this Agreement, the
          Ancillary Agreements or the Memorandum and Articles.

     (ii) All presently outstanding shares of the Company are duly and validly
          issued, fully paid and non-assessable, and in each case such shares
          have been issued in full compliance with the requirements of all
          applicable securities laws and regulations, including to the extent
          applicable, the Securities Act and all other antifraud and other
          provisions of applicable securities laws and regulations.

3.6  Licenses

     (i)  Section 3.6 of the Disclosure Schedule contains a true and complete
          list of all Licenses used in and material to the business or
          operations of the Group Companies, setting forth the owner, the
          function and the expiration and renewal date of each. Prior to the
          execution of this Agreement, the Company has delivered to the
          Investors true and complete copies of all such Licenses.

          (a)  Each Group Company owns or validly holds all Licenses that are
               necessary to conduct its business and own and operate its assets
               and properties as presently conducted and operated, and can
               obtain, without undue burden or expense, all Licenses for the
               conduct of its businesses as currently conducted and as proposed
               to be conducted;

          (b)  Each License listed in Section 3.6 of the Disclosure Schedule is
               valid, binding and in full force and effect; and

          (c)  No Group Company is or has at any time been, or has received any
               notice that it is or has at any time been, in default (or with
               the giving of notice or lapse of time or both, would be in
               default) under any such License.

     (ii) Without limiting the generality of paragraph (i) above, all Licenses
          required under PRC laws for the due and proper establishment and
          operation of the PRC Subsidiary and the consummation of the
          transactions contemplated hereby have been duly obtained from the
          relevant Governmental Authority and are in full force and effect; all
          filings and registrations with the relevant PRC Governmental Authority
          required in respect of the PRC Subsidiary and its operations,
          including but not limited to registration with MOFCOM, SAIC, and SAFE
          have been duly and timely completed in accordance with the relevant
          PRC laws; the consummation of the transactions contemplated under this
          Agreement and each of the Ancillary Agreements will not result in a
          termination or revocation of any of the Material Licenses; each Group
          Company is in compliance with applicable requirements of the relevant
          tax bureau, customs authorities and product registration authorities
          to which it and its business are subject.

3.7  Consents

     No consent, approval, order or authorization of, or registration,
     qualification, designation, declaration or filing with, any Governmental
     Authority or other third party on the part of any of the Company, the PRC
     Subsidiary or the Founder will be required in connection with the

                                       9

<PAGE>

     execution, delivery and performance of this Agreement and each of the
     Ancillary Agreements and the consummation of the transactions contemplated
     thereby which has not already been secured or effected or will be secured
     or effected prior to the Closing.

3.8  Offering

     The Series B Preferred Shares and the Ordinary Shares to be issued upon
     conversion of the Series B Preferred Shares have not been, and will not be,
     registered under the Securities Act and are made subject of sale and
     purchase under this Agreement, to the extent they are so made herein,
     pursuant to an exemption from registration requirements of the Securities
     Act. Subject in part to the truth and accuracy of each Investor's
     representations set forth in Section 4 of this Agreement, the offer, sale
     and issuance of the Series B Preferred Shares and the Ordinary Shares to be
     issued upon conversion of the Series B Preferred Shares (when issued), as
     contemplated by this Agreement, is exempt from the registration and
     prospectus delivery requirements of the Securities Act and any applicable
     securities laws, and neither the Company nor any authorized agent acting on
     its behalf has taken or will take any action that would cause the loss of
     such exemption.

3.9  Business Plan and Budget

     The business plan and budget dated August 2, 2006, as amended (the "2006
     BUSINESS PLAN AND BUDGET") was previously delivered to the Investors by the
     Company and is attached as Exhibit C hereto. The 2006 Business Plan and
     Budget, including an annual profit and loss projection of the PRC
     Subsidiary for the fiscal years ending December 31, 2006 and 2007 as well
     as for the fiscal period from July 1, 2006 to June 30, 2007, does not
     contain any untrue statement of a material fact, nor does it omit to state
     a material fact necessary to make the statements therein not misleading,
     except that with respect to assumptions, projections and expressions of
     opinion or predictions contained in the 2006 Business Plan and Budget, the
     Company represents only it believes there is a reasonable basis therefor.

3.10 Books and Records; Minutes

     All accounts, ledgers, material files, documents, instruments, papers,
     books and records relating to the business, operations, conditions
     (financial or other) of each member of the Company Group, results of
     operations, and assets and properties of each member of the Company Group
     (collectively, the "BOOKS AND RECORDS"), each as supplied to the Investors,
     are true, correct, complete and current in all material respects, there are
     no material inaccuracies or discrepancies of any kind contained or
     reflected therein, and they have been maintained in accordance with
     relevant legal requirements and industry standards, as applicable,
     including the maintenance of an adequate system of internal controls. The
     minute books of each member of the Company Group, as made available to
     Investors and their representatives, contain complete and accurate records
     of all meetings of and corporate actions or written consents by the
     shareholders and the board of such member of the Company Group and, to the
     extent that such minute books are deficient, all material information not
     contained in such minutes has been conveyed to the Investors in other
     written form.

3.11 Tax Matters

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     All Tax Returns required to be filed in respect of each member of the
     Company Group have been duly and timely filed, have been prepared in
     compliance with Applicable Law, and are true, correct and complete. All
     Taxes due and payable by each member of the Company Group, whether or not
     shown as due on such Tax Returns, have been fully paid when due. Each
     member of the Company Group has established adequate reserves on their
     respective books of account for all Taxes and for the liability for
     deferred income Taxes payable in respect of such member of the Company
     Group. There have been no extraordinary examinations or audits of any tax
     returns or reports by any applicable governmental agency.

3.12 Review Reports

     (i)  The Company has delivered to the Investors and attached as Section
          3.12(i) of the Disclosure Schedule the review reports (the "REVIEW
          REPORTS") for the period from July 5, 2005 to May 31, 2006 and the
          period from June 1, 2006 to July 31, 2006 (the last date being the
          "REPORT DATE") and the financial forecast for the seven months ending
          December 31, 2006 of the Company. The Review Report and financial
          forecast are complete and correct in all material respects and present
          fairly the financial condition and position of the Company Group as of
          the Report Date, and are reviewed and signed off by KPMG in accordance
          with the IFRS.

     (ii) There are no debts, liabilities, or claims owed by or against any
          member of the Company Group, of any nature, whether accrued, absolute,
          contingent or otherwise, and whether due or to become due, other than
          liabilities set forth in the Review Report or disclosed in Section
          3.12(ii) of the Disclosure Schedule. None of the members of the
          Company Group is a guarantor or indemnitor of, or has provided
          security for, any indebtedness of any Person.

     (iii) Except as otherwise disclosed in Section 3.12(iii) of the Disclosure
          Schedule, all of the accounts receivable and notes receivable owing to
          each member of the Company Group, including without limitation all
          accounts receivable and notes receivable set forth on the Review
          Report, constitute valid and enforceable claims other than accounts
          receivable and notes receivable which individually and in the
          aggregate would not result in a Material Adverse Event if unpaid, and
          are good and collectible in the ordinary course of business in all
          material respects, net of any reserves shown on the Review Report
          (which reserves are adequate and were calculated on a basis consistent
          with IFRS), and no further goods or services are required to be
          provided in order to complete the sales and to entitle such Person to
          collect in full. There are no material contingent or asserted claims,
          refusals to pay, or other rights of set-off with respect to any member
          of the Company Group.

3.13 Absence of Changes

     Since the Report Date, except as otherwise disclosed in Section 3.13 of the
     Disclosure Schedule:

     (i)  None of the members of the Company Group has entered into any
          transaction that was not in the ordinary course of business.

                                       11

<PAGE>

     (ii) There has been no Material Adverse Event (individually or when
          separate events are taken together) with respect to any member of the
          Company Group or the Company Group taken as a whole.

     (iii) None of the members of the Company Group has incurred any obligation
          or liability except obligations or liabilities incurred in the
          ordinary course of business.

     (iv) There has been no resignation or termination of employment of any
          Senior Manager of any member of the Company Group, and the Company has
          no Knowledge of any impending resignation or termination of employment
          of any Senior Manager of any member of the Company Group.

     (v)  There has been no labor dispute involving any member of the Company
          Group or any of its respective employees and none is pending or
          threatened.

     (vi) There has been no material change in any compensation arrangement or
          agreement with any employee of any member of the Company Group.

     (vii) There have been no loans or guarantees made by any member of the
          Company Group to or for the benefit of any Person, other than travel
          advances and other advances made to employees in the ordinary course
          of business.

     (viii) There has been no waiver by any member of the Company Group of a
          material right or debt owing to such member.

     (ix) No member of the Company Group has purchased, acquired, sold, leased,
          granted a security interest in, pledged, mortgaged, created a lien in,
          or otherwise transferred a material portion of any material asset,
          whether tangible or intangible, other than the sale of inventory in
          the ordinary course of business and other than the creation of liens
          for taxes not yet due or payable.

     (x)  There has been no material change to, or termination of, any Material
          Contracts, no member of the Company Group has entered into any new
          Material Contracts other than those listed in Section 3.15 of the
          Disclosure Schedule, and there has been no change to the charter
          document of any member of the Company Group.

     (xi) There has been no declaration, setting aside or payment or other
          distribution in respect of any of the share capital of any member of
          the Company Group, or any direct or indirect redemption, purchase or
          other acquisition of any such share capital by any member of the
          Company Group.

     (xii) None of the members of the Company Group has incurred any
          indebtedness for money borrowed.

     (xiii) There has been no damage to, destruction or loss of physical
          property (whether or not covered by insurance) materially affecting
          the business or operations of any member of the Company Group.

     (xiv) There has been no agreement or commitment by any member of the
          Company Group to do any of the things described in this Section 3.13.

                                       12

<PAGE>

3.14 Litigation

     Except as set forth in Section 3.14 of the Disclosure Schedule, there are
     no legal actions, suits, proceedings or claims pending in any jurisdiction
     in which the members of the Company Group operate, are organized or
     licensed to do business, or, to the Knowledge of the Company, threatened
     (whether or not the defense thereof or liabilities in respect thereof are
     covered by insurance), at law, in equity, in arbitration or before any
     governmental entity or authority against or affecting the Business or
     Condition of the Company Group or the Founder, or any of their respective
     assets or properties, nor does the Company have Knowledge of any facts
     which are likely to give rise to the same.

     No injunction, writ, temporary restraining order, decree or any order of
     any nature has been issued by any court or other Governmental Authority
     purporting to enjoin or restrain the execution, delivery or performance of
     this Agreement or the other Ancillary Documents. No member of the Company
     Group has commenced or currently intends to initiate any legal action,
     suit, proceeding or claim.

3.15 Material Contracts

     Section 3.15 of the Disclosure Schedule lists each outstanding Contract to
     which any member of the Company Group is a party or to which any member of
     the Company Group or any of their respective properties is subject or by
     which any thereof is bound that is deemed a Material Contract under this
     Agreement.

     (i)  True and complete copies of the Material Contracts, including any
          amendments and supplements to such Contracts, have been delivered to
          the Investors or will be delivered to the Investors at least three (3)
          Business Days prior to the Closing; provided the Company may redact
          certain business sensitive information contained therein.

     (ii) Unless otherwise noted on Section 3.15(ii) of the Disclosure Schedule,
          each of the Material Contracts was entered into in the ordinary course
          of business.

     (iii) Each Material Contract is valid and subsisting, enforceable by the
          parties thereto in accordance with its terms, except (a) as limited by
          applicable bankruptcy, insolvency, reorganization, moratorium and
          other laws of general application affecting enforcement of creditors'
          rights generally, and (b) as limited by laws relating to the
          availability of specific performance, injunctive relief or other
          remedies in the nature of equitable remedies. Each member of the
          Company Group has duly performed all its obligations under each
          Material Contract to the extent that such obligations to perform have
          accrued. No breach or default, alleged breach or default, or event
          which would (with the passage of time, notice or both) constitute a
          breach or default under any of the Material Contracts by any member of
          the Company Group, as the case may be, or any other party or obligor
          with respect thereto, has occurred, or as a result of this Agreement
          or any Ancillary Agreement, or the performance hereof or thereof, will
          occur.

     (iv) Consummation of the transactions contemplated by this Agreement and
          the Ancillary Agreements will not (and will not give any Person a
          right to) terminate or modify any

                                       13

<PAGE>
          rights of, or accelerate or augment any obligation of any member of
          the Company Group under any Material Contract.

     (v)  Notwithstanding anything to the contrary provided herein, each of the
          following Contracts is deemed to be a Material Contract and has been
          identified in Section 3.15 of the Disclosure Schedule:

          (a)  any Contract that, after the Report Date, obligates any member of
               the Company Group to pay an amount in excess of US$1,000,000;

          (b)  any Contract of the Company or any Group Company that has an
               unexpired term of more than one (1) year valued in excess of
               US$1,000,000;

          (c)  any Contract on which the business of any member of the Company
               Group is substantially dependent or which is otherwise material
               to the Business or Conditions of any member of the Company Group;

          (d)  any loan agreement, indenture, letter of credit, security
               agreement, mortgage pledge agreement, deed of trust, bond, note,
               or other agreement relating to the borrowing of money or to the
               mortgaging, pledging, transferring of a security interest, or
               otherwise placing an encumbrance on any material asset or
               material part of the assets of any member of the Company Group,
               in an amount in excess of US$1,000,000;

          (e)  any Contract involving a guarantee by the Company or any Group
               Company of performance by any Person or involving any agreement
               of the Company or any Group Company to indemnify or act as surety
               for any Person, or any other Contract of the Company or any Group
               Company to be contingently or secondarily liable for the
               obligations of any Person;

          (f)  any Contract that limits or restricts the ability of any member
               of the Company Group to compete or otherwise to conduct its
               business in any manner or place;

          (g)  any joint venture, partnership, alliance or similar Contracts of
               the Company or any Group Company involving a sharing of profits
               or expenses (including joint development and joint marketing
               contracts);

          (h)  any asset purchase agreement, share purchase agreement or other
               Contract for acquisition by the Company or any Group Company of
               assets or shares of another Person;

          (i)  any agreement for the divestiture of (1) any assets by or of any
               member of the Company Group for consideration in excess of
               US$1,000,000 or (2) any shares of capital stock of any member of
               the Company Group;

          (j)  any sales agency, marketing or distributorship Contract the
               termination or non-extension of which would result in a Material
               Adverse Event;

          (k)  any Contract requiring performance on the part of the Company or
               any Group Company in any country other than the PRC;

                                       14

<PAGE>

          (l)  any Contract of the Company or any Group Company that grants a
               power of attorney, agency or similar authority to another Person
               or entity, agency or similar authority to another Person or
               entity;

          (m)  any Contract that contains a right of first refusal in respect of
               the share capital of any member of the Company Group;

          (n)  all supply agreements with vendors for materials, parts and other
               inputs for the Company's products and supply agreements with a
               value in excess of US$1,000,000;

          (o)  all contracts with customers of the Company with a value (or
               expected value) in excess of US$1,000,000; and

          (p)  any other Contract that was not made in the ordinary course of
               business of the Company or any Group Company or not made at arm's
               length.

