Current report no 62/2014 of 5 December 2014 – Entering into substantial agreement with Institute of Meteorology and Water Management

Management Board of Qumak S.A. (hereafter referred to as the Company) informs that today there was made a substantial Agreement between the Company and the Institute of Meteorology and Water Management – National Research Institute (hereafter referred to as the Ordering Party).

 

Subject of the Agreement is designing, delivering, installing and operational start-up of automatic systems for meteorological parameters measurements AWOS for the needs of meteorological services for civil aviation at airports in Katowice, Kraków, Wrocław, Rzeszów, Łódź, Szczecin and Gdańsk, as well as automatic systems for state of a runway surface Ice-alert for airports in Katowice, Kraków, Rzeszów, Łódź and Szczecin. The Company is obliged to perform the subject of the Agreement in accordance with the set schedule for particular airports, until 28 February 2016.

 

For performing the subject of the Agreement there was set a total remuneration amounting to PLN 24,406,843.20 gross.

 

With regard to contractual penalties the Agreement provides their payment among others in the following cases:

– Not performing or improper performing of the Agreement for reasons attributable to the Company – amounting to 10% of the total net contractual remuneration;

– For delay in performing the subject of the Agreement or its particular parts – amounting to 0.5% of net contractual remuneration for this part of the subject of the Agreement, which the delay concerns, for every day of delay;

– For delay in removing defects found during the acceptance of works or during the warranty period – amounting to 0.5% of net contractual remuneration, for this part of the subject of the Agreement, which the delay in removing defects concerns, for every day of delay counted from the day set for removing the defects.

 

Total amount of contractual penalties cannot exceed 20% of the total net contractual remuneration.

 

Apart from payment of contractual penalty, Parties to the Agreement can claim compensation for damage on general terms under the Polish Civil Code up to the full amount covering an actual damage excluding lost benefits.

 

Agreement meets criteria of a substantial agreement for a fact its value exceeds an equivalent of 10% of the Qumak S.A. equity.

 

Legal ground:

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