Common use of Rights and Obligations of the Borrower Clause in Contracts

Rights and Obligations of the Borrower. 1. The borrower is entitled to obtain and use the loan according to this contract. 2. The borrower is entitled to settlements and deposits according to the account settlement agreement in Article Two and other related items under this contract. 3. The borrower shall ensure the related documents complete including approval, registration and other legal documents, for foreign currency loan under this contract, 4. The borrower shall repay the loan and interest on schedule. In terms of extensions, the borrower shall apply to the lender in written form 15 days before the due date, and sign the extension agreement with the lender’s approval. 5. The borrower shall use the loan as is prescribed in this contract, misappropriation or diversion shall not be allowed. 6. The borrower shall provide complete, true and effective financial report and other related data, information to the lender, and cooperate with the lender to investigate on the production, operation, finance and other activities that the loan is used. 7. Should any change to the borrower, including implementation of contracting, leasing, joint-stock reform, joint venture, merger, consolidation, division, joint ventures, transfer of assets to apply for suspension of business for rectification, application for dissolution, bankruptcy and other cases that may cause changes in liabilities under this contract or that may affect the lender’s claim of the loan, the borrower shall inform the lender in written form ahead and get the lender’s approval, and confirm the liability to the debt or clear the loan ahead of schedule, otherwise the borrower shall not execute any change mentioned above. 8. The borrower shall inform the lender in written form immediately, in addition to the above listed changes, also when there is any other circumstances that may have significant adverse impact on the repay obligations under this contract, for example, business outage, cancellation of registration, revocation of business license, illegal activities of the legal representative or main responsible person, serious difficulties in production and management, deteriorating financial situation. 9. The borrower shall inform the lender in written form ahead and get the lender’s approval when the borrower is willing to guarantee the debts of others, mortgage, pledge to a third party as the main property, which may affect the borrower’s capacity under this contract 10. The borrower and related investor must not conduct capital flight, asset transfer or unauthorized transfer of shares in purpose in order to avoid the debt to the lender. 11. The borrower shall notify the lender in written form in time should any changes occur in name, legal representative, address, business scope. 12. The borrower shall provide additional security measures that recognized by the lender when the guarantor under this contract is partially or fully incapable for the security capabilities, including business outage, cancellation of registration, revocation of business licenses, bankruptcies, and operating loss and other situations. 13. The borrower shall bear the cost on related expenses under this contract including legal services, insurance, transportation, evaluation, registration, storage, appraisal, notary

Rights and Obligations of the Borrower. 1. 4.1 The borrower is entitled has the right to obtain and use the loan according to in accordance with this contractagreement and the corresponding promissory note. 2. The borrower is entitled to settlements and deposits according to the account settlement agreement in Article Two and other related items under this contract. 3. 4.2 The borrower shall ensure settle the related documents complete including approvalloan principal, registration interest, compound interest, penalty interest, as well as reasonable expenses such as litigation fees, preservation fees, execution fees, lawyer fees, travel expenses, etc. in accordance with this agreement and other legal documentsthe corresponding promissory notes, and hereby irrevocably authorizes the lender to deduct them in accordance with Article 2.5 of this agreement. 4.3 The borrower can use the loan for foreign currency loan under the purposes agreed upon in this contract,agreement, without misappropriating or diverting the loan. 4. 4.4 The borrower shall repay the loan and interest on schedule. In terms of extensions, the borrower shall apply to provide the lender in written form 15 days before the due datewith truthful and complete financial statements or other relevant materials and information on a monthly basis, and sign the extension agreement actively cooperate with the lender’s approval. 5. The borrower shall use the loan as is prescribed in this contractinspection of its production and operation, misappropriation or diversion shall not be allowed. 6. The borrower shall provide completefinancial status, true and effective financial report and other related data, information to the lendermaterial inventory, and cooperate with loan usage under this agreement. 13 / 25 4.5 If the lender to investigate on the production, operation, finance and other activities that the loan is used. 7. Should borrower takes any change to the borrower, including implementation of contracting, leasing, joint-stock actions such as shareholding reform, joint venture, merger, consolidation, divisionseparation, joint venturescapital reduction, transfer of assets to apply external investment, substantial increase in debt financing, application for suspension of business for rectification, application for dissolution, bankruptcy and application for bankruptcy, or other cases actions that may cause changes in liabilities the debt relationship under this contract agreement or that may affect the realization of the lender’s claim of loan rights before the loandebt repayment under this agreement is completed, the borrower shall inform the lender in written form ahead and get the lender’s approval, and confirm the liability to the debt or clear the loan ahead of schedule, otherwise the borrower shall not execute any change mentioned above. 