These terms of EGGRYPTO token sale (hereinafter “Terms”) provide the matters that the purchaser of monsters (hereinafter “Purchaser” and “Monsters” respectively) used in EGGRYPTO (hereinafter “Game”) which is a blockchain game developed by Kyuzan Inc. (hereinafter “Company” or “we”) must observe when purchasing Monsters, and the rights and obligations of the Company and the Purchaser. Please make sure to read the full text of the Terms before you agree to the Terms and purchase Monsters.

Article 1 Purpose

The Terms are intended to stipulate the relationship between the Purchaser and the Company in terms of the rights

and obligations related to the conditions for purchase and assignment of Monsters that the Purchaser plans to usein the Game.

Article 2 Definitions

For the purpose of the Terms, the terms used herein shall have the meanings defined below.

(1) “ETH” means Ethereum, which is a crypto asset (or virtual currency; the same shall apply hereafter), or a unit thereof.

(2) “Address” means the account (including but not limited to Wallet) for management or storage of ETH or other crypto assets.

(3) “Standard ETH rate” means the exchange rate between ETH and Japanese yen in the market we specify, as of 12:00 a.m. of the previous day of the date when the assignment of Monsters is started based on the Contract.

(4) “Receiving address” means the address that the Purchaser holds in order to receive the Monsters from us and informs us of in the manner we prescribe.

(5) “Sending address” means the address that the Purchaser uses to send us ETH as compensation for the Monsters and informs us of in the manner we prescribe.

(6) “Our address” means the address used to receive ETH from the Purchaser as compensation for Monsters, and of which we will inform the Purchaser.

(7) “Our website” means the website with the domain name of “eggrypto.com” (including the website after the change of the domain name or the contents of our website for whatever reason), which is operated by us.

(8) “Token sale period” means the period that we specify as the assignment period of Monsters, etc.

(9) “Return address” means the address that we use to return to the Purchaser the ETH received from the Purchaser for whatever reason, of which the Purchaser informs us in the manner we prescribe.

Article 3 Details on Monsters

Monsters are intended for use in the Game by the Purchaser, and details including their use in the Game shall be specified by us separately.

Article 4 Obligations of the Company

Our obligations based on the Contract are to make certain records on blockchain and to make efforts to provide the Game in relation to the assignment of Monsters to the Purchaser, in other words, the Purchaser’s possession of Monsters. We have no obligations other than the above. Moreover, nor do we grant the ownership, equity, stock,2 right to earn certain revenue or similar rights, intellectual property rights, or any other rights of the Company to the Purchaser, except the assignment of Monsters.

Article 5 Conclusion of the Contract and Assignment of Monsters

1. The Purchaser shall prepare and keep the receiving address, return address, and sending address for Monsters at their own expense and responsibility when the Purchaser applies to purchase Monsters.

2. When the Purchaser applies to purchase Monsters, the Purchaser shall inform us of the information we specify with regard to the Monsters that the Purchaser desires to purchase in the manner that we prescribe, and a contract regarding the assignment of the Monsters based on the Terms (hereinafter “Contract”) shall be concluded when we accept the application.

3. After the conclusion of the Contract, the Purchaser shall send us the number of ETH that we specify as compensation for Monsters in the manner that we specify by the date set separately by us. The cost incurred for the sending of the ETH shall be borne by the Purchaser.

4. When the ETH is sent to us as specified in the preceding section, we will send the Monsters that the Purchaser purchases to the Purchaser’s receiving address, subject to the preconditions specified in the following article.

5. Since it may take a certain period of time to assign Monsters for system reasons, the assignment of Monsters based on the preceding section shall be performed within three (3) months from the end of the token sale period at our sole discretion.

6. If the Purchaser is a minor, an adult ward, a person under conservatorship, or a person under limited guardianship, the Purchaser shall obtain the consent of their legal representative, conservator, or guardian in applying for the purchase of Monsters.

Article 6 Preconditions for Assignment of Monsters

The assignment of Monsters prescribed in Section 4 of the preceding article shall be subject to the fulfillment of all of the following conditions, unless we give up the fulfillment of conditions in writing.

(1) We have decided to assign Monsters to the Purchaser.

(2) The Purchaser’s representation and warranty in Article 8 and the information and documents provided to us by the Purchaser in relation to the Contract are correct and contain the facts necessary to avoid misunderstanding at the time when we decide to assign Monsters based on Section 4 of the preceding article.

