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31/2010 - Information on the conclusion of a significant contract

The Management Board of Trakcja Polska S.A. (the “Company”) hereby announces that, on 11 October 2010, the Company, in connection with the performance of a contract for the task of:

 

The performance of construction works for the comprehensive modernisation of the stations and routes in the area of LCS Działdowo, within the framework of the E&I OP 7.1-41 project:

“Modernisation of the E65/C-E65 railway line, Warsaw – Gdynia section – area of LCS Działdowo” (”Contract”)

 

the conclusion of which the Company announced in current report no. 9/2010 of 31 May 2010, concluded a Contracting Agreement for the performance of some discipline-specific works (“Agreement”) within the framework of the Contract, with the Partner of the Trakcja Polska Consortium, a subsidiary, Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A., with its registered office in Wrocław, 50-950, at ul. Kniaziewicza 19 (hereainfter: “Partner”).

 

Net Agreement value:PLN 138,911,462.89

 

Payment terms:

 

The Partner shall issue VAT invoices for works completed and accepted once a month for a net amount arising from the acceptance protocol of the completed elements of the works.

 

Timing of the completion of the whole of the works arising from the Agreement:

 

25/02/2012


Advance:

 

The Partner may receive an advance of PLN 13,891,146.29 plus output VAT: PLN 3,056,052.18, i.e.: gross: PLN 16,947,198.47by 30/10/2010.

 


Liquidated damages:  

 

  1. The Company is entitled to charge liquidated damages of 0.05% of the Partner’s gross fee for every commenced day of delay if the Partner exceeds the deadlines for the performance of the works specified in the approved schedule, if PKP PLK S.A. charges such penalties to the Company. Notwithstanding the above, if the delay exceeds 15 days, the Company is entitled to withdraw from the Agreement, notifying the Partner in writing, without the need to set an additional deadline and without incurring any financial or legal consequences to the Partner’s benefit.  

 

  1. The Company is entitled to charge liquidated damages of 0.05% of the Partner’s gross fee for every commenced day of delay in starting to fix defects or in fixing defects if the Partner exceeds the deadlines for starting to fix defects / faults / shortcomings or for fixing them during the guarantee period or the period for their rectification if PKP PLK S.A. charges such liquidated damages to the Company. If the delay exceeds 3 days, the Company is entitled to contract for the rectification of the defects with a third party at the Partner’s expense. The Partner shall refund the costs of fixing the defects in such a manner within 7 days of the date of delivery to the Partner of documents confirming that the Company has incurred the costs of a third party fixing the defects.

 

  1. Each of the Parties to the Agreement shall pay the counter-party liquidated damages of 10% of the Partner’s gross fee for the withdrawal from the Agreement by either Party, which was responsible for the withdrawal.

 

  1. The liquidated damages are payable to the bank account specified by the Company within 3 days of the date of the demand by the Company.  

 

  1. The maximum amount of default penalties may not exceed 10% of Partner’s total gross fee. 

 

  1. The Company is entitled to claim compensation in excess of the liquidated damages referred to above on general terms if the damage suffered by the Company exceeds the value of the liquidated damages reserved in the Agreement to its favour. 


The value of the above Agreement is greater than 10% of Trakcja Polska S.A.’s equity and therefore constitutes a significant agreement, 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 state which is not a Member State as being equivalent (Journal of Laws No. 23, item 259).

 

 

Legal grounds:§ 5(1)(3) of the Regulation of the Minister of Finance of 19 February 2009 on current and regular information published by issuers of securities and the conditions for accepting information required by the provisions of the law of a state which is not a Member State as being equivalent.

 

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