Document:

EX-4.38 REAL ESTATE SALE AGREEMENT

 

Exhibit 4.38

Real Estate Sale Agreement

Gravity Co., Ltd. (hereinafter referred to as Gravity) and Yahoh Communication Ltd. (hereinafter
referred to as Yahoh) shall enter into this real estate sale agreement as follows.

Article 1 (Purpose)

This Agreement aims to define necessary terms and conditions under which Gravity shall sell the
real estate specified under Article 3 herein to Yahoh and Yahoh shall purchase it.

Article 2 (Compliance with Applicable Laws)

	 	(1)	 	Both parties shall observe laws relating to this Agreement, and shall fulfill this
Agreement fairly and transparently.
	 
	 	(2)	 	In its fulfillment of this Agreement, Yahoh shall not violate fair trade laws such as
offering money and other forms of bribe and entertainment to Gravity’s staff members.
	 
	 	(3)	 	Yahoh shall reject requests by Gravity’s staff members for foregoing deeds, and shall
immediately report it to Gravity.

Article 3 (Representation of Real Estate)

The target real estate for sale (hereinafter referred to as target property) shall be represented
as follows.

Representation concerning Real Estate

-Building name: Gravity Building

-Location: 619-4 Sinsa-dong, Gangnam-gu, Seoul

-Area of the site: 197.8 pyeong (one pyeong equals to about 3.3 square meters)

-Total floor space: 843.08 pyeong (6 underground levels and 2 stories above ground)

-Usage: business operation, etc.

Article 4 (Payment of Sale Price)

     (1) The sale price shall be 9.5 billion (9,500,000,000) won, and its details shall be as
follows.

- Building: 2.3 billion (2,300,000,000) won

 - Land: 7.2 billion (7,200,000,000) won

          provided that the aforementioned price does not include 230 million (230,000,000) won in
V.A.T. of the building.

     (2) Payment date and amount of the sale price plus the V.A.T. of the building shall be as
follows.

(Unit: won)

	 	 	 	 	 	 	 	 	 
	Description	 	Amount	 	Payment date	 
	Contract price
	 	1 billion (1,000,000,000) won	 	May 22, 2006
	 
	 	 	 	 
	 
	Remaining price
	 	8.73 billion (8,730,000,000) won	 	May 26, 2006
	 
	 	 	 	 
	 
	Total
	 	9.73 billion (9,730,000,000) won	 	 	 	 
	 
	 	 	 	 	 

 

 

Article 5 (Transfer of Ownership)

	 	(1)	 	Upon the receipt of the remaining price, Gravity shall provide documents required for the
registration of the transfer of the target property ownership, and transfer the target
property for Yahoh’s ownership, thus completing all its sale obligations.
	 
	 	(2)	 	Within seven (7) days of its receipt of the documents for the ownership transfer
registration, Yahoh shall complete the ownership transfer registration, and in case any
possible delays in the ownership transfer registration have caused damage to Gravity, Yahoh
shall be liable for such damages sustained.
	 
	 	(3)	 	Costs required for the ownership transfer registration shall be shouldered by Yahoh.

Article 6 (Use of Real Estate and Responsibility for Transfer)

	 	(1)	 	Yahoh shall not occupy nor use the target property before paying the entire sale price.
	 
	 	(2)	 	Revenues such as rental fees accruing from the target property before the payment of
the remaining price shall belong to Gravity, and those after the payment of the remaining
price shall belong to Yahoh.
	 
	 	(3)	 	Gravity shall transfer the target property as it is at the conclusion of this Agreement
to Yahoh.
	 
	 	(4)	 	Yahoh shall be solely responsible for the evacuation and removal of unregistered
buildings, installations and tenants of the target property, and for the recovery of the
target property to its original state.

Article 7 (Tax Allocation)

	 	(1)	 	Unpaid utilities charges and administrative expenses incurred before and after the
ownership transfer shall be borne by Gravity and Yahoh, respectively.
	 
	 	(2)	 	Taxes on the target property notified before and after the evacuation date shall be borne
by Gravity and Yahoh, respectively.

