OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
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<strong>to</strong>tal value <strong>of</strong> its requirement for genera<strong>to</strong>rs in the prior fiscal year. The agreement may be terminated<br />
no earlier than September 30, 2010. After that, the agreement can be terminated at the end <strong>of</strong> a year<br />
with six months’ notice. The agreement applies <strong>to</strong> all controlled subsidiaries <strong>of</strong> <strong>Nordex</strong> Energy GmbH,<br />
i.e. all subsidiaries in which <strong>Nordex</strong> Energy GmbH holds an interest <strong>of</strong> more than a 25% blocking<br />
minority, except Südwind Energy GmbH, with which a separate agreement has been concluded.<br />
An agreement relating <strong>to</strong> the Südwind S-70 with the same terms and conditions was also entered in<strong>to</strong><br />
on Oc<strong>to</strong>ber 1, 2000 between Südwind Energy GmbH and Loher AG.<br />
Master agreements between <strong>Nordex</strong> Energy GmbH/Südwind Energy GmbH and A. Friedrich Flender AG<br />
On Oc<strong>to</strong>ber 1, 2000, <strong>Nordex</strong> Energy GmbH and A. Friedrich Flender AG, a former Babcock Borsig Gro<strong>up</strong><br />
company, entered in<strong>to</strong> a master agreement on the s<strong>up</strong>ply <strong>of</strong> gears, particularly for N-43, N-50, N-54,<br />
N-60 and N-80 wind turbines, as well as all other components ordered by <strong>Nordex</strong> Energy GmbH from<br />
A. Friedrich Flender AG. There is no purchase requirement on behalf <strong>of</strong> <strong>Nordex</strong> Energy GmbH. <strong>Nordex</strong><br />
guarantees <strong>to</strong> purchase at least 70% <strong>of</strong> the <strong>to</strong>tal euro value <strong>of</strong> its requirement for individual types <strong>of</strong><br />
gears per fiscal year from A. Friedrich Flender AG on the condition that the gears <strong>of</strong>fered by A. Friedrich<br />
Flender AG are competitive in terms <strong>of</strong> price, quality, warranty, availability and dependability <strong>of</strong> aftersale<br />
service. The value <strong>of</strong> the gears purchased from A. Friedrich Flender AG in a given fiscal year may<br />
not exceed 80% <strong>of</strong> the <strong>to</strong>tal value <strong>of</strong> its requirement for gears in the prior fiscal year. The agreement<br />
may be terminated no earlier than September 30, 2010. After that, the agreement can be terminated at<br />
the end <strong>of</strong> a year with six months’ notice. The agreement applies <strong>to</strong> all controlled subsidiaries <strong>of</strong> <strong>Nordex</strong><br />
Energy GmbH, i.e. all subsidiaries in which <strong>Nordex</strong> Energy GmbH holds an interest in excess <strong>of</strong> a 25%<br />
blocking minority, except Südwind Energy GmbH, with which a separate agreement has been<br />
concluded.<br />
An agreement with the same terms and conditions relating <strong>to</strong> the Südwind S-70 was entered in<strong>to</strong> on<br />
Oc<strong>to</strong>ber 1, 2000 between Südwind Energy GmbH and A. Friedrich Flender AG.<br />
Licensing agreement between Südwind Energy GmbH and pro + pro Energiesysteme GmbH & Co. KG<br />
On January 24, 2000, Südwind Energy GmbH and pro + pro Energiesysteme GmbH & Co. KG entered<br />
in<strong>to</strong> a non-exclusive licensing agreement limited <strong>to</strong> Germany for the manufacture and sale <strong>of</strong> S-70<br />
wind turbines (see ‘‘Business – Intellectual property rights – Patents, trademarks and licenses’’).<br />
Master agreements between <strong>Nordex</strong> Energy GmbH/Südwind GmbH and Babcock Gießerei GmbH<br />
On August 7 and 18, 2000, Südwind Energy GmbH and Babcock Gießerei GmbH entered in<strong>to</strong> a master<br />
agreement for the s<strong>up</strong>ply <strong>of</strong> hubs. This agreement does not stipulate a minimum volume and applies <strong>to</strong><br />
all deliveries <strong>up</strong> <strong>to</strong> December 31, 2001. On March 7, 2001, <strong>Nordex</strong> Energy GmbH and Babcock Gießerei<br />
GmbH entered in<strong>to</strong> a corresponding agreement which provides for a fixed term until December 31,<br />
2003, with the option <strong>to</strong> extend the agreement until December 31, 2005.<br />
The Company is <strong>of</strong> the opinion that the agreements described above contain standard market terms<br />
and conditions and were entered in<strong>to</strong> on arm’s-length terms.<br />
Research and Development<br />
The <strong>Nordex</strong> Gro<strong>up</strong> places great emphasis on continued development work. Mastery <strong>of</strong> the construction<br />
<strong>of</strong> wind turbines in their entirety requires a precise interplay among the individual component parts<br />
and ensures the efficiency <strong>of</strong> the products. However, the <strong>Nordex</strong> Gro<strong>up</strong> does not conduct its own<br />
research.<br />
The core components <strong>of</strong> wind turbines, in particular the control technology (including s<strong>of</strong>tware), the<br />
ro<strong>to</strong>r blades, electrical components and the pitch regulation system, determine the quality <strong>of</strong> the<br />
overall turbine and therefore are developed and improved primarily by the Company’s own employees.<br />
The <strong>Nordex</strong> Gro<strong>up</strong>’s internal know-how ranges from the technical design <strong>of</strong> the wind turbine, <strong>to</strong> the<br />
functioning <strong>of</strong> the blades, <strong>to</strong> control and inverter technology.<br />
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