C.N.T.E.E. Transelectrica

Related Party Transaction • Jun 8, 2017

To the: Bucharest Stock Exchange – Department of Operations Issuers Regulated Markets

Financial Supervision Authority - General Directorate Supervision - Issuers Division

Current report according to the provisions of article 82 from Law 24/2017 Date of the report: 7 June 2017 Name of Issuer Company: CNTEE TRANSELECTRICA SA, Company Managed in Two-tier System Headquarters: Bucharest 1, Blvd. Magheru no. 33 Working location: Bucharest 3, Str. Olteni no. 2-4 Phone / fax numbers: 4021 3035 611 / 4021 3035 610 Single registration code: 13328043 Number in the Commercial Register: J40/8060/2000 Share capital subscribed and paid: 733,031,420 Lei Regulated market where the issued securities are transacted: Bucharest Stock Exchangei

Event to report

The National Power Grid Company Transelectrica SA informs the shareholders and investors about its signing a contract with subsidiary SMART SA amounting to more than 50,000 Euro.

Contract:	No. 19 / 06.06.2017;
Parties:	CNTEE Transelectrica SA, Transmission Branch Sibiu, as purchaser;
	SC SMART SA as provider;
Contractual object:	Execution of work and update the design documentation for the Centre of research and development for live work technologies (LST) and fast intervention in SEN, stage I;
Total value:	4,991,815.22 Lei, VAT free;
Guarantees:	Contractual performance bond amounting to 499,181.52 Lei, representing 10% of the VAT free contractual amount, constituted by successive withholding from the amounts owed by the purchaser for partial invoices;
Penalties:	In case the Provider fails to comply with its obligations assumed under contract the Purchaser will calculate and the Provider will pay penalty interest, corresponding as percentage to the interest owed for late payments of liabilities to the state budget, valid on the calculating date of the penalty interest, applied to the contractual price for each day of delay beginning with the outstanding day of the liability until actual payment (inclusive). The total amount of penalties cannot exceed the contractual price.
	In case the Purchaser fails to pay the invoices sent by the Provider upon contractual terms the Purchaser owes to the Provider, besides the owed amount a penalty interest to such amount, corresponding as percentage to the interest owed for late payments of liabilities to the state budget, valid on the calculating date of the penalty interest, applied to the contractual price for each day of delay beginning with the outstanding day of the liability until actual payment (inclusive). The total value of penalties will not exceed the owed amount.
Mutual liabilities:	None;
Terms of payment:	30 days from the registration date of fiscal invoice at the Purchaser's with observance of contractual clauses;

Georgeta - Corina POPESCU

Executive Director General Directorate Chairwoman

LANGUAGE DISCLAIMER: This document represents the English version of the original official Romanian document filed with the Financial Supervisory Authority ASF. The English version has been created for English readers' convenience. Reasonable efforts have been made to provide an accurate translation, however, discrepancies may occur. The Romanian version of this document is the original official document. Any discrepancies or differences created in the translation are not binding. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian version of the document which is the official version.