S4FE Whitepaper

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S4FE MEMORANDUM FOR THE SALE OF TOKEN

MEMORANDUM 01.01.2019 FOR THE SALE OF TOKEN OF THE S4FE FOUNDATION AS APPROVED BY THE FOUNDATION BOARD ON JANUARY 1, 2019

Memorandum for the Sale of Token GENERAL INFORMATION FOR THE SALE OF TOKEN Issuer Rights and Equity S4FE Foundation, KY1-1106 Grand Cayman, No beneficiary rights of the S4FE Foundation and Cayman Islands, as owner of the token offered for no voting rights are obtained through the purchase sale herein, represented by the Chairman of the of token offered herein. Board, confirms that all information contained in this document is correct and that no substantial circumstances have been left out. Tax Matters Grand Cayman, January 1, 2019 It is recommended that each potential subscriber to the token offered herein should inquire in Diego Mourad their country of residence concerning the tax Chairman of the Board S4FE Foundation implications relative to the purchase of token. Registration Jurisdiction The S4FE Foundation was incorporated on The issuing company is a foundation subject September 21, 2018 in George Town, Cayman to the laws of Cayman Islands. The board of Islands under the registration number GC-342760. directors and officers act in accordance with the company’s bylaws and articles of incorporation and declare, that, at present, there are no pending Issue Volume court proceedings that could have an effect on the company’s economic situation. A total of 1.000.000.000 Token are issued. Payments Dividends All payments for the purchase of token referred to There will be no disbursement of dividends and no in this memorandum are to be paid by wire transfer such disbursement is intended in the future. to the address of the company. Issue Purpose The purpose of this token sale is to raise the necessary capital for implementing the company’s strategic business plan for the development and market introduction of a blockchain technology based search network for property items. Minimum Subscription Equivalent of 50.000 CHF in traded S4FE token (S4F) at the daily exchange rate.* * The daily exchange rate can be viewed at www.coinmarketcap.com. 3

Blockchain is a revolution of security in the digital world. S4FE is an interface that transfers this revolution to the real world.

CONTENT EXECUTIVE SUMMARY 10 The S4FE Idea 12 Market Overview 14 The S4FE Network 18 Portfolio 21 Identity Protection 22 Cooperations 26 Benefits 28 Marketing Strategy 30 Business Model Canvas 32 SWOT Analysis 33 Why S4FE BUSINESS PLAN 36 General Business Plan 38 Financial Plan 45 S4FE Management S4FE TOKEN SALE 48 Important Notice for Token Buyers 52 Disclaimer 54 The S4FE Token 55 Token Sales Contract (Sample) Documents Review All documents pertaining to this memorandum can be reviewed at the foundation’s offices, S4FE Foundation, KY1-1106 Grand Cayman, Cayman Islands, or at one of the foundation’s representative offices.

THE PROBLEM Theft and fencing* crime are two growing global problems. The most effective catalyst to these problems is to identify rightful property ownership in a practical and reliable way. All property possesses a market value, and when property is stolen, that market value is reduced, but there still remains the trading value. This trading value is the incentive for theft and fencing crime. *The act of reselling stolen property

THE SOLUTION At this time there is no way to know who owns what property, so thieves and fencers can make money with their crimes. Making objects identifiable will decrease the value of stolen objects. Individuals participating in fencing will begin to have items taken away from them, as police return stolen items to their rightful owners. Fencing profits will be drastically reduced, and eventually, these crimes will cease to be profitable.

EXECUTIVE SUMMARY

Memorandum for the Sale of Token THE S4FE IDEA The right idea at the right time S4FE is a decentralized search network for property, i.e. physical objects, that is based on blockchain technology. Similar to the wide spread search-engines on the Internet, users can add and search entries. The difference of the S4FE search engine is that the network is made up of physical objects. In addition, having blockchain technology as the foundation of the network allows all user transactions and personal data to be cryptographically anonymized. The concept resembles a global lost-and-found office: the S4FE network’s main goal is to find and identify lost or stolen objects, in order to return them to their rightful owners. To achieve this, the S4FE network is accessible to everyone and offers users two general functions: • Objects can be registered and reported to the network in case of loss or theft. • Objects can be searched, verified and reported as discovered, i.e. if a user discovers an object previously reported as lost or stolen by the rightful owner. The term Object describes nearly any conceivable form of physical property, that represents a value to its owner. Next to valuables and objects of any kind, this term also includes pets and animals in general. Background Even with today’s technology it is not possible to report stolen or lost physical objects, or property in general, in real-time through a convenient, anonymous, user friendly manner, and to make such information available worldwide. Therefore, there is no possibility to inquire the ownership status of an object through a global search network, i.e. if an object is found or intended for purchase. For this reason the chances of locating stolen or lost items, in most cases, are very slim. This lack of a reliable system is what makes theft and all connected crime possible. Criminals can easily and openly move stolen goods and market them anywhere in the world. The reasons for this problem are: loss and theft themselves, varying international jurisdictions, laws, data- base formats and access rights, as well as very slow administrative processes. The combination of these factors completely obstruct the flow, exchange and accessibility of information pertaining to property ownership. Mission S4FE’s mission is to fight organized crime, theft and fencing with an effective tool. The strategy is to provide people around the world the possibility to protect their property, which will render theft and fencing crime unattractive, as their initial incentives diminish. Through cooperations with official authorities and commercial partners, constant innovation and through implementation of a rewards program that animates participation in the network, S4FE will provide a service to the public by effectively reducing crime. 10

Memorandum for the Sale of Token THE S4FE IDEA Protecting Value by Creating Value S4FE’s goal is to protect property, while at the same time creating added value for network users. This is achieved through a strategy, that is based on four central elements: Protect Identify Prevent Reward S4FE protects property and ownership identity by creating a network, where the ownership status of objects and owner identities can be registered in cryptographically anonymized form. S4FE offers users the ability to verify and identify the ownership status of objects anytime and anywhere in a practical and convenient way. S4FE prevents theft and fencing crime by making property ownership status identifiable, thus eliminating the trading value of lost and stolen goods, which at the same time eliminates the incentive for crime. S4FE rewards the active participation in the network and fights crime by rewarding users for identifying and reporting lost or stolen objects to the network. This strategy is put into effect by the S4FE network itself: it provides the possibility to register property, which makes the ownership status identifiable, therefore preventing crime, and rewards users for their participation in the network. First Mover As Innovation Engine S4FE will establish its services in the market as the First Mover and secure its position by consequently expanding the company’s technological lead through the development of new products and innovative solutions. The initiators are convinced that S4FE holds immense potential for improving security and reducing crime on a global scale. If the ownership status of property is identifiable anywhere and anytime, theft simply becomes unattractive. S4FE will certainly not solve the global crime problem, but considering its dimension, even a reduction by 0,1 % would represent an improvement for society and establish S4FE to a leading company in the field of security and crime prevention. 11

Memorandum for the Sale of Token MARKET OVERVIEW Reference Market Germany The presented figures intend to provide an impression of the scale of theft crime and the problem of lost items in a country regarded as safe and well organized due to the high level of presence of law enforcement agencies and officers. According to official crime statistics and police reports issued in 2017 by the German Federal Ministry of the Interior, over 2,3 million cases of theft were reported in Germany in 2016. The actual number of cases is likely to be substantially higher, because not all thefts are reported. It is estimated, that only approx. 25 % of all theft crimes are reported. An interesting fact is, that theft represents 37.3% of the total crimes reported, making it the largest single portion of all recorded crimes. At the same time, theft is the area with a frighteningly low level of solved cases: in 2016 only 31,120 cases of stolen property were solved. This equals a reconnaissance rate of approx. 1.2 % resulting in approx. 2,3 million items not returned to their rightful owners. These figures only represent half of the picture: these statistics, that only represent stolen property, must be complemented by the approx. 100 million items that are reported lost per year in Germany. With only about 20 % being retrieved, this results in about 80 million items lost forever, large part of which will reenter the market through fencing crime. As with stolen objects, the statistics only depict part of the volume, as only about 30 % of lost objects are reported. Therefore, the actual number of lost objects can be assumed to be substantially higher. Global Market To demonstrate the magnitude of stolen and lost property on a global scale, the following figures give further insight into international statistics. 400 Million Objects are reported lost per year in the USA. 7.1 Million Vehicles are stolen every year in over 150 countries. 5.5 Million Burglaries per year are reported worldwide. 3 Million Baggage Items are reported lost in the EU every year. 2.9 Million Bicycles per year are reported stolen in the EU. 12.000 Laptops disappear from airports in the USA every week. 3.000 Laptops disappear every week from the 8 largest airports in the EU. Considering these facts, it seams realistic to assume that the total global volume of lost and stolen objects worldwide results in far more than 1 Billion objects per year. This inconceivable volume translates into a market potential of 1 Billion transactions for S4FE. 12

Memorandum for the Sale of Token MARKET OVERVIEW The S4FE Concept S4FE‘s concept is based on a number of public and individual needs, which in total represent a large demand. S4FE intends to fulfill this demand by rendering a service to society, while at the same time establishing a valid business model. Theft Crime is unfortunately a growing problem in our society and S4FE has recognized the importance of reducing it. Therefore, given the proportion of this issue and since it concerns everyone, any reduction of crime, even if only marginal, can be considered as service to society. Protecting Property is a natural public and individual requirement and increasing property safety is an obvious need - especially in light of the ever present crime issue. Therefore, any increment of property security can be considered as fulfillment of a public and individual demand. Security is an issue of growing importance in many societies around the world. Life has become unsafe and many people long for the feeling of security. By protecting their property and knowing that theft crime is declining, this feeling of security can be regained. Locating Property, while at the same time adhering to privacy protection, is an additional need that unfortunately is not thoroughly attended to, although today’s technology could solve this problem to a great extent. Considering the nearly inconceivable amount of lost and stolen items worldwide, providing technologies and services that render property location possible are to be regarded as service to society. Unclear Property Ownership is one of the basic sources for the problem of theft and all related forms of crime. Obviously, criminal energy itself is another source, but if property ownership is clearly identifiable, respectively items locatable, then a fundamental motive for theft and fencing is eliminated. If an item cannot be sold, traded or marketed because it is identifiable as lost or stolen and locatable, it simply looses its value. Additionally, identifiable ownership and locatable items drastically increase the risk of being caught when marketing such items. This fact further adds to the risk of crime itself to the point of making it unattractive or simply put, too risky. Instead of developing a product for which a demand must first be generated by creating a need, S4FE has developed a solution for an existing demand and reacts to an urgent global need. 13

