report [non-binding convenience translation, for ......realtime technology aktiengesellschaft,...

Report [non-binding convenience translation, for information purposes only]

on the audit of the merger of

Realtime Technology Aktiengesellschaft,

München,

with

3DS Acquisition AG,

Frankfurt am Main

Mandate: 14-0310-I

This report is a non-binding convenience translation of the legally binding German language document and is provided for information purposes only. Only the original German language document (“Bericht über die Prüfung der Verschmelzung der

Realtime Technology Aktiengesellschaft, München, auf die 3DS Acquisition AG, Frankfurt am Main”) shall govern with respect to the matters described therein.

Engagement: 14-0310 I non-binding English convenience translation - I -

Table of contents

A. Engagement and execution of the engagement ............................................................. 1

B. Subject, nature and scope of the merger audit ............................................................... 4

C. Audit of the merger agreement ....................................................................................... 6

I. Completeness and accuracy of the relevant minimum requirements under the law ................................................................................................................... 6

1. Description of the participating legal entities (Sec. 5 (1) no. 1 UmwG) .............................................................................................. 6

2. Agreement on the transfer of assets (Sec. 5 (1) no. 2 UmwG) .................. 6

3. Merger record date (Sec. 5 (1) no. 6 UmwG) ............................................. 7

4. Granting of special rights for individual shareholders and the holders of special rights (Sec. 5 (1) no. 7 UmwG) ..................................... 7

5. Granting of special benefits (Sec. 5 (1) no. 8 UmwG) ................................ 8

6. Consequences for the employees (§ 5 (1) no. 9 UmwG) ........................... 8

7. Statement disclosing the squeeze-out of minority shareholders (Sec. 62 (5) sentence 2 UmwG) ................................................................. 8

II. Accuracy of the optional provisions of the merger agreement ............................. 9

D. Results of the audit and concluding statement ............................................................. 10

The calculations p.r.n. contained in this report are shown with fewer digits after the decimal

point than were taken into account in the underlying calculations. Therefore, minor discrep-

ancies with regard to the presented table values can arise when trying to reconstruct the

arithmetic operations.

Engagement: 14-0310 I non-binding English convenience translation - II -

Table of Appendices

Annex 1: Decision by the Munich Regional Court I, 5th Commercial Division, dated 24 June 2014 regarding the appointment of IVC Independent Valuation & Consulting Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Essen, as the merger auditor pursuant to Sec. 60 of the Transformation Act (Umwand-lungsgesetz; UmwG)

Annex 2: Draft of merger agreement established on 28 August 2014 between Realtime

Technology Aktiengesellschaft "transferring company" and 3DS Aquisition AG "acquiring company"

Annex 3: General Engagement Terms for Public Auditors and Public Audit Firms as of

1 January 2002 [Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften vom 1. Januar 2002] in German (legally binding version)

Annex 4: General Engagement Terms for Public Auditors and Public Audit Firms as of

1 January 2002 [Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften vom 1. Januar 2002] in English

Engagement: 14-0310 I non-binding English convenience translation - 1 -

A. Engagement and execution of the engagement

1.

3DS Acquisition AG, Frankfurt am Main,

(hereinafter also "3DS" or "acquiring company")

and

Realtime Technology Aktiengesellschaft, Munich,

(hereinafter also "RTT" or "transferring company")

intend to carry out a merger pursuant to Sec. 2 no. 1 of the Transformation Act (Umwand-

lungsgesetz; "UmwG") (merger by means of acquisition).

2. Upon the joint motion of 3DS and RTT, IVC Independent Valuation & Consulting Aktieng-

esellschaft Wirtschaftsprüfungsgesellschaft, Essen, (hereinafter also "IVC" or "auditor") was

appointed as the auditor of the merger agreement between these two companies by the Mu-

nich Regional Court I in a decision dated 24 June 2014 (Appendix 1)1 pursuant to Sec. 60

UmwG. RTT and 3DS then jointly mandated us with the assessment of the merger agree-

ment.

3. 3DS directly held – on closing of our assessment of the merger agreement - a total of

4,459,288 shares of RTT when the merger agreement was formed. RTT held 13,663 treasury

shares when the agreement was formed. The registered share capital (Grundkapital) of RTT

amounts to EUR 4,780,070.00, divided into 4,780,070 no-par value registered shares with a

proportionate share in the registered share capital (Grundkapital) of EUR 1.00 each. 3DS

directly holds approximately 93.29 % of the registered share capital (Grundkapital) and voting

rights, and approximately 93.56 % of the registered share capital (Grundkapital) effectively

conferring voting rights of RTT as reduced in accordance with Section 62 para. 1 sentence 2

UmwG (registered share capital (Grundkapital) less 13,663 treasury shares of RTT). 3DS is

thus the majority shareholder within the meaning of Section 62 para. 5 sentence 1 UmwG.

3DS and RTT entered into a merger agreement on 29 August 2014 (Appendix 2). The draft of

the merger agreement established on 28 August 2014 has been received by us for audition.

4. In connection with the merger, the other shareholders (minority shareholders) of RTT shall be

squeezed-out pursuant to Sec. 62 (5) and (1) UmwG in conjunction with Sec. 327a et seqq.

Stock Corporation Act ("AktG") (Sec. 62 (5) sentence (2) UmwG). Therefore, within three

months after conclusion of this merger agreement RTT's general meeting shall resolve upon

1 The appointment was requested on 24 June 2014 but was misdated on 24 June 2013 by editorial error.


the transfer of the shares of the other shareholders (minority shareholders) of RTT to 3DS in

its capacity as majority shareholder against payment of an adequate cash compensation.

The completion of the merger is conditional upon the simultaneous completion of the transfer

of all shares held by the other shareholders (minority shareholders) of RTT to 3DS, as majori-

ty shareholder. Therefore, this merger agreement is subject to a respective condition prece-

dent. Reciprocally, the registration of the squeeze-out resolution will be made pursuant to

Sec. 62 (5) sentence 7 UmwG with a statement that the squeeze-out resolution will only be-

come effective simultaneously with the registration of the merger with the register of the seat

of the acquiring 3DS.

5. The assets of RTT (transferring legal entity) are to be transferred to 3DS (acquiring legal

entity) in their entirety with all rights and obligations through acquisition by means of merger

under dissolution without liquidation.

6. The merger of RTT with 3DS is to be carried out internally between the participating legal

entities effective as of the end of 30 June 2014. All actions and transactions on the part of

RTT are to be carried out for the account of 3DS beginning on 1 July 2014 (hereinafter also

"merger record date").

7. The following documents in particular were presented to us while performing our audit:

merger agreement established on 28 August 2014 between 3DS Acquisition AG,

Frankfurt am Main, and Realtime Technology Aktiengesellschaft, Munich, as well as

the preceding drafts;

Joint merger report of 3DS Acquisition AG, Frankfurt am Main, and Realtime Technol-

ogy Aktiengesellschaft, Munich, on the merger of RTT with 3DS pursuant to

Sec. 8 UmwG dated 28 August 2014 (hereinafter also "merger report") as well as the

preceding drafts;

Excerpts from the commercial registers of RTT and 3DS ;

Article of Association of RTT in the version dated 6 August 2014 and Article of Asso-

ciation of 3DS in the version dated 13 September 2013.

