Current report 47/20172017-11-23

Current report no. 47/2017 (22.11.2017)

Title:

Conclusion of a contract for delivery of electric buses with the city of Zielona Góra (Municipal Transportation Agency in Zielona Góra).

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of URSUS S.A. hereby informs that on the 22 November 2017 the Issuer’s subsidiary concluded on behalf of the Consortium URSUS BUS (Contractor), composed of URSUS BUS S.A. and the URSUS S.A., a contract with the city of Zielona Góra - the Municipal Transportation Agency (Miejski Zakład Komunikacji) in Zielona Góra (Ordering Party) a contract for delivery 47 new electric low-floor urban buses. Conclusion of the contract results from selection of the offer of the Consortium URSUS BUS in the open tender organized by the city of Zielona Góra (the Municipal Transportation Agency in Zielona Góra), of which the Issuer informed in the current report no. 39/2017 dated the 10th October 2017.

The gross value of the contract concluded by the Consortium is 96.482.700,60 PLN.

The Contract was concluded in compliance with the terms set out by the Ordering Party in the Terms of Reference.

Buses being subject of the Contract shall be delivered by the Contractor in lots in the second half of 2018.

The security of due performance of the Contract by the Contractor are two insurance guarantees granted upon the request of the Consortium URSUS BUS in the total amount of 10% of the contract value. The securities comply with the requirements specified in the Terms of Reference and in the Contract. Besides, the Contractor concluded a civil liability insurance in range of business activity, dedicated to execution of the Contract. The insured entities are the Contractor (all members of the Consortium) and the Ordering Party. The guarantee sum in the insurance period for one and all occurrences is 15 000 000,00 PLN.

The contract (§12) includes the provision on contractual penalties. Among others, the Contractor shall pay the Ordering Party a contractual penalty for withdrawal in part from the Contract by the Ordering Party for reasons caused by the Contractor- in the amount of 20 % of the price due for the liability from which the Ordering Party withdraws. Moreover, the Contractor is obliged to pay a contractual penalty for every day of delay in delivery of any vehicle or diagnostic station, as well as for every day of delay in performance of trainings included in the Contract subject or removal of any faults/ defects.

The Ordering Party shall pay the Contractor the contractual penalty for withdrawal in whole from the contract by the Contractor for reasons caused by the Ordering Party – in the amount of 20 % of the Total Price and for withdrawal in part from the contract by the Contractor for reasons caused by the Ordering Party – in the amount of 20 % of the price due for the liability from which the Contractor withdraws.

According to the provisions of the contract, each Party may claim for compensation, which is higher than the amount of contractual penalty under general terms and conditions.

According to the Individual Reporting Standard of URSUS S.A., adopted by the Issuer with reference to the reporting obligations resulting from the Market Abuse Regulation, the above-mentioned contract is considered to be material due to the fact that its value exceeds 10% of the equity of the Issuer’s Capital Group.

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