Reports

The Management Board of HELIO S.A. hereby informs that on 31.08.2015 HELIO S.A. (“Debtor”) concluded with Bank BGŻ BNP Paribas S.A. with its registered office in Warsaw, formerly of BNP Paribas Bank Polska S.A. (“the Bank”) an annex to an agreement of credit on the current account executed on 26.08.2009.

On the basis of the above mentioned annex the available credit limit in the current account was increased from PLN 5 000 000 to PLN 10 000 000 and thus the value of the agreement exceeded 10% of the Issuer’s sales for the last four quarters, so it is the basis for publishing this report

The credit was granted to finance the current operations of the Debtor. From the amount of the used 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, unless the credit is made available to another such period. On the basis of the above annex current availability period of the credit was fixed until 01.09.2016 and the margin was reduced relative to current .

The following collaterals have been established for the liabilities:
1. bail mortgage up to the amount of PLN 17 000 000 on third place on the property owned by the Debtor, located in Brochów, entered in the Land Register KW No. PL1O/00025890/0, with reservation that the mortgage will be established by changing the bail mortgage of PLN 8 300 000 in the third place on the property owned by the Debtor, located in Brochów, entered in the Land Register KW No. PL1O/00025890/0, the change pending the establishment of effective security in the form of the existing mortgage,
2. pledge on inventory stocks owned by the Debtor, with a total net value of not less than PLN 7 500 000 located in Finished Goods Warehouse and Packaging Warehouse in Brochów 119, 05-088, along with the assignment of rights from insurance policy,
3. the Debtor’s statement of submission to enforcement procedures pursuant to art. 97 of the Act of 29 August 1997 on the Banking Law.

The remaining terms do not diverge from the terms commonly applied in agreements of this type. The provisions of the agreements do not assume contractual penalties whose maximum amount may exceed the equivalent of at least 10% of the value of this agreement or expressed in the equivalent of at least EUR 200 000.

The fundamental criterion for recognizing the agreements valid is the total value of the subject of these agreements amounting to at least 10% of the amount of revenues from the Company’s sales recorded within the last four quarters of the year.