Common use of Breach of faith Clause in Contracts

Breach of faith. 9.1 Any such event shall be regarded as breach of faith under the Contract: (1) The Borrower fails to accomplish the obligation of repaying under the Contract; or breach any statement, commitment or guarantee. (2) The state of the Guarantee under the contract get changed which may cause a negative influence on Lxxxxx’s equities, and the Borrower fails to provide another guarantee accepted by Lender. (3) Borrower fails to repay any other due debt (including declared due in advance), or fails to carry out or breaches the obligations under the Contract, which already or may cause Borrower to carry out the obligation under the Contract; (4) The Borrower’s profitability, debt payback ability, solidity or cash flow, etc. such financial index breaks the standard under engagement; or it worsen enough to affect the obligation being carried out under this Contract. (5) A material change occurs to Borrower’s business operating, external investment, which already or may cause Borrower to carry out the obligation under the Contract; (6) Borrower and its directors, corporate representative or principal partner, major sponsor or key officers from the management, such above people get involved or may get involved material economic dispute, lawsuit, arbitration; or asset sealed up, seized, ordered for enforcement; or being investigated or punished by judicial authorities, tax authority, industrial and administrative authorities; or being exposed by public media for breaching State Regulations or policy; which already or may cause Borrower to carry out the obligation under the Contract; (7) Such events occurs to Borrower, change of equity, or change of controlling company relation, partnership, joint venture relation, or natural major investor person, key officer from management is transferred unusually, is missing, under an investigation or under a restriction of personal freedom by certain judicial authorities. (8) Borrower defraud Lender of fund or Credit Line with a false contract with related party or with a blank Contract; or Borrower evades the debt through internal related transaction; (9) Borrower already or may suspend, dismiss, liquid, suspend to reform, business license withdrawn, registry cancellation or applying for a bankrupt (declared a bankrupt); (10) Borrower breaches such laws or regulation related to food safety, safety in production, environment protection, or supervising regulations, or industry standard, and causes an responsible accident , which already or may cause Borrower to carry out the obligation under the Contract; (11) Corporate representative or principal, partner, natural major investor person or key officer from the management, such people get involved with gangland, drug-taking, gambling, smuggling etc. illegal actions. (12) Overdue tax, overdue debt, arrears of wage occur to Borrower. (13) Other events may cause negative influence on realizing the credit’s right under the Contract for Lxxxxx. 9.2 Borrower breach the contract, the lender may take one or more actions as following: (1) Request Borrower to correct its breaches in a period. (2) Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Borrower and Lender, unreleased loan fund, not yet applied trade financing activities. (3) Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately. (4) Claim a compensation to the Borrower of loss caused by the Borrower’s breaches. (5) Other actions that Lender may regard that is necessary and possible pursuant to the laws and regulations. 9.3 The Loan is due (including declared due immediately), the Borrower fails to repay under the contract, the Lender may charge a overdue penalty interest under the Contract. To unpaid overdue interest, a compound interest may be charged in accordance with overdue interest rate. 9.4 Borrower changed the purpose of the loan as engaged under the Contract, the lender may charge a penalty interest on the part of the loan that is changed purpose from the date the loan is diverted in accordance with purpose-diverted penalty interest rate. The interest unpaid during the loan diverting shall be charged a compound interest in accordance with purpose-diverted penalty interest. 9.5 The event describing separately in Item 9.3 and Item 9.4 occur together, the penalty interest rate shall be the highest one, but no several counts. 9.6 The Borrower fails to repay the principal and interest (including penalty interest and compound interest) or other payable account, the Lender may publish an announcement on public media. 9.7 The controlling or being controlled relation among the Borrower and related parties changed, or the events describing in Item 9.1 except the (1), (2) occur to the Borrower’s related parties, which already or may cause Borrower to carry out the obligation under the Contract, the Lender may have a right to take any action under the Contract.

Breach of faith. 9.1 Any such event shall be regarded as breach of faith under the Contract: (1) The Borrower fails to accomplish the obligation of repaying under the Contract; or breach any statement, commitment or guarantee. (2) The state of the Guarantee under the contract get changed which may cause a negative influence on LxxxxxXxxxxx’s equities, and the Borrower fails to provide another guarantee accepted by Lender. (3) Borrower fails to repay any other due debt (including declared due in advance), or fails to carry out or breaches the obligations under the Contract, which already or may cause Borrower to carry out the obligation under the Contract; (4) The Borrower’s profitability, debt payback ability, solidity or cash flow, etc. such financial index breaks the standard under engagement; or it worsen enough to affect the obligation being carried out under this Contract. (5) A material change occurs to Borrower’s business operating, external investment, which already or may cause Borrower to carry out the obligation under the Contract; (6) Borrower and its directors, corporate representative or principal partner, major sponsor or key officers from the management, such above people get involved or may get involved material economic dispute, lawsuit, arbitration; or asset sealed up, seized, ordered for enforcement; or being investigated or punished by judicial authorities, tax authority, industrial and administrative authorities; or being exposed by public media for breaching State Regulations or policy; which already or may cause Borrower to carry out the obligation under the Contract; (7) Such events occurs to Borrower, change of equity, or change of controlling company relation, partnership, joint venture relation, or natural major investor person, key officer from management is transferred unusually, is missing, under an investigation or under a restriction of personal freedom by certain judicial authorities. (8) Borrower defraud Lender of fund or Credit Line with a false contract with related party or with a blank Contract; or Borrower evades the debt through internal related transaction; (9) Borrower already or may suspend, dismiss, liquid, suspend to reform, business license withdrawn, registry cancellation or applying for a bankrupt (declared a bankrupt); (10) Borrower breaches such laws or regulation related to food safety, safety in production, environment protection, or supervising regulations, or industry standard, and causes an responsible accident , which already or may cause Borrower to carry out the obligation under the Contract; (11) Corporate representative or principal, partner, natural major investor person or key officer from the management, such people get involved with gangland, drug-taking, gambling, smuggling etc. illegal actions. (12) Overdue tax, overdue debt, arrears of wage occur to Borrower. (13) Other events may cause negative influence on realizing the credit’s right under the Contract for LxxxxxXxxxxx. 9.2 Borrower breach the contract, the lender may take one or more actions as following: (1) Request Borrower to correct its breaches in a period. (2) Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Borrower and Lender, unreleased loan fund, not yet applied trade financing activities. (3) Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately. (4) Claim a compensation to the Borrower of loss caused by the Borrower’s breaches. (5) Other actions that Lender may regard that is necessary and possible pursuant to the laws and regulations. 9.3 The Loan is due (including declared due immediately), the Borrower fails to repay under the contract, the Lender may charge a overdue penalty interest under the Contract. To unpaid overdue interest, a compound interest may be charged in accordance with overdue interest rate. 9.4 Borrower changed the purpose of the loan as engaged under the Contract, the lender may charge a penalty interest on the part of the loan that is changed purpose from the date the loan is diverted in accordance with purpose-diverted penalty interest rate. The interest unpaid during the loan diverting shall be charged a compound interest in accordance with purpose-diverted penalty interest. 9.5 The event describing separately in Item 9.3 and Item 9.4 occur together, the penalty interest rate shall be the highest one, but no several counts. 9.6 The Borrower fails to repay the principal and interest (including penalty interest and compound interest) or other payable account, the Lender may publish an announcement on public media. 9.7 The controlling or being controlled relation among the Borrower and related parties changed, or the events describing in Item 9.1 except the (1), (2) occur to the Borrower’s related parties, which already or may cause Borrower to carry out the obligation under the Contract, the Lender may have a right to take any action under the Contract.