Memorandum for the Sale of Token THE S4FE NETWORK Basic Functions of the S4FE Network The core offering of S4FE is a network, that offers the following basic functions to all users free of charge: • • Registration as user of the S4FE network. • Registration, management and transfer of property rights of the object inventory. • Search, verification, identification of objects in the network (i.e. when found or intended for purchase). Reporting of discovered / identified objects (with lost / stolen ownership status in the network). Registration as User Users register through the S4FE app to access the interface, where they can import an existing (digital) wallet or generate one locally to manage their S4FE token. In order to register, users must provide common identification information. As soon as this process is completed, users can register, organize or report objects and manage their token. Registration, Management and Transfer of Ownership Rights Users register and manage objects through options of the interface. In order to register an object unique identification vectors, like a serial number and a specific object description must be provided and assigned to a corresponding object category. As an alternative, when no serial number is available, visual features of the object can be collected via photo and / or video to enable pattern recognition. Upon object registration users must confirm that they are in legal ownership of the registered object. This regulation shall prevent users from registering objects, that are not their legal possession. This could be the case, if users seek to register found or stolen objects in their name and would imply intentional fraud. Nevertheless, it is improbable that users will attempt to register found or stolen objects as their property, because by doing so would imply voluntarily informing a global network that they are in illegal possession of such objects. In cases of doubtful or incomplete ownership and object information, or in cases of registration attempts with identical object information, S4FE will request additional proof of ownership in form of bills, contracts or any other type of ownership proof, in order to clearly confirm ownership status. As soon as an object has been registered in the network, users can instantly report a theft or loss through the S4FE app. Once an object is reported as lost or stolen, it will immediately (real-time) be tagged as such in the S4FE network and it will be recognizable as a lost or stolen object to users worldwide. In addition, users can transfer property ownership of their objects, i.e. when an object is sold over the S4FE network. Personal information of users and object owners is only visible for S4FE and other network users with the explicit approval of the owner of the information. Registration in the network, as well as the registration, search and identification of objects is anonymized and encrypted in compliance with data privacy and protection regulations. 14

Memorandum for the Sale of Token THE S4FE NETWORK Search, Verification and Identification Users search, verify and identify objects through the search function of the S4FE app. By providing unique identification information through the various upload options, the network can be browsed for matching objects. This function is available any time and any where, which is crucial for S4FE’s practicability: if a user finds an object or intends a purchase (private sale) the ownership status of the object can verified immediately. This function prevents unintended purchases of stolen or lost property and reduces fencing crime. In addition, the finder can initiate the return of lost objects they discover. To do so, users report discovered objects through the reporting option of the S4FE App, which is available during the search process. (This option becomes available, if a search has resulted in the identification of a matching object. In such cases users can choose to inform S4FE about their discovery.) Reporting the discovery of a lost or stolen object requires the submission of information proving that the discovered object has in fact been located, and that it is identical to the object reported as lost or stolen in the network. For this reason, reporting the discovery of an object will only be recognized by the network, if its unique identification information is provided by proof of serial number and / or visual confirmation through photo and / or video. Through this process unjustified and inaccurate reports of discovered items are to be kept to a minimum. Basic Functions Registration, Search, Verification and Reporting TRANSFER OF OWNERSHIP RIGHTS REGISTER SEARCH AND AS USER VERIFY OBJECTS USER USER (OWNER) REGISTER REPORT OBJECTS OBJECTS S4FE NETWORK Value Creates Growth S4FE’s mission and vision is to protect value by creating value. Therefore, there is no Paywall (mandatory payment for services rendered) for the basic functions. Nevertheless, the full functionality and operability of the network can be provided and secured through these free basic functions. Through participation in the network free of charge users are animated to activity and value is created. This strategy enables a rapid growth of the network, thus increasing its effectiveness, which further increases user value: the more users participate in the network, the higher its coverage is. This results in an increment of prevented and resolved cases and this means increased property security. 15

Memorandum for the Sale of Token THE S4FE NETWORK Extended Functions of the S4FE Network S4FE aims to protect property and reduce crime by making theft and fencing less attractive and more risky. This mission can only be fulfilled, if the network has a high number of users. In addition, the effectiveness of the network is determined by the activity of the network participants. Therefore it is the goal to animate as many users as possible to participate in the network and to actively participate in the network.. To achieve this, the S4FE Rewards Program based on Smart Contracts was developed as an extended function of the network. This program is designed to encourage users to participate and engage in activity by receiving a reward in S4FE token from legitimate owners for reporting discovered objects marked as lost or stolen. The amount of each reward will be set by the owner when they report the loss or theft of an item. The Smart Contracts are depicted as S4FE token within the system and are required for participation in the S4FE Rewards program, as the token depicts the escrow contract between S4FE and the donor (owner) and recipient (finder) of the reward. This escrow contract certifies the contractual conditions and ensures that the tendered reward by the donor can only be granted if two conditions are fulfilled: 1. Identification of the object is confirmed 2. The object is returned When the contract is activated and the reward is tendered, a commission of 25% of the reward is automatically deducted and credited to the S4FE network. In addition, the reward donor must determine a period for which the reward will be tendered. As soon as the contract is activated, the tendered reward remains bound to the escrow contract after deduction of S4FE’s commission until: • the period specified has expired. • the reported object was found or returned and the reward was paid out. • the notification status of the object is canceled. (This can be the case, if an object that was believed to have been lost or stolen was found by the owner himself.) The transfer of the reward to the S4FE escrow account ensures that the tendered reward can be paid out to the finder of the property if necessary. The use of the token or smart contract ensures that no subsequent changes can be made to the contract conditions. The S4FE Rewards program is divided into two rewards: Flag Reward and Success Reward. The tendered reward is divided between these two rewards according to the following key: • Flag Reward 20 %: is granted if the identification of the object has been confirmed. • Success Reward 80 % : is granted if the object was returned to the owner. As soon as the respective condition has been fulfilled, the corresponding reward is granted. The fulfillment of the requirements must be confirmed by the owner of the object (reward donor) so that the reward can be paid out to the recipient’s wallet. 16

Memorandum for the Sale of Token THE S4FE NETWORK S4FE Rewards Requirements The Flag Reward is granted if a user has identified an object reported as lost or stolen. For this purpose, the user must report via the app where and in what condition the object is located, who owns it or, if applicable, offers it for sale. In addition, the identification features must be verified by entering serial numbers or uploading photos and / or videos. If possible, the location should be determined and transmitted via the geodata of the mobile phone. The owner of the object receives the finder’s information via the S4FE app and can then confirm or reject it. Any exchange of object information takes place via the communication function of the S4FE App. Thus the identity of the users is always preserved. If the information confirms that the detected object is a lost or stolen object, the user receives the Flag Reward. In this case, S4FE will initiate a series of processes to return the object to its rightful owner. This can be done, for example, by making information available to the responsible authorities. The procedure depends on the nature of the object, its location and other individual circumstances. After reporting a discovered object and initiating appropriate measures, users have the opportunity to earn the Success Reward: The Success Reward is granted if the information provided leads to an object being returned to its rightful owner. This can be done, for example, by the object being taken into custody by an authority and being returned to the rightful owner. This reward is only granted after the owner has received the object back and marked it as received in the system. Basic Functions and Rewards Program DEPOSIT PAY OUT REWARDS S4FE ESCROW REWARDS COMMISSION REPORT LOSS SEARCH AND OR THEFT VERIFY OBJECTS USER USER (OWNER) TENDER REPORT REWARD OBJECTS S4FE NETWORK RETURN OBJECT THROUGH S4FE The Rewards Program ensures that S4FE can provide the basic functions of the network free of charge. At the same time the economic interests of the company are safeguarded through the participation in paid rewards. 17

Memorandum for the Sale of Token PORTFOLIO Additional S4FE Products and Services (Non-Commercial Users) In order to diversify the product portfolio and use the know-how available in the company, S4FE offers a range of other products / product lines in addition to the S4FE network: S4FE Online Shop The online shop serves to generate further revenues from the number of users in the network by leading users to the online shop in order to purchase products there. Furthermore, the online shop serves the marketing of own products which S4FE has already developed or which are in development. The online shop is divided into areas for private and commercial users: Private Users can purchase security products from S4FE and third parties. This area is also accessible to users not registered in the S4FE network. Commercial Users have access to specialized services offered by S4FE via a business area. This area is exclusively accessible to commercial cooperation partners of S4FE. S4FE C0D3 The S4FE C0D3 is a coding system that allows users to protect almost any object with a code. The individual code is generated by the app, giving users two options: 1. print the personal code on a sticker (adhesive foil) and attach it to the object. 2. print the personal code and have it applied to the object through laser engraving.* The object can then be registered with its S4FE C0DE as a (further) identification feature in the personal inventory. The S4FE C0D3 also serves as a marketing tool, which will be used for promotional purposes. For this purpose, forgery-proof stickers with individual codes are distributed free of charge. These can then be attached to any object and registered in the S4FE network. S4FE TR4CK3R The S4FE TR4CK3R is planed in two different versions: 1. A positioning transmitter based on satellite positioning technology that allows the S4FE App to locate almost any type of object to which a tracker can be attached. 2. A RFID technology based transmitter that enables the S4FE App to identify and verify any object on which the tracker is mounted. These technologies have already been developed to production maturity by third-party suppliers and will become part of the product portfolio as sourced products. In addition to that, S4FE will dedicate itself intensively to the further development of these technologies in order to make them smaller and more efficient while also making a way to develop specialized products and applications: e.g. Bike Tracker, Key Tracker, Pet Tracker, etc. S4FE is also committed to the development of new technologies for the production of its products. * Laser engraving is a process that is widely offered. S4FE will create a directory with providers in the course of the market introduction of the S4FE C0D3, in order to guarantee a simple, transparent and convenient procedure for users. 18

