PT Ciputra Development Tbk And Subsidiaries

PT CIPUTRA DEVELOPMENT Tbk AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)For Nine Months Ended 30 September 2006 and 2005(In Rupiah)25. SIGNIFICANT AGREEMENTSa. Based on a joint operation agreement in 1996 and its latest amendment in 2003, entered into by andbetween PT Bumiindah Permaiterang (BIPT), a subsidiary of PT Ciputra Surya Tbk (CS), and PerumPerumnas (Perumnas), both parties agreed to engage in land acquisition, construction, marketing and salesof residential and commercial buildings in a land area covering approximately 115 hectares located atLakarsantri, Surabaya, whereas the location permit is obtained by Perumnas. BIPT, through CS, will providea land area approximately 47.92 hectares, and the rest will be provided by Perumnas. The construction,marketing and sales will be conducted by CS. As compensation, CS agreed to pay 15.14% of the proceedsfrom the minimum sales to Perumnas.Based on Fourth Amendment of the agreement dated 30 July 2003, effective from 31 December 2003 to 31December 2005, both parties also agree to engage in acquisition, construction, marketing and sales of landlocated at the above mentioned area. In addition, the compensation rate has been changed to 24.423%.Amount paid to Perumnas for the nine months ended 30 September 2006 is amounting Rp 3,211,684,567.b. PT Dimensi Serasi, a subsidiary, entered into a joint venture agreement in 1993 with Liang Court Holdings,Ltd., Singapore, and International Image Engineering Co., Ltd., British Virgin Islands, to form 2 foreigninvestment joint venture companies (PMA). The first PMA formed, named PT Ciputra Liang Court, isengaged in the construction, development and management of the condominium and apartment complexlocated at Prof. Dr. Satrio Street Kav.1, Jakarta. The second PMA company has not been established up to30 September 2006.c. CSN and CSM, the subsidiaries, entered into management and promotion agreements with Swiss PacificB.V. (SP), the Netherlands, and Club and Hotel International Management Company B.V. (CHIC), theNetherlands. As compensation, CSN and CSM agreed to pay SP, a fixed and incentive hotel managementcoordination fee equivalent to 0.5% of the gross revenues and 1.5% of the gross operating profit,respectively. In addition, CSN and CSM also agreed to pay CHIC a fixed and incentive hotel marketing andservice coordination fee equivalent to 2.5% of the gross revenues and 6% of the gross operating profit,respectively.Starting from 1 August 2005 SP transferred its rights and obligations to PT Swiss-Bellhotel InternationalIndonesia. Meanwhile, CHIC transferred its right and obligations to CHIC Limited, British Virgin Island, on 1November 2005.d. Based on a joint operation agreement dated 25 November 2004, entered into by CS and PT Taman Dayu(TD), both parties agree to cooperate and to develop the Taman Dayu project, located in Pandaan, EastJava. CS, among others, will organize and perform the management, operation, marketing and financialaspects of the project. Whereas, TD has an obligation to provide land which ready to be developed. Therevenue sharing is agreed at net selling price of land net of 2% commission. Expenses related on thosemarketing activities are borne by CS.26. DEBTS SETTLEMENT PLANThe Company had submitted the Suspension of Payment (PKPU) for certain debts to Commerce Court at theDistrict Court of Central Jakarta on 28 April 2005, which was approved by the shareholders on 12 January 2005.The principal amount of the debts is as follows (see Note 12):Type of Debt Amount (USD) CreditorGuaranteed Floating Rate Notes (FRN) 100,000,000 FRN Holders*Transferable Loans Certificate Facility (TLCF) 25,000,000 TLCF Holders**Swap Liability 32,000,000 Hillview Enterprises Inc., BVIDivestment Payable 23,127,590 Hillview Enterprises Inc., BVIDivestment Payable 1,155,748 Marco Polo Capital Ltd., BVITotal 181,283,338* The holders of the FRN are Rollrick Holding Ltd., Mediaplus Investment Ltd. and Standard Chartered Bank (including theirnominees) in the amount of USD 35 million, USD 30 million and USD 35 million, respectively.** The holders of the TLCF are Asiamark Pacific Ltd., Finec Securities Ltd. and Fine-C Capital Group Ltd. in the amount ofUSD 10 million, USD 10 million and USD 5 million, respectively.30