Conclusion of a material agreement
Current report 11/2010 dated 13.05.2010
Legal basis: Article 56 (1) (2) of the Act on Public Offering – current and periodic information
The Management Board of ATM S.A. hereby informs that on May 13th 2010, under the contract ‘Construction and Implementation of ICT Network supporting the 112 Emergency Number’, the Company entered into two agreements with Polish nationwide telecommunications operators.
The purpose of these agreements is to establish OST112 network and to support data transmission services by means of this network. The maximum value of the agreement with Telekomunikacja Polska S.A. amounts to PLN 104,915,517.26 net, and the maximum value of the agreement with Exatel S.A. is PLN 71,780,092 net. Both agreements will be implemented until December 31st, 2013.
The duration of data transmission services provided by Telekomunikacja Polska S.A. and Exatel S.A. (hereinafter referred to as Operators) will be optionally extended until 2016.
Contractual penalties correspond to typical penalties applied in this type of agreements, and will be mainly charged for any delays of works by fault of the Operators, as well as for exceeding the maximum failure repair time and system unavailability time beyond the limits established by the SLA.
A PLN 10 million contractual penalty will be charged if the Operators refuse to extend the data transmission services until December 31st, 2016 at the latest. Notwithstanding the contractual penalties charged, ATM S.A. will be authorized to make claims for damages in excess of the penalties on general terms and conditions and comparable to the provisions of the agreement between the Company and the Centre for IT Projects at the Ministry of Internal Affairs and Administration (Centrum Projektów Informatycznych MSWiA), under OST 112 contract implementation.
Both agreements were found material, since the value of individual agreements exceeds 10% of the Issuer’s equity capital.
Roman Szwed — President of the Management Board,
Tadeusz Czichon — Vice-President of the Management Board