Korporacja Gosporadcza Effekt S.A.

Legal Proceedings Report • Apr 9, 2024

Report Content Receiptby the Issuer's subsidiary of a declaration of waiver of an annex to anagreement that is important for the subsidiary.ManagementBoard of the Korporacja Gospodarcza _quot;efekt_quot; S.A. with its registeredoffice in Kraków (hereinafter also referred to as: the _quot;Issuer_quot;) inreference to the information covered by current report No. 17/2019 ofJuly 3, 2023 on the conclusion by the Issuer's subsidiaries, i.e.:Tekst- Hotele S.A. and Lider Hotel Sp. z o. o. annexes to leaseagreements for hotel facilities located in Krakow at ul. Opolskaconcluded with Central Fund of Immovables Sp. z o. o. with itsregistered office in Łódź, hereby informs the public that today from itssubsidiary, Tekst Hotele S.A. (lessor), the Issuer received a statementfrom Central Fund of Immovables Sp. z o. o. (lessee) to avoid theeffects of the annex to the lease agreement signed on July 3, 2023,modifying the rules for settling the lease rent.Inthe submitted declaration, the Lessee invoked an error as to the legalact, further justifying the submission of the said declaration of March25, 2024, sent on March 28, 2024, that the rent rate offered by theLessor, under free conditions for carrying out the act, would not havebeen accepted by the Central Fund of Immovables Sp. z o. o. neveraccepted. It should be emphasized that at the same time such a defectivedeclaration comes from Central Fund of Immovables sp. z o. o., eventhough this company has so far provided legal services to companies fromthe Korporacja Gospodarcza _quot;Efekt_quot; S.A. Capital Group, as a professionalin this field and also advised on the conclusion of the questioned annex.TheIssuer emphasizes that after the initial analysis, following the Lessor,it cannot be concluded that the conclusion of an annex to the leaseagreement of October 1, 2019 on July 3, 2023 _quot;grossly violates theinterests of one of the parties to the legal relationship and,consequently, the principle of loyalty and honesty._quot; merchant andequivalence of benefits. In particular, the current director of thelegal department of Central Fund of Immovables sp. z o.o. activelyparticipated in determining its conditions, including the amount of thelease rent. legal advisor and financial director of the above-mentionedcompany together with the employees subordinated to them, i.e. personswho also took care of the interests of the company they represented,Central Fund of Immovables sp. z o.o.Ina separate letter, the lessee questioned the amount of rent for theperiod from July 2023 and indicated that, in his opinion, the amount ofrent was not correlated with the revenue potential of the leasedsubject, however, pointing out that, as a rule, he does not avoid payingthe rent and declared his will to settle the rent in accordance withwith the rules in force until July 2023, which seems unacceptable at themoment.Itshould also be noted that the Lessor also cited as a reason the lowerstandard of the hotel, which causes the risk of a lower amount of leaserent, and which should be considered valid, but in this case incorrect,because the rent determines a % of the value of revenues obtained fromthe hotel business conducted by the lessee in the subject of the lease,with provided that it cannot be lower than PLN 190,000 in the periodfrom July to December 2023; PLN 209,000.00 in 2024 and PLN 220,000.00 in2025. Assuming that this facility has 10 rooms more than the neighboringPremier Hotel with a significantly higher rent.Questioningthe factual and legal basis of the statement in question, the Issuerdemanded that the lessee present source documentation regarding thecircumstances from which the lessee derives legal consequences and,after analyzing them, it will immediately decide on further legal stepsto pursue the disputed receivables amounting to approximately PLN1,415,000.00. PLN and the termination of the agreement between theIssuer's subsidiary and Central Fund of Immovables Sp. z o. o. leaseagreement, or if the tenant's position turns out to be rational andeconomically justified, to conclude an agreement with the tenant,slightly reducing the rent while fully securing the interests ofTekst-Hotele S.A. and its owner, Korporacja Gospodarcza _quot;efekt_quot; S.A.Theabove information is made public due to the fact that the leaseagreement on the conclusion and amendments of which the Issuer informedin current reports is the basic agreement constituting a source ofincome for the Issuer's subsidiary, enabling the servicing of the loanobligation towards the bank Powszechna Kasa Oszczedności Bank PolskiSpółka Joint stock. It should be noted that the loan obligation issettled according to the schedule.