Common use of The Rights and Obligations of Party B Clause in Contracts

The Rights and Obligations of Party B. 1. If the borrower doesn’t return the principal\interest and other expenditure accordingly atthe expiration of the performance of the actual borrowing agreement, the Party B has the right to dispose the securities herein according to law. 2. In case of any of the following instances, the Party B has the right to dispose the securities in advance according to law and get repaid preferentially from earnings of the disposal: (1) Rescind the actual borrowing agreement according to the articles of the actual borrowing agreement or the provision of law (2) Take back the loan money in advance according to other articles in the actual borrowing agreement and creditor’s right is not fulfilled or is not fulfilled completely 3. Has the right to require the Party A to assist to avoid the infringement of hypothec by any other third party 4. If the Party B transfers the creditor’s rights within the availability of the agreement, he should inform the Party A in time 5. After the fulfillment of the hypothec, the Party B should assist the Party A to fulfill his right to the borrower. 6. After the repayment of all the debt guaranteed in this agreement, the left part of the earnings from the disposal of the securities should be sent back to the Party A During the continuing of the hypothec, if the Party A violates concerned articles in this agreement, the Party B has the right to require the former one to correct the violation in limited time, provide corresponding securities and compensate the lost and has the right to dispose the securities in advance The Party A agrees that the Party B has the right to choose the following manners to handle the earnings from the disposal of the securities: (1) Used to discharge or discharge in advance the principal, the interest and related expenses under the actual borrowing agreement items; (2) Shifted to dated deposit and the deposit receipt will used to be the impawn securities (3) Draw from the named party of the Party B (4) The Party A can dispose the compensation freely once he has provided new securities required by the Party B If the securities need to be registered according to law, both parties should go to the related department to transact the registration when the agreement is signed. The Party A should transfer other right letters of the securities, the original copy of the registration letter and other right letters to the Party B. When all the debts under the articles of the actual borrowing agreement and this agreement have been discharged, the Party B and the Party A should transact the write-off of the securities in time

The Rights and Obligations of Party B. 113.1 Party B is entitled to withdraw and use all the Loan in accordance with this Agreement; 13.2 Party B Shall provide documents and materials required by Party A and cooperate with Party A to perform loan investigation, examination and inspection as well as payment administration for loan fund and after-loan administration; 13.3 Party B shall accept the supervision and inspection of Party A on the usage of Loan fund, related business production and operation and its financial activities; 13.4 The Borrower shall spend the loan fund under this Agreement on items pursuant to this Agreement and no unwarranted diversion of fund is allowed. If The Borrower shall promise to spend acquired fund on fields that adhere to the borrower doesn’t return laws and regulations and are consistent with the principal\interest policy orientation for industries instead of on fields that are prohibited by laws of China or are strictly restricted by recent macro-control policies of China. The means of capital employing shall not violate other laws and regulations and provisions of national policies and the introduction of loan fund spending and payment document shall be submitted faithfully; 13.5 The principal and interests of Loan shall be paid in full and in due course in accordance with the Agreement; 13.6 All or partial transference of debt under this Agreement to a third party shall be subject to the prior written approval of Party A; 13.7 The transference and other expenditure accordingly atthe expiration treatments of the performance operational assets by the Borrower, which occupies over 30% of the actual borrowing agreementtotal assets listed in recent financial reports, shall be subject to the prior written approval of the Lender; 13.8 Where the change of property rights and mechanism change are involved (including but not just confined to merger, division, reorganization, shares transference, assets reduction and other aspects), the Party B has Borrower shall submit relevant changing plans to the right Lender for written approval at least 15 working days in advance, given that the Borrowers are subject to dispose the securities herein according listed company who are entitled to law. 2expose information, the Borrowers shall not perform above actions. In case of any Above change plans shall not damage the legal rights and interests of the following instancesLender pursuant to this Agreement; 13.9 The transference, the Party B has the right to dispose the securities in advance according to law and get repaid preferentially from earnings pledge, offset or other treatment of the disposal: (1) Rescind the actual borrowing agreement according to the articles of the actual borrowing agreement or the provision of law (2) Take back the loan money in advance according to other articles in the actual borrowing agreement and its major creditor’s right to a third party (the debt capital is larger than or equal to RMB 10,000,000), by the Borrower shall be subject to the prior written agreement of the Lender; 13.10 The Borrower shall not sign any agreements or documents that may