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POLONEUM PROPOSAL





(this document was published in July 2001 and its last update was on January 6, 2003)

CONTENTS:

1. INTRODUCTION

2. EXECUTIVE SUMMARY

3. POLONEUM PILOT PROJECT
    3.1   THE PROJECT’S OBJECTS
    3.2   PROGRAM
    3.3   PRELIMINARY COSTING

4. RECOMMENDATIONS
    4.1   CONDITIONS OF COOPERATION WITH POLONEUM
    4.2   POLONEUM OBLIGATIONS AGAINST ORGANISATIONS-PARTIES
    4.3   RECOMMENDED WAYS OF DOING BUSINESS
    4.4   ADAPTATION OF THE PROPOSED POLISH-AUSTRALIAN JOINT VENTURE IN AUSTRALIA

5. TIMETABLE

6. COST OF POLONEUM PROPOSAL

7. REALISATION OF ‘FEASIBILITY STUDY’ (Polish - ‘STUDIUM WYKONALNOŚCI)
    7.1   SCOPE OF WORK REQUIRED TO ORGANISE AND STAFF
    7.2   NET SCHEDULE
    7.3   GANTT’S GRAPH

8. DISCLAIMER

ATTACHMENTS

1. INTRODUCTION

The hereby POLONEUM PROPOSAL is a result of the past decade’s work of experts representing Polish and Australian business groups to secure a harmonious development of future economic relations between Poland and Australia including regional factors. The contents of this document is subject to consequent, routine updates, so the whole concept could be well suited in the changing environment, with no substantial modification to the entire plan whatsoever.

The current political opening of Poland enables the successive removal of barriers still existing in the state economic system on the way to the autonomous development of Polish enterprises and financial institutions. The political and economic situation in Australia is also a factor conducive to this process and it is now possible to launch strategies involving the installation of new financial channels on a global scale.

The hereby PROPOSAL gives a strategy enabling commencement of the proposed POLONEUM PROJECT, as adopted by POLONEUM Development Council following consultations and agreements with the Prospective Chief Investors (see Attachment 1).

It is crucial at this stage that all the Organisations-Parties entering negotiations agree to prepare and submit to the Chief Investor for approval a document of a ‘Feasibility Study’ (in Polish - ‘Studium wykonalności’), containing full information regarding registration of the proposed Polish-Australian enterprise in both countries within 26 weeks, as per GANTT’s Graph (7.3). In order to achieve the tasks outlined in this PROPOSAL, all Organisations Parties are obliged to sign the POLONEUM FORMULA Agreement and agree to cooperate according to the RECOMMENDATIONS and TIMETABLE below (5.).

DIAGRAM 1


The above DIAGRAM 1 is a graphic representation of structure of shares of Organisations-Parties in proposed POLONEUM PROJECT, where the Chief Investor’s involvement is set at 51% of shares value. Central position of POLONEUM in the DIAGRAM 1 marks its role as a strategic coordinator of the enterprise structurally subdued to other participants.

2. EXECUTIVE SUMMARY

It is proposed hereby that POLONEUM INCORPORATED (further referred to as POLONEUM) in cooperation with interested Organisations-Parties organise a market research investigation in order to launch a Polish-Australian enterprise, incorporating a financial institution (preferably a Building Society), based on the hereby presented POLONEUM PROJECT. Also that this investigation should be submitted to the Chief Investor(s) in a document of a ‘Feasibility Study’ recommending a form of this initiative and advising on opportunities that the Organisations-Parties would encounter through observation of RECOMMENDATIONS, TIMETABLE and COSTING in this PROPOSAL..

3. POLONEUM PILOT PROJECT

      3.1 THE PROJECT’S OBJECTS

The idea of POLONEUM provides for many spatial assumptions, projects of which will be implemented in Australia and Poland, as well as in adjacent regions, following strategic recommendations for each stage.

The marketing reasons have decided that the first pilot project called the POLONEUM PROJECT is proposed for implementation. Its theme is the park-palace complex located in Adelaide, South Australia, for public and residential use.

The conceptual program of the Project implementation is presented in the diagram below.

The qualitative and technological parameters of this scheme are subject to adjustments accordingly with the development of the enterprise. It is suggested strongly that an architectural idea of the POLONEUM PROJECT stays unchanged, as it stands for the spirit worded in the POLONEUM MISSION STATEMENT.

