Current Report No. 23/2014 - Sale agreements meeting the criteria of significant agreement

Legal basis: Art. 56.1.2 of the Public Offering Act - current and periodic information

Text of the report: The Management Board of Grupa Azoty Zakłady Azotowe PUŁAWY S.A. ("Company") reports that on October 8th 2014 the Company executed an agreement for sale of melamine ("Agreement") with Kronospan Chemical Szczecinek Sp. z o.o., Kronospan Mielec Sp. z o.o., Diakol Strazske S.R.O. of Slovakia, and Dukol Ostrava S.R.O. of the Czech Republic (jointly referred to as the "Buyers"), effective from July 1st 2014 to December 31st 2018. The term of the Agreement will be automatically extended for the next two calendar years unless the Agreement is terminated by any of the Parties by written notice, to be served not later than three months before the end of the Agreement term.

Pursuant to the Agreement, the Company agreed to deliver the product (melamine), and the Buyers agreed to collect and pay for the deliveries. The Agreement defines the amount of melamine the Company agreed to deliver and the Buyers agreed to collect, with a 5% tolerance. Prices will be negotiated on a quarterly basis. Estimated value of the agreement is PLN 251m.

The other terms of the agreement do not differ from standard terms used in agreements of this type.

The total value of the agreements (including the above Agreement) executed by the Company with the Buyers over the last twelve months is estimated at PLN 365,039,605, with the Agreement being the highest value agreement.

Given that the total value of agreements executed with the Buyers within the last 12 months exceeds 10% of the Company's equity (as at August 31st 2014 the Company's equity stood at PLN 2,606,165), the Agreement meets the criteria of a significant agreement.

Legal basis: Par. 5.1.3 of the Minister of Finance's Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009 (consolidated text: Dz.U. of 2014, item 133).

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