Annex andConclusion of an Extending Subcontracting Agreement with PGNiGTechnologie S.A. based in Krosno.TheManagement Board of G-Energy S.A. with its registered office in Warsaw(hereinafter: the Issuer, G-Energy) announces to the public that todayit has received a signed Subcontracting Agreement extending the scope ofwork performed between the Issuer and PGNiG Technologie S.A. based inKrosno (hereinafter: PGNiG Technologie) regarding the task entitled_quot;Design and construction of the technological infrastructure of the gasnetwork along with auxiliary installations and management, as well asconnections to the infrastructure of the plant at the Kawęczyn HeatPlant.Thesubject of the Agreement is the extension of the comprehensive executionby the Contractor of design works in all industries for the Investmentand the comprehensive execution, in particular, the execution of allWorks resulting directly and indirectly from the Scope of Work, thecomprehensive execution by the Issuer of technological works of thereduction and measurement station with DN300, DN500 transmissionpipelines, cathodic protection, thermal insulation and sanitaryfacilities at the Kawęczyn Heating Plant resulting directly andindirectly from the Scope of Work constituting an annex to theAgreement, including in particular: a) preparation of complete qualitydocumentation for the scope of the completed installation, b)preparation of complete as-built documentation, c) construction ofAuxiliary Installations, d) carrying out Commissioning and launching theInvestment in the scope related to the Subject of the Agreement, e)ensuring compliance with the Guaranteed Technical Parameters, providinga quality guarantee and fulfilling obligations under the warranty andguarantee for the completed Investment, f) conducting training for theInvestor's staff.Thecontract is carried out in the _quot;turnkey_quot; formula by the Ordering Partyfor PGNiG Termika S.A. in Warsaw. The _quot;turnkey_quot; formula meanscomprehensive performance by the Contractor of the Works in order toperform the Agreement and ensure the functioning of the Agreement inaccordance with the terms resulting from the Agreement.TheIssuer is obliged to take over the Site of Works from the Employerwithin 7 days from the date of receipt from the Employer of thedeclaration of readiness to hand over the Site.Theparties undertook to cooperate in the implementation of the Agreement tothe extent enabling the effective performance of the obligations of eachof the Parties. PGNiG Technologie and G-Energy have announced that theywill cooperate on an exclusive basis, which results from the signedCooperation Agreement on the signing of which the Issuer informed in rb.ESPI 32/2019 of June 27, 2019.TheIssuer continues the implementation of the Agreement immediately to meetthe deadline for the implementation of the Agreement set for June 28,2024, taking into account the dates detailed in the AgreementImplementation Schedule.TheAnnexed Remuneration due to G-Energy from PGNiG Technologie for theimplementation of the Scope of Works by G-Energy will amount to net PLN11,110,000.00 (in words: eleven million one hundred and ten thousandzlotys and 00/100) increased by VAT charged in accordance withapplicable regulations, i.e. PLN 2,555,300 (two million five hundredfifty-five thousand three hundred zlotys) in total PLN 13,665,300(thirteen million six hundred sixty-five thousand three hundred zlotys)gross.Theremuneration for the proper performance of the Extension Agreement (thisremuneration is also called the _quot;Contractual Remuneration_quot; in theAgreement), in particular for the performance of the Subject Matter ofthe Agreement and all other obligations covered by the Agreement is: netPLN 1,530,000.00 (say: one million thirty thousand zlotys). and 00/100)increased by VAT charged in accordance with applicable tax regulationsin the amount of PLN 351,900.00 (in words: three hundred fifty-onethousand nine hundred zlotys and 00/100), i.e. PLN 1,881,900.00 (inwords: one million eight hundred eighty one thousand nine hundred zlotysand 00/100) gross, (hereinafter referred to as the _quot;Remuneration_quot;).Thisamount may be increased in the event of the performance of further tasksnot falling within the scope of this Agreement.Paymentfor the Works accepted in part will be made by PGNiG Technologie on thebasis of the Contractor's invoices, in accordance with the billingschedule.PGNiGTechnologie will grant G-Energy an advance payment for the execution ofconstruction and assembly works in the amount of PLN 3,330,000.00 net(in words: three million three hundred thirty thousand zlotys and00/100) plus VAT in the amount of PLN 765,900.00 ( in words: sevenhundred sixty five thousand nine hundred zlotys and 00/100), i.e. PLN4,095,900.00 (in words: four million ninety five thousand nine hundredzlotys and 00/100) gross. The advance payment will be made after signingthe Agreement, but not earlier than after receiving a written requestfrom the Contractor for the advance payment together with the securityfor its return.PGNiGTechnologie allows for the possibility of earlier payment of theG-Energy VAT invoice at the Contractor's written request. In the eventof an earlier payment, the amount due under the VAT invoice issued bythe Contractor will be reduced by the amount of discount interest in theamount of 5% per annum.PGNiGTechnologie has the right to charge the issuer with contractualpenalties, in particular:inthe event of failure to meet any of the key deadlines for theimplementation of the Works (indicated in the Agreement ImplementationSchedule): execution by the Contractor of the basic design and landdevelopment design in the amount of 0.1% of the net contractualremuneration, for each commenced day of delay, unless the Issuer provesthat the delay arose for reasons attributable to the Ordering Party orthe Investor; obtaining a valid construction Permit and transferring itto the Employer - 0.1% of the net contractual remuneration for eachcommenced day of delay, unless the Issuer proves that the delay wascaused by reasons attributable to the Employer or Investor; completionof construction and assembly works - in the amount of 0.2% of the netcontractual remuneration for each commenced day of delay, unless theIssuer proves that the delay was caused by reasons attributable to theOrdering Party or the Investor; Start-up and start-up, completion of allWorks and handover of the Investment in the scope of the Subject of theAgreement for operation along with obtaining a valid Use Permit - in theamount of 0.2% of the net contractual remuneration for each commencedday of delay, unless the Issuer proves that the delay has arisen forreasons attributable to the Ordering Party or the Investor. The totalamount of contractual penalties resulting from all the titles providedfor in this Agreement shall not exceed 50% of the net remuneration(excluding VAT), with penalties for delays in the performance of theagreement 30% of the net remuneration. The total liability of each Partyfor non-performance or improper performance of the Agreement is limitedto the amount of 100% of the net contractual remuneration. If theContractor meets the deadline for Putting the Investment into Operationbefore the deadline, the Ordering Party will not charge the Contractorwith contractual penalties for delay in performing the tasks.Theremaining conditions for the performance of the Agreement do not differfrom those commonly used in this type of agreement.Legalbasis:Art.17 sec. 1 of the Regulation of the European Parliament and of theCouncil _UE_ No. 596/2014 of April 16, 2014 on market abuse (marketabuse regulation) and repealing Directive 2003/6 / EC of the EuropeanParliament and of the Council and Commission Directive 2003/124 / EC,2003/125 / EC and 2004/72 / EC _also known as MAR_.