Risks and Disclaimer

PLEASE READ THIS SCHEDULE CAREFULLY BEFORE PARTICIPATING IN THE TOKEN SALE OR ISPO OF THE FLAC TOKEN ISSUED BY FLAC FINANCE (THE “COMPANY”).

THE RISKS AND DISCLAIMER SCHEDULE APPLIES TO THE COMPANY’S WHITE PAPER AND ANY AND ALL INFORMATION AVAILABLE ON THE COMPANY’S WEBSITE. THE CONTENTS OF THE RISKS AND DISCLAIMER SCHEDULE OUTLINES THE TERMS AND CONDITIONS APPLICABLE TO YOU IN CONNECTION WITH (I) YOUR USE OF THIS WHITE PAPER AND OF ANY AND ALL INFORMATION AVAILABLE ON THE WEBSITE; AND/OR (II) YOUR PARTICIPATION IN THE TOKEN SALE AND ISPO EVENT, IN EACH CASE IN ADDITION TO ANY OTHER TERMS AND CONDITIONS THAT WE MAY PUBLISH FROM TIME TO TIME RELATING TO THIS WHITE PAPER, THE WEBSITE AND THE TOKEN SALE AND ISPO (SUCH TERMS HEREINAFTER REFERRED TO AS THE “TERMS”). THE INFORMATION SET FORTH IN THE RISKS AND DISCLAIMER MAY NOT BE EXHAUSTIVE AND DOES NOT IMPLY ANY ELEMENTS OF A CONTRACTUAL RELATIONSHIP. WHILE WE MAKE EVERY REASONABLE EFFORT TO ENSURE THAT ALL INFORMATION: (I) IN THIS WHITE PAPER; AND (II) AVAILABLE ON THE WEBSITE (COLLECTIVELY REFERRED TO AS THE “AVAILABLE INFORMATION”) IS ACCURATE AND UP TO DATE, SUCH MATERIAL IN NO WAY CONSTITUTES PROFESSIONAL ADVICE. THE COMPANY DOES NOT RECOMMEND PURCHASING TOKENS FOR SPECULATIVE INVESTMENT PURPOSES. YOU SHOULD NOT PURCHASE THE TOKENS OR PARTICIPATE IN ISPO FOR INVESTMENT PURPOSES. SUCH TOKENS ARE NOT DESIGNED FOR INVESTMENT PURPOSES AND SHOULD NOT BE CONSIDERED AS A TYPE OF INVESTMENT. YOU ACKNOWLEDGE, UNDERSTAND AND AGREE THAT HOLDING FLAC TOKENS IS NOT A GUARANTEE, REPRESENTATION OR WARRANTY THAT THE HOLDER WILL BE ABLE TO USE THE COMPANY, OR RECEIVE ANY TOKENS UTILISED BY THE COMPANY. YOU ACKNOWLEDGE AND AGREE THAT YOU ARE NOT PURCHASING OR PARTICIPATING IN ISPO FOR FLAC TOKENS FOR PURPOSES OF INVESTMENT, SPECULATION, AS SOME TYPE OF ARBITRAGE STRATEGY, FOR IMMEDIATE RESALE OR OTHER FINANCIAL PURPOSES. YOU ACKNOWLEDGE THAT ALL PURCHASES OF FLAC TOKENS AND ISPO REWARDS ARE FINAL AND NON-REFUNDABLE, AND THE COMPANY IS NOT REQUIRED TO PROVIDE A REFUND FOR ANY REASON AND THAT YOU WILL NOT RECEIVE MONEY OR OTHER COMPENSATION OR ANY FORM OF A REFUND.

FLAC TOKENS DO NOT ENTITLE YOU TO ANY EQUITY, CORPORATE GOVERNANCE, DIVIDENDS, VOTING OR SIMILAR RIGHT OR ENTITLEMENT IN THE COMPANY OR IN ANY OF ITS AFFILIATED COMPANIES. TOKENS ARE SOLD AND DISTRIBUTED AS DIGITAL ASSETS, SIMILAR TO DOWNLOADABLE SOFTWARE, DIGITAL MUSIC AND THE LIKE. THE COMPANY DOES NOT RECOMMEND THAT YOU PURCHASE TOKENS UNLESS YOU HAVE PRIOR EXPERIENCE WITH CRYPTOGRAPHIC TOKENS, BLOCKCHAIN-BASED SOFTWARE AND DISTRIBUTED LEDGER TECHNOLOGY AND UNLESS YOU HAVE TAKEN INDEPENDENT PROFESSIONAL ADVICE.

