Default Liabilities in Respect of Performance Commitment. Party B must ensure the authenticity of all performance data (number of users, number of works, annual income, profit). Party A shall have the right to monitor all performance data, and Party B shall provide Party A with accurate data query backstage or statements for Party A to verify. If Party A finds that Party B has the following behaviors, it is deemed that Party B’s Performance Targets are not met, and Party A shall have the right to terminate the performance appraisal in advance (i.e., Party B and the Company are deemed having not fulfilled their performance commitment, which should be handled in accordance with Article 4 of this Agreement and the Agreement of Performance Commitment and Profit Compensation of the Management of the Company). (1) Taking improper actions for marketing, including but not limited to falsifying number of visits (generating large number of installations and activations maliciously through technical means which in fact are not produced by active downloading, installing and using by real users) and other improper means to falsify user data; (2) Making false contracts in the name of others, falsifying the number of works; (3) Making false transactions with third parties or making transactions which are not consistent with fair values, or misstating income and profit data; (4) Other data counterfeiting activities.
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Sources: Equity Transfer and Equity Purchase Option Agreement (Phoenix New Media LTD), Equity Transfer Agreement (Phoenix New Media LTD)