Memorandum for the Sale of Token PORTFOLIO Additional S4FE Products and Services (Commercial Users) S4FE is a decentralized network that generates and processes large amounts of data. This data is generally divided into three overlapping categories: Data from Registrations • Object Data: specific properties of the registered objects • Geographical Distribution: where which objects are registered • Grouping: which objects are frequently registered in conjunction with other objects Data from Objects • Value: specific values of individual objects and total value of individual inventories • State: individual states of objects • Age: age and usage period of specific objects • Frequency: the quantities of how many certain objects exist. Data from Movement • Theft: which objects are stolen • Loss: which objects are lost • Recovery: which objects are recovered / discovered • Geographical Distribution: where which objects are stolen / lost or rediscovered Data from Users • Gender Classification: which gender register which objects • Age Classification: which age groups register which objects • Distribution: how objects are distributed among specific owners • Grouping: which groupings exist among specific owners • Theft: which users (groups) suffer theft (location, time, frequency) • Loss: which users (groups) suffer losses (location, time, frequency) • Replacement: which users (groups) discover objects (location, time, frequency) All data is generated and processed completely anonymously. Neither S4FE nor third parties can view any identity or personal data. All data is processed in strict compliance with the General Data Protection Regulation (GDPR). Data that S4FE makes available to commercial partners does not allow any conclusions to be drawn about the identities of the original producers of this data. 19

Memorandum for the Sale of Token PORTFOLIO Additional S4FE Products and Services (Commercial Users) The above listing of data is only an exemplary excerpt of the total data volume, as several thousand possible data records and data combinations can be generated. Search algorithms can then be used to generate specific statistics from existing data sets. There are almost as many possible search algorithms as there are data sets. Therefore, a few examples are listed below: • which objects are most frequently registered? • which objects are most frequently lost? • where (town, city, district, etc.) are which objects stolen most frequently? • how often are certain objects (e.g. bicycles) stolen at a certain location (e.g. Zürich)? • which objects still register owners of bicycles? • what is the average value of mobile phones lost by users aged 14-18? This list of search algorithms can be continued and this is important for S4FE, because such data has a very high value for many companies. On the one hand, because the procurement of such data is very complex, on the other hand, because the generation of such specific data is very cost-intensive - at least for enterprises which are not specialized in the generation of such data. The possibility to access such data sets with individual search algorithms are of interest and of high value, especially for companies dealing with risk assessment and forecasting. First and foremost, insurers should be mentioned in this context: they can use such data sets, for example, to determine where most vehicles are stolen. As a consequence, they could then refuse to insure vehicles from these areas and thus reduce claims settlements. The unique data quality of the data generated by S4FE is not only of great use for internal purposes: due to its almost unlimited combination possibilities, such data also enables the development of diverse applications: e.g. a tour operator could offer an app that shows in which city or district the crime rate is particularly high. This would prevent tourists from getting into such areas unknowingly. On the other hand, an insurer could use the same data to determine on which type of trips or in which places tourists most frequently report theft and then offer special insurance for this purpose. Consider the value of social media portals, which can estimate by means of photos and entries which hobbies the platform participants have, or which places they like to travel, for example. S4FE’s data sets have a significantly higher quality, because they can provide, for example, information about which model of a certain object is particularly popular with which age group, and which other objects the owners of this object usually own. This is much more valuable information than the knowledge about the identities of the owners as generated by social media platforms. Monetization of Data Obviously, the monetization of user data is a big and much-discussed problem. Social media platforms in particular have discredited this field of business by constantly disregarding all laws. S4FE cannot violate any laws because all data is cryptographically encrypted. Thus any negligent handling of identity data is 100% impossible. Moreover, the business model is not based on identity data but on anonymous movement and property data of objects, combined with classifications, such as age or gender groups, which neither allow conclusions to be drawn about identities nor contain any sensitive data. 20

Memorandum for the Sale of Token IDENTITY PROTECTION Encryption of Personal Data in the Network As previously stated, all object and owner data, i.e. identity data, is cryptographically encrypted and thus anonymized. This is the reason why S4FE is based on blockchain technology which also enables reliable cryptographic encryption. By anonymizing data, it is impossible for network participants to associate any objects with their owners - and vice versa. This is not only important for data protection reasons, but also for the security of the network participants: it excludes the possibility of criminals being able to spy on potential victims. S4FE also does not know the individual object and owner data, with the exception of the login data ( basic data ) provided by the user during registration. This data is used exclusively for administration and communication with users. Conclusions about objects registered by users in their portfolio cannot be drawn from this basic data. Release of Personal Data in the Network It is the sole responsibility of the users as the owner of their personal object and identity data to decide on their release. The release of such data may be necessary, for example: • Owner and finder of an object want to communicate directly (both agree) • The owner and finder agree that the finder will return the object directly to the owner. • Owner wants to release data for use / communication with authorities • Owner wants S4FE to act as intermediary for the repatriation of the property Returning Objects Due to the anonymity of the network participants, it is not possible to return objects to their owners if they refuse to release their identity data. For this reason, users can use S4FE as an intermediary by sending the objects to S4FE (or a S4FE contractor). Since S4FE has the basic data, objects can be sent to the addresses stored in this data. In general, owners and finders can establish direct communication via the S4FE app and organize the return of an object between themselves. This is particularly useful if there is a geographical proximity. This could be the case, for example, if someone loses an object which is found minutes later. The owner and finder of the object could therefore organize themselves in an uncomplicated way and agree on the return. Since shipping costs will be incurred for the return of objects in certain cases, the principle of freight collect always applies: Depending on the country and individual circumstances, shipments must be marked as freight collect or handled according to this principle. This means that the recipient always bears the costs of the return. If a freight collect shipment is not possible and the finder pays the costs, S4FE will ask the recipient to reimburse the finder for these expenses. This reimbursement also takes place through S4FE token. S4FE can also act as an intermediary to organize the return of the object in the event of a disagreement regarding the return conditions. 21

Memorandum for the Sale of Token COOPERATIONS Implementation of S4FE with Official Authorities S4FE intends to establish long-term cooperations with public or official authorities, organizations and institutions that are, in the broadest sense, connected with the fight against crime. This is due to the well- known problem that the networking of international authorities has various weaknesses. This particularly concerns the free flow of information and cross-border, shared access to data (databases). Incompatible legislation and slow administration intensify the problems and it is not foreseeable when and if a mutually agreed solution will be reached at an international level in the near future. Nevertheless, even if a large number of authorities involved in investigation and prosecution were to join forces in the shortest possible time, this would not solve the problem of the identifiability of property or ownership of objects, since networking international databases does not include those actually affected: The owners. For a search network like S4FE to work, owners must have the ability to register, verify and report lost, stolen and discovered objects. This possibility does not exist on the part of official authorities: there is no practicable application for this, which is also globally networked and it can only be estimated how long it would take for all participants of an international project of this magnitude to agree on a system or procedure. It is also questionable whether all authorities and institutions could agree to develop a system based on blockchain technology to ensure the anonymity of users. In addition, it is unlikely that representatives of public authorities would agree on a rewards program similar to the S4FE Rewards Program. But this is a fundamental basis to generate network participation and activity, without which such a system is almost inoperable. S4FE is therefore a valuable service for public authorities from a third party that is not dependent on public decision-making processes and can therefore quickly implement an effective solution to the problem. In cooperation with public authorities, S4FE pursues a clear goal: to equip as many officers, patrols, investigators, and customs officials as possible with the S4FE App. Technically this is already feasible in many countries, since today almost every officer has a mobile phone. In case of suspicion, this would make it possible to check the property status of objects carried at every traffic or identity check on the spot in real time. A possibility that was previously unavailable. By using S4FE, the investigation and prosecution of theft criminality and fencing will become much more efficient and the reconnaissance rates will increase. This, in turn, is the primary motive of any authority involved in fighting crime: a high rate of solving crimes. Not only internal processes, such as promotions, depend on this, but in many countries the success rates also determine the amount of funds granted by the state. In addition, the use of S4FE can significantly reduce administrative costs and the workload of public authorities. This is also an important argument for the implementation of S4FE. 22

Memorandum for the Sale of Token COOPERATIONS Strategy for Official Cooperation Partners The expansion of S4FE will make it more difficult for criminals to move stolen property: the risk of being caught increases dramatically with S4FE. The increasing risk of being caught acquiring or possessing stolen property also affects the willingness of potential buyers of stolen property to buy, as the risk of being caught acquiring stolen property also increases. These facts promote the success rates of the authorities and are an argument for the implementation of S4FE. To encourage participation in the network, S4FE pursues a two-stage strategy: 1. S4FE incentives public authorities through the rewards program and the increase of the crime solving rates (besides the animation through the above mentioned added values). 2. Authorities encourage their staff to use S4FE with the rewards program and the prospect of an increase in the number of resolved cases. Through this strategy, S4FE can provide the authorities as decision-makers with convincing arguments and at the same time present arguments that will result in the actual use of S4FE as a service. Basic Functions and Rewards Program for Official Cooperation Partners DEPOSIT PAY OUT REWARDS S4FE ESCROW REWARDS COMMISSION REPORT LOSS SEARCH AND OR THEFT VERIFY OBJECTS USER AUTHORITY (OWNER) (INTERFACE OFFICERS) TENDER REPORT REWARD OBJECTS S4FE NETWORK RETURN OBJECT THROUGH S4FE OFFICERS Revenues from cooperations with official authorities are also generated through the S4FE Rewards Program, in which S4FE participates through a 25% commission. The difference to private users lies in the fact that authorities (their employees) will not register their own objects as users, but will use the network for searching, verifying and identifying objects. The Rewards Program and the rewards granted can be used by public authorities, for example, to create incentives and reward their employees for success - but only if they are allowed to do so. Otherwise, distributed rewards may be donated or used for charitable purposes. 23

