Unformatted text preview: ovisions in
the amount of U.S.$ 4,690 relating to several other legal disputes and has also made deposits in
the amount of U.S.$ 6,003 in escrow accounts. (b) “Take-or-pay” contract
In connection with the sale of the electrochemical plant (see Note 2), the Company and
CanadianOxy Chemicals Holding Ltd. (CXY) entered into a long-term contract for chemical
products supply. The contract includes clauses of performance incentives such as sharing of
productivity gains, preference prices and "take-or-pay", by which the Company is committed to
acquire from the electrochemical plant purchased by CXY a volume of chemical products
conservatively projected for the next 6 years. Volumes purchased by the Company in addition
to the minimum agreed for a given year may be compensated with lower volumes acquired in
subsequent years. For the take-or-pay quantities, the Company will pay unit prices which equal
cost plus margin as determined in the contract.
33 Aracruz Celulose S.A.
Notes to Consolidated Financial Statements
Expressed in thousands of United States dollars
(unless otherwise stated) (c) Co...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08