RB-14-2014 Accounting note from Agency for Restructuring and Modernisation of Agriculture

Pursuant to Art. 56, sec. 1 of the Act concerning public tenders, the terms for introducing and trading financial instruments on the stock exchange, as well as public companies, the Management Board of Comarch S.A. announces about receiving on 16th of May, 2014 the accounting note issued by Agency for Restructuring and Modernisation of Agriculture (ARMA), which amounts to PLN 32,455,497.28 (in writing: thirty-two million four hundred fifty-five thousand four hundred ninety-seven zlotys and 28/100). The subjective accounting note in accordance with its contents, was issued by ARMA by way of contractual penalties for delay-default SLA level in one month (August 2013) the provision of services under the contract of 29 April 2013 (concluded as a result of the conducted public tender for the maintenance, modification and improvement of application systems OFSA, OFSA - RDP, OFSA - RDP - DD, RG - RDP).

The amount of contractual penalty charged for one month is completely incommensurable with the monthly remuneration payable to Comarch S.A. due to the performance of the services under the contract, exceeding the remuneration more than 100 times. Under the provisions of the contract, the amount of the penalty exhausted  the contractual limitation of liability of Comarch S.A. in terms of claims for contractual penalties and damages caused to ARMA. The amount of the charged penalty does not correspond in any way to the degree of damages sustained by ARMA, what ARMA confirms, among others, in message to the PAP, which stated that throughout the period of performing the services by Comarch S.A., except for two - three cases of delays of the reporting weeks, no errors significant for the functioning of ARMA occurred. The method of calculating the penalty used by the ARMA is not clear to Comarch S.A. and it has not been agreed during the meetings of the parties.

In the opinion of Comarch S.A. calculation of these penalties has neither justification nor grounds in the provisions of the contract. Comarch S.A. announces that has taken the necessary legal steps to establish that there is no obligation to pay the penalties resulting from the accounting note issued by ARMA. Comarch S.A. announces also that, despite the dispute concerning the charged contractual penalties, Comarch S.A. still providing services under the contract with ARMA in accordance with the requirements of the SLA. In opinion of the Management Board of Comarch S.A.  the reserves already created for potential claims resulting from contractual penalties in connection with the performance of the contract, in the amount of total gross salary for the providing services in the period July - December 2013 year (i.e. in the amount of PLN 2,277 thousand) fully cover the risk of financial burden of Comarch S.A. with the above-mentioned title.