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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not authorized <strong>to</strong> construct other buildings not serving this purpose. To secure development and<br />
ensure utilization <strong>of</strong> the property in line with the agreement, the city <strong>of</strong> Ros<strong>to</strong>ck has reserved the right<br />
<strong>to</strong> repurchase the property. In the event that <strong>Nordex</strong> Ro<strong>to</strong>r GmbH sells the property within five years<br />
after its acquisition, <strong>Nordex</strong> Ro<strong>to</strong>r GmbH must pay over any pr<strong>of</strong>it made on the sale <strong>to</strong> the city <strong>of</strong><br />
Ros<strong>to</strong>ck.<br />
On September 27, 1999, <strong>Nordex</strong> Energy GmbH made a notarized <strong>of</strong>fer valid from August 31, 2004, <strong>to</strong><br />
Oc<strong>to</strong>ber 31, 2004, <strong>to</strong> purchase 32,395m 2 <strong>of</strong> land on Erich-Schlesinger-Straße, Ros<strong>to</strong>ck, which it has<br />
been renting since September 1, 1999. Rental payments made <strong>up</strong> <strong>to</strong> the date <strong>of</strong> purchase will be<br />
deducted from the purchase price. Therefore the parties understand that the entire purchase price will<br />
have been paid by the time the <strong>of</strong>fer can be accepted. A notice <strong>of</strong> exemption pursuant <strong>to</strong> Article 1,<br />
Section 4, Paragraph 3 <strong>of</strong> the Umweltrahmengesetz (Environmental Framework Act) <strong>of</strong> June 29, 1999,<br />
in the form laid down by Article 12 <strong>of</strong> the Gesetz zur Beseitigung von Hemmnissen bei der<br />
Privatisierung von Unternehmen und zur Förderung von Investitionen (Act for the Removal <strong>of</strong> Barriers<br />
<strong>to</strong> the Privatisation <strong>of</strong> Companies and the Promotion <strong>of</strong> Investment) <strong>of</strong> March 22, 1999, was issued <strong>to</strong><br />
the former owner <strong>of</strong> the aforementioned site. This notice exempts 90% <strong>of</strong> the overall costs <strong>of</strong> measures<br />
necessary for averting risks caused by residual waste. The exemption is expected <strong>to</strong> be transferred <strong>to</strong><br />
Landesgesellschaft Mecklenburg-Vorpommern and thereafter <strong>to</strong> <strong>Nordex</strong> Energy GmbH. If this occurs,<br />
<strong>Nordex</strong> Energy GmbH will be required <strong>to</strong> bear 10% <strong>of</strong> the costs for measures <strong>to</strong> avert the risk caused by<br />
residual waste. For measures <strong>to</strong> avert the risk caused by residual waste, which arose after July 1, 1990<br />
and prior <strong>to</strong> September 1, 1999, <strong>Nordex</strong> Energy GmbH will assume the first DM 500,000 <strong>of</strong> the costs for<br />
such measures. Landesgesellschaft Mecklenburg-Vorpommern will assume any costs between<br />
DM 500,001 and DM 1 million. Costs exceeding DM 1 million will be borne by <strong>Nordex</strong> Energy GmbH.<br />
Litigation<br />
Except for the matters detailed below, neither the Company nor its subsidiaries have been involved in<br />
any legal or arbitration proceedings that have had or could have a material influence on the economic<br />
position <strong>of</strong> the Company or on its subsidiaries in the past two fiscal years or since their formation. With<br />
the exception <strong>of</strong> the matters detailed below, <strong>to</strong> the best <strong>of</strong> the Company’s knowledge and that <strong>of</strong> its<br />
subsidiaries, no such proceedings are currently threatened.<br />
In an agreement dated November 22, 2000, Borsig Energy GmbH under<strong>to</strong>ok <strong>to</strong> release the Company<br />
from obligations resulting from litigation with Aerpac Aerodynamic Products and Consultancy B.V.<br />
(including the costs required for the retr<strong>of</strong>it program agreed for this purpose – <strong>up</strong> <strong>to</strong> an agreed<br />
maximum amount), from the claims made by the Danish purchaser <strong>of</strong> Ekter Aioliki S.A. due <strong>to</strong> this<br />
company’s litigation with ITA S.A., and from claims arising out <strong>of</strong> disputes with Wehrle Werk AG,<br />
Energiekon<strong>to</strong>r Windkraft GmbH, BOREAS Energie GmbH and Atlas Energieanlagen GmbH & Co. KG<br />
Windpark Neur<strong>up</strong>pin. These disputes and litigation are described below. With the exception <strong>of</strong> the costs<br />
for the retr<strong>of</strong>it program, this liability release undertaking applies <strong>up</strong> <strong>to</strong> a maximum <strong>to</strong>tal amount <strong>of</strong> DM<br />
20 million. In the light <strong>of</strong> the current status <strong>of</strong> the disputes and litigation, including a settlement<br />
agreed with ITA S.A., the Company believes that this amount is sufficient.<br />
Litigation with Aerpac Aerodynamic Products and Consultancy B.V.<br />
Aerpac Aerodynamic Products and Consultancy B.V. (‘‘Aerpac’’) is one <strong>of</strong> <strong>Nordex</strong> Energy GmbH’s longstanding<br />
s<strong>up</strong>pliers for ro<strong>to</strong>r blades. <strong>Nordex</strong> Energy GmbH concluded a master s<strong>up</strong>ply agreement for the<br />
s<strong>up</strong>ply <strong>of</strong> ro<strong>to</strong>r blades with this company in early 1999. In this contract, <strong>Nordex</strong> Energy GmbH<br />
under<strong>to</strong>ok <strong>to</strong> purchase at least one set <strong>of</strong> blades per week. The contract was <strong>to</strong> run until December 31,<br />
2003.<br />
Having ascertained material technical defects, <strong>Nordex</strong> Energy GmbH, having given notice and<br />
threatened <strong>to</strong> reject future shipments, terminated the agreement for good cause on Oc<strong>to</strong>ber 25, 2000.<br />
<strong>Nordex</strong> Energy GmbH cancelled the orders it had already given under the contract.<br />
Aerpac asserts that the termination <strong>of</strong> the agreement was not based on good cause and that the<br />
defects were not development or manufacturing defects, but rather damage resulting from blade<br />
vibration due <strong>to</strong> the ro<strong>to</strong>r being overburdened. Aerpac therefore demands that <strong>Nordex</strong> Energy GmbH<br />
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