8. Contact persons available to us included the Management Boards of 3DS and RTT as well as

designated employees of RTT and the law firm Baker & McKenzie Partnerschaft von

Rechtsanwälten, Wirtschaftsprüfern und Steuerberatern mbH, Frankfurt am Main, as legal

advisers of the acquiring entity. All information requested was provided to us.

9. The Management Boards of RTT and 3DS each provided us with a letter of representation

stating in writing that all information and documents relevant for our audit were made availa-

ble and that they are accurate. The contracting companies are responsible for the proper

contents of the merger agreement.


10. We performed our audit since receiving the appointment from 24 June to 29 August 2014 in

our offices in Essen.

11. We would like to expressly point out that we did not conduct an audit of the books and

records/bookkeeping system, the annual financial statements, or the management of the

participating companies. Such examinations are not the subject of a merger audit.

12. Our engagement and our liability, also in relation to third parties, are governed by the "Gen-

eral Engagement Terms for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (Ger-

man Public Auditors and Public Audit Firms)" in the version dated January 1, 2002, which are

attached as Appendix 3. These General Engagement Terms, in addition to the statutory limit

on liability under Sec. 11 (2) UmwG in conjunction with Sec. 323 of the German Commercial

Code (Handelsgesetzbuch; "HGB") regulate our responsibility also with regard to third par-

ties.

13. This report is solely used for the appropriation by the clients for the purpose of the merger of

RTT to 3DS (transfer to Shareholders of RTT, transfer to Shareholders of 3DS, transfer to the

court).This report must not be used for publication, duplication or any purpose other than the

above described purpose, neither for information to (remaining) third parties.

14. The transfer to (remaining) third parties is solely allowed in full wording and after conclusion

of a separate contract on information between the third party and us, subject to our explicit

written agreement to our clients.


B. Subject, nature and scope of the merger audit

15. Pursuant to Sec. 60 in conjunction with Sec. 9 (1) UmwG, the subject of the merger audit is

the merger agreement. The information contained in the agreement is to be audited for com-

pleteness and accuracy.

16. The Transformation Act's general requirements as well as those specific to the legal form

dictate the audit procedures with respect to the completeness of the merger agreement. In

this case, the minimum contents for the merger agreement as set forth under Sec. 5 (1) nos.

1, 2, 6, 7, 8, and 9 as well as Sec. 62 (5) sentence 2 UmwG are as follows:

the name and registered office of legal entities participating in the merger;

the agreement regarding the transfer of the transferring legal entity's assets in their

entirety;

the date on which the actions of the transferring legal entity are to be deemed as for

the account of the acquiring legal entity (merger date);

the rights granted by the acquiring legal entity to individual shareholders as well as

special rights for the owners such as shares without voting rights, preference shares,

multiple voting shares, debt securities, and profit participation rights, or actions planned

for these individuals;

every special advantage granted to a member of a representative or supervisory body

of a legal entity participating in the merger, an auditor, or a merger auditor;

the consequences of the merger for the employees and their representatives as well as

measures planned in this respect;

a statement disclosing that the minority shareholders of the transferring company will

be squeezed out in connection with the merger.

17. In a squeeze-out under the Transformation Act pursuant to Sec. 62 (5) UmwG in conjunction

with Sec. 327a et seqq. AktG, the squeeze-out and the merger take effect simultaneously

when the merger is entered in the commercial register of the acquiring company. The trans-

ferring entity's minority shareholders never become shareholders of the acquiring company at

any time in this process.

18. Since the acquiring company will become the sole shareholder of the transferring company

as a result when the merger takes effect, the shareholders of the transferring company are

not granted shares of the acquiring company. The acquiring company is not carrying out a

capital increase to execute the merger.

19. Therefore, the disclosures in the merger agreement regarding the exchange of shares

(Sec. 5 (1) nos. 3 to 5 UmwG) can be omitted to the extent that they relate to the acquisition

of this legal entity.


20. Optional components of the merger agreement cannot be audited for completeness in the

absence of a legal obligation; however, they are subject to a check for accuracy as a compo-

nent of the agreement.

21. Thus, the examination of the accuracy of the (legal and optional) disclosures in the merger

agreement is concerned with whether they are factually correct and consistent. It is crucial

that the facts underlying the merger agreement correspond to the actual circumstances as

well as that the forecasts and estimates are plausible (see, among others, Simon, in Kölner

Kommentar zum UmwG, 2010, § 9 margin no. 7 with further references). The general effec-

tiveness and legality of the provisions in the merger agreement are not to be examined. If any

objections or concerns arise with respect to the accuracy and/or effectiveness of individual

agreements during the audit procedures, they are to be noted in the long-form audit report.

22. Pursuant to Sec. 8 (1) UmwG, the Management Boards of each of the companies participat-

ing in a merger must provide a comprehensive written report in which the merger and the

merger agreement are discussed and justified in detail legally and economically. The report

can also be made jointly by the Management Boards. Pursuant to Sec. 8 (3) UmwG, the re-

port is not necessary if the all shares of the transferring legal entity are held by the acquiring

legal entity.

23. The completeness and accuracy of the joint merger report dated on 28 August 2014 issued

jointly as a precaution by the Management Boards of RTT and 3DS as well as the expedien-

cy of the merger agreement were not the subject of our audit. Insofar, we only dealt with the

joint merger report to the extent that it contains important disclosures regarding the subject of

the audit.

24. We have recorded the nature and scope of our audit procedures in our working papers. Our

long-form audit report describes the result of our audit of the merger agreement.


C. Audit of the merger agreement

I. Completeness and accuracy of the relevant minimum requirements under the law

25. Pursuant to Sec. 5 (1) nos. 1, 2, 6, 7, 8, and 9 UmwG as well as Sec. 62 (5) sentence 2

UmwG, we noted the following with respect to the required minimum contents of the merger

agreement provided to us for our audit:

1. Description of the participating legal entities (Sec. 5 (1) no. 1 UmwG)

26. The name and registered office of the legal entities participating in the merger are cited in the

merger agreement and correspond respectively to the Articles of Association of RTT and 3DS

as well as the entries in the commercial registers maintained by the Munich Local Court

(RTT) and the Frankfurt Local Court (3DS).

2. Agreement on the transfer of assets (Sec. 5 (1) no. 2 UmwG)

27. Pursuant to Art. 1 no. 1 of the merger agreement, 3DS and RTT agree that RTT will transfer

its assets to 3DS in their entirety with all rights and obligations under dissolution without liqui-

dation pursuant to Sec. 2 no. 1, 60 et seqq. UmwG (merger by means of acquisition). This

agreement correctly cites the companies participating in the merger and correctly specifies

the transfer of assets by means of merger with 3DS. Pursuant to Art. 1 no. 4 of the merger

agreement, 3DS will carry forward in its accounts the carrying amounts of the assets and

liabilities to be transferred as stated in RTT's closing balance sheet (continuation of carrying

amounts).

28. In accordance with Art. 2 of the merger agreement, the minority shareholders of RTT are to

be squeezed out as part of the merger pursuant to Sec. 62 (5) UmwG in conjunction with

Sec. 327a et seq. AktG. Based on the information provided to us, this is the intention.

