Agreement - GRAVITY Co. Ltd. and Myoung-Jin Lee
AGREEMENT
GRAVITY Co., Ltd. and Myoung-Jin Lee hereby agree to amend the royalty payment
specified in the Agreement on Ragnarok Game Services and Related Matters, which
was entered into by both parties on January 22, 2003 and remains effective
to-date.
1. Other than the amendment on the royalty rates as provided herein, all terms
and conditions of the Agreement on the Ragnarok Game Services and Related
Matters dated January 22, 2003 shall remain in force and effect without
modification.
2. Neither party shall disclose to a third party provisions hereof without
written consent of the other party.
3. The amendment shall be effective retroactive to January 2004.
ROYALTY RATE AMENDMENT
Description Before After Base of Royalty
----------- ------ ----- ---------------
Domestic Ragnarok Royalty 1.50% 1.50% Net Sales
Other domestic royalties Stamp cost on attack version, 10.00% 10.00% Net Profit
etc.
Other domestic contract Character contract 10.00% 5.00% Net Profit
amounts
Domestic product sales Character products 10.00% 10.00% Net Profit
Overseas Ragnarok royalty Royalty 1.50% 1.50% Net Sales
Overseas Ragnarok royalty New contracts 1.50% 1.00% Net Sales
contract amounts Extended contracts 1.50% 0.00% -
Overseas product sales Character products 10.00% 10.00% Net Profit
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Other overseas contract amount Merchandising contracts 10.00% 2.50% Net Profit
Character contracts 10.00% 2.50% Net Profit
Animation 10.00% 0.00% -
PC games and mobile games 5.00% 5.00% Net Profit
Others Others 10.00% 2.50% Net Profit
* Net Sales: Total sales - all expenses (VAT, fees payable to payment service
providers and fees payable to Internet cafes)
* Net Profit: the amount referred to as net income in the profit and loss
statement for the current term, as calculated after deducting direct
expenses, indirect expenses and taxes.
SETTLEMENT PERIOD
Description Before Change After Change Remarks
----------- ------------- ------------ -------
Domestic and overseas royalties Monthly settlement Monthly settlement No change
Contract amounts and other sales Monthly settlement Quarterly settlement
EXPENSE CALCULATION BASIS
Description Before Change After Change Remarks
----------- ------------- ------------ -------
Contract amounts and sales Estimated expenses Cumulative sales
(30%)
October 27, 2004
/seal/
Representative Director: Richard Hyonkook Kim
6th Floor, Shingu Building, 620-2, Shinsa-dong, Gangnam-gu, Seoul
GRAVITY Co., Ltd.
/s/ Myoung-Jin Lee
Myoung-Jin Lee (******-*******)
Yonsei Heightsville No. 302, 501-24, Changcheon-dong, Seodaemun-gu, Seoul