Rules for Starbucks Single-Purpose Commercial Prepaid Card (most updated on January 10, 2018)

1. Overview

1.1 The Prepaid Cards (as defined below) under these Rules for Starbucks Single-Purpose Commercial Prepaid Card (the “Rules”) are issued by the Issuer (as defined below). Prepaid Cards may be used to purchase products or redeem designated products at a Special Merchant (as defined below). These Rules are formulated to regulate the purchase, use and management of the Prepaid Cards.

1.2 Some of the capitalized terms used herein shall have the meanings defined below:

“Issuer” means Starbucks (Shanghai) Trade Company Limited.

“Purchaser” means any individual or entity that purchases a Prepaid Card pursuant to these Rules.

“Cardholder” means any person who actually holds a Prepaid Card.

“Starbucks Store” means any designated Starbucks coffee shop that may accept the Prepaid Cards, as published by the Issuer on its official website from time to time and/or indicated through the Prepaid Cards (on the face of cards/coupons, or by electronic notice, etc.)

“Seller” means any entity authorized by the Issuer to sell the Prepaid Cards, including but not limited to Starbucks Stores and online sales channels authorized by the Issuer in writing, etc. The Issuer will publish a list of its authorized sellers on its official website.

“Special Merchant” means a Starbucks Store or other Starbucks-branded merchant that may accept the Prepaid Cards, as published by the Issuer on its official website from time to time.

1.3 The Issuer, Purchaser, Cardholder, Seller and Special Merchant shall comply with and be bound by these Rules.

2. Prepaid Cards

2.1 Starbucks single-purpose commercial Prepaid Cards shall include the following cards and coupons:

(1) Printed beverage coupon: Paper coupons printed by the Issuer, which may be used at a Starbucks Store to redeem a cup of handcrafted coffee, tea or dairy beverage of designated size made onsite according to a standard formula, excluding any bottled drinks (such as bottled juice, Tazo bottled tea, bottled Frappuccino and bottled water, etc.) Additional fees will be charged for espresso, syrup, whipped cream and size upgrades.

(2) Electronic beverage coupon: Virtual cards in the form of passwords, barcodes, graphs or in other electronic forms, which may be used at a Starbucks Store to redeem a cup of handcrafted coffee, tea or dairy beverage of designated size that is produced onsite according to a standard formula, excluding any bottled drinks (such as bottled juice, Tazo bottled tea, bottled Frappuccino and bottled water, etc.) Additional fees will be charged for additional espresso shots, syrup, whipped cream and size upgrades.

(3) E-coupon for special products: Virtual cards in the form of passwords, barcodes, graphs or other electronic forms, which may be used to redeem products, as designated at the time of purchase, from Special Merchants.

(4) Physical Prepaid Card: Physical cards prepared by the Issuer with payment functions, which may be used to purchase designated products sold by Special Merchants.

(5) Electronic Prepaid Card: Virtual cards in the form of passwords, barcodes, graphs or other electronic forms with payment functions, which may be used to purchase designated products sold by Special Merchants.

(6) Other single-purpose commercial prepaid cards and coupons issued upon filing with Shanghai Municipal Commission of Commerce.

For purpose of these Rules, the foregoing cards and coupons are collectively referred to as the “Prepaid Cards”.

2.2 The Prepaid Cards are denominated in RMB in the face amount of up to RMB 1,000.

2.3 The Prepaid Cards are unregistered cards and may not be declared lost, cashed in or exchanged for cash. The Prepaid Cards may not be overdrawn. No interest, dividends or any other benefits shall accrue on the funds in the card, and such funds may not be transferred or moved to any bank account or online payment account.

2.4 The Issuer has the right to impose supplemental provisions with respect to the scope, manner and conditions of use regarding the Prepaid Cards, and indicate the same to the Purchaser/Cardholder through the Prepaid Cards (e.g., printed on the face of cards/coupons, or by electronic notice attached to the cards/coupons, etc.). The Purchaser/Cardholder shall abide by these provisions.

3. Purchase and Reloading

3.1 Any individual or entity eligible to purchase cards under these Rules may purchase a Prepaid Card from the Issuer/Seller in cash, by credit or debit card, through bank transfer or by other means of payment acceptable to the Issuer or Seller. Other than the above sales channels, no organization, website or individual is authorized or delegated by the Issuer to sell the Prepaid Cards in any manner.

3.2 The printed beverage coupons shall be sold only in units.

3.3 Cardholders may reload the Prepaid Cards in cash, by credit or debit card, or by other means of payment acceptable to the Issuer or Seller, through the Seller or other channels as designated by the Issuer from time to time. The types of reloadable Prepaid Cards, and the reloading channels and locations will be notified by the Issuer separately.