Article 8 (Responsibilities for Faults, etc.)

	 	(1)	 	Since Yahoh shall sign this Agreement after investigating and reviewing the rights,
status and use of the target property, Gravity shall not be held liable for faults in the
public registration books or land register, a difference in structures and quantities caused
by unregistered buildings and others, third parties’ rights over the target property under
the property register, etc.
	 
	 	(2)	 	Gravity shall not be held liable for an impossibility of development and construction
approvals due to administrative regulations and other reasons, and Yahoh shall faithfully
fulfill this Agreement.

Article 9 (Confidentiality)

	 	(1)	 	From the payment of the contract price to the payment of the remaining price, one party
shall not use this Agreement, and borrow the other party’s title or trademark or others, or
do any deed of leaking information or conducting publicity to third parties.
	 
	 	(2)	 	Yahoh shall not use Gravity’s business confidentiality and other information acquired
through this Agreement for purposes other than those herein, and shall not provide or leak
it to third parties. This confidentiality obligation shall continue to be enforced even
after this Agreement ends.

Article 10 (Ban on Assignment of Rights, etc.)

Yahoh shall not allow a third party to fulfill this Agreement without a written agreement of
Gravity, and shall not transfer or provide as security any of its rights and obligations
herein to third parties.

Article 11 (Notice of a Change in the Address)

	 	(1)	 	Yahoh shall immediately notify Gravity in writing of a change in its title, address, and
contacts, as well as a consequential change in its status.
	 
	 	(2)	 	Yahoh shall be held liable for all damages sustained by its non-fulfillment of written

2

 

	 	 	 	notice under Section 1.

	 	(3)	 	In case Gravity has sent a notice (including proof of contents) of its intention to
cancel this Agreement and other matters relating to this Agreement to Yahoh’s address as
noticed (unless a written notice is made otherwise, to Yahoh’s address specified herein), an
expression of its views shall be considered delivered.

Article 12 (Termination)

	 	(1)	 	Despite one party’s request that the other party should correct its violations of this
Agreement, if the other party fails to do so within seven (7) days of such a request, one
party may terminate this Agreement with a written notice.
	 
	 	(2)	 	Notwithstanding the foregoing Section, in case Yahoh has not paid the remaining price
specified under Section 2 of Article 4 herein, Gravity may immediately terminate this
Agreement.
	 
	 	(3)	 	In case this Agreement has been terminated due to the foregoing reason (in case Yahoh has
failed to pay the remaining price specified under Section 2 of Article 4 herein on the due
date), the contract price specified under Section 2 of Article 4 herein shall be regarded as
damages sustained by Gravity due to the termination of this Agreement, and shall finally
belong to Gravity. Likewise, Yahoh shall not claim the return of the contract price from
Gravity.

Article 13 (Liability)

In case one party’s violation of this Agreement has caused damage to the other party, it shall be
held liable for it, provided this shall take exception to damage caused by force majeure such as
natural disasters, war, and riot.

Article 14 (Other Matters)

Matters not specified herein and/or discrepancies that arise from the interpretation of provisions
of this Agreement shall be settled through mutual agreement, but otherwise, they shall follow
related laws and business customs.

Article 15 (Special Agreement)

	 	(1)	 	Notwithstanding Article 8 herein, Gravity shall remove the mortgage established on June
2, 2000 by Kid’s College Co. on the target property by the Yahoh’s payment date for the
remaining price.
	 
	 	(2)	 	If the foregoing mortgage by Kid’s College Co. has not been removed by the remaining
price payment date, Yahoh shall pay Gravity the remainder after deducting 150 million
(150,000,000) won from the remaining price.
	 
	 	(3)	 	In case Gravity has removed the entire mortgage by Kid’s College Co. after the payment of
the remaining price (in case Gravity has prepared documents required for removing the
mortgage and provided them to Yahoh, Yahoh shall positively cooperate in removing the
mortgage). Yahoh shall pay Gravity the 150 million (150,000,000) won within five (5) days of
Gravity’s requested date.
	 
