ELEKTROBUDOWA SA - contract with EDF Polska

With reference to the Current Report 19/2014 dated 26 September 2014, the Management Board of ELEKTROBUDOWA SA (further referred to as Contractor) inform, that on 13 October 2014 the Company signed a contract with EDF Polska S.A. having its registered office in Warsaw (further referred to as Owner) for "Design and construction of balance of plant for a new peak load heat generation plant at EDF Polska S.A. Kraków branch" (further referred to as Contract).

The remuneration due to the Contractor for performance of the Contract is 55 800 000.00 PLN, net.

The contractual works shall be commenced within 8 weeks since the Contract has been signed.Schedule completion of works: the second half of 2016.The aggregate cap for all liquidated damages which the Owner can charge the Contractor, shall not exceed 15% of the Contractor's remuneration (net).In the case of withdrawal from the Contract due to Contractor's default, the Owner can charge the Contractor with contractual penalty in the amount of 10% of the net contract price.

The above contractual penalty shall not exclude the right of the Owner to claim for liquidated damages for delay and to claim for additional compensation, subject to the Contractor's liability limitations contained in the Contract.The Contractor's liability limit under the Contract shall not exceed 100% of the net contract price; however the above limit is not applicable in the following cases: a) payments made to the Contractor under insurance policies required under the Contract - in this case the liability limit of the Contractor is 300% of the net remuneration payable to the Contractor, b) the Contractor's liability in the case of fraud, fraudulent misrepresentation, gross negligence, willful misconduct, c) the Contractor's liability in respect of its obligations towards environment protection - in this case the liability limit of the Contractor is 150% of the net remuneration payable to the Contractor, d) the Contractor's liability due to the sickness, injury, disease or death of any person whatsoever engaged by the Owner or other contractors or any other third party, arising out of or in course of or in connection with the performance of the Contract.The Contract is significant as its price exceeds 10% of equity of ELEKTROBUDOWA SA.

Other conditions of the Contract do not differ from terms generally applied to this type of contracts.Pursuant to Art. 5 section 1.3 of the Regulation of the Minister of Finance dated 19 February 2009 on current and interim information.Legal basis:Art. 56 item 1.2 of the Public Offering Act - current and interim information.

More information on page: biznes.pap.pl

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