3.16 Compliance with Laws

     (i)  Each member of the Company Group is, and at all times has been, in
          full compliance with all Applicable Laws in any jurisdiction in which
          it operates, owns assets or is organized or licensed to do business.

     (ii) No event has occurred and no circumstance exists that (with or without
          notice or lapse of time) (a) may constitute or result in a violation
          by any member of the Company Group of, or a failure on the part of any
          member of the Company Group to comply with, any Applicable Law, or (b)
          may give rise to any obligation on the part of any member of the
          Company Group to undertake, or to bear all or any portion of the cost
          of, any remedial action of any nature.

     (iii) None of the members of the Company Group has received any notice or
          other communication (whether oral or written) from any governmental or
          regulatory body regarding (a) any actual, alleged, possible, or
          potential violation of, or failure to comply with, any Applicable Law,
          including without limitation any applicable Environmental Laws and
          Applicable Law relating to customs, transfer pricing, foreign exchange
          and related import and export regulations or (b) any actual, alleged,
          possible, or potential obligation on the part of any member of the
          Company Group to undertake, or to bear all or any portion of the cost
          of, any remedial action of any nature.

     (iv) None of the members of the Company Group or the Founder, director,
          agent, employee or any other person acting for or on behalf of such
          member of the Company Group, has directly or indirectly (a) made any
          contribution, gift, bribe, payoff, influence payment, kickback, or any
          other improper payment in any form, whether in money, property, or
          services to any person, including but not limited to any officer of
          any Governmental Authority (w) to obtain favorable treatment in
          securing business for such member or any other member of the Company
          Group, (x) to pay for favorable treatment for business secured, (y) to
          obtain special concessions or for special concessions already
          obtained, for or in respect of such member or any other member of the
          Company Group, or (z) in violation of any Applicable Law, or (b)
          established or maintained any fund or assets in

                                       15

<PAGE>

          which such member of the Company Group has proprietary rights that
          have not been recorded in the Books and Records of such member of the
          Company Group, except, in each case, for such payments which
          facilitate or expedite the performance of routine government action
          and which was lawful under the laws of the jurisdiction of such
          payments.

3.17 Real Property

     (i)  None of the members of the Company Group owns or has legal or
          equitable title or other right or interest in any real property other
          than the land use rights (the "LAND USE RIGHTS") held by the Company
          Group as set forth in Section 3.17(i) of the Disclosure Schedule or as
          held pursuant to Lease (as defined below). True and complete copies of
          the certificates evidencing the Land Use Rights have been delivered to
          each of the Investors or their agents or professional advisers. Any
          land grant premium required under Applicable Law in connection with
          securing such Land Use Rights has been fully paid. The use of any real
          property by each of the members of the Company Group has conformed to
          the intended use of such real property as granted under the applicable
          Land Use Rights. The particulars of the Land Use Rights as set out in
          Section 3.17(i) of the Disclosure Schedule are true and complete.

     (ii) Section 3.17(ii) of the Disclosure Schedule sets forth each leasehold
          interest with the annual lease payment in excess of US$50,000 pursuant
          to which any member of the Company Group holds any rights, titles or
          interests of a tenant (each a "LEASE"), indicating the parties to such
          Lease, the address of the property demised under the Lease, the rent
          payable under the Lease and the term of the Lease. Each Lease
          constitutes the entire agreement to which any member of the Company
          Group is party with respect to the property demised thereunder, and a
          true and complete copy of each such Lease has been delivered to the
          Investors, together with all amendments, modifications, alterations
          and other changes thereto. Each Lease is valid and subsisting,
          enforceable against the parties thereto in accordance with its terms.
          As of the date hereof, all conditions precedent to the enforceability
          of each Lease have been satisfied and there exists no breach or
          default, nor state of facts which, with the passage of time, notice,
          or both, would result in a breach or default on the part of any party
          to the Lease. Each member of the Company Group has accepted possession
          of the property demised pursuant to each Lease and is in actual
          possession thereof and has not sublet, assigned or hypothecated its
          leasehold interest except as set forth on Section 3.17(ii) of the
          Disclosure Schedule. The particulars of the Leases as set out in
          Section 3.17(ii) of the Disclosure Schedule are true and complete.

     (iii) Except as set forth in Section 3.17(iii) of the Disclosure Schedule,
          each member of the Company Group has obtained property ownership
          certification for the plants, buildings and improvements located on
          land with respect to which it holds Land Use Rights (collectively, the
          "IMPROVEMENTS"). The Improvements and the operation thereof are part
          of a construction project plan approved by the applicable construction
          commission for the jurisdiction where the Improvements are located and
          do not (A) contravene any Applicable Law relating to zoning or
          building or (B) violate any restrictive covenant or any provision, in
          the case of either (i) or (ii), the effect of which could interfere
          with or

                                       16
<PAGE>

          prevent the continued use of such Improvements for the purpose for
          which they are now being used. All of the Improvements are in good
          operating condition and in a state of reasonable maintenance and
          repair (except for ordinary wear and tear) and are adequate for the
          conduct of the business of each member of the Company Group as
          currently conducted.

     (iv) Each of the Land Use Rights and the Improvements is free and clear of
          any and all encumbrances except for those identified in Section
          3.17(iv) of the Disclosure Schedule. A true and complete copy of each
          of the agreements relating to the encumbrances identified in Section
          3.17(iv) of the Disclosure Schedule (the "MORTGAGES") has been
          delivered to each of the Investors.

     (v)  Except as set forth in Section 3.17(v) of the Disclosure Schedule,
          none of the Company Group uses any real property in the conduct of its
          business except insofar as it holds valid Land Use Rights or has
          secured a Lease with respect thereto. No default or event of default
          on the part of any member of the Company Group or event which, with
          the giving of notice or passage of time or both, would constitute a
          default or event of default has occurred and is continuing unremedied
          or unwaived under the terms of any of the Land Use Rights, the Leases
          or Mortgages. There exists no pending or threatened condemnation,
          confiscation, dispute, claim, demand or similar proceeding with
          respect to, or which could materially and adversely affect, the
          continued use and enjoyment of any Land Use Right, Lease or
          Improvement. The Land Use Rights, Leases and Mortgages are valid and
          subsisting and are enforceable in accordance with the terms contained
          therein in all material respects.

3.18 Personal Property

     (i)  The personal property of each member of the Company Group is
          sufficient for the conduct of its business as currently conducted.

     (ii) All personal property of each member of the Company Group which is
          reflected in the Review Report therefor delivered to the Investors
          under Section 3.12(i) or which has been acquired by any member of the
          Company Group since the Report Date and which has not been disposed of
          in the ordinary course of its business is owned by such member of the
          Company Group free and clear of any encumbrances.

     (iii) All machinery, tools and equipment of each member of the Company
          Group (other than inventories) which are reflected in the Review
          Report therefor delivered to the Investors under Section 3.12(i) or
          which have been acquired thereby since the Report Date are in a state
          of reasonable maintenance and repair (except for ordinary wear and
          tear) and are adequate for the conduct of the business thereof as
          currently operated.

     (iv) The inventories of each member of the Company Group which are
          reflected in the Review Report therefor delivered to the Investors
          under Section 3.12(i) were, on the Report Date, in good condition, and
          any inventories produced or acquired thereby after such date (to the
          extent not sold or otherwise disposed of in the ordinary course of
          business), are in good condition, are useable or useful in the
          ordinary course of the business thereof and are not in excess of
          reasonable requirements.

                                       17

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3.19 Entire Business

     There are no material facilities, services, assets or properties shared
     with any other entity, which are used in connection with the business
     operations of the Company Group, and all of the facilities, services,
     assets or properties owned by the Group Companies are sufficient to conduct
     its business as proposed to be conducted.

3.20 Compliance with Other Instruments

     None of the members of the Company Group is in, nor will the conduct of
     business of any of them as proposed to be conducted result in, any
     violation, breach or default of the Memorandum and Articles or any other
     constitutional documents (which include, as applicable, any articles of
     incorporation, by-laws, joint venture contracts and the like), or of any
     material respect of any term or provision of any mortgage, indenture,
     contract, agreement or instrument to which any such member of the Company
     Group is a party or may be bound, or of any provision of any judgment,
     decree, order, statute, rule or regulation applicable to or binding upon
     any of them. The execution, delivery and performance of and compliance with
     each of the Agreement and the Ancillary Agreements, and the consummation of
     the transactions contemplated thereby, will not result in any such
     violation, breach or default, or be in conflict with or constitute, with or
     without the passage of time or the giving of notice or both, either a
     default under the Memorandum and Articles or any other such constitutional
     documents, any such contract, agreement or instrument, or a violation of
     any statutes, laws, regulations or orders, or an event which results in the
     creation of any lien, charge or encumbrance upon any asset of the Company
     Group.

3.21 Interested Party Transactions

     No officer, director or shareholder, founder of the Company Group or any
     Affiliate of any of them has had, either directly or indirectly, any
     interest in (except less than 1% shareholdings for investment purposes in
     securities of publicly held and traded companies), or is an officer,
     director, employee or consultant of: (a) any person or entity which
     purchases, leases or borrows from or sells, licenses, leases, lends or
     furnishes to any member of the Company Group any goods, property,
     technology, intellectual or other property rights or services; or (b) any
     contract or agreement to which any member of the Company Group is a party
     or by which it may be bound or affected, except as set forth in Section
     3.21 of the Disclosure Schedule. All such contracts and agreements were
     made on terms and conditions as favorable to such member of the Company
     Group as, or more favourable to such member of the Company Group than,
     would have been obtainable by it at the time in a comparable arm's-length
     transaction with an unrelated party.

3.22 Intellectual Property Rights

     (i)  Each member of the Company Group owns or otherwise has the sufficient
          legal right or license to use all Intellectual Property necessary to
          permit the members of the Company Group to carry on their businesses
          as currently conducted and as proposed to be conducted. No claims are
          currently being asserted against any member of the Company Group, nor
          is any member of the Company Group aware of any threatened claim or
          demand, by any other Person (a) challenging or questioning the Company
          Group's validity, enforceability, ownership or use of any of the
          Intellectual Property owned or used by the Company Group or the
          validity or effectiveness of any license or similar

                                       18

<PAGE>

          agreement with respect thereto or (b) alleging any interference,
          infringement, misappropriation or unfair competition or trade
          practices.

     (ii) Section 3.22(ii) of the Disclosure Schedule sets forth a complete list
          of the registered rights to, registration applications of, and
          licenses under, any (a) trademarks, service marks and trade names; (b)
          patents; (c) copyrights; (d) domain names of each member of the
          Company Group.

     (iii) Each member of the Company Group has taken reasonable steps and
          measures to establish and preserve ownership of or right to use all
          Intellectual Property material to the operation of its business. Each
          member of the Company Group has taken reasonable steps to register,
          protect, maintain, and safeguard the Intellectual Property material to
          its business, including any Intellectual Property for which improper
          or unauthorized disclosure would impair its value or validity, and has
          executed appropriate nondisclosure and confidentiality agreements and
          made all appropriate filings, registrations and payments of fees in
          connection with the foregoing. There is no infringement or
          misappropriation by any other Person of any Intellectual Property of
          any member of the Company Group. No proceedings or claims in which any
          member of the Company Group alleges that any Person is infringing
          upon, or otherwise violating, any Intellectual Property of any member
          of the Company Group are pending, and none has been served, instituted
          or asserted by any member of the Company Group.

     (iv) Each member of the Company Group owns all rights in and to any and all
          Intellectual Property used or planned to be used by such member of the
          Company Group, or covering or embodied in any past, current or planned
          activity, service or product of such member of the Company Group,
          which Intellectual Property was made, developed, conceived, created or
          written by any consultant retained, or any employee employed, by such
          member of the Company Group. No former or current employee, and no
          former or current consultant, of any member of the Company Group has
          any rights in any Intellectual Property made, developed, conceived,
          created or written by the aforesaid employee or consultant during the
          period of his or her retention by such member of the Company Group
          which can be asserted against such member of the Company Group, and
          such member of the Company Group has no obligation to compensate any
          former or current employee for the use of any such Intellectual
          Property. Except as set forth on Section 3.22(iv) of the Disclosure
          Schedule, each former and present employee and consultant of each
          member of the Company Group has executed a Confidentiality, Assignment
          of Inventions and Non-Competition Agreement in substantially the form
          attached hereto as Exhibit D. None of the Company, the PRC Subsidiary
          or the Founder is aware that any of the employees employed, or any of
          the consultants retained by any member of the Company Group is in
          violation thereof.

     (v)  No Intellectual Property owned by any member of the Company Group is
          the subject of any security interest, lien, license or other Contract
          granting rights therein to any other Person. The Company Group has not
          (a) transferred or assigned, (b) granted an exclusive license to or
          (c) provided or licensed in source code form, any Intellectual
          Property owned by any member of the Company Group to any Person.

                                       19

<PAGE>

     (vi) To the Knowledge of the Company, no patent, invention, device,
          principle or any statute, law, rule, regulation, standard or code is
          pending or proposed which would restrict the ability of any member of
          the Company Group to use any of the Intellectual Property Rights used
          in the conduct of their business.

3.23 Labor Agreements and Actions; Employee Compensation

     (i)  Except as disclosed in Section 3.23 of the Disclosure Schedule, none
          of the members of the Company Group is a party to or is bound by any
          currently effective employment contract, deferred compensation
          agreement, bonus plan, incentive plan, profit sharing plan, retirement
          agreement, vacation, hospitalization, medical or other plan, policy,
          trust or arrangement or other employee compensation agreement.

     (ii) The Company is not aware that any of the Key Persons, senior officer
          or key employee, or that any group of key employees, intends to
          terminate their employment with the Company Group, nor does the
          Company Group have a present intention to terminate the employment of
          any of the foregoing. The employment of each of the Key Persons,
          senior officer and key employee of each member of the Company Group is
          terminable at the will of such member of the Company Group without
          giving rise to a claim for compensation or damages (other than a
          statutory severance or redundancy payment or statutory compensation
          for unfair dismissal). Each members of the Company Group has complied
          in all material respects with all Applicable Laws related to
          employment.

     (iii) None of the members of the Company Group has any liability (whether
          legally binding or not) to make any payment to or for the benefit of
          any employee, officer, consultant, independent contractor or agent in
          respect of past service, pension or the termination of the employment
          or engagement of that or any other person (including without
          limitation, payments for wrongful or unfair dismissal, loss of office
          or redundancy) that would have a Material Adverse Effect, other than
          in respect to current month payroll expenses and related deductions in
          relation to employee and employer contributions.

