The subject of the contract is: granting a long-term loan in the amount of PLN 9,180,000.00 (in words: nine million one hundred and eighty thousand zlotys 00/100) intended to cover the planned budget deficit of the Obrowo Commune in the amount of PLN 6,140,889.76 and repayment of previously incurred liabilities due to loans and issued securities in the amount of PLN 3,039,110.24.

1. The subject of the contract is: granting a long-term loan in the amount of PLN 9,180,000.00 (in words: nine million one hundred and eighty thousand zlotys 00/100) intended to cover the planned budget deficit of the Obrowo Commune in the amount of PLN 6,140,889.76 and repayment of previously incurred liabilities due to loans and issued securities in the amount of PLN 3,039,110.24.

2. The subject of the contract are services of granting a long-term loan in accordance with applicable law (Act of 29 August 1997, Banking Law (consolidated text: Journal of Laws of 2021, item 2439, as amended)

3. Loan period: 2023 – 2037.

4. The loan will be made available to the Ordering Party in one or several tranches, in the period from signing the contract until 30.11.2023.

5. The amount of the loan tranches and the deadline for placing the funds at the disposal of the Ordering Party will be determined by submitting by the Ordering Party a request for funds within 2 working days before the date of placing the funds at the Disposal of the Ordering Party.

6. The Contractor is excluded from charging any additional commissions and fees for the processing, launching and servicing of the loan, the only cost is its interest rate and commission on the loan granted.

7. The transfer of the loan to the disposal of the ordering party will take place in the form of a transfer of funds to the indicated bank account on the basis of a written instruction.

8. Repayment of principal installments of the loan will be made in quarterly installments on the following dates and amounts:

1) in 2025 in the amount of PLN 100,000.00 (4 installments)

2) in 2026 in the amount of PLN 70,000.00 (4 installments)

3) in 2027 in the amount of PLN –70,000.00 (4 installments)

4) in 2028 in the amount of PLN 70,000.00 (4 installments)

5) in 2029 in the amount of PLN 70,000.00 (4 installments)

6) in 2030 in the amount of PLN 100,000.00 (4 installments)

7) in 2031 in the amount of PLN 100,000.00 (4 installments)

8) in 2032 in the amount of PLN 200,000.00 (4 installments)

9) in 2033 in the amount of PLN 200,000.00 (4 installments)

10) in 2034 in the amount of PLN 200,000.00 (4 installments)

11) in 2035 in the amount of PLN 2,000,000.00 (4 installments)

12) in 2036 in the amount of PLN 3,000,000.00 (4 installments)

13) in 2037 in the amount of PLN 3,000,000.00 (4 installments)

A detailed schedule of repayment of capital installments has been included in Annex 2 calculation of loan costs

9. Interest will be paid on a quarterly basis in the years 2023-2037 on the last business day of the quarter.

10. The first interest payment shall be made on the last business day of the quarter in which the first tranche of the loan is disbursed.

11. Interest will be calculated on current debt on a quarterly basis and payable in arrears at the end of the quarter (or the last business day of the quarter).

12. In the event of early repayment of the loan, interest will be accrued until the date of actual repayment.

13. The Ordering Party reserves the right not to use the loan in full, which will lead to a reduction of capital installments in accordance with the loan used. Failure to use the loan in full will not result in additional fees charged by the bank.

14. The amount of credit used bears interest on an annual basis, at a variable interest rate. The interest rate is equal to the reference rate, increased by the bank's margin.

15. The reference rate is WIBOR 1M meaning the interest rate for 1-month interbank deposits, calculated as the average of the last month preceding the month for which interest is calculated.

16. The bank's margin is fixed during the contractual loan period.

17. The actual number of days in each quarter in relation to the actual number of days in a year shall be used to calculate the amount of interest.

A detailed description of the subject is included in the Terms of Contract.