Common use of Events of Default and Handling Clause in Contracts

Events of Default and Handling. One of the following events constitutes or can be considered as the guarantor’s default of the contract: 1. The guarantor does not timely perform the guaranteeing responsibilities according to the agreement of the contract; 2. The declarations made in the contract are not true or breach the commitments made in the contract; 3. The event described in Clause 6 of Article IX occurs, having a strong impact on the finance and capacity to perform the contract of the guarantor; 4. The guarantor terminates operation or events of disbandment, revocation and bankrupt occur; 5. The guarantor violates other agreements relating to rights and obligations of litigants; 6. The guarantor has other events of default under the contract with the creditor or Bank of China Limited or other banks. When the events of default specified in the above clauses appear, the creditor has the right to separately or simultaneously take the following actions as the case maybe: 1. Require the guarantor to correct the breach within a limited time; 2. Wholly or partly scale down, suspend or terminate the guarantor’s line of credit; 3. Wholly or partly suspend or terminate other business applications of the guarantor under the contract; wholly or partly suspend or terminate the granting and handling of the non-granted credit and non-handled trade financing; 4. Announce that the whole or part of the guarantor’s outstanding loan, interest on principal of trade financing and other payable fund under the contract become immediately due; 5. Terminate or cancel the contract, and wholly or partly terminate or cancel other contracts between the guarantor and the creditor; 6. Require the guarantor to compensate the loss of the creditor caused by the breach; 7. The creditor only needs the advance notice or post notice to deduct the fund from the guarantor’s account opened at the creditor’s side to wholly or partly clear off the guarantor’s debt to the creditor. The undue funds in the account shall be considered to be due ahead of time. In case the currency type of the account is different from the creditor’s money of account, the deduction is in line with the exchange rate of the foreign exchange sale and purchase. 8. Other actions that the creditor considers necessary.

Events of Default and Handling. One Any of the following events constitutes will constitute or can be considered deemed as the guarantor’s default a breach of the contractcontract by the Borrower: 1. The guarantor does not timely perform Borrower fails to fulfill its obligation to repay and pay up the guaranteeing responsibilities according to the agreement of the contractLender as agreed herein; 2. The declarations made in Borrower fails to utilize the contract are not true loan capital by the methods agree herein or breach use the commitments made in the contractloan capital granted for purposes agreed herein; 3. The event described Representations made by the Borrower in Clause 6 of Article IX occurs, having a strong impact on this Agreement are not faithful or violate the finance and capacity to perform the contract of the guarantorcovenants it makes herein; 4. The guarantor terminates operation Lender deems that the financial status and contractual capacity of the Borrower or events the Guarantor may be affected under the circumstances as provided in Item (4) Para. 2 of disbandment, revocation and bankrupt occurArticle 10 hereof but the Borrower does not provide new guarantee or replace the Guarantor; 5. The guarantor violates credit status of the Borrower is downgraded or financial indicators of the Borrower, including profitability, debt paying ability, operation capacity, and cash flow, deteriorate beyond the constraints or other financial agreements relating to rights and obligations of litigantsas agreed herein; 6. The guarantor has Borrower breaches other events of default under the contract contracts entered into with the creditor Lender or other organs of Bank of China Limited Limited; the Borrower breaches the credit facility contracts entered into with other financial institutes; 7. The Guarantor breaches the agreements under the guarantee contract or breaches the agreements under other contracts entered into with the Lender or other banksorgans of Bank of China Limited; 8. When The Borrower closes down or is dissolved, cancelled, or bankrupt; 9. The Borrower is involved or may be involved in major economic disputes, lawsuits, or arbitration, its assets are seized, detained, or enforced against, or it is subject to investigation or penalty by the judiciary authority or administrative authorities including tax bureau and industry and commerce administrations, which have or may affect the Borrower’s performance of its obligations hereunder; 10. There are abnormal changes to major investors and key executives of the Borrower or they are lost or under investigation or held in custody by the judiciary authorities, which have affected or may affect the Borrower’s performance of obligations hereunder; 11. The Lender finds existence of situations that may affect the financial status and contractual capacity of the Borrower or the Guarantor during its annual (namely every anniversary of the Agreement) review of the Borrower’s financial status and contractual capacity; 12. There is abnormal capital flow in large amount into or from the designated returned fund account and the Borrower fails to provide explanations acceptable to the Lender; 13. The Borrower breaches other agreements herein regarding the rights and obligations of the parties hereto. In the case of the aforesaid events of default specified in the above clauses appeardefault, the creditor Lender has the right to separately or simultaneously take the following actions as depending on the case maybespecific circumstances: 1. Require Request the guarantor Borrower and the Guarantor to correct redress the breach within a limited given period of time; 2. Wholly or partly scale downReduce, suspend or cancel, or terminate a part of all of the guarantor’s line of creditloan granted to the Borrower; 3. Wholly Suspend or partly stop acceptance of all or a part of the Borrower’s utilization requests under this Agreement or other contracts between the Borrower and the Lender; for the loan amount yet to be granted and trade financing yet to be handled, fully or partially suspend or terminate other business applications of the guarantor under the contract; wholly or partly suspend cancel, or terminate the loan granting and handling of the non-granted credit payment and non-handled trade financingprocedure handling; 4. Announce that the whole Declare immediate maturity of all or a part of the guarantor’s principals and interests and other amounts payable of outstanding loan, interest on principal of loans/trade financing items under