3.24 Benefit Plans

     (i)  None of the members of the Company Group has scheduled or agreed upon
          future increases of benefit levels (or creations of new benefits) with
          respect to any Benefit Plan, and no such increases or creation of
          benefits have been proposed or made the subject of representations to
          employees of the Company Group under circumstances which make such
          employees reasonably expect that such increases will be granted. No
          loan is outstanding between any member of the Company Group and any
          employee.

     (ii) Other than statutory social insurance plans operated under the
          Applicable Laws of the PRC, no member of the Company Group provides or
          is required to provide any retirement, social insurance, life
          insurance, medical, dental or other welfare benefits provided on
          ill-health, injury, death disability or on termination of employment
          (whether voluntary or involuntary) to any current or former employees,
          officers, consultants, independent contractors or agents of the
          Company Group.

                                       20

<PAGE>

     (iii) Each member of the Company Group has complied with all Applicable
          Laws in all material respects relating to any of the Benefit Plans,
          including by deducting and making all required contributions and
          payments required to be made by or on behalf of any employees of the
          Company Group to the relevant Governmental Authority, and no such
          deductions have been challenged or disallowed by any Governmental
          Authority or any employee of the Company Group. None of the members of
          the Company Group has been delinquent in making any payment to or for
          the benefit of any current or former employee, officer, consultant,
          independent contractor or agent with respect to statutory social
          insurance plans operated under the Laws of the PRC.

3.25 No State Assets

     Except as set forth in Section 3.25 of the Disclosure Schedule, none of the
     assets of any member of the Company Group constitute state-owned assets
     and, inasmuch, are not required to undergo any form of valuation under
     Applicable Law in the PRC governing the transfer of state-owned assets
     prior to the consummation of the transactions contemplated herein or in any
     of the Ancillary Agreements.

3.26 Conflict of Interest

     Section 3.26 of the Disclosure Schedule lists all existing or potential
     conflict of interest any Key Person may have with the members of the
     Company Group, and all measures that have been taken or are planned to be
     taken to address such conflicts.

3.27 Insurance

     Section 3.27 of the Disclosure Schedule contains copies of all of the
     insurance policies or programs of each of the members of the Company Group
     in effect as of the date hereof that have an insured amount of at least
     US$50,000,000, and indicates the insurer's name, policy number, expiration
     date, amount of coverage, type of coverage, annual premiums, exclusions and
     deductibles, that is in effect. All such policies are underwritten by
     financially sound and reputable insurers, and are sufficient to satisfy all
     Applicable Laws in all material respects. All such policies will remain in
     full force and effect and will not in any way be affected by, or terminate
     or lapse by reason of any of the transactions contemplated hereby.

3.28 Customers

     Section 3.28 of the Disclosure Schedule contains a true, complete and
     correct list of the ten largest customers of the Company Group taken as a
     whole in terms of sales during the six-month period from January 1, 2006 to
     June 30, 2006 and the twelve-month period ended December 31, 2005. There
     exists no actual or, to the Knowledge of the Company, threatened
     termination, cancellation or limitation of, or any adverse modification or
     change in, the business relationship of the members of the Company Group or
     their business with any customer or any group of customers whose purchases
     are individually or in the aggregate material to the business of the
     Company Group, and there exists no present condition or state of facts or
     circumstances that would cause a Material Adverse Effect or prevent the
     members of the Company Group from conducting their business after the
     consummation of the transactions contemplated by this Agreement, in
     substantially the same manner in which such business has heretofore been
     conducted.

                                       21

<PAGE>

3.29 Suppliers

     The total amount of silicon feedstock that has been delivered and will be
     delivered under the currently effective supply contracts during the
     financial years ending December 31, 2006 and 2007 is no less than 2,000
     tons. The weighted average price per kilogram of such silicon feedstock is
     no more than US$150.

3.30 Environmental Matters

     (i)  The property, assets and operations of the members of the Company
          Group are and have been in material compliance with all applicable
          Environmental Laws. No Hazardous Materials have been released, on or
          into any of the properties or premises of the Company and its
          Subsidiaries, including without limitation, the ground water, in
          contravention of Environmental Laws.

     (ii) None of the properties, assets or operations of any of the members of
          the Company Group is the subject of any governmental investigation
          evaluating whether (i) any remedial action is needed to respond to a
          release or threatened release of any Hazardous Materials into the
          environment or (ii) any release or threatened release of any Hazardous
          Materials into the environment is in contravention of any
          Environmental Law.

     None of the members of the Company Group has received any written notice or
     claim, nor to the Knowledge of the Company, there are pending or threatened
     lawsuits or proceedings against any of them with respect to violations of
     an Environmental Law or any release or threatened release of any Hazardous
     Materials into the environment.

3.31 Full Disclosure

     The Company, the PRC Subsidiary and the Founder have provided each of the
     Investors with all the information that such Investor has requested for
     deciding whether to consummate the transactions contemplated under this
     Agreement. None of this Agreement, any Ancillary Agreements or any other
     statements or certificates or other materials made or delivered, or to be
     made or delivered, to such Investor in connection herewith or therewith,
     contains any untrue statement of a material fact or omits to state a
     material fact necessary to make the statements herein or therein not
     misleading. No representation or warranty by the Company, the PRC
     Subsidiary or the Founder in this Agreement and no information or materials
     provided to such Investor in connection with its due diligence
     investigation of any member of the Company Group or the negotiation and
     execution of this Agreement and the Ancillary Agreements contains or will
     contain any untrue statement of a material fact or omits or will omit to
     state any material fact required to be stated therein or necessary in order
     to make the statement therein, in light of the circumstances in which they
     are made, not misleading.

     The Company, the PRC Subsidiary and the Founder acknowledge that each of
     the Investors is entering into this Agreement in reliance on the
     representations and warranties given herein and that the representations
     and warranties have been given with the intention of inducing the Investors
     to enter into this Agreement.

                                       22

<PAGE>

4.   REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

     Each of the Investors hereby severally but not jointly represents and
     warrants to the Company as of the date of this Agreement and as of the
     Closing that:

4.1  Authorization

     Such Investor has full power and authority to enter into this Agreement,
     and this Agreement, when executed and delivered by such Investor, will
     constitute its valid and legally binding obligation, enforceable in
     accordance with its terms except (i) as limited by applicable bankruptcy,
     insolvency, reorganization, moratorium, and other laws of general
     application affecting enforcement of creditors' rights generally, and (ii)
     as limited by laws relating to the availability of specific performance,
     injunctive relief, or other equitable remedies.

4.2  Purchase for Own Account

     This Agreement is made with such Investor in reliance upon such Investor's
     representation to the Company, which by such Investor's execution of this
     Agreement such Investor hereby confirms, that the Series B Preferred Shares
     to be acquired hereunder and the Ordinary Shares to be issued upon
     conversion of the Series B Preferred Shares (collectively, the
     "SECURITIES") will be acquired by such Investor for investment for such
     Investor's own account, not as a nominee or agent, and not with a view to
     the resale or distribution of any part thereof, and that such Investor has
     no present intention of selling, granting any participation in, or
     otherwise distributing the same. By executing this Agreement, each of the
     Investors further represents that it does not have any contract,
     undertaking, agreement or arrangement with any Person to sell, transfer or
     grant participations to such Person or to any third Person, with respect to
     any of the Securities.

4.3  No Public Market

     Such Investor understands that the Securities have not been, and will not
     be, registered under the Securities Act, that no public market now exists
     for the Securities, that the Company has made no assurances that a public
     market will ever exist for the Securities, and that the Securities may not
     be resold absent a registration under the Securities Act or an available
     exemption from the registration requirements of the Securities Act.

4.4  Investment Experience

     Such Investor acknowledges that it is able to bear the economic risk of
     this investment and has such knowledge and experience in financial or
     business matters that it is capable of evaluating the merits and risks of
     its investment in the Securities.

4.5  Disclosure of Information

     The Investors and their advisors have been furnished with all materials
     relating to the business, finances and operations of any member of the
     Company Group and materials relating to the securities which have been
     requested by the Investors or their advisors. The Investors and their
     advisors have been afforded the opportunity to ask questions of
     representatives of any member of the Company Group and have received
     answers to such questions, as the Investors deem necessary in connection
     with its decision to subscribe for the Series B Preferred Shares. For the

                                       23

<PAGE>

     avoidance of doubt, nothing in this Section 4.5 shall limit in any way the
     scope of the warranties set forth in Section 3 of this Agreement or the
     liability of the Company, the PRC Subsidiary or the Founder for breach
     thereof.

4.6  Legends

     Such Investor understands that the certificates evidencing the securities
     issued pursuant to this Agreement may bear the following legend:

     "These securities have not been registered under the Securities Act of
     1933, as amended. They may not be sold, offered for sale, pledged or
     hypothecated in the absence of a registration statement in effect with
     respect to the securities under such Act or an opinion of counsel
     satisfactory to the Company that such registration is not required or
     unless sold pursuant to Rule 144 of such Act."

5.   CONDITIONS OF THE INVESTORS' OBLIGATIONS AT THE CLOSING

The obligations of each Investor under this Agreement at the Closing are subject
to the fulfillment on or before the Closing of each of the following conditions
unless waived by each Investor with respect to itself; provided, however, that
any waiver of a condition shall not be deemed a waiver of any breach of any
representation, warranty, agreement, term or covenant or of any
misrepresentation by the Company, the PRC Subsidiary or the Founder, except to
the extent expressly so waived.

5.1  Representations and Warranties

     The representations and warranties of the Company, the PRC Subsidiary and
     the Founder contained in Section 3 shall be true, correct and complete in
     all material respects when made, and shall be true, correct and complete on
     and as of Closing at which the Investors are acquiring the Series B
     Preferred Shares with the same effect as though such representations and
     warranties had been made on and as of the date of the Closing.

5.2  Performance

     Each of the Company, the PRC Subsidiary and the Founder shall have
     performed and complied with all agreements, obligations and conditions
     contained in this Agreement in all material respects that are required to
     be performed or complied with by it on or before the Closing.

5.3  Compliance Certificate

     The Chief Executive Officer of the Company shall deliver to the Investors
     at the Closing a certificate stating that the condition specified in
     Section 5.1, 5.2, 5.5 and 5.19 have been fulfilled in all material respects
     and stating that there shall have been no Material Adverse Change since the
     Report Date.

5.4  Secretary's or Director's Certificate

     The Investors shall have received a certificate from the Company, dated as
     of the Closing Date and signed by the Secretary or a director of the
     Company, certifying (a) that the attached copies of the organizational
     documents of the Company and each of the members of the Company Group and
     the resolutions of the Board of Directors and/or shareholders (as
     appropriate) of the Company

                                       24

<PAGE>

     and the PRC Subsidiary approving this Agreement and the Ancillary
     Agreements and the transactions contemplated hereby and thereby, are all
     true, complete and correct and remain unamended and in full force and
     effect, (b) that the incumbency and specimen signature of each officer of
     the Company and the PRC Subsidiary executing each such document or any
     other document delivered in connection herewith or therewith on behalf of
     the Company, (c) that the attached copies of current business licenses of
     the Company and each of the Group Companies are all true, complete and
     correct and remain unamended and in full force and effect, and (d) that the
     attached copy of a good standing certificate for the Company is true,
     complete and correct.

5.5  Governmental Consents and Approvals

     Each of the Company, the PRC Subsidiary and the Founder shall have obtained
     all authorizations, approvals, waivers or permits of any competent
     Governmental Authority or regulatory body for the consummation of all of
     the transactions contemplated by this Agreement that are required in
     connection with the lawful issuance and sale of the Series B Preferred
     Shares pursuant to this Agreement, and all such authorizations, approvals,
     waivers and permits shall be effective as of the Closing.

5.6  Corporate Approval

     The Investors shall have received true, complete and correct copies of the
     resolutions of the Board of Directors and/or shareholders (as appropriate)
     of the Company and the PRC Subsidiary and such other agreements, schedules,
     exhibits, certificates, documents, financial information and filings which
     are reasonably required in connection with or relating to the transactions
     contemplated hereby, all in form and substance reasonably satisfactory to
     the Investors.

5.7  Consents From Third Parties

     Each of the Company, the PRC Subsidiary and the Founder shall have obtained
     any necessary third-party consents required in connection with or relating
     to the transaction contemplated hereby by virtue of Applicable Laws,
     contractual obligations or otherwise.

5.8  2006 Review Report

     The Company shall have, at the Company's expense, prepared and submitted to
     the Investors: (i) the Review Report, all prepared under IFRS and reviewed
     by the Auditor; and (ii) financial forecast for the seven months ending
     December 31, 2006, prepared and signed off by KPMG which shall be
     consistent with the 2006 Business Plan and Budget previously delivered to
     the Investors.

5.9  Due Diligence

     The Investors shall have completed and be satisfied with the results of all
     business, legal and financial due diligence, and any items requiring
     correction identified by any Investor shall have been corrected to the
     Investors' reasonable satisfaction. Without limiting the foregoing, the
     Investors shall have received from the Company all documents and other
     materials reasonably requested by the Investors for the purpose of
     examining and determining the rights of the Company, the PRC Subsidiary or
     any other members of the Company Group in and to any technology, products
     and Proprietary Assets now used, proposed to be used in, or necessary to
     the

                                       25

<PAGE>

     Company or the PRC Subsidiary's business as now conducted and proposed to
     be conducted, and the status of its ownership rights in and to all such
     technology, products and Proprietary Assets shall be reasonably
     satisfactory to the Investors.

5.10 Approval of the Investment Committee

     Each Investor's investment committee shall have approved the terms of the
     investment, including this Agreement and all ancillary or related
     agreements.

5.11 Proceedings and Documents

     All corporate and other proceedings in connection with the transactions
     contemplated at the Closing and all documents incident thereto shall be
     reasonably satisfactory in form and substance to the Investors, and each
     Investor shall have received all such counterpart original or other copies
     of such documents as it may reasonably request.

5.12 Subscription for the Series B Preferred Shares Permitted by Applicable Laws

     The subscription for the Series B Preferred Shares by the Investors
     hereunder and the consummation of the transactions contemplated hereby (a)
     shall not be prohibited by the Memorandum and Articles or any Applicable
     Laws, (b) shall not subject the Investors to any penalty or other onerous
     condition under or pursuant to any Applicable Law, and (c) shall be
     permitted by all Applicable Laws to which the Investors or the transactions
     contemplated by or referred to herein or in the other documents and
     agreements contemplated hereby are subject; and the Investors shall have
     received such certificates or other evidence as they may reasonably request
     to establish compliance with this condition.

5.13 Memorandum and Articles

     The Memorandum and Articles shall have been duly amended by all necessary
     action of the Company's board of directors and shareholders in
     substantially the form attached hereto as Exhibit A and such amendment
     shall be duly filed with and registered by the Registrar of Companies of
     the Cayman Islands within fifteen (15) days of the adoption of such
     amendment as required by the applicable Cayman Islands law.

