Your appeal was already denied due to a double-infringement that was discovered when a complaint was received regarding malicious material hosted on your site. This decision was permanent; upgrading to Prime is not able to remove the suspension.
The root-issue at hand here (the malicious content part of the complaint was likely from an account compromise or something similar) is that the account owner, based on all login history to the account, is based out of China. China is currently in our Blacklist as far as countries we cannot provide free hosting service to; for more information, please read:
http://x10hosting.com/forums/useful-information/166022-country-restrictions.html
Unfortunately with the blacklist having been bypassed at sign up, the suspension must stand, and cannot be removed. Prime hosting removes the inactivity requirement from our Terms of Service, but it does not change the rest of the Terms of Service, nor does it work for bypassing the country restriction. You may still choose to upgrade to x10Premium, which doesn't have the same blacklist restrictions as Free Hosting does, but the free hosting account cannot be unsuspended.