29. The disclosures made under Art. 2 no. 2 of the merger agreement regarding the participating

interests are factually correct.

30. When the merger takes effect, all shares of RTT's minority shareholders will be go over to

3DS. This was ensured through Art. 7 no. 1 of the merger agreement, according to which the

effectiveness of the merger agreement is subject to the condition precedent that a resolution

on the part of the annual general meeting of RTT pursuant to Sec. 62 (5) sentence 1 UmwG

in conjunction with Sec. 327a (1) sentence 1 AktG regarding the transfer of the shares of

minority shareholders of RTT to 3DS as the majority shareholder be entered in the commer-

cial register of the registered office of RTT with the notation required under Sec. 62 (5) sen-

tence 7 UmwG. This satisfies the legal requirement set forth under Sec. 62 (5) sentence

7 UmwG.


31. The fact that pursuant to Sec. 68 (1) sentence 1 no. 1 UmwG 3DS may not increase its share

capital in order to execute the merger is consequently clarified under Art. 3 of the merger

agreement. The transfer of RTT's assets will be carried out rightly without granting interest in

3DS as the sole shareholder of RTT, whereby the acquiring 3DS declares a waiver of a cash

compensation offer as a precautionary measure in the merger agreement.

3. Merger record date (Sec. 5 (1) no. 6 UmwG)

32. In accordance with Art. 1 no. 3 of the merger agreement, the acquisition of RTT's assets by

3DS is to be carried out internally between the participating entities effective at the expiry of

30 June 2014. All actions and transactions on the part of RTT are to be carried out for the

account of 3DS beginning 1 July 2014 ("merger date"). It is factually correct that the merger

date immediately follows the balance sheet date of the closing balance sheet of transferring

RTT on 30 June 2014, for which an unqualified auditors' report was issued by Pricewater-

houseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (Art. 1 no. 2 merger

agreement).

33. Contrary to Art. 1 no. 3 of the merger agreement, if the merger has not taken effect by

midnight 30 April 2015 by way of entry in the commercial register of the registered office of

3DS as the acquiring company, the merger date will be changed to 1 January 2015 in ac-

cordance with Art. 6 of the merger agreement. In this case, the merger – contrary to Art. 1

no. 2 of the merger agreement – will be based on a closing balance sheet to be prepared by

RTT as of 31 December 2014. If the merger is further delayed beyond the 30 April of the

relevant subsequent year, the forementioned due dates shall be postponed respectively for

another year in accordance with the preceding provision. This provision first applies to the

originally planned merger date.

4. Granting of special rights for individual shareholders and the holders of special rights (Sec. 5 (1) no. 7 UmwG)

34. In accordance with Art. 4 no. 1 of the merger agreement – subject to the facts cited in Art. 2

(3) – no special rights as defined under Sec. 5 (1) no. 7 UmwG are granted for individual

shareholders or holders of special rights and no special measures as defined under this pro-

vision are planned for these individuals. According to the documents and information provid-

ed to us, these statements are correct.

35. The provision specified in Art. 2 (3) of the merger agreement relates to the granting of an

adequate cash settlement to the minority shareholders of RTT to be paid by 3DS.


5. Granting of special benefits (Sec. 5 (1) no. 8 UmwG)

36. Subject to the facts listed in Art. 4 nos. 3 and 4 of the merger agreement, no special benefits

as defined under Sec. 5 (1) no. 8 UmwG are granted to Management Board or Supervisory

Board members of the legal entities participating in the merger, an auditor, a merger auditor,

or any other person cited in this provision in accordance with Art. 4 no. 2 of the merger

agreement.

37. The term of office of RTT's Management Board members shall end when the merger takes

effect, whereby the service agreements of the current members of RTT's Management Board

will be transferred to 3DS by way of universal succession (see, Art. 4 no. 3 merger agree-

ment).

38. Without prejudice to the competence of the Supervisory Board of 3DS under stock corpora-

tion law, it is intended to replace the current Management Board members of 3DS with the

current members of the Management Board of RTT after the merger takes effect. Without

prejudice to the competence of the general meeting and the proposal right of 3DS' Superviso-

ry Board under stock corporation law, the Parties intend – after increasing the number of

3DS’ Supervisory Board members to six and after the merger takes effect – to have the cur-

rent Supervisory Board members of RTT, Bernard Charlès, Dr. Mario Ohle, Philippe Laufer,

Andreas Barth, Didier Gaillot and Samia Sellam, appointed as members of the Supervisory

Board of 3DS and thereby to partially replace the current Supervisory Board of 3DS (see,

Art. 4 no. 4 merger agreement).

39. In connection with our audit, we have not found any indication that special benefits (beyond

this) as defined under Sec. 5 (1) no. 8 UmwG have been granted.

6. Consequences for the employees (§ 5 (1) no. 9 UmwG)

40. With respect to the consequences of the merger for the employees and their representatives,

please refer to Art. 5 of the merger agreement as well as the corresponding references in the

merger report.

41. We did not ascertain any further reportable consequences of the merger for the employees

as defined under Sec. 5 (1) no. 9 UmwG in connection with our audit. In connection with our

audit, we also found no indications that contradict the disclosures in the merger agreement.

7. Statement disclosing the squeeze-out of minority shareholders (Sec. 62 (5) sen-tence 2 UmwG)

42. Art. 2 no. 3 of the merger agreement contains a statement declaring the intention to squeeze

out the minority shareholders of the transferring company in connection with the merger pur-

suant to Sec. 62 (5) UmwG in conjunction with Sec. 327a to 327f AktG and highlights the

interdependence of the merger and squeeze-out processes. According to the documents

provided to us, the statements are factually correct.


43. The intention is for the annual general meeting of the transferring company to pass a resolu-

tion within three months after conclusion of the merger agreement pursuant to Sec. 62 (5)

sentence 1 UmwG in conjunction with Sec. 327a (1) sentence 1 AktG ("squeeze-out resolu-

tion") regarding the transfer of the shares of minority shareholders of RTT to 3DS as the ma-

jority shareholder in exchange for an adequate cash settlement to be paid by 3DS, the

amount of which is to be set in the squeeze-out resolution.

44. The extraordinary general meeting of RTT, in which the transfer of the shares of RTT to 3DS

is to be approved, is to take place on 17 October 2014 and therefore within the specified

three month deadline.

II. Accuracy of the optional provisions of the merger agreement

45. The merger agreement contains the following optional provisions:

In Art. 6 the agreement of a rolling merger date is presented.

The facts with respect to the effectiveness of the merger agreement are presented in

Art. 7 of the merger agreement. Furthermore, the voluntary agreement is mentioned in

Art. 7 no. 4 with respect to the right of rescission.

The planned name change of 3DS is specified in Art. 8 of the merger agreement.

Furthermore, in Art. 9 of the merger agreement the allocation of costs is mentioned as

a voluntary agreement.

The severability clause is cited in Art. 10 of the merger agreement.

The German version of the agreement is specified in Art. 11 of the merger agreement

as the binding language version.

