Common use of Default Responsibility Clause in Contracts

Default Responsibility. 20.1 In case Party A or Party B violates the obligation agreed in the Contract, the party concerned should bear the corresponding default responsibility. 20.2 In case Party A or Party B fails to truthfully make the statement or guarantee under the Contract or abide by the statement or guarantee, such behavior should be deemed as contract violation and the party concerned should bear the corresponding default responsibility. 20.3 In case the default penalty agreed in the Contract is not enough to compensate for the actual loss caused by the defaulting party to the other party, the defaulting party should compensate the other party for all losses caused by the default behavior thereof and for the profits able to be obtained after contract performance, but such profits should not be more than the losses which are caused by contract violation and can or should be predicted at contract conclusion. 20.4 In case Party B fails to repay the loan as scheduled, Party A has the right to collect the interests according to the overdue default interest rate agreed in Article 5.3 of the Contract, and perform other rights agreed in the Contract. 20.5 In case Party B fails to utilize the loan as agreed in the Contract, Party A has the right to collect the interest according to the embezzlement default interest rate agreed in Article 4.4 of the Contract, and perform other rights agreed in the Contract. 20.6 In case of having any one of the following behaviors, Party B should be deemed to violate the Contract, and Party A has the right to directly stop loan issuance and unilaterally terminate the Contract as well as announce the accelerated expiry of the loan, and Party B should not have any objection thereupon. (1) Party B loses the contractual capacity, including but not limited to unscheduled insufficient loan principal or interest repayment to other financial institutions; (2) Party B fails to pay the loan principal and interest or other expenses at a full amount as scheduled; (3) Party B fails to utilize the loan as agreed in the Contract; (4) The funds are not collected as agreed; (5) Party B externally has important investment, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (6) Party B involves in major economic dispute or suffers from financial situation deterioration, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (7) Party B fails to perform any one of the agreements or obligations under the Contract; (8) Party B involves in any untruthful, inaccurate or incomplete statement or guarantee under the Contract, intentional concealment, intentional misconception for others or unimplemented statement or guarantee; (9) Party B violates the obligations against Party A under any one of the cooperation documents including but not limited to the Mortgage Contract, the Guaranty Contract, the Gold Pledge Contract, etc.; (10) Party B fails to ensure the continuous satisfaction of the prerequisite conditions for loan issuance within the loan term; (11) Party B fails to strength or replace the guarantee measures as required by Party A; (12) Other cases that Party A deems to influence the realization of the creditor’s rights thereof. 20.7 In case one party violates the Contract and accordingly causes the other party to realize the creditor’s rights thereof through litigation, the defaulting party should bear the reasonable expense paid by the other party for the litigation, including but not limited to legal fare, preservation fee, execution fee, execution fee, assessment expense, auction fee, delivery expense, announcement fee, counsel fee, travel expense, copying charge, information cost, etc.

