Investor relations

Report concerns:
Making a significant agreement

Report’s text:
Acting on the basis of § 5 sect. 1, point 3 of Minister of Finances Resolution dated on October 19th 2005 concerning the valid and periodic information conveyed by issuers of securities (Dz. U. dated on 2005, No. 209, poz. 1774) ("Resolution") J.W. Construction Holding S.A. with head quarters in Ząbki (“Company”) informs about making on August 30th 2007, an obligating agreement in form of notary’s act (“Notary Agreement”), according to its decision, 100 (one hundred) preliminary agreements made by the Company with Sawa Residential Fond Ltd. Company with headquarters in Warsaw (“Purchaser”) described in the current report of the Company no. 23/2007 dated on July 6th 2007 and no. 24/2007 dated on July 13th 2007. According to the above-mentioned preliminary agreements, parties were entitled to withdraw them in case of failing to make the Notary Agreement.

The subject of this Notary’s Agreement is Company’s obligation to make agreements obligating to build, prepare separated properties’ rights and sell to the Purchaser 100 (one hundred) accommodations and the same number of parking places in buildings being executed in scope of investment – "Górczewska Park II" in Warsaw at 181 Górczewskiej Street (together called “Accommodations”) for total price 70.605.235,73 PLN. Deadline for issuing these Accommodations to be accepted by the Purchaser is June, 30th 2010 but the condition for their issuing to be accepted is paying by the Purchaser the whole price for the benefit of the Company.

The Notary Agreement provide penalty fees in amount of 4,9% of the Accommodations’ prices in case of cancellation or retracting from the Agreements by: (a) Purchaser – in case there is Company’s delay and its reasons in introducing the Purchaser to Accommodations (delay exceeding 60 days) or delay concerns making obliging or disposing agreements (delay exceeding 14 days) and (b) by Company – when the Purchaser refuses to submit in agreements obliging or disposing announcements or power of attorney necessary for correct functioning and managing common parts, or, when the Purchaser’s delay in making disposing agreements exceeds 90 days from the day of the Accommodations acceptance by the Purchaser , or, when on the basis of reasons dependent on the Purchaser delay in accommodations acceptance exceeds 60 days, or, when the Purchaser’s delay in paying the whole price or its part exceeds 30 days. Parties didn’t decide possibility of claiming pretension in scope exceeding the penal fee.