	 	(4)	 	One billion (1,000,000,000) won paid as a deposit on May 8, 2006 shall constitute a
portion of the contract price on the date of signing this Agreement.

3

 

Article 16 (Competent Court)

The competent court with regard to lawsuits concerning this Agreement shall be a regional branch
of Seoul Central Court.

Both parties shall execute two original copies of this Agreement, and each party shall keep one
copy thereof.

	 	 	 	 	 
	 	 	May 22, 2006
	 
	 	 	II Young Ryu
	 	 	Chairman and Chief Executive Officer
	 	 	Gravity Co., Ltd.
	 	 	14th floor, Meritz Tower, 825-2 Yeoksam-dong,
	 	 	Gangnam-gu, Seoul
	 
	 	 	 	 
	 	 	Doo-hyun Yang
	 	 	Chairman and Chief Executive Officer
	 
	 	 	 	 
	 

	 	 	 	Yahoh Communication Ltd.
	 

	 	 	 	Room 1014, World Meridian Venture Center,
	 

	 	 	 	60-24 Gasan-dong, Geumcheon-gu, Seoul

4EX-4.39 GLOBAL PUBLISHING AGREEMENT

 

Exhibit 4.39

Global Publishing Agreement

     Gravity Co., Ltd. (hereinafter referred to as Gravity) and Ndoors Corporation
(hereinafter referred to as Ndoors) shall enter into this Agreement as follows concerning the MMORG
titled Time N Tales (hereinafter referred to as the game) to be developed by Ndoors, and shall
faithfully fulfill it.

Article 1 [Purpose]

     Under this Agreement, in the changing game market, both parties shall use Gravity’s funds,
expertise on game publishing, marketing capabilities and global networks as well as both parties’
capabilities to ensure a successful publishing of the game and long-lasting development of both
parties, and become long-term strategic business partners to create sustainable win-win relations.

Article 2 [Definition of Terminologies]

Terminologies herein shall be defined as follows.

	 	1.	 	Publishing price refers to the price that Gravity pays Ndoors in return for obtaining
the entire rights to the game obtained from Ndoors under this Agreement.
	 
	 	2.	 	The game refers to the game operating based on the MMORPG Time N Tales to be
developed by Ndoors (including updating of the game).
	 
	 	3.	 	Commercialization (or partial pay-based services) refers to the point of time when
Gravity or its designated third party sale-rights holder starts to charge the service fee
to users of the game.
	 
	 	4.	 	Running royalty refers to the price that Gravity pays Ndoors of net sales generated
through the game in accordance with Subsection 2 of Section 1 of Article 8 herein
(Overseas Running Royalty), Section 2 of Article 8 (Sharing of Domestic Sales), and
Section 3 of Article 8 (Sharing of Additional Sales).
	 
	 	5.	 	Overseas running royalty refers to Gravity’s net sales generated through overseas
commercialization of the game.
	 
	 	6.	 	Overseas contract deposit refers to the price that Gravity collects in return for
concluding an agreement to license a third party regarding the game; provided that the
minimum guarantee price, received in the form of an advance deposit, shall be included in
the overseas running royalty.
	 
	 	7.	 	Gross sales refer to total amounts of earnings that Gravity generates and collects
from users or its re-licensed third parties by either directly or indirectly operating the
services of the game, or by supplying or re-licensing the services to third parties, at
home or abroad.

1

 

	 	8.	 	Net sales refer to the amount that remains after deducting all prescribed costs
specified under Section 10 of Article 2 from gross sales specified under Section 7 of
Article 2; provided that net sales are regarded as generated only when any amount remains
after deducting various costs from gross sales.
	 
	 	9.	 	Users refer to all users that have applied to Gravity or its re-licensed third
parties to subscribe to the services of the game, have registered user accounts, and use
the services of the game through establishments providing Internet and multimedia cultural
contents-related equipment, broadband providers, and others.
	 
	 	10.	 	Various costs refer to each of the following costs required in providing the services of
the game to online users.

	 	1)	 	V. A. T.
	 