5.14 Shareholders Agreement

     The Founder and the Company shall have entered into a Shareholders
     Agreement (the "SHAREHOLDERS AGREEMENT") in substantially the form attached
     hereto as Exhibit E, and such agreement shall be in full force and effect.

5.15 Opinion of the Company's Cayman Islands Counsel

     The Investors shall have received from Conyers Dill & Pearman, Cayman
     Islands counsel for the Company, an opinion, dated as of the Closing, in
     the form attached hereto as Exhibit F.

5.16 Opinion of the Company's PRC Counsel

     The Investors shall have received from Grandall Legal Group, PRC counsel
     for the Company, an opinion, dated as of the Closing, substantially in the
     form and to the effect of Exhibit G, and to

                                       26

<PAGE>

     such further effect as the Investors may reasonably request.

5.17 Confidentiality, Commitment and Non-Competition Agreement

     The Founder and Key Persons of each member of the Company Group with access
     to confidential information shall have executed a Confidentiality,
     Assignment of Inventions and Non-Competition Agreement dated on or before
     the Closing, in the form attached hereto as Exhibit D.

5.18 Registration Rights Agreement

     The Company shall have agreed to grant the Investors certain registration
     rights in accordance with the Amended and Restated Registration Rights
     Agreement (the "REGISTRATION RIGHTS AGREEMENT") in substantially the form
     attached hereto as Exhibit H.

5.19 No Litigation

     No action, suit, proceeding, claim, arbitration or investigation shall have
     been threatened or instituted against any of the Founder, the Company, the
     PRC Subsidiary, any other members of the Company Group or any Investor (a)
     seeking to restrain, prevent or change the transactions contemplated hereby
     or questioning the validity or legality of any of such transactions, or (b)
     which would, if resolved adversely to the Investors or the Company,
     severally or in the aggregate, cause a Material Adverse Effect.

5.20 No Material Adverse Change

     There shall not have occurred prior to the Closing any event or transaction
     reasonably likely to have a Material Adverse Effect (the "MATERIAL ADVERSE
     CHANGE").

5.21 Board Observers

     The Company shall have duly appointed each of the persons designated in
     writing by the Investors (excluding Tech Team Holdings Limited, Grand Gains
     International Limited and BOFA Capital Company Limited) at the Closing to
     be observers on the Board of Directors of the Company.

5.22 No Material Judgment or Order

     There shall not be on the Closing any judgment or order of a court of
     competent jurisdiction or any ruling of any governmental entity or
     authority or any condition imposed under any Applicable Law which, in the
     reasonable opinion of the Investors, would prohibit the subscription of the
     Series B Preferred Shares hereunder or subject the Investors to any penalty
     or other onerous condition under or pursuant to any Applicable Law if the
     Series B Preferred Shares were to be purchased hereunder or would cause a
     Material Adverse Effect.

5.23 Closing Condition Fulfilment Notice

     Upon fulfilment of all the closing conditions set forth in this Section 5,
     the Investors, through their legal counsel, shall have issued to the
     Company a closing condition fulfilment notice acknowledging that all the
     closing conditions set forth herein have been met.

                                       27

<PAGE>

6.   CONDITIONS OF THE COMPANY'S, THE PRC SUBSIDIARY'S AND THE FOUNDER'S
     OBLIGATIONS AT THE CLOSING

The obligations of the Company, the PRC Subsidiary and the Founder among
themselves and to the Investors under this Agreement at the Closing are subject
to the fulfillment on or before the Closing of each of the following conditions
by each of the Investors:

6.1  Representations and Warranties

     The representations and warranties of the Investors contained in Section 4
     shall be true, correct and complete when made, and shall be true, correct
     and complete on and as of the Closing with the same effect as though such
     representations and warranties had been made on and as of the Closing.

6.2  Performance

     Each of the Investors shall have performed and complied with all
     agreements, obligations and conditions contained in this Agreement that are
     required to be performed or complied with by it on or before the Closing.

7.   COVENANTS

7.1  Covenants Until Closing

     The Company, the PRC Subsidiary and the Founder covenant and agree with the
     Investors that, at all times from and after the date hereof until the
     Closing, the Company, the PRC Subsidiary and the Founder will comply with
     the following covenants and provisions, except to the extent the Investors
     may otherwise consent in writing.

     (i)  Governmental Authorization; Maintenance of Licenses

          The Company and the PRC Subsidiary will, and the Founder will procure
          the members of the Company Group to (i) proceed diligently and in good
          faith and use all commercially reasonable efforts, as promptly as
          practicable, to obtain all consents, approvals or actions of, to make
          all filings with and to give all notices to Governmental Authorities
          required of the Company or any Subsidiary to consummate the
          transactions contemplated hereby, (ii) provide such other information
          and communications to such Governmental Authorities as the Investors
          or such Governmental Authorities may reasonably request in connection
          with the consummation of the transactions contemplated hereby, (iii)
          cooperate with the Investors in obtaining as promptly as practicable
          all consents, approvals or actions of, making all filings with and
          giving all notices to Governmental Authorities required of the
          Investors to consummate the transactions contemplated hereby, and (iv)
          ensure that all Licenses are, and will remain, in full force and
          effect at all times following the Closing.

     (ii) Dividends

          The Company and the PRC Subsidiary will not, and the Founder will
          procure the Company and the PRC Subsidiary not to, declare or issue
          any dividends for any class of shares of the Company and the PRC
          Subsidiary.

                                       28

<PAGE>

     (iii) Major Transactions

          The members of the Company Group shall not, and the Founder shall
          ensure that the members of the Company Group shall not, effect any
          merger, consolidation, scheme of arrangement, recapitalization, fund
          raising or sale of all or substantially all of the assets of any
          member of the Company Group without obtaining the consent of the
          Investors prior to the actual execution of such activities. For the
          avoidance of doubt, any business transactions that are in the ordinary
          course of business of the Company and are consistent with the
          Company's past practice are not subject to the foregoing restriction.

     (iv) Notice and Cure

          The members of the Company Group shall conduct their business in a
          manner, and shall otherwise use all reasonable efforts, so as to
          ensure that the representations and warranties set forth in Section 3
          hereof shall continue to be true and correct on and as of the Closing
          Date as if made on and as of the Closing. The Company, the PRC
          Subsidiary and the Founder will notify the Investors promptly in
          writing of, and will as soon as practicable provide the Investors with
          true and complete copies of any and all information or documents
          relating to, and will use all best efforts to cure before the Closing,
          any event, transaction or circumstance occurring after the date of
          this Agreement that causes or will cause any covenant or agreement of
          any such party under this Agreement to be breached or that renders or
          will render untrue any representation or warranty of any such party
          contained in this Agreement as if the same were made on or as of the
          date of such event, transaction or circumstance. The Company also will
          notify the Investors promptly in writing of, and will use all best
          efforts to cure, before the Closing, any violation or breach of any
          representation, warranty, covenant or agreement made by the Company in
          this Agreement, whether occurring or arising before, on or after the
          date of this Agreement. No notice given pursuant to this Section
          7.1(iv) shall have any effect on the representations, warranties,
          covenants or agreements contained in this Agreement for purposes of
          determining satisfaction of any condition contained herein or shall in
          any way limit the Investors' right to seek any remedy available at law
          or in equity.

     (v)  Fulfillment of Conditions

          The Company, the PRC Subsidiary and the Founder will execute and
          deliver at or prior to the Closing this Agreement and each of the
          Ancillary Agreements that they are required hereby to execute and
          deliver as a condition to the Closing, and will take all commercially
          reasonable steps necessary or desirable and proceed diligently and in
          good faith to satisfy the other conditions to the obligations of the
          Investors contained in this Agreement and will not permit the Company
          or any member of the Company Group to take or fail to take any action
          that could reasonably be expected to result in the nonfulfillment of
          any such condition.

     (vi) Memorandum and Articles

          The Founder hereby agrees to take, or cause to be taken, all actions
          and to do, or cause to be done, all things necessary under the
          Applicable Law to abide by the terms of the

                                       29

<PAGE>

          Memorandum and Articles, as may be amended from time to time, and to
          cause each Group Company to conduct its business as if bound by the
          Memorandum and Articles. The Founder further agrees to execute and
          deliver, or cause to be executed and delivered, such other documents,
          certificates, agreements and other writings and to take, or cause to
          be taken, such other actions as reasonably deemed necessary in order
          to consummate or implement expeditiously the provisions of the
          Memorandum and Articles, each as may be amended from time to time.

7.2  Covenants After Closing

     The Company, the PRC Subsidiary and the Founder covenant and agree with the
     Investors that, at all times from and after the date hereof, they will
     comply with the following covenants.

     (i)  Use of Proceeds

          Without the Investors' prior written consent, the Subscription Price
          paid by the Investors to the Company shall be only used by the Company
          to implement business expansion, make capital expenditures and meet
          general working capital needs of the PRC Subsidiary within the
          business scope of solar energy in accordance with the Business Plan of
          the Company and/or the PRC Subsidiary approved by the Investors. For
          the avoidance of doubt, the Company shall not use any of the
          Subscription Price to make payment for any indebtedness of any Group
          Company.

     (ii) Disclosure of Major Events

          The Company covenants to disclose to all of its shareholders all major
          events that may lead to liabilities of any of the members of the
          Company Group, including without limitation, legal proceedings
          threatened or taken against the Company Group.

     (iii) Internal Control and Financial Management

          The Company and the PRC Subsidiary shall use their best efforts to
          adopt an internal control system that ensures the separation of
          internal audit and financial control of the Company and the PRC
          Subsidiary, respectively.

     (iv) Regulatory Compliance

          The Company, the PRC Subsidiary and the Founder shall cause all
          shareholders of the Company and the PRC Subsidiary (or any successor
          entity) to timely complete all required registrations and other
          procedures with applicable governmental authorities, including without
          limitation the State Administration of Foreign Exchange, if and when
          required pursuant to applicable law, and shall ensure that at all
          times the Company, the PRC Subsidiary and their respective
          shareholders are in compliance with such requirements and that there
          is no barrier to repatriation of profits, dividends and other
          distributions from the PRC Subsidiary (or any successor entity) to the
          Company.

     (v)  Hiring of Chief Operating Officer

          Within six (6) months following the Closing, the Company shall hire,
          and the Founder shall take, or cause to be taken, all actions and
          shall do, or cause to be done, all things

                                       30
<PAGE>

          that are necessary, desirable or appropriate to cause the Company to
          hire a Chief Operating Officer of international and professional
          standard. The Investors agree to assist the Company in such hiring
          process.

     (vi) Key Man Insurance

          Within ninety (90) days following the Closing, the Company shall
          obtain key man insurance policy for the Founder, the terms and
          conditions of which shall be to the reasonable satisfaction of the
          Investors.

     (vii) PRC Matters

          (a)  Within ninety (90) days following the Closing, the Company shall
               obtain valid titles to all land and buildings located on such
               land which are used in the conduct of business by the Company
               Group, and enter into valid and binding land use right transfer
               agreements to acquire such land if necessary.

          (b)  Within ninety (90) days following the Closing, the Company shall
               procure the PRC Subsidiary to obtain all permits, certificates,
               authorizations and approvals required under any PRC environmental
               laws, regulations, ordinance and orders in connection with the
               business operations of the PRC Subsidiary.

     (viii) Unless the Board of Directors otherwise approves, including the
          consent of the Investor Director which shall not be unreasonably
          withheld, the Company shall commence preparation work for a Qualified
          IPO in the last quarter of 2006 and procure a formal mandate to be
          signed with one or more internationally recognized investment banks
          with respect to a Qualified IPO on the stock exchanges in the US no
          later than December 31, 2006.

8.   CONFIDENTIALITY

8.1  Disclosure of Terms

     Each party hereto agrees that it will maintain the confidentiality of the
     terms and conditions of this Agreement, all exhibits and schedules attached
     hereto (collectively, the "FINANCING TERMS") and the transactions
     contemplated hereby of the Company; provided, however, such obligation of
     confidentiality shall not apply to (i) information which was in the public
     domain or otherwise known to the relevant party before it was furnished to
     it by another party hereto or, after it was furnished to that party,
     entered the public domain otherwise than as a result of (1) a breach by
     that party of this Section 8.1 or (2) a breach of a confidentiality
     obligation by the disclosing party, where the breach was known to that
     party; (ii) information the disclosure of which is necessary in order to
     comply with applicable law, the order of any court, the requirements of a
     stock exchange or other governmental or regulatory authority or to obtain
     tax or other clearances or consents from any relevant authority; (iii)
     information disclosed by the Investors to a bona fide proposing purchaser
     of any Series B Preferred Shares, (iv) information disclosed by the parties
     hereto to their respective directors, managers, officers, employees,
     partners, accountants and attorneys where such Persons or entities are
     under appropriate nondisclosure obligation to the relevant party; or (v)
     any disclosure by each Investor to such Investor's and/or fund manager's
     and/or its Affiliate's legal counsel, fund manager, auditor, insurer,
     accountant, consultant or to any officer,

                                       31

<PAGE>

     director, general manager, limited partner, its fund manager, shareholder,
     investment counsel or advisor, or employee of such Investor and/or its
     Affiliates; provided, however, that any counsel, auditor, insurer,
     accountant, consultant, officer, director, general partner, limited
     partner, fund manager, shareholder, investment counsel or advisor, or
     employee shall be advised of the confidential nature of the information or
     are under appropriate non-disclosure obligation imposed by professional
     ethics, law or otherwise; and (vi) any disclosure of information by any
     Investor for fund and inter-fund reporting purposes.

8.2  Press Releases

     Notwithstanding any other provision of this Section 8, with respect to the
     transactions contemplated under this Agreement, within sixty (60) days
     after the Closing, the Company may issue a press release through any media
     channels, including industrial conferences, disclosing the existence of
     this Agreement and the transactions contemplated hereunder, provided that
     such press release does not disclose the Financing Terms and is in a form
     approved by the Investors. Any communication with the media or press
     release (via any medium, including industrial conferences) that uses an
     Investor's trade name or otherwise refers to an Investor's participation or
     involvement with the Company Group shall be subject to the prior written
     approval of the Investors prior to the release or use of such communication
     or press release.

8.3  OTHER INFORMATION

     The provisions of this Section 8 shall survive the termination of this
     Agreement and shall be in addition to, and not in substitution for, the
     provisions of any separate nondisclosure agreement executed by any of the
     parties hereto with respect to the transactions contemplated hereby.

9.   MISCELLANEOUS

9.1  Survival

     The warranties, representations and covenants of the Company, the PRC
     Subsidiary, the Founder and each of the Investors contained in or made
     pursuant to this Agreement and the indemnity given by the Company, the PRC
     Subsidiary and the Founder pursuant to Section 9.2 shall survive the
     execution and delivery of this Agreement and the Closing, and shall in no
     way be affected by any investigation of the subject matter thereof made by
     or on behalf of any of the Investors or the Company.

