Loan agreement of Issuer’s subsidiary

The Management Board of Echo Investment S.A. (hereinafter referred to as the "Issuer") hereby reports that on March 31st, 2014 a subsidiary of the Issuer, A4 BUSINESS PARK – "IRIS CAPITAL" SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ – SPÓŁKA KOMANDYTOWO-AKCYJNA with its registered office in Kielce (address: 36 Solidarności Avenue, 25-323 Kielce), the company files of which are kept at the District Court in Kielce, 10th Commercial Department of the National Court Register, entered in the Register of Entrepreneurs under the number KRS 0000445973 (hereinafter referred to as the "Borrower") and BNP PARIBAS BANK POLSKA SPÓŁKA AKCYJNA, with its registered office in Warsaw (address: 3 Suwak Street, 02-676 Warsaw), the company files of which are kept at the District Court for the capital city of Warsaw in Warsaw, 13th Commercial Department of the National Court Register, entered in the Register of Entrepreneurs under the number KRS 0000006421 (hereinafter referred to as the "Lender", the "Bank"), singed a loan agreement (hereinafter referred to as the "Agreement" or the "Loan"). The funds acquired on the basis of the Loan will be used in connection with the construction of stages one and two of the office complex under the name of "A4 Business Park Katowice" in Katowice (hereinafter referred to as the "Project") by the subsidiary of the Issuer. Subject to the provisions of the Agreement, the Bank provides the Borrower with:
-    monetary resources from the Construction Loan of EUR 24,821 thousand to be used to finance and refinance the construction costs of stages one and two of the Project;
-    monetary resources from the VAT Loan of PLN 5,000 thousand to be used to pay or refinance VAT due;
-    monetary resources from the Investment Loan of EUR 29,000 thousand to be used to refinance the debt resulting from money used in the Construction Loan. The loans shall bear interest: for the Construction Loan and the Investment Loan it is based on the EURIBOR interest rate and for the VAT Loan it is based on the WIBOR interest rate, plus an appropriate bank"s margin for all of them. The ultimate repayment dates of the monetary resources resulting from the Agreement are as follows:
- with reference to Construction Loan – 14 and 24 months from the day of concluding the Agreement, however, no later than 6 months from the Required Completion Date for Buildings 1 and 2;
- with reference to the VAT Loan – 24 months from the day of concluding the Agreement but no later than 6 months from the Required Completion Date for Building 2;
- with reference to the Investment Loan – no later than within 60 months from the Date of Conversion i.e. the repayment date of the Construction Loan with the Investment 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:
- the highest priority real estate mortgage on the Property of up to 150% of the total loan value in favour of the Lender;
- the highest priority registered pledge and financial pledge in favour of the Lender on all the shares in the General Partner"s share capital, of up to 150% of the secured liability;
- the highest priority registered pledges and financial pledges in favour of the Lender on all the shares in the Borrower"s share capital, of up to 150% of the secured liability;
- the highest priority registered pledge in favour of the Lender on all the chattel and rights constituting the Borrower"s enterprise, of up to 150% of the secured liability;
- the highest priority registered pledges in favour of the Lender on all transferable rights which the General Partner is entitled to as a result of its share in the Borrower"s company,  of up to 150% of the secured liability;
- the highest priority registered pledges and financial pledges in favour of the Lender on the receivables from Accounts, of up to 150% of the secured liability;
- a power of attorney granted by the Borrower which entitles the Lender to manage its accounts;
- assignment of receivables and rights resulting from e.g. all the Lease Agreements, Insurance Agreements, Construction Work Agreements, guarantees of proper execution concerning Construction Work Agreements, Project Management Agreements and others, by the Borrower in favour of the Lender;
- a debt subordination agreement;
- a guarantee agreement regarding a capital injection for the Borrower in the case of exceeding project costs;
- Borrower"s statements of execution. The agreement has been considered significant on the basis of the Issuer"s equity criteria. Legal basis: §5 (1.3) of the Regulation of the Minister of Finance (Journal of Laws no. 33 item 259) of February 19th, 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.