Common use of Party B’s Commitment Clause in Contracts

Party B’s Commitment. Party B makes the following promises. Item 6.1 If any of the following situations happens, within five working days since Party A receives notice, with no conditions fulfill the responsibilities in the contract: A. The outstanding debts of debtor, includes maturity and early maturity; B. If Party B or the debtor seeks for bankruptcy or goes out of business, dissolution, liquidation, business for rectification, revocation of business license, or be revoked. Item 6.2 If Party A’s principal creditor's right exists on collateralized object for guarantee, whether the collateralized object is provided by the debtor or by third party, Party A has the right to request Party B to take responsibilities first, Party B can not raise a plea for this reason. If Party A gives up, change or loss of other security interest, Party B's responsibility is still in effect, will not be invalid, deducted or exempted. Item 6.3 Upon Party A’s requests, provide financial information, tax certificates and other financial documents that can timely reflect Party B’s financial situation. Item 6.4 If any of the following situations happens, with no need for agreement of Party B, Party B will continue to assume guarantee liability in the contract: A. Party A and the debtor negotiate to change main contract, without increasing Party B’s debt or extending debt’s maturity; B. Under domestic and international trade financing, Party A and the debtor modify letters of credit related to main contract, without increase the debtor's payment obligations of letter of credit or extend the payment period; C. Party A transfers the debt to a third party. Item 6.5 If provides any form of guarantee to a third party, will not damage the interests of the Party A. Item 6.6 If Party B has actions including merger, divesture, reduction of capital, change of ownership, transfer of significant assets and liabilities, significant external investment, increasing debt financing materially and other actions may adversely affect the rights of Party A, Party B should have the written agreement of Party A in advance, or have made satisfactory arrangement for the guarantee responsibilities under the contract. If not, Party A cannot engage in such actions. Item 6.7 If any of the following situations happens, Party B should notice Party A: A. Change of charter, business coverage, registered capital, the legal representative, change of ownership; B. Go out of business, dissolution, liquidation, business for rectification, revocation of business license, be revoked or bankruptcy; C. Involved or maybe involved in material economic disputes, litigation, arbitration, or the property was legally seized, detained or controlled; D. If Party B is a natural person, change of residence, work, contacts, etc. E. Issuing corporate bonds, short-term financing bonds or other direct financing methods to increase debt levels; F. Have other large amount of borrowing or external guarantees. Item 6.8 React to the return notice from Party A in time. Item 6.9 In the buyer's financing, import credit and import bills financing / import payment services in the domestic letters of credit, if happens following situations, Party B should assume non-defense guarantee obligation, Party B should not propose exemption or defense because of any judicial or administrative authorities issues stop-payment order, ban order or take measures such as closing down, detaining, freezing property related to letters of credit: A. Party A's nominee, who has been authorized in accordance with the Party A's instructions, pays in good faith; B. Party A or its nominee, who has been authorized under the domestic letter of credit, issues payment confirmation in good faith or accepts credit documents in letters of credit in good faith; C. Confirming bank of letter of credit fulfills the payment obligation in good faith; D. Negotiating bank of letter of credit negotiates to pay in good faith. Item 6.10 In shipping guarantee, bills of lading endorsed, authorized delivery business, Party B should not propose exemption or defense because of debtor's dishonored letters of credit.