Conclusion of a significant contract with Impexrur S.A.

Date  of issue: 2012-08-07
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Conclusion of a significant contract with Impexrur S.A.

CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company) informs that on August 7, 2012 Izostal S.A. concluded a transaction for the purchase of pipes with Impexrur S.A. seated in Sanok. Following this transaction the total value of purchase/sales contracts concluded by the Company with Impexrur S.A. since May 31, 2012 (current report no. 30/2012) has exceeded 10% of Company’s equity and amounted to PLN 51,699,949.86 (net).

In the aforesaid period, the contract of the greatest value was the steel pipes purchase transaction between Izostal S.A. (Buyer) and IMPEXRUR S.A. (Seller) concluded on August 7, 2012, of a total value of EUR 10,849,440.00, which after conversion into PLN at the mean exchange rate of the National Bank of Poland on this date amounts to PLN 43.858.861,20 (net).

The object of the contract  will be delivered by Impexrur S.A. by December 31, 2012.

The contract provides for the following liquidated damages for non-performance or undue performance of the contractual obligations:

1) The Supplier will pay contractual damages to the Buyer for failure to deliver on time in the amount of 0.2% of net price for each full week of delay for a delayed batch, unless the delay results from the circumstances beyond the Supplier’s control. On no account will the liquidated damages arising therefrom exceed 5.0% of the contract’s value.

2) The Buyer will pay to the Seller the liquidated damages for delay in the acceptance of the contractual object in the amount of 0.2% of the net price of the pipes delivery in acceptance default for each full day of delay, unless the delay has been caused by the circumstances beyond the Buyer’s control. On no account will the liquidated damages arising therefrom exceed 5.0% of the contract’s value,

3) The Supplier will pay liquidated damages to the Buyer for delay in the repair of defects attributable to the Supplier in the amount of 0.1% of the value of the delivery deemed in default for each day of delay calculated from the day indicated as the date of defect repair. On no account will the contractual penalty arising therefrom exceed 5.0% of the Contract’s value.

4) The Supplier will pay liquidated damages to the Buyer for withdrawal from the Contract for reasons under the Supplier’s control in the amount of 10% of contractual consideration specified in the Contract,

5) the Buyer will pay liquidated damages to the Supplier for withdrawal from the Contract for reasons attributable to the Buyer in the amount of 10% of net consideration specified in the Contract.

All and any liquidated damages or percentage of caps thereon are calculated against the net value of the Contract.

The transactions concluded with IMPEXRUR S.A. in the aforementioned period meet the criterion of a significant contract as their total 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 Vice President, Jacek Podwiński 2012-08-07
Proxy, Michał Pietrek2012-08-07
 
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