Terms and Definitions

Bitup-Agency means a Bitbon System Participant[i], which has the right to make a decision on the admission of the Contractat’s[i] project to the IBO[i] (Initial Business Offering) and to supervise its implementation in the Bitbon System under the terms and conditions of the Bitbon Public Contract[i] of a specific project by representing and protecting the Contributors’[i] interests.

The Bitbon Public Contract of a specific project defines additional rights and obligations of the Bitup-Agency as one of its independent parties, including control over the backing and repurchasing of Projectbons[i] from Contributors through Assets[i] in cases stipulated by the Bitbon Public Contract of a specific project.

In accordance with Clause 45[i] of the Bitbon System Public Contract, the Bitbon System Participant in the status of a Bitup-Agency receives remuneration designated exclusively in Projectbons in the amount of 10% of the Bitbon Capitalization Fund’s share, i.e. the share which has been received in Projectbons in the process of automatic Contributing, in accordance with the class of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.

In accordance with Clause 46[i] of the Bitbon System Public Contract, the Bitbon System Participant in the status of a Bitup-Agency has the right to independently determine the cost of services for performing the basic functions of the Bitup-Agency while preparing for the IBO as well as for further servicing the Contractat’s activities provided that the Contractat fulfills his/her obligations under the terms and conditions of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.

Basic functions of the Bitup-Agency:

1. Provision of consulting services to the Bitbon System Participants regarding business-projects at all stages of their implementation.

2. Evaluation of the Contractat’s business project to determine the validity of the proposed business model.

3. Preparation and supervision of the business plan in accordance with the basic international rules of conducting commercial activity.

4. Drawing up the terms and conditions of the Bitbon Public Contract of a specific project in accordance with the business plan approved by the Contractat.

5. Admission of the Contractat’s project to the IBO and supervision of its implementation in the Bitbon System.

6. Control of the Bitbon[i] distribution at all stages of the business project implementation and fulfillment of all obligations by the Contractat under the terms and conditions of the Bitbon Public Contract of this project.

7. Legal support of the Contractat (consulting and supervision of the business-project in the jurisdiction where this business project is being implemented).

8. Provision of additional information during the IBO process at the request of the Contributor, which confirms the validity of the Contractat’s business plan.

9. Controlling the fulfillment of the Contractat’s obligations to the Contributors under the terms and conditions of the Bitbon Public Contract of a specific project.

Bitbon System Participant means an individual, i.e., a person, a participant of civil and other legal relations (holder of rights and obligations), or a Company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or a Company consolidation (any company consolidation registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer) that have directly performed an action, which has entailed an event within the Bitbon System.
Contractat means a company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or an individual, i.e. a person, participant of civil and other legal relations (holder of rights and obligations). The Contractat initiates creation of the Bitbon Public Contract of his/her own project, which is accepted into the Bitbon System on the basis of admission to the IBO (Initial Business Offering) by the Bitup-Agency.
IBO (Initial Business Offering) means a process in the Bitbon System, in which three parties take part: Contractat, Bitup-Agency and Contributors. The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract of a specific project to raise the required amount of Bitbons from Contributors in exchange for Projectbons in order to implement this business project. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons. From this moment on, the terms and conditions of the Bitbon Public Contract of this business project automatically come into force. After that, the Contractat begins to fulfill his/her obligations aimed at successful implementation of the project.
Bitbon Public Contract means a digital document of a certain class according to the classifier accepted in the Bitbon System, which defines and regulates: rights and obligations of the Contractat, Bitup-Agency and Contributors as well as the procedure, manner and conditions of their relations as three parties to the Bitbon Public Contract of a specific project; field of Projectbon use as well as all products and operations that may be applied to Projectbon. The Bitbon Public Contract of a specific project can define the terms and procedures for Projectbon issuing, Bitbon and Projectbon transfer rules, procedure for repurchasing Projectbons from the Contributor as well as the reference to the procedure for evaluating Assets.
Contributor means a Bitbon System User who exchanges his/her Bitbons for Projectbons to receive a certain amount of benefit from Contributing and thereby participates in the implementation of the selected business project.
Projectbon means a derivative instrument from a specific class of the Bitbon Public Contract intended for Contributing, which has unique attributes and properties with the ability to circulate only in the Bitbon System under the terms and conditions specified in the Bitbon Public Contract of a specific project. Projectbon represents obligations of the Contractat to the Bitbon System Users expressed in a legal form as well as an actual opportunity to monitor the fulfillment of obligations of the Bitbon System Users as a whole.
Assets mean property that is legally owned by the Bitbon System User, including real estate, bank deposits, machinery and production equipment, securities, patents, trademarks, know-how, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals, Bitbons or Projectbons of another Bitbon System User and other assets.
Clause 45. The Bitbon System Participant in the status of a Bitup-Agency, being one of the parties to the Bitbon Public Contract of a specific project, undertakes obligations to fully supervise implementation of the Contractat’s project in the Bitbon System, representing and protecting the Contributors’ interests. As the founder of the Bitbon System, Simcord Company establishes remuneration designated exclusively in Projectbons in favor of the Bitbon System Participant having the status of a Bitup-Agency in the amount of 10% of the Bitbon Capitalization Fund's share, i.e. the share which has been received in Projectbons in the process of automatic Contributing, in accordance with the class of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.
Clause 46. In the Bitbon System, in accordance with Clause 34 hereof, the Bitbon System Participant in the status of a Bitup-Agency has the right to independently determine the cost of services for performing the basic functions of the Bitup-Agency while preparing for the IBO (Initial Business Offering) as well as for further servicing the Contractat’s activities provided that the Contractat fulfills his/her obligations under the terms and conditions of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.
Bitbon means a digital derivative financial instrument having an identifier and nominal value in the amount determined in accordance with the procedure stipulated by the Bitbon Public Contract, which corresponds to a certain part of property rights to Assets designated in Bitbons or Projectbons. Any operations with Bitbon (Bitbon issuing, its transfer from one owner to another, splitting of nominal value and other operations) are recorded in the Blockchain as data that cannot be deleted or modified.