ZAHEL TRUST AND FOUNDATION EOOD (the "Company"), with its registered office at Stefan Verkovich 3 4000 Plovdiv (BG), holds the license to use the SwattRacing mobile software application ("SwattRacing"), which provides its registered users ("Users") with an innovative gamification service based on athletic and sporting performance.

SwattRacing incorporates the use of points called SWATT, which function as a score awarded for the User’s activity and as a prize for winning or participating in races.

By completing the registration process on SwattRacing and using the services offered, the User agrees to be bound by the terms and conditions of use set forth herein (the "Terms of Use").

The User further declares that they have the legal capacity to enter into binding contracts and are in no way prohibited from using the services under applicable laws in their jurisdiction of residence or use.

These Terms of Use may be updated from time to time to reflect regulatory, technical, or commercial changes. The User is required to review the Terms of Use periodically, and continued use of SwattRacing will constitute acceptance of any changes made.

The Company is committed to ensuring that the use of SwattRacing complies with principles of fairness and transparency, safeguarding User security, privacy, and personal data in accordance with the General Data Protection Regulation (GDPR) and other applicable privacy laws.

This document is an integral part of any agreement between the Company and the Users and should be read in conjunction with the Privacy Policy, the Cookie Notice, and any other document the Company deems necessary to provide a clear and transparent service.

2.1Managers, Athletes, Teams and Leagues

SwattRacing users may act as both managers and athletes. Managers form and manage teams of athletes (hereinafter referred to as "Teams") through an auction system to recruit players, as detailed in Sections 2.2 and 2.3. These Teams compete in Leagues (the "Tournaments") that take place periodically according to a schedule available on SwattRacing. The Team that wins each Tournament may be awarded SWATT prizes.

2.2Recruitments and SWATT

To recruit athletes, managers must participate in a competitive auction, available daily on SwattRacing (the "Auctions"). Participation in the Auctions is permitted exclusively through the use of SWATT.

Users can earn SWATT by completing athletic activities, participating in races, or receiving them as rewards for their performance. Each activity or victory awards a certain number of SWATT according to the rules established by the platform.

The SWATT balance in the User's SWATT Account reflects the points accumulated by the User and the right to participate in Auctions or receive prizes within SwattRacing.

2.3Auctions and League Entry with Buy-In

The Auctions on SwattRacing are conducted in accordance with a notice published on the platform, detailing the rules, starting bid, bid increments, and start and end times.

Once opened, each Auction continues without interruption until the scheduled end of the day. Unless otherwise specified in the notice, Auctions start at 8:01 PM and end at 8:00 PM the following day.

It should be noted that, due to technical network peculiarities, the timers on the Platform may not be precise and should be considered as a mere approximation of actual time.

The Auctions within SwattRacing are conducted exclusively through a buy-in system. Each manager wishing to participate in a Tournament must register by selecting a League of a Tournament and paying a buy-in in SWATT. The amount of the buy-in will be clearly specified on the platform for each available League.

The specifics of each Tournament, including details about the League, the prize pool, and the percentage of SWATT allocated to acquired athletes, will be published transparently on the gaming platform.

2.4SWATT Calculation

In order to assign a reference value in the Auctions and reward performance, SwattRacing attributes to each User-athlete a score based on their physical activity according to an algorithm that rewards not only athletic performance but especially consistency of physical activity (the SwattIndex). The SwattIndex algorithm is designed to foster competition among Teams composed of a diverse mix of athletes with varying athletic abilities.

The SwattIndex algorithm is described in Section 2.2 Game Rules of SwattRacing. The Company, at the request of the User community, reserves the right to modify the algorithm as well as the assignment of the SwattIndex with 30 days’ notice.

The data used to calculate the SwattIndex is collected by SwattRacing through the sensors normally installed on mobile devices (smartphones) when the app is active. The User acknowledges and accepts that the sensors may provide inaccurate data and that network or mobile device malfunctions may occur, and therefore the SwattIndex assigned to them may not be accurate.

