Common use of Transfer of Profits Clause in Contracts

Transfer of Profits. 1. Subject to the amended latest version of Section 301 of the German Public Com- panies Act, the SUBSIDIARY COMPANY undertakes during the term of the Agreement and for the first time from the beginning of the current business year on the date of entry of this Agreement in the Commercial Register to transfer its profits to the CONTROLLING COMPANY as calculated in accordance with the relevant provisions of German commercial law. Subject to the formation or re- lease of reserves in accordance with Paragraph 2, the amount to be transferred will consist of the annual profits arising without the transfer of profits less any losses carried forward from the previous year.

Transfer of Profits. 1. Subject to the amended latest version of Section 301 of the German Public Com- panies Act, the SUBSIDIARY COMPANY undertakes during the term of the Agreement and for the first time from the beginning of the current business year on the date of entry of this Agreement in the Commercial Register to transfer its profits to the CONTROLLING PARENT COMPANY as calculated in accordance with the relevant provisions of German commercial law. Subject to the formation or release of re- lease of reserves serves in accordance with Paragraph 2, the amount to be transferred will consist of the annual profits arising without the transfer of profits less any losses carried forward from the previous year.