	 	2)	 	Fees paid to the settlement service agency
	 
	 	3)	 	Costs for any compensation, rewarding and refunds in connection
with sales generated by users, Internet café general agencies and/or agents in
accordance with related laws and regulations, plus costs required for refunding
	 
	 	4)	 	Costs for the exchange of money when currency exchange is
required
	 
	 	5)	 	Costs defined through both parties’ written agreement
	 
	 	6)	 	Withheld taxes on the price of overseas exports; provided that
the amount shall be excluded that shall be deducted concerning overseas paid
taxes under the Corporate Taxation Law in accordance with Taxation Treaties.

	 	11.	 	Marketing refers to domestic and overseas advertising, publicity and events to boost
the sale and service of the game, as well as its brand awareness and users.
	 
	 	12.	 	Overseas sales refer to sales that are generated outside the Republic of Korea and
are the sum of overseas contract deposit and overseas running royalty.
	 
	 	13.	 	Close beta test refers to closed or open pilot service procedures before
commercialization with a view to bug and lag correction, stress test, game balance test,
gathering of user feedbacks and more aimed at improving the quality of the game.
	 
	 	14.	 	Open beta test refers to open pilot services before commercialization (or partial
pay-based services), also to all procedures that are conducted to ensure a successful
commercialization (or partial pay-based services) of the game, such as marketing
strategies and charging methods, in addition to intensive close beta test. This also means
100% completion of localization (language, map, history, items, and events) in the case of
overseas operation.

Article 3 [Duration of the Agreement]

	 	1.	 	This Agreement shall take effect upon its signing, and the duration of this Agreement
shall be as follows.

	 	1)	 	The domestic duration of this Agreement shall be three years from the
commencement of the domestic open beta test of the game (referring to the date

2

 

	 	 	 	that the payment conditions for the intermediate payment specified under Subsection 2
of Section 1 of Article herein are met).
	 
	 	2)	 	The overseas duration of this Agreement shall be three years from Gravity’s
initial export agreement conclusion.

	 	2.	 	Unless there is agreement between both parties concerning the extension of this
Agreement or re-contracting two months prior to the expiration of this Agreement, this
Agreement shall definitely be expired.

Article 4 [Rights Details of this Agreement]

	 	1.	 	Ndoors shall hold the entire intellectual property rights including program
development rights in connection with the game (excluding Gravity’s trademark rights to
the game during the duration of this Agreement).
	 
	 	2.	 	Gravity shall hold exclusive and monopolistic rights to sell, distribute and operate
the game, as well as rights to the services of the game, and to that end, exclusive and
comprehensive business rights (including re-licensing).
	 
	 	3.	 	Gravity shall give prior notice to Ndoors, apply for domestic and overseas patents
relating to the game at its costs (Ndoors shall transfer trademarks under patent
application in relation to the game to Gravity within 14 days of the conclusion of this
Agreement), and hold ownerships over trademarks whose patents have subsequently been
registered. However, upon the ending of this Agreement, Gravity shall transfer such
registered trademarks to Ndoors at the price equivalent to the acquisition cost (proxy
fees, fees paid to the agency, and supplementary costs required for applying for and
registering trademarks), and Ndoors shall take over them.
	 
	 	4.	 	With regard to the marketing of the game, Gravity shall hold exclusive, monopolistic
business rights (including re-licensing rights) to all commercial derivative business such
as Ndoor’s contents including the trademarks and characters of the game, mobile business,
animation business, and character merchandizing business derived from the game across the
world including the Republic of Korea.
	 
	 	5.	 	Gravity shall have preferred negotiation rights to publish Ndoors-developed game
products during the duration of this Agreement.
	 
	 	6.	 	In concluding an agreement with a third party in relation to the game, Gravity shall
notify it to, and consult, with Ndoors.
	 
	 	7.	 	Any rights and duties herein shall not be transferred to, handed over to, or
inherited by a third party without prior written mutual agreement.

