Loan agreement of Issuer’s subsidiary

The Management Board of Echo Investment S.A. (hereinafter referred to as the Issuer) hereby reports that on the 28th of August 2013 a subsidiary of the Issuer, PARK ROZWOJU – „GRUPA ECHO” SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ S.K.A., with its registered office in Kielce at Solidarności Avenue 36, 25-323 Kielce, entered in the Register of Entrepreneurs kept by the District Court in Kielce, 10th Commercial Department of the National Court Register, under the number KRS 0000397368 (hereinafter referred to as the Borrower or the Company) and BANK ZACHODNI WBK S.A., with its registered office in Wrocław at Rynek 9/11, 50-950 Wrocław,  entered in the Register of Entrepreneurs kept by the District Court Wrocław-Fabryczna in Wrocław, 6th Commercial Department of the National Court Register, under the number KRS 0000008723 (hereinafter referred to as the Lender or the Bank), singed a loan agreement (hereinafter referred to as the Agreement).  The funds acquired on the basis of the Agreement will be used by the Borrower to finance the construction of the first stage of an office building which is to be part of the office complex under the name of "Park Rozwoju" located in Warsaw at  Konstruktorska Street 10 (hereinafter referred to as the Project). Subject to conditions specified in the Agreement, the Bank makes the following funds available to the Borrower:
1/monetary resources constituting an investment loan at a maximum amount of EUR 22,403 thousand (twenty two million four hundred three thousand euro), where the funds from the Tranche A are to be used to finance or refinance the expenditure borne to pay the costs of the office project whereas the funds from the Tranche B are to be used to refinance the debt resulting from the Tranche A by way of a conversion.
2/monetary resources constituting a VAT loan at a maximum amount of PLN 5,000 thousand (five million zloty) to be used in order to finance or refinance the VAT tax in connection with the construction of the office project.
The loans shall bear interest, which for the investment loan is based on the variable EUROLIBOR for one-month deposits with regard to the Tranche A or three-month deposits with regard to the Tranche B, and for the VAT loan – in accordance with the variable WIBOR for one-month deposits plus the bank"s margin.
The repayment of the loans is as follows:
1/ with reference to the Tranche A – no later than the day which falls 24 (twenty four) months after the date of the first use of the Tranche A;
2/ with reference to the Tranche B – on the day which falls 84 (eighty four) months after the Conversion date, subject to the fulfilment of the condition concerning the lease agreements, but in no case later than the 28th of February 2023;
3/ with reference to the VAT loan – on the day which falls 24 (twenty four) months after the date of the first use of the VAT loan.
The main collaterals provided by the Borrower in order to guarantee the repayment of the loan and any amounts due to the Bank are:
1/ First Ranking Mortgage at the amount of EUR 37,500 thousand established by the Borrower on the Land in the form of a notarial deed to the benefit of the Lender;
2/ Statements of Execution;
3/ Power of Attorney to Borrower"s Bank Accounts;
4/ Agreement on Assignment of Rights i.e. an agreement entered into by the Borrower (as the assignor) and Lender (as the assignee) in order to secure the Lender, concerning the assignment of rights (present and future ones) of the Borrower under the relevant Project Agreements (with the exception of the agreements with the Legal Adviser and Technical Adviser), all Lease Agreements and Insurance Policies;
5/ Guarantee Agreement, i.e. an agreement concluded by the Borrower, the Issuer and the Lender for the period ending with the complete repayment of the Tranche A (including the Conversion) which obliges the Issuer to provide a guarantee with regard to covering any excess Project construction costs as defined in the budget as well as guarantee its support of the Project and timely completion of the Project;
7/ Registered and Financial Pledge Agreements: on stocks, shares, accounts and debts of the General Partner;
8/ Each power of attorney given by the Borrower to the Lender in connection with Financial Documents;
The Agreement has been considered significant on the basis of the Issuer"s equity criteria. Legal basis: §5 (1.3) and §9 of the Regulation of the Minister of Finance (Journal of Laws No. 33 item 259) of the 19th of February 2009 concerning current and periodical information published by issuers of securities and terms of recognizing as equivalent information required by laws of a non-Member State.