9.2  Indemnity

     (i)  The Company, the PRC Subsidiary and the Founder agree to, jointly and
          severally, indemnify and hold harmless any Investor and such
          Investor's directors, officers, employees, Affiliates, agents and
          permitted assigns (each, an "INDEMNITEE"), against any and all
          Indemnifiable Losses to such Indemnitee, directly or indirectly, as a
          result of, or based upon or arising from any inaccuracy in or breach
          of nonperformance of any of the representations, warranties, covenants
          or agreements made by the Company, the PRC Subsidiary and the Founder
          in or pursuant to this Agreement. For purposes of this Section,
          "INDEMNIFIABLE LOSS" means, with respect to any Indemnitee, any
          action, cost, damage, disbursement, expense, liability, loss,
          deficiency, diminution in value, obligation, penalty or settlement of
          any kind or nature, whether foreseeable or

                                       32

<PAGE>

          unforeseeable, including, but not limited to, (i) interest or other
          carrying costs, penalties, legal, accounting and other professional
          fees and expenses reasonably incurred in the investigation,
          collection, prosecution and defense of claims and amounts paid in
          settlement, that may be imposed on or otherwise incurred or suffered
          by such Indemnitee and (ii) any taxes that may be payable by such
          Indemnitee as a result of the indemnification of any Indemnifiable
          Loss hereunder.

     (ii) The Founder shall indemnify, defend and hold harmless the Company, any
          Investor and their respective directors, officers, employees,
          Affiliates, agents and permitted assigns, against any and all
          Indemnifiable Losses to such Person, directly or indirectly resulting
          from, arising out of or relating to any tax or other obligations as a
          result of the Company's purchase of a 72.41% equity interest in the
          PRC Subsidiary from Liuxin Industrial Limited at US$1.00.

     (iii) The Investors shall indemnify, severally but not jointly, defend and
          hold harmless the Company, the PRC Subsidiary and the Founder, their
          respective directors, officers, employees, Affiliates, agents and
          permitted assigns, against any and all Indemnifiable Losses to such
          Person, directly or indirectly resulting from, arising out of or
          relating to any inaccuracy in or breach of nonperformance of any of
          the representations, warranties, covenants or agreements made by such
          Investor.

          Notwithstanding anything contained herein to the contrary, the
          indemnification obligations of the Investors pursuant to this Section
          9.2(iii) hereof shall expire at Closing.

9.3  Successors and Permitted Assigns

     Except as otherwise provided herein, (i) the terms and conditions of this
     Agreement shall inure to the benefit of and be binding upon the respective
     successors and permitted assigns of the parties hereto whose rights or
     obligations hereunder are affected by such terms and conditions; (ii)
     except or otherwise provided herein, this Agreement, and the rights and
     obligations herein may be assigned by any Investor to any Affiliate of such
     Investor, but not to any other person without the prior written consent of
     the Company; and (iii) the Founder may not assign any of his rights or
     delegate any of its obligations under this Agreement without the prior
     written consent of each Investor. Subject to Section 9.2 above, nothing in
     this Agreement, express or implied, is intended to confer upon any party
     other than the parties hereto or their respective successors and permitted
     assigns any rights, remedies, obligations, or liabilities under or by
     reason of this Agreement, except as expressly provided in this Agreement.

9.4  Governing Law

     This Agreement shall be governed by and construed under the laws of Hong
     Kong, without regard to principles of conflicts of law thereunder.

9.5  Counterparts

     This Agreement may be executed in two or more counterparts, each of which
     shall be deemed an original, but all of which together shall constitute one
     and the same instrument.

9.6  Titles and Subtitles

                                       33

<PAGE>

     The titles and subtitles used in this Agreement are used for convenience
     only and are not to be considered in construing or interpreting this
     Agreement.

9.7  Notices

     Any and all notices required or permitted under this Agreement shall be
     given in writing in English and shall be provided by one or more of the
     following means and shall be deemed to have been duly given (a) if
     delivered personally, when received, (b) if transmitted by facsimile, on
     the date of transmission with receipt of a transmittal confirmation, or (c)
     if by international courier service, on the fourth (4th) Business Day
     following the date of deposit with such courier service, or such earlier
     delivery date as may be confirmed in writing to the sender by such courier
     service.

9.8  Administrative Fee and Other Expenses

     The Company shall bear its own costs in connection with this Agreement. At
     the Closing, the Company shall also pay all costs and expenses reasonably
     incurred by the Investors in connection with the negotiation, execution,
     delivery and performance of this Agreement, the Ancillary Agreements and
     the transactions contemplated hereby and thereby through the date of the
     Closing, including the expenses of counsel and other professional advisors
     to the Investors, up to a maximum amount of US$100,000 which the Investors
     are entitled to deduct from payment of the Subscription Price at Closing.
     If any action at law or in equity is necessary to enforce or interpret the
     terms of this Agreement, the prevailing party shall be entitled to
     reasonable attorney's fees, costs and necessary disbursements in addition
     to any other relief to which such party may be entitled.

9.9  Amendments and Waivers

     Any term of this Agreement may be amended and the observance of any term of
     this Agreement may be waived (either generally or in a particular instance
     and either retroactively or prospectively), only by an instrument signed by
     (i) the Company, (ii) the Founder, and (iii) the holders of at least two
     thirds (2/3) of the Series B Preferred Shares then outstanding or to be
     subscribed as set forth in Schedule A of this Agreement. Notwithstanding
     the foregoing, in the case of a proposed amendment or waiver of Section
     2.1(iii) or Schedule A of this Agreement, such amendment or waiver shall
     only be effective if an instrument is signed by each party to the
     Agreement.

9.10 Severability

     If one or more provisions of this Agreement are held to be unenforceable
     under any Applicable Law, such provision shall be excluded from this
     Agreement and the balance of the Agreement shall be interpreted as if such
     provision were so excluded and shall be enforceable in accordance with its
     terms.

9.11 Entire Agreement

     This Agreement and the documents referred to herein, together with all
     schedules and exhibits hereto and thereto, constitute the entire agreement
     among the parties and no party shall be liable or bound to any other party
     in any manner by any warranties, representations, or covenants except as

                                       34

<PAGE>

     specifically set forth herein or therein; provided, however, that nothing
     in this Agreement or any Ancillary Agreement shall be deemed to terminate
     or supersede the provisions of any confidentiality and nondisclosure
     agreements executed by the parties hereto prior to the date of this
     Agreement, all of which agreements shall continue in full force and effect
     until terminated in accordance with their respective terms.

9.12 Dispute Resolution

(i)  Any dispute, controversy or claim arising out of or relating to this
     Agreement, or the interpretation, breach, termination or validity hereof,
     shall be resolved through consultation. Such consultation shall begin
     immediately after one party hereto has delivered to the other party hereto
     a written request for such consultation. If within thirty (30) days
     following the date on which such notice is given the dispute cannot be
     resolved, the dispute shall be submitted to arbitration upon the request of
     either party with notice to the other.

(ii) The arbitration shall be conducted in Hong Kong under the auspices of the
     Hong Kong International Arbitration Centre (the "CENTRE"). There shall be
     three arbitrators. Each party hereto shall each select one arbitrator
     within thirty (30) days after giving or receiving the demand for
     arbitration. Such arbitrators shall be freely selected, and the parties
     shall not be limited in their selection to any prescribed list. The
     Chairman of the Centre shall select the third arbitrator, who shall be
     qualified to practice law in Hong Kong. If either party does not appoint an
     arbitrator who has consented to participate within thirty (30) days after
     selection of the first arbitrator, the relevant appointment shall be made
     by the Chairman of the Centre.

(iii) The arbitration proceedings shall be conducted in English. The arbitration
     tribunal shall apply the Arbitration Rules of the Centre in effect at the
     time of the arbitration. However, if such rules are in conflict with the
     provisions of this Section 9.12, including the provisions concerning the
     appointment of arbitrators, the provisions of this Section 9.12 shall
     prevail.

(iv) The arbitrators shall decide any dispute submitted by the parties to the
     arbitration strictly in accordance with the substantive law of Hong Kong
     and shall not apply any other substantive law.

(v)  Each party hereto shall cooperate with the other in making full disclosure
     of and providing complete access to all information and documents requested
     by the other in connection with such arbitration proceedings, subject only
     to any confidentiality obligations binding on such party.

(vi) The award of the arbitration tribunal shall be final and binding upon the
     disputing parties, and either party may apply to a court of competent
     jurisdiction for enforcement of such award.

(vii) Either party shall be entitled to seek preliminary injunctive relief, if
     possible, from any court of competent jurisdiction pending the constitution
     of the arbitral tribunal.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK]

                                       35

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                        COMPANY:

                                        LDK SOLAR CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                        Attention: Mr. Peng Xiaofeng & Mr. Shao
                                                   Yonggang
                                        Facsimile: (86-21) 6350-8707

<PAGE>

                                        PRC SUBSIDIARY:

                                        JIANGXI LDK SOLAR HI-TECH CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        Hi-tech Industrial Park
                                        Xinyu City, Jiangxi Province
                                        People's Republic of China

                                        Attention: Mr. Peng Xiaofeng
                                        Facsimile: (0790) 6860-085
<PAGE>

                                        FOUNDER:

                                        PENG XIAOFENG

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001
<PAGE>

                                        INVESTOR:

                                        FINANCIERE NATEXIS SINGAPORE 4 PTE, LTD.

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin)
                                        Facsimile: (86-21) 6217-3742
<PAGE>

                                        INVESTOR:

                                        SHINE FIELD INVESTMENTS LIMITED

                                        By: /s/ Chen Lu
                                           -------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 957
                                        Offshore Incorporations Centre
                                        Road Town, Tortola, BVI

                                        c/o Petrius Lui or Ignatius Seu
                                        41st Floor Jardine House
                                        1 Connaught Place
                                        Hong Kong

                                        Attention: Petrius Lui or Ignatius Seu
                                        Facsimile: (852) 2111-3299
<PAGE>

                                        INVESTOR:

                                        CDH SOLARFUTURE LIMITED

                                        By: /s/ Yan Huang
                                            ------------------------------------
                                        Name: Yan Huang
                                        Capacity: Director

                                        Address:

                                        Level 30, Six Battery Road
                                        Singapore 049909

                                        Attention: Mr. Lew Kiang Hua
                                        Facsimile: (65) 6550 9898

<PAGE>

                                        INVESTOR:

                                        CHF WAFER COMPANY LIMITED

                                        By: /s/ Min Chen
                                            ------------------------------------
                                        Name: Min Chen
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 173, Kingston Chamber
                                        Road Town, Tortola
                                        British Virgin Islands

                                        c/o China Renaissance Capital Investment
                                        Suites 305-307
                                        St George's Building
                                        2 Ice House Street, Central
                                        Hong Kong

                                        Attention: Hung Shih
                                        Facsimile: (852) 2521-8023
<PAGE>

                                        INVESTOR:

                                        CHINA ENVIRONMENT FUND 2004, LP.

                                        By: /s/ Hua Cao
                                            ------------------------------------
                                        Name: Hua Cao
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 908
                                        George Town, Cayman Islands

                                        c/o Tsinghua Venture Capital Management
                                        A2302, SP Tower, Tsinghua Science Park
                                        Beijing, China 100084

                                        Attention: Dr. Catherine Cao
                                        Facsimile: (86-10) 8215-1150
<PAGE>

                                        INVESTOR:

                                        JAFCO ASIA TECHNOLOGY FUND III

                                        By: /s/ Vincent Chan Chun Hung
                                            ------------------------------------
                                        Name: Vincent Chan Chun Hung
                                        Capacity: Attorney

                                        Address of registered office:

                                        c/o Walkers SPV Limited
                                        P.O. Box 908GT, Mary Street
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        Notice address:

                                        c/o JAFCO Investment (Asia Pacific) Ltd.
                                        6 Battery Road
                                        #42-01 Singapore 049909

                                        Attention: The President
                                        Facsimile: (65) 6221-3690

                                        With a copy to:

                                        JAFCO Investment (Hong Kong) Ltd.
                                        30/F, Two IFC, 8 Finance Street,
                                        Central, Hong Kong

                                        Attention: General Manager
                                        Facsimile: (852) 2536-1979

<PAGE>

                                        INVESTOR:

                                        MUS ROOSEVELT CHINA PACIFIC FUND L.P.

                                        By: /s/ Jun Otsuka
                                            ------------------------------------
                                        Name: Jun Otsuka
                                        Capacity: Managing Direcotr

                                        Address of registered office:

                                        c/o MUS Roosevelt Capital Partners, Ltd.
                                        Offshore Incorporations (Cayman) Limited
                                        Scotia Centre 4/F
                                        P.O. Box 2804
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        With a copy to:

                                        Mitsubishi UFJ Securities (HK) Capital,
                                        Limited
                                        11/F, AIG Tower
                                        One Connaught Road
                                        Central, Hong Kong

                                        Attention: Mr. Jun Otsuka
                                                   (Managing Director)
                                        Facsimile: (852) 2865-6214

<PAGE>

                                        INVESTOR:

                                        TECH TEAM HOLDINGS LIMITED

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Address:

                                        2nd Floor, Abbott Building, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        299 Bisheng Road
                                        Suite 13-101
                                        Pudong, Shanghai
                                        China 201204

                                        Attention: Jerry Jiyi WENG
                                        Facsimile: (86-21) 5080-1333

<PAGE>

                                        INVESTOR:

                                        GRAND GAINS INTERNATIONAL LIMITED

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Registered address:

                                        Palm Grove House, P.O. Box 438, Road
                                        Town, Tortola, British Virgin Islands

                                        Notice address:

                                        32/F, Tower of China Merchants Bank
                                        No. 7088 Shennan Road
                                        Futian, Shenzhen 518040

                                        Attention: Li Hongwei
                                        Facsimile: (86-755) 8319-5157

<PAGE>

                                        INVESTOR:

                                        BOFA CAPITAL COMPANY LIMITED

                                        By: /s/ Lingyong Peng
                                            ------------------------------------
                                        Name: Lingyong Peng
                                        Capacity: Authorized Signatory

                                        Registered address:

                                        c/o Maples Finance BVI Limited, P.O. Box
                                        173, Kingston Chambers, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        Room 16D
                                        Building 8
                                        Shijicheng 3 Term
                                        Haidian District
                                        Beijing, P.R.China

                                        Attention: Mr. Peng Lingyong
                                        Facsimile: (86-10) 8889 1502

<PAGE>

                             SCHEDULE OF DEFINITIONS

"2006 BUSINESS PLAN AND BUDGET" has the meaning set forth in Section 3.9.

"2006 AUDITED INCOME STATEMENT" means the consolidated income statement of the
Company Group for the financial year ending December 31, 2006 audited and
approved by the Auditor in conformity with IFRS or US GAAP (which shall be the
same as the relevant accounting standards used in connection with the Company's
Qualified IPO).