3.4 The accumulated balance in a single physical or electronic Prepaid Card shall not exceed RMB 1,000. The reloaded amount for any single reloading shall be RMB 100 or integral multiples of RMB 100 at a Starbucks Store, or as otherwise determined by other reloading channels and/or methods.

3.5 Real-name Authentication

3.5.1 Any purchase or reloading of a Prepaid Card at any one time with a total value of RMB 10,000 or more may be made from the Issuer or the designated Seller or by calling the Issuer’s customer service hotline for assistance by a dedicated person, and shall go through real-name authentication.

3.5.2 To go through real-name authentication, Purchasers or the Cardholders will be required to provide the original of their identity certificate, including but not limited to the name or entity name, the number of valid identity certificates and the contact information of the Purchasers or the Cardholders and their agents, for record-keeping by the Issuer or the Seller if authorized by the Issuer in writing. Valid personal identity certificates include resident ID card, household register, military identity certificate, armed police identity certificate, Hong Kong, Macao and Taiwan Resident Pass and passport, etc. Valid organization identity certificates include business license, certificate of institutional legal person, tax registration certificate and organization code certificate, etc.

3.5.3 The Issuer and/or the Seller shall retain the above registration information of the Purchaser or the Cardholder for at least five years.

3.6 When an organization at any one time purchases or reloads Prepaid Cards with a total value of RMB 5,000 or more, or when an individual at any one time purchases or reloads Prepaid Cards with a total value of RMB 50,000 or more, or when an individual or organization purchases or reloads Prepaid Cards in a manner other than an onsite purchase, the purchase may not be made in cash, but shall be effected by bank transfer to the bank account designated by the Issuer or Seller without using any third-party e-payment platform (such as Alipay, etc.). The individual or organization purchasing or reloading the Prepaid Cards shall provide payment information on bank account (including account name, account number and amount etc.).

3.7 Upon request by the Issuer/Seller, the Purchaser shall enter into a Prepaid Card purchase contract with the Issuer/Seller. If requested by the Purchaser, the Issuer/Seller shall enter into a Prepaid Card purchase contract with the Purchaser.

4. Use

4.1 When the Cardholder purchases products or redeems designated products at any Special Merchant with a Prepaid Card, if the balance on the Prepaid Card is insufficient, the Cardholder may pay the remainder in cash, by credit or debit card, or through other means of payment acceptable to the Special Merchant.

4.2 Except the circumstances under Article 4.3 herein, any purchased physical Prepaid Card may be used only upon activation. The two ways of activating the cards are provided as follows:

(1) Physical Prepaid Cards purchased at a Starbucks Store may be activated onsite for immediate use;

(2) For any physical Prepaid Card purchased through channels other than Starbucks Stores, after paying the price and receiving the Prepaid Card, the Purchaser shall activate the card according to the activation process provided along with such card.

4.3 Printed beverage coupons, electronic beverage coupons, e-coupons for special products and electronic Prepaid Cards may be used immediately after purchase without activation.

4.4 Prepaid Cards shall be valid until the expiration date indicated on the face of the card or as otherwise notified (including but not limited to notice in electronic form), which shall be three years from the activation date (or, if applicable, from the latest date of reloading). Cardholders shall use their Prepaid Cards within the validity term. Upon expiration of the validity term, the following rules shall apply to the Prepaid Cards:

(1) Printed beverage coupon: Upon expiration of the validity term, Cardholders may collect a new Prepaid Card at the place designated by the Issuer, provided that RMB 1 Yuan per coupon shall be paid as the service fee for replacement.

(2) E-coupons for special products, and electronic beverage coupons for non-special products, electronic Prepaid Cards and physical Prepaid Cards:If any balance remains on the Prepaid Card on its stated expiration date (the “Original Expiration Date”), then the validity term of the Prepaid Card will be automatically extended by 30 days beyond the Original Expiration Date. On the first business day of the month following the extended expiration date (the “First Extended Expiration Date”), the Issuer will deduct a management fee for such initial extension from the Prepaid Card balance, equal to the greater of RMB 2 Yuan or 1% of any remaining balance on such Prepaid Card as of the Original Expiration Date. If any balance remains on the Prepaid Card on the First Extended Expiration Date, the Prepaid Card will be automatically extended for another 30 days. On the first business day of the month following the second extended expiration date, the Issuer will deduct a management fee for such extension from the Prepaid Card balance, equal to the greater of RMB 2 Yuan or 1% of the balance on such Prepaid Card as of the First Extended Expiration Date. Each subsequent duration and method of extension as well as calculation and collection of extension management fee shall be the same as above. The extension management fee will be directly deducted from the Prepaid Card until the balance is exhausted.

