Ciech S.A.

Related Party Transaction • Apr 1, 2019

Text of the report:

The Management Board of CIECH S.A. with itsregistered office in Warsaw (the "Issuer" or "Company"), in reference tocurrent reports nos. 37/2016 dated 18.11.2016, 30/2018 dated 27.11.2018,and 37/2018 dated 28.12.2018, herewith informs that on 01.04.2019, asubsidiary of the Issuer - CIECH Soda Romania S.A. based in Romania("CSR"), entered into an annex (the "Annex") to an agreement for thesupply of process steam (the "Agreement") with S.C. CET Govora S.A. incomposition bankruptcy based in Romania ("CET").

Pursuant to the Annex, the Parties agreed on theprice of the processes steam for a period of 21 months, i.e. from01.04.2019 to 31.12.2020.

The estimated value of the Agreement, in the periodfrom 01.04.2019 to 31.12.2020, consisting of the price of the processsteam and the cost of CO2certificates, is approximately RON366 000 000, which is equivalent to PLN 330 644 400, according to theexchange rate determined by the National Bank of Poland (NBP) on thedate of the Annex. Moreover, the Parties extended the deadline for thenegotiations of the price formula for the supply of process steam in2021-2026 until 31.12.2020. The parties agreed that in the event offailure to agree on the price formula on or before 31.12.2020, theAgreement would terminate by virtue of law on 31.12.2020.

Theparties also modified the notice period, by agreeing that in the periodfrom 01.04.2019 to 31.12.2020, they would have the right to terminatethe Agreement with a 3-month notice period, whereas starting from01.01.2021,the period of notice would be 9 months, i.e.as stipulated in the Agreement.