|Resolution of execution of contract and guarantee
1. Principal debtor : Rotem Company
Relationshiop with company : Affiliated Company
Guarantee of execution of obligations and payments for liabilities ofr the supply of 340 electric railroad cars (approximatly USD 300~400 million) relating to the supply bidding and contract with the Port Authority Trans-Hudson Corporation (PATH) of New York & New Jersy.
- Thus, guarantee is a biding precondition for the PATH electric railroad cars.
3. Guarantee Period
: January 2005 ~ January 2013
* Contract Performance(6 years) & Repair Works(2 years)
- Total 8 years
** Expected first bidding date : September 21, 2004
4. The BOD resolution date : August 27, 2004
5. The final principal debtor could be UTS(United Transit Systems), the U.S. subsidiary of Rotem
6. The above guarantee is only valid at the time of a sucessful bid, and the contents and period of guarantee are subject to change depending on the bidding schedule, related laws, and etc.