Performance bond clause samples

8.2 Party A shall have the right to deduct the sums, expenses, liquidated damages, compensation or late fees payable or due by Party B under this Contract from the performance bond. If such performance bond cannot cover the losses incurred to Party A, Party A may make further claim against Party B. In no event shall Party B require to set the performance bond against the rent or any other expense payable and due.

17.6 If this Contract is held to be invalid/revocable due to reasons attributable to Party B, Party A shall forfeit the Performance Bond paid by Party B and, if the Performance Bond is insufficient to cover the losses of Party A, shall also compensate for the difference between the caused loss and the Performance Bond. If this Contract is held to be invalid/revocable due to reasons attributable to Party A, Party A shall return the Performance Bond received to Party B and pay liquated damages to Party B in an amount equal to the then three months’ Rent for the Leased/Preleased Premises; if the compensation is insufficient to cover the losses of Party B, Party A shall also compensate for the difference between the caused loss and the compensation.

11.6 Party B shall make up any difference of the performance bond within two business days upon receipt of notice from Party A for deduction of performance bond. If it fails to do so, Party A may deduct an amount equal to such difference from the business settlement amount due to Party B.

5. Upon the execution of this Contract, Party B shall pay Party A the performance bond. If the lease term expires and Party B has not breached the Contract, Party A shall return Party B the performance bond in full. In the event of any breach of contract by Party B (including unilateral early termination of the Contract), Party A shall not return the performance bond to Party B. During the lease term, if Party A unilaterally requires the early termination of the Contract, Party A shall return the performance bond to Party B in full without interest.

5.1.4 Party B guarantees that the goods or services it sells are in compliance with all the laws, regulations, rules and policies of the country where China and the rental housing are located. Party B shall be fully responsible for the goods sold (including the services provided, the same below), or the disputes with third parties, and the quality of any goods or services shall be borne by Party B. If Party B is implicated or lost in reputation or economy due to Party B's violation of relevant laws, Party B shall compensate Party A for all losses suffered by Party A. If Party B violates the provisions of this Article, Party A shall be subject to administrative penalties, civil compensation or any other form of loss. Party B shall bear and compensate Party A for all losses; Party B shall have the right to comply with Party A’s liability for overdue compensation. Party B shall bear the corresponding liabilities for the calculation of liquidated damages and the liability for breach of contract (the period of liquidated damages and breach of contract shall be the date from the occurrence of the breach of contract to the date of completion of the rectification). In the event of termination of this contract, if Party B has not or has not fully assumed its liability, Party A shall have the right to deduct the amount corresponding to the loss or damage of Party A's uncompensated part of the performance bond. If the performance bond is insufficient to pay the aforesaid amount, Party A has the right to continue to recover the insufficient amount from Party B.

3.2.1. In case that all precedent conditions for delivery as set forth in article 3.1.5 have been satisfied (or otherwise with the waiver from the transferee in writing) and the Transferee fails to make initial payment in 10 business days after the execution of this agreement as set forth in article 3.1.1, then an alternative performance bond of RMB51,500,000 shall be paid by Cango to Party D’s onshore bank account in 10 business days after the execution of this agreement. In avoidance of doubt, Party D will designate an onshore recipient to the Transferor for receiving the alternative performance bond. In 1 business day after receiving the above-mentioned amount, Party D will sent the confirmation letter to Cango.

2) If Party B cannot carry out the cooperation with local pre-movie advertisement cinemas after Party A sent the notice about new-increasing exclusive pre-movie advertisement theaters in five cities to Party B for more than seven days, Party A has the right to terminate this contract in advance and does not assume liability for breach of contract. At the same time, Party A's cooperation fees (including but not limited to advertising agency fees and copy production fees) do not need to be returned to Party B, and has the right to deduct all Party B's performance bond. Party B shall make compensation for all losses (including but not limited to direct or indirect losses) caused to Party A.

Party B shall, within 20 working days upon the signature of the Contract, submit a bank guarantee at the amount equivalent with 2% of the total contract amount to Party A as the performance bond. Party A shall return the original copy of the bank guarantee to Party A within 10 working days after the successful acceptance of the Project.

14.2.1 Performance bond. If the contractor shall submits performance bond to the contract letting party as set forth in the contract, the format, amount and time of submission of the performance bond shall be stipulated in the special provisions.

14.10.1 With respect to the claim accounts deserved by the contract letting party determined by negotiation, adjudicated by arbitration or judged by the court, the contract letting party may deduct such claim accounts from the payment paid to the contractor according to the monthly project progress accounts or payment schedule of current installment. If the project progress accounts of all installments paid to the contractor are insufficient for deduction of the contract letting party's claim accounts, and the contract stipulates that the contractor shall submit performance bond, then the insufficiency of the claim accounts may be deducted from the performance bond. If the performance bond is insufficient for deduction, or in case of no performance bond stipulated, the contractor shall otherwise pay such claim accounts.

14.5.2.2 If the contractor fails to perform the contractor's responsibilities and obligations hereunder within valid period of the performance bond, the contract letting party shall be entitled to seek recourse from the performance bond. The contract letting party shall be entitled to continue to seek recourse for the insufficient part from the contractor.

14.2.1 Performance bond. Where the contractor shall submits the performance bond to the owner under the contract, the form, amount and time of the performance bond shall be stipulated in the particular condition.

(3) If the project is delayed, the contractor shall keep providing the performance bond. If the delay is caused by the owner, the cost on keeping providing the performance bond will be paid by the owner; if the delay is caused by the contractor, the cost will be paid by the contractor.

+ Details Name: hmx_BankServiceFeeExpense Namespace Prefix: hmx_ Data Type: xbrli:monetaryItemType Balance Type: debit Period Type: duration X - DefinitionChange (increase/decrease) in value of a surety or performance bond. A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal/entity will act in accordance with certain laws. If the principal/entity fails to perform in this manner, the bond will cover resulting damages or losses. The principal/entity will forfeit its financial rights to the bond.

(b)Owner shall have the right to apply the Payment Bond to satisfy any payment obligation of Contractor in connection with this Agreement that is not paid when due hereunder. Owner shall have the right to apply the Performance Bond to satisfy any performance obligation of Contractor in connection with this Agreement that is not performed when due hereunder. Owner shall deliver a copy of any demand made under each of the Payment Bond and Performance Bond to Contractor contemporaneously with the demand presented to the applicable surety; provided, however, that failure to so deliver such demand shall not create a right of objection to any payment to be made under either the Payment Bond or Performance Bond. Demands under the Payment Bond and Performance Bond shall include identification of the provision of this Agreement entitling Owner to demand thereunder.