G Energy Spolka Akcyjna

Related Party Transaction • Apr 13, 2023

Conclusionof Subcontracting Agreement.ManagementBoard of G-Energy S.A. (GENERGY, Issuer, Subcontractor) with itsregistered office in Warsaw informs that today it received anotification of acceptance of the Subcontractor Agreement for theimplementation of construction and assembly works (hereinafter: Works)concluded by the Issuer with the company KOTŁO-REM Sędziszów sp. z o.o.with its registered office in Sędziszów (KOTŁO-REM, Contractor), whichrelate to the performance of Works related to the replacement of gasconnections in the areas of the Branch of the Gas Plant in WrocławThesubject of the Agreement is: 1) replacement of gas connections alongwith the removal of the main tap outside the building in a simplifiedmode (in accordance with Article 29a of the Construction Law Act) orupon notification where. The Subcontractor is obliged to perform theconnection along with the design and acceptance documentation, 2)perform works accompanying the construction, necessary for comprehensivequality and full implementation of the subject of the order in the areaof operation of the 3rd Gasworks, Branch Gasworks in Wrocław: part 1 -Gasworks Wrocław West; part 2 - Gasworks Wrocław North; part 3 -Gasworks Wrocław South.Thetasks will be performed on the basis of separate Orders given to theSubcontractor by the Contractor or directly by PSG. on the basis ofindividual orders (hereinafter: the Order), submitted as needed by theEmployer (PSG).TheSubcontractor is obliged to perform the Subject of the Agreement in theperiod from the date of signing the agreement to December 31, 2024, withthe proviso that either party may terminate the agreement with a 6-monthnotice period, effective at the end of the calendar month.Forthe performance of the Subject of the Agreement, the Issuer will receivea total remuneration not exceeding PLN 3,700,000.00 (in words: threemillion seven hundred thousand zlotys), with the parties agreeing toincrease the amount of remuneration in the form of an annex to theAgreement. The remuneration is expressed in the net amount and will beincreased by VAT at the rate applicable on the date of issuing the VATinvoice. The contractor will be entitled to remuneration depending onthe actual scope of the work performed, calculated on the basis of theunit rates contained in the contract, based on the material scopeperformed, included in the final acceptance report.Themaximum total value of orders under this agreement and frameworkagreements for part 1 may not exceed the following amount: PLN1,207,692.20 (say: one million two hundred seven thousand six hundredand ninety two zlotys 20/100).Theamount for the performance of the Subject of the Agreement in part 2 maynot exceed the amount of PLN 1,034,615.43 (in words: one millionthirty-four thousand six hundred and fifteen zlotys 43/100).Themaximum total value of orders under this agreement for part 3 may notexceed the amount of: PLN 1,457,692.37 (in words: one million fourhundred fifty seven thousand six hundred ninety two zlotys 37/100)Thisamount will be increased by the due tax on goods and services (VAT) atthe rate applicable on the date of performance of the Subject of theAgreement. The remuneration covers all works and all costs related tothe performance of the Agreement. The contractor will be entitled toremuneration depending on the actual scope of work performed, calculatedon the basis of the material scope performed, included in the technical/ final acceptance report, as-built inventory and detailed costcalculation.Ifthe Employer confirms the need to perform additional works, theSubcontractor will prepare a valuation of works in accordance with therules set out in the Regulation of the Minister of Infrastructure of May18, 2004 on determining the methods and grounds for preparing aninvestor's cost estimate, calculating the planned costs of design worksand the planned costs of construction works, specified in functional andutility program. The parties, through negotiations, will determine theconditions for the performance of additional works, in particular theamount of remuneration for their performance - on the basis of thevaluation (estimate) submitted for approval.TheOrdering Party is entitled to demand the payment of contractualpenalties, in particular for each day of delay in the execution of thesimplified documentation agreement with the Ordering Party in relationto the date indicated in the Order - in the amount of 0.5% of the netRemuneration specified in the Order, but not more than 20% of thisRemuneration; for each day of delay in delivering the subject of theOrder in relation to the date indicated in the Order - in the amount of0.5% of the net Remuneration specified in the Order, however not morethan 50% of this Remuneration; for each day of delay in removing defectsin the subject of the Order, counting from the expiry of the deadlineset by the Ordering Party for removing defects - in the amount of 0.5%of the net Remuneration specified in the Order, however, not more than50% of this Remuneration; for failure to notify gas consumers about thecommencement of the Works within 7 days before entering the constructionsite - in the amount of PLN 500 for each disclosed case; for withdrawalfrom the execution of the accepted Order or failure to execute the Orderin its entirety - in the amount of 50% of the net Remuneration specifiedin the Order,Thetotal value of contractual penalties in relation to the Agreement maynot exceed 20% of the total remuneration resulting from all ordersreceived by the Contractor.Theremaining detailed terms and conditions of the above-mentionedagreements do not differ from those commonly used in this type ofagreement.