G Energy Spolka Akcyjna

M&A Activity • Jun 25, 2021

Conclusionof Framework Agreements by the Issuer with Polska Spółka Gazownictwasp.z o.o. with its seat in Tarnów, Zakład Gazowniczy Branch in Zabrze(PSG, gas works area in Katowice, Gliwice and Tychy).ManagementBoard of G-Energy S.A. (GENERGY, the Company, the Issuer) with itsregistered office in Warsaw informs that yesterday the Company receivedinformation about signing the following Agreements as part of theongoing proceedings: "FRAMEWORK AGREEMENT - Design and construction ofgas connections with consumption up to 10 m³ / h from the existing gaspipelines in Poland Spółka Gazownictwa Sp. z o. o. Branch Gas Plant inZabrze. Area No. 28: the area of ​​operation of the Gasworks inKatowice; FRAMEWORK AGREEMENT - Design and construction of gasconnections with consumption up to 10 m³ / h to the existing gaspipelines at Polska Spółka Gazownictwa Sp. z o. o. Branch Gas Plant inZabrze. Area No. 11 - the area of ​​operation of the Gas Plant inGliwice, including the town of Knurów, the Pilchowice commune, theSośnicowice commune, the Ornontowice commune, the Gierałtowice commune,and the Czerwionka-Leszczyny commune. The Issuer informed about theexpected signing of the Agreements in the Current Report No. 17/2021 ofJune 10, 2021, and the FRAMEWORK AGREEMENT - Design and construction ofgas connections with consumption up to 10 m³ / h from the existing gaspipelines at Polska Spółka Gazownictwa Sp. z o. o. Branch Gas Plant inZabrze. Area No. 22: the area of ​​operation of the Gasworks in Tychy,including the city of Mikołów, the city of Łaziska Górne, the commune ofWyry.TheAgreements concluded with PSG and the Issuer concern the followingareas: Area No. 11 - the area of ​​operation of the Gas Plant inGliwice, including the town of Knurów, the Pilchowice commune, theSośnicowice commune, the Ornontowice commune, the Gierałtowice commune,the Czerwionka-Leszczyny commune; Area No. 22: the area of ​​operationof the Gasworks in Tychy, including the city of Mikołów, the city ofŁaziska Górne, the commune of Wyry; Area No. 28: the area of ​​operationof the Gasworks in Katowice.TheIssuer is obliged to successively implement individual tasks (Tasks)consisting in the comprehensive implementation of line facilities in theform of medium and low pressure gas connections with gas consumption upto 10 m3 / h in the range of diameters from dn 25 PE to dn 63 PE fromthe existing gas pipelines (Connections), in the area of ​​operation ofthe Gas Plant in Tychy, area No. 22, in the area of ​​operation of theGas Plant in Gliwice, area No. 11 and in the area of ​​operation of theGas Plant in Katowice, area No. 28 on the basis of unit orders (Orders),submitted as the Employer's needs arise, including the preparation ofdesign documentation for Connections ( Designs) and the construction andcommissioning of the Connection (Works) or only the Works, whichtogether constitute the Subject of the Agreement.Thesubject of the contract has been divided into Areas (parts of theOrder). The subject of the contract is, in particular, comprehensiveimplementation of the gas connection, i.e. the performance of tasksspecified jointly: 1) preparation of simplified documentation orconstruction design for gas connection (section from the existing gaspipeline), 2) execution of construction and assembly works related tothe execution of the gas connection.Frameworkagreements concluded between the parties will be valid for a period of24 months from the date of signing it or until the remuneration due tothe Issuer is exhausted. Tasks commissioned by the Employer to theContractor during the term of the Agreement will be performed under theterms of the Agreement, also after the expiry of the deadline.GENERGYwill be entitled to remuneration in the amount of: Area No. 28: Gasworksarea in Katowice - 2,500,000.00 (in words: two million five hundredthousand zlotys) net; Area no. 11 - the area of ​​operation of theGasworks in Gliwice - PLN 777,777.78 (say: seven hundred andseventy-seven thousand seven hundred and seventy-seven zlotys 78/100)net. Area no. 22: area of ​​operation of the Gas Plant in Tychy - PLN600,000.00 (say: six hundred thousand zlotys) net. This amount will beincreased by the due tax on goods and services (VAT) at the rateapplicable on the date of the Task or its part. Remuneration for thegiven Task will be payable once in the amount of 100% of theremuneration after the Ordering Party has made the final acceptance. Onthe day of signing the final acceptance protocol without reservations,the Ordering Party shall be subject to the risk of loss or damage to theobject. If it is necessary to perform Additional Works or additionalservices at the stage of carrying out the Orders, the Issuer willprepare a valuation of the Works, and the Parties, through negotiations,will determine the conditions for the performance of the Works oradditional services, in particular the amount of remuneration for theirperformance - on the basis of the quotation (cost estimate) presentedfor approval.EachParty has the right to terminate the Agreement with a 2-month noticeperiod, effective at the end of the calendar month.Theremaining detailed terms and conditions of the above-mentionedagreements do not differ from those commonly used in this type ofagreement.Legalbasis:Art.17 sec. 1 of the Regulation (EU) No 596/2014 of the European Parliamentand of the Council of 16 April 2014 on market abuse (market abuseregulation) and repealing Directive 2003/6 / EC of the EuropeanParliament and of the Council and Commission Directive 2003 / 124 / EC,2003/125 / EC and 2004/72 / EC (also known as MAR).