The subject of the contract is a long-term loan in PLN, intended to finance the planned budget deficit and repayment of previously taken loans and advances and redemption of other securities. The loan amount is PLN 50,000,000 (in words: fifty million PLN); loan period: IV quarter 2023 – IV quarter 2037

a) long-term loan in PLN;

b) loan amount PLN 50 000 000 (in words: fifty million PLN);

(c) a loan intended to finance the planned budget deficit and the repayment of loans and borrowings previously taken out and the redemption of other securities;

d) loan period: IV quarter 2023 – IV quarter 2037;

e) the date of signing the contract will be the date of placing the loan at the disposal of the Ordering Party. The loan will be released in tranches according to the needs of the Ordering Party and at its request, using until 31.12.2023;

f) The Ordering Party reserves the right not to use the entire loan placed at its disposal until 31.12.2023, without giving reasons, and the contractor will not charge any fees or commissions in this respect. In the event of such a situation, an annex will be included in the contract;

g) the loan will not be charged with fees other than those listed in the SWZ;

h) repayment of capital will take place on a quarterly basis on the last business day of the calendar quarter starting from the first quarter of 2024 to the fourth quarter of 2037, in 56 installments according to the schedule:

- in the years 2024 – 2026, 4 installments per year, of which the first installment in the amount of PLN 2,400,000.00 and 3 installments – each in the amount of PLN 400,000.00,

- in 2027, 4 installments, each in the amount of PLN 900,000.00,

- in the years 2028 – 2031, 4 installments per year, each in the amount of PLN 875,000.00,

- in the years 2032 – 2037, 4 installments per year, each in the amount of PLN 900,000.00;

i) The Ordering Party reserves the right, in a particularly justified case and after obtaining the Bank's consent, to change the repayment schedule of capital installments, without additional costs. The amount and date of repayment of the loan installment will be made by concluding an annex to the contract, at the written request of the Ordering Party submitted together with the appropriate justification 15 days before the date of payment of the capital installment. The capital installment, the repayment date of which will be postponed, is part of the outstanding part of the capital and bears interest on the terms set out in the loan agreement. The changes introduced by the annex will not extend the loan period according to the contract;

j) The Ordering Party reserves the right to repay the loan early, at no additional cost, with the possibility of indicating the credit periods for which early repayment will be made. In the event of early repayment of part or all of the principal – interest will be payable on the actual debt;

k) the amount of the loan used will bear interest on an annual basis at a variable interest rate equal to the WIBOR 3M rate, applicable 2 business days before each beginning of the accounting period (calendar quarter) increased by the contractor's margin fixed during the loan period (up to two decimal places);

l) the change in the interest rate on the loan will take place in accordance with the change in the WIBOR 3M rate, determined in the manner specified in point k), from the 1st day of each subsequent calendar quarter, and the contractor's margin will not change throughout the loan period;

(m) interest on the credit used shall be calculated by the contractor on a daily basis and payable quarterly by the last business day of each subsequent calendar quarter for the quarter for which it was calculated;

n) legal collateral for loan repayment will be granted in the form of a blank promissory note and by submitting a promissory note declaration as to the rules for completing the promissory note, up to the amount of the loan granted, increased by interest due, contractual penalties and costs in the event of an obligation to pay them due to non-performance or improper performance by the Municipality of Krosno of the loan agreement, but not more than up to PLN 75,000,000 (in words: seventy-five million zlotys).