Memorandum for the Sale of Token COOPERATIONS Implementation of S4FE with Commercial Partners Commercial partners will also benefit from an implementation of S4FE, as they will be able to diversify their portfolio by connecting to the network and offer added value to their customers. In addition, commercial partners benefit from an image transfer through the implementation: offering a service such as S4FE creates an image gain. Manufacturing partners can protect their products along the entire supply chain and beyond: preventing theft and product piracy. The benefit is also transferred to the end users who have the ability to verify the authenticity of their product. An implementation of S4FE for commercial partners is particularly interesting from the point of view of cost- benefit or make or buy analysis: The cost that would be necessary to develop such a system would be much too high compared to the implementation of an existing system. For this reason, S4FE has developed a cooperation model in which the network can be seamlessly integrated into the corporate identity of the cooperation partners as a white label. This model provides for one-time setup costs for the implementation and for the operation of the network to be mapped via a subscription, e.g. for product registration of manufacturing companies. In return, S4FE offers a turnkey system that can be integrated at low cost. This makes S4FE attractive for various reasons: Portfolio Diversification: Partners can expand their portfolio and thus broaden their base. Added Value: Partners can offer their customers added value in conjunction with their own products. Image Gain: Partners profit from the image gain as innovators. Make or Buy: Partners bear no development costs and the system can be seamlessly integrated. Profitability: Partners can generate profits relatively quickly. Product Protection: Partners (manufacturers) can protect products along the entire supply chain. Brand Protection: Partners can protect products against counterfeiting (piracy). Customer protection: Product protection is transferred to customers through product verifiability. Commercial cooperation partners can be e.g. insurance companies, manufacturers, wholesalers and retailers, companies from the tourism industry, gastronomy, hotels or any form of company that trades in goods or is affected by theft and loss in the broadest sense. Since the given framework is not sufficient and the added value that an implementation of S4FE generates can be transferred to other forms of business in a comprehensible way, some of the advantages of insurance as a cooperation partner are considered here as examples: Among other things, insurance companies can encourage existing and new customers to participate in the network by granting them discounts on policies if they register their property in the network. This results in a recognizable added value for all parties involved: • existing / new customers can be incentivized / rewarded / recruited with attractive offers. • all customers benefit from the possibility to secure their property. • the offer / product quality (portfolio quality) of the insurer increases. • the insurer benefits from an increase in customers or a satisfied customer base. • The insurer can generate additional profit. • Image transfer or image gain for the insurer. In addition to these added values, the implementation of S4FE provides insurance companies with a further, vital added value: the reduction of internal costs, because the reduction of damage claims also reduces the costs for compensation and administrative expenses. 24

Memorandum for the Sale of Token COOPERATIONS Strategy with Commercial Cooperation Partners In order to maximize the effectiveness of the S4FE network, a high number of participants is important. This encourages not only individual and public users but also commercial users and cooperation partners to participate. This is done via a two-stage strategy: 1. S4FE incentivizes commercial users by participating in the rewards program (in addition to the animation through the previously mentioned added values). 2. Commercial users animate their customers (users) with attractive offers or combinations with their product portfolio. The combination of this strategy with the above-mentioned strategies for animating individual and public users results in an overall strategy that covers almost all social strata. Commercial partners are particularly important for S4FE, as they already have customer bases and can thus drive the growth of the network in the shortest possible time. The mutual added value of cooperation with commercial partners is an immense advantage when it comes to acquiring partners, and considering the number of potential partners worldwide, rapid growth seems very realistic. Basic Functions and Rewards Program for Commercial Cooperation Partners DEPOSIT PAY OUT REWARDS S4FE ESCROW REWARDS COMMISSION REPORT LOSS SEARCH AND AND THEFT VERIFY OBJECTS COMPANY USER (INTERFACE CUSTOMERS) TENDER REPORT REWARD OBJECTS S4FE NETWORK RETURN OBJECT THROUGH S4FE CUSTOMERS Commercial cooperation partners are to be regarded as individual users, as they, in contrast to official cooperation partners, will also register objects. The difference is that they may register larger quantities of objects, or that several users (customers of the partner) are assigned to a cooperation partner as users. This depends on whether they register their own objects, e.g. inventories or company equipment, or whether they want to offer the service to their customers. 25

Memorandum for the Sale of Token BENEFITS Who will profit from S4FE? Although the benefits of the S4FE network are comprehensible, the following section will look at a few scenarios that briefly highlight individual use cases: Owners can secure objects and, if necessary, report them to the network as lost or stolen. By tendering a reward, all network participants receive an incentive to search for and identify the reported property, which increases the chances of discovery and return. In addition, owners who register objects in the S4FE network enjoy a higher sense of security and have less fear of loss or theft as the network spreads, due to the decrease in theft crime. Users can search, verify and identify (stolen / lost) items they find or intend to buy on the S4FE network in order to receive the tendered rewards. They can also help to return these items to their rightful owners. In addition to a possible reward, users also benefit from significantly greater security in their purchases, as they can avoid unknowingly acquiring stolen goods in the form of lost or stolen objects. Authorities such as police, customs or any investigating authority can achieve significantly higher investigative efficiency by accessing the network anywhere and at any time to inspect objects. With appropriate distribution, this would result in an almost full-coverage network of officials and investigators who would be able to carry out an object verification at practically any street corner. At airports in particular, where millions of objects are visually inspected every day, the success of investigations and the identification rate of stolen goods would rise considerably. None of this is possible today and would amount to a quantum leap in the investigation strategy. In addition, the network or its use would expand relatively quickly, contributing to its efficiency. Another decisive factor is a side effect that S4FE would achieve through a high degree of awareness: The danger of being caught with stolen property is quite low nowadays. However, this risk would increase considerably and potential thieves would think twice about buying, transporting or selling stolen property. This effect would cause significant damage to crime. By using S4FE’s service, authorities can optimize and better evaluate their strategies. This can dramatically reduce the cost of ownership investigations by simplifying the associated administrative processes. In addition, the S4FE rewards program can be used to create incentives and increase budgets. 26

Memorandum for the Sale of Token BENEFITS Who will profit from S4FE? Companies benefit from integrating the S4FE network into their portfolio in very different ways, depending on the industry: The tourism industry can attract customers, for example, by offering them registration of their property as added value when traveling or staying in a hotel. The insurance industry can offer its existing customers added value by granting discounts on policies and new customers can be courted with this added value. In addition, the internal cost of settling claims is reduced as the number of losses and thefts decreases. Manufacturers can better monitor their entire logistics and, through the official use of S4FE alone, act as a deterrent to potential thieves. This reduces damages, administrative efforts and costs caused by theft and loss. By using the S4FE TR4CK3R product piracy can be virtually eliminated and the products can be tested and identified beyond the manufacturing and supply chain. Thus, the benefit is transferred to customers who can, for example, check the authenticity of products in a private sale. Wholesalers, retailers and distributors can also protect their inventory through the S4FE network, the C0D3, or the TR4CK3R, and benefit from the same effect: no one will steal objects if it is known that all inventory is registered. They can also offer their customers free added value by integrating the system. In general, the use of S4FE generates multiple benefits: • Objects are protected by registration and are identifiable as lost or stolen. • Partners who integrate the system into their portfolio benefit by offering existing and new customers free • Products can be authenticated beyond the manufacturing and supply chain. added value and a reduction of costs. • The application of S4FE has a psychological effect: if it is known that such a system exists, for example, through signs on shop windows or warehouses, etc., the fact that these products are registered and protected by S4FE will make this an extremely effective deterrent. This is even the case if the use of the system is not recognizable, because criminals can never rule out that property or objects are registered. Therefore, they cannot be sure whether objects are registered, and this dramatically increases the risk of being caught in a theft. This reduces the willingness to commit theft. The same effect occurs when trading in stolen property, i.e. fencing, because this is dependent on buyers. If, however, buyers become aware that their purchase of stolen property could be uncovered at the next traffic or identity check, then the willingness to purchase stolen goods decreases. This is why all users and society as a whole benefit from S4FE, because everyone benefits from a reduction in crime. 27

Memorandum for the Sale of Token MARKETING STRATEGY S4FE Marketing-Mix In order to achieve the company‘s goals, S4FE will focus a decisive part of its activities in the initial phase on building the brand and bringing it to the attention of the public, i.e. the users. The effectiveness and efficiency of S4FE will increase proportionally to the number of users. It is therefore of crucial importance to accompany the market entry with intensive marketing measures. Once a user base has been established in a target market, marketing expenses are reduced as a dynamic develops based on the fact that S4FE offers a high level of value, added value, security and service. This will lead to viral effects such as word of mouth and social media sharing, which have a much higher advertising value than any marketing campaign. S4FE will constantly encourage users to use the system by promoting the S4FE rewards program. In addition, the various cooperation partners will provide further impulses inviting users to use the system to gain added value or a reward. The aim is to reduce marketing costs as quickly as possible in order to increase operational efficiency and channel available resources into research and development and service. S4FE has developed a marketing campaign that includes all common digital and analogue media. The campaign is particularly focused on social media, where the dynamic effects are most pronounced. In general, the strategy is divided into two segments: • Classic Marketing • Dynamic Marketing Classic Marketing S4FE pursues a proven brand building strategy based on decades of management experience in international brand introduction and roll-out that has proven itself repeatedly. This strategy is duplicated for each country in which S4FE is implemented, taking into account local conditions. As part of this strategy, S4FE will 1. Position publications in relevant online / offline media and acquire media coverage. 2. Establish cooperations with online affiliate networks and sales channels. 3. Issue press releases and provide media packages in the local language. 4. Organize promotions at regional events, festivals, (city) festivals and other major events. 5. Acquire cooperations with commercial and official partners. 6. Acquire cooperations with airports, railway stations, etc. hubs for passenger and freight transport. 7. Enter into agreements with public figures (VIP / Role Model / Opinion Leader etc.) 28

