Transfer Pricing

9. Cost Contribution Arrangements

9.1. Description of the facts

ScienceLab AG (Switzerland) is responsible for the concept and design of all watches distributed by the Zeitgaist group. Product designers use their many years of market expertise to carry out digital prototyping, design watches and their components using the latest design software. 3D printing processes are used to create prototypes based on the digitally created designs. ScienceLab AG uses real stainless steel and simple watch movements for its prototypes. Close cooperation with the people responsible for marketing in the Zeitgaist group provided for customer requirements to be taken into account. It works closely together with Zeitgaist AG in this respect: Zeitgaist AG contributes the knowledge and user data gained from data collection and processing, as well as necessary market knowledge based on market exploration and research. Furthermore, Zeitgaist AG employees are involved and actively contribute to this process stage.

Zeitgaist AG and ScienceLab AG have agreed that the results of concept and design can be used by both Zeitgaist AG and ScienceLab AG in the context of further research and development. No remunerati...