The Classification of Breach of Contract

I.          Class-1 Breach of Contract

In case of one of the following circumstances, Party B shall be deemed in class-1 breach of contract.

1.Contain contents that violate the laws and regulations of the state or morality and social conventions, or Party B provides products prohibited or restricted from circulation by the state, or provides illegal services;

2.Conducts violating the normative documents developed by the regulatory authority or trade associations;

3.Price the LinkToken with Renminbi (CNY) or other legal currencies under any circumstance or in any place;

4.Price the LinkToken with legal currencies in a disguised form under any circumstance or in any place (including but not limited to pricing the same product with LinkToken and other legal currency, conversion via intermediates, forming the price linkage between LinkToken and legal currency);

5.Engage in the financing activities with LinkToken under any circumstance or in any place; engage in (including privately engaged in) the exchange business among LinkToken, legal currency and virtual currency; buy or sell the LinkToken, or buy or sell the LinkToken or act as a central counterparty; price the LinkToken, act as the information intermediary or engage in other activities prohibited by the laws, regulations and regulatory policies;

6.Conduct the acts that impair the brand and image of Party A and its affiliated companies, including but not limited to providing products or services of poor quality, obstructing or impeding other partners of Party A from using the LinkToken exchange services or the ThunderChain Open Platform;

7.Violate the confidentiality obligation by disclosing the information about users of the ThunderChain Open Platform in any form, or maintaining, intercepting or decoding the user identity information, account information or other information that Party A requires Party B to keep confidential;

8.Intercept, falsify or decode the LinkToken exchange records, or forge, falsify or conceal the LinkToken exchange records;

9.Fail to deal with the users' complaint of LinkToken exchange timely or properly;

10.Use the LinkToken exchange function or the LinkToken Pocket account address provided by Party A for other propose beyond the business or application submitted to Party A for review;

11.Attack the LinkToken exchange services, or attack the interface or service on the ThunderChain Open Platform through technical means;

12.Fail to adjust or modify the applications having access to LinkToken exchange services or ThunderChain Open Platform in accordance with laws, regulations and policies;

13.Other circumstances considered by Party A as class-1 breach of contract.

 

II.Class-2 Breach of Contract

In case of one of the following circumstances, Party B shall be deemed in class-2 breach of contract.

1.Slander the LinkToken exchange function, the ThunderChain Open Platform and Party A's staff members;

2.Exaggerated, false, promising or absolutized wording in the publicity information;

3.Infringe the trademarks, copyrights, portraiture rights, patents and other rights of other subjects;

4.Forge or falsify relevant documents and information (for example, relevant certificates, business licenses, website exchange records, etc.), recommend the false/invalid merchants, and carry out the false exchange;

5.Fraud via the LinkToken exchange services or the ThunderChain Open Platform (including but not limited to guiding, instigating, permitting or helping other merchants to cheat such as cashing out, or increasing in a disguised form the quantity of LinkToken corresponding to products);

6.Misuse the technical interfaces for LinkToken exchange services or the ThunderChain Open Platform;

7.Fabricate the facts, hide the truth, refuse to cooperate with Party A for or prevent Party A from normal investigation, or make malicious reporting;

8.Other circumstances considered by Party A as class-2 breach of contract.

 

III.Class-3 Breach of Contract

In case of one of the following circumstances, Party B shall be deemed in class-3 breach of contract.

1.Poor service attitude; misleading presentation; and fail to provide services to the users as promised;

2.Fail to provide the authentic and complete exchange history as required by Party A;

3.The business scope goes beyond specified by the business license;

4.Other circumstances considered by Party A as class-3 breach of contract.

 

Procedures and Determination of Breach of Contract

Party A will notify Party B via e-mail or based on the contact information provided Party B after knowing Party B's breach of contract. Party B shall reply in written form within 3 working days upon the date of Party A's notice. If Party B considers the breach of contract does not exist or has been rectified, it shall provide the corresponding proof; if it fails to give written reply within the period specified, or it raises objection without sufficient proof, Party B shall be deem breach of contract. Party A has right to make independent judgments on the basis of relevant facts and the written reply (if any) from Party B, and inform Party B of its decision via e-mail.

 

Consequences and measures taken by Party A for breach of contract

Party B shall manage strictly its distributors, and it shall be responsible for all acts of the distributors. If Party B or its distributors are determined to have breach of contract, Party B will be deemed as fundamental breach of the master agreement, in such a case, Party A is entitled to terminate all agreements signed between both parties immediately and take the following measures:

I.For Class-1 Breach of Contract:

1.Shutdown part or all of the services provided to Party B on the ThunderChain Open Platform (including the Contract open platform under the Agreement and the technical interfaces for LinkToken exchange), and Party B shall be liable for any disputes with all users thus generated;

2.Freeze the LinkToken Pocket account;

3.Shutdown any function of LinkToken Pocket;

4.Adjust the transmit-receive limits;

5.Suspend the capacity of Party B to insert new business;

6.Downgrade Party B;

7.Suspend Party B's default channels to follow;

8.Party A is not obliged to return the LinkToken to Party Bin frozen LinkToken Pocket account and shall not bear any liability for compensation.

II.For Class-2 Breach of Contract:

1.Shutdown part or all the LinkToken exchange services, the functions or authorities provided to Party B in the ThunderChain Open Platform;

2.Freeze the LinkToken Pocket account;

3.Adjust the transmit-receive limits;

4.Suspend the capacity of Party B to insert new business;

5.Downgrade Party B;

6.Party A is not obliged to return the LinkToken to Party Bin frozen LinkToken Pocket account and shall not bear any liability for compensation.

III.For Class-3 Breach of Contract:

1.Close part or all of the LinkToken exchange services provided to Party B, the functions or authorities in the ThunderChain Open Platform;

2.Freeze the LinkToken Pocket account;

3.Adjust the transmit-receive limits;

4.Downgrade Party B;

5.If Party B cooperates with Party A to rectify the irregularities, part or all of the services in the ThunderChain Open Platform may be resumed upon inspection.