Significant agreement by the subsidiary Izostal SA

On 14 December 2010 Izostal SA - the subsidiary of STALPROFIL SA - signed a supply contract with Zakład Remontowy Urządzeń Gazowniczych Sp. z o.o. established in Pogórska Wola (Purchaser), whose purpose is to implement the Izostal SA to supply steel pipes insulated wire according to the specifications indicated in the agreement (and 3LPP 3LPE Sv).
Deadline for delivery is until May 2011.
The value of deliveries under the contract amounts to 17,983,205.50 PLN net.
The agreement includes the following provisions regarding penalties:
1. Supplier is obligated to pay liquidated damages to the Purchaser:
a) for each day of delay in the execution of the Contract in the amount of 0.25% of net payment,
b) for withdrawal from the Agreement by Supplier for reasons for which he is responsible, amounting to 10% of the net payment,
c) for the delay in the removal of the defects of 0.25% of the net payment for each day of delay from the date of the deadline set by the defect.
2. Purchaser shall pay a penalty to Supplier:
a) for withdrawing from the agreement with the reasons for which Supplier is not liable in the amount of 10% of the net payment.
Either party may claim damages in excess of contractual penalties.

The agreement meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.