Conclusionof a significant Agreement.ManagementBoard of G-Energy S.A. (GENERGY, Issuer, Subcontractor) with its seat inWarsaw informs that today it has received a notification of theInvestor's (PSG sp. z o.o. with its seat in Tarnów) acceptance of theSubcontracting Agreement for the preparation of design documentation andimplementation of construction works concluded by the Issuer with KOTŁO-REM Sędziszów sp. z o.o. with headquarters in Sędziszów (KOTŁO-REM,Contractor), which concerns the performance of the task under the name:_quot;Comprehensive performance of works related to the construction ofconnections for new customers along with the expansion - a branch of thegas plant in Krakow, the area of _#8203;_#8203;operation of the gas plant in KrakowKrowodrza - IIIC_quot; The subject of the Agreement is construction workconsisting in the preparation of design documentation and theimplementation of comprehensive works related to the construction ofconnections for new customers along with the expansion of gas pipelines(excluding contracts below 10 m3 / h from the existing gas pipelines) atthe Gas Plant Branch in Kraków, area of _#8203;_#8203;operation of the KrakówKrowodrza Gas Plant - IIIC - commune Iwanowice, Michałowice, Skała,Zielonki, Gołcza, Sułoszowa, Trzyciąż, Miechów, Charsznica, KsiążWielki, Racławice, Kozłów, Słaboszów. Subcontractors. To the valuecalculated in the Order in accordance with the unit prices specified inthe offer form, a coefficient will be added that takes into account thecosts related to the mobilization of the Contractor's equipment beyondthe area indicated in Appendix No. 1 to the Agreement. The ratioreferred to above will be depending on the value of the order: 1) 10% -for Orders with a net value of up to PLN 10,000.00, 2) 5% - for Orderswith a value from PLN 10,001.00 net The Subcontractor undertakes toperform the Subject of the Agreement on the basis of the OrderingParty's Orders, which will be each time issued by the Ordering Party forthe execution of specifically defined connections and gas pipelines(referred to as Tasks). The Contractor will issue Orders during the termof the Agreement as required by the Ordering Party within 24 months ofsigning the Agreement. The implementation of individual ordered Taskswill take place taking into account the price rates and price indicesincluded in the Contractor's offer form. The subject of the Agreementincludes in particular: execution of the construction and working designof the commissioned Tasks; obtaining all the required opinions, permitsand decisions, including obtaining, on behalf and for the benefit of theEmployer, from the competent authority, a final decision on theconstruction or reconstruction permit, or filing a notification to whichthe competent authority did not raise an objection; performing author'ssupervision, construction or reconstruction of medium and low pressuregas networks, execution of earthworks, and reconstruction of the surfaceafter works and bringing the works site to the state before the workswere performed, hereinafter referred to as the Works; execution of worksaccompanying the Works, preparation of as-built documentation andas-built geodetic inventory required by law; preparation ofdocumentation for the purposes of drawing up notarial deeds written downin the process of establishing a transmission easement; performance ofother works accompanying the Works as well as legal, administrative anddocumentation activities not listed above, but specified and required.The tasks will be performed on the basis of separate Orders submitted tothe Subcontractor by the Contractor or directly by PSG. The number ofTasks awarded to the Subcontractor under the Orders submitted during theterm of the Agreement will depend on the actual number of gas networkconnection agreements, For the performance of the Object of theAgreement, the Issuer will receive a total remuneration not exceedingPLN 21,000,000.00 (in words: twenty one million zlotys). This amountwill be increased by the due tax on goods and services (VAT) at the rateapplicable on the date of the 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 the work performed,calculated on the basis of the material scope performed included in thetechnical / final acceptance protocol, as-built inventory and detailedcost calculation. The contract was concluded for a period of 24 (say:twenty-four) months from the date of its signing, with the proviso thatwithin the indicated period, KOTŁO-REM has the right to award Orders,and GENERGY is obliged to accept them, while the Parties agree that theterm of the Agreement will expire upon completion of the works performedunder all Orders, i.e. also after the date on which, in accordance withthe rule for calculating the terms expressed in months, resulting fromthe Civil Code.Ifthe Ordering Party confirms the necessity to perform additional works,the Subcontractor will prepare a valuation of the works in accordancewith the principles set out in the Regulation of the Minister ofInfrastructure of May 18, 2004 on determining the methods and groundsfor preparing the investor's cost estimate, calculating the plannedcosts of design works and the planned costs of construction works,specified in functional and utility program. The parties, throughnegotiations, will determine the conditions for the performance ofadditional works, in particular the amount of remuneration for theirperformance - on the basis of the quotation (cost estimate) presentedfor approval. The Ordering Party is entitled to demand payment ofcontractual penalties, in particular for failure to perform the Task /Tasks covered by a given Order within the time specified in the Order asthe date of Project development, the date of signing the Report onfilling gas or the final acceptance date, for reasons attributable tothe Contractor - in the amount of 0 2% of the net remuneration for eachday of delay, but not more than 20% of the net remuneration. For thedelayed performance of the Task covered by the given Order, thecontractor shall pay to the Ordering Party a contractual penalty in theamount equivalent to the contractual penalty paid by the Ordering Partyto the connected entity for delayed performance of the connectionagreement. In the event of withdrawal from a specific Order for reasonsattributable to the Subcontractor (regardless of the legal basis) - inthe amount of 40 (say: forty)% of the net remuneration. The total amountof contractual penalties due to the Ordering Party under the Agreementmay not exceed 30% of the total net remuneration.Theremaining detailed terms and conditions of the above-mentionedagreements do not differ from those commonly used in this type ofagreement.