Conclusion of a conditional sale contract of the right of perpetual usufruct of real estate

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Młynarska 42 („Company”) informs that on 28.01.2015 a conditional sale contract of the right of perpetual usufruct of developed real estates was concluded between the Company as the Seller and Molina spółka z ograniczoną odpowiedzialnością 3 spółka komandytowo-akcyjna with its registered office in Warsaw as the Buyer. The subject of the contract is the real estate located in Stalowa Wola, the Stalowa Wola municipality, the Stalowa Wola County, Podkarpackie Voivodeship, for which the District Court for Stalowa Wola, VI Land and Mortgage Register Division, maintains a land and mortgage register under KW No. TB1S/00023595/4, KW No. TB1S/00012224/3, KW No. TB1S/00012225/0 (“Real Estate”) (“Conditional Contract”).

 Pursuant to the Conditional Contract, the total net price for the Real Property amounts to PLN 6,600,000 and the total gross price - PLN 8,118,000 (“Price").

The transfer of ownership agreement ("Transfer Agreement") is dependent upon fulfilling the conditions stipulated in the Conditional Contract, such as: (i) not having exercised the pre-emptive rights by the President of Stalowa Wola; (ii) providing the Buyer with documents issued by all mortgagers who own mortgages, including their consent to exempt the Subjects from all mortgages and to remove these mortgages from land and mortgage registers; (iii) obtaining financing as a result of which the Buyer obtains funds to pay the conditional price stipulated in the Conditional Price Contract; (iv) presenting declarations of all tenants and lessees of the Real Estate, in which they state whether the lessor’s claims have been secured or not.

The parties agreed on an automatic termination of the Conditional Contract as of the end of 30 April 2015 in the case all of the conditions are not fulfilled (and the Buyer does not renounce its obligation to fulfill them).

The conclusion of the Conditional Contract is an element of operational restructuring realisation, of which the Company informed in current report no. 130/2012 on conclusion with financial creditors of the Agreement on the principles of managing the financial debt of the Company and it constitutes the performance of the Company's liabilities resulting from the annex to the Agreement on managing the financial debt, of which the Company informed in detail in current report no. 150/2013 dated 25 October 2013.