Default Responsibility. 20.1 In case Party A or Party B violates the obligation agreed in the Contract, the party concerned should bear the corresponding default responsibility. 20.2 In case Party A or Party B fails to truthfully make the statement or guarantee under the Contract or abide by the statement or guarantee, such behavior should be deemed as contract violation and the party concerned should bear the corresponding default responsibility. 20.3 In case the default penalty agreed in the Contract is not enough to compensate for the actual loss caused by the defaulting party to the other party, the defaulting party should compensate the other party for all losses caused by the default behavior thereof and for the profits able to be obtained after contract performance, but such profits should not be more than the losses which are caused by contract violation and can or should be predicted at contract conclusion. 20.4 In case Party B fails to repay the loan Loan as scheduled, Party A has the right to collect the interests according to the overdue default interest rate Overdue Default Interest Rate agreed in Article 5.3 of the Contract, and perform other rights agreed in the Contract. 20.5 In case Party B fails to utilize the loan Loan as agreed in the Contract, Party A has the right to collect the interest according to the embezzlement default interest rate Embezzlement Default Interest Rate agreed in Article 4.4 of the Contract, and perform other rights agreed in the Contract. 20.6 In case of having any one of the following behaviors, Party B should be deemed to violate the Contract, and Party A has the right to directly stop loan issuance and unilaterally terminate the Contract as well as announce the accelerated expiry of the loanLoan, and Party B should not have any objection thereupon. (1) Party B loses the contractual capacity, including but not limited to unscheduled insufficient loan principal or interest repayment to other financial institutions; (2) Party B fails to pay the loan Loan principal and interest or other expenses at a full amount as scheduled; (3) Party B fails to utilize the loan Loan as agreed in the Contract; (4) The funds are not collected as agreed; (5) Party B externally has important investment, etc.and so on, thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (6) Party B involves in major economic dispute or suffers from financial situation deterioration, etc.and so on, thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (7) Party B fails to perform any one of the agreements or obligations under the Contract; (8) Party B involves in any untruthful, inaccurate or incomplete statement or guarantee under the Contract, intentional concealment, intentional misconception for others or unimplemented statement or guarantee; (9) Party B violates the obligations against Party A under any one of the cooperation documents Cooperation Documents including but not limited to the Mortgage Contract, the Guaranty Contract, the Gold Pledge Contract, etc.and so on; (10) Party B fails to ensure the continuous satisfaction of the prerequisite conditions Prerequisite Conditions for loan issuance Loan Issuance within the loan termLoan Term; (11) Party B fails to strength or replace the guarantee measures as required by Party A; (12) Other cases that Party A deems to influence the realization of the creditor’s rights thereof. 20.7 In case one party violates the Contract and accordingly causes the other party to realize the creditor’s rights thereof through litigation, the defaulting party should bear the reasonable expense paid by the other party for the litigation, including but not limited to legal fare, preservation fee, execution fee, execution fee, assessment expense, auction fee, delivery expense, announcement fee, counsel fee, travel expense, copying charge, information cost, etcand so on.

Default Responsibility. 20.1 6.1 In case of loss of Party A's reputation caused by the reason attributable to Party B, Party B shall pay Party A RMB[Two Hundred Thousand] only as liquidated damages within 5 days starting from the date of causing Party A's loss, and Party A is also entitled to unilaterally rescind this Contract; 6.2 Where Party B delays in delivery, for every overdue day, Party B shall pay Party A liquidated damages no less than RMB1,000 for each order; if the delay in delivery exceeds 5 days, Party A is entitled to cancel the order or/and rescind this Contract and unfilled order, meanwhile, Party B shall pay Party A liquidated damages equivalent to 20% of total price of the corresponding order in order cancellation, if such liquidated damages are not sufficient to cover Party A's loss, Party B shall still make the compensation therefor. For relevant payment for goods already paid by Party A, Party B shall refund it to Party A within 1 day; 6.3 If Party B provides false, invalid materials or fails to provide materials in due time, Party A is entitled to ask Party B for compensating the loss caused thereby and rescind this Contract; 6.4 If Party B violates the obligation agreed in the Contractany one of Subparagraph 7 or Subparagraph 7, the party concerned should bear the corresponding default responsibility. 20.2 In case Party A or Party B fails to truthfully make the statement or guarantee under the Contract or abide by the statement or guaranteeParagraph 1, such behavior should be deemed as contract violation and the party concerned should bear the corresponding default responsibility. 