The Management Board of LC Corp S.A. ("Issuer") reports that today (i.e. 1 September 2011), its subsidiary undertaking Warszawa Przyokopowa Sp. z o.o. of Wrocław ("Investor"), in which the Issuer has 81.66 % shares, in connection with acquisition of the final building permit, signed a general contractor agreement with Budimex S.A. of Warsaw ("Prime Contractor"), an entity unrelated to the Issuer, for a development project to construct an office complex with retail and service facilities, located in Warsaw at ul. Grzybowska 85A ("Agreement"), on the following terms:
- The investor: Warszawa Przyokopowa Sp. z o.o.
- The General Contractor: Budimex S.A. of Warsaw
- Scope of the agreement: general contracting for a development project consisting of the construction of an office complex with retail and service facilities, located in Warsaw at ul. Grzybowska 85A.
- The works will commence after the official handing-over of the construction site and the documentation enabling the General Contractor to start the works.
- The works will be completed, and the occupancy permit will be obtained, on the day following the period of 24 months from the handing-over of the construction site by the Investor.
- Remuneration: PLN 170,000,000.00 net (say: one hundred and seventy million zlotys 00/100) plus the applicable VAT.
- Securities: The General Contractor shall guarantee to the Investor proper and timely execution of the Contract in the form of an unconditional and irrevocable performance bond transferable without the need to obtain additional consent of the underwriter and payable on first demand in the amount equal to 10% of gross remuneration, and shall provide warranty bond issued by a bank as a guarantee that the General Contractor will solve all warranty issues during the warranty time.
- Total amount of contractual penalties stipulated in the contract shall not exceed 10% (ten percent) of the value of the contract price, notwithstanding the right to claim compensation in excess of the contractual penalties.
- Other provisions of the contract are similar to standard practices in contracts of such kind.
The agreement is considered to be significant agreement on the basis of the Issuer's equity.
Legal basis: §5.1.3 of the Regulation of the Directive of the Minister of Finance dated 10 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent the information required by the laws of a non-member state (Journal of Law – Dz.U. of 2009, No. 33, Item 259, as amended).