"2006 NET EARNINGS" means the US Dollar equivalent (based on the then applicable
daily USD/CNY exchange rate set by the People's Bank of China and published by
the State Administration of Foreign Exchange at www.safe.gov.cn for the Business
Day immediately prior to December 31, 2006, rounded to the nearest ten
thousandth USD) of the Net Earnings (as defined below) of the Company Group that
is stated in Renminbi as determined from the 2006 Audited Income Statement.

"2006/2007 AUDITED INCOME STATEMENT" means the consolidated income statement of
the Company Group for the financial period between July 1, 2006 and June 30,
2007 audited and approved by the Auditor in conformity with IFRS or US GAAP
(which shall be the same as the relevant accounting standards used in connection
with the Company's Qualified IPO).

"2006/2007 NET EARNINGS" means the US Dollar equivalent (based on the then
applicable daily USD/CNY exchange rate set by the People's Bank of China and
published by the State Administration of Foreign Exchange at www.safe.gov.cn for
the Business Day immediately prior to June 30, 2007, rounded to the nearest ten
thousandth USD) of the Net Earnings (as defined below) of the Company Group that
is stated in Renminbi as determined from the 2006/2007 Audited Income Statement.

"2007 AUDITED INCOME STATEMENT" means the consolidated income statement of the
Company Group for the financial year ending December 31, 2007 audited and
approved by the Auditor in conformity with IFRS or US GAAP (which shall be the
same as the relevant accounting standards used in connection with the Company's
Qualified IPO).

"2007 NET EARNINGS" means the US Dollar equivalent (based on the then applicable
daily USD/CNY exchange rate set by the People's Bank of China and published by
the State Administration of Foreign Exchange at www.safe.gov.cn for the Business
Day immediately prior to December 31, 2007, rounded to the nearest ten
thousandth USD) of the Net Earnings (as defined below) of the Company Group that
is stated in Renminbi as determined from the 2007 Audited Income Statement

"AFFILIATE" means, with respect to any given Person, a Person that Controls, is
Controlled by, or is under common Control with the given Person.

"AGREEMENT" has the meaning ascribed to it in the preamble.

"ANCILLARY AGREEMENTS" means, collectively, the Shareholders Agreement, the
Registration Rights Agreement, the Memorandum and Articles and any other
document or agreement contemplated by this Agreement.

"ANNUAL BUSINESS PLAN AND BUDGET" means the annual business plan and budget of
the Company and/or

                                     -DS 1-

<PAGE>

the PRC Subsidiary, as may be amended from time to time.

"APPLICABLE LAW" means, with respect to any Person, all applicable provisions of
all (a) constitutions, treaties, statutes, laws (including the common law),
codes, rules, regulations, ordinances or orders of any Governmental Authority,
(b) Governmental Approvals and (c) orders, decisions, injunctions, judgments,
awards and decrees of or agreements with any Governmental Authority.

"AUDITOR" means an independent accounting firm duly appointed by the Board of
Directors to serve as the Company's auditor, being one of the "Big-4"
international accounting firms.

"BOOKS AND RECORDS" has the meaning set forth in Section 3.10.

"BUSINESS DAY" means any day other than a Saturday, Sunday or other day on which
commercial banks in the PRC, Hong Kong or New York are authorized or required by
law or governmental order to close.

"BUSINESS OR CONDITIONS OF THE COMPANY GROUP" means the business, condition
(financial or otherwise), results of operation and assets and properties of the
Company Group taken as a whole.

"CENTER" means the Hong Kong International Arbitration Centre.

"CLOSING" has the meaning set forth in Section 2.2.

"COMPANY" has the meaning ascribed to it in the preamble.

"COMPANY GROUP" means the Company and all Group Companies, taken together.

"COMPANY OPTION PLAN" means an employee stock option plan adopted by established
by the Company on July 28, 2006 pursuant to which stock options may be granted
out of the Company Option Pool.

"COMPANY OPTION POOL" means an aggregate of 8,758,000 Ordinary Shares which
shall be reserved prior to the Closing, representing up to ten percent (10%) of
the total number of issued and outstanding shares of the Company on an as
converted and fully diluted basis immediately after the Closing, as may be
adjusted from time to time pursuant to the Company Option Plan, to be issued to
the Key Persons, officers, directors, consultants, employees or other service
providers of the Company from time to time pursuant to the Company Option Plan.

"COMPETITOR" means any Person that may be reasonably deemed to be engaged in any
business that develops, manufactures or produces solar grade silicon ingots and
wafers.

"CONTRACT" means any agreement, arrangement, bond, commitment, franchise,
indemnity, indenture, instrument, lease, license or binding understanding,
whether or not in writing.

"CONTROL" means, when used with respect to any Person, the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms
"Controlling" and "Controlled" have meanings correlative to the foregoing.

"CONVERSION RATE" means the effective conversion rate, initially at 1:1 and
subject to adjustment as provided in this Agreement and the Memorandum and
Articles, at which the Series A Preferred Shares and the Series B Preferred
Shares, respectively, are converted into Ordinary Shares in accordance with the
Memorandum and Articles.

                                     -DS 1-

<PAGE>

"CONVERSION SHARES" means shares issuable upon conversion of the Series B
Preferred Shares issued under this Agreement.

"DISCLOSURE SCHEDULE" has the meaning set forth in Section 3.

"ENVIRONMENT LAWS" means any applicable present national, territorial,
provincial, foreign or local law, common law doctrine, rule, order, decree,
judgment, injunction or regulation relating to environmental matters, including
those pertaining to land use, air, soil, surface water, ground water (including
the protection, cleanup, removal, remediation or damage thereof), public or
employee health or safety, together with any other laws (national, territorial,
provincial, foreign or local) relating to emissions, discharges, releases or
threatened releases of any pollutant or contaminant including without
limitation, medical, chemical, biological, biohazardous or radioactive waste and
materials, into ambient air, land, surface water, ground water, personal
property or structures.

"FINAL OWNERSHIP" has the meaning ascribed to it in Section 2.4(i)(a) hereof.

"FINANCING TERMS" has the meaning ascribed to it in Section 8.1 hereof.

"FOUNDER" has the meaning ascribed to it in the preamble.

"GOVERNMENTAL AUTHORITY" means any court, tribunal, arbitrator, authority,
agency, commission, official or other instrumentality of the PRC, any foreign
country or any domestic or foreign state, county, city or other political
subdivision including but not limited to MOFCOM and SAIC and their respective
local and provincial branches or departments.

"GROUP COMPANY" means a Person (other than a natural person) that is a
Subsidiary of the Company.

"GUARANTEED 2006 NET EARNINGS" means the guaranteed Net Earnings of the Company
Group for the financial year ending December 31, 2006, being an amount that is
US$30,000,000.

"GUARANTEED 2006/2007 NET EARNINGS" means the guaranteed Net Earnings of the
Company Group for the financial period between July 1, 2006 and June 30, 2007,
being an amount that is US$60,000,000.

"GUARANTEED 2007 NET EARNINGS" means the guaranteed Net Earnings of the Company
Group for the financial year ending December 31, 2007, being an amount that is
US$100,000,000.

"HAZARDOUS MATERIALS" means any chemical pollutant, contaminant, pesticide,
petroleum or petroleum product or by-product, radioactive substance, solid
waste, special, dangerous or toxic waste, hazardous or toxic substance, chemical
or material regulated, limited or prohibited under any Environmental Law.

"HONG KONG" means the Special Administrative Region of Hong Kong.

"IFRS" means the International Financial Reporting Standards promulgated by the
International Accounting Standards Board (IASB) (which includes standards and
interpretations approved by the IASB and International Accounting Principles
issued under previous constitutions), together with its pronouncements thereon
from time to time, and applied on a consistent basis.

"IMPROVEMENT" has the meaning set forth in Section 3.17(iii).

"INDEMNITEE" has the meaning set forth in Section 9.2(i).

                                     -DS 1-

<PAGE>

"INDEMNIFIABLE LOSS" has the meaning set forth in Section 9.2(i).

"INITIAL OWNERSHIP" has the meaning set forth in Section 2.1(iii).

"INTELLECTUAL PROPERTY" means any and all (i) patents, all patent rights and all
applications therefor and all reissues, reexaminations, continuations,
continuations-in-part, divisions, and patent term extensions thereof, (ii)
inventions (whether patentable or not), discoveries, improvements, concepts,
innovations and industrial models, (iii) registered and unregistered copyrights,
copyright registrations and applications, author's rights and works of
authorship (including artwork of any kind and software of all types in whatever
medium, inclusive of computer programs, source code, object code and executable
code, and related documentation), (iv) URLs, web sites, web pages and any part
thereof, (v) technical information, know-how, trade secrets, drawings, designs,
design protocols, specifications for parts and devices, quality assurance and
control procedures, design tools, manuals, research data concerning historic and
current research and development efforts, including the results of successful
and unsuccessful designs, databases and proprietary data, (vi) proprietary
processes, technology, engineering, formulae, algorithms and operational
procedures, (vii) trade names, trade dress, trademarks, domain names, and
service marks, and registrations and applications therefor, and (viii) the
goodwill of the business symbolized or represented by the foregoing, customer
lists and other proprietary information and common-law rights.

"INVESTOR" or "INVESTORS" has the meaning ascribed to it in the preamble.

"KEY PERSONS" means Peng Xiaofeng, Shao Yonggan, Zhu Liangbao and all the other
Persons listed in Exhibit I hereof.

"KNOWLEDGE" of a Party means the current actual knowledge of the executive
officers of such Party principally responsible for the management of the
business (including with respect to Intellectual Property) of such Party and its
Subsidiaries.

"LAND USE RIGHTS" has the meaning set forth in Section 3.17(i).

"LEASE" has the meaning set forth in Section 3.17(ii).

"LICENSES" means all licenses, permits, certificates of authority,
authorizations, approvals, registrations, franchises and similar consents
granted or issued by any Governmental Authority, including but not limited to
the Licenses set forth in Section 3.6 of the Disclosure Schedule and the
business licenses of the applicable Group Companies.

"MATERIAL ADVERSE CHANGE" has the meaning set forth in Section 5.20.

"MATERIAL ADVERSE EFFECT" means any (a) event, occurrence, fact, condition,
change or development that has had a material adverse effect on the Business or
Conditions of the Company Group, or (b) material impairment of the ability of
any member of the Company Group to perform their respective material obligations
hereunder or under each of the Ancillary Agreements, as applicable.

"MATERIAL ADVERSE EVENT" means any change, event or effect that (i) is or would
be materially adverse to the Business or Conditions of the Company Group or (ii)
is or would materially impair the validity or enforceability of this Agreement
against the Company, the PRC Subsidiary or the Founder or (iii) is or would
materially and adversely affect the Company, the PRC Subsidiary or the Founder's
ability to

                                     -DS 1-

<PAGE>

perform its obligations under this Agreement, any Ancillary Agreements or in
connection with the transactions contemplated hereunder or thereunder.

"MATERIAL CONTRACT" means, with respect to any Person, any outstanding Contract
material to the business of such Person as of or after the date hereof and
includes, but is not limited to, those Contracts deemed material by Section
3.15(v).

"MATERIAL LICENSES" means the Licenses set forth in Section 3.6 of the
Disclosure Schedule.

"MEMORANDUM AND ARTICLES" means the second amended and restated memorandum of
association and the second amended and restated articles of association of the
Company, as amended from time to time, attached hereto as Exhibit A.

"MOFCOM" means the Ministry of Commerce or, with respect to any matter to be
submitted for examination and approval by the Ministry of Commerce, any
government entity which is similarly competent to examine and approve such
matter under the laws of the PRC.

"MORTGAGE" has the meaning set forth in Section 3.17(iv).

"NET EARNINGS" shall mean the consolidated and normalized positive profit after
tax (less one-off, non-recurring and extraordinary items as well as stock
compensation charges which are required to be deducted from the Company's income
under the currently effective US GAAP or IFRS, if any, but plus any governmental
grants and subsidies) attributable to the shareholders of the Company Group as
audited by the Auditor in accordance with IFRS or US GAAP (which shall be the
same as the relevant accounting standards used in connection with the Company's
Qualified IPO).

"ORDINARY SHARES" has the meaning ascribed to it in Section 3.2(i)(a).

"PERSON" means any individual, corporation, partnership, limited partnership,
proprietorship, association, limited liability company, firm, trust, estate or
other enterprise or entity.

"PRC" means the People's Republic of China, but solely for the purposes of this
Agreement, excluding the Hong Kong Special Administrative Region, Macau Special
Administrative Region and Taiwan.

"PRC SUBSIDIARY" has the meaning ascribed to it in the preamble.

"PREFERRED SHARES" has the meaning set forth in Section 3.2(i)(b).

"PROPRIETARY ASSETS" means all patents, patent applications, trademarks, service
marks, trade names, copyrights, moral rights, maskworks, trade secrets,
confidential and proprietary information, compositions of matter, formulas,
designs, proprietary rights, know-how and processes of a company.

"QUALIFIED EXCHANGE" means (i) the New York Stock Exchange or the Nasdaq Stock
Market's National Market System, or (ii) any other exchange of recognized
international reputation and standing duly approved by the Company's Board of
Directors, including the affirmative vote of the Investor Director.

"QUALIFIED IPO" means an initial public offering on a Qualified Exchange that
values the Company at no less than US$1,210,000,000 immediately prior to the
initial public offering with a per share offering price of no less than US$11.00
and that results in aggregate net proceeds to the Company of at least
US$300,000,000. The selection of the lead underwriter(s) of the Qualified IPO
shall be led by the

                                     -DS 1-

<PAGE>

management of the Company and subject to the consent of the Investor Director,
which consent shall not be unreasonably withheld.

"REPORT DATE" has the meaning set forth in Section 3.12(i).

"REVIEW REPORTS" has the meaning set forth in Section 3.12(i).

"SAFE" means the Sate Administration of Foreign Exchange of the PRC, and any PRC
governmental body that is a successor thereto.

"SAIC" means the State Administration of Industry and Commerce or, with respect
to the issuance of any business license or filing or registration to be effected
with or by the State Administration of Industry and Commerce, any government
entity which is similarly competent to issue such business license or accept
such filing or registration under the laws of the PRC.

"SECURITIES" has the meaning set forth in Section 4.2.

"SECURITIES ACT" means the U.S. Securities Act of 1933, as amended.

"SENIOR MANAGER" means, with respect to any member of the Company Group, the
chief executive officer, the chief financial officer, the chief operating
officer, the chief technology officer and the vice presidents of such company.

"SERIES A SHAREHOLDERS" has the meaning set forth in Section 2.4(i)(a).

"SERIES A SHARE PURCHASE AGREEMENT" has the meaning set forth in Section
2.4(i)(a).

"SERIES A-1 PREFERRED SHARES" has the meaning set forth in Section 3.2(i)(b).

"SERIES A-2 PREFERRED SHARES" has the meaning set forth in Section 3.2(i)(b).

"SERIES B PREFERRED SHARES" has the meaning set forth in Section 3.2(i)(b).