The Data Controller processes the User’s personal data for the profiling described above only after obtaining explicit and specific consent from the User at the time of registration on SwattRacing. Such consent is required to play on SwattRacing and is therefore a necessary condition for creating an account on SwattRacing.

2.5References

For further information and details on the calculation and use of SWATT, please refer to the SwattRacing Whitepaper published on www.SwattRacing.com.

The game rules of SwattRacing are published in detail in the Game Regulations available both on the websitewww.SwattRacing.comand within the Apps.

4E-Commerce and User Responsibilities

Pursuant to Articles 13 et seq. of Legislative Decree No. 70/2003, the Company is required to act promptly to remove illicit content, in particular content that is defamatory, contrary to public order, or that violates the right to one’s name and image, or the right to confidentiality and data protection.

Users are therefore invited to promptly report to the Company at support@SwattRacing.com any actual or suspected illegal conduct on SwattRacing.

The Company adopts a strict policy of preventing illicit activities in compliance with legal prerogatives and ensuring the right to be heard for those involved. In this regard, SwattRacing reserves the right to cancel or suspend User accounts provisionally if illicit conduct is confirmed or under investigation pursuant to the aforementioned legislation.

Users acknowledge that the Company has the right to close accounts or deny access to Users who have been reported or who have engaged in conduct that violates the law or these Terms of Use.

The User excluded or suspended retains the right to convert any SWATT remaining in their Account into rewards or other benefits provided by the platform.

5Company Rights

The Company is the exclusive owner of all intellectual and industrial property rights contained in SwattRacing and/or published on the website www.SwattRacing.com, such as, by way of example, layout, images, texts, graphics, domains, and trademarks (e.g., SWATT and SwattRacing).

Unauthorized use of content published on SwattRacing or on the website www.SwattRacing.com constitutes a violation of the law and will be pursued by the Company in civil and criminal proceedings.

6Representations and Warranties

The Company makes no warranties regarding the accuracy or completeness of the content available on SwattRacing.

Users acknowledge that computer programs operating on the Platform are inherently subject to a certain degree of unpredictability; the Platform and SwattRacing itself may be subject to defects, viral digital infections, cyberattacks, or other technical malfunctions that can cause failures and unexpected service interruptions.

In light of the foregoing, Users acknowledge that the Company, except in cases of willful misconduct or gross negligence, provides SwattRacing "as is," thereby excluding liability toward them with particular reference to the correct and timely execution of SWATT transactions and allocations.

7Duration

These Terms of Use govern the relationship between the Company and the User from the moment the account creation process is completed for an indefinite period and in any case until the account is deleted or removed.

Both the Company and the User may terminate these Terms of Use at any time without providing reasons. The User’s termination must be carried out by deleting their account through the appropriate modification and deletion tool available in the "settings" section of their profile.

8Personal Data

To access and operate SwattRacing, the User must provide certain personal data such as, for example, email, first name, last name, nickname, nationality, photo, etc. The personal data are published on the User’s personal page and may be visible to other Users.

The Company has a particular interest in the confidentiality and protection of Users' personal data and adopts the best security technologies to guarantee their rights.

Notwithstanding the foregoing, Users acknowledge that, due to the nature of the Platform, and in particular the distributed ledger technology employed, SWATT transaction data are public and irreversible.

Any further information regarding confidentiality and personal data processed on SwattRacing is published in the Privacy Notice.

9Miscellaneous

The Company may modify these Terms of Use at any time. The updated version will be published on SwattRacing and on the website www.SwattRacing.com and will become effective 30 days after publication. During this period, the User has the right to withdraw from the Terms of Use and delete their account through the appropriate function in their account settings. If no withdrawal is made within this period, the new Terms of Use will be deemed accepted by the User.

Users may not transfer the rights and obligations arising from acceptance of these Terms of Use.

10Governing Law and Jurisdiction

These Terms of Use are governed by and interpreted in accordance with Italian law. The exclusive jurisdiction for any disputes regarding the interpretation and enforcement of these Terms of Use shall be Milan.