4.5 Except printed beverage coupons, transactions by Prepaid Cards will be subject to automatic payment and settlement online and in real time. When a transaction is completed, the amount of the products shall be immediately deducted from the Prepaid Card balance. In each such transaction, the printed sales receipt shall be the valid voucher for the transaction.

4.6 When a Cardholder uses any printed beverage coupon in a transaction, the Starbucks Store will scan the barcode on the printed beverage coupon to make it void, and then take back the coupon. In each such transaction, the printed sales receipt shall be the valid voucher for the transaction.

4.7 Unless otherwise stipulated by the Issuer or the Special Merchant, other discounts or incentives offered by the Special Merchant will not be applicable to transactions by Prepaid Cards.

4.8 Inquiries and Correction of Transactional Errors

4.8.1 In the reconciliation process, if the Issuer discovers any accounting or other transactional errors in transactions, the Issuer has the right to correct the balance on the Prepaid Card. In case of any doubt regarding such correction, the Cardholder may call the Issuer’s customer service hotline. The Issuer will investigate the matter, correct errors (if any) and notify the Cardholder of the result in a timely manner. If there are no errors, the Issuer will explain to the Cardholder accordingly.

4.8.2 If a Cardholder believes that there are any accounting or other transactional errors in a transaction, the Cardholder shall call the Issuer’s customer service hotline within 30 days after occurrence of the transaction. If the error is verified by the Issuer, the Issuer shall correct the balance on the Prepaid Card. Other than that, the Issuer shall not be liable to the Cardholder in any other manner.

4.9 The Issuer will enable Cardholders to inquire about the balance on the Prepaid Cards, advise Cardholders on matters related to the use of Prepaid Cards, and handle complaints by Cardholders.

4.10 Purchasers and/or Cardholders shall not resell the Prepaid Cards to any third party in any manner, nor shall they use them for any illegal purposes.

4.11 Purchasers and/or Cardholders may use Prepaid Cards only under the conditions set forth in these Rules. By holding or using Prepaid Cards, Purchasers and/or Cardholders are not authorized to use “星巴克”, “Starbucks”, or logos, trademarks or other associated intellectual property rights owned by the Issuer or its affiliates.

4.12 The Issuer, Special Merchant and Seller shall not be liable for losses caused to the Cardholder due to failure to use Prepaid Cards normally under any of the following circumstances, provided that the Issuer shall help the Cardholder resolve problems and give necessary assistance:

(1) Downtime of the operation or settlement system of the Issuer or the Special Merchant for repair or maintenance purposes;

(2) Failure, instability, upgrade or maintenance of power supply, telecommunication or bank systems, equipment or website, which results in a power cut or instability, failure or interruption of data transmission;

(3) Typhoon, earthquake, tsunami, flood, war, terrorist attack, riot, demonstration and other force majeure events, which prevent the Issuer or the Special Merchant from operating normally or cause failure of its operation or settlement system to operate the business normally.

5. Return of Products or Prepaid Cards, Replacement of Prepaid Cards and Loss Declaration

5.1 Return of Products

5.1.1 Except the circumstances set forth in Section 5.1.2 herein, if the Cardholder returns the products purchased with a Prepaid Card in compliance with the Special Merchant’s rules on returns, any amount deducted from such Prepaid Card when purchasing such product will be refunded to such Prepaid Card. The validity term of the Prepaid Card will not be changed as a result of such return of products. If the original Prepaid Card does not exist and the amount to be refunded is no more than RMB 100 Yuan, the payment may be made in cash. If the original Prepaid Card does not exit and the amount to be refunded is more than RMB 100 Yuan, the Issuer or the Special Merchant will issue to the Cardholder one or more new Prepaid Card(s) in the amount of an integral multiple of RMB 100 Yuan with any remaining refund amount of less than RMB 100 Yuan being paid in cash. In case of such return of products, the Issuer or the Special Merchant will have the right to require the Cardholder to present the identity certificate set forth in Section 3.6 herein.

5.1.2 In the event that the Cardholder returns the beverage redeemed with printed beverage coupons in compliance with the Special Merchant’s rules on returns, the Cardholder will obtain a voucher in an amount equivalent to the returned goods, which voucher may be used for consumption next time.

