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The conclusion of the significant agreement

The conclusion of the significant agreement

Date of publication: 20.02.2015

On 20 February 2015 PROCHEM S.A. signed an agreement with the industrial client on engineering and design works and on management contracting for the production facility.

Formula of remuneration for Management Contracting includes margin and the costs of implementation of the subject of this contract, so remuneration of PROCHEM S.A. it will be possible to determine after final settlement of the costs incurred. The Issuer expects that it will exceed 10% of the equity and therefore the contract was considered significant.

Deadline for completion – 3rd quarter of 2016.

The agreement contains provisions relating to contractual penalties, their value is limited to PLN 405 zloty. Each party shall be entitled to seek compensation on general principles above the amount of contractual penalties, but not more than PLN 2.5 million.