Current Report No. 11/2017 — 18.08.2017 12:59

The Management Board of Atende S.A. (′Issuer′), with reference to the current reports No 9/2017 dated July 31th and No 10/2017 dated August 17th, 2017, reports that on August 18th, 2017, Research and Academic Computer Network (Leader of a consortium whose members are also Atende S.A., NASK S.A. and Integrated Solutions sp. z o.o.) signed an agreement with the Main Headquarters of the Border Guard (the ′Employer′) for the ′Extension of the Border Guard’s telecommunication system — Part 1 of the contract′.

Gross price of the agreement signed amounts to PLN 44.5 million, of which the price of the basic contract amounts to PLN 31.4 million, and the price of the optional contract amounts to PLN 13.1 million. The total remuneration payable for the Issuer amounts to PLN 17.3 million gross, of which PLN 14.1 million gross — for the performance of the basic contract and PLN 3.2 million — for the performance of the optional contract. The scope of the Issuer's work under the agreement signed includes delivery of network infrastructure along with software, licenses and manufacturer's warranty, servicing of the supplied infrastructure for a period of 60 months and conducting trainings on the operation of the solution delivered.

Implementation of the subject matter of the agreement covered by the contract will be carried out in two stages — the first stage to be completed by December 11th, 2017 and the second stage to be completed by September 28th, 2018. Implementation of the optional contract will take place upon submission of a declaration by the Employer, by January 31st, 2018, on exercising the option right. The optional contract is scheduled to be completed by September 28th, 2018.

The Agreement defines liquidated damages for failure to meet the performance date of the subject matter of the agreement in the amount of 0.01% of the gross remuneration of the basic contract for each commenced day of delay. In the event of failure to meet the deadline for the execution of the optional contract, the Employer shall have the right to resign from this contract. In the event of failure to meet the deadline for replacement of defective equipment, the Contractor shall pay liquidated damages of PLN 1 thousand for each commenced 24 hours of delay. In the event of withdrawal from the Agreement in part or in whole for reasons attributable to the Contractor, the Contractor shall pay the Employer liquidated damages in the amount of 10% of the gross value of the outstanding basic subject matter of the agreement. The parties agreed that the total amount of liquidated damages may not exceed 20% of the gross remuneration of the basic contract.