Otmuchow, September 19th 2016

Current report no 24/2016

Subject: Information on turnover realized with PPC "Gryf" S.A.

The Management Board of the ZPC Otmuchow S.A. (the Issuer, the Company) announces that on September 19th 2016 the subsidiary company of the Issuer, PWC Odra SA has signed contract with the PPC "Gryf" S.A. (the Supplier, PPC Gryf) for the supply of food products. In connection with signing mentioned contracts total value of agreements and orders from the Issuer and its subsidiaries with PPC Gryf in the period from October 13th 2015 i.e. from the date of publication the current report no 17/2015 to the date of publication of this current report equals 13,7 ml PLN net.

The highest value from all contracts in the period mentioned above was contract (the Agreement) signed on September 15th 2016 between the PWC Odra SA and PPC Gryf. The subject of the Agreement was the delivery of the food products in the form of liquid chocolate worth approx. 3,42 ml PLN. The Agreement was concluded to the March 31st 2017. Each delivery will be realized on the basis of written contracts which will define detailed parameters of products and dates of deliveries.

The agreement provides possibility to claim agreement penalties:

Current report ZPC OTMUCHOW S.A.

  • In case of delay in delivery of goods the Issuer is entitled to request from the Supplier to pay agreement penalty in the amount of 2% of net price of goods delivered with delay or undelivered for each day of the delay,

  • In terms of delay or missing delivery of goods for every day of delay,

  • In case of delivery of goods not in accordance with the terms of the agreement, in particular the goods not in conformity with the contractual requirements, the Issuer is entitled to request from the Supplier to pay agreement penalty in the amount of 10% of net price of goods. In case of replacement of defective goods the Issuer in not entitled to demand payment of agreement penalty by the Supplier. The Issuer is entitled to claim additional compensations which could excess mentioned above agreement penalties.

Other conditions of the agreement do not differ from terms and conditions of commonly applied in such agreements and transactions.

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Zaklady Przemyslu Cukierniczego Otmuchów SA published this content on 19 September 2016 and is solely responsible for the information contained herein.
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