The Management Board of Cherrypick Games S.A. (the “Company”, “Issuer”) announces that on 18 March 2019, it entered into an exclusive licence agreement (the “Agreement”) with a foreign partner (the “Licensee”) to publish, market and sell the Issuer’s 4 pre-2017 released games (the “Games”) on a dedicated platform developed by the Licensee (the “Platform”) in accordance with the terms of the Agreement.

The Issuer has agreed to cooperate with the Licensee in ensuring the proper operation of the Games on the platforms and devices on which the Games will be available and sold under the licence granted. Pursuant to the Agreement, the Company grants the Licensee an exclusive, sublicensable, worldwide licence to, inter alia, use, modify, reproduce, distribute and distribute the Games. The indicated activities will be performed for the sole purpose of publishing, marketing and selling the Games. The agreement does not grant the Licensee any ownership rights to the Games. In the event that the Games are modified by the Licensee or a third party acting on behalf of the Licensee, the Issuer obtains ownership rights to such modifications. The Issuer has agreed not to make modifications or new versions of the Games public directly or indirectly through a third party.

The costs of marketing, selling and publishing the Games on the Platform will be borne by the Licensee. The consideration to the Issuer for the licence will be a total of USD 110,000 net. Pursuant to the agreement, the amount of USD 86,000 will be deposited in an escrow account within 10 days of signing the agreement and will be transferred to the Issuer within 60 days after the Issuer fulfils the technical terms of the Games. The amount of US$24,000 will be transferred to the Issuer in 24 monthly payments.

The Agreement is concluded for 10 years and will be automatically renewed for another 10 years unless one of the parties to the Agreement notifies the other of its intention to terminate the Agreement at least 60 days before the expiry date. The Licensee is entitled to terminate the Agreement with 60 days’ notice upon the expiry of the initial period of cooperation between the parties as indicated in the Agreement, while the Issuer is entitled to terminate the Agreement with 60 days’ notice upon the expiry of the first 10-year term of the Agreement.

In addition, the Contract may be terminated by either party if the other party is in serious breach of its obligations under the Contract, unless the breach is remedied by the defaulting party within 60 days. The Contract does not provide for contractual penalties.