20.3 In case the default penalty agreed in the Contract is not enough to compensate for the actual loss caused by the defaulting party to the other party, the defaulting party should compensate the other party for all losses caused by the default behavior thereof and for the profits able to be obtained after contract performance, but such profits should not be more than the losses which are caused by contract violation and can or should be predicted at contract conclusion. 20.4 In case Party B fails to repay the loan as scheduled, Party A has the right to collect the interests according to the overdue default interest rate agreed in Article 5.3 5 of the Contract, and perform other rights agreed in the Contract. 20.5 In case Party B fails to utilize the loan as agreed in the this Contract, Party A has is entitled to reject the right to collect the interest according to the embezzlement default interest rate agreed in Article 4.4 goods, meanwhile, for every time of the Contract, and perform other rights agreed in the Contract. 20.6 In case of having any one of the following behaviorsoccurrence, Party B should be deemed shall pay Party A RMB1,000/product as liquidated damages; 6.5 If Party B violates Paragraph 1, Article 5 of this Contract, Party B shall pay Party A RMB[Five Hundred Thousand] or [10] times of total accumulative amounts of supplying relevant products agreed herein as liquidated damages, whichever is higher. Among them, if the products supplied by Party B to violate Party A are the counterfeit products as stipulated in Paragraph 2.9, then Party B shall pay Party A the liquidated damages of higher amount, namely: RMB[One Million] or [10] times of accumulative amounts of supply hereunder, whichever is higher; 6.6 Party B ensures that the price for supplying products to Party A is the best price. Otherwise Party B shall pay Party A 10 times of the supply price of the concerned product as liquidated damages; 6.7 If Party B purchases the products for which both parties already have built partnership directly or indirectly from Party A, or support or in disguised form falsely increase the sales amount and performance evaluation, Party B shall pay Party A 2 times of the total purchase amount of the concerned products as liquidated damages. 6.8 If the action of Party B is suspected of lawbreaking or violating the agreement of this Contract, Party A is entitled to suspend the payment for goods to Party B starting from the date of receiving the letter of administrative investigation issued by administrative authority on initiating an investigation or the date of Party B's noncompliance, and will make the payment for goods to Party B as agreed after the case has been closed or corresponding remedial measure has been taken for the noncompliance. If the action of Party B is lawbreaking or violating the agreement of this Contract, and Party B shall pay liquidated damages or compensation to Party A has the right to directly stop loan issuance and unilaterally terminate the Contract as well as announce the accelerated expiry of the loan, and Party B should not have any objection thereupon. (1) Party B loses the contractual capacity, including but not limited to unscheduled insufficient loan principal or interest repayment to other financial institutions; (2) Party B fails to pay the loan principal and interest payables in due time, Party A is entitled to to deduct the corresponding amount from the accounts payable or other expenses at a full amount as scheduled; (3) security deposit, in case of any shortage, Party B fails shall still make the payment to utilize the loan as agreed in the Contract; (4) The funds are not collected as agreed; (5) Party B externally has important investment, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (6) Party B involves in major economic dispute or suffers from financial situation deterioration, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (7) Party B fails to perform any one of the agreements or obligations under the Contract; (8) Party B involves in any untruthful, inaccurate or incomplete statement or guarantee under the Contract, intentional concealment, intentional misconception for others or unimplemented statement or guarantee; (9) Party B violates the obligations against Party A under any one of the cooperation documents including but not limited to the Mortgage Contract, the Guaranty Contract, the Gold Pledge Contract, etc.; (10) Party B fails to ensure the continuous satisfaction of the prerequisite conditions for loan issuance within the loan term; (11) Party B fails to strength or replace the guarantee measures as required by Party A; (12) Other cases that Party A deems to influence the realization of the creditor’s rights thereof. 20.7 In case one party violates the Contract and accordingly causes the other party to realize the creditor’s rights thereof through litigation, the defaulting party should bear the reasonable expense paid by the other party for the litigation, including but not limited to legal fare, preservation fee, execution fee, execution fee, assessment expense, auction fee, delivery expense, announcement fee, counsel fee, travel expense, copying charge, information cost, etc.A.

