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

outside the United States. As a result, it may be difficult or impossible for you to bring an action against us or
against these individuals in the United States, in the Cayman Islands or in China in the event that you believe
that your rights have been infringed under the applicable securities laws or otherwise. Even if you are
successful in bringing an action of this kind, the laws of the Cayman Islands and of China may render you
unable to enforce a judgment against our assets or the assets of our directors and officers. For more
information regarding the relevant laws of the Cayman Islands and China, see ""Enforceability of Civil
Liabilities'' in this prospectus.
Our articles of association contain anti-takeover provisions that could prevent a change in control even if
such takeover is beneficial to our shareholders.
Our articles of association contain provisions that could delay, defer or prevent a change in control of our
company that could be beneficial to our shareholders. These provisions could also discourage proxy contests
and make it more difficult for you and other shareholders to elect directors and take other corporate actions.
As a result, these provisions could limit the price that investors are willing to pay in the future for our ADSs.
These provisions might also discourage a potential acquisition proposal or tender offer, even if the acquisition
proposal or tender offer is at a price above the then current market price of our ADSs. These provisions
provide that our board of directors has authority, without further action by our shareholders, to issue preferred
shares in one or more series and to fix their designations, powers, preferences, privileges, and relative
participating, optional or special rights and the qualifications, limitations or restrictions, including dividend
rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which
may be greater than the rights associated with our ordinary shares, in the form of ADSs or otherwise. Our
board of directors may decide to issue such preferred shares quickly with terms calculated to delay or prevent a
change in control of our company or make the removal of our management more difficult. If our board of
directors decides to issue such preferred shares, the price of our ADSs may fall and the voting and other rights
of holders of our ordinary shares and ADSs may be materially and adversely affected.
Our management will have broad discretion as to the use of a portion of the proceeds from this offering,
and may not use the proceeds effectively.
We will use the net proceeds from this offering for the expansion of our production capacity, purchase
and prepayment for polysilicon feedstock, investment in research and development, and for working capital
and other general corporate purposes, including potential acquisitions that we may make. However, we have
not designated specific expenditures for all of those proceeds. Accordingly, our management will have
significant flexibility and discretion in applying our net proceeds of this offering. Depending on future events
and other changes in the business climate, we may determine at a later time to use the net proceeds for
different purposes. Our shareholders may not agree with the manner in which our management chooses to
allocate and spend those proceeds. Moreover, our management may use the net proceeds for purposes that
may not increase the market value of our ADSs.
We will incur increased costs as a result of being a public company.
As a public company, we will incur significant legal, accounting and other expenses that we did not incur
as a private company. We will incur costs associated with our public company reporting requirements. In
addition, the Sarbanes-Oxley Act, as well as rules subsequently implemented by the Securities and Exchange
Commission, and the New York Stock Exchange, have imposed increased regulation and required enhanced
corporate governance practices for public companies. Our efforts to comply with evolving laws, regulations and
standards in this regard are likely to result in increased general and administrative expenses and a diversion of
management time and attention from revenue generating activities to compliance activities. We also expect
these new rules and regulations to make it more difficult and more expensive for us to obtain director and
officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur
substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to
attract and retain qualified candidates to serve on our board of directors or as executive officers.
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