Level Recognition 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.The application using Contract Open Platform contains 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.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 ThunderChain Open Platform;

5.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;

6.Fails to deal with the complaint of the usage of the application of the Contract Open Platform interface timely or properly;

7.Uses the Contract Open Platform interface provided by Party A for other propose beyond the agreed business;

8.Attack the interface or service on the ThunderChain Open Platform through technical means;

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

10.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 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.Use the interface or service provided by the ThunderChain Open Platform to engage in or help other merchants to conduct fraud (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 or services);

6.Misuse the technical interfaces for 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.Use the Contract Open Platform provided by Party A and the contract cannot proceed normally due to the insufficient LinkToken balance in account, which resulting in user complaints more than 3 times.

9.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.

 

Penalty 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 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.Adjust the transmit-receive limits;

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

5.Downgrade Party B;

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

7.Party A is not obliged to return the LinkToken to Party B in frozen LinkToken Pocket account address and shall not bear any liability for compensation.

The relevant Agreement shall be immediately terminated after Party A's notice is delivered to Party B's e-mail address.

II.For Class-2 Breach of Contract:

1.Shutdown part or all 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 and new contract;

5.Downgrade Party B;

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

III.For Class-3 Breach of Contract:

1.Shutdown part or all 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.Downgrade Party B.