Conclusion of a significant agreement

Published on: 8 December 2021

Current report no 25/2022

Conclusion of a significant agreement

Legal basis: Art. 17.1 MAR – inside information

Content of the report:

The Management Board of LSI Software S.A. with its registered office in Łódź (hereinafter “the Issuer”) hereby reports that on 8 December 2021 the Issuer received a countersigned Agreement concluded on 19 November 2021 between the Issuer and Żabka Polska Sp. z o.o. with its registered office in Poznań.

The agreement provides for delivery by LSI Software S.A. of equipment such as touch screens with a net value of USD 1,073 thousand, i.e. PLN 4,446 thousand translated at the average exchange rate of the National Bank of Poland as at 19 November 2021. The agreement shall be executed according to the accepted schedule, which provides for its completion by 31 December 2022.

The agreement envisages the liability of LSI Software S.A. to Żabka Polska Sp z o.o. for delays in the delivery of equipment in the form of a penalty amounting to 0.5% of the remuneration for the execution of the subject matter of the agreement for each day of delay. In addition, should LSI Software S.A. exceed the warranty repair deadline, the Company shall pay Żabka Polska Sp. z o.o. a contractual penalty in the amount of 2% of the value of the claimed equipment for each day of delay. Should Żabka Polska Sp. z o.o. withdraw from the order/delivery for reasons attributable to the Issuer, LSI Software S.A. shall pay Żabka Polska Sp. z o.o. a contractual penalty equal to 30% of the total remuneration. The total liability of the Issuer under the above-mentioned claims shall not exceed PLN 500,000 net.

Other conditions of the agreement do not differ from those commonly used for this type of agreements.

The subject information complies with the significance criterion due to its impact on the projected revenues and financial results of LSI Software S.A.

 

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:

Bartłomiej Grduszak – Vice-President of the Management Board