this Agreement or other contracts between the Borrower and other payable fund under the contract become immediately dueLender; 5. Terminate or cancel the contract, rescind this Agreement and wholly fully or partly partially terminate or cancel rescind other contracts between the guarantor Borrower and the creditorLender; 6. Require Claim indemnity for losses incurred to the guarantor to compensate the loss Lender by breach of the creditor caused by Agreement against the breachBorrower, including but not limited to litigation fees, attorney’s fees, notary fees, execution fees, and other expense losses incurred for realization of claims; 7. The creditor only needs Deduct the advance notice or post notice to deduct the fund balance from the guarantor’s account opened at accounts that the creditor’s side to wholly Borrower opens with the Lender and other branches of Bank of China Limited for repayment of all or partly clear off a part of the guarantor’s debt to loan that the creditorBorrower borrows from the Lender hereunder. The undue funds Immature amounts in the account shall accounts will be considered to be due ahead of timedeemed mature early. In case Where the currency type of the account is different from the creditor’s money business settlement currency of accountthe Lender, the deduction is in line with amount will be translated at the applicable exchange rate quotation of the foreign exchange sale and purchaseLender at the time of deduction. 8. Exercise security interest; 9. Request the Guarantor to assume guarantee liability; 10. Other actions that the creditor considers necessaryLender deems necessary and feasible.

Events of Default and Handling. One Article 21 Any of the following events constitutes or can be considered as the guarantor’s shall constitute an event of default of the contractunder this Contract: 1. The guarantor does not timely perform the guaranteeing responsibilities according Borrower fails to the agreement pay any principal or interest when due and payable pursuant to provisions of the contractthis Contract; 2. The declarations made in Borrower fails to use the contract are not true or breach Loan for the commitments made in the contractpurpose set forth herein; 3. The event described in Clause 6 of Article IX occurs, having a strong impact on Borrower fails to draw the finance and capacity to perform the contract of the guarantorLoan as provided herein; 4. The guarantor terminates operation or events Borrower is in breach of disbandment, revocation and bankrupt occurthe relevant provisions of the Entrustment Agreement with respect to the Borrower; 5. The Any representation made by the Borrower under this Contract or any representation made by the guarantor violates other agreements relating under the relevant guarantee contract proves to rights and obligations of litigantsbe incorrect or misleading; 6. The guarantor has other events of default under the contract with the creditor Borrower or Bank of China Limited or other banks. When the events of default specified in the above clauses appear, the creditor has the right to separately or simultaneously take the following actions as the case maybe: 1. Require the guarantor to correct is in breach of any covenant or warrant made in this Contract or the breach within a limited time; 2. Wholly or partly scale down, suspend or terminate the guarantor’s line of credit; 3. Wholly or partly suspend or terminate other business applications of the guarantor under the relevant guarantee contract; wholly or partly suspend or terminate the granting and handling of the non-granted credit and non-handled trade financing; 4. Announce that the whole or part of the guarantor’s outstanding loan, interest on principal of trade financing and other payable fund under the contract become immediately due; 5. Terminate or cancel the contract, and wholly or partly terminate or cancel other contracts between the guarantor and the creditor; 6. Require the guarantor to compensate the loss of the creditor caused by the breach; 7. The creditor only needs the advance notice or post notice to deduct the fund from the guarantor’s account opened at the creditor’s side to wholly or partly clear off the guarantor’s debt to the creditor. The undue funds in the account shall be considered to be due ahead of time. In case the currency type of the account is different from the creditor’s money of account, the deduction Borrower is in line with the exchange rate material breach of the foreign exchange sale and purchase.any other contract to which it is a party; 8. Other actions that The operation or financial status of the creditor considers necessaryBorrower or the guarantor materially deteriorates; 9. Any collateral relating to the Loan hereunder depreciates or is destroyed or lost; 10. No repayment arrangement or debt restructuring satisfactory to the Lender has been made in case of any merger, division or joint stock system reform of the Borrower or the guarantor; 11. The Borrower or the guarantor is or becomes bankrupt, dissolved, closed down or cancelled; 12. The Borrower fails to notify the Lender of the following events promptly: (i) any material change in the export of its Products or failure to realize its Products export plan in whole or in part; (ii) any amendment to its articles of association or any substantial change in its business activities; (iii) any material amendment to its accounting principles; (iv) any material change in the financial, economic or other status of it or any of its subsidiaries or its parent (including any litigation, arbitration or administrative proceeding involving the Borrower which may have a material adverse affect on its financial status or its ability to perform its obligations in accordance with this Contract). 13. The Borrower is breach of any other provision of this Contract. Article 22 The Lender shall determine whether or not an event of default described above has occurred and notify the Borrower thereof. Upon the occurrence of any event of default set forth above, the Lender shall be entitled to take one or more of the following actions: (i) request the Borrower to cure such breach within a set period of time; (ii) cancel the amount of the Loan unutilized by the Borrower; (iii) declare all outstanding Loan to be immediately due and require the Borrower to immediately repay all outstanding principal of and interest on the Loan and other sums payable; (iv) require the Borrower to procure additional or replacement guarantee(s) or collateral; (v) deduct directly any amount not paid by the Borrower when due hereunder (including, but not limited to, the principal of and interest on the Loan) from any account in any currency maintained by the Borrower with any branch in or out of China of the Agent or any other bank; or (vi) declare to exercise or realize any right under the relevant guarantee relating to the Loan.

