EXHIBIT 10.26
TRANSLATION
SOLAR POWER PHOTOVOLTAIC MODULES SUPPLY CONTRACT
between
BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD.
and
UNITEC EUROPA, S.A.
February 26, 2007
Feb. 26, 2007, In Pamplona
Executing Representatives
Mr. Miao Liansheng, on one hand, adult, Passport No. G14218477, the president of
Tianwei Yingli New Energy Resources Co., Ltd. (hereinafter referred to as
"Yingli") which has its registered address at No. 3055 Middle Fuxing Road,
Baoding, Hebei Province, PRC, has such rights and capacity to be the
representative of Yingli under the name of such registered company;
Mr. Mao Ching Fu Lee, on the other hand, adult, ID No. 44.616.802-E, the sole
manager of the Unitec Europa, S.A. (hereinafter "Unitec Europa") (located in
Plaza Ramon y Cajal, 1-Bajo, Pamplona and registered in Navarra, Page No. 1
NA-16944, Volume 830, Taxation no. A-31/710783) has such rights and capacity to
be the representative of Unitec Europa under the name of such registered
company.
Both parties recognize that the representatives have sufficient capacity to
execute and implement this Contract.
Recitals
Whereas,
1. "Yingli" is a new energy resources company seeking to develop and produce
solar power photovoltaic or PV modules and PV application systems;
2. "Unitec Europa" is a company engaging in coordination, procurement and sale
of raw materials and spare parts of solar power generating equipments; and
3. "Unitec Europa" desires to market "Solar Power Photovoltaic Module Products"
(hereinafter the "Products") of "Yingli".
Therefore, the Parties achieve agreement on terms and provisions of supply as
follows:
Provisions
I. Goal
The goal of this Supply Contract is that "Yingli" shall supply 20 megawatts
Model YL 170(23)P solar power modules or modules with higher power output
(hereinafter the "Products").
The "Products" shall satisfy such specifications as specified in Exhibit I of
this
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Contract and the error shall be limited within +/- 3% of output power of each
solar power module.
All modules shall be equipped with positive and negative lead wires of
120-centimeter length which are available for quick connection.
II. Time and Conditions of Delivery
2.1. Time of Delivery
Commencing on March 1, 2007 and ending on November 30, 2007, "Yingli" shall
supply to "Unitec Europa" the "Products" in accordance with terms and provisions
of this Contract and deliver the Products according to the following schedule:
<Table>
<Caption>
- --------------------------- --------------------------- -----------------------
Month Wattage in total % deliverd
- --------------------------- --------------------------- -----------------------
January - -
- --------------------------- --------------------------- -----------------------
February - -
- --------------------------- --------------------------- -----------------------
March 1,000,000 5%
- --------------------------- --------------------------- -----------------------
April 1,000,000 5%
- --------------------------- --------------------------- -----------------------
May 2,000,000 10%
- --------------------------- --------------------------- -----------------------
June 3,000,000 15%
- --------------------------- --------------------------- -----------------------
July 3,000,000 15%
- --------------------------- --------------------------- -----------------------
August 3,000,000 15%
- --------------------------- --------------------------- -----------------------
September 3,000,000 15%
- --------------------------- --------------------------- -----------------------
October 2,000,000 10%
- --------------------------- --------------------------- -----------------------
November 2,000,000 10%
- --------------------------- --------------------------- -----------------------
December - -
- --------------------------- --------------------------- -----------------------
Total 20,000,000 100%
- --------------------------- --------------------------- -----------------------
</Table>
2.2. Conditions of Delivery
At the time of delivery, the following conditions shall be satisfied for
delivery:
(i) Package
Each module shall be distinguished by a serial number on the bar code and
numbers on its back and sides;
Each panel shall have ten (10) modules and can be mounted in three (3)
layers. Each panel shall have a serial number for distinguishing;
Panels of three levels of power output shall be used for delivery of
modules. Numbers shall be labeled on the panels by a large piece of
adhesive paper which shall be affixed to a apparent and distinguishable
place; and
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The modules shall be packed in accordance with the following standards: 25%
modules supplied by the supplier shall meet class I power output; 50% class
II power output; and 25% class III power put. The specific classifications
of power output will be agreed upon by the parties before the first batch
of PV module has been completed.
(ii) Delivery
The point of delivery shall be the Port of Bilbao, Spain.
Delivery shall not be deemed to be complete until the power curve for all
modules supplied has been received at the same time of delivery.
III. Price and Payment
3.1. Price
The price for a single module supplied is two point eight three Euro per watt
(EURO2.83/w) exclusive of value-added tax or VAT. The Price in total is fifty
six million six hundred thousand E (EURO56,600,000) exclusive of value-added
tax.
This price is fixed and not subject to renegotiation.
When paid, this price may increase as legitimate and valid VAT increases.