CITIZENS, NATIONALS, RESIDENTS (TAX OR OTHERWISE) AND/OR GREEN CARD HOLDERS OF EACH OF (I) SOUTH KOREA; (II) THE PEOPLE’S REPUBLIC OF CHINA; (III) THE STATE OF ISRAEL; OR (IV) UNITED STATES (V) ANY OTHER JURISDICTION WHICH PROHIBITS THE POSSESSION, DISSEMINATION OR COMMUNICATION OF THE AVAILABLE INFORMATION AND/OR PROHIBITS PARTICIPATION IN THE TOKEN SALE OR THE PURCHASE OF TOKENS OR ANY SUCH SIMILAR ACTIVITY OR ANY OTHER RESTRICTED PERSONS ARE NOT PERMITTED TO PARTICIPATE IN THE TOKEN SALE. IN NO EVENT SHALL THE COMPANY OR ANY CURRENT OR FORMER COMPANY REPRESENTATIVES BE LIABLE FOR THE EXCLUDED LIABILITY MATTERS.

THE COMPANY DOES NOT MAKE OR PURPORT TO MAKE, AND HEREBY DISCLAIMS, ANY REPRESENTATION, WARRANTY OR UNDERTAKING IN ANY FORM WHATSOEVER TO ANY ENTITY OR PERSON, INCLUDING ANY REPRESENTATION, WARRANTY OR UNDERTAKING IN RELATION TO THE TRUTH, ACCURACY AND COMPLETENESS OF ANY OF THE INFORMATION SET OUT IN THE AVAILABLE INFORMATION. YOU SHOULD CAREFULLY CONSIDER AND EVALUATE EACH OF THE RISK FACTORS AND ALL OTHER INFORMATION CONTAINED IN THE TERMS BEFORE DECIDING TO PARTICIPATE IN THE TOKEN SALE AND ISPO.

THERE IS NO PRIOR MARKET FOR TOKENS AND THE TOKEN SALE MAY NOT RESULT IN AN ACTIVE OR LIQUID MARKET FOR THE TOKENS. FUTURE SALES OR ISSUANCE OF THE TOKENS COULD MATERIALLY AND ADVERSELY AFFECT THE MARKET PRICE OF TOKENS. NEGATIVE PUBLICITY MAY MATERIALLY AND ADVERSELY AFFECT THE PRICE OF THE TOKENS. THERE IS NO ASSURANCE OF ANY SUCCESS OF THE COMPANY’S BUSINESS PLATFORM OR ANY FUTURE TOKEN FUNCTIONALITY. THE MARKET PRICE OF THE TOKENS MAY FLUCTUATE FOLLOWING THE TOKEN SALE.

THE TOKEN MAY BE SIGNIFICANTLY INFLUENCED BY CRYPTOCURRENCIES MARKET TRENDS AND THE TOKEN VALUE MAY BE SEVERELY DEPRECIATED DUE TO UNRELATED EVENTS IN THE CRYPTOCURRENCIES MARKETS. THE USE OF THE TOKENS MAY COME UNDER THE SCRUTINY OF GOVERNMENTAL INSTITUTIONS. THE OWNERSHIP OF TOKENS MAY FALL UNDER NEW AND UNPREDICTED TAXATION LAWS THAT WILL ERODE THE TOKEN'S BENEFITS. THERE MAY BE UNANTICIPATED RISKS ARISING FROM THE TOKENS. APPLICABLE LAWS AND REGULATIONS MAY LIMIT THE UTILITY, FUNCTIONALITY, ACCESSIBILITY AND TRANSFERABILITY OF THE TOKENS. THE COMPANY MAY BE MATERIALLY AND ADVERSELY AFFECTED IF IT FAILS TO EFFECTIVELY MANAGE ITS OPERATIONS AS ITS BUSINESS DEVELOPS AND EVOLVES WHICH WOULD HAVE A DIRECT IMPACT ON ITS ABILITY TO MAINTAIN OR OPERATE THE COMPANY’S BUSINESS PLATFORM AND/OR DEVELOP STRUCTURE AND/OR LICENCE ANY FUTURE TOKEN FUNCTIONALITY. THE COMPANY MAY EXPERIENCE SYSTEM FAILURES, UNPLANNED INTERRUPTIONS IN ITS NETWORK OR SERVICES, HARDWARE OR SOFTWARE DEFECTS, SECURITY BREACHES OR OTHER CAUSES THAT COULD ADVERSELY AFFECT THE COMPANY’S INFRASTRUCTURE NETWORK, AND/OR THE COMPANY’S BUSINESS PLATFORM. THE COMPANY MAY IN THE FUTURE BE DEPENDENT IN PART ON THE LOCATION AND DATA CENTRE FACILITIES OF THIRD PARTIES. GENERAL GLOBAL MARKET AND ECONOMIC CONDITIONS MAY HAVE AN ADVERSE IMPACT ON THE COMPANY’S OPERATING PERFORMANCE, RESULTS OF OPERATIONS AND/OR CASH FLOWS. THE COMPANY OR THE TOKENS MAY BE AFFECTED BY NEWLY IMPLEMENTED REGULATIONS. THE COMPANY MAY NOT BE ABLE TO PAY ANY ANTICIPATED REWARDS IN THE FUTURE.