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. (the “Company”) would like to confirm that at the hearing held on 29 May 2017 in the case under file no XXV C 160/10, the Company concluded with the State Treasury – the General Director for National Roads and Motorways (“GDDKiA”) a settlement before the Regional Court in Warsaw, XXV Civil Division, (the “Settlement”) concerning the dispute in connection with the execution of the contract for „Upgrade of national road 7 into express way at the section Białobrzegi – Jedlińsk” (the “Contract”).

Under the Settlement, GDDKiA accepted the Company’s claims and committed itself to pay the amount of PLN 11,306,123.37 to the Company and to withdraw the demand for payment of funds under bank guarantee number 2096/2010/FIN issued by Société Generale Spółka Akcyjna Branch in Poland at the request of Mostostal in connection with the Contract. The Company, on the other hand, committed itself to execute works consisting in the repair and roughening of parts of road S7 at the section Białobrzegi – Jedlińsk, together with the provision of the quality guarantee for the executed works. In addition, in order to secure the claims of GDDKiA in connection with the lack of surface interlayer adhesiveness on certain parts of the road under the quality guarantee granted the Company committed itself to provide GDDKiA with a bank or insurance guarantee for the amount of PLN 184,918.20. The Company also committed itself to withdraw the lawsuit and waive the claim in the proceedings currently pending before the Court of Appeal in Warsaw for establishing non-existence of the GDDKiA’s right to use the performance bond for the Contract in any amount by requesting the payment of funds from bank guarantee number 2096/2010/FIN (Supreme Court file no I CSK 223/16). In addition, the parties to the Settlement have waived their mutual claims in connection with the Contract, except for the claims of GDDKiA for repair works to the execution of which the Company committed itself under the Settlement and those resulting from the quality guarantee and the bank or insurance guarantee granted under the Settlement.

As a result of the Settlement, on 29 May 2017 the Regional Court in Warsaw, XXV Civil Division, issued a decision on discontinuation of proceedings in the case under file no XXV C 160/10. The decision is not final.