Jadran d.d. — M&A Activity 2018

Jul 2, 2018

WORKERS' COUNCIL JADRAN d.d. CRIKVENICA Bana Jelačića 16 51 260 Crikvenica bane2109@gmail.com

Crikvenica, 29 June 2018 Registered at 08:30 hours

- Mr. Goran Fabris; President of the Management Board of Jadran d.d. Crikvenica - Mr. Karlo Čulo; Member of the Management Board of Jadran d.d. Crikvenica

SUBJECT: Reply from the Workers' Council of Jadran d.d. Crikvenica

Dear Mr. Farbris and Mr. Čulo,

Regarding the written letter sent by the Management Board of the company Jadran d.d. Crikvenica, received by the President of the Workers' Council of Jadran d.d., Crikvenica, the members of the Workers' Council of Jadran d.d. Crikvenica cannot give a valid opinion on the type and the amount of the compensation since they do not have the adequate level of expertise for this type of economic issues, but they can state their opinion that, regarding such decision, all former and current workers and other creditors owning the shares may make their personal decisions whether or not they want to sell their shares at the offered price, so we hereby ask you to deliver the Elaborate to us for that purpose!

We quote: "The Bidders in their offer express their intentions in terms of future business operation as stated: the primary objective of the foreseeable development model of the Bidders is to complete the process of improving the existing and developing new capacities of the Target Company and to carry out the restructuring and development process with the aim of creating complete business conditions for achieving greater efficiency, good financial results and ultimately greater value of the Target Company."

Also, our opinion is that all workplaces in the Company should and must be preserved.

We quote: "The Management Board of the Target Company estimates that the legal and labour status of workers in the Target Company will remain the same."

Furthermore, we hope and expect that the status of the workers will improve in the near future with regard to future collective bargaining between the Employer and the Trade Union.

Best regards,

Branislav Dimitrijević President of the Workers' Council Jadran d.d. Crikvenica

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Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: uprava@jadrancrikvenica.hr

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: marketing@jadrancrikvenica.hr

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

The share capital amounts to HRK 491,316,690.00 paid in full divided into 49,131,669 ordinary shares with a nominal amount of HRK 10,00 each. The Company is registered in the Court Registry of the Commercial Court in Rijeka under MBS: 040000817 Predsjednik Uprave: Goran Fabris, Member of the Management Board: Karlo Čulo, President of the Supervisory Board Tomislav Kitonić