(3) The Purchaser has understood and accepted the risks specified in Article 9.

(4) Other than the conditions specified in the preceding items, the Purchaser shall not be in breach of the Terms.

Article 7 Security

1. The Purchaser shall prepare and maintain the equipment required in relation to the Contract—including computer, software, or other devices, communication lines, or other elements of the communication environment—at their own expense and responsibility.

2. Regarding the management of the address and the Monsters, the Purchaser shall take security measures such as the prevention of computer viruses, illegal access, and information leakage, at their own expense and responsibility.

Article 8 Representation and Warranty

The Purchaser shall represent and warrant to us that the following facts are true as of the date of the Contract.

(1) The Purchaser has read and fully understood the whole of the Terms (including the rules and regulations on Monsters and the Game, which are on our website).

(2) The Purchaser has full authority to conclude the Contract and to fulfill the obligations in accordance with the Contract, has performed all procedures required for the conclusion of the Contract in accordance with all applicable laws and regulations, has completed all procedures necessary for permissions and reports, and is not in breach of any conditions, if such conditions exist. The Contract constitutes the lawful, valid, and enforceable obligations of the Purchaser, and may enforce compulsory execution toward the Purchaser based on the provisions thereof.

(3) The Purchaser decided to conclude the Contract after obtaining sufficient information on Monsters.

(4) The Purchaser purchases Monsters for the purpose of playing the Game to be developed hereafter.

(5) The Purchaser understands that the purchase of Monsters only means that Monsters are assigned to the Purchaser, and no rights to us or our affiliated companies are granted to the Purchaser as a result of the purchase of Monsters.

(6) The Purchaser is not a citizen, inhabitant, resident, or sojourner of a country or region where the purchase of Monsters is prohibited, restricted, or otherwise controlled by laws and regulations.

Article 9 Risks

The Purchaser shall confirm with us the risks related to the purchase of Monsters specified below and accept such risks.

(1) Price fluctuation risk

The price of Monsters may be affected by our performance, the success or failure of our business plan, commodity prices, trends of other markets such as the foreign exchange market or the stock market, natural disasters, war, political change, tightening of regulations, the popularization of another similar game, or other unexpected or special circumstances.

(2) Our Contractual Obligations

Our obligations based on the Contract are limited to the assignment of Monsters to the Purchaser in accordance with the provisions of the Contract, and we do not guarantee that the development, operation, and popularization of the Game or our business plan will proceed according to plan.

(3) Risks related to the progress of the business plan

Though we shall endeavor to proceed with the development and operation of the Game in accordance with the business plan, it may not proceed as expected.

(4) Information uncertainty

Though we may provide some information related to Monsters on our website or social networking site, the information is provided on a planned basis and we do not guarantee its authenticity, accuracy, or feasibility.

(5) Risks inherent in Monsters

Since Monsters are not legal currency, their value is not guaranteed by specific persons, and they may have inherent risks, such as program bugs.4

(6) Liquidity risk

Regarding Monsters, we do not guarantee the possibility of P2P transactions and exchange to crypto assets such as ETH.

(7) Risks due to hard forks

Monsters are issued using the blockchain of ETH, and there are risks due to hard forks in the blockchain, such as incompatibility.

(8) Cyberattack risks

There is the risk that information such as addresses may be leaked due to cyberattacks, etc. and that Monsters owned by the Purchaser may be sent to third parties without the Purchaser’s permission.

(9) Network risks

Since transactions of Monsters are conducted using the blockchain scheme, it may take a certain period of time to assign Monsters, and there is the possibility that the assignment of Monsters will not be reflected to the address or that the assignment will be cancelled. Moreover, since the Monsters are electronically recorded and are transferred on the network, there is a possibility that they may disappear.

(10) Risks related to address

If the Purchaser loses the secret key required to access the address for management or storage of Monsters, the Purchaser may become unable to use Monsters.

(11) Risks of law/tax revision

The laws and tax system related to Monsters are subject to change, and the assignment of Monsters may be prohibited or restricted, or taxation may be strengthened due to future changes to the laws, tax system, or policies, resulting in restriction or more disadvantageous handling of the possession or transactions of Monsters, which may cause an unexpected loss to the Purchaser.

