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

Rights and Obligations of the Guarantor. 4.1 Party B shall have the right to require Party A to assume the obligation of confidentiality for the information provided by Party B, except as otherwise stipulated by laws and regulations or regulatory authorities or otherwise agreed by the parties or that the information provided by Party B does not constitute confidential information. 4.2 Party B has carefully read the main contract and acknowledged all the terms and conditions thereof. The individual credit contract or receipt or other credit business voucher under the main contract is not required to be further confirmed by Party B if not exceeding the limit specified in the main contract. Party A and the debtor may modify the main contract without the consent of Party B, and Party B shall continue to assume the joint and several guarantee liability for the modified main contract. However, in the event of increase in the principal amount of the debt and extension of the term of the loan without Party B’s written consent, Party B shall still assume the guarantee liability in such amount and period as specified in the original main contract. 4.3 Party B accepts and undertakes to cooperate with Party A in the supervision and inspection of Party B’s operation and guarantee capacity, and allow Party A to enter Party B’s premises to check Party B’s assets, financial status and operation. 4.4 ☐ In the event of major property right transfer, system change or transfer of creditor’s rights and debts, Party B shall notify Party A beforehand and shall not proceed with the said matters before obtaining the written consent of Party A. ☐ Under any of the following circumstances, Party B shall give a 30-day written notice to Party A. If it may have a significant impact on the performance of this Contract as Party A considers, Party B shall not proceed with it before obtaining the written consent of Party A:

Rights and Obligations of the Guarantor. 4.1 Party B shall have the right to require Party A to assume the obligation of confidentiality for the information provided by Party B, except as otherwise stipulated by laws and regulations or regulatory authorities or otherwise agreed by the parties or that the information provided by Party B does not constitute confidential information. 4.2 Party B has carefully read the main contract and acknowledged all the terms and conditions thereof. The individual credit contract or receipt or other credit business voucher under the main contract is not required to be further confirmed by Party B if not exceeding the limit specified in the main contract. Party A and the debtor may modify the main contract without the consent of Party B, and Party B shall continue to assume the joint and several guarantee liability for the modified main contract. However, in the event of increase in the principal amount of the debt and extension of the term of the loan without Party B’s written consent, Party B shall still assume the guarantee liability in such amount and period as specified in the original main contract. 4.3 Party B accepts and undertakes to cooperate with Party A in the supervision and inspection of Party B’s operation and guarantee capacity, and allow Party A to enter Party B’s premises to check Party B’s assets, financial status and operation. 4.4 ☐ In the event of major property right transfer, system change or transfer of creditor’s rights and debts, Party B shall notify Party A beforehand and shall not proceed with the said matters before obtaining the written consent of Party A. ☐ Under any of the following circumstances, Party B shall give a 30-day written notice to Party A. If it may have a significant impact on the performance of this Contract as Party A considers, Party B shall not proceed with it before obtaining the written consent of Party A: (1) Major changes have taken place in management system, equity structure, form of property right organization and main business, including but not limited to implementing contracting, leasing management, joint operation, shareholding reform, consolidation (merger) and acquisition, joint venture (cooperation), division, establishment of subsidiaries, custody (takeover), enterprise sale, transfer of property rights, reduction of capital, etc.; (2) Important assets of which value exceeds 10% of net assets are sold, donated, lent, transferred, mortgaged (pledged) or otherwise disposed of; (3) Dividends exceed 30% of the net profit after tax for the current year or exceed 20% of all undistributed profits; (4) the additional foreign investment after entry into force of the contract exceeds 20% of the net assets; (5) Debt terms with other banks are changed to prepay other long-term obligations; (6) Debts owed to Party B’s shareholders are repaid; (7) Application for credit extension from other banks, provision of guarantee to third parties, or reduction or mitigation of third-party debts, involving the amount of debts exceeding 20% of the net assets. 4.5 Party B shall notify Party A in writing within seven business days from the date of occurrence or potential occurrence of the following matters. Party A shall have the right to decide whether to request Party B and the debtor to provide additional guarantee or directly recoverall the loans depending on the specific circumstances of the matters: (1) its business and financial situation deteriorates; (2) being imposed a heavy fine by the competent authority or involved in a major legal dispute; (3) Party B, Party B’s shareholders, Party B’s legal representative or key management personnel are involved in major cases or their major assets are subject to property preservation and other mandatory measures, as a result of which Party B’s legal representative or key management personnel are unable to perform their duties properly; (4) Providing guarantee to a third party that has a material adverse effect on its financial position or ability to perform its obligations hereunder; (5) Discontinuation of business, suspension of business for rectification, dissolution, closure, bankruptcy, and being revoked of business license; (6) Deterioration of financial condition, e.g. unemployment, employer bankruptcy or substantial loss of personal property, material adverse changes in personal physical condition, divorce, and other matters that may affect Party B’s ability to perform this Contract. (7) Other major events or events of default which suffice to affect Party B’s business activities and Party A’s loan security. 4.6 Party B shall notify Party A in writing within seven business days after the change of the domicile, mailing address, telephone number, scope of business, legal representative and other matters of Party B. If Party B fails to perform the above notification obligations, Party A shall be deemed to have delivered the relevant notices and documents (including but not limited to the notices and documents of both parties during the performance of the contract, relevant materials and documents relating to arbitration or litigation in the course of arbitration or litigation, and relevant materials and documents during the execution of the case) according to the original address and mailing address. 4.7 ☐ Party B undertakes to maintain a reasonable financial ratio during the loan period. ☐ The financial indicators meet the following criteria during the loan period: