Concluding a significant contract.

Date  of issue: 2013-10-07
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Concluding a significant contract.

CONTENT OF THE REPORT:
The Management of Izostal S.A. announces, that on October 7, 2013 it concluded an agreement with PGNiG Technologie S.A., ZRUG Division in Pogórska Wola – a company belonging to Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG) capital group, as a result of which the total value of agreements concluded by Izostal S.A. with PGNiG S.A. and its affiliates exceeded 10% of Izostal S.A. equity during the last twelve months, and equaled PLN 17,439 thousand.

Within the period stated, an agreement of highest value was transaction for sale of coated steel pipes by Izostal S.A. (Supplier) to PGNiG Technologie S.A. ZRUG Division in Pogórska Wola (Purchaser) that took place on October 7, 2013 and amounted for PLN 5,149 thousand total net worth.

Subject of the order will be delivered by the Supplier by December 31, 2013.

The concluded agreement provides for the following contractual penalties that will be accrued in the case of non-performance or unduly performance of contractual obligations (and calculated basing on gross price stipulated in the agreement):

1. The Supplier shall pay to the Purchaser the contractual penalty:

a) For delays in issuing or supplying subject of the agreement in an amount of 0.1% of price per each day of delay,
b) For delays in removal of defects detected upon acceptance or during the quality warranty period, in an amount of 0.2% of price per each day of delay from the assigned defect removal date
2. In case any of the parties terminates the agreement for reason of default of the other party, the terminating party shall have the right to charge the other party of contractual penalty in an amount of 10% of gross price.
3. The Parties reserve the right to complementary compensation for damages, whose value exceeds the specified penalty.
Other terms of the transaction do not vary from the commonly applied for this type of agreement.

Transactions with PGNiG S.A. and its affiliates concluded within the period stated are deemed as significant agreements, as their total value exceeds 10% of Company’s equity.

Specific legal basis: §5 clause 1 item 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed 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, Marek Mazurek 2013-10-07
Management Board Vice President, Jacek Podwiński 2013-10-07
 
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