46. The optional provisions of the merger agreement are inherently consistent. The facts repre-

sented in the optional provisions correspond the actual circumstances, the contained projec-

tions and assessments are plausible. Within the scope of our audit we did not obtain any

information that speak against the correctness and/or the effectiveness of these provisions.


D. Results of the audit and concluding statement

47. We conducted an audit of the merger agreement between of 3DS Acquisition AG, Frankfurt

am Main, and Realtime Technology Aktiengesellschaft, Munich, on the basis of our appoint-

ment as a result of the decision handed down by the Munich Regional Court I dated 24 June

2014.

48. Based on our audit, we find that the draft of the merger agreement established on 28 August

2014 completely and accurately contains the minimum required components prescribed in

Sec. 5 (1) nos. 1, 2, 6, 7, 8, and 9 UmwG as well as Sec. 62 (5) sentence 2 UmwG and thus

corresponds to the legal provisions.

49. In connection with our merger audit, we did not become aware of indications that speak

against the accuracy of the optional additional disclosures in the merger agreement.

50. In a squeeze-out in connection with a corporate merger pursuant to Sec. 62 (5) UmwG in

conjunction with Sec. 327a et seqq. AktG, no shares in the acquiring company are granted to

the shareholders of the transferring company. The acquiring company is not carrying out a

capital increase to execute the merger.

51. Since all shares of the transferring legal entity will be held by the acquiring legal entity when

the merger takes effect, the disclosures regarding the exchange of shares can be omitted in

the merger agreement (Sec. 5 (1) nos. 3 - 5 UmwG) to the extent that they relate to the ac-

quisition of this legal entity.

52. Accordingly, the statement required under Sec. 12 (2) sentence 1 UmwG to be provided by

the auditor of a merger regarding whether the recommended exchange ratio of the shares

and the amount of any additional cash payment or membership in the acquiring entity repre-

sents adequate consideration.

53. The disclosures required as a general rule in the long-form audit report of a merger with

respect to the methods applied to determine an exchange ratio (Sec. 12 (2) sentence 2

no. 1 UmwG), their appropriateness (Sec. 12 (2) sentence 2 no. 2 UmwG), the exchange

ratio that would have resulted from the use of an alternative method, and what particular diffi-

culties arose in the valuation of the legal entity (Sec. 12 (2) sentence 2 no. 3 UmwG) are

likewise omitted.

54. In light of this, this long-form audit report does not close with a statement as defined under

Sec. 5 (1) in conjunction with Sec. 12 (2) UmwG regarding the appropriateness of the ex-

change ratio as well as regarding the method of determining the exchange ratio and their

appropriateness.

55. Instead, the closing statement solely relates to the completeness and accuracy of the

disclosures contained in the merger agreement pursuant to Sec. 5 UmwG.


56. Therefore, based on the result of our audit, we make the following closing statement based

on the clarifications and evidence made available to us as well as the information and expla-

nations provided:

“The draft of the merger agreement between 3DS Acquisition AG, Frankfurt am Main, and

Realtime Technology Aktiengesellschaft, Munich, established on 28 August 2014 completely

and accurately contains the minimum disclosures required under the law pursuant to Sec. 5

and Sec. 62 (5) sentence 2 UmwG. The optional disclosures contained in the merger agree-

ment are correct.”

We are issuing this report on the basis of the documents and information provided to us and

taking into account the professional standards as established especially in Sec. 2 and

Sec. 43 of the Act on the Code of Professional Practice for German Public Auditors

[Wirtschaftsprüferordnung].

Essen, 29 August 2014

IVC Independent Valuation & Consulting

Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Dr. Jörn Schulte Dr. Lars Franken

(Wirtschaftsprüfer) (Wirtschaftsprüfer)

[German Public Auditor] [German Public Auditor]

Annex 1

Annex 2

Annex 3

Allgemeine Auftragsbedingungenfür

Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaftenvom 1. Januar 2002

1. Geltungsbereich 7. Weitergabe einer beruflichen Äußerung des Wirtschaftsprüfers

(1) Die Auftragsbedingungen gelten für die Verträge zwischen Wirtschafts-prüfern oder Wirtschaftsprüfungsgesellschaften (im nachstehendenzusammenfassend „Wirtschaftsprüfer genannt) und ihren Auftraggebern überPrüfungen, Beratungen und sonstige Aufträge, soweit nicht etwas anderesausdrücklich schriftlich vereinbart oder gesetzlich zwingend vorgeschriebenist.

(1) Die Weitergabe beruflicher Äußerungen des Wirtschaftsprüfers(Berichte, Gutachten und dgl.) an einen Dritten bedarf der schriftlichenZustimmung des Wirtschaftsprüfers, soweit sich nicht bereits aus demAuftragsinhalt die Einwilligung zur Weitergabe an einen bestimmten Drittenergibt.Gegenüber einem Dritten haftet der Wirtschaftsprüfer (im Rahmen von Nr. 9)nur, wenn die Voraussetzungen des Satzes 1 gegeben sind.

(2) Werden im Einzelfall ausnahmsweise vertragliche Beziehungen auchzwischen dem Wirtschaftsprüfer und anderen Personen als demAuftraggeber begründet, so gelten auch gegenüber solchen Dritten dieBestimmungen der nachstehenden Nr. 9.

(2) Die Verwendung beruflicher Äußerungen des Wirtschaftsprüfers zuWerbezwecken ist unzulässig; ein Verstoß berechtigt den Wirtschaftsprüferzur fristlosen Kündigung aller noch nicht durchgeführten Aufträge desAuftraggebers.

2. Umfang und Ausführung des Auftrages8. Mängelbeseitigung

(1) Gegenstand des Auftrages ist die vereinbarte Leistung, nicht einbestimmter wirtschaftlicher Erfolg. Der Auftrag wird nach den Grundsätzenordnungsmäßiger Berufsausübung ausgeführt. Der Wirtschaftsprüfer istberechtigt, sich zur Durchführung des Auftrages sachverständiger Personenzu bedienen.

(1) Bei etwaigen Mängeln hat der Auftraggeber Anspruch aufNacherfüllung durch den Wirtschaftsprüfer. Nur bei Fehlschlagen derNacherfüllung kann er auch Herabsetzung der Vergütung oderRückgängigmachung des Vertrages verlangen; ist der Auftrag von einemKaufmann im Rahmen seines Handelsgewerbes, einer juristischen Persondes öffentlichen Rechts oder von einem öffentlich-rechtlichenSondervermögen erteilt worden, so kann der Auftraggeber dieRückgängigmachung des Vertrages nur verlangen, wenn die erbrachteLeistung wegen Fehlschlagens der Nacherfüllung für ihn ohne Interesse ist.Soweit darüber hinaus Schadensersatzansprüche bestehen, gilt Nr. 9.

(2) Die Berücksichtigung ausländischen Rechts bedarf - außer bei betriebs-wirtschaftlichen Prüfungen - der ausdrücklichen schriftlichen Vereinbarung.

