3/2010 - Information on the conclusion of a significant contract

The Management Board of Trakcja Polska S.A. (the "Company") hereby announces that the Company concluded the following Contract No. 02/PEŁ/ETP1/2010 for construction works – general contracting (“Contract”) on 26 February 2010 with its subsidiary, PRK 7 Nieruchomości sp. z o.o., with its registered office in Warsaw (the “Investor”).

 

Net Contract value:

 

PLN 41,563,000.00 (forty-one million, five hundred and sixty-three thousand zlotys).

Subject of the Contract:

 

According to the Contract, the Company shall perform construction works, involving the construction of buildings and technical infrastructure, in accordance with the construction design attached to the Contract.

 

Payment terms:

 

The fee shall be paid against interim invoices and a final invoice issued by the Company, to its bank account specified in the invoices.

 

The parties to the Contract have agreed that the payment term is 60 days from the date of delivery of the invoice to the Investor’s registered office.

 

The invoice payment date shall be the date on which the Investor’s account is debited.

 

Security for the performance of the contract:

 

The parties have agreed that the Company’s liability under the guarantee and warranty for the performance of the subject of the contract is 38 months from the date of final acceptance.

 

In order to secure the proper performance of the Contract and the proper repair of faults and defects in the period of the guarantee, the Investor shall retain a deposit of 5% of the amount of the given invoice from every invoice.

 

The guarantee deposit shall be returned to the Company according to the following principles:

¾      70% within 30 days of the final acceptance of the completed works and after repairing the faults and defects;

¾      30% within 30 days of the end of the warranty and guarantee period.

 

The parties admit the possibility of the refund of the second part of the guarantee deposit after delivery of a bank or insurance guarantee according to separate arrangements.

Liquidated damages:

 

In the event of a delay by the Company in the fulfilment of the subject of the Contract, the Investor may demand the payment of liquidated damages.

The level of the liquidated damages is:

- For late fulfilment of the subject of the contract – 0.05% of the gross contractual fee per day of delay;

- For late repair of defects during the warranty period – 0.05% of the gross contractual fee per day of delay;

- For withdrawal from the contract for reasons for which the Company is responsible – 10% of the gross contractual price.

 

Charging the liquidated damages does not deprive the Investor of the right to claim for the remedy of the actual damage.

 

Withdrawal from the Contract by the Investor does not release it from the payment of the fee due to the Company for the scope of works completed up to the date of the withdrawal.

 The value of the above Contract is greater than 10% of Trakcja Polska S.A.’s equity and therefore constitutes a significant contract, as defined by § 2(1)(44) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information submitted by issuers of securities and conditions for acknowledging the information required by the provisions of the law of a non-member state as being equivalent (Journal of Laws No. 23, item 259).

 

Legal grounds:Article 56(1) of the Act on Public Offering and the Conditions for the Introduction of Financial Instruments into an Organised Trading System and Listed Companies of 29 July 2005 (Journal of Laws No. 184, item 1539, as amended).

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