"SUBSIDIARY" means, with respect to any Person, a corporation or other entity
that is, directly or indirectly, controlled by such Person, by the possession of
the power to direct or cause the direction of the management and policies of
first mentioned Person, whether through the ownership of voting securities or
equity interest, by contract or otherwise.

"SUBSCRIPTION PRICE" has the meaning set forth in Section 2.1(iii).

"TAX" and "TAXES" means and includes any and all taxes, including any and all
income, gross receipts, franchise, license, severance, stamp, occupation,
premium, environmental, customs duties, capital stock, profits, unemployment,
disability, real property, personal property, transfer, registration, value
added, estimated, sales, use, excise, withholding, employment, payroll, social
security taxes, and similar assessments, charges, and fees (including interest,
penalties and additions to such taxes, penalties for failure to file or late
filing of any return, report or other filing, and any interest in respect of
such penalties and additions) imposed or assessed by any federal, state or local
taxing authority, including the Cayman Islands, Hong Kong or the PRC (or any
political subdivision thereof or therein).

"TAX RETURNS" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

                                     -DS 1-

<PAGE>

"US GAAP" means generally accepted accounting principles in the United States,
consistently applied.

"WARRANT" or "WARRANTS" means the Warrant(s) the Company issued to the holders
of the Series A-1 Preferred Shares and the holders of the Series A-2 Preferred
Shares pursuant to certain Warrant Purchase Agreement(s), each dated as of July
28, 2006.

                                     -DS 1-

<PAGE>

                               DISCLOSURE SCHEDULE

                                     -DS 1-

<PAGE>

                                   SCHEDULE A

                              INVESTORS AT CLOSING

<TABLE>
<CAPTION>
                                                                 NUMBER OF SERIES B
                                                                  PREFERRED SHARES    SUBSCRIPTION
         NAME                           ADDRESS                      SUBSCRIBED           PRICE
---------------------   --------------------------------------   ------------------   ------------
<S>                     <C>                                      <C>                  <C>
Financiere Natexis      Natexis Private Equity Asia Limited           1,150,000       US$ 6,900,000
Singapore 4 Pte Ltd.    Suite 1808, 18/F Westgate Mall Plaza
                        1038 Nanjing West Road, Shanghai,
                        China 200041

                        Attention: Gang Wang (Kevin)

Shine Field             Registered address:                           1,150,000       US$ 6,900,000
Investments Limited     P.O. Box 957, Offshore Incorporations
                        Centre, Road Town, Tortola, BVI

                        Notice address:
                        c/o Petrius Lui or Ignatius Seu
                        41st Floor Jardine House
                        1 Connaught Place
                        Hong Kong

                        Attention: Petrius Lui or Ignatius Seu

CDH SolarFuture         Level 30, Six Battery Road                    2,000,000       US$12,000,000
Limited                 Singapore 049909

                        Attention: Mr. Lew Kiang Hua

CHF Wafer Company       Registered address:                           1,000,000       US$ 6,000,000
Limited                 P.O. Box 173, Kingston Chamber,
                        Road Town, Tortola, British Virgin
                        Islands

                        Notice address:
                        c/o China Renaissance Capital
                        Investment
                        Suites 305-307
                        St George's Building
                        2 Ice House Street, Central
                        Hong Kong

                        Attention: Hung Shih
</TABLE>

                                     -SCH A-

<PAGE>

<TABLE>
<S>                     <C>                                      <C>                  <C>
China Environment       Registered address:                             833,333       US$ 4,999,998
Fund 2004, LP.          P.O. Box 908, George Town, Cayman
                        Islands

                        Notice address:
                        c/o Tsinghua Venture Capital
                        Management
                        A 23-2, SP Tower, Tsinghua Science
                        Park, Beijing, China 100084

                        Attention: Dr. Catherine Cao

JAFCO Asia              Registered address:                             833,333       US$ 4,999,998
Technology Fund III     c/o Walkers SPV Limited
                        P.O. Box 908GT, Mary Street
                        George Town, Grand Cayman, Cayman
                        Islands

                        Notice address:
                        c/o JAFCO Investment (Asia Pacific)
                        Ltd.
                        6 Battery Road
                        #42-01 Singapore 049909

                        Attention: The President

MUS Roosevelt China     c/o MUS Roosevelt Capital Partners,             500,000       US$ 3,000,000
Pacific Fund L.P.       Ltd.
                        Offshore Incorporations (Cayman)
                        Limited
                        Scotia Centre 4/F
                        P.O. Box 2804
                        George Town, Grand Cayman, Cayman
                        Islands

                        With a copy to:
                        Mitsubishi UFJ Securities (HK)
                        Capital, Limited
                        11/F, AIG Tower
                        One Connaught Road
                        Central, Hong Kong

                        Attention: Mr. Jun Otsuka (Managing
                        Director)
</TABLE>

                                     -SCH A-

<PAGE>

<TABLE>
<S>                     <C>                                      <C>                  <C>
Tech Team Holdings      Registered address:                             250,000       US$ 1,500,000
Limited                 2nd Floor, Abbott Building, Road
                        Town, Tortola, British Virgin Islands

                        Notice address:
                        299 Bisheng Road
                        Suite 13-101
                        Pudong, Shanghai
                        China 201204

                        Attention: Jerry Jiyi WENG

Grand Gains             Registered address:                             250,000       US$ 1,500,000
International Limited   Palm Grove House, P.O. Box 438, Road
                        Town, Tortola, British Virgin Islands

                        Notice address:
                        32/F, Tower of China Merchants Bank
                        No. 7088 Shennan Road
                        Futian, Shenzhen 518040

                        Attention: Li Hongwei

BOFA Capital Company    Registered address:                              33,334       US$   200,004
Limited                 c/o Maples Finance BVI Limited, P.O.
                        Box 173, Kingston Chambers, Road
                        Town, Tortola, British Virgin Islands

                        Notice address:
                        Room 16D
                        Building 8
                        Shijicheng 3 Term
                        Haidian District
                        Beijing, P.R.China

                        Attention: Mr. Peng Lingyong
                                                                      ---------       -------------
TOTAL                                                                 8,000,000       US$48,000,000
                                                                      =========       =============
</TABLE>

                                     -SCH A-
<PAGE>

                                    EXHIBIT A

               SECOND AMENDED AND RESTATED MEMORANDUM AND ARTICLES

                                     -EXH A-

<PAGE>

                                    EXHIBIT B

                                   [RESERVED]

                                     -EXH B-

<PAGE>

                                    EXHIBIT C

                          2006 BUSINESS PLAN AND BUDGET

                                     -EXH C-

<PAGE>

                                    EXHIBIT D

          CONFIDENTIALITY, ASSIGNMENT OF INVENTIONS AND NON-COMPETITION
                                    AGREEMENT

                                     -EXH D-

<PAGE>

                                    EXHIBIT E

                             SHAREHOLDERS AGREEMENT

                                     -EXH E-

<PAGE>

                                    EXHIBIT F

                 OPINION OF THE COMPANY'S CAYMAN ISLANDS COUNSEL

                                     -EXH F-

<PAGE>

                                    EXHIBIT G

                      OPINION OF THE COMPANY'S PRC COUNSEL

                                     -EXH G-

<PAGE>

                                    EXHIBIT H

               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

                                     -EXH H-

<PAGE>

                                    EXHIBIT I

                                   KEY PERSONS

Peng Xiaofeng
Zhu Liangbao
Shao Yonggang
Jack Lai
Nicola Sarno
Yao Qiqiang
Kuo Lung Lin
Alberto Di Gaetano
Rosseio Pleiro
Cui Rong Qiang
Martin Huang
Fu Xiangqun
Huang Qiumao
Fu Delin
Huang Weixing
Lu Xiaodong
Song Yong
Lin Qinyun
Renato Alberto Cabrini
Xing Guo Ping
Peng Zhijian
Chen Jianwen

                                      EXH-I

<PAGE>

                                   APPENDIX 1

                         OWNERSHIP ADJUSTMENT SCENARIOS

                                  -APPENDIX 1-

<PAGE>

                                                               EXECUTION VERSION

                             SUPPLEMENTAL AGREEMENT

THIS SUPPLEMENTAL AGREEMENT (the "SUPPLEMENTAL AGREEMENT"), dated as of December
15, 2006, is made to: (1) the Share Purchase Agreement, dated as of July 28,
2006, by and among LDK Solar Co., Ltd., a company organized and existing under
the laws of the Cayman Islands (the "COMPANY"), Jiangxi LDK Solar Hi-Tech Co.,
Ltd. (Chinese Characters LDK Chinese Characters), a company organized and
existing under the laws of the PRC (the "PRC SUBSIDIARY"), Mr. Peng Xiaofeng
(the "FOUNDER") and each of the holders of the Series A-1 Preferred Shares and
the Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED SHARES"),
as amended by the Amendment to the Share Purchase Agreement, dated as of
September 15, 2006, by and among the Company, the PRC Subsidiary, the Founder
and each of the holders of the Series A Preferred Shares (as amended, the
"SERIES A SHARE PURCHASE AGREEMENT"); and (2) the Series B Preferred Shares
Purchase Agreement, dated as of September 15, 2006, by and among the Company,
the PRC Subsidiary, the Founder and each of the holders of the Series B
Preferred Shares, as amended by the Amendment to the Series B Preferred Shares
Purchase Agreement, dated as of September 26, 2006 (as amended, "SERIES B SHARE
PURCHASE AGREEMENT").

                                    RECITALS

A.   The Company and certain investors are parties to the Series C Preferred
     Shares Purchase Agreement, dated as of December 15, 2006 (the "SERIES C
     SHARE PURCHASE AGREEMENT"), pursuant to which such investors (collectively,
     the "SERIES C PREFERRED SHAREHOLDERS") have agreed to subscribe for certain
     number of Series C Preferred Shares of the Company (the "SERIES C PREFERRED
     SHARES") upon the terms and subject to the conditions contained therein.

B.   The parties intend that a supplemental agreement be made to the Series A
     Share Purchase Agreement and the Series B Share Purchase Agreement to
     provide for a concerted ownership adjustment mechanism for all the Series A
     Preferred Shares, the Series B Preferred Shares and the Series C Preferred
     Shares.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
agree as follows:

1.   Defined Terms. Unless otherwise defined herein, capitalized terms used
     herein which are not defined in the Series A Share Purchase Agreement or
     the Series B Share Purchase Agreement, each as amended hereby, are used
     herein as therein defined.

2.   Amendment to Section 2.1(iii) of the Series A Share Purchase Agreement.
     Section 2.1(iii) of the Series A Share Purchase Agreement is hereby amended
     by deleting the last two sentences in such section and substituting in lieu
     thereof the following sentences:

     "It is understood that the aggregate number of Series A-1 Preferred Shares
     and Series A-2 Preferred Shares (collectively, the "SERIES A PREFERRED
     SHARES") to be issued by the Company at the Closing shall be 4,580,000
     shares, representing a 5.056% ownership

                                      -1-

<PAGE>

     in the Company (the "INITIAL OWNERSHIP") immediately after the closing of
     the issuance of the Series C Preferred Shares of the Company (the "SERIES C
     PREFERRED SHARES") pursuant to the Series C Preferred Shares Purchase
     Agreement (the "SERIES C SHARE PURCHASE AGREEMENT"), dated as of December
     15, 2006, by and among the Company, the PRC Subsidiary, the Founder and
     certain purchasers of the Series C Preferred Shares (the "SERIES C
     FINANCING"). For the avoidance of doubt, the calculation of the Initial
     Ownership hereunder and any adjustment to such ownership under Section 2.4
     shall be based on the sum of the total number of the issued and outstanding
     Ordinary Shares (being 75,000,000) and the total number of issued and
     outstanding Series A Preferred Shares, Series B Preferred Shares and Series
     C Preferred Shares, all on an as-converted basis, as of the date of the
     closing of the Series C Financing or the date of adjustment, as the case
     may be, and in each case as provided in the Memorandum and Articles,
     without consideration of any shares issued pursuant to the Company Option
     Plan."

3.   Amendment to Section 2.4 of the Series A Share Purchase Agreement. Section
     2.4 of the Series A Share Purchase Agreement is hereby amended by deleting
     the section in its entirety and substituting in lieu thereof the following
     provisions:

     "2.4 Ownership Adjustments

          (ii) Following the issue by the Auditor of the 2006 Audited Income
               Statement:

               (1)  if the 2006 Net Earnings are equal to or more than the
                    Guaranteed 2006 Net Earnings, the final ownership of the
                    Investors in the Company after adjustment (the "FINAL
                    OWNERSHIP") shall remain unchanged as the Initial Ownership
                    of the Investors in the Company.

               (2)  if the 2006 Net Earnings are less than the Guaranteed 2006
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2006 Audited
                    Income Statement:

                               GE06
                    FO1 = IO x ----
                               AE06

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO1 shall mean the Final
                    Ownership of the Investors after adjustment in accordance
                    with this Section 2.4(i)(b); (2) IO shall mean the Initial
                    Ownership of the Investors in the Company; (3) GE06 shall
                    mean the Guaranteed 2006 Net Earnings of the Company Group,
                    being an amount that is US$30,000,000; and (4) AE06 shall
                    mean the actual 2006 Net Earnings.

          (iii) Following the issue by the Auditor of the 2007 Audited Income
               Statement:

                                      -2-

<PAGE>

               (1)  If the 2007 Net Earnings are equal to or more than the
                    Guaranteed 2007 Net Earnings, the Final Ownership of the
                    Investors shall remain unchanged as the ownership adjusted,
                    if any, in accordance with 2.4(i)(b) above.

               (2)  if the 2007 Net Earnings are less than the Guaranteed 2007
                    Net Earnings, the Final Ownership of the Investors in the
                    Company shall be adjusted in accordance with the following
                    formula promptly following the issue of the 2007 Audited
                    Income Statement:

                                GE07
                    FO2 = FO1 x ----
                                AE07

                    For purposes of the foregoing formula, the following
                    definitions shall apply: (1) FO2 shall mean the Final
                    Ownership of the Investors in the Company after adjustment
                    in accordance with this Section 2.4(ii)(b); (2) FO1 shall
                    mean the Final Ownership of the Investors in the Company as
                    adjusted under Section 2.4 (i)(b) above; (3) GE07 shall mean
                    the Guaranteed 2007 Net Earnings of the Company Group, being
                    an amount that is US$100,000,000; and (4) AE07 shall mean
                    the actual 2007 Net Earnings.

