Covenants Relating to the Purchased Interest Sample Clauses
The "Covenants Relating to the Purchased Interest" clause sets out the ongoing promises and obligations of the parties regarding the ownership, use, or management of the interest being acquired in a transaction. Typically, this clause may require the seller to refrain from actions that could diminish the value of the purchased interest or obligate the buyer to maintain certain standards or fulfill specific conditions post-closing. Its core practical function is to protect the value and integrity of the purchased interest, ensuring that both parties uphold agreed-upon standards and responsibilities after the sale, thereby minimizing potential disputes or losses.
Covenants Relating to the Purchased Interest. 2.1 Covenants Relating to Party B and Party C Each of Party B and Party C hereby covenants:
2.1.1 Not to supplement, amend or modify Party C’s articles of association in any way, or to increase or decrease its registered capital, or to change its registered capital structure in any way without Party A’s prior written consent;
2.1.2 To maintain the corporate existence of Party C and operate its business and deal with matters prudently and effectively according to good financial and business rules and practices;
2.1.3 Not to sell, transfer, mortgage or otherwise dispose of, or permit any other Security Interest to be created on, any of Party C’s assets, business or legal or beneficial interests in its revenue at any time after the signing of this Agreement without Party A’s prior written consent;
2.1.4 Not to create, succeed to, guarantee or permit any liability, without Party A’s prior written consent, except (i) liabilities arising from the normal course of business, but not arising from loans; and (ii) liabilities disclosed to Party A and approved by Party A in writing;
2.1.5 To operate all the business in the normal course of business to maintain the value of Party C’s assets, and not to commit any act or omission that would adversely affect Party C’s operations and asset value;
2.1.6 Without prior written consent by Party A, not to enter into any material agreement, other than agreements entered into in Party C’s normal course of business (for purpose of this paragraph, an agreement will be deemed material if its value exceeds RMB100,000);
2.1.7 Not to provide loans or credit to any person (other than in the normal course of business) without Party A’s prior written consent;
2.1.8 To provide all information relating to Party C’s operations and financial conditions upon the request of Party A;
2.1.9 To purchase and maintain insurance from insurance companies accepted by Party A. The amount and category of the insurance shall be the same as those of the insurance normally procured by companies engaged in similar businesses and possessing similar properties or assets in the area where Party C is located;
2.1.10 Not to merge or consolidate with, or acquire or invest in, any person without Party A’s prior written consent;
2.1.11 To promptly notify Party A of any pending or threatened suit, arbitration or administrative proceedings concerning Party C’s assets, business or revenue;
2.1.12 To execute all necessary or appropriate documents, to take all necessary...