Article 5 [Payment of the Publishing Price]

     The total publishing price that Gravity shall pay to Ndoors shall be 2 billion (2,000,000,000,
excluding V. A. T.), and it shall be paid in cash in installments as follows.

	 	1.	 	Domestic Publishing

	 	1)	 	Contract deposit: Ndoors shall issue a tax invoice and provide it to
Gravity within three days of the conclusion of this Agreement, and Gravity shall pay
Ndoors 300

3

 

	 	 	 	million (300,000,000) won within 30 days of the conclusion of this Agreement of the
domestic publishing price.
	 
	 	2)	 	Intermediate payment: At the time when mutual agreement has been reached to
conduct the open beta test of the game, Gravity shall conduct a three-day test and,
as a result, in case Gravity has acknowledged that no fault, error, and/or bug exists
in the game, the open beta test shall be conducted. 300 million (300,000,000) won
shall be paid within seven days of the commencement of the open beta test.
	 
	 	3)	 	Although the intermediate payment conditions specified under Subsection 2
of Section 1 of Article 5 herein are not met, the payment shall be made within seven
days of the point when a seven-day average maximum over 10,000 people have
simultaneously accessed the close beta test operation.
	 
	 	4)	 	Remaining price: 400 million (400,000,000) won shall be paid within seven
days of when the settlement gross amount has exceeded 300 million won or 600 million
won 30 days or 60 days, respectively, after the commencement of the commercialization
of the game, when a seven-day average maximum over 20,000 people have simultaneously
accessed the services of the game, or when the gross settlement amount based on the
cumulative sales has exceeded 3 billion won.

	 	2.	 	Overseas Publishing

	 	1)	 	Contract deposit: Ndoors shall issue a tax invoice to Gravity within three
days of the conclusion of this Agreement, and Gravity shall pay Ndoors the overseas
publishing price of 300 million (300,000,000) won within 30 days of the conclusion of
this Agreement.
	 
	 	2)	 	Intermediate payment: The payment shall in principle be made in two
installments; when the open beta service has started in one country (after 100%
localization of language, map, history, items, event and more), 200 million
(200,000,000) won shall be paid, and when the open beta service has started in
another country, 200 million (200,000,000) won shall be paid.
	 
	 	3)	 	Remaining price: 300 million (300,000,000) won shall be paid when the game
has been commercialized in two foreign countries, or when the open beta service has
started in three foreign countries.
	 
	 	4)	 	The overseas sale of the game shall begin when a seven-day average maximum
over 10,000 people have simultaneously accessed the domestic services of the game;
provided that the criteria may be adjusted in case Ndoors has requested such
adjustment due to justifiable reasons and Gravity has agreed to it.

Article 6 [Guarantee of the Fulfillment of Agreement]

	 	1.	 	In case Ndoors’ core development personnel (Vice President Kim Tae-gon, Team Leader
Chung Jong-pil, Team Leader Lee Jae-hyung, and Team Leader Shin Gwan-yong) have failed to
performed this project of the game or have resigned from the

4

 

	 	 	 	company within one year of the conclusion of this Agreement, Gravity may request the
termination of this Agreement. Likewise, this Agreement shall be regarded as terminated
due to reasons attributable to Ndoors.
	 
	 	2.	 	Ndoors shall not undertake to develop more than three new game titles including
MMORPG in the same genre within one year of the conclusion of this Agreement, and shall do
its best to succeed in commercializing the online services of Time N Tales. However, game
titles that had been developing prior to the conclusion of this Agreement shall not be
bound by Article 6 herein.

Article 7 [Establishment and Management of Receiving Bank Accounts]

	 	1.	 	To manage sales money on the game collected from domestic and overseas customers,
Gravity shall open domestic receiving bank accounts and overseas receiving bank accounts
in its name (hereinafter referred to as receiving accounts), and Ndoors shall hold rights
to request to access the receiving accounts three business days in advance and access
them.
	 
	 	2.	 	Gravity shall settle losses and profits at the end of every month, submit in writing
to Noors gross sales, various costs, and net sales data, as well as copies of receiving
accounts. Likewise, in the case of overseas contract deposit and running royalty, Gravity
shall pay Ndoors the latter’s earnings share by the 20th of the month after the
month when the money is received. However, the payment date may be changed through mutual
written agreement.