5.2 Return of Prepaid Cards

5.2.1 If the Cardholder wishes to return a Prepaid Card, the Prepaid Card shall be returned by the original Purchaser and such return shall be handled through the channel designated by the Issuer. To apply for return of the Prepaid Card, an individual is required to provide a valid identity certificate consistent with that provided by the original Purchaser, and an enterprise is required to provide the application form for return of Prepaid Card and a photocopy of its business license, both of which shall be affixed with its official seal. Those who request to return a Prepaid Card are required to return the original invoice for purchase and reloading (if applicable) of the Prepaid Card and relevant payment voucher. If any discount or incentive was received when purchasing the Prepaid Card being returned, the amount to be refunded will be the amount actually paid when purchasing and reloading (if applicable) the Prepaid Card or the full amount of the Prepaid Card less the amount of such discount. If the Purchaser is entitled to any discount or incentive based on the aggregate amount of purchases of Prepaid Cards in a given year, upon handling of the application for return of a Prepaid Card, the amount to be refunded will be deducted from the aggregate amount of purchases of Prepaid Cards in that year.

5.2.2 For the return of a Prepaid Card, the processing fee will be equal to 2% of the balance amount in one card, or total balance of two or more cards, with the minimum fee being RMB 20 Yuan. Upon deduction of the above processing fee, the balance on the Prepaid Card will be refunded to the bank card used by the Purchaser when purchasing the Prepaid Card (applicable when the purchase was made with a bank card), or the bank account opened in the name of the Purchaser (applicable when the purchase was made in a manner other than with a bank card).

5.3 Replacement of Prepaid Cards

5.3.1 For physical Prepaid Cards, if a Prepaid Card cannot be used in transactions as a result of damage and must be replaced, after the personnel designated by the Issuer verifies that such Prepaid Card is issued by the Issuer and there is a balance on the card, the Cardholder may go through procedures for replacement at a venue designated by the Issuer and pay the processing fee for such replacement. The processing fee for each replacement of a physical Prepaid Card is RMB 10 Yuan, which shall be directly deducted from the balance on the card or paid by the Cardholder in cash. For electronic Prepaid Cards, if the Purchaser has not received or has lost the electronic code, after the Issuer verifies that such electronic code has not been used, the Issuer will send the new electronic code to the cell phone number provided by the Purchaser when purchasing the Prepaid Card. A processing fee of RMB 1 Yuan will be charged each time, which shall be directly deducted from the balance on the card or otherwise paid by the Cardholder. In either case, the Issuer has the right to require the Cardholder to present the identity certificate set forth in Section 3.6 herein.

5.3.2 If the barcode of a printed beverage coupon is damaged or is indicated as void when scanned at a Starbucks Store, such coupon shall be deemed as used and the Issuer will not provide any replacement service.

5.4 The loss, damage and any other risks related to a Prepaid Card will be transferred to the Purchaser at the time the Prepaid Card is delivered by the Issuer or Seller to the Purchaser (electronic Prepaid Cards being deemed delivered when sent to the Purchaser in an electronic form). The Purchaser/Cardholder shall be liable for any defacing, loss or destruction of Prepaid Cards due to its improper care.

6. Invoice

6.1 Pursuant to the procedures set forth herein, the Issuer will issue to the Purchasers or the Cardholders invoices for Prepaid Cards purchased or reloaded in compliance with the applicable national laws and regulations. For new Prepaid Cards obtained by the Cardholder for return of products pursuant to Section 5.1.1 of these Rules, the Issuer will not issue any invoice.

6.2 Application for and Issuance of Invoices

6.2.1 Within 30 days after purchasing or reloading a Prepaid Card from a Seller, the Purchaser/Cardholder may request an invoice at the Issuer’s official website according to the sales slip and authorization code on the sales or reloading receipt.

6.2.2 When a Purchaser purchases a Prepaid Card through online sales channels authorized by the Issuer in writing or directly from the Issuer, or when a Cardholder reloads a Prepaid Card through the aforesaid channels, the Purchaser or the Cardholder may request the invoice at the time of purchase or reloading.

6.2.3 When requesting an invoice, the Purchaser or the Cardholder shall provide his/her valid mailing address in mainland China. The Issuer will send the invoice by courier or registered mail to the address provided by the Purchaser or the Cardholder. If the invoice cannot be delivered because the address is wrong, or the Purchaser or the Cardholder does not collect the mail, or due to any other reason not attributable to the Issuer, the Purchaser or the Cardholder shall be liable for any losses arising from such failure in delivery.

