Change of the terms of a significant contract

Legal basic: Article 17(1) MAR

With reference to Current Report No. 20/2017 of February 23, 2017, the Management Board of "Polimex-Mostostal" SA with its registered office in Warsaw (the "Company") informs that today the terms of the Agreement ("Agreement") have been amended to cover the delivery, delivery and assembly of the supporting steel structure of the channels and reactor as well as the construction of the channels and reactor for the SCR plant and 10 in ENEA Wytwarzanie Sp. z o. o. ("ENEA Wytwarzanie"), concluded between Polimex Energetyka Sp. z o. o. (a subsidiary of the Company) ("Contractor") and Rafako S.A. based in Raciborz ("Ordering Party") ("Annex").

On the basis of the Annex, the Contractor and the Employer have waived all claims against the other party as they claim according to the claims of the claimant on the basis of or in connection with events occurring under the Agreement until the conclusion of the Annex, taking into account that the above applies both claims known at the date of conclusion of the Annex, and claims unknown at this date and duly reported or not reported until the Annex date, with the exception of contractual penalties that ENEA Wytwarzanie imposes on the Employer for reasons attributable to the Contractor, the Contractor's liability was limited to PLN 3,200,000.00.

According to the Annex, unit rates have been changed. The Contractor's estimated remuneration for performance of the subject of the Contract is currently PLN 60,010,992.06 net and will be paid in accordance with the amended.

Pursuant to the provisions of the Annex, the Contractor undertook to perform the subject of the Agreement: (i) in the scope of delivery by 30/09/2018 and (ii) in the scope of assembly by 12/02/2019. As a consequence, the schedule of deliveries and assembly was changed, constituting an attachment to the Agreement. The deadline for deliveries on the side of the Ordering Party was also established, and it was stipulated that in the event of delay in deliveries on the part of the Ordering Party, the terms of the Contract shall be extended accordingly by the number of days of delivery delays in relation to the dates indicated in the delivery and assembly schedule.

The Contractor, not later than within 30 days after signing the Annex, is obliged to submit to the Ordering Party an annex to the performance guarantee of the Contract, taking into account changes resulting from the Annex.

In addition, the Annex contains arrangements for the current financial settlements of the Contractor and the Employer. The Ordering Party undertook to pay the Contractor, due as at the date of the Annex, the amounts due for the works completed by the Contractor in the total gross amount of PLN 4,922,650.5, within 14 days from the date of signing the Annex.

Other conditions of the Agreement indicated in the current report No. 20/2017 of February 23, 2017 have not changed.