(12) Risks related to the types and number of Monsters

Since the types and number of Monsters that we assign in token sale are limited, the Purchaser may not be able to purchase the desired Monsters even during the token sale period.

(13) Other risks

When the Purchaser makes payment for purchase of Monsters, there is the possibility that a third party may impersonate the Company and give a false address to fraudulently obtain the ETH sent by the Purchaser.

Article 10 Taxes and Public Dues

The Purchaser shall pay the taxes and public dues imposed on the Purchaser in relation to the purchase of Monsters. Moreover, the Purchaser shall confirm the types and amount of the taxes and public dues imposed on the Purchaser at their own responsibility.

Article 11 Disclaimer

1. The Monsters are provided “as is” and “as available,” and we provide no guarantee whatsoever as to the fitness for a particular purpose, commercial utility, integrity, or continuity of the Monsters.

2. We do not guarantee that the Monsters themselves or their possession or forwarding will be free from virus attacks or other attacks by malicious third parties.

3. We have no obligation for the development and operation of the Game, and we do not guarantee the completion of the Game. We do not assume any responsibility if the Game is not developed or operated.

4. Even if the Purchaser has obtained any information on Monsters directly or indirectly from us, we do not assure the Purchaser of anything beyond our obligations explicitly specified in the Terms.

5. We do not guarantee the reliability, concurrence, or lack of defects of Monsters and the Game, or the fulfillment of other conditions expected by the Purchaser.

6. If there are any defects in the Monsters for system reasons, we do not guarantee that the defect will be corrected in the future.

7. We shall have the right to issue additional Monsters at our own discretion, and we do not take any responsibility for damages that may be caused to the Purchaser in connection with such issuance.

Article 12 Ownership of Rights

We and our licensors have all intellectual property rights (including copyrights, patent rights, utility model rights, trademark rights, design rights, and other intellectual property rights, including the rights to obtain them or to apply for registration thereof) related to the creations associated with Monsters and the Game (including but not limited to the images and videos of the embodied Monsters and the story of the Game; the same shall apply in this article), and the assignment of Monsters based on the Contract does not mean the transfer or licensing of the intellectual property rights of us or our licensors in relation to the creations associated with Monsters or the Game. The Purchaser shall not conduct any act (including but not limited to disassembly, decompilation, and reverse engineering) that may infringe upon the intellectual property rights of the Company or our licensors for whatever reason.

Article 13 Indemnification

1. If the Purchaser causes damages to us or any third party in relation to the Contract, the Purchaser shall be responsible for compensation for the damages (all damages including direct damage, ordinary loss, lost profit, loss of business opportunity, loss of data, business interruption, and other indirect, special, consequential, or incidental damages).

2. If we receive any claim or demand for any rights from a third party due to the act of the Purchaser in relation to Monsters, the Purchaser shall promptly take necessary measures at their own expense to avoid our direct reception of such claim or demand.

Article 14 Compensation for Damages

1. We are not liable for any damages caused to the Purchaser in relation to Monsters. Even if we are liable for damages to the Purchaser because of the application of the Consumer Contract Act or any other reason, our liability shall be limited to the amount equivalent to the ETH that we actually received from the Purchaser based on the Contract, which is converted into Japanese yen based on the standard ETH rate.

2. Notwithstanding the other provisions, we will compensate for damages caused to the Purchaser in relation to the Monsters if the damages are caused by a default or tort on our part arising from an intentional act or gross negligence on our part.

Article 15 Force Majeure

If there is a delay in the performance of our obligations under the Contract due to any situation beyond our reasonable control (including but not limited to fire, power failure, hacking, computer viruses, earthquake, flood, war, epidemic, suspension of trade, strike, riots, inability to secure supplies or transportation facilities, or intervention by government authorities), we shall not be liable to the Purchaser for default while the situation continues.

Article 16 Cancellation

1. The Purchaser may not cancel the Contract or ask for the return of ETH sent to us by the Purchaser in compensation for Monsters in any case.

2. If we decide not to assign Monsters to the Purchaser, we may return the ETH that we have already received to the Purchaser at our discretion. In such case, we may return the ETH by sending the same number of ETH as we received from the Purchaser, or by sending money equivalent to the amount of the received ETH converted into Japanese yen based on the standard ETH rate, or by assigning Monsters that we consider as having equivalent value to the received ETH.