(3) Der Auftrag erstreckt sich, soweit er nicht darauf gerichtet ist, nicht aufdie Prüfung der Frage, ob die Vorschriften des Steuerrechts oderSondervorschriften, wie z. B. die Vorschriften des Preis-, Wettbewerbs-beschränkungs- und Bewirtschaftungsrechts beachtet sind; das gleiche giltfür die Feststellung, ob Subventionen, Zulagen oder sonstigeVergünstigungen in Anspruch genommen werden können. Die Ausführungeines Auftrages umfasst nur dann Prüfungshandlungen, die gezielt auf dieAufdeckung von Buchfälschungen und sonstigen Unregelmäßigkeitengerichtet sind, wenn sich bei der Durchführung von Prüfungen dazu einAnlass ergibt oder dies ausdrücklich schriftlich vereinbart ist.

(2) Der Anspruch auf Beseitigung von Mängeln muß vom Auftraggeberunverzüglich schriftlich geltend gemacht werden. Ansprüche nach Abs. 1, dienicht auf einer vorsätzlichen Handlung beruhen, verjähren nach Ablauf einesJahres ab dem gesetzlichen Verjährungsbeginn.

(3) Offenbare Unrichtigkeiten, wie z. B. Schreibfehler, Rechenfehler undformelle Mängel, die in einer beruflichen Äußerung (Bericht, Gutachten unddgl.) des Wirtschaftsprüfers enthalten sind, können jederzeit vom Wirt-schaftsprüfer auch Dritten gegenüber berichtigt werden. Unrichtigkeiten, diegeeignet sind, in der beruflichen Äußerung des Wirtschaftsprüfers enthalteneErgebnisse in Frage zu stellen, berechtigen diesen, die Äußerung auchDritten gegenüber zurückzunehmen. In den vorgenannten Fällen ist derAuftraggeber vom Wirtschaftsprüfer tunlichst vorher zu hören.

(4) Ändert sich die Rechtslage nach Abgabe der abschließendenberuflichen Äußerung, so ist der Wirtschaftsprüfer nicht verpflichtet, denAuftraggeber auf Änderungen oder sich daraus ergebende Folgerungenhinzuweisen.

3. Aufklärungspflicht des Auftraggebers9. Haftung

(1) Für gesetzlich vorgeschriebene Prüfungen gilt die Haftungs-beschränkung des § 323 Abs. 2 HGB.

(2) Haftung bei Fahrlässigkeit, Einzelner Schadensfall

Falls weder Abs. 1 eingreift noch eine Regelung im Einzelfall besteht, ist dieHaftung des Wirtschaftsprüfers für Schadensersatzansprüche jeder Art, mitAusnahme von Schäden aus der Verletzung von Leben, Körper undGesundheit, bei einem fahrlässig verursachten einzelnen Schadensfall gem.§ 54 a Abs. 1 Nr. 2 WPO auf 4 Mio. € beschränkt; dies gilt auch dann, wenneine Haftung gegenüber einer anderen Person als dem Auftraggeberbegründet sein sollte. Ein einzelner Schadensfall ist auch bezüglich einesaus mehreren Pflichtverletzungen stammenden einheitlichen Schadensgegeben. Der einzelne Schadensfall umfaßt sämtliche Folgen einerPflichtverletzung ohne Rücksicht darauf, ob Schäden in einem oder inmehreren aufeinanderfolgenden Jahren entstanden sind. Dabei giltmehrfaches auf gleicher oder gleichartiger Fehlerquelle beruhendes Tunoder Unterlassen als einheitliche Pflichtverletzung, wenn die betreffendenAngelegenheiten miteinander in rechtlichem oder wirtschaftlichemZusammenhang stehen. In diesem Fall kann der Wirtschaftsprüfer nur biszur Höhe von 5 Mio. € in Anspruch genommen werden. Die Begrenzung aufdas Fünffache der Mindestversicherungssumme gilt nicht bei gesetzlichvorgeschriebenen Pflichtprüfungen.

(1) Der Auftraggeber hat dafür zu sorgen, daß dem Wirtschaftsprüfer auchohne dessen besondere Aufforderung alle für die Ausführung des Auftragesnotwendigen Unterlagen rechtzeitig vorgelegt werden und ihm von allenVorgängen und Umständen Kenntnis gegeben wird, die für die Ausführungdes Auftrages von Bedeutung sein können. Dies gilt auch für die Unterlagen,Vorgänge und Umstände, die erst während der Tätigkeit desWirtschaftsprüfers bekannt werden.

(2) Auf Verlangen des Wirtschaftsprüfers hat der Auftraggeber dieVollständigkeit der vorgelegten Unterlagen und der gegebenen Auskünfteund Erklärungen in einer vom Wirtschaftsprüfer formulierten schriftlichenErklärung zu bestätigen.

4. Sicherung der Unabhängigkeit

Der Auftraggeber steht dafür ein, daß alles unterlassen wird, was die Unab-hängigkeit der Mitarbeiter des Wirtschaftsprüfers gefährden könnte. Dies giltinsbesondere für Angebote auf Anstellung und für Angebote, Aufträge aufeigene Rechnung zu übernehmen.

5. Berichterstattung und mündliche Auskünfte

Hat der Wirtschaftsprüfer die Ergebnisse seiner Tätigkeit schriftlich darzu-stellen, so ist nur die schriftliche Darstellung maßgebend. Bei Prüfungsauf-trägen wird der Bericht, soweit nichts anderes vereinbart ist, schriftlicherstattet. Mündliche Erklärungen und Auskünfte von Mitarbeitern desWirtschaftsprüfers außerhalb des erteilten Auftrages sind stets unverbindlich.

(3) Ausschlußfristen

Ein Schadensersatzanspruch kann nur innerhalb einer Ausschlußfrist voneinem Jahr geltend gemacht werden, nachdem der Anspruchsberechtigtevon dem Schaden und von dem anspruchsbegründenden Ereignis Kenntniserlangt hat, spätestens aber innerhalb von 5 Jahren nach dem anspruchs-begründenden Ereignis. Der Anspruch erlischt, wenn nicht innerhalb einerFrist von sechs Monaten seit der schriftlichen Ablehnung der ErsatzleistungKlage erhoben wird und der Auftraggeber auf diese Folge hingewiesenwurde.

6. Schutz des geistigen Eigentums des Wirtschaftsprüfers

Der Auftraggeber steht dafür ein, daß die im Rahmen des Auftrages vomWirtschaftsprüfer gefertigten Gutachten, Organisationspläne, Entwürfe,Zeichnungen, Aufstellungen und Berechnungen, insbesondere Massen- undKostenberechnungen, nur für seine eigenen Zwecke verwendet werden.

Das Recht, die Einrede der Verjährung geltend zu machen, bleibt unberührt.Die Sätze 1 bis 3 gelten auch bei gesetzlich vorgeschriebenen Prüfungen mitgesetzlicher Haftungsbeschränkung.

520011/2002

Lizenziert für/Licensed to: IVC Independent Valuation & Consulting AG WPG | 4433081 | 315

10 Ergänzende Bestimmungen für Prüfungsaufträge

(1) Eine nachträgliche Änderung oder Kürzung des durch denWirtschaftsprüfer geprüften und mit einem Bestätigungsvermerk versehenenAbschlusses oder Lageberichts bedarf, auch wenn eine Veröffentlichungnicht stattfindet, der schriftlichen Einwilligung des Wirtschaftsprüfers. Hat derWirtschaftsprüfer einen Bestätigungsvermerk nicht erteilt, so ist ein Hinweisauf die durch den Wirtschaftsprüfer durchgeführte Prüfung im Lageberichtoder an anderer für die Öffentlichkeit bestimmter Stelle nur mit schriftlicherEinwilligung des Wirtschaftsprüfers und mit dem von ihm genehmigtenWortlaut zulässig.

