The Board of Poznan's Construction Corporation Pekabex S.A. ("Issuer") hereby informs that today Pekabex Bet S.A. (a company wholly owned by the Issuer) signed a contract for construction and assembly works ("Agreement"), previously signed by PORR S.A. ("Purchaser"). The subject of the Agreement is the construction of a prefabricated structure for an investment under the name "Business Garden Poznań II- Poznań, Bułgarska / Łubieńska / Pastelowa". br> Salary due to Pekabex Bet S.A. due to the correct performance of services covered by the subject of the Agreement, it was set at PLN 21 107 000.00 net plus VAT in accordance with applicable law. The works will commence on July 10, 2017. The subject of the Agreement will be executed in stages, in accordance with the agreed schedule, with the deadline for completion of the assembly set to 11 May 2018. br> The contract contains standard provisions on contractual penalties for this type of contracts, including: 0.3% of the value of the building (stage) for which the net delay applies for each day of delay in relation to the dates of partial benefits (intermediate terms) as well as 0.2% of net remuneration for each day of delay in relation to the termination of the entire service. The parties have set an upper limit for contractual penalties for a delay of 10% of net remuneration. In addition, in the event of withdrawal from the Agreement by the Employer for reasons attributable to Pekabex Bet S.A. will be imposed on Pekabex Bet S.A. contractual penalty in the amount of 10% of net remuneration. The ordering party is also entitled to claim compensation for damage in the amount exceeding the contractual penalties accrued. However, in the case of withdrawal from the contract by Pekabex BET S.A. due to reasons attributable to the Ordering Party, a contractual penalty of 10% of net remuneration will be imposed on the Contracting Authority. br> The invoice payment deadline is 30 days from the date of delivery of the verifiable invoice. br> Pekabex Bet S.A. provide the Ordering Party with a security equal to 5% of the value of net remuneration with a validity period of 30 days longer than expected in the Agreement for the Investor to receive the Investments (expected on February 15, 2019), but no longer than May 15, 2019. Moreover, Pekabex Bet SA provide the Ordering Party with a security for removing defects and faults for an amount equal to 5%the value of net remuneration, with a validity period of 5 years plus 60 days from the date of expiry of the validity of the performance bond. br> Pekabex Bet S.A. he gave the Ordering Party a guarantee of quality and warranty for a period beginning with the receipt made by the Ordering Party and ending after 10 years and 60 days. br> Other terms of the Agreement do not differ from the standard terms for this type of contracts. br> The contract was considered significant due to the fact that the total value of contracts with the Employer this year exceeds 10% of the consolidated capital of the Issuer and amounts to PLN 36,881 891.54 net as well as expected and significant influence on the financial position of Pekabex Bet SA and, consequently, Pekabex Groups. Br>
Source: company website, investor relations, current and periodic reports.