Memorandum for the Sale of Token MARKETING STRATEGY Dynamic Marketing In addition to the classic marketing strategy, S4FE will use the advantages of dynamic marketing, which today is almost completely merged with the term social media marketing. This strategy uses the dynamics that can arise on social media platforms such as Facebook, Twitter, Reddit and the numerous blogs and forums on the Internet when topics are placed there. The strategy is to achieve the effect of indirect advertising by placing a brand or an offer and to stimulate the participants to discussions. This can also be done through incentives or similar remuneration. As soon as a topic is discussed, more and more people perceive it and the brand or product thus becomes known. If this effect is highly dynamic and the product delivers a convincing added value or benefit, then the users of such platforms will be more concerned with the product or even use it. Naturally, however, this strategy has one disadvantage: negative information spreads faster than positive information. It is therefore of crucial importance to position the brand and the product on such platforms only when product quality, security and functionality are fully guaranteed and the platform participants can clearly recognize and understand that S4FE offers them an advantageous added value and benefit. Like the classic strategy, the dynamic strategy is based on management’s experience in successfully placing brands in social media channels. In general, the strategy pursues the following goals: 1. Official S4FE presence on relevant social media platforms. 2. Proactive communication with platform participants and operators. 3. Affiliate programs for blogs / forums / portals. 4. Agreements with social media personalities and multipliers. 5. User incentives through customer referral programs. 6. Placement of the S4FE app on relevant portals / regional app stores. 7. Cooperations with content relevant portals from areas such as travel, hotel industry, gastronomy, events, rental, security, insurance etc. The combination of these strategies will make S4FE visible to a broad spectrum of potential users of all age groups and social strata, thereby achieving a visible market presence. Offering an effective and comprehensible added value for all users will add further momentum to this strategy and management believes that a large part of the target audience will choose to use S4FE. 29

Memorandum for the Sale of Token BUSINESS MODEL CANVAS A Real Solution for a Real Problem S4FE fights a rapidly increasing problem of the real world by providing practicable solutions in the real world. It is a direct, comprehensible and transparent solution to an obvious problem: User Problem Partner • Loss and theft • There are very few (if any) practicable • Property / objects difficult to protect protection services • Property / objects not locatable • Found / stolen objects cannot be identified • Risk of buying lost / stolen objects • Inventory / objects etc. are difficult to protect • Ownership of found objects are not • Product piracy is a major problem always identifiable • Insurance companies pay high indemnities • Time-consuming reporting process of loss / theft • Number of thefts increasing • Unpractical and unpleasant processes • Insufficient database communication • Low probability of reconnaissance • Time-consuming processes • Acquiring new customers often difficult User Solution Partner • Loss can be clarified and theft reduced • Can offer protection services • Property can be protected / localized • Found / stolen objects can be identified • No risk to acquire lost or stolen objects • Protection for inventory / objects • Ownership of found objects is identifiable • Reduction of compensation / payments • Real-time notification of loss / theft with • Theft crime is reduced one click • Piracy can be contained • Practical and convenient process • Efficient database communication • Significantly higher probability of clarification • Practical and convenient processes • Acquiring new customers through innovation and a unique selling proposition 30

Memorandum for the Sale of Token BUSINESS MODEL CANVAS 1 Important Partners 2 Important Activities • Developers, engineers, inventors, networks, • Expanding services, expansion into • Insurance companies, authorities, offices, • Enter into cooperations and alliances. communities, social media actors. international markets. • Promoting innovation, developing products. • Improve system efficiency. institutes, organizations, associations, trade unions. • Acquire experts and know-how from the relevant fields / industries. 3 Important Resources • Technology, artificial intelligence, innovation, experts, cooperation partners, employees, excellent working environment, networks. 4 Offer and Value User • Users can use basic functions of S4FE free of 5 Customer Relations • Interaction through social media, forums, blogs, • Property can be protected or identified and charge. • S4FE communicates with users via newsletter, marketing, consulting and information. • Rewards for finding / returning property. localized. (press) releases, updates and advice • Protection against purchase / trade of lost / • Hot-lines, chats and email support. about security, videos and tutorials. • Risk to become the victim of theft decreases. stolen property. • Probability to retrieve lost / stolen property increases. 6 Channels • Users interact with S4FE via app, email, website Partner • Companies can win new customers and • S4FE communicates actively via relevant digital and call center. • Companies can reduce internal costs and expand their product portfolio. (online) and print media (offline). • Companies benefit from image transfer. expenses. • Authorities / emergency services can verify 7 Customer Segmentation • Authorities / officials can increase the crime and identify property at any time / anywhere. • Anyone who owns, objects, documents, or • Authorities can cooperate internationally more solving rate. • Insurance, trade, manufacturers, authorities, wishes to protect information. effectively. officials, task forces, institutions. 8 Cost Structure 9 Revenues • Staff • Commissions on rewards • Research and development • Public cooperations • Consultant and legal counsel • Commercial cooperations • Products and suppliers • Online shop • Marketing and promotion 31

Memorandum for the Sale of Token SWOT ANALYSIS Strengths Weaknesses • Innovative business model • Market demand may stagnate • First Mover in market • High logistical costs for returns • B2C & B2B customer segments • Rising product costs (blockchain) • Already developed system • Complex administration for regulations • Sound business model • High system utilization (blockchain) • Service to society • Volatility of cryptocurrencies • High scalability • Negative image trend in the crypto market • Solving a global problem Opportunities Threats • Immense, unserviced demand • Further development of cryptocurrencies • Increasing crime worldwide • Changing regulations • Global potential • Possible imitators / competitors • Expansion potential • Negative reporting (crypto market) • New developments & innovations • Rapid growth • Cooperations & alliances • Dependence on blockchain • Viral marketing effects • Attacks on network • Growth and role of the cryptocurrency market Opportunities Aggressive Strategy Turnaround Strategy Weaknesses Strengths Defensive Strategy Diversified Strategy Threats 32

Memorandum for the Sale of Token WHY S4FE? Innovation As a company driven by innovation, S4FE responds to a global, urgent and previously unserviced demand with a network that brings clear benefits to all stakeholders and sets new standards in crime prevention. Service to Society S4FE does not claim to provide a service to society in order to create a catchy marketing slogan. This statement is supported by the system and the service itself, as well as by the fact that S4FE offers these services free of charge. High Added Value By participating in the S4FE network, private, official and commercial users benefit from a high added value. Property is protected, products and brands are protected, the rate of solving crime is increased, costs are reduced, profits are generated and administrative efficiency is improved. Active Participation in Crime Prevention By participating in the S4FE network, each individual user contributes to the prevention of global crime. If everyone participates, then theft and fencing have almost no chance. In this way, each individual and the community can render a valuable service to society. Expansion S4FE is planning a worldwide expansion of the network in the form of regional representative offices in order to be able to work actively on site with relevant stakeholders and other important market participants. Experienced Team More than 400 years of combined experience, passion and determination as well as numerous successes of the team members in their individual careers and a network of recognized consultants and experts distinguish the S4FE team. 33

BUSINESS PLAN

Memorandum for the Sale of Token GENERAL BUSINESS PLAN Purpose of this Business Plan The objective of this business plan is to provide interested parties with a structured and success-oriented plan and proforma financial data that reflects the projected future growth of the company, its products and services. Furthermore, this plan serves management as a template for implementing the company’s objectives in order to achieve optimal results in management, marketing, sales, distribution, development and brand building. Mission S4FE’s mission is to initially introduce the brand, products and services; and then expand globally to reduce the crime associated with theft and fencing and build a profitable business. In the long term, S4FE’s mission is to reduce the problem of crime and to be at the forefront of crime prevention worldwide. In order to achieve this goal, S4FE will use all resources for the permanent improvement of products and services, quality as well as manpower and working conditions. Goals Business plans serve to define specific quantitative and qualitative goals of the company as precisely as possible. The S4FE management, after thorough research and conservative assessment of the market potential, as well as in the derivation of the share which appears to be achievable from it, has reached the following target planning: Short-Term / Introductory Phase Expand existing management team and network of consultants based on available resources, specify strategy and set it down in strategy plans, optimize system function and service offering, launch marketing campaign, introduce brand and service and build user base. Medium-Term / Expansion Phase Expand user base, increase brand awareness and market share, expand service and product offering, generate profits, expand into 25 countries. Long-Term / Consolidation Phase Establish S4FE as a market leader, reach 10,000,000 users, increase 5% resolution rate of reported cases, product and service offerings. 36

Memorandum for the Sale of Token GENERAL BUSINESS PLAN General Strategy S4FE is a profit-oriented company that pursues the short, medium and long-term goals described above in order to steadily increase the value of the company. The general strategy is to create value through brand, customer base, systems, results, products and services. Furthermore, S4FE will enter into cooperations and partnerships and, if necessary, participate in companies in order to ensure the successful distribution of its products and services. The general management strategy is to recruit experts and highly qualified personnel in the relevant specialist areas and to offer optimal working conditions, as this is regarded as a decisive factor for the further development and growth of the company. Operative Strategy S4FE will provide innovative solutions, products and services that deliver high value and customer satisfaction. S4FE will protect intellectual property as well as the trademark. S4FE will invest in research and development to constantly offer new products, innovations and services to the market. S4FE will introduce, control and maintain a stringent customer is king strategy in all measures, processes, products, services and service. S4FE will create excellent working conditions through incentives, training, development and career options to ensure the highest levels of employee satisfaction, creativity, performance and loyalty. Financial Planning and Forecasts The following forecasts and calculations represent an analysis of the market, as well as the possibilities and dangers for the company, prepared to the best of our knowledge and sound research. There can be no guarantee that the forecasts made accurately reflect the actual development of the company and that the market potential can be exploited in accordance with the assumptions. Unpredictable forces of the market, the economy or social developments that can influence marketing, products, services or pricing make precise predictions of sales figures, profits and costs extremely difficult and unpredictable. The financial projections in this document represent the projected results for the projected period. Accordingly, the assumptions made reflect the judgment of management and its advisors based on assumptions made at the time this document was prepared in January 2019. In general, there are differences between forecast and actual results, as forecast events often do not occur as expected. Please note that such differences may be material. 37

