Common use of Events of Default and Handling Clause in Contracts

Events of Default and Handling. 13.1 If Party B is found to have been in any of the following situations, it shall be deemed as an occurrence of events of default: 13.1.1 In violation of Clause 7.2.1 hereof, Party B provides false materials to or withholds true important facts from Party A or does not give cooperation in Party A's investigations, reviews and examinations, and it fails to remedy such default within the reasonable period specified by Party A and such default is considered to be material; 13.1.2 In violation of Clause 7.2.2 hereof, Party B refuses to accept or evades Party A’s supervision over its use of credit facilities, operations and financial activities and such default is considered to be material; 13.1.3 In violation of Clause 7.2.3 hereof, Party B does not use the Loan for the purpose prescribed herein and such default is considered to be material; 13.1.4 In violation of Clause 7.2.4 hereof, Party B fails to make timely and full payment of the principal and interest of the Loan as agreed herein; 13.1.5 In violation of Clause 7.2.5 hereof, Party B transfers the debts hereunder to a third party without authorization, impairing the benefits of Party A; 13.1.6 In violation of Clause 7.2.6 hereof, Party B fails to promptly notify Party A of any occurrence of the events prescribed therein or it fails to take measures for further securing payment of the debts hereunder as required by Party A after having knowledge of such occurrence or Party A considers that the Loan is insecure; 13.1.7 Party B is in violation of Clauses 9.1, 9.2 and 9.4 hereof which impair Party A’s benefits or in violation of Clauses 9.3, 9.5, 9.6, and 9.7 hereof, Party B fails to remedy its default immediately on demand of Party A which impair Party A's benefits; 13.1.8 Party B is in other situations that may, in the opinion of Party A, affect Party A's legal interests. 13.2 If the guarantor is found to have been in any of the following situations, which Party A considers that it is likely to affect the capability of the guarantor to perform its obligations under the guarantee and requires the guarantor to eliminate such adverse effects, or requires Party B to increase or change the terms of guarantee, but the guarantor and Party B fail to do so, it shall be deemed as an occurrence of events of default: 13.2.1 Any of the events similar to those described in Clause 7.2.6 hereof occurs; 13.2.2 The guarantor has concealed the information on its capability to undertake the obligations of the guarantee or has not obtained authorization from the authority when executing the Irrevocable Letter of Guarantee; 13.2.3 The guarantor fails to keep the registration in force by going through the annual examination formalities; 13.2.4 The guarantor neglects to manage and enforce its claim for the matured liabilities, or disposes of its existing major assets for no considerations or in other improper manners. 13.3 If the mortgagor (or the pledgor) is found to have been in any of the following situations, which Party A considers that the creation of mortgage (or pledge) is likely to end in failure or the value of the security (or the collateral) is likely to have a fall, and requires the mortgagor (or the pledgor) to eliminate such adverse effects, or requires Party B to increase or change the terms of guarantee, but the mortgagor (or the pledgor) and Party B fail to do so, it shall be deemed as an occurrence of events of default: 13.3.1 The mortgagor (or the pledgor) has no title to or right to dispose of the security (or the collateral), or such title or right is in dispute; 13.3.2 The mortgagor (or the pledgor) conceals the facts that the security (or the collateral) is jointly owned, leased, distrained or taken over; 13.3.3 Without prior written consent from Party A, the mortgagor transfers, leases out, places a second mortgage on the security or disposes of the security in any other improper manner; 13.3.4 The mortgagor fails to keep the security in safe custody or to maintain and repair the security properly, leading to substantial depreciation of the value of the security; or the mortgagor's actions jeopardize the security directly, leading to a fall in the value of the security, or the mortgagor fails to keep the security insured as required by Party A during the continuance of the mortgage. 13.4 Should any of the events of default described in Clauses 13.1, 13.2 and 13.3 occurs, Party A is entitled to take the following measures separately or simultaneously and Party B shall not raise any objection thereto: 13.4.1 To stop releasing the agreed and unused Loan; 13.4.2 To declare the principal and interest of the Loan granted and relevant expenses immediately due and payable; 13.4.3 To satisfy all the debts hereunder by deducting the same directly from Party B’s settlement account or other accounts; 13.4.4 To make recourse pursuant to Clause 16 hereof.