(2) Widerruft der Wirtschaftsprüfer den Bestätigungsvermerk, so darf derBestätigungsvermerk nicht weiterverwendet werden. Hat der Auftraggeberden Bestätigungsvermerk bereits verwendet, so hat er auf Verlangen desWirtschaftsprüfers den Widerruf bekanntzugeben.

(3) Der Auftraggeber hat Anspruch auf fünf Berichtsausfertigungen.Weitere Ausfertigungen werden besonders in Rechnung gestellt.

11. Ergänzende Bestimmungen für Hilfeleistung in Steuersachen

(1) Der Wirtschaftsprüfer ist berechtigt, sowohl bei der Beratung insteuerlichen Einzelfragen als auch im Falle der Dauerberatung die vomAuftraggeber genannten Tatsachen, insbesondere Zahlenangaben, alsrichtig und vollständig zugrunde zu legen; dies gilt auch fürBuchführungsaufträge. Er hat jedoch den Auftraggeber auf von ihmfestgestellte Unrichtigkeiten hinzuweisen.

(2) Der Steuerberatungsauftrag umfaßt nicht die zur Wahrung von Fristenerforderlichen Handlungen, es sei denn, daß der Wirtschaftsprüfer hierzuausdrücklich den Auftrag übernommen hat. In diesem Falle hat derAuftraggeber dem Wirtschaftsprüfer alle für die Wahrung von Fristenwesentlichen Unterlagen, insbesondere Steuerbescheide, so rechtzeitigvorzulegen, daß dem Wirtschaftsprüfer eine angemessene Bearbeitungszeitzur Verfügung steht.

(3) Mangels einer anderweitigen schriftlichen Vereinbarung umfaßt dielaufende Steuerberatung folgende, in die Vertragsdauer fallendenTätigkeiten:

a) Ausarbeitung der Jahressteuererklärungen für die Einkommensteuer,Körperschaftsteuer und Gewerbesteuer sowie derVermögensteuererklärungen, und zwar auf Grund der vom Auftraggebervorzulegenden Jahresabschlüsse und sonstiger, für die Besteuerungerforderlicher Aufstellungen und Nachweise

b) Nachprüfung von Steuerbescheiden zu den unter a) genannten Steuernc) Verhandlungen mit den Finanzbehörden im Zusammenhang mit den

unter a) und b) genannten Erklärungen und Bescheidend) Mitwirkung bei Betriebsprüfungen und Auswertung der Ergebnisse von

Betriebsprüfungen hinsichtlich der unter a) genannten Steuerne) Mitwirkung in Einspruchs- und Beschwerdeverfahren hinsichtlich der

unter a) genannten Steuern.

Der Wirtschaftsprüfer berücksichtigt bei den vorgenannten Aufgaben diewesentliche veröffentlichte Rechtsprechung und Verwaltungsauffassung.

(4) Erhält der Wirtschaftsprüfer für die laufende Steuerberatung einPauschalhonorar, so sind mangels anderweitiger schriftlicherVereinbarungen die unter Abs. 3 d) und e) genannten Tätigkeiten gesondertzu honorieren.

(5) Die Bearbeitung besonderer Einzelfragen der Einkommensteuer,Körperschaftsteuer, Gewerbesteuer, Einheitsbewertung undVermögensteuer sowie aller Fragen der Umsatzsteuer, Lohnsteuer,sonstigen Steuern und Abgaben erfolgt auf Grund eines besonderenAuftrages. Dies gilt auch für

a) die Bearbeitung einmalig anfallender Steuerangelegenheiten, z. B. aufdem Gebiet der Erbschaftsteuer, Kapitalverkehrsteuer,Grunderwerbsteuer,

b) die Mitwirkung und Vertretung in Verfahren vor den Gerichten derFinanz- und der Verwaltungsgerichtsbarkeit sowie in Steuerstrafsachenund

c) die beratende und gutachtliche Tätigkeit im Zusammenhang mitUmwandlung, Verschmelzung, Kapitalerhöhung und -herabsetzung,Sanierung, Eintritt und Ausscheiden eines Gesellschafters,Betriebsveräußerung, Liquidation und dergleichen.

(6) Soweit auch die Ausarbeitung der Umsatzsteuerjahreserklärung alszusätzliche Tätigkeit übernommen wird, gehört dazu nicht die Überprüfungetwaiger besonderer buchmäßiger Voraussetzungen sowie die Frage, oballe in Betracht kommenden umsatzsteuerrechtlichen Vergünstigungenwahrgenommen worden sind. Eine Gewähr für die vollständige Erfassungder Unterlagen zur Geltendmachung des Vorsteuerabzuges wird nichtübernommen.

12. Schweigepflicht gegenüber Dritten, Datenschutz

(1) Der Wirtschaftsprüfer ist nach Maßgabe der Gesetze verpflichtet, überalle Tatsachen, die ihm im Zusammenhang mit seiner Tätigkeit für denAuftraggeber bekannt werden, Stillschweigen zu bewahren, gleichviel, ob essich dabei um den Auftraggeber selbst oder dessen Geschäftsverbindungenhandelt, es sei denn, daß der Auftraggeber ihn von dieser Schweigepflichtentbindet.

(2) Der Wirtschaftsprüfer darf Berichte, Gutachten und sonstigeschriftliche Äußerungen über die Ergebnisse seiner Tätigkeit Dritten nur mitEinwilligung des Auftraggebers aushändigen.

(3) Der Wirtschaftsprüfer ist befugt, ihm anvertraute personenbezogeneDaten im Rahmen der Zweckbestimmung des Auftraggebers zu verarbeitenoder durch Dritte verarbeiten zu lassen.

13. Annahmeverzug und unterlassene Mitwirkung des Auftraggebers

Kommt der Auftraggeber mit der Annahme der vom Wirtschaftsprüferangebotenen Leistung in Verzug oder unterläßt der Auftraggeber eine ihmnach Nr. 3 oder sonst wie obliegende Mitwirkung, so ist der Wirtschaftsprüferzur fristlosen Kündigung des Vertrages berechtigt. Unberührt bleibt derAnspruch des Wirtschaftsprüfers auf Ersatz der ihm durch den Verzug oderdie unterlassene Mitwirkung des Auftraggebers entstandenenMehraufwendungen sowie des verursachten Schadens, und zwar auchdann, wenn der Wirtschaftsprüfer von dem Kündigungsrecht keinenGebrauch macht.

14. Vergütung

(1) Der Wirtschaftsprüfer hat neben seiner Gebühren- oderHonorarforderung Anspruch auf Erstattung seiner Auslagen; dieUmsatzsteuer wird zusätzlich berechnet. Er kann angemessene Vorschüsseauf Vergütung und Auslagenersatz verlangen und die Auslieferung seinerLeistung von der vollen Befriedigung seiner Ansprüche abhängig machen.Mehrere Auftraggeber haften als Gesamtschuldner.