Article 8 [Sharing of Earnings]

	 	1.	 	Sharing of Overseas Sales

	 	1)	 	Sharing of Overseas Contract Deposit
	 
	 	 	 	Regarding the overseas contract deposit, the amount after deducing various costs from the
amount actually collected by Gravity shall be shared at the ratio of 60% for Gravity and
40% for Ndoors.
	 
	 	2)	 	Sharing of Overseas Running Royalty
	 
	 	 	 	Regarding the overseas net sales, the amount collected by Gravity shall be shared at the ratio
of 50% for Gravity and 50% for Ndoors.

	 	2.	 	Sharing of Domestic Sales

	 	1)	 	Regarding the domestic net sales, the amount actually collected by Gravity
shall be shared at the ratio of 50% for Gravity and 50% for Ndoors (excluding sales
from Internet cafes).
	 
	 	2)	 	The amount after deducting V. A. T., billing fees, and fees for Internet café
general agencies from the domestic gross sales of Internet cafes shall be shared at the
ratio of 50% for Gravity and 50% for Ndoors.

	 	3.	 	Sharing of Additional Sales
	 
	 	 	 	Net sales after deducting various costs from sales accruing from character / mobile
game / supplementary business (guidebook, cartoons, animations, game music, etc.)

5

 

	 	 	 	licensing shall be shared at the ratio of 50% for Gravity and 50% for Ndoors.

	 	4.	 	Each amount specified under Article 8 shall be the amount excluding V. A. T., and in
the case of foreign currency, remittance fees shall be shouldered by the party who
receives such remittances.
	 
	 	5.	 	In case billing and security solutions have been procured from third parties,
corresponding costs shall be shouldered at the ratio of 50% for Gravity and Ndoors each.

Article 9 [Duty and Rights of Gravity]

	 	1.	 	Inspect the game that has been manufactured by Ndoors and provided to Gravity
	 
	 	2.	 	Provide development consulting for successful commercialization
	 
	 	3.	 	Draft gross sales, various costs, and net sales data
	 
	 	4.	 	Ensure transparent management of sales accounts
	 
	 	5.	 	Conduct good-faith, positive overseas marketing and sales activities
	 
	 	6.	 	Ensure smooth game service operation and management
	 
	 	7.	 	Operate servers, Web, and GM tools
	 
	 	8.	 	Consult with Ndoors when determining marketing and the profitability structure of the
game
	 
	 	9.	 	In its all game services, Web services, promotion and others in relation with the
game developed by Ndoors, Gravity shall mark its publishing license, and the following
Ndoors’ copyright with possible contents simplification and amendment of the year.
© 2005 NDOORS Corp. All rights reserved. Published by Gravity Co., Ltd.
	 
	 	10.	 	Finally determine marketing conditions such as member subscription and events in
connection with the close beta test, open beta test and commercialization of the game

Article 10 [Duty and Rights of Ndoors]

	 	1.	 	Ndoors shall develop the game based on the good-faith principle in accordance with
Development Plan (attachment 1), Development Schedule (Attachment 2), and Development
Personnel’ Profiles/Job Description (Attachment 3) that Ndoors has provided to Gravity.
However, in case Ndoors sees a need to adjust the development content and development
schedule, it shall have full negotiation with Gravity and then proceed with the work after
mutual written agreement.
	 
	 	2.	 	Development plans coming after the Development Schedule (Attachment 2) submitted to
Gravity shall be submitted to Gravity in writing at least one month in advance, and shall
be implemented after mutual written agreement.
	 
	 	3.	 	In case Gravity has requested, matters deemed to be necessary for the successful
commercialization (or partial pay-based services) of the game shall be amended and
accepted through mutual agreement.
	 
	 	4.	 	In operating the game, technical problems in the development (bug, lag, hacking,
program errors, certain support for updating, support for overseas localization, domestic
and overseas technical support, etc.) shall be immediately resolved under

6

 

	 	 	 	the responsibility of Ndoors and at Ndoors’ costs.
	 
