Current report 19/2016

Legal basis: Art. 17, par. 1 of MAR – confidential.

The Management Board of the Company named J.W. Construction Holding S.A. with its registered office in Ząbki (“the Company”) hereby informs that on 5 December 2016, it concluded with Hochtief Polska S.A. with its registered office in Warsaw, “the Contractor” two agreements by the virtue of which the Company instructed the Contractor - as part of the general performance - to construct two residential building units with underground garages in Warsaw, ul. Kasprzaka (Bliska Wola investment), stages EM and EK, according to the following parameters:

EM Stage

The Contractor's remuneration for the performance of the subject of the agreement was fixed as a lump sum in the net amount of PLN 110,207,209, to which VAT will be added at the applicable rate.

The subject matter of the agreement is the comprehensive execution - as part of the general performance - of the construction of a unit o multi-family residential buildings, which constitutes the EM Stage of the Bliska Wola investment, in the region of al. Kasprzaka and al. Prymasa Tysiąclecia, excluding the ground works, along with obtaining the use permit.

Date of conclusion of the agreement: 5 December 2016

Deadlines: the completion of works - in accordance with the agreement should take place on 20 January 2019, but the Company will perform the earthworks by 1 September 2017 on its own.

Contractual penalties:

The Company shall have the right to be paid the following contractual penalties:

- in the amount of 0.05% of the contract value, for each day of delay for any delay in the execution of the stage of the subject matter of the agreement within the time limit specified therein;

- for any delay in the removal of defects found at the final acceptance or during the warranty period, in the amount of 2% of the net value of the element in which the defect occurred, for each day of such delay counted from the day following the day on which the defect was supposed to be removed, no less than PLN 3,000.00 per day;

- in the amount of 10% of the contract value in the event of withdrawal from the contract for reasons attributable to the Contractor.

For the benefit of the Contractor in the amount of 10% of the value of unfinished works in the event of withdrawal from the contract for reasons attributable to the Company.

The limit of contractual penalties charged by the parties shall not exceed 10% of the net value of the contract.

The other terms and conditions do not differ from those commonly used in such contracts.

EK Stage

The Contractor's remuneration for the performance of the subject of the agreement was fixed as a lump sum in the net amount of PLN 67,697,012, to which VAT will be added at the applicable rate.

The subject matter of the agreement is the comprehensive execution - as part of the general performance - of the construction of a unit o multi-family residential and service buildings, which constitutes the EM Stage of the Bliska Wola investment, in the region of al. Kasprzaka and al. Prymasa Tysiąclecia, excluding the ground works, along with obtaining the use permit.