C.N.T.E.E. Transelectrica

Related Party Transaction • Apr 2, 2018

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: 2 April 2018 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 LEI Code: 254900OLXCOUQC90M036 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 Exchange

Event to report

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

Contract: No. 687 / 26.03.2018;

Parties: CNTEE Transelectrica SA, Transmission Branch Constanta as purchaser; SC SMART SA, Constanta Branch as contractor;

Contractual object: "Execution of work to modernise the tele-protection and telecommunication system in Cernavoda substation";

Contractual value: 3,958,318.41 Lei, VAT free;

Guarantees: The performance bond of the contract in sum of 395,831.84 Lei, namely 10% of the sectorial contractual price will be constituted within 5 week-days from the signature of the sectorial contract, in form of two security instruments as follows: a) A security instrument for 70% of the performance bond amount, that is 277,082.29 Lei with validity term exceeding 30 days the work completion date; b) A security instrument for 30% of the performance bond amount, that is 118,749.55 Lei with validity term exceeding 30 days the guarantee period;

Penalties: For the culpable failure to achieve the activities under the sectorial contract on the terms agreed in the execution schedule the contractor will pay damage to the purchaser in quantum equal to the interest rate owed for the failure to pay the liabilities to the state budget in due time, applied to the sectorial contract amount for each day of delay, beginning with the following one of the liability maturity date. The damage will be paid using

the purchaser-issued invoice, which the contractor will pay within maximum 30 days from its receipt date;

For the failure to pay the invoices on the terms agreed under the sectorial contract the purchaser owes to the contractor penalty interest to such sum, corresponding as percentage to the interest owed for the failure to pay the liabilities to the state budget for each day of delay, beginning with the following one of the liability maturity date until its payment (inclusive). The penalty interest will be paid within maximum 30 days from its receipt date;

Mutual liabilities: None;

Terms of payment: The purchaser is obliged to pay the contractor within 30 days from the invoice registration date with the purchaser.

Georgeta - Corina POPESCU Florin – Cristian TATARU

Executive Director General Directorate Chairperson

Directorate Member