Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

¹ Five per cent of the an­nu­al profit must be al­loc­ated to the gen­er­al re­serve un­til this equals 20 per cent of the paid-up share cap­it­al.

² Even after it has reached the stat­utory level, the fol­low­ing must be al­loc­ated to the gen­er­al re­serve:

1.

any share is­sue pro­ceeds in ex­cess of the nom­in­al value re­main­ing after the is­sue costs have been met, un­less used to fund write-downs or for staff wel­fare pur­poses;

2.

any amount re­main­ing from sums paid in on for­feited shares after any short­fall on the shares is­sued in re­turn has been met;

3.

ten per cent of the amounts dis­trib­uted as the share in the profit above and bey­ond pay­ment of a di­vidend of 5 per cent.

³ To the ex­tent it does not ex­ceed one-half of the share cap­it­al, the gen­er­al re­serve may be used only to cov­er losses or for meas­ures de­signed to sus­tain the com­pany through dif­fi­cult times, to pre­vent un­em­ploy­ment or to mit­ig­ate its con­sequences.

⁴ The pro­vi­sions in para. 2 num­ber 3 and para­graph 3 do not ap­ply to com­pan­ies whose primary pur­pose is to hold equity par­ti­cip­a­tions in oth­er com­pan­ies (hold­ing com­pan­ies).

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