Current report no. 40/2014
Title:
Conclusion of agreements with FarmAll Technology
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
The Issuer’s Management Board informs that on the 27th October 2014 the Issuer concluded with the Pakistani FarmAll Technology (Private) Limited with the seat in Lahore a license agreement and an agreement on technical support. The parties do not exclude further cooperation with a broader scope, which till not has not been defined yet.
Under the license agreement the Issuer granted the partner the right to designate with URSUS brand tractors produced and sold by FarmAll Technology (Private) Limited in the territory of Pakistan (the agreement refers only to this territory). The agreement is concluded for a period of 20 years. The above mentioned license has been granted against payment. According to the agreement provisions, the Issuer has possibility to control quality of all tractors marked with URSUS brand manufactured by the partner. The law governing relations between the Parties concerning the concluded agreement will be the Swiss law. Any disputes that may arise in connection with the agreement shall be settled by arbitration of the Swiss Chamber of Commerce in Geneva. Other provisions of the concluded agreement do not differ from the terms commonly used in this kind of agreements.
According to the agreement on technical support, for the duration of this agreement, the Issuer made available to the partner a part of its industrial property rights and technical and technological information and granted the partner right to their use for manufacturing, assembly and sales of tractors marked by FarmAll Technology (Private) Limited with URSUS brand on the basis of the above mentioned license agreement. Besides, the Issuer will provide trainings for the partner’s personnel related to manufacturing and sales of tractors. The agreement is concluded for a period of 20 years. The above-mentioned entitlement has been granted against payment. The law governing relations between the Parties concerning the concluded agreement will be the Swiss law. Any disputes that may arise in connection with the agreement shall be settled by arbitration of the Swiss Chamber of Commerce in Geneva. Other provisions of the concluded agreement do not differ from the terms commonly used in this kind of agreements.
Conclusion by the Issuer of the above-mentioned agreements gives the Company an opportunity to appear on a new market, in a part of the world which is attractive in terms of volume of sold tractors. Moreover, inflows from concluded long-term agreements will constitute a permanent position in the Issuer’s income.
Although at the date of this report the total value of the agreements does not exceed 10% of the Issuer’s equity, these agreements are considered material due to the fact that the above level shall be exceeded during execution of these agreements, and they shall have a significant impact on recognisability of URSUS brand, its valuation and the global position of the Company. It will be used during negotiations with other partners.
The legal grounds of transmission of the present report are § 5 sec. 1 point 3 in connection with § 9 of the Regulation of the Minister of Finance dated 19 February 2009 regarding current and interim reports published by issuers of securities and the terms of finding as equivalent the information required under the laws of any non-member state (Journal of Laws, 2009, No. 33, point 259 with subsequent changes).
