Suspension, Compliance Notifications and Dormancy Status

Introductory

In this section, the rules and regulations pertaining suspension, compliance notifications and dormancy status are discussed.

In this section, the rules and regulations pertaining suspension, compliance notifications and dormancy status are discussed.

Pending breaches of Compliance, CEG has the option to in part or in full suspend the Operation for a limited period of time or indefinitely (termination). CEG may opt to combine such Suspension with a warning to relevant partners in the Gaming Industry.

More on suspension and mandatory notifications

CEG may, free from any liabilities, Suspend any Seals in connection with the Operator or any other Seals of Websites in connection within the Concern that the Operator belongs to, such as however not limited to Subsidiaries, resulting in the Website going offline, as early as ten (10) Business Days after the Operator has been notified by CEG, that it:

(i) has failed to timely pay its Service Package Fees and is ten (10) Business Days or more overdue after having received notification of CEG;

(ii) has not properly and timely reacted to requests for Key Information, such as however not limited to technical or financial information as well as any Non-Personal Data that CEG deems relevant.

In the event a Suspension is executed, CEG shall inform the Operator the moment that the Suspension has been executed as well as the moment that the Suspension has been lifted. CEG shall provide the Operator with a last notification that it has the intention to Suspend, at least two (2) Business Days prior to execution of the Suspension.

Notwithstanding anything to the contrary as referenced in this section, CEG may Suspend at any time with immediate effect, without the requirement to notify or observance of any notice period, free from any liabilities, in the event that:

(a) the Operator has been liquidated or adjudicated bankrupt or has been granted a moratorium of payments against its creditors;

(b) a Change of Control takes place that has not been notified to CEG within two (2) Business Days;

(c) any Key Individual is indicted or convicted of any criminal offense or has been indicted or convicted in the past, not exceeding a statutory limit of ten (10) years prior to the undersigning of the Agreement, including failure to disclose such events at the time Parties entered into the Agreement;

(d) a Material Breach transpires that has remained unreported;

(e) the Operator is not represented by a board of directors, or management is unauthorized or unlicensed;

(f) any breaches pertaining to the holding of multiple Grants;

(g) manipulation of any kind of the Seal;

(h) manipulation of any kind of the Terms of Service;

(i) the Operator has committed any kind of fraud towards CEG or any Third Party, including End Users;

(j) the Operator has not rendered B2C Services for 90 (ninety) consecutive Calendar Days without registering for Dormancy Status.

Penalties

If it is established that the Operator or any of its Key Individuals have willingly, deliberately been involved in the manipulation, CEG may, per individual event, impose a penalty to the Operator, immediately collectable, of ten thousand (€ 10,000) euro, notwithstanding the right of CEG to claim compensation for damages caused.

Compliance Notification

Within two (2) Business Days after the Suspension has commenced, CEG shall have the obligation to send out a Compliance Notification to the Gaming Industry. Furthermore, CEG may opt to add the Compliance Notification to a Public Record, combined with additional information regarding the Compliance Notification. The Compliance Notification shall include:

(a) the reason for Suspension;

(b) a qualification of the gravity of the reason to Suspend;

(c) information on any imposed penalties; as well as

(d) information of the Key Individuals of the Operator and the Concern it belongs to.

The information may include, however is not limited to, referrals to public information of the Key Individual, his connection to the Operator and, or Concern, involvement of the Key Individual in the cause of the events that have led to the Suspension, as well as contact details.

Once CEG has sent out the Compliance Notification, it is required to keep the Gaming Industry updated by sending out another Compliance Notification if the status of the Suspension has changed, explaining the reason for such change, adding such notification to the Public Record.

Voluntary Suspension and Dormancy

The Operator who wishes to temporarily suspend its activities on a voluntary basis, may register with CEG for Dormancy Status. During this time, the Operator shall be allowed to retain its structure and leave its agreements with Third Parties intact, as if its status would not be dormant, provided the respective Third Parties shall allow a period of such dormancy. Application for Dormancy Status does not result in any refund of fees already paid or due.

The Operator may retain its Dormancy Status up to the end of the fourth Quarter after the Calendar Day on which it applied for Dormancy Status, after which it may opt to request to lift voluntary Suspension. Failure to do so, shall lead to Termination, provided that the Operator has given timely notice. In the event the Operator enters into Dormancy Status, the Operator shall send out a Compliance Notification, stating that the Grant of the Operator has been suspended on a voluntary basis in connection with dormancy of the Operation. The Operator shall not be granted Dormancy Status if it has not paid the fee for application for Dormancy Status in full.

Material Breach

Any Suspension in accordance with this Article shall be deemed a Material Breach for the purpose of the IP Agreement. The Operator that has not rendered B2C Services for 90 (ninety) consecutive Calendar Days and has furthermore not applied for Dormancy Status, shall be in Material Breach.