Concluding significant agreement with JT Zakład Budowy Gazociągów Sp. z.o.o.

Date of issue:  2014-04-04
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Concluding significant agreement with JT Zakład Budowy Gazociągów Sp. z.o.o.

CONTENT OF THE REPORT:
On April 4, 2014 Izostal S.A. (The Company) concluded another agreement with JT Zakład Budowy Gazociągów Sp. z o.o. seated in Warsaw. As a result of the transaction, the total value of sales and purchase agreements concluded by the Company with JT Zakład Budowy Gazociągów Sp. z o.o. within the last twelve months exceeded 10% of the Company’s equity and amounted for PLN net 20.533 .

Within the period stated, the transaction of highest value was sales contract for coated pipes entered by Izostal S.A. (Supplier) and JT Zakład Budowy Gazociągów Sp. z o.o. (orderer) on June 14, 2013, of total value PLN neto 7.315 .

The subject of the agreement was delivered by the Supplier within the period from August 2013 to March 2014.

In case of failure to meet any of the delivery deadlines, the Orderer had the right to contractual penalties in an amount of:

1. up to 7 days of delay - 0.01% of gross order value per each day of delay;

2. for delays exceeding 7 days - 0.05% of gross order value per each day of delay;

Total amount of the contractual penalties shall not exceed 15% of order value. In case of damage exceeding the amount of contractual penalty, the Supplier shall compensate up to full amount of damage. In case of withdrawal from the agreement by the Suppllier or for reasons attributable to him, he shall pay contractual penalty being product of days since signing the order up to the day of withdrawal, and of the amount of PLN 5000. In case of delay exceeding 50 days, the Orderer shall have the right to terminate the agreement and claim, in place of the contractual penalties for delays, a contractual penalty for withdrawing from the agreement for reasons attributable to the Supplier.

Other terms of the transaction do not vary from the typically adopted for this kind of contracts.

All transactions concluded with JT Zakład Budowy Gazociągów Sp. z o.o. stated above may be qualified as significant contracts, because their value exceeds 10% of the 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  2014-04-04
Management Board Vice President, Michał Pietrek 2014-04-04

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