8. The borrower shall inform the lender in written form immediately, in addition to the above listed changes, also when there is any other circumstances that may have significant adverse impact on the repay obligations under this contract, for example, business outage, cancellation of registration, revocation of business license, illegal activities of the legal representative or main responsible person, serious difficulties in production and management, deteriorating financial situation. 9. The borrower shall inform the lender in written form ahead and get the lender’s approval when the borrower is willing to guarantee the debts of others, mortgage, pledge to a third party as the main property, which may affect the borrower’s capacity under this contract 10. The borrower and related investor must not conduct capital flight, asset transfer or unauthorized transfer of shares in purpose in order to avoid the debt to the lender. 11. The borrower shall notify the lender in writing 30 days before the implementation of the above actions, simultaneously implementing debt repayment responsibilities or early repayment of debts, and obtaining written form consent from the lender, or the above actions shall not be taken. 4.6 Any other event that poses a threat to the normal operation of the borrower or has a significant adverse impact on the performance of repayment obligations under this agreement, including but not limited to any of the circumstances stipulated in time should any Article 2.3 of this agreement, shall be communicated in writing to the lender within 3 days of the occurrence of the above situation and repayment measures shall be implemented. 4.7 If the borrower provides guarantee for the debts of others or sets up mortgage or pledge guarantees with their main assets to third parties before the completion of debt repayment under this agreement, which may affect their ability to repay the debts under this agreement, they shall notify the lender in writing in advance and obtain the written consent of the lender. 4.8 The borrower shall not withdraw or transfer funds, dispose of assets at a low price, gift assets, or transfer shares without authorization, in order to evade debts to the lender or weaken their own debt repayment ability. 4.9 If the borrower changes occur in its name, legal representative, legal address, business scope, mailing address, contact phone number, etc., it shall send the lender a written notice and relevant proof of change issued by the competent authorities for industry and commerce within 5 days after the change. Otherwise, all responsibilities and consequences arising from this shall be borne by the borrower. 12. The 4.10 If the guarantor of the loan under this agreement ceases production, closes business, cancels registration, has its business license revoked, goes bankrupt, or incurs operational losses, and partially or completely loses the corresponding guarantee ability for the debt under this agreement, or if the value of the collateral, pledged property, or pledge rights used as collateral for the loan under this agreement decreases or there is a ownership dispute, the borrower shall provide additional security other guarantee measures that recognized by the lender when within 10 days after the guarantor under this contract is partially or fully incapable for occurrence of the security capabilities, including business outage, cancellation of registration, revocation of business licenses, bankruptcies, and operating loss and other situationsabove situation. 13. 4.11 The borrower is obliged to cooperate with the lender’s loan reconciliation work. 4.12 The borrower shall bear the cost on related expenses under this contract including legal services, insurance, transportation, evaluation, registration, storage, appraisal, notarynotarization, deposit, guarantee and other expenses related to this agreement and the guarantees under this agreement in accordance with the requirements of laws and regulations. 4.13 Upon receiving the collection letter or collection document delivered directly or by mail from the lender, the borrower shall immediately sign for acceptance and deliver the receipt to the lender either immediately or within 3 days. 4.14 The borrower needs to strengthen environmental and social risk management. If the borrower is involved in significant environmental and social risks, it shall submit an environmental and social risk report. The borrower declares and guarantees that the internal management documents related to environmental and social risks comply with legal and regulatory requirements and are effectively implemented, and there are no major litigation cases related to environmental and social risks. The borrower undertakes to accept the supervision of the lender. If the borrower’s statements, guarantees, and commitments related to environmental and social risk management are not fulfilled seriously, or if it is punished by the relevant government departments or strongly questioned by the public and/or media due to poor environmental and social risk management, the lender has the right to revoke the credit commitment already made, suspend the disbursement of the loan until the borrower takes mitigation measures recognized by the lender, recovers the loan issued in advance, exercise relevant mortgage and pledge rights when the loan cannot be repaid.