LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

LDK SOLAR CO., LTD. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2006 AND 2007
(Amounts in US$ thousands, except share and per share data)
(13) SUBSEQUENT EVENTS
The terms of the Series B and Series C preferred shares provide that the respective Conversion ratios are
subject to adjustment based on the 2006/2007 net earnings and the 2007 net earnings respectively. As of
May 11, 2007, the Company obtained written confirmations from all the holders of the Series B and Series C
preferred shares confirming that, after their review of the net income up to March 31, 2007, no adjustment to
their respective Conversion ratios needs to be made.
Pursuant to the share option scheme adopted on July 31, 2006, the Company's Board of Directors
resolved on April 17, 2007 to grant 550,900 share options in total to a number of employees, a non-executive
director and a candidate of an independent director which enable the grantees to subscribe for 550,900
ordinary shares at the exercise price determined at the low-end price of the initial public offering price range,
except for 200,000 share options granted to the non-executive director and the candidate of independent
director, of which the exercise price is set at US$9.00. The grant of shares options to the candidate of
independent director is conditional upon the signing of the service contract between the Company and that
candidate. The options have a contractual term of five years and vesting period of no less than three years, with
no more than one-third of the options to be vested each year.
Subsequent to March 31, 2007, the Group has incurred additional secured and unsecured short term bank
borrowings with interest rates ranging from 5.850% to 7.050%, primarily to finance the purchases of
equipment. As of May 29, 2007, the Group's short term bank borrowings amounted to US$103,732.
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