(2) Eine Aufrechnung gegen Forderungen des Wirtschaftsprüfers aufVergütung und Auslagenersatz ist nur mit unbestrittenen oder rechtskräftigfestgestellten Forderungen zulässig.

15. Aufbewahrung und Herausgabe von Unterlagen

(1) Der Wirtschaftsprüfer bewahrt die im Zusammenhang mit derErledigung eines Auftrages ihm übergebenen und von ihm selbstangefertigten Unterlagen sowie den über den Auftrag geführtenSchriftwechsel zehn Jahre auf.

(2) Nach Befriedigung seiner Ansprüche aus dem Auftrag hat derWirtschaftsprüfer auf Verlangen des Auftraggebers alle Unterlagenherauszugeben, die er aus Anlaß seiner Tätigkeit für den Auftrag von diesemoder für diesen erhalten hat. Dies gilt jedoch nicht für den Schriftwechselzwischen dem Wirtschaftsprüfer und seinem Auftraggeber und für dieSchriftstücke, die dieser bereits in Urschrift oder Abschrift besitzt. DerWirtschaftsprüfer kann von Unterlagen, die er an den Auftraggeberzurückgibt, Abschriften oder Fotokopien anfertigen und zurückbehalten.

16. Anzuwendendes Recht

Für den Auftrag, seine Durchführung und die sich hieraus ergebendenAnsprüche gilt nur deutsches Recht.


Annex 4

[Translator's notes are in square brackets]

General Engagement Termsfor

Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften[German Public Auditors and Public Audit Firms]

as of January 1, 2002

This is an English translation of the German text, which is the sole authoritative version

1. Scope

(1) These engagement terms are applicable to contracts between Wirt-schaftsprüfer [German Public Auditors] or Wirtschaftsprüfungsgesellschaften[German Public Audit Firms] (hereinafter collectively referred to as the"Wirtschaftsprüfer") and their clients for audits, consulting and other engagementsto the extent that something else has not been expressly agreed to in writing or isnot compulsory due to legal requirements.

(2) lf, in an individual case, as an exception contractual relations have alsobeen established between the Wirtschaftsprüfer and persons other than theclient, the provisions of No. 9 below also apply to such third parties.

2. Scope and performance of the engagement

(1) Subject of the Wirtschaftsprüfer's engagement is the performance of agreedservices - not a particular economic result. The engagement is performed inaccordance with the Grundsätze ordnungsmäßiger Berufsausübung [Standardsof Proper Professional Conduct]. The Wirtschaftsprüfer is entitled to use qualifiedpersons to conduct the engagement.

(2) The application of foreign law requires - except for financial attestationengagements - an express written agreement.

(3) The engagement does not extend - to the extent it is not directed thereto - toan examination of the issue of whether the requirements of tax law or specialregulations, such as, for example, laws on price controls, laws limiting competitionand Bewirtschaftungsrecht [laws controlling certain aspects of specific businessoperations] were observed; the same applies to the determination as to whethersubsidies, allowances or other benefits may be claimed. The performance of anengagement encompasses auditing procedures aimed at the detection of thedefalcation of books and records and other irregularities only if during the conductof audits grounds therefor arise or if this has been expressly agreed to in writing.

(4) If the legal position changes subsequent to the issuance of the finalprofessional statement, the Wirtschaftsprüfer is not obliged to inform the client ofchanges or any consequences resulting therefrom.

3. The client's duty to inform

(1) The client must ensure that the Wirtschaftsprüfer - even without his specialrequest - is provided, on a timely basis, with all supporting documents andrecords required for and is informed of all events and circumstances which maybe significant to the performance of the engagement. This also applies to thosesupporting documents and records, events and circumstances which first becomeknown during the Wirtschaftsprüfer's work.

(2) Upon the Wirtschaftsprüfer's request, the client must confirm in a writtenstatement drafted by the Wirtschaftsprüfer that the supporting documents andrecords and the information and explanations provided are complete.

4. Ensuring independence

The client guarantees to refrain from everything which may endanger theindependence of the Wirtschaftsprüfer's staff. This particularly applies to offers ofemployment and offers to undertake engagements on one's own account.

5. Reporting and verbal information

lf the Wirtschaftsprüfer is required to present the results of his work in writing,only that written presentation is authoritative. For audit engagements the long-form report should be submitted in writing to the extent that nothing else has beenagreed to. Verbal statements and information provided by the Wirtschaftsprüfer'sstaff beyond the engagement agreed to are never binding.

6. Protection of the Wirtschaftsprüfer's intellectual property

The client guarantees that expert opinions, organizational charts, drafts,sketches, schedules and caIculations - expecially quantity and cost computations- prepared by the Wirtschaftsprüfer within the scope of the engagement will beused only for his own purposes.

7. Transmission of the Wirtschaftsprüfer's professional statement

(1) The transmission of a Wirtschaftsprüfer's professional statements (long-form reports, expert opinions and the like) to a third party requires theWirtschaftsprüfer's written consent to the extent that the permission to transmit toa certain third party does not result from the engagement terms.

The Wirtschaftsprüfer is liable (within the limits of No. 9) towards third parties onlyif the prerequisites of the first sentence are given.

(2) The use of the Wirtschaftsprüfer's professional statements for promotionalpurposes is not permitted; an infringement entitles the Wirtschaftsprüfer toimmediately cancel all engagements not yet conducted for the client.

8. Correction of deficiencies

(1) Where there are deficiencies, the client is entitled to subsequent fulfillment[of the contract]. The client may demand a reduction in fees or the cancellation ofthe contract only for the failure to subsequently fulfill [the contract]; if theengagement was awarded by a person carrying on a commercial business aspart of that commercial business, a government-owned legal person under publiclaw or a special government-owned fund under public law, the client may demandthe cancellation of the contract only if the services rendered are of no interest tohim due to the failure to subsequently fulfill [the contract]. No. 9 applies to theextent that claims for damages exist beyond this.

(2) The client must assert his claim for the correction of deficiencies in writingwithout delay. Claims pursuant to the first paragraph not arising from anintentional tort cease to be enforceable one year after the commencement of thestatutory time limit for enforcement.

(3) Obvious deficiencies, such as typing and arithmetical errors and formelleMängel [deficiencies associated with technicalities] contained in aWirtschaftsprüfer's professional statements (long-form reports, expert opinionsand the like) may be corrected - and also be applicable versus third parties - bythe Wirtschaftsprüfer at any time. Errors which may call into question theconclusions contained in the Wirtschaftsprüfer's professional statements entitlethe Wirtschaftsprüfer to withdraw - also versus third parties - such statements. Inthe cases noted the Wirtschaftsprüfer should first hear the client, if possible.

9. Liability

(1) The liability limitation of § ["Article"] 323 (2)["paragraph 2"] HGB["Handelsgesetzbuch": German Commercial Code] applies to statutory auditsrequired by law.