In Attachment 4, the program concept of the Project is given, whose quantitative and technological parameters as well as some functions will be adapted to the needs as the project develops. The architectural concept as well as the functional and spatial layout of individual assumptions, constituting the idea of POLONEUM, remain unchanged.

The center in Adelaide, South Australia, fulfilling the role of the Polish culture and economy site on Antipodes is planned for implementation in the first stage. The dominant feature of this concept is the center in the form of a summer version of the Łazienki Palace in Warsaw. For the implementation of the Australian Center in Poland, the project will be selected through consultation with the Australian side.

All the architectural projects of POLONEUM are planned to be created by organising Polish-Australian architectural competitions in cooperation with SARP Lodz Chapter and RIAA Adelaide Chapter.

      3.2 PROGRAM

The Project Program provides for the deployment of functions according to recommendations in post-competition design decisions.

The designed park-palace complex in Adelaide is a room for those Polish institutions and organisations that have a need to do business in Australia and the Far East with a representative function.

The Australian Center in Poland is to fulfill an analogous role for Australian partners.

      3.3 COSTING

The value of the POLONEUM PROJECT is initially estimated at AUD 25 million and may change after consultation with the Joint Venture Organisations.

4. RECOMMENDATIONS

      4.1  TERMS OF COOPERATION WITH POLONEUM

Joint Venture is a commonly recognised form of cooperation between organisations of varying profiles in Poland.

The final legal form of the POLONEUM project and its organisational structure will, however, be decided by the Chief Investor after the analysis of the Feasibility Study and consultation with all the Organisations-Parties.

The achievement of the objective set out in this Proposal is possible only on the assumption that all Organisations-Parties agree to observe in practice the RECOMMENDATIONS (4.) and SCHEDULE (5.) according to this study.

The practical start of cooperation is possible after learning and the declaration given in the POLONEUM FORMULA (click), which is the rule applicable to all Participants in this Project without exception

This is what the scale, uniqueness and visibility of the whole Project requires from them and this is to some extent a limitation of freedom of action, but it prevents failure at the start.

      4.2  POLONEUM’S OBLIGATIONS AGAINST ORGANISATIONS-PARTIES.

4.2.1

Unless decided otherwise by all Organisations-Parties, POLONEUM declares hereby to cover from its own budget all the necessary cost towards the finalisation of the ‘Feasibility Study’, including the value of contracts signed and other well documented expenditures indispensable for those contracts’ completion.

4.2.2

In particular, within its budget POLONEUM is hereby obliged to:

4.2.2.1

Deliver all necessary support to Organisations entering the scheme, including marketing, that they are able to fully participate in realisation and approval process of the final document of ‘Feasibility Study’ according to TIMETABLE and COSTING beneath.

4.2.2.2

Bring to harmonious cooperation between local Authorities of the regions involved in this POLONEUM enterprise.

4.2.2.3

Secure accommodation and professional training, including interpreting services both in Australia and Poland.

4.2.2.4

Report to the Chief Investor completed stages of the Project. The reports are property of the POLONEUM Project’s initiators, being POLONEUM and the Chief Investor, and all those Organisations-Parties, subject to this Proposal, as agreed by the Chief Investor.

4.2.2.5

An organisation taking a role of the Chief Investor in the proposed initiative is, according to DIAGRAM 1, an Authority to all other Organisations-Parties, responsible for monitoring and an audit of all delivered and supplied documentation regarding this PROPOSAL.

      4.3  RECOMMENDED WAYS OF EFFECTIVE COOPERATION WITH POLONEUM

4.3.1

POLONEUM is a community organisation relying entirely on support of its Members and Sponsors. The conditions pointed out below are satisfactory ones for each entering Organisation to get declared for this PROPOSAL:

4.3.1.1

Signing the SPECIAL RESOLUTION of POLONEUM - see the POLONEUM FORMULA

4.3.1.2

Paying the Sponsorship Fee to a bank account of POLONEUM as by the POLONEUM SPONSORSHIP CHART 2003’.

4.3.2

Each organisation paying the OPAL HEART SPONSORSHIP acquires automatically a status of an Organisation-Party in the proposed enterprise.

4.3.3

On any Organisation-Party’s unsatisfactory decision, Development Council of POLONEUM, as a Coordinator of the Project, hereby reserves itself a right not to comply with obligations against this Organisation-Party in a way agreed with the Chief Investor.

