TŽ Annual Report 2008 in pdf, 7.5 MB - Třinecké železárny

D. Description of the Companys Relations with Sochorová válcovna TŽ, a.s.D.1. Sales and Other Performances Provided by the Company in Favour of Sochorová válcovna TŽ, a.s.D.1.1. Master ContractThe Company effected this contract with the company on 30 June 2002 and it was amended by Amendment No. 1 of 30 January 2004, Amendment No. 2 of29 October 2004 and Amendment No. 3 of 30 December 2005. Under the contract, as amended, the Company agrees to provide ingots, continuous ingotsand billets as well as charges for the companys manufacturing programme. Partial sale contracts are executed for individual performances. The prices forgoods are arms length prices derived from the prices for the relevant product mix under common commercial relationships.During the accounting period, the performance under the above contract and the underlying partial sale contracts with settlement in the form of invoicesand credit notes for the sale of products, or expenses associated with complaints was provided for consideration of CZK 4,386,643 thousand.D.1.2. Licence Contract for the Use of the “Three Hammers in a Circle” TrademarkThe Company entered into the contract on 30 June 2002 which was amended by Amendment No. 1 of 19 March 2004. Under the contract, as amended, theCompany provides a non-exclusive right to use the trademark for products as well as a non-exclusive right to use the Companys trademark as part of thelogo of Sochorová válcovna TŽ, a.s. The right was provided for consideration.During the accounting period, the consideration for the right ensuing from the above contract amounted to CZK 99 thousand.D.1.3. Contract for the Provision of ServicesThe contract between the Company and the company was executed on 2 January 2004. Under this contract, the Company provides services involvingbuilding guards, fire protection, filing room, archiving and documentation services, information technology, selected technical services, selected accountingservices, protection of the environment, payroll and personnel services, audit, marketing, and procurement services.During the accounting period, the performance under the above contract was provided for consideration of CZK 8,040 thousand.D.1.4. Lease ContractThe Company executed the contract on 30 June 2002, as amended. Under the contract, as amended, the Company leases the tangible and intangible assetsassigned for the operation of Sochorová válcovna TŽ, a.s. to this company.During the accounting period, the consideration for the rental and other payments under the above contract amounted to CZK 1,467 thousand.D.1.5. Contract for the Lease of Non-Residential PremisesThe Company executed this contract on 13 May 2002, as subsequently amended by Amendment No. 1 of 5 December 2003, Amendment No. 2 of 1 May2004 and Amendment No. 3 of 14 April 2007. Under this contract, the Company acquires the right to lease non-residential premises.During the accounting period, the consideration for the lease and other services under the above contract amounted to CZK 34 thousand.D.1.6. Other Performances ProvidedDuring the accounting period, the Company provided other performances under special contracts involving, for example, the sale of goods and otherassets or other services for an aggregate consideration of CZK 4,236 thousand.D.2. Purchases and Other Performances Provided by Sochorová válcovna TŽ, a.s. to the CompanyD.2.1. Master Agreement No. 4600000076The Company executed the contract on 9 January 2003, as subsequently amended by Amendment No. 1 of 30 August 2004, Amendment No. 2 of 31 January2005, Amendment No. 3 of 30 March 2006 and Amendment No. 4 of 28 February 2007. Under the contract, Sochorová válcovna TŽ, a.s. agrees to deliverwork to the Company involving heat treatment or other adjustments of rolled material necessary for technological reasons.During the accounting period, the performance under the above contract was provided for consideration of CZK 42,068 thousand.D.2.2. Mandate ContractThe Company executed the contract on 25 April 2005. Under the contract, Sochorová válcovna TŽ, a.s. agrees to act on behalf of the Company in connectionwith the sale of the Companys land in Kladno and, in parallel, to perform other work and activities relating to the appreciation of this land due toits preparation for a planned sale.During the accounting period, the performance under the above contract was provided for consideration of CZK 111 thousand.D.2.3. Other Performances ReceivedThe Company received other performances under special contracts during the accounting period involving, for example, the purchase of slag, scrap, otherassets, material, and services in the aggregate amount of CZK 69,634 thousand. D.3. Other Contractual RelationsDuring the accounting period, the Company and Sochorová válcovna TŽ, a.s. established no other contractual relationships under Section 66a (9) of theCommercial Code.A N N U A L R E P O R T T Ř I N E C K É Ž E L E Z Á R N Y , a . s . 2 0 0 8119