Memorandum for the Sale of Token FINANCIAL PLAN The Business Model in Detail S4FE has developed a product for a previously unserved market and is therefore a first mover in this segment. Although S4FE’s philosophy is to provide a useful service to the public and the individual, this does not change the fact that S4FE is also a profit-oriented company. S4FE is not sponsored by any government, agency or institution and must therefore be a self-financing, profit-making company. To ensure the company’s long-term and profitable existence in the market, S4FE pursues a number of entrepreneurial goals: Generate Profits in all product and service lines Continuous Increment of net profit Expansion into international markets Establishing of cooperations and building valuable relationships and networks Providing employees with a safe and productive workplace Developing products and driving innovation forward S4FE was developed with the aim of protecting property and preventing theft and fencing. Since this protection of property and protection against crime can be regarded as fundamental needs and rights, S4FE offers the basic functions necessary to achieve this goal free of charge: Registration, reporting, verification and identification of property or objects. As previously described, S4FE’s business model is based on a diversified product portfolio, through which the company will generate revenues. The following is an overview of how the individual products in the portfolio will convert the existing market potential into sales or profits: Note: all network transactions resulting from the transfer of fees, rewards, commissions or payable services are made in S4FE token. All USD amounts are for comparative purposes only and are therefore reported in USD. Transactions take place in S4FE token at the corresponding daily exchange rate. Calculative Assumptions for Commissions in the S4FE Rewards Program With over 100 Million lost objects in Germany every year and over 400 million lost objects in the USA every year, it seems realistic to assume that the worldwide number of lost objects each year is over 1 Billion. It should also be borne in mind that these figures only represent the reported losses, not the actual number of unreported cases. As already mentioned, on average only 20-30% of the losses are officially reported. Nevertheless, the existing volume of approximately 1 Billion lost objects worldwide per year also represents a potential for S4FE: A potential of 1 Billion transactions. 38

Memorandum for the Sale of Token FINANCIAL PLAN The Business Model in Detail Even if the number of stolen objects worldwide is disregarded, the potential is still immense: assuming that S4FE would achieve a clearance rate of only 0.1%, there would be a volume of 1 million transactions in rewards, of which S4FE participates 25% in each transaction. In addition to this very conservative assumption, it is realistic to assume that billion due to the currently low reporting rate the annual volume of lost properties worldwide is rather in the range of 5-10 Billion. This would correspond to a volume of 5-10 million transactions for S4FE. For the purpose of determining a realistic assessment basis for the revenue forecast, the following assumptions were made: Depending on the value of an object a reward will be different, i.e. the more valuable an object is, the more owners are willing to pay for its discovery and if applicable, for its return. While a watch worth 250 USD may only be its owner worth an award in token equivalent to 10 USD, a watch worth 25.000 USD will probably be its owner worth an award in token equivalent to 1.000 USD. It can be assumed that a large proportion of the objects reported will be high-priced electronic devices such as smart phones, tablets and laptops, followed by jewelry and similar valuables. Since the average value of such items is often well over USD 1.000, it seems reasonable to assume that a large number of rewards will be worth approximately USD 100. This certainly applies to the bulk of cases, but it is certain that much more valuable objects such as vehicles, machines, boats, bicycles and other high-value objects with values of USD 10.000 or even USD 100.000 will be registered in the network. Rewards of several thousand USD are likely to be offered for such properties. Although rewards worth over USD 1.000 are therefore to be expected, a conservative approach was taken in the calculation and an average reward worth USD 100 was assumed. This results in an average commission of 25 USD, which represents an annual turnover of 25.000.000 USD for S4FE with a volume of 1 Million transactions. These figures are the result of an assumed market share of only 0.1%. In view of the benefits of S4FE, the service provided by S4FE to the public and the planned marketing and sales activities, the achievement of a market share of 0,5 to 1 % can be considered realistic. This would mean 5 - 10 Million transactions, which would result in a sales volume of up to 250.000.000 USD. These figures are important when determining the potential success of the company. What these figures do not express, however, is the volume of theft and receiving crimes prevented by S4FE. This volume could represent several hundred Million USD of avoided damage. 39

Memorandum for the Sale of Token FINANCIAL PLAN The Business Model in Detail In order to achieve its corporate goals and to constantly increase the volume of crimes prevented, S4FE is pursuing the vision of equipping as many police officers, law enforcement officers, investigators and agents worldwide with the S4FE App in the near future. Although it is still difficult to predict at this stage what the transaction volume will be through cooperation with public authorities, the number of officers, investigators and agents involved in crime in general from all authorities around the world makes the potential for the S4FE App almost unimaginable. Converting this potential would promote the achievement of the set objectives in three ways: High Reconnaissance Rates and a high preventive effect fulfill the goal of fighting crime. High Transaction Volume means high turnover and fulfills the goal of generating profits. High Network Demand means high usage and meets the goal of stable S4FE token demand. S4FE pursues a similar strategy in cooperation with commercial partners. The benefits of the system can be transferred to many industries: manufacturers, distributors, freight forwarders, retailers and wholesalers, rental companies, hoteliers, travel and event organizers, as well as companies that are affected by loss and theft in the broadest sense: everyone benefits from the integration of the system. The effects are the same as with official cooperations: an increased spread of the network leads to high rates of awareness, a high degree of prevention and a high transaction volume, which in turn results in a high demand for the token. Since S4FE will enter into cooperations with companies all over the world, this strategy should also result in a transaction volume of several million transactions, of which S4FE participates through the commission on paid out rewards. In addition, S4FE generates revenue through subscription models that commercial partners use to register their inventory or products in general. For the calculation of such models an average registration fee of 0,75 USD was assumed. This fee applies to each registered object. Calculations for the use of the S4FE TR4CK3R and C0D3 technology are not considered. However, cooperation with commercial partners is not limited exclusively to the active use of the network. As described above, S4FE also offers risk assessment and forecasting services. There is a large global market for this service, as the number of companies that rely on such data or whose business model is based on such data increases daily. This product division is currently in a beta phase, as a corresponding data master must first be generated. Even though this part of the product portfolio currently does not play a significant role in generating revenues, it will gain in importance as network usage increases. The Big Data market is constantly growing and S4FE‘s strategy is to position itself as a key player in this market segment. Due to the product maturity of this division, sales forecasts for this area are not currently included in the financial planning. S4FE pursues the introduction of this service with high urgency, since substantial profits for the company are to be expected in this product division. 40

Memorandum for the Sale of Token FINANCIAL PLAN The Business Model in Detail In addition to the profit centers built around the S4FE network, S4FE plans to open an online shop to market its own products as well as third-party products and services. The assumptions used for this business segment are based on statistics from online shops that sell security products. These indicators, which are more or less identical internationally, indicate a conversion rate of approx. 5 % and an average purchase amount of approx. 49 USD due to the high technical relevance of such shops. S4FE plans to establish the network and the shop in 25 countries within 3 years and forecasts a user base of 10 million users. Based on this forecast, the volume of transactions in the shop would be 500,000. Despite the aforementioned average purchase of USD 49, the calculations assume an equivalent value of USD 25, which would mean a sales volume of around USD 12.500.000 for this business segment. Like the other business segments, the online shop will significantly increase token demand and usage, as users will be able to make purchases in the shop with rewards they receive . In addition to using their token for purchases in the shop, users of the S4FE network can also sell their token at trading platforms that support S4FE token trading. DEPOSIT PAY FEES REWARDS USER USER (PRIVATE) COMMERCIAL & OFFICIAL RECEIVE RECEIVE REWARDS REWARDS S4FE NETWORK PURCHASES PURCHASES IN SHOP IN SHOP S4FE ONLINE SHOP USE OF SERVICES S4FE SERVICES TRADING PLATFORM FOR TOKEN 41

Memorandum for the Sale of Token FINANCIAL PLAN Basis of the Forecasts The sum of the product lines described above is the foundation of S4FE‘s potential success. In addition, the forecasts are based on extremely low key figures, which illustrates the conservative planning of the management. In order to produce comprehensible and realistic forecasts in the form of an established industry calculation, the assumptions listed below, which are based on the research of the management and its consultants, were used for the planning period of 3 years presented. An overview of the 3-year plan is available as a separate part of this document. All USD values represent comparative values that are converted / calculated into S4FE token at the time of the respective transaction. Assumptions User Volume 1. year: 80.429 | 2. year: 5.550.899 | 3. year: 37.976.189 Transactions (lost / stolen objects) 1 % of User Volume: 1. year: 804 | 2. year: 55.508 | 3. year: 379.761 transactions Commissions Value average commission: equivalent of USD 25 Transactions Registration (objects commercial partners) 1. year: 8.125 | 2. year: 463.986 | 3. year: 4.089.146 transactions Fees Average value registered object (commercial): equivalent of USD 0,75 Shop-Sales 5 % of user volume make purchase equivalent to USD 25 Cost of Goods Blockchain cost: USD 0,10 per transaction Shop product cost: 50 % of turnover Operative Cost HR: incl. costs for recruitment, release and / or takeovers. Rent: based on offers. Transport: incl. travel expenses, rental vehicles, company cars. IT: incl. all IT relevant expenses, services and assignments (internal & external). Research & Development: all product developments - software & hardware. Marketing: including all costs for commissions, affiliates, sales, incentives & product and service related marketing activities. Insurance: all company-related costs, excluding HR. Legal Advice & Consultants: All external consultants, service providers and freelancers. Other Equipment Cost: Cost of operating and office equipment. Investments Down-payments, deposits, office equipment Extraordinary Expenses Fees for legal affairs, patents, licenses, acquisitions Cash Flow Calculations based on an initial capital of USD 1.500.000 42