6.3 The amount of the invoice requested by the Purchaser or the Cardholder shall be consistent with the amount indicated on the sales or reloading receipt. The content of the requested invoice shall comply with applicable national laws and regulations rather than at the discretion of the Purchaser or the Cardholder.

6.4 When a Cardholder purchases or redeems products with a Prepaid Card at a Special Merchant, the Special Merchant will not issue an invoice for such products. However, if in a single transaction, the Cardholder also makes payment by a means other than a Prepaid Card, the Special Merchant may issue an invoice for the amount not covered by the Prepaid Card pursuant to the applicable national laws and regulations as well as its own financial policy.

7. Disclaimer

To the maximum extent permitted by applicable laws, the Issuer, Seller or Special Merchant shall not be liable for any loss or damage, whether direct or indirect, incurred by the Purchaser, Cardholder or any third party in connection with the Prepaid Cards, including but not limited to any loss of revenue, profit, reputation, data and use of funds, whether based on tort, breach of agreement or other causes of action. This provision does not exclude or limit the responsibility of the Issuer, Seller or Special Merchant with respect to: (1) liability arising from fraudulent acts; or (2) liability that may not be excluded or limited under applicable laws.

8. Miscellaneous

8.1 Under the following circumstances, the Issuer is entitled to reject the transactions, or suspend or terminate the services to the Purchaser/Cardholder, and the Purchaser/Cardholder shall be liable for any losses caused by such acts:

(1) The Issuer, Seller or Special Merchant requests verification of the identity of the Purchaser/Cardholder, information on transaction with a Prepaid Card and other relevant information under applicable national laws and regulations, but the Purchaser/Cardholder refuses;

(2) The Purchaser/Cardholder steals another’s identity or uses a forged or altered identity certificate for purchase, reloading or use of Prepaid Cards;

(3) The Purchaser/Cardholder purchases or reloads Prepaid Cards outside the sales or reloading channel published by the Issuer;

(4) The Purchaser/Cardholder commits any fraudulent acts when purchasing, reloading or using Prepaid Cards;

(5) The Purchaser/Cardholder purchases, reloads or uses Prepaid Cards in violation of these Rules;

(6) The Purchaser/Cardholder carries out illegal transactions in violation of applicable national or local laws and regulations;

(7) The Purchaser/Cardholder uses forged, altered or incomplete Prepaid Cards; or

(8) Other circumstances where the legitimate rights and interests of the Issuer, Seller, Special Merchant or other Purchasers/Cardholders are impaired.

8.2 If the Issuer terminates the redemption of Prepaid Cards in effect, it shall provide Purchasers/Cardholders with return service free of charge, and shall place an announcement on the media designated by the prepaid card filing authority at least 30 days prior to such termination.

8.3 These Rules are formulated by the Issuer. The Issuer is entitled to amend these Rules, provided that the Issuer places an announcement at the Starbucks Store, the Issuer’s website or in another manner designated by the Issuer. Once the amendment or adjustment is announced, these Rules will take effect immediately, without separate notice to Purchasers or Cardholders. Purchasers or Cardholders are obligated to regularly visit Starbucks Stores, the official website of the Issuer or other channels designated by the Issuer so as to be informed of any amendments to the Rules. By continuing purchasing and/or using Prepaid Cards after any amendment to the Rules, the Purchaser/Cardholder shall be deemed as having accepted the amendment to these Rules. If the Purchaser/Cardholder disagrees with the amendment, the Purchaser/Cardholder shall use up the balance on the Prepaid Card before the amendment takes effect, and shall cease using the Prepaid Card after the amendment becomes effective.

8.4 Dispute Resolution

8.4.1 Any dispute arising out of these Rules shall be first settled through consultations between the parties. If no settlement is reached within 15 days from the date one party notifies the other party in writing requesting consultation, then such dispute shall be submitted to the Shanghai Arbitration Commission (“SAC”) for arbitration in accordance with the SAC rules then in effect. The arbitration tribunal shall consist of one arbitrator. The arbitration proceedings shall be conducted in Chinese. The arbitration award shall be final and legally binding upon both parties.

8.4.2 When a dispute is in the process of resolution, except any part in dispute under arbitration, the parties shall continue performing the remainder of these Rules. Each party to the arbitration proceeding shall maintain the confidentiality of the arbitration, and may not disclose the arbitration or its contents or result to any third party, unless such disclosure is required by law.

8.5 These Rules are written in Chinese. The English translation is for reference only and shall have no legal effect.

8.6 These Rules have been filed with Shanghai Municipal Commission of Commerce, and shall take effect on the 27th day of February, 2018.