The Management Board of AmRest Holdings SE (“AmRest”) informs about signing on April 3rd, 2014 the distribution agreement (“the Agreement”) between AmRest’s subsidiaries – AmRest Sp. z o.o., AmRest Coffee Sp. z o.o.. (“the Subsidiaries”) and Quick Service Logistics Polska Sp. z o.o. sp.k. („QSL”, “Distributor”).
On the basis of the Agreement QSL will deal with purchasing, warehousing and sale of products for the restaurants operated by the Subsidiaries in Poland.
Estimated value of the contract is PLN 1,5 billion. The Agreement has been signed for a period from September 30th, 2014 to October 4th, 2020.
The agreement provides for the liquidated damages for QSL from the Subsidiaries in the amount of EUR 1 000 000 (one million) in the event of termination of the Agreement for reasons attributable solely to AmRest, in cases indicated in the Agreement, i.e. if the Subsidiaries shall be in arrears with any due payments resulting from indisputable Invoices to the benefit of the Distributor and shall not perform the payment in spite of the implementation of a procedure specified in the Agreement or if the Subsidiaries shall lease or sell the entire enterprise of the Company or in any way lose the ability to manage or administer the enterprise. The liquidated damages, to the payment of which AmRest shall be obliged in order to cover the costs incurred by the Distributor with regard to investing in vehicles and infrastructure necessary to render Services specified in the Agreement, exhaust all claims in respect of termination of the Agreement for reasons attributable solely to AmRest. QSL is not entitled to recover damages exceeding the amount of liquidated damages. After four years of the effective period of this Agreement the liquidated damages shall be lowered to EUR 500 000 and after five years of the effective period of this Agreement AmRest shall be exempted from the liquidated damages.
The Agreement has been considered as significant because of its value, which exceeds 10% of AmRest equity as of December 31th 2013.