3. If the Purchaser violates the Contract, we may disable the functions of Monsters that we assigned to the Purchaser based on the Contract or take other measures that we consider appropriate at our discretion.

Article 17 Elimination of Antisocial Forces

1. If we find that the Purchaser or the Purchaser’s agent in relation to the Contract (including, in this article, any contract concluded in association with the Contract) or any person who mediated the conclusion of the Contract is a member of antisocial forces (gang, gang member, quasi member of gang, gang-related company, corporate extortionist, or other entity or person seeking economic profit using violence, power, or fraudulent approaches; the same shall apply hereafter), we have the right to prospectively cancel the Contract immediately by informing the Purchaser without announcement.

2. Except for the cases specified in the preceding section, we may immediately cancel the Contract prospectively by informing the Purchaser if it is found that a director, auditor, employee, or other member, shareholder, client, consultant, or other advisor of the Purchaser is a member of antisocial forces, or that the Purchaser has some kind of exchange or involvement with antisocial forces, such as cooperation or involvement with the maintenance, operation, or management of antisocial forces through funding or any other means.

3. We shall not be liable for compensation for damages caused to the Purchaser due to cancellation specified in this article.

Article 18 Confidentiality

1. For the purpose of the Contract, “confidential information” means any information on our technology, sales, business, financial affairs, organization, or other matters (including the matters related to the Monsters and the Game) that we provide or disclose to the Purchaser in writing, orally, or through recording media, or that the Purchaser has learned in relation to the Contract. However, confidential information shall exclude information (1) that was already publicly known or known to the Purchaser at the time of provision or disclosure from us, (2) that became publicly known through publications, etc. after the provision or disclosure from us or the learning of the information due to grounds not attributable to the Purchaser, (3) that the Purchaser legally obtained from a third party who is authorized to provide or disclose the information, without confidentiality obligation, (4) that was developed independently without referring to confidential information, or (5) that was confirmed in writing by us not to require confidentiality.

2. The Purchaser shall use the confidential information only for the purpose of purchasing Monsters and playing the Game, and shall not provide, disclose, or leak our confidential information to any third party without our written consent.

3. Upon termination of the Contract or at any time when requested by us, the Purchaser shall return or dispose of the confidential information and the documents or other recording media containing confidential information and all copies thereof according to our instructions without delay.

Article 19 No Transfer

1. The Purchaser shall not transfer, pledge as collateral, or otherwise dispose of their contractual status with regard to the Contract or the rights or obligations based on the Contract to any third party without our prior written consent.

2. If we transfer the business related to the Monsters or the Game to a third party (regardless of the form, such as a business transfer or company split), we may transfer our contractual status with regard to the Contract and the rights and obligations based on the Contract, as well as information including the information on the Purchaser to the transferee in association with the transfer, and the Purchaser shall be deemed to have agreed to the transfer in advance based on this Section.

Article 20 Entire Agreement

The Contract constitutes the entire agreement between the parties to the Contract as to the matters contained in the Contract, and shall supersede any prior agreements, representations, and understanding between both parties as to the matters contained in the Contract, whether written or oral.

Article 21 Severability

If any provision or portion of any provision of the Terms is found invalid or unenforceable, the remaining provisions or portions thereof shall remain in full force and effect. The parties to the Contract shall revise such invalid or unenforceable provisions or portions to the extent necessary to make them legitimate and enforceable, in order to ensure the meaning and legally and economically equivalent effect of the invalid or unenforceable provisions or portions.

Article 22 Survival

If the Contract is terminated due to cancellation or any other reason, the provisions of Article 4, Articles 7 to 9, Articles 10 to 16, Section 3 of Article 17, and Articles 18 to 23 shall survive the termination of the Contract. However, Article 18 shall survive for only five (5) years after the termination of the Contract.

Article 23 Governing Laws and Jurisdiction

The Contract shall be governed by the laws of Japan, and all disputes arising in relation to the Contract shall be submitted to the exclusive jurisdiction of the Tokyo District Court in the first instance.

Article 24 Consultation

Any matter not stipulated herein or any doubts arising with respect to the interpretation of the Terms shall be resolved in accordance with the provisions of laws and regulations and customs, or through mutual consultation between both parties in good faith.

Established on November 1, 2019