Agreement on the settlement of the contract entitled: Construction of the pipeline DN700 Szczecin-Gdańsk

The Board of Stalprofil S.A. announces that on 9 December 2015 was signed by OGP Gaz-System S.A. the agreement which sets out the conditions for the settlement of a contract concluded on 10 May 2012 between a consortium of companies (Contractor) composed of ZRUG Zabrze S.A. (Leader of the Consortium), Stalprofil S.A. (Participant of the consortium) and OGP Gaz-System S.A. with its registered seat in Warsaw, about General Investment under the name "Construction of the pipeline DN700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Phase III Koszalin-Słupsk and Phase IV Słupsk-Wiczlino".
The agreement concluded between the Contractor and Gaz-System S.A. defines the terms of settlement of the rest of the remuneration of contract in the amount of 15,696,381.03 PLN (gross) by:
- settlement of the amount of 9,531,275.03 PLN the advance payment received by the Contractor from Gaz-System S.A.
- transfer of the amount of 6,165,106.00 PLN to the bank account of ZRUG Zabrze.
In view of the overall settlement of the advance received from Gaz-System S.A., to finance implementation of the contract by the Consortium Leader - ZRUG Zabrze S.A., in accordance with the above agreement to 15.12.2015 Gaz System S.A. will make a statement on the total reduction of the advance payment guarantees granted at the request Stalprofil by PKO BP S.A., that is at the amount of 21,372,404.59 PLN.
According to the agreement contractor gave Gaz-System S.A., to secure the recourse of the bank guarantee for an amount of 23,578,420.54 PLN, issued by PKO Polish Bank S.A. with its registered seat in Warsaw, for a period of 36 months from the date of issue, ie. until 7 December 2018. Gaz-System S.A. will be able to use collateral for claims of recourse against the Contractor, under the responsibility of the investor to subcontractors of ZRUG Zabrze S.A. and the potential of further subcontractors for the payment of their salaries, according to Art. 647 (1) par. 5 of the Civil Code, as well as interests and costs awarded to Gaz-System S.A.
The contractor submitted Gaz-System S.A. aforementioned bank guarantee as security for any claims, among other things subcontractors who did not submit statements attesting to regulate their remuneration. By adjusting its obligations under the contract execution ZRUG Zabrze S.A. - except payments - also performed the deductions from subcontractors mutual claims, pursuant to art. 498 of the Civil Code. These included receivables due to deliveries of materials and services to subcontractors for the implementation of the investments and receivables due to removal of defects on the works incorrectly executed by the subcontractors. The contractor said Gaz-System S.A., the settlement of remuneration payable to subcontractors for completion of the Investment, ZRUG Zabrze S.A. carried out properly.