Common use of Profits Distribution Clause in Contracts

Profits Distribution. Profits shall be distributed to the Parties according to the following principle: (1) the Board of Directors shall, within four months of the end of a financial year, and after deductions are made for common reserve, worker's compensation and pension, decide on the amount of retained earnings and the pro- rata distribution of dividend. The dividend to be distributed to the Parties shall not exceed 75% of the profit. (2) any gross profit generated annually in any of the Operating Areas shall first be used for payment of taxes, fees and charges in accordance with the provisions of applicable tax laws and regulations of PRC, and the remainder shall be the profit to be allocated between Party A and Party B in accordance with their Share Interest. (3) Party B shall enjoy priority in receiving foreign exchange payment in any profit of the JVC. Foreign exchange will be U.S. Dollars converted from Renminbi, with the conversion rate being the average sell and buy rate at the People's Bank of China of the date when the Board of Directors decides to distribute profits. If the JVC does not have sufficient foreign exchange to advance to Party B, the JVC shall, as instructed by Party B, convert the Renminbi profit payable to Party B at the bank at the average exchange rate for foreign exchanges, and pay such converted foreign exchange to Party B. If the JVC is unable to make such converted foreign exchange to Party B. If the JVC is unable to make such conversion, then is shall, as instructed by Party B, deposit an equivalent amount in Renminbi in an independent savings account opened in the name of the JVC. The JVC or Party A shall not use the principal or interest thereon in this account. If Party B's instructions are requirements comply with the laws of PRC, the JVC should immediately perform the instructions of Party B to deposit Party B's profits into the bank account.

Profits Distribution. Profits shall be distributed to the Parties according to the following principle: (1) the Board of Directors shall, within four months of the end of a financial year, and after deductions are made for common reserve, worker's compensation and pension, decide on the amount of retained earnings and the pro- rata distribution of dividend. The dividend to be distributed to the Parties shall not exceed 75% of the profit. (2) any gross profit generated annually in any of the Operating Areas shall first be used for payment of taxes, fees and charges in accordance with the provisions of applicable tax laws and regulations of PRC, and the remainder shall be the profit to be allocated between Party A and Party B in accordance with their Share Interest. (3) Party B shall enjoy priority in receiving foreign exchange payment in any profit of the JVC. Foreign exchange will be U.S. Dollars converted from Renminbi, with the conversion rate being the average sell and buy rate at the People's Bank of China of the date when the Board of Directors decides to distribute profits. If the JVC does not have sufficient foreign exchange to advance to Party B, the JVC shall, as instructed by Party B, convert the Renminbi profit payable to Party B at the bank at the average exchange rate for foreign exchanges, and pay such converted foreign exchange to Party B. If the JVC is unable to make such converted foreign exchange to Party B. If the JVC is unable to make such conversion, then is shall, as instructed by Party B, deposit an equivalent amount in Renminbi in an independent savings account opened in the name of the JVC. The JVC or Party A shall not use the principal or interest thereon in this account. If Party B's instructions are and requirements comply with the laws of PRC, the JVC should immediately perform the instructions of Party B to deposit Party B's profits into the bank account.