20/2014 – Information on Conclusion of Annexe to Material Agreement

With reference to Current Report No. 30/2011 of 17 May 2011, the Management Board of Trakcja PRKiI S.A. with its registered office in Warsaw (hereinafter the “Company” or the “Issuer”) hereby informs that today it has been notified that Trakcja PRKiI S.A. in Warsaw and Thales Polska sp. z o.o. in Warsaw (hereinafter “Thales” or the “Contractor”) signed an annexe of 12 August 2014 (hereinafter the “Annexe”) to the Subcontracting Agreement No. P-6/2011 concluded between the Issuer and Thales on 16 May 2011 (hereinafter the “Agreement”). Detailed information regarding the Agreement, including its value, was provided by the Company in Current Report No. 30/2011 of 17 May 2011.

The Subcontracting Agreement was concluded between the Issuer and Thales in relation to the conclusion of the Contract No. 90/132/281/00/11000838/10/I/I for the design and implementation of construction works along the Kraków-Medyka-national border railway line in the Podłęże-Bochnia section from km 16.000 to km 39.000 under the project named “Modernisation of the E30/C-E30 Railway Line, Kraków-Rzeszów Section, Stage III” (hereinafter the “Main Contract”), between the Company and PKP Polskie Linie Kolejowe S.A. Centrum Realizacji Inwestycji (hereinafter “PKP”), on 2 November 2010. The conclusion of the Main Contract was announced by the Company in Current Report No. 34/2010 of 3 November 2010.

The Company informed about the conclusion of an annexe to the Main Contract, which amended the time limit for the performance of the Main Contract, in Current Report No. 7/2014 of 14 March 2014. Detailed information regarding the annexe to the Main Contract was provided in Current Report No. 7/2014.

Because of the conclusion of the annexe to the Main Contract, on 12 August 2014 the Issuer and Thales concluded the Annexe to the Agreement, by virtue of which the Parties amended the time limit for the performance of the Agreement and agreed that the Contractor would complete the subject of the Agreement by 11 January 2015. Furthermore, due to the extension of the term for the completion of the subject of the Agreement, in order to secure the proper performance of the Agreement and also the fulfilment of any other contractual obligations, Thales undertook to extend the validity of the guarantees, which it had already provided, in the amount of 10% of the gross value of the Agreement, in the following way:

• the guarantee up to the amount of PLN 6,731,175.00 (in words: six million seven hundred thirty one thousand one hundred and seventy five Polish zlotys, 00/100) in such a way as the term thereof shall expire on 27 March 2015, for any failure to perform or improper performance of works under the Agreement by Thales; and
• the guarantee up to the amount of PLN 2,019,325.50 (in words: two million nineteen thousand three hundred and twenty five Polish zlotys, 50/100) in such a way as the term thereof shall expire on 11 April 2016, for any claims under the guarantee of quality or warranty for defects, arising during the term thereof.

Any other provisions of the Agreement remained unchanged.

The Agreement has been considered to be material due to the fact that its value exceeded 10% of the Company's equity.

Legal basis: § 5 item 1 point 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as equivalent.