      4.4  ADAPTATION OF THE PROPOSED POLISH-AUSTRALIAN JOINT VENTURE IN ECONOMIC
            CONDITIONS OF AUSTRALIA

4.4.1

The period of initial adaptation newly launched organisation in Australia would be required for its smoother assimilation, especially within ethnic environment. It is vital to care for creation of healthy environmental relations, as this would have strong influence on the Institution’s harmonious growth. It is at a start of an enterprise when the most intense exchange of information between all participants in the scheme takes place and the main strategy being adjusted.

4.4.2

POLONEUM would coordinate the adaptation process in its own well-understood interest, especially by taking care of the newly established organisation against a negative influence of an environment. In particular, POLONEUM would take care of the fair image of the launched Institution and its good perception by community and the Authorities of South Australia through active support of POLONEUM relations with existing ethnic organisations.

4.4.3

The Chief Investor would secure a regular communication between Australian institutions involved and their relative Polish partners in Poland.

4.4.4

An anticipated period of adaptation of the proposed POLONEUM Financial Institution in Australia is 2 (two) years. Following this time the launched Institution enters stages of its systematic and autonomous growth.

5. TIMETABLE   (see: 7. REALISATION OF ‘FEASIBILITY STUDY')

      5.1  First and Second Months

5.1.1

Correspondence with selected representatives of Polish, Australian and related authorities and legislatures in order to obtain comprehensive information on the desired and possible solutions and forms of the planned Polish-Australian venture.

5.1.2

First delegation of POLONEUM representatives for multilateral negotiations in Poland.  Schedule of POLONEUM’s operations in Poland:

5.1.2.1

Issuing of the Prospectus of the proposed Polish-Australian enterprise for its presentation to all those interested.

5.1.2.2

Announcement of Polish-Australian architectural competition for the POLONEUM PROJECT to be realised in Adelaide, South Australia.

5.1.2.3

Completion of the list of businesses and institutions declared to join the POLONEUM PROJECT.

5.1.2.4

Agreement by the declared Organisations-Parties for a budget for POLONEUM to execute the ‘Feasibility Study’ according to the COSTOLOGY (6.) below.

5.1.3

Registration of POLONEUM Polish representative in Poddębice, Poland.

5.1.4

Commencement of the ‘Chopin Nights’, a series of grand piano concerts being a promotion and a fund raising function in Adelaide.

      5.2  Third and Fourth Months

5.2.1

The visit to Australia of representatives of all the Organisations-Parties of the proposed Polish-Australian undertaking in order to agree and approve the concept of long-term cooperation most suited to them, as agreed earlier in the consultations.

5.2.2

Gala Concert as a clause to a cycle of ‘Chopin Nights’ attended by representatives of all the Organisations-Parties, as well as State and Local Government.

5.1.3

Second business trip of POLONEUM representatives to Poland to continue multilateral negotiations prior to discussion with the Chief Investor. Setting up a common strategy towards attainment of the discussed priorities and goals.

      5.3  Fifth and Sixth Months

5.3.1

Collation of materials and analysis of information in order to finally set up a structure and a development strategy of the Proposed enterprise.

5.3.2

Finish of ‘Feasibility Study’ and presentation of the document to the Chief Investor for approval.

5.3.3

Delivery of a document of ‘Feasibility Study’ to the Government Agencies of Poland and Australia for evaluation and monitoring.

6. COSTOLOGY OF POLONEUM PROPOSAL

6.1

‘Feasibility Study’ for the Chief Investor according to the above RECOMMENDATIONS and TIMETABLE, incurs the following cost by POLONEUM:

‘CHOPIN NIGHTS’:prices in AUD

- Hire and insurance of a grand piano for 2 months

$4,700

- Awards for pianists

$1,500

- Rental of premises

$1,000

SUBTOTAL___________________________________________________________________

$7,200


CONTRACTS WITH POLONEUM (according to the attached GANTT’s Graph):

1. $1,800 per week for 26 weeks (A+B+C+I+L)

$46,800

2. $1,800       ‘’        ‘’        ‘’        ‘’     (A+B+C+I+L)

$46,800

3. $1,650 per week for 9 weeks (G)

$14,850

4. $1,650      ‘’       ‘’       ‘’       ‘’      (G)

$14,850

5. $1,600 per week for 6 (F) + 5 weeks (J)

