Current report no 45/2015 of 2 September 2015 – Supplementary order to substantial agreement

Management Board of Qumak S.A. (hereafter referred to as the Company) informs that on 1 September 2015 there was made an Agreement with the State Treasury – National Water Management Authority and the Institute of Meteorology and Water Management (IMGW) – National Research Institute (hereafter jointly referred to as the Ordering Party).

 

Subject of the Agreement is integration of ISOK (IT guarding system from extraordinary threats for the country) with a system of the Ordering Party in the scope specified in the Agreement within the realization of an order for designing, building and implementing the ISOK system, as well as adding new functionalities a.o. enabling sending notices on the basis of hydrological warnings and publishing maps for the needs of hydrological and meteorological warnings in the ISOK.

For performing the subject of the Agreement there was set a remuneration amounting to PLN 872,685.00 gross (PLN 709,500.00 net), and there was set a deadline for the performing on 30 September 2015.

 

This Agreement is a supplementary order to the Agreement of 29 August 2013, subject of which is designing, constructing and implementing the ISOK. Value of the Agreement was PLN 50,640,475.61 net, and the Company informed about entering into this agreement in the current report no 46/2013 of 29 August 2013. The Company previously had already made with the Ordering Party another additional agreement for the amount of PLN 1,413,748.55 gross on 27 July 2015, the information was published in a current report no 42/2015 of 28 July 2015.

 

With regard to penalties, the Agreement provides payment of contractual penalties among others:

– In case of not meeting a deadline for acceptance of among others hardware platform, software, trainings etc., included in the schedule, the Company pays a contractual penalty amounting to 0.01% of net remuneration for every day of delay;

– From 0.001% of total remuneration for every day of delay in case of removing a defect and 0.002% in case of a serious defect;

– From 0.005% of total remuneration for every hour of delay in case of removing a critical defect;

– In case of breaching a confidentiality clause, the Company will be burdened with a contractual penalty of PLN 100,000.00 after submitting explanations to such a situation.

 

The Ordering Party has the right to rescind the Agreement if the delay of the Contractor in proper performance of any of contractual obligations exceeds 10 days. In such case there will be calculated a penalty amounting to 20% of contractual remuneration.

Sum of contractual penalties in total cannot exceed a full value of remuneration. If the amount of contractual penalties does not cover the actual damage suffered, the Ordering Party has the right to claim compensation on general terms.

Other provisions of the Agreement do not differ from market standards applied in contracts of such sort.

The Agreement is a supplementary agreement to the substantial agreement value of which exceeds 10% of income from sales of Qumak S.A. in the period of the last four quarters.

 

Legal ground:

RMF of 19 February 2009 on current and periodic information, § 5(1)(3)