Investor relations

Report concerns:
Making a significant agreement

Report’s text:
Acting on the basis of § 5 sect. 1, point 3 of Minister of Finances resolution dated on October 19th 2005 concerning the valid and periodic information conveyed by issuers of securities (Dz. U. dated on 2005, No. 209, poz. 1774) ("Resolution") J.W. Construction Holding S.A. with head quarters in Ząbki (“Company”) informs, that on August 30th it made with MOSTOSTAL WARSZAWA S.A. with headquarters in Warsaw (“Contractor”) an agreement (“Agreement”), which subject is making by the Contractor a reinforced concrete construction and brick works of buildings A, B, C1, D1, E1, D2 in scope of set of multi-family buildings "Górczewska Park" which will arise in Warsaw at 181 Górczewskiej Street (“Investment”).

Fixed date of finishing by the Contractor works was decided in the Agreement on May 9th 2008. Total Contractor’s emolument by way of completion of the Agreement was preliminary decided for amount 41.051.065 PLN nt. The Contractor’s emolument shall be paid on the basis of received by the Company invoices issued on the basis of works execution acceptance protocols. Within 14 days from date of Agreement signing the Contractor receives advance payment in amount of 15% of decided emolument extended by VAT rate, provided that the Contractor had transferred for the benefit of the Company unconditioned bank warranty concerning the advance payment. In case works have been stooped because of the Company’s fault or in situation works have been stopped by organ of public authorities (excluded decision issued because of Contractor’s fault), Contractor is entitled to be paid back on the grounds of stoppage for each day of the stoppage, until potential agreement made by both parties concerning a break in works execution. Parties may decide a break in execution and together agree on expenditures on de-mobilization and re-mobilization, which shall be paid by the Company.

According to the Agreement, any Party is entitled to claim for penal fee in amount of 10% net value of the Contractor's salary in case the party withdraws from the Agreement on the basis of reasons specified in it. The Company shall also be entitled to penal fees on the grounds of delays in meeting works dates and delays in found damages, in scope of warranty. Total amount of penal fees can not exceed 10% of the Contractor’s salary specified in the Agreement, and paying the penal fee doesn’t exclude a possibility of claiming pretension extending the amount of the penal fee. The Contractor shall transfer for the benefit of the Company an unconditioned, irrevocable and paid on the basis of first demand bank warranty of correct execution of the agreement in amount of 5% of the Contractor's emolument, and, at the latest on day of final acceptance, unconditioned, irrevocable and paid on the basis of first demand, bank warranty concerning the warranty period in amount of 1,5% of Contractor’s emolument.

The basis to consider Agreement being valid is regulation included in §2 sect. 1, point 51 a Of Resolution – value of made agreement exceeds 10% of own capitals of the Company.