RB-9-2018 Conclusion of an Agreement with Tauron Dystrybucja S.A.

RB-9-2018 Conclusion of an Agreement with Tauron Dystrybucja S.A.

In reference to Current Report No. 19/2017 of the 24th of October, 2017 regarding receipt by Comarch S.A. - as the leader of the consortium comprising: Comarch S.A., Apator Rector sp. o.o., Tukaj Mapping Central Europe sp. o.o. and Eurosystem S.A. (hereinafter referred to as the: "Consortium") debit note issued by Tauron Dystrybucja S.A. (hereinafter referred to as the: "Tauron") calling the members of the Consortium to jointly pay PLN 30,246,071.61, the Management Board of Comarch S.A. informs that on the 5th of June, 2018, as a result of mediation proceedings between the Consortium and Tauron, a settlement was reached.

In accordance with the concluded settlement, Tauron verified the demand for payment of contractual penalties for delay in execution of Phase 2, Stage 3 and Passporting up to PLN 11,140,250.00, waving further investigation of accrued contractual penalties from the above-mentioned agreements. In addition, as a result of Tauron's identification of the need to perform additional works and services, the Consortium will undertake the additional tasks for Tauron for PLN 23,950,250.

Pursuant to the provisions of the settlement, the penalties from the settlement will be settled by contractual deduction with the receivables of the Consortium for the payment of remuneration for the implementation of the above-mentioned additional work and services.

At the same time, on the 5th of June, 2018, Comarch S.A. concluded with Apator Rector sp. o.o. agreement in which Apator Rector sp. o.o. will release Comarch S.A. towards Tauron from commitment to pay the penalties, as well as surrendering to Comarch S.A. all claims. Apator Rector sp. o.o. has also committed itself in the concluded agreement to perform additional works and services resulting from the settlement concluded with Tauron.

The Management Board of Comarch S.A. informs that the parties have taken action to approve the above-mentioned settlement by the competent court.