(2) Liability for negligence; An individual case of damagesIf neither No. 1 is applicable nor a regulation exists in an individual case, pursuantto § 54a (1) no. 2 WPO ["Wirtschaftsprüferordnung": Law regulating theProfession of Wirtschaftsprüfer] the liability of the Wirtschaftsprüfer for claims ofcompensatory damages of any kind - except for damages resulting from injury tolife, body or health - for an individual case of damages resulting from negligenceis limited to € 4 million; this also applies if liability to a person other than the clientshould be established. An individual case of damages also exists in relation to auniform damage arising from a number of breaches of duty. The individual caseof damages encompasses all consequences from a breach of duty without takinginto account whether the damages occurred in one year or in a number ofsuccessive years. In this case multiple acts or omissions of acts based on asimilar source of error or on a source of error of an equivalent nature are deemedto be a uniform breach of duty if the matters in question are legally oreconomically connected to one another. In this event the claim against theWirtschaftsprüfer is limited to € 5 million. The limitation to the fivefold of theminimum amount insured does not apply to compulsory audits required by law.

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(3) Preclusive deadlinesA compensatory damages claim may only be lodged within a preclusive deadlineof one year of the rightful claimant having become aware of the damage and ofthe event giving rise to the claim - at the very latest, however, within 5 yearssubsequent to the event giving rise to the claim. The claim expires if legal actionis not taken within a six month deadline subsequent to the written refusal ofacceptance of the indemnity and the client was informed of this consequence.

The right to assert the bar of the preclusive deadline remains unaffected.Sentences 1 to 3 also apply to legally required audits with statutory liability limits.

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10. Supplementary provisions for audit engagements

(1) A subsequent amendment or abridgernent of the financial statements ormanagement report audited by a Wirtschaftsprüfer and accompanied by anauditor's report requires the written consent of the Wirtschaftsprüfer even if thesedocuments are not published. If the Wirtschaftsprüfer has not issued an auditor'sreport, a reference to the audit conducted by the Wirtschaftsprüfer in themanagement report or elsewhere specified for the general public is permitted onlywith the Wirtschaftsprüfer's written consent and using the wording authorized byhim.

(2) lf the Wirtschaftsprüfer revokes the auditor's report, it may no longer beused. lf the client has already made use of the auditor's report, he must announceits revocation upon the Wirtschaftsprüfer's request.

(3) The client has a right to 5 copies of the long-form report. Additional copieswill be charged for separately.

11. Supplementary provisions for assistance with tax matters

(1) When advising on an individual tax issue as well as when furnishingcontinuous tax advice, the Wirtschaftsprüfer is entitled to assume that the factsprovided by the client - especially numerical disclosures - are correct andcomplete; this also applies to bookkeeping engagements. Nevertheless, he isobliged to inform the client of any errors he has discovered.

(2) The tax consulting engagement does not encompass procedures required tomeet deadlines, unless the Wirtschaftsprüfer has explicitly accepted theengagement for this. In this event the client must provide the Wirtschaftsprüfer,on a timely basis, all supporting documents and records - especially taxassessments - material to meeting the deadlines, so that the Wirtschaftsprüferhas an appropriate time period available to work therewith.

(3) In the absence of other written agreements, continuous tax adviceencompasses the following work during the contract period:

a) preparation of annual tax returns for income tax, corporation tax andbusiness tax, as well as net worth tax returns on the basis of the annualfinancial statements and other schedules and evidence required for taxpurposes to be submitted by the client

b) examination of tax assessments in relation to the taxes mentioned in (a)c) negotiations with tax authorities in connection with the returns and

assessments mentioned in (a) and (b)

d) participation in tax audits and evaluation of the results of tax audits withrespect to the taxes mentioned in (a)

e) participation in Einspruchs- und Beschwerdeverfahren [appeals andcomplaint procedures] with respect to the taxes mentioned in (a).

In the afore-mentioned work the Wirtschaftsprüfer takes material published legaldecisions and administrative interpretations into account.

(4) If the Wirtschaftsprüfer receives a fixed fee for continuous tax advice, in theabsence of other written agreements the work mentioned under paragraph 3 (d)and (e) will be charged separately.

(5) Services with respect to special individual issues for income tax, corporatetax, business tax, valuation procedures for property and net worth taxation, andnet worth tax as well as all issues in relation to sales tax, wages tax, other taxesand dues require a special engagement. This also applies to:

a) the treatment of nonrecurring tax matters, e. g. in the field of estate tax,capital transactions tax, real estate acquisition tax

b) participation and representation in proceedings before tax andadministrative courts and in criminal proceedings with respect to taxes,and

c) the granting of advice and work with respect to expert opinions inconnection with conversions of legal form, mergers, capital increases andreductions, financial reorganizations, admission and retirement ofpartners or sharehoIders, sale of a business, liquidations and the like.

(6) To the extent that the annual sales tax return is accepted as additional work,this does not include the review of any special accounting prerequisities nor of theissue as to whether all potential legal sales tax reductions have been claimed. Noguarantee is assumed for the completeness of the supporting documents andrecords to validate the deduction of the input tax credit.

12. Confidentiality towards third parties and data security

(1) Pursuant to the law the Wirtschaftsprüfer is obliged to treat all facts that hecomes to know in connection with his work as confidential, irrespective of whetherthese concern the client himself or his business associations, unless the clientreleases him from this obligation.

(2) The Wirtschaftsprüfer may only release long-form reports, expert opinionsand other written statements on the results of his work to third parties with theconsent of his client.

(3) The Wirtschaftsprüfer is entitled - within the purposes stipulated by the client- to process personal data entrusted to him or allow them to be processed by thirdparties.

13. Default of acceptance and lack of cooperation on the part of the client

lf the client defaults in accepting the services offered by the Wirtschaftsprüfer or ifthe client does not provide the assistance incumbent on him pursuant to No. 3 orotherwise, the Wirtschaftsprüfer is entitled to cancel the contract immediately.The Wirtschaftsprüfer's right to compensation for additional expenses as well asfor damages caused by the default or the lack of assistance is not affected, evenif the Wirtschaftsprüfer does not exercise his right to cancel.

14. Remuneration(1) In addition to his claims for fees or remuneration, the Wirtschaftsprüfer isentitled to reimbursement of his outlays: sales tax will be billed separately. Hemay claim appropriate advances for remuneration and reimbursement of outlaysand make the rendering of his services dependent upon the complete satisfactionof his claims. Multiple clients awarding engagements are jointly and severallyliable.

(2) Any set off against the Wirtschaftsprüfer's claims for remuneration andreimbursement of outlays is permitted only for undisputed claims or claimsdetermined to be legally valid.

15. Retention and return of supporting documentation and records

(1) The Wirtschaftsprüfer retains, for ten years, the supporting documents andrecords in connection with the completion of the engagement - that had beenprovided to him and that he has prepared himself - as well as the correspondencewith respect to the engagement.

(2) After the settlement of his claims arising from the engagement, theWirtschaftsprüfer, upon the request of the client, must return all supportingdocuments and records obtained from him or for him by reason of his work on theengagement. This does not, however, apply to correspondence exchangedbetween the Wirtschaftsprüfer and his client and to any documents of which theclient already has the original or a copy. The Wirtschaftsprüfer may prepare andretain copies or photocopies of supporting documents and records which hereturns to the client.

16. Applicable law

Only German law applies to the engagement, its conduct and any claims arisingtherefrom.


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:498480

ILJR

SX

0

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