damage the interests of the Lender or perform any activities that may damage the interests of the Lender; 13.11 The Borrower shall cooperate with the Lender to acknowledge and inspect the usage status of Loan fund ,the development of loan business, major business operation of the company and other business affairs and are obliged to provide relevant materials for the Lender; 13.12 The Borrower shall cooperate with Lender with respect to credit rating and credit investigation on Borrower himself and shall offer relevant authentic materials as the requirement of the Lender; 13.13 Where the accumulative capital guaranteed by the Borrower for a third party exceeds 50% of the net assets listed in recent annual financial report, prior written approval by the Lender shall be applied; 13.14 If the guarantee capability of the guarantor declines so much that affect the Loan security, the Borrower shall issue notice to the Lender in time and pay the security bonds in full within the term required by the Lender; 13.15 If the value of the guaranty declines so much that affect the security of the Loan, the Borrower shall issue notice to the Lender and take necessary measures as required by the Lender; 13.16 Where the net profit after tax in relevant accounting year is zero or minus, or net profit after tax is not fulfilled enough to compensate for accumulative loss of previous accounting year, or profit before tax that is not fulfilled completely 3. Has used to pay the right principal, interests, and costs of this accounting year, or profit before tax is not enough to require the Party A to assist to avoid the infringement of hypothec by any other third party 4. If the Party B transfers the creditor’s rights within the availability of the agreement, he should inform the Party A in time 5. After the fulfillment of the hypothec, the Party B should assist the Party A to fulfill his right to the borrower. 6. After the repayment of all the debt guaranteed in this agreement, the left part of the earnings from the disposal of the securities should be sent back to the Party A During the continuing of the hypothec, if the Party A violates concerned articles in this agreement, the Party B has the right to require the former one to correct the violation in limited time, provide corresponding securities and compensate the lost and has the right to dispose the securities in advance The Party A agrees that the Party B has the right to choose the following manners to handle the earnings from the disposal of the securities: (1) Used to discharge or discharge in advance pay the principal, the interest interests and related expenses under the actual borrowing agreement itemscosts of next term in full, the Borrower shall not distribute share interests and bonus to shareholders in any form; (2) Shifted 13.17 Within the term of validity of this Agreement, if the Borrower is forced to dated deposit stop production, close business temporarily, cancel registration, revoke business license, or the legal representatives or main principal take part in illegal activities or get involved in major litigious activities, or its business production and operation is subject to serious predicament or deteriorating financials, the deposit receipt will used to Lender shall be issued written notice and put the impawn securities (3) Draw from the named party full payment of the Party B (4) The Party A can dispose the compensation freely once he has provided new securities debt and guaranty into practice pursuant to this Agreement as required by the Lender; 13.18 The Party B If the securities need to be registered according to law, both parties should go shall perform other rights and obligations pursuant to the related department to transact the registration when the agreement is signed. The Party A should transfer other right letters of the securities, the original copy of the registration letter relevant laws and other right letters to the Party B. When all the debts under the articles of the actual borrowing agreement and this agreement have been discharged, the Party B regulations and the Party A should transact the write-off provisions of the securities in timethis Agreement.

The Rights and Obligations of Party B. 113.1 Party B is entitled to withdraw and use all the Loan in accordance with this Agreement; 13.2 Party B Shall provide documents and materials required by Party A and cooperate with Party A to perform loan investigation, examination and inspection as well as payment administration for loan fund and after-loan administration; 13.3 Party B shall accept the supervision and inspection of Party A on the usage of Loan fund, related business production and operation and its financial activities; 13.4 The Borrower shall spend the loan fund under this Agreement on items pursuant to this Agreement and no unwarranted diversion of fund is allowed. If The Borrower shall promise to spend acquired fund on fields that adhere to the borrower doesn’t return laws and regulations and are consistent with the principal\interest policy orientation for industries instead of on fields that are prohibited by laws of China or are strictly restricted by recent macro-control policies of China. The means of capital employing shall not violate other laws and regulations and provisions of national policies and the introduction of loan fund spending and payment document shall be submitted faithfully; 13.5 The principal and interests of Loan shall be paid in full and in due course in accordance with the Agreement; 13.6 All or partial transference of debt under this Agreement to a third party shall be subject to the prior written approval of Party A; 13.7 The transference and other expenditure accordingly atthe expiration treatments of the performance operational assets by the Borrower, which occupies over 30% of the actual borrowing