Litgrid AB announced at the EGM held on June 13, 2022 that the company approved the material conditions of the transaction of the Contract No 21VP-SUT-40 for the design and work of reconstruction of the 330 kV single-circuit overhead line Jurbarkas-Bitenai into a double-circuit overhead line, that was signed on 23 March 2021, with the group of suppliers consisting of UAB Empower-Fidelitas, and EMPOWER AS by changing the Contract price: General conditions: the Conditions of Contract for Plant and Design-Build for Electrical & Mechanical Plant, and for Building and Engineering designed by the contractor, issued by the International Federation of Consulting Engineers, First Edition 1999. Object of the Contract – design and construction work of reconstruction of the 330 kV single-circuit overhead line Jurbarkas-Bitenai into a double-circuit overhead line. Deadline for the completion of the work – the work must be fully performed and properly completed by 1 April 2023.

Stages of the work: Stage 1 (by 7 January 2022) – to prepare a technical project and obtain a document permitting construction; Stage 2 – to prepare the project of the Object construction work, to perform and complete the Object construction Work, including all successfully completed tests, and to obtain and submit to the Customer a deed of the Object construction completion. Term of the Contract – until the Parties will fulfil the contractual obligations or until the termination of the Contract. The Contract price – the amount of EUR 2,466,315, exclusive of VAT, is allocated additionally for the performance of the Contract; the total Contract price is EUR 14,781,158.14, exclusive of VAT.

Contract pricing and payments. The rate with review pricing applies to the Contract. The price of each stage will be paid in instalments, the amount of which is agreed as percentage of the stage price.

The payments will be linked to the intermediate results achieved. Adjustments to the Contract price due to the changed prices of the costs: amounts payable to the Contractor for the Contract work can be recalculated only if the value of the monthly construction cost price index 'Engineering Structures' published by the Department of Statistics of the Republic of Lithuania changes by more than 10% during any 12-month period, or by more than 15% during any period after the issuance of the construction permitting document, if, during that period, annual indexation was not performed; Adjustments to the Contract price due to the changes in the Laws: the Contract price will be recalculated if, after the entry into the Contract, the Laws or their construction will change, and, as a result, the Contractor expenses will increase or decrease. The contractor will not be entitled to a profit of the increased expenses.

The Contract price will be recalculated taking into account increases or decreases in VAT due to the Laws related to VAT. Amendments to the legal acts, that govern taxes other than VAT, will not affect the Contract price; Payment procedure: Payments to the Contractor will be made only after the Engineer will confirm that all the conditions, to which the ordinary contribution is linked, have been met. Only then the Contractor will acquire the right to issue a VAT invoice under the Contract for the relevant amount.

The time limit for the payment is 30 days after the date on which the invoice of the Contractor has been submitted. All payments are made in euros. Pre-payment: The Contractor will have the right to receive a pre-payment – 5% of the Accepted Contract price of the Stage 2 works, provided that the Contractor will provide the Customer with a security of the Contract performance.

The pre-payment must be refunded by deducting 5% of each Payment Certificate and of the VAT invoice of the Contractor. Deductions must be made until the pre-payment will be refunded in full. The percentage of withholding and the amount of the money withheld - 10% of the payable amount shall be withheld of each VAT invoice of the Contractor until the amount of the money withheld, which is equal to 10% of the accepted Contract amount, will be reached.

Refund of the money withheld shall be performed after the issue of a deed of the Construction completion, after completion by the Contractor of all unfinished works, that are specified in the Certificate of Takeover of the Work, and after the Engineer has confirmed a proper completion of such work. Measures to secure the obligations: Contract performance security - the first demand, irrevocable and unconditional guarantee of the bank indicated in the Customer's list of the acceptable banks. The amount of the guarantee - 10% of the accepted Contract amount for the entire Project.

A guarantee of the Warranty period - the first demand, irrevocable and unconditional guarantee of the bank indicated in the Customer's list of the acceptable banks. The amount of the guarantee for the first year is 10% of the Contract price, for the second and third year - 5% of the contract price. Liability: Compensation for delay: For the Stage 1 delay - 0.04% of the accepted Contract price for Stage 1 for each day, to be paid in euros.

For the Stage 2 delay - 0.04% of the accepted Contract price for Stage 2 for each day, to be paid in euros. Penalties for delay in completing minor unfinished work and/or in rectifying defects - 1,000 EUR for each day of the infringement, calculated separately for each case of infringement. Penalties for delay in rectifying defects within the time of the notification about defects - 1,000 EUR for each day of the infringement, calculated separately for each case of infringement.

Penalty for non-compliance with the obligation concerning the amount of remuneration – 10,000 EUR for each month in which the obligation is not being met. Fine for the delay in providing a program – a fine of 100 EUR in the event of delay in providing an updated program. The overall liability for delay in providing the updated program cannot exceed 10,000 EUR.

Fine for failure to harmonize the technical project documentation with the Customer through the fault of the Contractor in 3 times – EUR 400 for each repeated harmonization of the documents, that exceeds the 3-time limit of the harmonization. Fine after it is found that the workers of the Contractor's personnel or of third parties, for whom the Contractor is responsible, who are in the object, are under the influence of alcohol, narcotic, toxic and/or psychotropic substances – EUR 1,500 for each case; The following limits will apply to the liability of the Parties for direct losses under the Contract: The overall liability of the Contractor will not exceed 100% of the Accepted Contract amount for the entire Project; The Contractor's liability for delay will not exceed 10% of the accepted Contract amount for the entire Project; The overall liability of the Contractor will not exceed 100% of the accepted Contract price for the entire Project.