          (iv) To effect the ownership adjustment as set forth in Sections
               2.4(i) and (ii) above, the effective Conversion Rate of the
               Series A Preferred Shares shall be adjusted in accordance with
               the following formula:

                                   TS
               CR(A) = FO(A) x ---------
                               4,580,000

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) CR(A) shall mean the effective Conversion Rate
               of the Series A Preferred Shares at which the Series A Preferred
               Shares are converted into Ordinary Shares in accordance with this
               Section 2.4; (2) FO(A) shall mean the final ownership of the
               holders of the Series A Preferred Shares in the Company as
               adjusted according to Section 2.4 hereof; and (3) TS shall mean
               the total number of Ordinary Shares to be issued and outstanding,
               on an as-converted basis, as of the date of the closing of the
               Series C Financing or the date of adjustment, as the case may be,
               which shall be equal to the number derived from the following
               formula:

                         75,000,000
               TS = -------------------
                    1-FO(A)-FO(B)-FO(C)

               For purposes of the foregoing formula, the following definitions
               shall apply: (1) FO(A) shall mean the Final Ownership of the
               Investors in the Company as adjusted according to Section 2.4
               hereof; (2) FO(B) shall mean the final ownership of the holders
               of the Series B Preferred Shares as adjusted according to Section
               2.4 of the Series B Share Purchase Agreement; and (3) FO(C) shall
               mean the final ownership of the holders

                                      -3-

<PAGE>

               of the Series C Preferred Shares as adjusted according to Section
               2.4 of the Series C Share Purchase Agreement.

          (v)  Notwithstanding the above, the parties hereto may agree from time
               to time, based on legal advice mutually acceptable to the Company
               and the Investors, on any other method to effect the adjustment
               to the Final Ownership of the Investors to be equal to the
               amounts derived from the formulas set forth in Section 2.4(i)(b)
               and Section 2.4(ii)(b) above.

          (vi) Notwithstanding anything to the contrary, the Investors agree not
               to make any adjustment to the ownership (a) with respect to the
               2006 Audited Income Statement under Section 2.4(i), if the 2006
               Net Earnings is no less than US$28,500,000; and (b) with respect
               to the 2007 Audited Income Statement under Section 2.4(ii), if
               the 2007 Net Earnings is no less than US$95,000,000.

          (vii) For the avoidance of doubt, the Investors' Final Ownership after
               any adjustment made under this Section 2.4 shall not be lower
               than their ownership before such adjustment, and no adjustment to
               the Investors' ownership will be made according to Section
               2.4(ii)(b) hereof if a Qualified IPO consummates in 2007."

4.   Amendment to Section 2.1(iii) of the Series B Share Purchase Agreement.
     Section 2.1(iii) of the Series B Share Purchase Agreement is hereby amended
     by deleting the last two sentences in such section and substituting in lieu
     thereof the following sentences:

     "It is understood that the aggregate number of Series B Preferred Shares
     (the "SERIES B PREFERRED SHARES") to be issued by the Company at the
     Closing shall be 8,000,000 shares, representing a 8.832% ownership in the
     Company (the "INITIAL OWNERSHIP") immediately after the closing of the
     issuance of the Series C Preferred Shares of the Company (the "SERIES C
     PREFERRED SHARES") pursuant to the Series C Preferred Shares Purchase
     Agreement (the "SERIES C SHARE PURCHASE AGREEMENT"), dated as of December
     15, 2006, by and among the Company, the PRC Subsidiary, the Founder and
     certain purchasers of the Series C Preferred Shares (the "SERIES C
     FINANCING"). For the avoidance of doubt, the calculation of the Initial
     Ownership hereunder and any adjustment to such ownership under Section 2.4
     shall be based on the sum of the total number of issued and outstanding
     Ordinary Shares (being 75,000,000) and the total number of issued and
     outstanding Series A Preferred Shares, Series B Preferred Shares and Series
     C Preferred Shares, all on an as-converted basis, as of the date of the
     closing of the Series C Financing or the date of adjustment, as the case
     may be, and in each case as provided in the Memorandum and Articles,
     without consideration of any shares issued pursuant to the Company Option
     Plan."

5.   Amendment to Section 2.4(iv) of the Series B Share Purchase Agreement.
     Section 2.4(iv) of the Series B Share Purchase Agreement is hereby amended
     by deleting the sub-section in its entirety and substituting in lieu
     thereof the following provisions:

                                      -4-

<PAGE>

     "(iv) To effect the ownership adjustment as set forth in Sections 2.4(i),
          (ii) and (iii) above, the applicable Conversion Rate of the Series A
          Preferred Shares and the Series B Preferred Shares shall be adjusted
          in accordance with the following formulas:

                              TS
          CR(A) = FO(A) x ---------
                          4,580,000

                              TS
          CR(B) = FO(B) x ---------
                          8,000,000

          For purposes of the foregoing formulas, the following definitions
          shall apply: (1) CR(A) shall mean the effective Conversion Rate of the
          Series A Preferred Shares at which the Series A Preferred Shares are
          converted into Ordinary Shares in accordance with this Section 2.4;
          (2) CR(B) shall mean the effective Conversion Rate of the Series B
          Preferred Shares at which the Series B Preferred Shares are converted
          into Ordinary Shares in accordance with this Section 2.4; (3) FO(A)
          shall mean the final ownership of the holders of the Series A
          Preferred Shares in the Company as adjusted according to Section 2.4
          of the Series A Share Purchase Agreement; (4) FO(B) shall mean the
          Final Ownership of the Investors in the Company as adjusted according
          to Section 2.4 hereof; and (5) TS shall mean the total number of
          Ordinary Shares to be issued and outstanding, on an as-converted
          basis, as of the date of the closing of the Series C Financing or the
          date of adjustment, as the case may be, which shall be equal to the
          number derived from the following formula:

                    75,000,000
          TS = -------------------
               1-FO(A)-FO(B)-FO(C)

          For purposes of the foregoing formula, the following definitions shall
          apply: (1) FO(A) shall mean the final ownership of the holders of the
          Series A Preferred Shares in the Company as adjusted according to
          Section 2.4 of the Series A Share Purchase Agreement; (2) FO(B) shall
          mean the Final Ownership of the Investors in the Company as adjusted
          according to Section 2.4 hereof; and (3) FO(C) shall mean the final
          ownership of the holders of the Series C Preferred Shares in the
          Company as adjusted according to Section 2.4 of the Series C Share
          Purchase Agreement."

6.   Counterparts. This Supplemental Agreement may be executed by one or more of
     the parties hereto on any number of separate counterparts and all such
     counterparts shall be deemed to be one and the same instrument. Each party
     hereto confirms that any facsimile copy of such party's executed
     counterpart of this Supplemental Agreement (or its signature page thereof)
     shall be deemed to be an executed original thereof.

                                      -5-
<PAGE>

7.   Effectiveness. This Supplemental Agreement shall become effective as of the
     date first written above.

8.   Continuing Effect. This Supplemental Agreement is made under Section 10.9
     of the Series A Share Purchase Agreement and Section 9.9 of the Series B
     Share Purchase Agreement. Except as otherwise described in this
     Supplemental Agreement, the terms and conditions of the Series A Share
     Purchase Agreement and the Series B Share Purchase Agreement shall remain
     in full force and effect.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK.]

                                      -6-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date first written above.

                                        COMPANY:

                                        LDK SOLAR CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                        Attention: Mr. Peng Xiaofeng & Mr. Shao
                                                   Yonggang
                                        Facsimile: (86-21) 6350-8707

                                      -7-

<PAGE>

                                        PRC SUBSIDIARY:

                                        JIANGXI LDK SOLAR HI-TECH CO., LTD.

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng
                                        Capacity: Chief Executive Officer

                                        Address:

                                        Hi-tech Industrial Park
                                        Xinyu City, Jiangxi Province
                                        People's Republic of China

                                        Attention: Mr. Peng Xiaofeng
                                        Facsimile: (0790) 6860-085

                                      -8-

<PAGE>

                                        FOUNDER:

                                        PENG XIAOFENG

                                        By: /s/ Peng Xiaofeng
                                            ------------------------------------
                                        Name: Peng Xiaofeng

                                        Address:

                                        LDK Solar Co., Ltd.
                                        Room 2303
                                        Harbor Ring Plaza
                                        No. 18 Xizang Middle Road
                                        Shanghai 200001

                                      -9-

<PAGE>

                                        INVESTOR:

                                        FINANCIERE NATEXIS SINGAPORE 4 PTE, LTD.

                                        (As a holder of both Series A-2
                                        Preferred Shares and Series B Preferred
                                        Shares)

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin)
                                        Facsimile: (86-21) 6217-3742

                                      -10-

<PAGE>

                                        INVESTOR:

                                        DECATUR OVERSEAS CORPORATION

                                        (As a holder of Series A-2 Preferred
                                        Shares)

                                        By: /s/ Gang Wang
                                            ------------------------------------
                                        Name: Gang Wang (Kevin)
                                        Capacity: Authorized Officer

                                        Address:

                                        Natexis Private Equity Asia Limited
                                        Suite 1808, 18/F Westgate Mall Plaza
                                        1038 Nanjing West Road
                                        Shanghai, China 200041

                                        Attention: Gang Wang (Kevin) or Nicolazo
                                        De Barmon, Gael
                                        Facsimile: (86-21) 6217-3742

                                      -11-

<PAGE>

                                        INVESTOR:

                                        BRILLIANT EVER INVESTMENTS LIMITED

                                        (As a holder of Series A-1 Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: (852) 2877-6852

                                      -12-

<PAGE>

                                        INVESTOR:

                                        BOUNDLESS FUTURE INVESTMENT LIMITED

                                        (As a holder of Series A-1 Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        Suite 2302-3, 23/F Great Eagle Centre
                                        23 Harbour Road
                                        Wanchai
                                        Hong Kong

                                        Attention: Ms Clara Chan
                                        Facsimile: (852) 2877-6852

                                      -13-

<PAGE>

                                        INVESTOR:

                                        SHINE FIELD INVESTMENTS LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Chen Lu
                                            ------------------------------------
                                        Name: Chen Lu
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 957
                                        Offshore Incorporations Centre
                                        Road Town, Tortola, BVI

                                        c/o Petrius Lui or Ignatius Seu
                                        41st Floor Jardine House
                                        1 Connaught Place
                                        Hong Kong

                                        Attention: Petrius Lui or Ignatius Seu
                                        Facsimile: (852) 2111-3299

                                      -14-

<PAGE>

                                        INVESTOR:

                                        CDH SOLARFUTURE LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Lew Kiang Hua
                                            ------------------------------------
                                        Name: Lew Kiang Hua
                                        Capacity: Director

                                        Address:

                                        Level 30, Six Battery Road
                                        Singapore 049909

                                        Attention: Mr. Lew Kiang Hua
                                        Facsimile: (65) 6550 9898

                                      -15-

<PAGE>

                                        INVESTOR:

                                        CHF WAFER COMPANY LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Andrew Lo
                                            ------------------------------------
                                        Name: Andrew Lo
                                        Capacity: Authorized Representative

                                        Address:

                                        P.O. Box 173, Kingston Chamber
                                        Road Town, Tortola
                                        British Virgin Islands

                                        c/o China Renaissance Capital Investment
                                        Suites 305-307
                                        St George's Building
                                        2 Ice House Street, Central
                                        Hong Kong

                                        Attention: Hung Shih
                                        Facsimile: (852) 2521-8023

                                      -16-

<PAGE>

                                        INVESTOR:

                                        CHINA ENVIRONMENT FUND 2004, LP.

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Hua Cao
                                            ------------------------------------
                                        Name: Hua Cao
                                        Capacity: Authorized Signatory

                                        Address:

                                        P.O. Box 908
                                        George Town, Cayman Islands

                                        c/o Tsinghua Venture Capital Management
                                        A2302, SP Tower, Tsinghua Science Park
                                        Beijing, China 100084

                                        Attention: Dr. Catherine Cao
                                        Facsimile: (86-10) 8215-1150

                                      -17-

<PAGE>

                                        INVESTOR:

                                        JAFCO ASIA TECHNOLOGY FUND III

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Vincent Chan Chun Hung
                                            ------------------------------------
                                        Name: Vincent Chan Chun Hung
                                        Capacity: Attorney

                                        Address of registered office:

                                        c/o Walkers SPV Limited
                                        P.O. Box 908GT, Mary Street
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        Notice address:

                                        c/o JAFCO Investment (Asia Pacific) Ltd.
                                        6 Battery Road
                                        #42-01 Singapore 049909

                                        Attention: The President
                                        Facsimile: (65) 6221-3690

                                        With a copy to:

                                        JAFCO Investment (Hong Kong) Ltd.
                                        30/F, Two IFC, 8 Finance Street,
                                        Central, Hong Kong

                                        Attention: General Manager
                                        Facsimile: (852) 2536-1979

                                      -18-

<PAGE>

                                        INVESTOR:

                                        MUS ROOSEVELT CHINA PACIFIC FUND L.P.

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jun Otsuka
                                            ------------------------------------
                                        Name: Jun Otsuka
                                        Capacity: Managing Director

                                        Address:

                                        c/o MUS Roosevelt Capital Partners, Ltd.
                                        Offshore Incorporations (Cayman) Limited
                                        Scotia Centre 4/F
                                        P.O. Box 2804
                                        George Town, Grand Cayman, Cayman
                                        Islands

                                        With a copy to:

                                        Mitsubishi UFJ Securities (HK) Capital,
                                        Limited
                                        11/F, AIG Tower
                                        One Connaught Road
                                        Central, Hong Kong

                                        Attention: Mr. Jun Otsuka (Managing
                                        Director)
                                        Facsimile: (852) 2865-6214

                                      -19-

<PAGE>

                                        INVESTOR:

                                        TECH TEAM HOLDINGS LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Address:

                                        2nd Floor, Abbott Building, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        299 Bisheng Road
                                        Suite 13-101
                                        Pudong, Shanghai
                                        China 201204

                                        Attention: Jerry Jiyi WENG
                                        Facsimile: (86-21) 5080-1333

                                      -20-

<PAGE>

                                        INVESTOR:

                                        GRAND GAINS INTERNATIONAL LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Jiyi Weng
                                            ------------------------------------
                                        Name: Jiyi Weng
                                        Capacity: Director

                                        Registered address:

                                        Palm Grove House, P.O. Box 438, Road
                                        Town, Tortola, British Virgin Islands

                                        Notice address:

                                        32/F, Tower of China Merchants Bank
                                        No. 7088 Shennan Road
                                        Futian, Shenzhen 518040

                                        Attention: Li Hongwei
                                        Facsimile: (86-755) 8319-5157

                                      -21-

<PAGE>

                                        INVESTOR:

                                        BOFA CAPITAL COMPANY LIMITED

                                        (As a holder of Series B Preferred
                                        Shares)

                                        By: /s/ Lingyong Peng
                                            ------------------------------------
                                        Name: Lingyong Peng
                                        Capacity: Authorized Signatory

                                        Registered address:

                                        c/o Maples Finance BVI Limited, P.O. Box
                                        173, Kingston Chambers, Road Town,
                                        Tortola, British Virgin Islands

                                        Notice address:

                                        Room 16D
                                        Building 8
                                        Shijicheng 3 Term
                                        Haidian District
                                        Beijing, P.R.China

                                        Attention: Mr. Peng Lingyong
                                        Facsimile: (86-10) 8889 1502

                                      -22-

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