agreementtotal assets listed in recent financial reports, shall be subject to the prior written approval of the Lender; 13.8 Where the change of property rights and mechanism change are involved (including but not just confined to merger, division, reorganization, shares transference, assets reduction and other aspects), the Party B has Borrower shall submit relevant changing plans to the right Lender for written approval at least 15 working days in advance, given that the Borrowers are subject to dispose the securities herein according listed company who are entitled to law. 2expose information, the Borrowers shall not perform above actions. In case of any Above change plans shall not damage the legal rights and interests of the following instancesLender pursuant to this Agreement; 13.9 The transference, the Party B has the right to dispose the securities in advance according to law and get repaid preferentially from earnings pledge, offset or other treatment of the disposal: (1) Rescind the actual borrowing agreement according to the articles of the actual borrowing agreement or the provision of law (2) Take back the loan money in advance according to other articles in the actual borrowing agreement and its major creditor’s right to a third party (the debt capital is larger than or equal to RMB 10,000,000), by the Borrower shall be subject to the prior written agreement of the Lender; 13.10 The Borrower shall not sign any agreements or documents that may damage the interests of the Lender or perform any activities that may damage the interests of the Lender; 13.11 The Borrower shall cooperate with the Lender to acknowledge and inspect the usage status of Loan fund, the development of loan business, major business operation of the company and other business affairs and are obliged to provide relevant materials for the Lender; 13.12 The Borrower shall cooperate with Lender with respect to credit rating and credit investigation on Borrower himself and shall offer relevant authentic materials as the requirement of the Lender; 13.13 Where the accumulative capital guaranteed by the Borrower for a third party exceeds 50% of the net assets listed in recent annual financial report, prior written approval by the Lender shall be applied; 13.14 If the guarantee capability of the guarantor declines so much that affect the Loan security, the Borrower shall issue notice to the Lender in time and pay the security bonds in full within the term required by the Lender; 13.15 If the value of the guaranty declines so much that affect the security of the Loan, the Borrower shall issue notice to the Lender and take necessary measures as required by the Lender; 13.16 Where the net profit after tax in relevant accounting year is zero or minus, or net profit after tax is not fulfilled enough to compensate for accumulative loss of previous accounting year, or profit before tax that is not fulfilled completely 3. Has used to pay the right principal, interests, and costs of this accounting year, or profit before tax is not enough to require the Party A to assist to avoid the infringement of hypothec by any other third party 4. If the Party B transfers the creditor’s rights within the availability of the agreement, he should inform the Party A in time 5. After the fulfillment of the hypothec, the Party B should assist the Party A to fulfill his right to the borrower. 6. After the repayment of all the debt guaranteed in this agreement, the left part of the earnings from the disposal of the securities should be sent back to the Party A During the continuing of the hypothec, if the Party A violates concerned articles in this agreement, the Party B has the right to require the former one to correct the violation in limited time, provide corresponding securities and compensate the lost and has the right to dispose the securities in advance The Party A agrees that the Party B has the right to choose the following manners to handle the earnings from the disposal of the securities: (1) Used to discharge or discharge in advance pay the principal, the interest interests and related expenses under the actual borrowing agreement itemscosts of next term in full, the Borrower shall not distribute share interests and bonus to shareholders in any form; (2) Shifted 13.17 Within the term of validity of this Agreement, if the Borrower is forced to dated deposit stop production, close business temporarily, cancel registration, revoke business license, or the legal representatives or main principal take part in illegal activities or get involved in major litigious activities, or its business production and operation is subject to serious predicament or deteriorating financials, the deposit receipt will used to Lender shall be issued written notice and put the impawn securities (3) Draw from the named party full payment of the Party B (4) The Party A can dispose the compensation freely once he has provided new securities debt and guaranty into practice pursuant to this Agreement as required by the Lender; 13.18 Pay trust industry security fund subscription payment to the Lender timely with enough amount according to the subscription agreement of the trust industry security fund. 13.19 The Party B If the securities need to be registered according to law, both parties should go shall perform other rights and obligations pursuant to the related department to transact the registration when the agreement is signed. The Party A should transfer other right letters of the securities, the original copy of the registration letter relevant laws and other right letters to the Party B. When all the debts under the articles of the actual borrowing agreement and this agreement have been discharged, the Party B regulations and the Party A should transact the write-off provisions of the securities in timethis Agreement.

