The Management Board of Comarch S.A. announces that value of agreements signed during the last 12 months by the Comarch Group entities with the Telefonica Group entities exceeded 10% of the equity of Comarch S.A. In view of the above, the Management Board of Comarch S.A. has considered these agreements to be significant.

The highest value of the agreements concluded with the Telefonica Group entities is an annex dated the 23rd of December, 2015 (hereinafter: the "Annex" ) to the agreement dated the  5th of May, 2015 (hereinafter: the "Master Agreement") on the implementation of the Planning & Desing CM concluded between Comarch Sistemas LTDA, a subsidiary of Comarch S.A. and TELEFONICA BRASIL  S/A, the Telefonica Group entity. The Annex expands the scope of the Master Agreement by implementing  Network Inventory solutions together with Discovery & Reconciliation. The value of this Annex amounts to BRL 29,960 thousand net  i.e. PLN 35,847 thousand (exchange rate as of the date of publication of this report). The Annex was concluded until 31st of December, 2018. Financial conditions of the Master Agreement as well as the Annex do not differ from those commonly used in the market for such agreements.

The Annex as well as the Master Agreement provides for the following provisions for contractual penalties: 1. penalties for delay according to the daily rate of 0.5% up to a total rate of 20% of the total value of historical invoices per each case; 2. penalties for breach of an agreement - 20% of contractual remuneration for each case; 3. other penalties provided in the agreement for a total amount of 20% of the contractual remuneration; 4. in case of termination of an agreement due to breach of confidentiality, the penalty amounts to 35% of the contractual remuneration; 5. BRL 10,000 per each case of lack of registration of an employee in appropriate authority. Limitation of penalties is a limitation per each case. There is no total limitation concerning all possible penalties. In the agreement, there is established a limit of liability for damages and losses to 100% of the contract value. The following claims are excluded from limitations of liability: resulting from breach of intellectual property rights, breach of obligations concerning confidentiality and employee claims. Payment of contractual penalties does not exclude the right to claim for compensation exceeding the amount of these penalties.

The total value of the agreements concluded by Comarch Group entities with Telefonica Group entities during the last 12 months amounts to approx. PLN 114,723 thousand.