22.02.2011
Conclusion of sales contract with Izostal SA
On 21 February 2011 Stalprofil SA (the seller) entered into a sales agreement with a subsidiary Izostal SA in Zawadzkie (buyer) for the supply of Stalprofil SA to the buyer of steel pipes for construction of gas transmission pipes DN 500 and DN 700, the gross value of about 17,053,400 PLN (net 13,864,550 PLN)
Deliveries of steel pipes will be implemented by Stalprofil SA to the buyer within a period from March to April 2011.
Financial terms of the contract does not differ from those commonly used for this type of agreement.
The agreement includes the following provisions regarding penalties:
a) the Seller shall pay the Purchaser a contractual penalty for failure to meet delivery deadlines of 0.5% of the net late in the supply of lots for each full working day of delay. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
b) The Buyer shall pay the Seller a penalty for delay in receipt of the agreement, in the amount of 0.5% of the net unanswered batch of pipes for each full day of delay. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
c) the Seller shall pay the Purchaser a contractual penalty for withdrawing from the contract for reasons attributable to the Seller in the amount of 25.0% of the contractual wage rates specified in this agreement.
d) the Seller shall pay the Purchaser a contractual penalty for delay in removing the defects caused by the Seller of 1.0% of net supply considered defectively made, for each day of delay calculated from the date appointed for the removal of defects. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
e) The Buyer shall pay the Seller a penalty for withdrawing from the contract for reasons attributable to the Purchaser in the amount of 25.0% of the contractual wage rates specified in this agreement.
Regardless of the penalty Parties may pursue additional compensation - up to the injury suffered, in general terms. The above provisions do not apply in case of force majeure.
Concluded agreement meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.
Deliveries of steel pipes will be implemented by Stalprofil SA to the buyer within a period from March to April 2011.
Financial terms of the contract does not differ from those commonly used for this type of agreement.
The agreement includes the following provisions regarding penalties:
a) the Seller shall pay the Purchaser a contractual penalty for failure to meet delivery deadlines of 0.5% of the net late in the supply of lots for each full working day of delay. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
b) The Buyer shall pay the Seller a penalty for delay in receipt of the agreement, in the amount of 0.5% of the net unanswered batch of pipes for each full day of delay. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
c) the Seller shall pay the Purchaser a contractual penalty for withdrawing from the contract for reasons attributable to the Seller in the amount of 25.0% of the contractual wage rates specified in this agreement.
d) the Seller shall pay the Purchaser a contractual penalty for delay in removing the defects caused by the Seller of 1.0% of net supply considered defectively made, for each day of delay calculated from the date appointed for the removal of defects. Liquidated damages in this respect in any case not exceed 4.0% of contract value.
e) The Buyer shall pay the Seller a penalty for withdrawing from the contract for reasons attributable to the Purchaser in the amount of 25.0% of the contractual wage rates specified in this agreement.
Regardless of the penalty Parties may pursue additional compensation - up to the injury suffered, in general terms. The above provisions do not apply in case of force majeure.
Concluded agreement meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.