84/2011 - Information about the conclusion of a material agreement

The Management Board of Trakcja - Tiltra S.A. (hereinafter referred to as: the “Company”) hereby announces that on 30 December 2011, a subsidiary of the Company - AB Kauno tiltai, with its registered office in Kaunas, Lithuania (hereinafter referred to as: “Kauno”), concluded a material agreement(hereinafter referred to as: the “Agreement”) with the Kaunas town hall (hereinafter referred to as: the “Customer”)

 

 

Value of the Agreement:

 

The total net value of the agreement, LTL/PLN rate, amounted to: PLN 131,693,659.52.

 

The total gross value of the agreement, LTL/PLN rate, amounted to:PLN 154,549,583.90.

 

 

 

Subject matter of the Agreement:

 

Under the Agreement, Kauno was commissioned to perform professional works related to the construction of a bridge between A. Juozapavičiaus St. and Tilto St. in Kaunas and services for preparation of a working design, as well as engineering services.

 

Term of performance of the Agreement:

 

The above works must be performed within thirty (30) months from the entry into force of the Agreement.

 

Contractual penalties:

 

The Customer has the right to reduce the settlement amount (as determined in a separate agreement concluded with the Customer in each year of the Agreement, to be invoiced in a given year by Kauno) by 0.02 percent of the amount of the remaining works that were not performed in a given year (the works set out in the settlement agreement to be performed in a given year) for each day of delay, should Kauno fail to perform works or services in accordance with the schedule or the date designated by the Customer or fail to remove any defects that arose by fault of Kauno.

 

 

The other terms and conditions of the agreement are similar to those commonly used for these types of agreements.

 

The criterion for recognition of the agreement as material one is the fact that its value exceeded 10% of the equity capital of Trakcja Polska - Tiltra S.A.

 

Legal basis: § 5 paragraph 1 point 3 of the Regulation of the Minister of Finance dated 19 February 2009 on the current and periodic disclosures to be made by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state. 

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