Reports

The Management Board of HELIO S.A. („the Debtor”) hereby informs abort concluding on 11 August 2008 two credit agreements with Fortis Bank S.A. Polska with its registered office in Warsaw (“the Bank”). On the basis of the agreements the Bank granted HELIO S.A. two credits in the following form:
1. A non-renewable credit in the amount of PLN 14,000,000 intended for financing up to 80% of the net costs of carrying out an investment based on preparation of the new registered office of the Debtor including purchasing a real estate, renovation of the warehouse buildings and construction of office and warehouse buildings situated in Brochów near Sochaczew (“the Investment”) with the reservation that the financing granted by the Bank shall not include purchasing the real estate. The credit shall be made available pursuant to the Debtor’s written dispositions, submitted in the bank along with invoices documenting the expenditures incurred in accordance to the intended use of the credit equal to the net amounts resulting from the invoices and onto the accounts indicated in the invoices. The grace period of paying off the credit has been established until 30 October 2009, whereas the crediting period has been established until 29 June 2018.
2. A credit on the current account up to the maximum amount of PLN 5,000,000. The credit shall be made available until 7 August 2009.
From the amount of the used credit both on the current account as well as in case of the non-renewable credit, the Bank shall charge interest in accordance with the 1 M WIBOR fixed interest rate plus the Bank’s commission. The interest shall be payable by the fifth day of the month, whereas the last interest installment shall be required to be paid on the last day of crediting.
The following collaterals have been established for the liabilities:
1. Agreements on a non-renewable credit:
a. an ordinary mortgage in the amount of PLN 14,000,000 for securing the principal claim and a deposit mortgage in the amount of PLN 3,150,000 for securing the acessory claims, including the interest, established for the real estate to the benefit of the Bank and being the Debtor’s property, along with an assignement of the rights from the insurance policy of the real estate, in the scope of insurance of the investment carried out on it, during its realization and by an assignement of the rights to the insuarnce of the real estate in the scope of insurance of the buildings against fire and other fortuitous events following its realization
b. the Debtors declaration on submission to execution to the benefit of the Bank pursuant to art. 97 of the Act of 29 August 1997 on the Banking Law (Journal of Laws of 2002 no. 72 item 665 as amended)
2. Credit Agreements on the current accout:
a. an agreement on the transfer of ownership for security purposes of the inventory stocks being the Debtor’s property in the amount not less than PLN 10,000,000.00 along with an assignment of the insurance policy in the scope of inventory stock insurance in the amount not less than PLN 8,000,000
b. the Debtor’s statement of submission to enforcement procedures pursuant to art. 97 of the Act of 29 August 1997 on the Banking Law (Journal of Laws of 2002 no. 72 item 665 as amended)

The provisions of the agreements shall not assume contractual penalties whose maximum amount may exceed the equivalent of at least 10% of the value of this agreement or the equivalent of at least EUR 200,000 expressed in PLN. The remaining terms of the agreements shall not diverge from the terms commonly applied in agreements of this type. The fundamental criterion for recognizing the agreements significant is the total value of the subject of these agreements amounting to at least 10% of the Company’s revenues from sales in the last four quarters.