The Management Board of Cherrypick Games S.A. (the “Company”), with reference to ESPI Current Report No. 11/2020, published on 18 August 2020, regarding the receipt of the award of the Helsinki Arbitration Court regarding the dispute with Kuu Hubb Oy (“Kuu Hubb”), announces that on 6 October 2020, a settlement agreement between the Company and Kuu Hubb regarding the repayment of receivables arising from the sale of the rights to the game My Hospital (the “Settlement”) was deemed to have been concluded.

Under the terms of the Settlement Agreement, Kuu Hubb agreed to make a transfer to the Company :

1. The amount of EUR 750,000 by 6 October 2020 as payment of the principal amount of the obligation, resulting from the payment of monthly instalments for the months of April 2019 to November 2019, except that the instalment for the month of November 2019 will be EUR 50,000. The payment will be made to the bank account of the Finnish law firm servicing the Company, the Company will announce the crediting of the aforementioned amount to the bank account by a separate ESPI current report,

2. The amount of €250,000 by 15 November 2020 as payment of the principal of the obligation, resulting from the payment of monthly instalments for the months of November 2019 to January 2020, except that the instalment for the month of November 2019 will be €50,000. The payment will be made directly to the Company’s bank account,

3. All remaining amounts arising from the principal and interest due by 15 December 2020 to the Company’s bank account, viz.

a) the sum of €600,000 for the payment of the principal of the obligation, resulting from the payment of monthly instalments for the months of February 2020 to July 2020,

b) the amount of €297,984 for the reimbursement of legal costs incurred by the Company,

c) the amount of €40,776 for the reimbursement of administrative fees and arbitrator’s fees incurred by the Company,

d) interest on arrears accrued on the monthly instalments of the purchase price which fell due between April 2019 and November 2019 up to the date of payment of the first instalment referred to in point 1,

e) interest on arrears accrued on the monthly instalments of the purchase price falling due between November 2019 and January 2020 until the payment of the second instalment referred to in point 2,

f) the default interest accrued on the monthly instalments of the purchase price that fell due between February 2020 and July 2020 until the payment of the third instalment referred to in point 3,

g) the interest on arrears (currently 7%) accrued on the costs described in points 3(b) and 3(c) from 17 September 2020 until the date of payment of the third instalment referred to in point 3.

The total amount of the third instalment will be €1,059,707 provided Kuu Hubb makes timely payments of all instalments described above.

The Company has agreed to refrain from pursuing the full amount of the claim subject to Kuu Hubb’s compliance with the above repayment schedule. However, in the event that any of the instalments are not paid in full, the Company may demand a single payment of all amounts described above. If the demand is not complied with within 30 days from the date of the demand, the Company will have the right to enforce the full amount of the liability at its discretion.

Pursuant to the settlement agreement, in order to settle all claims and receivables under the My Hospital game rights sale agreement (ESPI current report no. 4/2018 of 2 May 2018), Kuu Hubb is obliged to pay the amount of EUR 550,000 by 31 May 2021 to the Company’s bank account. If Kuu Hubb fails to make timely payment of the above amount, the Company will be entitled to demand payment of all unpaid amounts of the obligation, and if the demand is not fulfilled within 30 days from the date of the demand, KuuHubb has agreed to pay to the Company a contractual penalty of EUR 300,000 At the same time, the Company will transfer, and KuuHubb will assume, the development and maintenance costs of the MyHospital game as set out below:

a) The Company will transfer to Kuu Hubb, among other things, the source codes and archives of the game described in detail in the Annex to the Settlement Agreement,

b) The Company will provide technical support for the game’s source code until 31 October 2020. (“Transition Period”),

c) Kuu Hubb will be empowered to integrate the game into new platforms to attract more users,

d) At the end of the Transition Period, all obligations of the Company relating to the development and maintenance of the game will cease.