SALE OF ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2013

SALE OF ACCOUNTS RECEIVABLE

2 SALE OF ACCOUNTS RECEIVABLE

As of March 31, 2013 the Company was a party of the following Factoring Arrangements:

• The agreement with ING Commercial Finance Polska (ING Polska) signed in June 2011. There is no financing limit in this agreement.

• The agreement with Bank Handlowy w Warszawie Spółka Akcyjna (Bank Handlowy) signed in January 2012. There is no financing limit in this agreement.

• The agreement with Bank Zachodni WBK S.A signed in August 2012. There is no financing limit in this agreement.

• The agreement with RBS Bank signed in January 2013. There is no financing limit in this agreement.

• The agreement with RBS Bank for the sale up to 60 million Polish zlotys signed in March 2013.

• The agreement with ING Polska signed in February 2013. There is no financing limit in this agreement.

In addition, in the first quarter 2013 the Company was a party of the agreement with ING Polska signed in February 2011 for the sale up to 290.0 million Polish zlotys. The limit was finally reduced to 170 million Polish zloty. The agreement expired at the end of February 2013. Following the expiration of this factoring agreement, the Company signed a new factoring agreement with ING Polska in February 2013. As of March 31, 2013 there was no outstanding balance in relation to the expired agreement.

All of the above factoring arrangements, except for the agreement with ING Polska signed in February 2011, are factoring agreements without recourse. The Company has no continuing involvement with the sold no-recourse factoring.

For the three months ended March 31, 2013 and 2012, the Company sold receivables in the amount of 375.4 and 359.7 million Polish zlotys, respectively ($119.3 and $111.5 million), respectively and recognized a loss on the sale in the statement of operations and comprehensive income in the amount of 3.2 and 3.6 million Polish zlotys ($1.0 and $1.1 million), respectively. As of March 31, 2013, there was no balance of financing obtained through factoring. As of March 31, 2013, the Company did not use financing through factoring with recourse.

As of March 31, 2012 the Company was a party of the following Factoring Arrangements:

• The agreement with ING Polska signed in February 2011 for the sale up to 290.0 million Polish zlotys. As of March 31, 2012 the limit was reduced to 220 million Polish zloty.

• The agreement with ING Polska signed in June 2011. There is no financing limit in this agreement.

• The agreement with Bank Handlowy signed in January 2012. There is no financing limit in this agreement.

All of the factoring arrangements existing as of March 31, 2012, except for the agreement with ING Polska signed in February 2011, were factoring agreements without recourse. The Company has no continuing involvement with the sold no-recourse factoring.

As of December 31, 2012 the Company was a party of the following Factoring Arrangements:

• The agreement with ING Commercial Finance Polska (ING Polska) signed in February 2011 for the sale up to 290.0 million Polish zlotys. The limit was finally reduced to 170 million Polish zloty.

• The agreement with ING Commercial Finance Polska (ING Polska) signed in June 2011. There is no financing limit in this agreement.

• The agreement with Bank Handlowy signed in January 2012. There is no financing limit in this agreement.

• The agreement with Bank Zachodni WBK S.A signed in August 2012. There is no financing limit in this agreement.

All of the factoring arrangements existing as of December 31, 2012, except for the agreement with ING Polska signed in February 2011, are factoring agreements without recourse. The Company has no continuing involvement with the sold no-recourse factoring.

As of December 31, 2012, the total balance of financing obtained through factoring amounted to 126.1 million Polish zlotys (approximately $40.7 million). As of December 31, 2012 the liabilities from factoring with recourse amounted to $8.6 million Polish zlotys ($2.8 million) and were included in the short term bank loans in the balance sheet. Corresponding receivables from factoring with recourse were presented under accounts receivable in the balance sheet.