Memorandum for the Sale of Token FINANCIAL PLAN Profit & Loss Cash Flow 43

S4FE GROUP MANAGEMENT FLORIAN S4FE Foundation SOPA CEO (Chief Executive Officer) & Gründer DIEGO FLORIAN MOURAD SOPA Chairman of the Board General Manager S4FE FOUNDATION Grand Cayman | KY1-1106 | Cayman Islands [email protected] | www.s4fe.org S4FE AG ROLF GÜNTHER SEEGER FISCHER Chairman of the Board CEO (Chief Executive Officer) S4FE AG Feldstrasse 9 | Fl-9490 Vaduz | Liechtenstein [email protected] | www.s4fe.ag

Memorandum for the Sale of Token S4FE TEAM AMINO SIEGFRIED RENE WATERMANN NÄGELE LÄMMLIN COO (Chief Operating Officer) Senior Key Account Manager Customer Relations Manager NAREK HUSEN AzIz TERTERYAN CUTPIECEWALA KAUKAWALA CTO (Chief Technical Officer) Lead Smart Contract Developer Smart Contract & Blockchain Developer & Blockchain Developer VLADIMIR HAYKAz TIGRAN ANOYAN KOTANJYAN KHACHIYAN Front End Developer DevOps Engineer Film Director SASUN ABDULqADIR SAKANYAN CUTPIECEWALA Full Stack Developer Smart Contract & Blockchain Developer 45

S4FE TOKEN SALE

Memorandum for the Sale of Token IMPORTANT NOTICE FOR TOKEN BUYERS General Information The token offered herein do not constitute shares, stock interests or profit participation certificates and have not been registered under the securities laws of any country. The token sale described in this document has not been reviewed or approved by a Securities and Foreign Exchange Commission or any other government commission or regulatory authority, nor has any of the aforementioned authorities confirmed the merits of this offer or the accuracy or usefulness of this document. The information contained in this document is confidential and the property of the company. It is intended for future token buyers solely for their confidential use and subject to the express consent that such persons shall not disclose these documents or the information contained herein without the prior written permission of the company or make photocopies thereof or use this document for any purpose other than to evaluate a possible acquisition of token of the company. If a future token purchaser agrees to receive this memorandum, he is obliged to immediately return this document and any other documents or information he has received in this connection if he decides not to participate in the sale of the token. This memorandum does not claim to be complete or to contain all the information that a prospective token buyer may wish to have in order to evaluate the company. Each token buyer must make his own assessment of and rely on the company and terms of the offer, including the merits and risks associated with the purchase of token. The purchase of token is only suitable for buyers who can bear the economic risk of investing for an indefinite period and who do not require liquid funds from this purchase. Each buyer must clarify the applicable tax and legal issues. The token offered here is only offered in accordance with the conditions and descriptions stated in this memorandum, subject to prior sale. They are subject to the company’s right to withdraw or modify this offer without prior notice and to refuse any token sales in whole or in part in any order or under certain other conditions. The company will provide all token buyers and their advisors with the opportunity to ask questions and obtain answers regarding the terms and conditions of this offer and any requested documentation or other information (to the extent that the company possesses such information or can obtain it without unreasonable effort or expense) if necessary to confirm the accuracy of the information provided. This memorandum contains the summary of, and references to, certain documents and records relating to the company. These documents are either attached as an appendix or are provided by the company on request. All references and information contained herein are in all respects consistent with the contents of these documents and records. This memorandum does not constitute an offer to sell or the solicitation of an offer to buy any securities of the company in any jurisdiction in which such offer or solicitation is unlawful and is not an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is made. No person is entitled to pass on information or to make representations in connection with this sale other than the persons mentioned in this memorandum. In the case of such information or representations from other parties, they must not be regarded as authorized by the company. The token offered herein is subject to a high degree of speculation and contains material risks. The sale of token described here involves a considerable economic risk and is only intended for persons who understand these risks and can afford to take such risks. When deciding on the purchase, the token buyer must make his own assessment of the company and its offer conditions, including the risks and benefits contained therein. It may be difficult or impossible for token buyers to convert their token into cash at the desired time. 48

Memorandum for the Sale of Token IMPORTANT NOTICE FOR TOKEN BUYERS Risk Factors A purchase of the token offered herein entails considerable economic risks and is only suitable for persons who have substantial resources and can afford to bear such risks and do not need to achieve liquidity with this purchase. Each token buyer should carefully consider the risk factors before purchasing the token and seek advice from their own legal, tax and financial advisors. All risks below are considered by the company to be relevant. However, the following explanations are not exhaustive and their order does not reflect their importance. In addition to the other factors contained in this memorandum, token buyers should carefully consider the risks summarized below: Business Plan The company’s business plan described in this document is a description of an assessment and analysis of the potential market and the opportunities and difficulties the company faces. This presentation has been prepared to the best of the company’s knowledge. There can be no assurance that the information contained herein accurately represents the company’s opportunities and potential for success. The competition and economic forces of distribution, the level and prices of the company’s services make it extremely difficult and unpredictable to forecast sales, revenues and costs. Competition and Market Conditions The market is very fragmented and competitive. Competitors could significantly expand their operations in the marketplace and the company’s ability to perform its business and growth strategy could be adversely affected. Ability to Sustain Expansion The company’s ability to execute its strategy for continuous growth depends on its ability to expand the size and quality of its distribution base. This requires the company to be able to aggressively market its services and offer programs that are attractive to buyers and provide a consistent quality of service that ensures the maintenance of satisfactory business relationships. Unfavorable economic or competitive developments or other events that could erode the company’s current and future distribution base could impede the company’s operations and impair its ability to achieve continued expansion. Dependence on Initiators The company assumes that the development and growth of the company to date are primarily due to the abilities of the current initiators. Although the company is expanding its management and team in connection with the expected growth, the loss of initiator services could have a material adverse effect on the company’s business in the foreseeable future. Need for Additional Financing The company assumes that the capital inflow to be generated by this offer (based on proceeds from the sale of almost all token offered) together with the earnings of the company will be sufficient to meet the company’s immediate needs. The company may require additional financing in the future. This could result in a change in the value of the token of the token buyers participating in this sale. 49

Memorandum for the Sale of Token IMPORTANT NOTICE FOR TOKEN BUYERS Risk Factors Control of the Company The current owners control 100% of the voting shares of the company. Therefore, among other things, they are in a position to elect the board of directors and the management of the company and to manage the business of the company. If the owners decide to sell shares of the company, this means a reduction of the voting shares of the company. Nevertheless, in the event of a sale of shares, the current owners of the company will only sell so many shares that control of the company can be maintained. Management Discretion as Use of Proceeds The net proceeds from the sale of token are used to implement the company’s business plan as described in this document. The company reserves the right to use the proceeds from the sale of the token for other purposes not currently considered and in the best interests of the company and its shareholders to adapt to changing circumstances and opportunities. As a consequence of the foregoing, the success of the company depends to a significant extent on the decision and judgment of the board of directors with respect to the application and distribution of the net proceeds from this sale. Corporate Plan Statement of Purpose The primary purpose of this document is to provide token buyers with an organized, structured and success- oriented business and market development plan for a 3-year budget that will ensure the future development of the company, its products, services and brand names. In addition, the purpose of this business and market development plan is to apply professional planning techniques and methods to develop meaningful, flexible and dynamic management strategies, the assessment, analysis and evaluation of which helps management to achieve optimal goals in marketing, application, sales, production and financial results. The purpose of this business and marketing development plan is not only to provide the tactical, timely and financial capabilities necessary to assess, monitor and manage S4FE’s success and products, brands and range of products, but also to develop long-term strategic perspectives for the company’s impact on the market. Mission Statement S4FE’s mission is to focus on product design, production, marketing, distribution, sales and expansion. S4FE’s long-term mission is to develop, produce, market, sell, license and distribute its products and services as detailed in this memorandum. The ultimate mission is to develop, cultivate and maintain strong, lasting business relationships with users, customers, sales and representation offices, sub-licensees, etc. to use marketing of business relationships (i.e. loyalty) as a valuable means to build brand loyalty. The philosophy of this mission, the business relationships, structures, programs and mutual exchange must be developed to promote and implement an unusually high standard of product quality. Goals S4FE’s business and marketing development plans are based on the ability to determine specific quality and qualitative objectives as precisely as possible. Without the definition of responsible and realistic goals, no research, analysis, preparation and documentation of a success-oriented plan is possible. Detailed planning, analysis and methodical procedures are based on the objectives. S4FE endorses and believes in detailed strategies, plans, activities, budgets, milestones and people as well as the capital necessary to achieve these goals. 50

Memorandum for the Sale of Token IMPORTANT NOTICE FOR TOKEN BUYERS Risk Factors General Strategy S4FE is a profit-oriented company that pursues the agreed objectives in the areas of marketing, sales, production and business development plan in the short, medium and long term to increase value for the company. S4FE’s overall value creation strategy is to build and develop market value, a user and customer base, a distribution system and relationship marketing. S4FE owns, manages and holds the trademark rights and establishes business relationships: these include, but are not limited to, joint ventures owned by the company, companies financed from share capital, contractual agreements, relationships with sub-licensees, representation offices, etc., necessary to market, sell, package, produce and distribute the company’s products and services. S4FE’s overall business strategy includes the recruitment and hiring of highly qualified, professional managers with an entrepreneurial background in marketing, sales, distribution and market promotion. These employees form the basis for future development and expansion. The capital development and management strategy of S4FE is based on the use of investments to implement short-term developments of the business start-up phase. This capital investment is used until the positive capital flow from companies or sustained capital flow and earnings are achieved. At this point, the income is then distributed in a ratio (to be determined) or reinvested in the development of the company (e.g. capital formation) and/or distributed to the owners of the company. S4FE’s general business strategy plan for marketing and development is based on internal profits (after capitalization) as a means to self-financing long-term growth. S4FE’s capitalization strategy may include a wide range of options, including a public tender as a continuous opportunity to finance strategic acquisitions and to provide a second opportunity for investment returns. 51

