In reference to Current Report no. 34/2019 dated 27 November 2019, the Management Board of Cyfrowy Polsat S.A. (the “Company”) hereby informs, that is has been notified that the Management Board of its subsidiary Polkomtel sp. z o.o. (“Polkomtel”) made a decision concerning the conclusion of an agreement on the termination of cooperation with Huawei Polska Sp. z o.o. (“Huawei”) under the contract for the implementation of the BES IT system and the provision of software assistance and development thereof (the “Contract,” the “Agreement”).
Under the provisions of the Agreement Polkomtel and Huawei will establish the principles of settlement of mutual performances under the Contract, in particular Polkomtel will agree to pay an amount of ca. PLN 30 million in favor of Huawei as remuneration for the execution of the Contract for works commissioned and accepted by Polkomtel, as well as works completed but not accepted by Polkomtel. Under the provisions of the Agreement Polkomtel will receive the results of works executed and tools developed under the Contract.
Concurrently, according to the provisions of the Agreement Polkomtel and Huawei shall waive mutual claims regarding the execution of the Contract.