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LETTER OF INTENT

LETTER OF INTENT. 2019. François L. Meynot Avocat à la Cour MB & Associés 35 avenue d’Eylau 75116 Paris T : (33) 01.53.70.05.80 fl.meynot@mb-avocats.com. LETTER OF INTENT. BETWEEN : A : RACER FINANCE SA (Parent Co of DERIF S.A., known as CIREL)

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LETTER OF INTENT

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  1. LETTER OF INTENT 2019 François L. Meynot Avocat à la Cour MB & Associés 35 avenue d’Eylau 75116 Paris T : (33) 01.53.70.05.80 fl.meynot@mb-avocats.com

  2. LETTER OF INTENT BETWEEN: A :RACER FINANCE SA (Parent Co of DERIF S.A., known as CIREL) - DENOMINATION SOCIALE : REGISTERED NAME - NOM COMMERCIAL : TRADEMARK AND B :BINTEC COMMUNCIATIONS AKTION GESELLSCHAFT - QUOTED ON A GERMAN MARKET (Hereinafter BINTEC OR BUYER)

  3. §1 : SCOPE OF THE LOI • NON BINDING, BUT BINDING FOR : * PROVIDING INFORMATION (§6) * EXCLUSIVITY (§8) * EXPENSES (§ 13) * CONFIDENTIALITY (§ 14) * GOVERNING LAWS (§15)

  4. §1 : SCOPE OF THE LOI HOWEVER, SHOULD HAVE BEEN BINDING FOR : * CONFIRMATION (§9) * MANAGEMENT THE ORDINARY COURSE OF THE BUSINESS (§10) * GOOD FAITH (§12) THE COMPLETION OF THE TRANSACTION ARE NON BINDING STIPULATIONS ONLY THE PRICE

  5. §2 CONSIDERATION CASH : 50 Million + BINTEC SHARES : EQUIVALENT OF 28 Million + EARNOUT : FROM 6 Million TO 0 IN BINTEC SHARES HOW TO PAY WITH THE BUYER’S OWN SHARES ??

  6. Share Capital Increase PhD Others Frankfurt Stock Market Contributes 28/78 RACERφ S.A. BINTEC S.A. Sales50/78 Shares 28/78 Cash 50/78 DERIF S.A. 100% DRAWBACKS: • FINANCIAL COST, NO FISCAL UNITY POSSIBLE • HOW TO PROCEED WITH THE EARNOUT? (6 MILLION, CONTINGENT)

  7. ALTERNATIVE Frankfurt Stock Market PhD Others 28 million shares of Bintec locked up BINTEC COM AG RACERφ S.A. Purchase for 28 million of shares + 6 million 100% DERIF S.A. NEW CO SPV S.A.S 100% Lend Borrow BANKS Borrow FISCAL UNITY New Co interests offset against Derif profits 78 + 6 = 84 HOWEVER SPV SHALL BE A FRENCH CO.

  8. « POTESTATIVE » CONDITION ? FRENCH CIVIL CODE Article 1170 et seq SUBJECT TO COMPLETELY SATISFYING RESULTS OF THE DUE DILIGENCE CONDUCTED BY BINTEC BUYER, DEBTOR OF THE OBLIGATION (TO BUY), CAN DECIDE IF HE PROCEEDS OR NOT, AT ITS OWN DISCRETION (CASS. COM. -22-2-1967, 07-04-1967) PURELY  « POTESTATIVE » : VOID : C.CIV. 1170 WITH A RISK FOR THE DOCUMENT CONDITION SIMPLY « POTESTATIVE » : VALID : C.CIV. 1171

  9. « POTESTATIVE » CONDITION ? FRENCH CIVIL CODE Article 1170 et seq A CONDITION IS SIMPLY « POTESTATIVE » WHEN A MINIMUM VALUE OF THE TARGET’S NET WORTH IS INDICATED IN THE DOCUMENT (PARIS APPEAL COURT : CA PARIS 28.06.2002) COMPULSORY ACQUISITION : NO IF NON SATISFACTORY INDEMNIFICATION FOR UNFAIR BREACH OF NEGOTIATION (Cass. 1èreCiv. 06-01-1998)

  10. SHARES AS A MEANS OF PAYMENT • CONTRIBUTION OF 28th/78th OF DERIF SHARES TO BINTEC • DEED OF CONTRIBUTION • OPINION OF AN INDEPENDANT « CONTRIBUTION AUDITOR » • EXTRAORDINARY SHAREHOLDERS MEETING AT THE BENEFICIAIRY’S LEVEL (BINTEC AG) • SHARE CAPITAL INCREASE • DILUTION OF THE EXISTING SHAREHOLDERS

  11. SHARES AS A MEANS OF PAYMENT TAX WISE, CAPITAL GAINS ARE TAXABLE: - WHEN THE SHARES RECEIVED AS A CONSIDERATION ARE SOLD, OR WHEN THE SHARES CONTRIBUTED ARE SOLD. HOWEVER, WHEN THE BENEFICIARY OF THE CONTRIBUTION RE-INVESTS A PART OF THE PROCEEDS OF THE SALE WITHIN THE TWO YEARS FOLLOWING THE SALE, THE TAX ON CAPITAL GAINS IS POSTPONED.

  12. COMPLETION - CLOSING -EXECUTION POSSIBILITY OF RETROACTIVITY ??

  13. COMPLETION - CLOSING -EXECUTION § 3 : NET ASSETS VALUE : AT COMPLETION, WITH A MINIMUM REFERENCE TO N.A.V. DETERMINED TO COMPLETION

  14. COMPLETION - CLOSING -EXECUTION § 4 : PREFERABLY AN UMBRELLA AGREEMENT WITH VARIOUS CHAPTERS REPRESENTED BY VARIOUS AGREEMENTS (LABOUR AGREEMENTS, WARRANTY…)

  15. COMPLETION - CLOSING -EXECUTION § 5 : TRANSACTION CONDITIONAL UPON: • A SATISFACTORY AUDIT AND • REPS AND WARS

  16. COMPLETION - CLOSING -EXECUTION § 6 : AVAILABILITY OF THE INFORMATION, ONE WEEK NOTICE PERIOD

  17. COMPLETION - CLOSING -EXECUTION § 7 : CONSENTS PRIOR TO TRANSACTION (BANKS, PRINCIPAL, LANDLORDS, INSURERS…) § 8 : CONSIDERATION UNNECESSARY UNDER FRENCH LAWS FOR THE EXCLUSIVITY THE CLAUSE IS RESTRICTED : NOT SOLICIT OFFERS !!!!

  18. COMPLETION - CLOSING -EXECUTION § 9 : FAIRLY COMMON § 10 : THIS CLAUSE SHOULD HAVE BEEN BINDING : TO CONDUCT BUSINESS WITH THE PRUDENT MAN PRINCIPLE § 11 : PHD SHALL SIGN AS CHAIRMAN AND FOR HIMSELF

  19. COMPLETION - CLOSING -EXECUTION § 12 : NEGOCIATION IN GOOD FAITH ! NEEDLESS TO SAY !!! § 13 : COST OF COUNSEL § 14 : NON DISCLOSURE. WATCH OUT : OUTSIDE COUNSEL IS MENTIONED: STIPULATION ON BEHALF OF A THIRD PARTY

  20. COMPLETION - CLOSING -EXECUTION § 15 : GOVERNING LAWS § 16 : AUTHORISATION OF THE TRANSACTION BY BINTEC’S SHAREHOLDERS : « POTESTATIVE » CLAUSE? NO, IN THE CASE OF CONTRIBUTION

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