Events of Default and Handling. 13.1 If 10.1. It shall be an event of default if Party B is found to have been finds itself in any one of the following situations, it shall be deemed as an occurrence of events of default: 13.1.1 In 10.1.1. in violation of Clause 7.2.1 6.2.1 hereof, Party B provides false materials to or withholds true important facts from Party A or does not give cooperation in cooperate with Party A's investigations, reviews and or examinations, and it fails to remedy such default within the reasonable period specified by Party A and such default is considered to be material; 13.1.2 In 10.1.2. in violation of Clause 7.2.2 6.2.2 hereof, Party B refuses to accept or evades Party A’s 's supervision over its use of credit facilitiesFacilities, operations and financial activities and such default is considered to be materialactivities; 13.1.3 In 10.1.3. in violation of Clause 7.2.3 6.2.3 hereof, Party B does not use the Loan Facilities and/or other financing for the purpose purposes prescribed herein in this Agreement and such default is considered to be materialthe relevant contracts; 13.1.4 In 10.1.4. in violation of Clause 7.2.4 6.2.4 hereof, Party B fails to make timely and full payment of the principal and interest of the Loan as agreed hereinloans, advances and other debts in accordance with this Agreement and/or the relevant contracts; 13.1.5 In 10.1.5. in violation of Clause 7.2.5 6.2.5 hereof, Party B transfers the debts its outstanding liabilities hereunder to a third party without authorization, impairing the benefits of Party A; 13.1.6 In ; or in violation of Clause 7.2.6 6.2.7 hereof, fails to diligently manage or exercise its matured creditor’s right, or disposes of its existing major assets without consideration or by other inappropriate means; 10.1.6. in violation of Clause 6.2.6 hereof, Party B fails to promptly notify Party A of any occurrence of the events prescribed therein or it fails to take cooperate in taking additional protective measures for further securing payment of the debts hereunder as required by Party A after having knowledge of such occurrence or any event considered by Party A considers that as affecting the Loan is insecurerepayment of the principal and interest of the credit; 13.1.7 Party B is 10.1.7. in violation of Clauses 9.18.1, 9.2 and 9.4 8.2 or 8.5 hereof which impair Party A’s benefits or in violation of Clauses 9.38.3, 9.58.4, 9.68.6, 8.7, 8.8 or 8.9 hereof and 9.7 hereof, Party B fails to remedy its default immediately on demand of Party A which impair upon request by Party A's benefits;; and 13.1.8 Party B is in other situations that may, in the opinion of Party A, affect Party A's legal interests. 13.2 10.2. If the guarantor is found to have been be in any of the following situations, situations which Party A considers that it is likely to may affect the capability ability of the guarantor to perform its obligations under the guarantee and requires duties as a guarantor, Party A may require either the guarantor to eliminate such adverse effects, take remedial action or requires Party B to increase add or change modify the terms of guarantee, but guarantee and if the guarantor and Party B fail to do socooperate, it shall be deemed as an occurrence of events event of default: 13.2.1 Any 10.2.1. any of the events similar to those described in Clause 7.2.6 6.2.6 hereof occurs; 13.2.2 The guarantor has concealed the information on 10.2.2. non-disclosure of its capability inability to undertake the obligations of the guarantee or has not obtained failure to obtain authorization from the relevant authority when executing at the Irrevocable Letter time of Guaranteeexecution of the irrevocable letter of guarantee; 13.2.3 The guarantor fails 10.2.3. failure to keep the registration in force by going through attend to the annual registration and examination formalities;; and 13.2.4 The guarantor neglects 10.2.4. failure to diligently manage and enforce or exercise its claim for the matured liabilitiescreditor’s right, or disposes disposal of its existing major assets for no considerations without value or in by other improper mannersinappropriate means. 13.3 10.3. If the mortgagor (or the pledgor) is found to have been be in any of the following situations, situations which Party A considers that may invalidate the creation of mortgage (or pledge) is likely to end in failure or render the value of the security mortgaged property (or the collateralpledged property) is likely to have a fallfalling below the required valuation, and requires Party A may require the mortgagor (or the pledgor) to eliminate such adverse effects, take remedial action or requires Party B to increase add or change modify the terms of guarantee, but security and if the mortgagor (or the pledgor) and Party B fail to do socooperate, it shall be deemed as an occurrence of events event of default: 13.3.1 The mortgagor (or the pledgor) has 10.3.1. no title to or right to dispose of the security mortgaged property (or the collateralpledged property), or such title or right is in dispute; 13.3.2 The mortgagor 10.3.2. the mortgaged property (or the pledgorpledged property) conceals the facts that the security (or the collateral) is jointly owned, has already been leased, distrained seized, detained, under supervision or taken overParty A's security is subject to a prior or preferential right (including but not limited to preferential construction costs), and/or the non-disclosure of the same; 13.3.3 Without 10.3.3. without prior written consent from Party A, the mortgagor transfers, leases out, places a second mortgage on re-mortgages the security mortgaged property or otherwise disposes of the security in any mortgaged property by other improper manner;inappropriate means, or the mortgagor disposes of the mortgaged property with written consent from Party A but contrary to Party A's request, the proceeds from such disposal are not used to repay the debts owed by Party B to Party A. 13.3.4 The 10.3.4. the mortgagor fails to keep the security mortgaged property in safe custody or to maintain and repair the security mortgaged property properly, leading to substantial depreciation of in the value of the securitymortgaged property; or the mortgagor's actions jeopardize directly jeopardizes the security directlymortgaged property, leading to a fall depreciation in the value of the securitymortgaged property, or the mortgagor fails to keep the security mortgaged property insured as required by Party A during the continuance of the mortgage. 13.4 10.4. Should any of the events of default described in Clauses 13.110.1, 13.2 10.2 and 13.3 10.3 occurs, Party A is shall be entitled to take the following measures separately or simultaneously and Party B shall not raise any objection theretosimultaneously: 13.4.1 To stop releasing 10.4.1. to reduce the agreed and unused LoanFacilities hereunder or prohibit the use of the remaining Facilities; 13.4.2 To 10.4.2. to declare the principal and interest of the Loan granted loan drawn under the Facilities and relevant expenses to be immediately due and payable; 13.4.3 To 10.4.3. in respect of draft accepted or letter of credit (including the re-issuance of letter of credit), letter of guarantee and letter of shipping guarantee issued by Party A, irrespective of whether Party A has made any advance or not to request for additional margin from Party B or to transfer such amount from another account of Party B maintained at Party A to the margin account for settlement of any future advances that may be made by Party A under this Agreement or to place the same in the custody of a third party as margin for any future advances to be made by Party A; 10.4.4. in respect of outstanding accounts receivables assigned to Party A by Party B under with recourse domestic factoring or export factoring, to request Party B to perform its repurchase obligations immediately; in respect of accounts receivables assigned to Party A by Party B under without recourse domestic factoring or import factoring, to claim from Party B immediately; 10.4.5. to satisfy all the debts hereunder outstanding liabilities owed by deducting Party B under this Agreement and all specific contracts by debiting the same directly from Party B’s 's settlement account or other accounts; 13.4.4 To make 10.4.6. to seek recourse pursuant to Clause 16 13 hereof.