Events of Default and Handling. One Article 21 Any of the following events constitutes or can be considered as the guarantor’s shall constitute an event of default of the contractunder this Agreement: 1. The guarantor does not timely perform the guaranteeing responsibilities according Borrower fails to the agreement pay any principal or interest when due and payable pursuant to provisions of the contractthis Agreement; 2. The declarations made in Borrower fails to use the contract are not true or breach Loan for the commitments made in the contractpurpose set forth herein; 3. The event described in Clause 6 of Article IX occurs, having a strong impact on Borrower fails to draw the finance and capacity to perform the contract of the guarantorLoan as provided herein; 4. The guarantor terminates operation or events Borrower is in breach of disbandment, revocation and bankrupt occurthe relevant provisions of the Entrustment Agreement with respect to the Borrower; 5. The Any representation made by the Borrower under this Agreement or any representation made by the guarantor violates other agreements relating under the relevant guarantee contract proves to rights and obligations of litigantsbe incorrect or misleading; 6. The guarantor has other events of default under the contract with the creditor Borrower or Bank of China Limited or other banks. When the events of default specified in the above clauses appear, the creditor has the right to separately or simultaneously take the following actions as the case maybe: 1. Require the guarantor to correct is in breach of any covenant or warrant made in this Agreement or the breach within a limited time; 2. Wholly or partly scale down, suspend or terminate the guarantor’s line of credit; 3. Wholly or partly suspend or terminate other business applications of the guarantor under the relevant guarantee contract; wholly or partly suspend or terminate the granting and handling of the non-granted credit and non-handled trade financing; 4. Announce that the whole or part of the guarantor’s outstanding loan, interest on principal of trade financing and other payable fund under the contract become immediately due; 5. Terminate or cancel the contract, and wholly or partly terminate or cancel other contracts between the guarantor and the creditor; 6. Require the guarantor to compensate the loss of the creditor caused by the breach; 7. The creditor only needs the advance notice or post notice to deduct the fund from the guarantor’s account opened at the creditor’s side to wholly or partly clear off the guarantor’s debt to the creditor. The undue funds in the account shall be considered to be due ahead of time. In case the currency type of the account is different from the creditor’s money of account, the deduction Borrower is in line with the exchange rate material breach of the foreign exchange sale and purchase.any other contract to which it is a party; 8. Other actions that The operation or financial status of the creditor considers necessaryBorrower or the guarantor materially deteriorates; 9. Any collateral relating to the Loan hereunder depreciates or is destroyed or lost; 10. No repayment arrangement or debt restructuring satisfactory to the Lender has been made in case of any merger, division or joint stock system reform of the Borrower or the guarantor; 11. The Borrower or the guarantor is or becomes bankrupt, dissolved, closed down or cancelled; 12. The Borrower fails to notify the Lender of the following events promptly: (i) any material change in the export of its Products or failure to realize its Products export plan in whole or in part; (ii) any amendment to its articles of association or any substantial change in its business activities; (iii) any material amendment to its accounting principles; (iv) any material change in the financial, economic or other status of it or any of its subsidiaries or its parent (including any litigation, arbitration or administrative proceeding involving the Borrower which may have a material adverse affect on its financial status or its ability to perform its obligations in accordance with this Agreement). 13. The Borrower is breach of any other provision of this Agreement. Article 22 The Lender shall determine whether or not an event of default described above has occurred and notify the Borrower thereof. Upon the occurrence of any event of default set forth above, the Lender shall be entitled to take one or more of the following actions: (i) request the Borrower to cure such breach within a set period of time; (ii) cancel the amount of the Loan unutilized by the Borrower; (iii) declare all outstanding Loan to be immediately due and require the Borrower to immediately repay all outstanding principal of and interest on the Loan and other sums payable; (iv) require the Borrower to procure additional or replacement guarantee(s) or collateral; (v) deduct directly any amount not paid by the Borrower when due hereunder (including, but not limited to, the principal of and interest on the Loan) from any account in any currency maintained by the Borrower with any branch in or out of China of the Agent or any other bank; or (vi) declare to exercise or realize any right under the relevant guarantee relating to the Loan.