Agreement of Sygnity Business Solutions with the governmental Agency for Restructuring and Modernization of Agriculture

The Management Board of Sygnity S. A.informs that Sygnity Business Solutions S. A.(“Contractor”) on 8th June 2020 has signed an Agreement with the Agency for Restructuring and Modernization of Agriculture (“ARiMR “), the subject of which is the implementation of an IT system for handling tasks related to human resources management (including HR and payroll services) at ARiMR, granting a guarantee for this IT system and provision by the Contractor to ARiMR of services related to the implementation of the abovementioned IT system contracts. The deadline for the implementation of the IT system has been set for a period not exceeding 18 months from the date of signing the Agreement. After completing the implementation of the IT system, the Contractor will be required to provide the mentioned services for a period of 36 months from the date of signing the final implementation protocol.

The parties agreed that the total aggregate remuneration of the Contractor for the implementation of the Contract shall not exceed the amount of approx. PLN 9.8 million gross. To the due performance of the Contract, the Contractor has lodged a security on due performance of the Contract in cash, in the amount of 10% of the maximum gross remuneration resulting from the Contract.

The Contract contains obligation for the contractor to pay contractual penalties to the contracting authority for non-performance and improper performance of the contract, including in particular the occurrence of certain events affecting the timely performance of the subject of the contract. The Contractor’s liability for contractual penalties imposed was limited to 120% of the total gross remuneration. Notwithstanding the provisions regarding contractual penalties, the Employer reserves the right to claim supplementary compensation on general principles.

Other conditions of the Contract implementation, including the Contractor’s liability for its implementation, as well as the possibility of termination or withdrawal from it do not differ from the conditions commonly used for this type of contract.

Legal basis: art. 17 clause 1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Regulation on market abuse).