	 	5.	 	Ndoors shall handle customers’ requests in the shortest possible time that have been
received by Gravity and notified to Ndoors while operating the services, and shall
immediately notify corresponding results to Gravity. The handling criteria of 08/24/48
principle shall be observed (notify the confirmation of the receipt of a request within 8
hours of the receipt thereof, come up with and notify solutions within 24 hours of the
receipt thereof, and complete their application and resolve it within 48 hours of the
receipt thereof). However, if a long period of time is required to handle a customer
request, Ndoors shall notify it to Gravity within 24 hours of the receipt thereof.
	 
	 	6.	 	Ndoors shall provide Gravity with the entire information necessary for publishing the
game by the time when Gravity has requested it to be provided.
	 
	 	7.	 	Gravity shall own the data of members of the services that it has obtained through
its marketing activities during the duration of this Agreement, shall share it with Ndoors
when this Agreement ends or when Ndoors has requested to do so, and shall specify this
fact in its service agreement for joining members.
	 
	 	8.	 	Ndoors may request that Gravity provide marketing plans and schedule to ensure
successful publishing of the game.
	 
	 	9.	 	Ndoors shall immediately provide related data and materials for the services when
Gravity has requested to do so.
	 
	 	10.	 	The development of the game shall be conducted solely under the responsibility of
Ndoors, and at Ndoors’ costs, and Gravity shall not shoulder any game development costs
nor take responsibility for the game development except that it shall pay Ndoors the
publishing price.

Article 11 [Limited Use of the Price]

Ndoors shall limit the use of the price paid by Gravity to costs required for completing a
successful development o the game (including updating and follow-up works), and shall not use it
for providing it to a third party as security or for repaying its debts, and for other purposes.

Article 12 [Request to Correct Violations of Agreement]

In case either party has violated this Agreement, the non-defaulting party may make a written
request to the defaulting party to correct such violations with the provision of a 7 business-day
period. Likewise, the defaulting party shall, upon receiving such a request, correct violations,
and notify the non-defaulting party of the fact within seven business days of the receipt thereof
that it has taken corrective action.

Article 13 [Termination of Agreement]

	 	1.	 	‘Under each of the following circumstances, the non-defaulting party may terminate
this Agreement without notifying to the defaulting party.
	 
	 	 	 	1) In case either party has failed to fulfill his duties herein due to reasons
attributable to himself, and has failed to correct himself within seven business days of
the receipt of a

7

 

	 	 	 	corrective request made by the non-defaulting party in accordance with Article 12,
	 
	 	 	 	2) In case either party faces the commencement of payment suspension, liquidation,
composition, reorganization, and bankruptcy procedures, or similar situations,
	 
	 	 	 	3) In case a decision such as provisional attachment, provisional disposition, attachment,
auction and bidding has been made against either party’s consequential properties
necessary for fulfilling this Agreement, thus making it impossible to fulfill this
Agreement, and
	 
	 	 	 	4) In case either party has received this Agreement-related business suspension,
cancellation of business approvals, criminal punishment, and other impositions from
related supervisory authorities, thus making it impossible to fulfill this Agreement.
	 
	 	2.	 	The termination action following each violation of this Agreement shall take effect
on the date that a written termination is sent, and except reasons specified under Section
1 of Article 13, both parties may terminate this Agreement through mutual written
agreement. The termination of this Agreement by written agreement shall take effect upon
such a written agreement.

Article 14 [Liability for Damages]

	 	1.	 	In case this Agreement has been terminated due to reasons attributable to Gravity,
unless Ndoors proves damages otherwise, Gravity shall provide the following compensatory
damages to Ndoors.
	 
	 	 	 	1) In case this Agreement has been terminated prior to the domestic commercialization (or
partial pay-based services) of the game, the amount equivalent to the publishing price
paid under Article 5 to Ndoors by Gravity by the termination shall be acknowledged as the
maximum damages for Ndoors, and Gravity shall not request the return of the price from
Ndoors.
	 
