Common use of Defaulting Liability Clause in Contracts

Defaulting Liability. 10.1 If Party A fails to complete the work under Article 4.1, Article 9.1 and Article 9.2 within the agreed time, Party A shall pay a penalty to Party B at a daily rate of RMB100,000 and if the delay lasts for more than 15 days, Party B shall have the right to unilaterally terminate this Agreement and demand Party A to refund all the funds of Party B for capital increase (RMB150 million). Party A shall also pay Party B a penalty equal to 25% of the amount of capital increase in lump sum. Party C shall bear the joint responsibility in respect of this payment obligation of Party A. 10.2 If Party A or Party C breaches its representations and warranties, it shall pay Party B a penalty equal to 25% of the amount of capital increase hereunder and compensate the losses suffered by Party B. Party A and Party C shall bear the joint responsibility to each other.