Current Report No. 8/2024 ESPI – A new agreement with “Frozen District”

October 31, 2024

Company: CHERRYPICK GAMES S.A.

Subject: A new agreement with “Frozen District”

Legal basis: Article 17(1) MAR – confidential information.

Content:

The Management Board of Cherrypick Games S.A. (“the Company”) announces that on 31 October 2024 it entered into an agreement with Frozen District sp. z o.o., with its registered office in Krakow (“Frozen District”), the subject of which is to define the terms and conditions of cooperation between the parties regarding the development and release of a video game codenamed Project Q (“the Agreement”)(“the Game”). Pursuant to the Agreement, the Company undertook to develop the Game and Frozen District undertook to cover the costs of its production in accordance with a schedule divided into milestones defining the division of work into individual stages of production of the Game.

The Company shall, on the date of delivery of each milestone, transfer to the Frozen District as part of the paid portion of the Game funding:

1. Copyright in all works created by the Company as a result of the performance of the subject matter of the Contract, production or publishing rights, including the right to title, and related property rights and copyright in works that are independent parts of other works, and,
2. Copyright in all manifestations of the Company’s activity that are not themselves the subject matter of copyright, but created by the Company as a result of the performance of the subject matter of the Contract, upon delivery of the work by the Company to Frozen District in any form.

Pursuant to the Agreement, in addition to the remuneration for the development of the Game, the Company will receive (from its release) a share of the profits from the sale of the Game. The value of the profit share is set out as a percentage in the Agreement and is dependent on the realised reimbursement of Frozen District’s expenditures (the Company’s share of the profit from the Game after repayment of Frozen District’s expenditures will be increased).

The contract is concluded for a fixed period, i.e. from the date of signing of the Agreement by the last party for a period of 5 years.

To the knowledge of the Company’s Management Board, the other provisions of the Agreement do not deviate from the standard terms commonly used for this type of agreement.