	 	2.	 	In case this Agreement has been terminated due to reasons attributable to Ndoors,
unless Gravity proves damages otherwise, Ndoors shall provide the following compensatory
damages to Gravity.
	 
	 	 	 	1) In case this Agreement has been terminated prior to the domestic commercialization of
the game, Ndoors shall pay Gravity double the total money received from Gravity within
seven business days of the effect of the termination of this Agreement.
	 
	 	 	 	2) In case this Agreement has been terminated or damages have been caused to Gravity for
reasons specified under Section 2 of Article 15, Ndoors shall compensate Gravity for such
damages within seven business days of Gravity’s claim for damages, apart from compensatory
damages under Subsection 1 of Section 2 of Article 14.

Article 15 [Resolution of Disputes with Third Parties]

	 	1.	 	In case legal disputes have arisen in connection with the game for reasons attributable
to either party, each party shall resolve this under his responsibility and at his costs.
	 
	 	2.	 	In case disputes have been triggered by a third party concerning the game because of
intellectual property rights infringements such as similarity of the game, plagiarism,
patent

8

 

	 	 	 	infringement, and copyright infringement, Ndoors shall resolve this under his responsibility
and at his costs, and Gravity shall be indemnified from it.

Article 16 [Force Majeure]

Neither party shall be held liable to the other party for the non-fulfillment or delayed
fulfillment of this Agreement because of war, commotion, flooding, earthquake, government measures,
and other force majeure reasons.

Article 17 [Confidentiality]

	 	1.	 	Either party shall keep confidential the other party’s technical and business
information and data provided by the other party or acquired from the latter in connection
with this Agreement, and shall not divulge it to third parties without written agreement
of the other party.
	 
	 	2.	 	This provision shall be enforced for three years even after this Agreement expires or
is terminated.

Article 18 [Enforcement and Amendment of Agreement]

	 	1.	 	This Agreement shall take effect on the mutual signing date.
	 
	 	2.	 	This Agreement shall be amended and changed only through mutual written agreement.

Article 19 [Duty of Good Faith and Cooperation]

Both parties shall fulfill this Agreement with good faith and integrity, and shall positively
cooperate with each other to facilitate work during the duration of this Agreement.

Article 20 [Interpretation of Agreement]

Any discrepancy in the interpretation of this Agreement shall be resolved through mutual written
agreement, and otherwise, it shall follow related laws and business customs.

Article 21 [Competent Court]

In case discrepancy or disputes have arisen from this Agreement or in connection with mutual
fulfillment of this Agreement, both parties shall endeavor to smoothly resolve this, and otherwise,
they shall resolve it through the competent court having jurisdiction over Gravity’s headquarters
location as the first-trial court.

Article 22 [Others]

	 	1.	 	Matters not specified herein shall follow general business customs.
	 
	 	2.	 	Matters relating to all discussions, agreements, endorsements, notices, reports,
forwarding, claims, payment and more in connection with this Agreement shall be put in
writing.
	 
	 	3.	 	Ndoors shall select one projector manager with the grade above a team leader in
development, marketing, and operation each, and shall cooperate with Gravity in

9

 

	 	 	 	pushing ahead with work to the full.

IN WITNESS WHEREOF, both parties shall execute two original copies of this Agreement, and each
party shall keep one copy thereof.

November 7, 2005

	 	 	 
	Ryu Il-young

	 	Kim Hwa-su
	Chairman and CEO

	 	CEO
	Gravity Co., Ltd., Singu Building,

	 	Ndoors Corporation,
	620-2 Sinsa-dong, Gangnam-gu, Seoul

	 	12th floor, Won Building, #648-26 Yeoksam-dong, Gangnam-gu, Seoul

# Attachment 1 : Development Plan

# Attachment 2 : Development Schedule

# Attachment 3 : Development Manpower Schedule / Job Description

# # Attached documents for the conclusion of this Agreement: Certificate of business registration
/ Transcript of Corporate Register / List of Shareholders / Financial Statements

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]