AGREEMENT FOR THE SALE AND PURCHASE OF
TIMBER SAWMILLING EQUIPMENT AND SERVICES
Agreement
This agreement is dated the twentieth day of May, 2004 and is entered into
between:
Integrated Forest Products Pty Ltd (ABN 520 83521 966 ) a company incorporated
in Australia with offices situated at Xxxxx 0, 00 Xxxxxx Xxxxxx, Xxxx Xxxxxxxxx,
Xxxxxxxx 0000, Xxxxxxxxx
and
Acora Reneco Group Pty Ltd (ABN 680 89944 561 ) a company incorporated in
Australia with its main manufacturing facility situated at 00 Xxxxxxxxxx Xxxx,
Xxxx, Xxx Xxxxx Xxxxx 0000, Xxxxxxxxx.
and will apply for an initial period of five years (5 years) from the date of
this agreement and will continue thereafter unless terminated by the issuing by
either party to the other of twelve months (12 months) written notice of the
intention to terminate.
Introduction
Integrated Forest Products (hereafter referred to as Integrated) owns and
operates a timber sawmill in Canberra, Australian Capital Territory and has the
rights to forest licenses in the Bombala region, New South Wales, Australia and
proposes to build a log sorting and green sawmill in that region.
Acora Reneco Group (hereafter referred to as ARG) is a leading Australian saw
milling equipment designer, manufacturer and supplier.
Agreement
It is agreed between The Parties that ARG will offer priority access to and
delivery of its technology, design expertise, equipment and services to
Integrated for work that is required by Integrated in the area of saw milling
plant and equipment design and supply and/or procurement and any other items
mutually agreed between The Parties.
It is further agreed between The Parties that ARG will supply these items at a
rate that equates to its normal selling price for these products and services
less a discount of 10% for its goods and services that are manufactured or
directly supplied by ARG and at a 10% discount to its normal margin for imported
goods and services.
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It is further agreed between The Parties that in exchange for this priority
access and special pricing, Integrated will offer all of its work in this area
to ARG exclusively.
It is further agreed between The Parties that the log sorting and green mill
line designed by ARG for Integrated's new Bombala operation, as generally
detailed in the attached layout drawing BOMBALA SAWMILL - Proposed Layout Feb
2004 will be supplied to Integrated by ARG for a fixed price of A$35,080,000
(Thirty Five Million and Eighty Thousand Australian Dollars) plus escalation
from 01 July 2004 equal to the rate of increase in the Australian All Groups
Consumer Price Index (CPI) as published periodically by The Australian Bureau of
Statistics, Canberra. Payment terms for this project will be ARG's normal
commercial terms. An alternative plan known between the parties as the "IFP CSG
Upgrade Proposal" will be supplied for A$24,840,000 (Twenty Four Million Eight
Hundred and Forty Thousand Australian Dollars) plus escalation from 01 July 2004
equal to the rate of increase in the aforementioned Australian All Groups
Consumer Price Index (CPI), if Integrated chooses this option.
It is further agreed between The Parties that this agreement was entered into
following substantial discussions between Integrated and ARG in relation to this
Agreement that have created an understanding by The Parties of the obligations
and rights of each party under this Agreement and that the principals of the two
companies (who are signatories below) are fundamental in the body of this
agreement. Thus the ongoing details of this Agreement may change by mutual
agreement from time to time, but the changes will at all times be compatible
with the spirit of this Agreement and the proposed association between the
companies detailed herein.
In acknowledgement of this agreement it is hereby signed on behalf of:
Integrated Forest Products Pty Ltd
Director Name:
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Date:
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Witness:
Witness names and address:
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Director Name:
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Date:
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Witness:
Witness names and address:
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Acora Reneco Group Pty Ltd
Director Name:
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Date:
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Witness:
Witness names and address:
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Director Name:
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Date:
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Witness:
Witness names and address:
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