3.2. Payment
The price agreed shall be paid by ninety-day promissory notes or P.N. Such notes
shall be issued in accordance with the following schedule based on invoices:
<Table>
<Caption>
- ------------------------------------ --------------------------- ----------------------------------------
Date of Invoices/ P.N. Expiry Date of P.N. % delivered (including 16% VAT)
- ------------------------------------ --------------------------- ----------------------------------------
07/02/07 07/05/07 EURO 3,282,800.00
- ------------------------------------ --------------------------- ----------------------------------------
07/02/07 07/05/07 EURO 3,282,800.00
- ------------------------------------ --------------------------- ----------------------------------------
07/03/07 07/06/07 EURO 6,565,600.00
- ------------------------------------ --------------------------- ----------------------------------------
31/03/07 31/06/07 EURO 9,848,400.00
- ------------------------------------ --------------------------- ----------------------------------------
30/04/07 30/07/07 EURO 9,848,400.00
- ------------------------------------ --------------------------- ----------------------------------------
31/05/07 31/08/07 EURO 9,848,400.00
- ------------------------------------ --------------------------- ----------------------------------------
30/06/07 30/09/07 EURO 9,848,400.00
- ------------------------------------ --------------------------- ----------------------------------------
31/07/07 31/10/07 EURO 6,565,600.00
- ------------------------------------ --------------------------- ----------------------------------------
31/08/07 30/11/07 EURO 6,565,600.00
- ------------------------------------ --------------------------- ----------------------------------------
Total EURO 65,656,000.00
- ------------------------------------ --------------------------- ----------------------------------------
</Table>
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All invoices shall include respective VAT.
IV. Warranty of Products
"Yingli" guarantees that the Products supplied satisfy specification
requirements as provided in Exhibit I, and provides warranty as provided in
Exhibit II.
Such warranty shall supersede any separate, explicit or implicit warranty,
including (without limitation) any commercial or other warranty. Such commercial
or other warranty, if any, is not the scope of warranty provided hereunder.
V. Term of the Contract
This Contract shall be effective upon execution by both parties and remain
effective until completion of delivery of all Products. "Yingli" guarantees to
complete delivery before November 30, 2007.
This Contract may be renewed by both parties in writing subject to written
agreement between both parties and without violation of this Article V.
VI. Arbitration
Without violating applicable laws, provisions of this Contract are subject to
following arbitration:
6.1. "Unitec Europa" may, before the term of this Contract ends and only in case
of accumulative occurrence of the following events, submit for arbitration under
this Contract: (i) "Unitec Europa" requires "Yingli" to deliver Products through
corresponding orders in accordance with this Contract while "Yingli" fails to do
so, (ii) "Unitec Europa" sends to "Yingli" a report about such failure, and
(iii) "Yingli" does not correct such "breach of contract" within ninety (90)
days after the date receiving such report. In case that "Yingli" has corrected
the alleged "breach of contract" about delivery, such "breach of contract" shall
be deemed to have been corrected and "Unitec Europa" shall not submit for
arbitration under this Contract.
6.2 In case that "Unitec Europa" fails to perform its obligation to pay or any
other obligations provided under this Contract, and "Unitec Europa" fails to
correct its "breach of contract" within ninety (90) days after the date
receiving written notice, "Yingli" may submit for arbitration with respect to
this Contract.
VII. Termination of Contract
Any party may not assign or transfer in whole or in part its rights and
obligations under this Contract to any third party without prior explicit
written authorization by
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the other party.
Without prejudice to preceding paragraph, "Unitec Europa" may transfer its
rights and interests under this Contract to another company that is a parent or
subsidiary of the group "Unitec Europa" belongs to, provided that, a written
notice shall be provided to the other party in advance.
VIII. Notice
Any effective notice between the parties shall be made to specified addresses
and such representatives as follows:
Baoding Tianwei Yingli New Energy Resources Co., Ltd.
Representative: Mr. Miao Liansheng
Address: No. 3055 Middle Fuxing Road, Baoding, Hebei Province, PRC
Telephone: 0086-312-3100512
Unitec Europa, S.A.
Representative: Mr. Mao Ching Fu Lee
Address: Plaza Ramon y Cajal, 1, 31008 Pamplona
Telephone: 0034-948 26 30 36
IX. Applicable Law and Substance of Contract
This Contract is consistent with and shall be construed in accordance with
common laws of Spain.
The substance of this Contract it commercial contract which is governed by its
own provisions as well as commercial laws and special regulations applicable to
it.
X. Settlement of Disputes
The parties shall settle any dispute in the principle of providing high-quality
products and compliance with the contract and warrant to fulfill the contract.
In case that there is any dispute on interpretation, performance, breach or
termination of this Contract that cannot be settled friendly, the parties may
seek remedies any relevant coordinating authority which shall be limited to
judges and courts in Pamplona.
The parties have achieved agreement upon above provisions and signed on this
Contract on the date first set forth above. This Contract is executed in two
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counterparts, each of which shall have the same legal effect.
BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD.
/s/ Miao Liansheng
- ---------------------
UNITEC EUROPA, S.A.
/s/ Mao Ching Fu Lee
- ---------------------
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