Conclusion of a significant contract
The Management Board of Polimex-Mostostal S.A. informs that on 07.07.2009 they signed aContract with a group of companies comprising ALSTOM Power Systems GmbH, Stuttgart,Germany and Hitachi Power Europe GmbH, Duisburg, Germany regarding ‘Installation of the steelstructure of the lower part of the boiler room, Bunkerhaus + boiler bunkers and the F 1100 MWpower unit channels’, Construction of the Neurath power generating plant in Grevenbroich, Germany.
Net value of the Contract is 12,603,288.00 EUR (55,091,492 PLN).
Total value of the Contracts signed within the last 12 months with the foregoing group of companiesamounts to 26,418,452 EUR (115,475,966 PLN) net and includes completion and supply of 2,710tons and installation of 22,700 tons of steel structures for the boiler room, bunker room, boilerbunkers and the F 1100 MW power unit channels.
Realisation deadline: 07.09.2010.
1. Advance payment – a 15% advance payment for the provision of, each time free of charge, untilinstallation completion (i.e. by 07.09.2010 at the latest) punctual advance guarantee for that amount(with respect to total price).
2. Advance invoices - 85% per instalment: supply and confirmed reception of materials at theconstruction site, possibly instalment involving consideration consistent with monthly works progressprotocols acknowledged by Ordering Parties.
To secure contract performance, the Contractor shall provide each of the Ordering Parties with a bankguarantee as a performance bond amounting to 5% of its proportional order value, with validityperiod until installation completion. Period of validity of the bank guarantee as a performance bondexpires on 07.09.2010 at the latest.
Following installation completion and correct acceptance inspection conducted by the OrderingParties, guarantees due to liability for material defects for 5% of the effective order, with validityperiod until expiry of the guarantee for claims arising from material defects. Period of validity of thebank guarantee due to liability for material defects expires on 07.09.2013 at the latest, however.
1. Contractual penalty in the event of delays in supplies and provisions - 1% per full week of delay,maximum 7.5% of the Contractual amount
2. Contractual penalty in the event of delayed documentation provision – 0.1% per full week of delay,maximum 1.5% of the Contractual amount
3. Contractual penalties in total – maximum 10% of the Contractual amountContractual penalty for the Contractor does not exclude further claims of the Ordering Parties.
Thecontractual penalty shall not be included in any compensatory claims whatsoever.
The criterion according to which the Contract has been deemed significant is the value of Polimex-Mostostal S.A. equity capitals.
Legal grounds: § 5 (1) (3) and § 9 of the Ordinance of the Minister of Finances dated 19 February2009 on current and periodical information provided by issuers of securities and terms of deeminginformation required by the regulations of a non-Member State equivalent (Journal of Laws of 2009,no. 33, item 259).