Default Responsibility. 20.1 In case 13.1 Should Party A or Party B violates fail to deliver the obligation agreed Lease Subject within the period specified in the Contract, the party concerned should bear the corresponding default responsibility. 20.2 In case Party A or Party B fails to truthfully make the statement or guarantee under the this Contract or abide by the statement or guarantee, such behavior should be deemed as contract violation and the party concerned should bear the corresponding default responsibility. 20.3 In case the default penalty agreed result in the Contract is not enough to compensate for the actual loss caused by the defaulting party to the other party, the defaulting party should compensate the other party for all losses caused by the default behavior thereof and for the profits able to be obtained after contract performance, but such profits should not be more than the losses which are caused by contract violation and can or should be predicted at contract conclusion. 20.4 In case Party B fails to repay the loan as scheduled, Party A has the right to collect the interests according to the overdue default interest rate agreed in Article 5.3 termination (abolishment) of the Contract, and perform other rights agreed in the Contract. 20.5 In case Party B fails to utilize the loan as agreed in the this Contract, Party A has shall indemnify Party B correspondingly. 13.2 Should Party A take back the right Lease Subject earlier, Party A shall pay THREE HUNDRED AND FIFTY THOUSAND RENMINBI YUAN (RMB 350,000) to collect Party B as penalty. 13.3 During the interest according term of this Contract, should Party B fail to pay the expenses that shall be borne by Party B as set forth in this Contract, for each late day, Party B shall pay twice of the said daily expense to Party A. For payment overdue more than 15 days, Party B shall be fully responsible for the losses resulted to both parties. 13.4 During the term of this Contract, should Party B discontinue to lease the Subject without Party A’s consent, in addition to the embezzlement default interest rate agreed in Article 4.4 of the Contractdeposit that shall be detained, and perform other rights agreed in the Contractanother two hundred thousand Renminbi (RMB 200,000) shall be paid to Party A as penalty. 20.6 13.5 In case of having any one of the following behaviorsoverdue payment, Party B should shall pay twice of daily rental for each overdue day as penalty. 13.6 Party B shall turn the Lease Subject back to Party A within 15 days after expiration of this Contract. Should Party B be deemed late to violate return the Lease Subject, Party B shall pay twice of the previous daily rental for each day of late return, and the deposit shall be detained. For over 15 days that Party B neither turn back the Lease Subject nor discuss with Party A about renewal, Party A is entitled to cease water and power supply. Loss and damage caused due to late return of the Lease Subject to Party A shall indemnified by Party B in addition to the said twice daily rental. 13.7 After expiration of this Contract, and Party A has the right is entitled to directly stop loan issuance and unilaterally terminate the Contract as well as announce the accelerated expiry of the loan, and request Party B should not have any objection thereupon. (1) to resume the Lease Subject to original status. Should Party B loses the contractual capacity, including but not limited fail to unscheduled insufficient loan principal or interest repayment to other financial institutions; (2) Party B fails to pay the loan principal and interest or other expenses at a full amount as scheduled; (3) Party B fails to utilize the loan as agreed in the Contract; (4) The funds are not collected as agreed; (5) Party B externally has important investment, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (6) Party B involves in major economic dispute or suffers from financial situation deterioration, etc., thus significantly influencing or threatening the realization of the creditor’s rights of Party A; (7) Party B fails to perform any one of the agreements or obligations under the Contract; (8) Party B involves in any untruthful, inaccurate or incomplete statement or guarantee under the Contract, intentional concealment, intentional misconception for others or unimplemented statement or guarantee; (9) Party B violates the obligations against Party A under any one of the cooperation documents including but not limited to the Mortgage Contract, the Guaranty Contract, the Gold Pledge Contract, etc.; (10) Party B fails to ensure the continuous satisfaction of the prerequisite conditions for loan issuance do so within the loan term; (11) Party B fails to strength or replace the guarantee measures as required period requested by Party A; (12) Other cases that , Party A deems may conduct the resuming operation, and costs and expenses so occurred shall be deducted from the deposit, the portion exceeding the deposit shall be indemnified by Party B. 13.8 Should Party A put the Lease Subject under mortgage and makes it impossible to influence the realization perform (or impossible to continue performing) this Contract, Party A shall pay 3% of the creditor’s rights thereof. 20.7 In case one party violates total contract amount to Party B to indemnify the Contract loss and accordingly causes the other party to realize the creditor’s rights thereof through litigation, the defaulting party should bear the reasonable expense paid damage suffered by the other party for the litigation, including but not limited to legal fare, preservation fee, execution fee, execution fee, assessment expense, auction fee, delivery expense, announcement fee, counsel fee, travel expense, copying charge, information cost, etc.Party B.