Porsche 2010 Annual Report Download - page 228

Financials
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amounts of these options and collateral provided, reference is made to notes [15] and [23]). Volks-
wagen AG (in the event that it exercises its call options) as well as Porsche SE (in the event that it
exercises its put options) have both agreed to bear any tax expenses arising from exercising the
options and from any downstream measures with respect to the investments in Porsche Zwischen-
holding GmbH (e.g., from back taxes on the 2007 and/or 2009 spin-off). Should Volkswagen AG,
Porsche Zwischenholding GmbH, Porsche AG or their respective subsidiaries enjoy tax advantages
as a result of subsequent taxation of the 2007 and/or 2009 spin-off, the purchase price payable by
Volkswagen AG for transfer of the remaining 50.1% share in Porsche Zwischenholding GmbH will be
increased by the present value of the tax advantages in the event that Porsche SE exercises its put
options.
In order to secure any remaining claims of Volkswagen AG from the agreement between
Porsche SE and Volkswagen AG on the investment held by Volkswagen AG in Porsche Zwischenhold-
ing GmbH, a retention mechanism was agreed in favor of Volkswagen AG for the purchase price
payable in the event of the put or call options being exercised. If any retained amount has not been
used to fulfill claims of Volkswagen AG, the retained amount must be paid to Porsche SE on
30 June 2016, unless it is likely that claims for indemnity will be made against the company as of
that date.
Volkswagen AG has agreed to hold Porsche SE harmless for internal purposes from any
claims of the deposit guarantee fund agency after Porsche SE issued a hold harmless declaration
to the deposit guarantee fund agency as required by the Association of German Banks in August
2009. In addition, Volkswagen AG has undertaken to hold the deposit guarantee fund agency harm-
less from any losses incurred as a result of its measures in favor of a bank in which it holds the
majority.
The table below shows the supplies and services rendered and received between the Porsche SE
group and its related parties as well as existing receivables and liabilities.
Supplies and Supplies and
services rendered services received
€ million SFY 2010 2009/10 SFY 2010 2009/10
Porsche and Piëch families 0 1,568 0 65
Members of the executive board
and the supervisory board 0 0 0 0
Joint ventures 360 2,033 73 370
Associates 158 1,866 547 438
Pension plans 0 1 0 0
Non-consolidated subsidiaries 0 833 0 386
518 6,301 620 1,259