Current report no. 17/2014 (22.05.2014)
Title:
Conclusion of a construction contract within execution of the project „Infrastructure of research and development facilities to ensure innovative market position of the company”.
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
The Management Board of the Issuer hereby informs that on the 21st May 2014 the company URSUS S.A. (the Ordering Party) concluded with the Construction Company „ELIN” sp. z o.o. with the the seat in Wrocław (the Contractor) a construction contract. The subject of the concluded agreement is execution by the Construction Company „ELIN” sp. z o.o. for URSUS S.A. of construction works and completion of executive projects concerning reconstruction of selected parts of the production hall in the main seat of the Company in Lublin, including the infrastructure of the external facilities, as well as obtaining a legally binding decision for URSUS S.A. regarding the occupancy permit for the renovated hall.
The total net value of the Agreement is 9 835 378,00 PLN. The Contractor will receive a lump sum remuneration and he can not demand a remuneration increase regardless of actual scope of works necessary for execution of the subject of the Agreement. Settlements between the Ordering Party and the Contractor will be executed monthly on the basis of partial invoices, issued in accordance with the Partial protocols of completion of construction works and state of the activity-and-finance progress, signed by the Investor Supervision Inspectors and the Site Manager. Besides, the Ordering Party reserved that the final invoice in the amount of at least 10% of the value of the gross remuneration to which the Contractor is entitled for execution of the subject of the Agreement, will be issued by the Contractor after signing by the Parties without reservations the Protocol of final acceptance of completion of the subject of the Agreement with the legally binding decision regarding the occupancy permit enclosed.
The deadline for performance of the Agreement is the 31st December 2014, with reservation that the deadline can be extended till the 31st May 2015 only at the consent of PARP and URSUS S.A.
The above mentioned Agreement was concluded as a result of for selecting the most economically advantageous offer presented to the Company URSUS S.A. in response to the written open tender issued by the Issuer within its execution of the project „Infrastructure of research and development facilities to ensure innovative market position of the company”, implemented on the basis of the agreement concluded with on the 30th September 2013 with the Polish Agency for Enterprise Development - PARP (Current Report no. 26/2013), within the Operational Programme Development of Eastern Poland 2007-2013, Priority Axis I Modern Economy, task I.3 Supporting innovativeness.
The agreement contains the provisions related to the contractual penalties that secure the Issuer. According to the Agreement, the Contractor shall pay the Ordering Party a penalty for, inter alia, a delay in execution of the subject of the Agreement, delay in removal of defaults, withdrawal from the Agreement by the Ordering Party caused by reasons imputable to the Contractor, causing pause in execution of works caused by reasons imputable to the Contractor and for violation of other contractual provisions, in particular related to the obligations of the Contractor, after an additional request of the Ordering Party to perform correctly the obligation.
Payment of contractual penalties does not exclude the right to indemnity claims, which may exceed the value of the aforementioned penalties.
The terms of the concluded co-financing agreement do not differ from the standard terms commonly used in construction contracts.
The concluded agreement is considered material due to the fact that its total amount exceeds 10% of the Issuer’s equity.
The legal grounds of transmission of the present report are § 5 sec. 1 point 3 in connection with § 9 the Regulation of the Minister of Finance dated 19 February 2009 regarding current and interim reports published by issuers of securities and the terms of finding as equivalent the information required under the laws of any non-member state (Journal of Laws, 2009 No. 33, point 259 with subsequent changes).
