On 7 January 2019, Leyou Technologies Holdings Limited entered into the amendment agreement and the Contingent Funding Agreement with Certain Affinity and Mr. Hoberman, who is the founder, President and controlling shareholder of Certain Affinity. Pursuant to the Amendment Agreement, the company agreed, among other things, to increase the maximum principal amount of the Loan from USD 15,000,000 to USD 33,000,000. All other terms of the Loan shall remain in full force and effect. The Loan will continue to be interest-free and be granted on a non-recourse basis and solely recoupable by the company from its share of the revenues derived from exploitation of the Game. The company's equity position and percentage of ownership in Certain Affinity remain unchanged. Pursuant to the Contingent Funding Agreement, Mr. Hoberman agreed, among other things, to fund the portion of the costs and expenses required for the Game Development which is in excess of the Loan in accordance with the terms of the Game Development Agreement in the event that Certain Affinity fails to do so. The Game Development is progressing well with approximately 50% of the Open Beta version completed. With the increase in the principal amount of the Loan, which is essentially the development budget for the Game, Certain Affinity will be able to develop and produce the Game with richer content, such as in the form of more characters, more levels, challenges or missions and a bigger game universe, and prepare to make the Game available on PC. The Directors believe that with the Game being designed to have richer content and to ultimately be made available on more platforms, more gamers will be attracted to play the Game and in turn, increase the revenue derived from the Game. The increase in the principal amount of the Loan is in the ordinary course of business of the Company, on normal commercial terms and arrived after arm's length negotiations. Taking into consideration the potential increase in the revenue to be received by the Group, the Directors consider that the increase in the principal amount of the Loan is fair and reasonable and in the best interest of the Company and its shareholders as a whole. The increase in the principal amount of the Loan will be funded by internal resources or potential debt financing of the company.