The Management Board of Mostostal Warszawa S.A. informs that today the company signed with Medical Investment Trust Sp. z o.o., a contract for “the execution of works under the general contractor for the investment involving the construction of the hotel building with apartments at the intersection of Mestwina and Międzymorze in Jurata with an underground garage with land development and technical infrastructure on the plot with registration number 326 of 0003 precincts Jastarnia".

The parties agreed the deadline for the completion of contract till 6 February 2018. 
The value of the contract amounts to PLN 14.50 million net.

Payment deadline: 30 days from the date of filing the invoice.

Guarantee periods: 60 months for the quality guarantee and guarantee for physical defects in the object of the contract.

The security for the proper performance of subject of the Agreement and claims arising from it is unconditional insurance performance guarantee of 10% of net salary. In the guarantee and warranty period the Contractor shall provide an unconditional and payable on each request bank or insurance guarantee removal of faults and defects after the final acceptance of the subject of the Agreement in the amount of 5% of the net salary.

The Management Board of Mostostal Warszawa S.A. (“Company”, “Borrower”), having received applicable documents today, informs that on 22^nd March 2017 Company entered into a short-term credit agreement and an agreement on limit on bank guarantees and letters of credit with Societe Generale Spółka Akcyjna Branch Office in Poland („Bank”).

Short-term credit agreement

By virtue of the agreement, Bank grants Company a short-term revolving credit to the amount of 10 million zlotys.

The credit may be used only as an overdraft facility on the account opened for the benefit of Borrower.

The credit is granted for the period from 15^th March 2017 to 31^st January 2018.

Other terms and conditions of the credit agreement do not deviate from those generally applicable for such a type of agreements.

Agreement on limit on bank guarantees and letters of credit

Within the framework of the agreement, Borrower is authorized to request that the following types of documents be issued:

1. Bank guarantees:

a)    on proper performance of contract with expiry date up to 5 years

b)    on tenders with expiry date up to 6 months

c)    on payments with expiry date up to 3 years

d)    financial guarantees with expiry date up to 1 year

e)    on implied warranty with expiry date up to 9 years.

2. Letters of credit.

By virtue of the agreement, Bank grants Company a limit to the amount of 25 million zlotys. The limit is granted as from the day of conclusion of the agreement to 31^st January 2018, except that:

a)    limit on guarantees with expiry date up to 5 years amounts to 25 million zlotys

b)    limit on guarantees with expiry date up to 9 years amounts to 5 million zlotys

c)    limit on letters of credit with expiry date/payment deferred up to 12 months amounts to 2.5 million zlotys.

Each guarantee or letter of credit issued by Bank at the request of Borrower, including applicable bank guarantees issued prior to the date of the Agreement, will result in automatic reduction of limit by the value of such a guarantee or letter of credit.

Other terms and conditions of the agreement on limit on bank guarantees and letters of credit do not deviate from those generally applicable for such a type of agreements.