Conclusion of a conditional contract of sale of real properties

Today, the Management Board of Polimex-Mostostal S.A. having its registered office in Warsaw at ul. Jana Pawła II 12 (hereinafter referred to as the ‘Company’) hereby informs that they received information on execution on 29.12.2015 of a conditional contract of sale of real properties between the Company acting in the capacity of the Seller and Molina Spółka z ograniczoną odpowiedzialnością 6 (limited liability company), limited joint stock company, acting in the capacity of the Buyer, the subject matter of which is a built-up real property located in Płock, gmina of Płock, Mazowieckie Voivodeship, with respect to which the 6th Division of Land and Mortgage Register maintains a land and mortgage register number Kw PL1P/00084622/3 (hereinafter referred to as the ‘Real Property’) (hereinafter referred to as the 'Conditional Contract').

Pursuant to the Conditional Contract, total price for the Real Property shall amount to PLN 1,400,000.00 net, and it shall be increased with the due tax on goods and services at the applicable rate of 23%, or it shall be exempt therefrom. (hereinafter referred to as the ‘Price’).

Execution of an agreement transferring the ownership of the Real Property (hereinafter referred to as the ‘Transfer of Ownership Agreement’) shall depend on fulfilment of the conditions stipulated in the Conditional Contract, inter alia: (i) obtainment of documents issued by all the mortgagees holding collaterals in the form of mortgage and expressing their consent to release all the mortgages and to delete the mortgages in the land and mortgage registers; (ii) obtainment of funding as a result of which the Buyer shall obtain funds to pay the Price stipulated in the Conditional Contract; iii) execution of a written agreement pertaining to pre-emptive right to purchase the Subject Matter of the Contract between the Buyer and the Seller.

The Parties agreed on automatic termination of the Conditional Contract as of 31 April 2016 inclusive if all the conditions are not fulfilled (and the Buyer does not waive the obligation that the conditions shall be fulfilled).

The signing of the Conditional Contract is an element of organisational restructuring of which the Company informed in current report no. 130/2012 regarding the Company and its financial creditors entering into an agreement regarding the principles of financial debt management, and performance of the obligations of the Company arising from the annex to the contract regarding the financial debt management of which the Company informed in detail in current report no. 150/2013 dated 25 October 2013.