AGREEMENT FOR THE SALE OF THE PROPERTY

Legal basis

Art. 56.1.2 of the Act on Public Offering - current and periodic information

The Management Board of Rank Progress S.A. having its registered seat in Legnica (the 'Issuer') reports that on 11 December 2015, a subsidiary undertaking, Progress XIV Sp. z o.o. S.K.A. having its registered seat in Warsaw (the 'Progress XIV', 'Seller') represented by the general partner, Progress XIV Sp. z o.o. concluded with 'LEROY - MERLIN INWESTYCJE' Spółka z o.o. having its registered seat in Warsaw (the 'Buyer') an agreement for the sale of undeveloped properties (the 'Agreement') located in Mielec with a total area of 2.87 ha for the price of PLN 15,500,000.00 net.

Pursuant to the agreement, the sale price will be paid as follows:

- no later than by 14 December, the Buyer will pay to the Seller the amount of PLN 5,000,000.00,

- PLN 2,000,000.00 - within 7 days after the Buyer has purchased the land, which as at the date of the publication of this report remains in the possession of the State Treasury,

- the Buyer will pay PLN 8,500,000.00 within 7 days after the fulfillment of the conditions specified in detail in the Agreement, which include primarily obtaining a final decision on the building permit in the administrative procedure by the Buyer.

The agreement contains conditions that determine the events causing the need to repurchase the said property by the Seller, if any of the events described in detail in the Agreement occurs not later than by 30 September 2016.

The Agreement contains no provisions that would allow calculation of contractual penalties, whose the total value amounts to not less than EUR 200,000.

Other provisions of the agreement are similar to standard practices in agreements of this kind.

The value of the agreements exceeds 10% of the Issuer's equity, which is the criterion for recognizing the agreement as significant agreement.

Concurrently, the Issuer reports that the agreement, of which it informed in its Current Report No. 21/2015 of 2 March 2015 concerning the construction of the DIY store in Mielec together with technical infrastructure will not be realized.

Legal basis

Art. 5.1.3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for recognizing as equivalent the information required by the law of a non-member state.

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