35/2013 – Information on concluding a material contract

The Management Board of Trakcja S.A. (“Company”) hereby informs that within the last 12 months the Company and its subsidiaries executed contracts with PKP Polskie Linie Kolejowe S.A. of total value around PLN 61,861,392. 29  net (say: sixty one million eight hundred sixty one thousand three hundred ninety two 29/100 Polish zlotys net). The final total value of contracts concluded by the Company and its subsidiaries with PKP Polskie Linie Kolejowe S.A. within the last 12 months shall be established after the executory agreement is signed, which shall define the final value of the order made between Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A. (“PRKiI”) – the Company’s subsidiary and Przedsiębiorstwo Budownictwa Kolejowego i Inżynieryjnego “INFRAKOL” s.c. Jan Paruch, Zenon Buca, Sławomir Paruch with its registered office in Jawor, regarding the Contract below.The contract with the highest value shall be the contract concluded on 2 April 2013 [“Contract”] with PKP Polskie Linie Kolejowe S.A. (“Ordering Party”) by PRKiI, as the Representative of the consortium composed of:

– Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A.- the Representative of the consortium,

– Przedsiębiorstwo Budownictwa Kolejowego i Inżynieryjnego “INFRAKOL” s.c. Jan Paruch, Zenon Buca, Sławomir Paruch with its registered office in Jawor – the Partner of the consortium.

(together: “Contractor”)

Value of the Contract:

The total net value of the Contract: PLN 88,858,500.00 (say: eighty eight million eight hundred fifty eight thousand five hundred Polish zlotys).

The total gross value of the Contract: PLN 109,295,955.00  (say:one hundred nine million two hundred ninety five thousand nine hundred fifty five Polish zlotys).

Part of the net value of the Contract, which falls on PRKiI:  62.29%.

Contract subject:

The Contractor agrees to perform tasks under the Contract with respect to the development of design documentation and execution of construction activities for the project concerning comprehensive repair of railway infrastructure under the name: “Revival of 144 Fosowskie – Opole railway line.

Contract deadline:

The completion and settlement of the entire subject of the Contract by 28 November 2014.

Contractual indemnity:

The Contractor shall pay the Ordering Party contractual penalties in the following cases and in the following amounts:

– 0.02% of the gross remuneration per each day of delay in delivering the contract subject with respect to deadlines as stipulated in the Contract,

– 0.02% of the gross remuneration per each day of delay after expiration of the deadline for removing defects,

– in case of withdrawal from the Contract due to circumstances in which the fault is on the part of the Contractor – 10% of the gross remuneration,

– in case of any delays caused by the Contractor in presenting the person satisfying the Ordering Party’s criteria as regards professional experience and licences held stipulated in the Contract – 0.01% of the gross remuneration per each day of delay,

– as a result of subcontracting tasks or works by the Contractor to the Subcontractors, without the required consent of the Ordering Party – 0.02% of the gross remuneration for executing the Contract subject,

– 0.02% of the gross remuneration per each day of delay after expiration of the deadline for dealing with minor outstanding works and defects in accordance with the provisions of the Contract.

The Ordering Party shall pay the Contractor contractual penalties in the following amounts:

1)            0.02% of the value of the Contract subject per each day of delay in delivering the area of construction works,

2)            0.02% of the value of works subject to receipt per each day of delay in accepting the Contract subject or part thereof,

3)            in case of withdrawal from the Contract due to circumstances on the part of the Ordering Party – 10% of the gross remuneration.

The Party that failed to perform its contractual obligation within the stipulated deadline shall be provided with additional deadline established by the other party. In case of failure to perform this obligation within the additional deadline, the amount of the contractual penalty is increased by 50%.

The maximum total amount of the calculated contractual penalties may not exceed 30% of the value of the gross remuneration.

The Parties reserve their right to supplemental compensation transferring the amount of contractual penalties up to the value of the actual damage incurred (Article 484 of the Civil Code).

The remaining terms and conditions of the Contract are similar to those commonly used for these types of contracts.

The total value of the above-mentioned agreements exceeds 10% of the share capital of the Company.

Legal basis: § 5 paragraph 1 point 3 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.ance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.