ZUE : Current report 18/2018

28 May 2018

Legal basis: Art. 17.1 of the MAR-Confidential Information.

Subject: Conclusion of Master Sales Agreement for the Supply of Building Materials.

Content:

The Management Board of ZUE S.A. with registered office inCracow (the "Company," the "Issuer") inform about a master agreement (the "Agreement") entered into on 28 May 2018between the Company and the manufacturer of precast concrete products(the "Seller").The Agreement deals with the sale of building materials to the Company and its estimated total net value is approx. PLN 74m. The Agreement sets out the rules governing the sale of building materials to the Company. The Agreement will be performed on the basis of individual orders made by the Company. The Agreement will be completed in 2019. According to the Agreement, in case of untimely supply or untimely repair/replacement of faulty products through the fault of the Seller, the Issuer may demand that the Seller pay a defined contractual penalty for each day of delay. The contractual penalty, however, must not exceed 10% of the delayed supply net value. Regardless of the contractual penalty, the parties reserve the right to claim additional damages up to the value of actual damage.

The remaining terms of the Agreement, including but not limited to the termination terms, do not differ from the standard terms of such type of agreements.

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