Following an international tender, and pursuant to the Concession Agreement dated 24.04.2015 signed between HRADF and HORSE RACES S.A., the latter was granted the exclusive right to organise and run sweepstakes in Greece for a period of twenty (20) years (08.01.2016-08.01.2036) with the simultaneous lease of the Race Track property (approximately 100.0 hectares) in Markopoulo, Attica, owned by the Hellenic Horse Race Betting Organisation S.A. (“ODIE”), with a duration corresponding to the concession and for a monthly rent of €210,833, adjusted annually for inflation.

The concession agreement and the lease agreement were ratified by law on 25.10.2015 (Law 4338/2015).

According to the concession agreement, the annual variable consideration paid by HORSE RACES S.A. (“Concessionaire”) to the Greek State is calculated at a rate of 30% on the gross gaming revenues (GGR) (gaming revenues minus player winnings) of Horse Races S.A.

This payable amount is broken down as follows:

(a) 24% of the GGR of the domestic horse race betting of HORSE RACES S.A. is made available by the Concessionaire exclusively for the payment of prizes for horse races conducted live in Greece according to the applicable laws, while any amount up to 16% of the 24% of the GGR deriving from the foreign horse race sweepstakes goes to commissions to foreign operators of horse races conducted abroad.

(b) 1.5% of the Concessionaire’s GGR is given to the Jockey Club of Greece (“FEE”) for its operational expenses. In the event that other operators organize and conduct betting on Horse Races, the amounts paid by them to the Jockey Club of Greece (FEE) in accordance with the applicable laws shall be deducted from the above minimum amount provided by the Concessionaire to FEE; and

(c) the balance remains with the Greek State.

HORSE RACES S.A. is a wholly-owned subsidiary of OPAP.

The Greek State and HRADF appointed Agricole Credit and Emporiki Bank as financial advisors and the law firms Karatzas & Partners and Dryllerakis & Partners as legal advisors, in order to assist with the privatisation.

ODIE S.A., which in the past had been the holder of the exclusive right to organise horse races and conduct horse race sweepstakes in Greece, was dissolved and wound up on 21 December 2015, by virtue of Article 13, par. 7 (f) of Law 4111/2013 and based on the provisions of Law 4338/2015, as in force.