11/2013 – Information about the conclusion of a material contract

The Management Board ofTrakcja S.A. (‘Company”, “Contractor”) hereby informs that on 6 February 2013 the Company concluded with Łódzka Kolej Aglomeracyjna Sp. z o.o. with its seat in Łódź (“Employer”) a material contract for designing and building a technical back facility due to the following project conducted by the Employer:  “Construction of Municipal Railway System in Łódź” (“Contract”).

Value of the Contract:

Total net value of the Contract: PLN 55,245,333  (in words: fifty five million two hundred and forty five thousand three hundred and thirty three zlotys)

Total gross value of the Contract: PLN 67,951,759.59  (in words: sixty seven million nine hundred fifty one thousand seven hundred and fifty nine 59/100 zlotys)

Subject Matter of the Contract:

Under the Contract, the Company shall perform works regarding design and construction of technical back facility across Łódź-Widzew railway station according to the project called “Construction of Municipal Railway System in Łódź” to be performed by the Employer.

Term of performance of the Contract:

Works shall be designed and performed by 31 May 2014 (“Completion Period”)

Term of Guarantee:

Term of Guarantee (defects reporting period): 36 months as of the date of issuing a Take-Over Certificate.

Liquidated damages:

Liquidated damages for delay in works performance:  0.2% of the gross value of the Contract per each day falling between the final date of Completion Period and the date specified in the Take-Over Certificate, acknowledging sub-clause 10.2 [Take-over of part of Works] acc. to FIDIC, i.e. if the Take-Over Certificate is issued for a part of Works then liquidated damages for a delay in completing the remaining part of Works shall be reduced pro rata. The Employer shall be entitled to seek damages from the Contractor in the amount exceeding liquidated damages for a delay, in lieu of general provisions.

Liquidated damages for delay in redressing defects: 0.1% of gross value of the Contract per each day of delay. The Employer shall be entitled to seek damages from the Contractor in the amount exceeding liquidated damages for a delay, in lieu of general provisions.

The maximum amount of the contractual indemnity shall be as follows: 20% of gross value of the Contract.

Other conditions of Contract:

Other terms and conditions of the Agreement are similar to those commonly used for these type of agreements.

Importance criteria:

Value of Contract exceeds 10% of Company’s equity.

Legal basis: § 5 sec. 1 item 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.