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Metallurgical products
General Terms of Sale
Current reports A A A
Conclusion of a significant contract.
Report no.: 49/2011
Date of issue: 2011-10-11
Legal basis: Art. 56 cl. 1 item 2 of the Public Offering Act - current and periodic information
SUBJECT:
Conclusion of a significant contract.
CONTENT OF THE REPORT:
The Management Board of Izostal S.A. informs that on October 10, 2011 the Company (Buyer) concluded another transaction for the purchase of steel pipes from U.S. Steel Kosice, s.r.o. seated in Kosice - Slovakia (Seller) As a result of this transaction, total value of the contracts concluded by the Company with U.S. Steel Kosice, s.r.o. since 05.01.2011 has exceeded 10% of Company's equity and amounted to PLN 14,339.371.8 (net).
In this period the contract of the greatest value was the purchase of seamed steel pipes from U.S. Steel Kosice, s.r.o., concluded on October 10, 2011, of the total value of EUR 2,983,894.90 EUR, which converted into PLN based on the average exchange rate of the National Bank of Poland on the day of contract's conclusion is PLN 12.900.869,60.
This contract specifies the following contractual damages:
1. The Seller shall be obliged to pay to the Buyer contractual damages in the amount of 0.1% of the contract's value in case the Seller violates the confidentiality clause.
2. 0.1% of the Contract's price for each day of delay in the delivery of a given batch of steel pipes.
3. 0.5% of the Contract's price for each day of delay in the rectification of defects and faults - for defects acknowledged by the Seller in the delivery of steel pipes in the warranty or guarantee period.
4. If the applied contractual damages' amounts do not cover the loss incurred by the Buyer, the Buyer has the right to claim compensation of the loss over contractual damages.
5. The Seller agrees to have contractual damages acknowledged by the Seller deducted from the amount due for the supplies.
Other conditions of the transactions do not differ from the conditions applied typically for such contracts.
The transactions with U.S. Steel Kosice s.r.o. concluded in the above-mentioned period meet the significant contract criterion as their aggregate value exceeds 10% of Company's equity.
Specific legal basis: § 5 cl. 1 item 3 of the regulation of the Minister of Finance of February 19, 2009 on current and periodic information provided by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).
SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-10-11
Management Board Vice President, Commercial Director Jacek Podwiński 2011-10-11
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer: IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange: Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678