Memorandum for the Sale of Token DISCLAIMER PLEASE READ THIS DISCLAIMER CAREFULLY. IF YOU ARE UNCERTAIN ABOUT THE CONTENTS OF THIS DOCUMENT OR YOUR PROPOSED ACTIONS, YOU SHOULD SEEK ADVICE FROM YOUR FINANCIAL OR LEGAL COUNSEL. This document is issued by the S4FE Foundation (hereinafter referred to as S4FE), a company registered in the Cayman Islands under the companies register number GC-342760. The information in this document as well as the following information does not claim to be complete and does not represent a contractual agreement in any form. Although the management of S4FE always ensures that all information given in this document is accurate and up-to-date, the contents of this document do not constitute professional advice in any way. The information in this document has not been reviewed or approved by any regulatory body. The publication and distribution of this document does not imply that any applicable laws, regulations, guidelines or rules have been complied with. Neither S4FE nor its representatives, agents or representatives shall be liable for any damages incurred in connection with this document or the purchase of S4FE token. Such damages may be, but are not limited to: any direct, indirect, incidental or consequential damages including, but not limited to, losses and financial damages or losses of any kind, including to third parties, foreseeable damages and damages by Force Majeure arising out of the use of any information in this document, the S4FE App, website, any information related to S4FE and in particular the use of S4FE token. For the avoidance of doubt, S4FE expressly disclaims any and all responsibility for any direct or indirect damage that may be caused in any manner whatsoever: (i) rely on the information contained in this document, (ii) make any errors, misinterpret or omit any information, (iii) act as a consequence of the information contained herein, or (iv) purchase or use any products or services from S4FE. You acknowledge and agree that you will not acquire S4FE token for investment, speculation, trading, immediate resale or any other financial purpose. S4FE token do not represent securities, assets or securities in any jurisdiction. This document does not constitute a prospectus or a solicitation for investment. S4FE token are not for speculation purposes and do not imply or create any claim or right to any intellectual property, intangible property, other owners, tangible assets, capital assets and forms. S4FE does not offer any advice, opinion, recommendation or assistance whatsoever regarding the purchase, sale or any other transaction with S4FE token. This document represents neither a basis nor a recommendation for any purchase decision and should therefore in no way be used or interpreted as a basis for contractual or financial decisions. Citizens, residents (tax registered or not), Green Card holders and/or holders of a residence permit of the United States of America and North Korea are excluded from purchasing S4FE token for the sale described in this document. This document and any copies thereof may not be sent or transmitted in any form to any country where the distribution or dissemination of such documents is prohibited by law. 52

Memorandum for the Sale of Token DISCLAIMER All participants are strongly advised to seek the advice of independent legal counsel regarding participation in the sale of the token described in this document in order to verify the validity and applicability of any laws, regulations or requirements applicable in your country. Prospective buyers of S4FE token are strongly advised to carefully evaluate and consider all risks and uncertainties associated with the purchase of S4FE token. In case of a purchase of S4FE token, it is expressly pointed out that the purchase is neither exchangeable, exchangeable nor refundable. S4FE expressly points out that there is no assurance that there is any demand for S4FE token in the market or that the issue or sale price is in any way indicative of a future market price that can be achieved on an exchange or trading platform for cryptocurrencies. S4FE does not provide any security for the success of the token sale or for the business project which still has to be developed as described in this document. The value of the S4FE token, as well as the demand for it, depends strongly on the business results of the company or business project and the continuous commitment of the users. There is no assurance that the token sale will be successful, or whether the business project still to be developed will be successful. S4FE has prepared all information, in particular assumptions, estimates and forecasts, with the greatest care, and has taken extremely realistic key figures into account in the planning in all areas considered. Nevertheless, there is no assurance that the cryptocurrencies collected through the token sale will be sufficient to implement the company‘s business model. In view of the aforementioned information and for reasons which are unforeseeable at this time, it is pointed out that the development and market launch of the S4FE token and the S4FE network, including all functionalities, services and products, may not be completed or implemented and that there is no promise that a market launch of the S4FE network will be implemented. It is recommended to obtain independent financial advice prior to any business venture. 53

Memorandum for the Sale of Token THE S4FE TOKEN Legal Status of the S4FE Token The S4FE token is a payment token issued by the S4FE Foundation that has been specially developed for use on the S4FE platform to enable users to access the network and the services and functions offered. • Token buyers are not investors and the token is not an investment. • The token is a pure payment token within the network. • The token purchase enables access to the software and the data provided. • No dividends are distributed and this is not planned. • The token is not a bond and no interest or other payments are made to the token holders. • The token does not serve in any way to generate any profits. • The circulation of the token is unlimited. • Users are entitled to buy tokens from third parties and sell them to third parties. • The first version of the software is available at the time the token is sold. The S4FE token is issued as a payment token and all payment transactions in the network take place in S4FE token. The prerequisite for the purchase of S4FE token is participation in the KYC (Know Your Customer) / AML (Anti Money Laundering) process. KYC & AML Process S4FE token are sold via trading platforms for token. These are legally obliged to take measures to prevent organized crime and money laundering. In order to participate in the sale of token, all participants must therefore go through a process to unambiguously verify their identity, which requires video recording (webcam or smart phone camera) or uploading a scan: 1. Live video of a valid ID document. 2. Live video of the valid ID document next to the face of the ID holder. 3. Image of a proof of address (utility bill: electricity, gas or telephone) of the subscriber at the tax residence. Based on this information, an identity verification is carried out taking into account data protection and privacy. The result of this verification determines whether the participant is eligible for the token sale. 54

Memorandum for the Sale of Token TOKEN SALE CONTRACT (SAMPLE) between S4FE Foundation, Grand Cayman KY1-1106, Cayman Islands - hereafter „Token Issuer / Seller“ and - hereafter „Token Buyer“ the following purchase contract is concluded: Purpose and Description of S4FE: S4FE is the world‘s first blockchain technology-based global database for the registration and identification of (stolen or lost) items. The database is accessible to everyone and allows users to register items in the Blockchain or to identify items by serial number. Such items may be electronic devices, jewelry, collections, valuables of any kind, documents, sports and hobby equipment, vehicles and machines, or any imaginable item of value to the owner. Even with today‘s technology, it is not possible to register or report (stolen or lost) items in real time and in a convenient, user-friendly way and make this information available worldwide. For this reason, the chances of recovering stolen or lost items are extremely low in most cases. Furthermore, this fact makes it impossible to identify stolen or lost items, e.g. when they are found or offered for sale. The reasons for this problem are, as far as they exist, very slow administrative processes, varying international jurisdictions, laws, database formats and access rights. The combination of these factors completely hampers the exchange and accessibility of information about the ownership of lost and stolen objects. Further information can be found in the S4FE Foundation Memorandum for the sale of tokens. § 1 Purpose of Use The next steps in this start-up phase are the realization of the first marketing activities to market the S4FE App, to promote the further expansion of the S4FE system through your contribution. The funds will be used exclusively for specific purposes. § 2 Token Sales Contract The Token Buyer purchases ERC-20 Token in the amount of_______________CHF at the equivalent of_______________BTC (Bitcoin). The funds will be accepted exclusively in Bitcoin or Ethereum. § 3 Conditions The issue price of the token is CHF _______________ per S4FE (S4F) token. The Token Buyer acquires the S4F token via an independent crypto currency exchange, for example www.latoken.com. We grant the Token Buyer the right to buy back the purchased token at the purchase price if the token does not exceed the USD 1 limit within 12 months of the purchase of the token. If the S4F token reaches the USD 1 mark once within 12 months after the conclusion of the contract, this repurchase grant is null and void. § 4 Compliance The Token Buyer hands over the following documents to the person signing this contract: • Passport/ID copy • Confirmation of residence, not older than 6 months (invoice for electricity, water, telephone...) • Source of funds (bank portfolio overview, bank statement with wage payments, tax receipts, sales contracts, inheritance documents, etc.) The Token Buyer confirms that he is aware of the risks associated with the purchase of the token, in particular the Token Buyer acknowledges and agrees that token are speculative and that he may lose the value of the token or a large part thereof. The Token Buyer confirms that he has sufficient experience and knowledge of cryptocurrencies and that he knows that cryptocurrencies cannot be liquid, i.e. that he must reckon with a long-term holding period, that he understands the speculative character of token and that he is able to bear possible losses. The Token Buyer assures that he will not use any funds for mediated token, which serve his present or foreseeable future subsistence, or which are likely to be urgently needed at a certain point in time. The Token Buyer belongs to the following category according to his own estimation (please mark with a cross): „Business Angel“: Experienced investor with time available and useful knowledge or relationships to the company who invests in and cares for one or a few companies. „Portfolio Investor“, who, due to lack of time or experience or other reasons, does not take intensive care of his investments and therefore prefers a larger number of smaller investments / speculations for risk diversification. § 5 Place of Jurisdiction and Applicable Law Zürich shall be the exclusive place of jurisdiction for all disputes arising from this contract, unless otherwise stipulated by mandatory law. Zürich, Zürich, Signature Token Buyer Signature Token Issuer / Seller 55 © 2019 S4FE FOUNDATION

S4FE FOUNDATION Grand Cayman | KY1-1106 | Cayman Islands [email protected] | www.s4fe.org Visit S4FE at: www.s4fe.io