The Rights and Obligations of Party B. 114.1 After the execution of this Agreement, if Party A lawfully transfers the principal creditor's rights to a third party, the mortgage rights under this Agreement shall be simultaneously transferred, while Party B shall continue to bear the mortgage liability within the scope of guarantee as agreed hereof. 14.2 Unless such alterations extends the mortgage obligations of Party B (with the exception of the alteration of interest as regulated), Party A needs no prior consent from Party B when altering the Principal Agreement with the debtor of the Principal Agreement; Party B shall continue to bear the liability within the scope of guarantee as agreed. 14.3 Before the main obligations of this Agreement are fully settled, Party B shall stop its acts that may cause losses to the mortgage property; if the value of such properties is lessened caused by Party B, then Party B shall be liable to recover the loss or produce mortgage equivalent to the loss caused. If Party B produces neither recovery nor mortgage, then Party A shall have right to demand Party B in paying off the debts. If the borrower doesn’t return debtor fails in paying off the principal\interest debt, Party A shall then have power to perform right to mortgage. If, because of natural disasters, accidents, torts or other causes, the properties under mortgage are destroyed or lessened, Party B shall take immediate actions in preventing the loss from further expanding, and other expenditure accordingly atthe expiration then have Party A notified by writing simultaneously. 14.4 The damages and compensations, which Party B obtains as considerations to damage by a third party or requisition, shall be used as substitutional object of the performance mortgage property to liquidate Party A’s claim in advance or to deposit in the notary office located in location where the mortgage property places; the unreduced value of mortgage property shall still be the guaranty of the actual borrowing agreement, the creditor’s right. 14.5 Party B has the obligation to inform Party A to prevent from damaging Party A’s creditor’s right when the creditor’s right suffers or may suffer from the infraction from any third party. 14.6 In the period of mortgage of guaranty, without Party A’s written consent, Party B shall not lease, deposit, re-mortgage, split or transfer the mortgage property partially or completely; however condition that the transferee liquidates the debt and eliminates the right to mortgage is exclusive. If Party A agrees Party B to dispose the securities herein according to law. 2. In case of any of the following instancesmortgage property, the Party B agrees Party A to has the right of choosing the following methods to dispose the securities in advance according proceed from disposing the mortgage property and assist to law and get repaid preferentially from earnings of deal with the disposalrelevant procedures: (1) Rescind the actual borrowing agreement according to the articles of the actual borrowing agreement a. Liquidate or the provision of law (2) Take back the loan money in advance according to other articles in the actual borrowing agreement and creditor’s right is not fulfilled or is not fulfilled completely 3. Has the right to require the Party A to assist to avoid the infringement of hypothec by any other third party 4. If the Party B transfers the creditor’s rights within the availability of the agreement, he should inform the Party A in time 5. After the fulfillment of the hypothec, the Party B should assist the Party A to fulfill his right to the borrower. 6. After the repayment of all the debt guaranteed in this agreement, the left part of the earnings from the disposal of the securities should be sent back to the Party A During the continuing of the hypothec, if the Party A violates concerned articles in this agreement, the Party B has the right to require the former one to correct the violation in limited time, provide corresponding securities and compensate the lost and has the right to dispose the securities in advance The Party A agrees that the Party B has the right to choose the following manners to handle the earnings from the disposal of the securities: (1) Used to discharge or discharge liquidate in advance the principal, the principal and interest of debts and related relevant expenses under the actual borrowing agreement itemsPrincipal Agreement; (2) Shifted b. Turn to dated fixed deposit and the deposit receipt will used shall be subject to pledge; c. Deposited with a third person recognized by Party A; d. Dispose freely the proceeds obtained from disposing the original mortgage property after Party B provides for new guaranty recognized by Party A in accordance with Party A’s demand. 14.7 Through mutually negotiation by the parties, Party B, who mortgages its existing and ulterior production facilities, raw and processed materials, semi-manufactures and productions, does not apply the provision of Article 14.6 when engaging in the normal producing business, however Party B shall not dispose the mortgage property maliciously in form of mendacious purchase and sale. If the conditions provided in Article 16 occur, Party B shall not dispose the mortgage property in any form, or else Party B shall take the liability of compensation for any loss suffered by Party A. 14.8 Party A shall be the impawn securities (3) Draw from the named party informed in writing if one of the Party Bfollowing conditions occurs: (4) a. The Party A can dispose business system changes, such as to make an agreement, joint operation, consolidation, separation, reform of stockholding system and joint invest and cooperation with foreign businessman. b. The increase and reduction of registered capital and business scope, and changes in shareholdings. c. Involving significant litigation of economic disputes. d. The disputes involving the compensation freely once he has provided new securities required by the Party B If the securities need to be registered according to law, both parties should go to the related department to transact the registration when the agreement is signed. The Party A should transfer other right letters ownership of the securitiesmortgage property occur. e. Bankruptcy, the original copy out of business, dissolution, suspending business for rectification and revocation of business licence. f. Changes of the registration letter domicile, telephone and other right letters to the Party B. When legal person. 14.9 The debtor of Principal Agreement who pays off all the debts under the articles of the actual borrowing agreement and this agreement have been discharged, the Party B and the Principal Agreement is entitled to request Party A should transact to assist dismissing the write-off of the securities in timemortgage herein.