Conclusion of a significant agreement

Date

2016-07-14

Current report no.

36/2016

The Management Board of TIM SA, with its seat in Wrocław, would like to inform that on 14.07.2016 TIM SA received a signed copy of: the cooperation agreement No. HM 410-1005/1131/UW/2016 (hereinafter referred to as the Cooperation agreement) and an Annual Contract No. HM 410-1005/131/KR/2016 for 2016 (hereinafter referred to as the Annual Contract) concluded between TIM SA, Kaczmarek Electric SA, with its seat in Wolsztyn, and TELEFONIKA KABLE SA, with its seat in Myślenice (hereinafter referred to as the Seller) dated 20.06.2016.
The subject of the Cooperation agreement is to set general principles of cooperation within the scope of sales of goods produced by TELEFONIKA SA i.e. wires and cables, by TELEFONIKA KABLE SA to TIM SA and Kaczmarek Electric SA.
The subject of the Annual Contract is to determine detailed trading conditions of the a/m products between TIM SA, Kaczmarek Electric SA, and TELEFONIKA KABLE SA that shall apply in 2016.
The agreements mentioned above are framework agreements, which means that each time, the basis for their performance will be orders for goods placed by TIM SA indicating i.a. the assortment, quantity of ordered goods, and the date of delivery.
The Cooperation agreement has been concluded for an indefinite period, subject to the fact that in the case in which the Parties do not conclude the Annual Contract for the next period, the Cooperation agreement expires within 12 months starting from the expiry date of the Annual Contract.
The Annual Contract has been concluded for the period until 31.12.2016.
The value of a/m agreements, within their duration, is calculated as an amount exceeding 10 % of equity of TIM SA. The terms and conditions of the a/m agreements do not differ from market standards of other agreements of that type. In order to secure cash receivables of the Seller arising from the Cooperation agreement, Annual Contracts concluded on the basis of that agreement, and any trade transactions performed on the basis of that agreement, TIM SA obligated to establish security measures in form of a blank promissory note declaration for the amount resembling the debt of TIM SA in favor of the Seller arising from unsettled invoices for goods delivered on the basis of the above mentioned agreement (including interest rate) on the day of completing the promissory note by the Seller, within the deadline up to 31.07.2016.
Agreements described above meet the criteria of a significant agreement compliant with the reporting standards adopted by the Management Board, since their estimated value exceeds 10 % of equity of TIM SA.

2016-07-14, Artur Piekarczyk – Member of the Board
2016-07-14, Anna Slobodzian-Pula – Member of the Board