$17,600

6. 1,500 per week for 3+4 weeks (E+J)

$10,500

7. $1,450 per week for 6 weeks (H) +4 weeks (J)

$14,500

8. $1,250 per week for 2 weeks (D)

$2,500

9. $1,150      ‘’       ‘’       ‘’       ‘’      (K)

$6,900

SUBTOTAL___________________________________________________________________

$175,300

Notice: red is assigned to expenditures born by POLONEUM by 7 May 2002:



FIRST DELEGATION TO POLAND (‘POLONEUM DELEGATION JUNE 2001’):

- cost of 4 return airline tickets 'business class'

$30,500

- Special Envoy - stay, rent-a-car, etc. (diet 311 days á $200)

$62,200

- travel expenses (visas, passports, gifts, etc.)

$5,000

- communication (telephones, roaming, faxes, e-mails, etc.)

$7,500

- other expenses (office renovation, etc.)

$17,500

CZERWONY SUBTOTAL_____________________________________________________________

$122,700

SECOND POLONEUM DELEGATION TO POLAND:

- cost of air return tickets (5x $2,400)

$12,000

- accommodation, rent-a-car, etc. (diet 5x14 days á A$200)

$14,000

- travel expenses (visas, passports, gifts etc.)

$3,000

- other expenditure (ads, announcements, communication etc.)

$12,000

SUBTOTAL___________________________________________________________________

$41,000

POLISH DELEGATION TO AUSTRALIA:

- cost of air return tickets, visas (20x $2,400)

$48,000

- 14-day accommodation in hotels (7x 14X$150)

$14,700

- transport, rent-a-car, etc.

$7,200

- insurance, permits etc. formalities

$14,000

SUBTOTAL___________________________________________________________________

$73,900

TOTAL_____________________________________________________________________

$425,100

The above cost is based on the tariffs provided by AUSTRADE and and is subject to renegotiations with the involved Organisations-Parties.

6.2

All legal cost to be born as a result of standards of the business’ registration and documentation approvals by state authorities of South Australia and Poland are relevant to the rank of the enterprise and are not in capacity of POLONEUM budget. Information on those proceedings is payable and impossible to obtain prior to submission of the relevant parts of documentation of the ‘Feasibility Study’.

6.3

All the addresses of Departments, Agencies, institutions and organisations responsible for the process of the documentation’s of the ‘Feasibility Study’s approval, both in Poland and Australia, would be let known following acquisition and approval of the hereby PROPOSAL by all the Organisations-Parties involved.

7. REALISATION OF ‘FEASIBILITY STUDY’

7.1 OVERALL SCOPE OF WORK REQUIRED TO ORGANISE AND STAFF.

No. CODE Operation Immediate
Predecessor
Time
(weeks)
1. A Approval of the POLONEUM PROPOSAL and adoption of the leading ‘I.W.’ No 1
2. B Approval of contracts for the Management, the Project Management No 52
3. C Feedback from ‘O.-S.’ estimation and approval of the budget for ‘F.S.’ No 3
4. D Selection and purchase of equipment, set up of communication C 2
5. E Finish of the Project’s Scheme (during visit of Polish delegation in Australia) B 3
6. F Contract to find a land title for the POLONEUM PROJECT A 6
7. G Enter, collation and analysis of market data D,E 18
8. H Presentation of the preliminary version of ‘F.S.’ to be seen by ‘D.D.P.’ E 6
9. I Feedback on and refinement of the Project G,J 2
10. J Risk Management Study A,C 13
11. K Employee training, symposia A,G 6
12. L Prepare functional UCCC compliance requirements document G,H,I 3

Abbreviations:     I. W. – Chief Investor, ‘O.-S.’- Organisations-Parties, ‘F.S.’ –‘Feasibility Study’, ‘D.P.J.2001’ – POLONEUM DELEGATION JUNE 2001, (‘D.D.P.’) – SECOND POLONEUM DELEGATION to Poland.


7.2 NET SCHEDULE

7.3 GANTT’S GRAPH (with the variable components)

8. DISCLAIMER

The hereby presented Proposal is a property of POLONEUM Incorporated and all arbitrary issues resulting from discussion or processing of its contents or any documentation being part of or compulsory to it will be assessed according to the wording of POLONEUM rules, policies, disclaimers and terms of agreements therewith.

ATTACHMENTS

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Last update of graphics: March 28, 2018

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