Report no. 8/2012

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finances of 19 February 2009 on current and periodical information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. informs about receiving on 24 January 2012 contracts with the National Health Fund - the Zachodniopomorskie Voivodeship Branch in Szczecin (the Fund Branch) regarding healthcare services such as hospital treatment, outpatient specialist care and  outpatient specialist care (cost-consuming outpatient diagnostic services), therapeutic rehabilitation and provision of  health care services in the scope of primary health care for the period from 1 January to 31 December 2012.

Healthcare services referred to hereinabove are provided by the hospital owned by EMC Instytut Medyczny S.A. - St. George's Hospital in Kamień Pomorski.

The Issuer informed about the contracts concluded by St. George's Hospital in Kamień Pomorski  with the Fund Branch concerning rendering services in 2011 in its current reports nos.: 1/2011 of 05.01.2011, 7/2011 of 13.01.2011, 13/2011 of 20.01.2011, 19/2011 of  31.01.2011, 25/2011 of  04.02.2011 and  89/2011 of 25.07.2011, 93/2011 of 11.08.2011, 100/2011 of 26.09.2011 and  109/2011 of  2.11.2011.
The contract for the provision of healthcare services such as hospital treatment, marked as SZP/2012 no 16-00-02979-12-10/03-01-11-14 concluded on 11 January 2011, is the contract with the highest value.

The Parties to the contract are the Issuer and the National Health Fund- the Zachodniopomorskie Voivodeship Branch in Szczecin (the Fund Branch).
The subject of the contract is the provision of healthcare services such as hospital treatment by the Issuer.
The maximum amount of Fund Branch liability towards the Issuer in the period from 1 January 2012 to 31 December 2012 totals maximally PLN 9,236,172.00.
The Issuer undertook, within the duration of the contract, to conclude a civil liability insurance contract against damages caused in relation to the provision of services.

In the case of non-performance or improper performance of the contract, caused by the Company, the Director of the Fund Branch may impose a contractual penalty.
In the case of writing out prescriptions to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified refund of the costs of medication made on the basis of prescriptions together with statutory interest calculated from the day of making the refund.

In the case of issuing orders for delivery of medical products which are orthopaedic goods and auxiliary goods fully or partially financed by the Funds to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified financing together with statutory interest calculated from the day of making the refund.
Contractual penalties specified above shall be imposed pursuant to provisions stipulated in General Terms and Conditions of the contracts. The Fund Branch is entitled to claim damages exceeding the value of the contractual penalties.

The contract has been concluded for the period from 1 January 2011 to 31 December 2013 with a possibility of its termination by each party upon a 3-month termination notice. The total Fund Branch liability towards the Company specified in the contract refers to the period from 1 January to 31 December 2012.

A criterion for a contract to be considered significant:
The value of contracts exceeds 10% of the Issuer’s equity capital.