Nov 2004, Translation of the Sarasa agreement

Translation of the Sarasa agreement

COLLECTIVE AGREEMENT
Number: 11/PP-PB/10/04

(Translated courtesy WRC)

On Monday, the eleventh of October, in the year two thousand and four (11-10-2004), we the undersigned:

Name : JAP SANJAYA
Employment : representative of the Stock Holders of the HONGKONG SHANGHAI BANK TRUST
Address : Tiang Bendera St. III No.50 West Jakarta

In this agreement he can take action for and in the name of the Stock Holders of the HONGKONG SHANGHAI BANK TRUST; the party that will henceforth referred to as the FIRST PARTY.

1. Name : JOKO WITONO
Employment : former employee of PT.Sarasa Nugraha Tbk, Union President SPTP PT.Sarasa Nugraha Tbk.

2. Name : JOKO RAGIL
Employment : former employee of PT.Sarasa Nugraha Tbk, Member of Union Training and Education Division SPTP PT.Sarasa Nugraha Tbk.

3. Name : AGUS WIYONO
Employment : former employee of PT.Sarasa Nugraha Tbk, Humanitarian Division SPTP PT.Sarasa Nugraha Tbk.

4. Name : SAFEI
Employment : former employee of PT.Sarasa Nugraha Tbk, Member of Union Training and Education Division SPTP PT.Sarasa Nugraha Tbk.

5. Name : TRIYATNO
Employment : former employee of PT.Sarasa Nugraha Tbk Member of Union Training and Education Division SPTP PT.Sarasa Nugraha Tbk.

6. Name : SISWOYO
Employment : former employee of PT.Sarasa Nugraha Tbk selaku Member of Advocacy Division SPTP PT.Sarasa Nugraha Tbk.

7. Name : NURDIN
Employment : former employee of PT.Sarasa Nugraha Tbk selaku Member of Advocacy Division SPTP PT.Sarasa Nugraha Tbk.

In this agreement these former employees represent all former employees of PT.Sarasa Nugraha Tbk. and will be referred to as the SECOND PARTY.

In the effort to resolve the problem of the Termination of Employment of 1.000 (on thousand) people from PT.Sarasa Nugraha Tbk Balaraja Kabupaten Tangerang the FIRST PARTY and the SECOND PARTY have engaged in deep negotiations and discussions, and have thus come to agreed on the following:

1. The FIRST PARTY will reinstate approximately 800 (eight hundred) people from the group of former PT.Sarasa Nugraha Tbk employees. The people will be rehired as new employees [zero seniority], and will undergo a 3 month trial period. Those that pass this trial period successfully will then be hired as permanent employees.

2. The FIRST PARTY will pay the employees that are not continuing on, and those who do not pass the 3-month trial period 2 (two) times the Tangerang Regional Minimum Wage (UMK) of 2004. [The UMK Tangerang of 2004 is Rp 660,000/ month; times two (x2) that comes to = Rp 1,320,000 ($155 USD).]

3. The FIRST PARTY will pay returning employees Rp. 250.000 (two-hundred and fifty thousand rupiah) per person.

4. The FIRST PARTY will compensate all employees for any unused annual leave from the calendar year 2003.

5. The payments of items 2, 3, and 4 will be made by the FIRST PARTY to the SECOND PARTY in accordance with the following schedule: from October 13 to October 20, 2004. Payment will take place at the Police Department of Balaraja, Tangerang Region.

6. The FIRST PARTY will restart the operations of the company according to the following schedule:

a. The Officers of SPTP will deliver the list of names of employees who wish to return to work to the management team by no later than November 10, 2004.
b. Staff recruitment will take place between the 22 and 30th of November, 2004.
c. Operational preparations will take place between the 1 and 6 of December, 2004.
d. Final operational alignment will take place December 7 to 30, 2004.
e. By the 2nd of January, 2005 the company should be operating at full capacity again.
f. Employees that wish to return must provide Management with a new work application and the following documentation attached:
- Photocopy of one's KTP [national id card of Indonesia]
- 2 passport photos that are 2x3cm, and 2 more that are 3x4cm
- A certificate stating that one is in good health from a doctor

7. This Collective Agreement is part of and cannot be separated from the Collective Agreement made between PT.Sarasa Nugraha Tbk Management and the officers of SPTP on the 11th of October, 2004, Number SRS/11/10/04 dated 11 October 2004.

If any disagreements arise during the implementation of this Collective Agreement the FIRST PARTY and SECOND PARTY will resolve them through negotiations and a unanimous decision. If a unanimous decision cannot be made the FIRST PARTY and SECOND PARTY agree to take the dispute to the National Court in the Tangerang Region.

With that, this Collective Agreement was made through negotiations and unanimous agreement, without force, influence, or pressure from any party, and was signed by the two parties as described above.

[signatures]

SECOND PARTY, FIRST PARTY

1. JOKO WITONO JAP SANJAYA
Representative of the Company
[he doesn't state which company specifically]
2. JOKO RAGIL
Witnessed by
3. AGUS WIYONO
4. SAFEI YULIANA NATA
Representative of PT.SRSN, Tbk
5. TRIYATNO
6. SISWOYO DAVID HARYANTO
Wakil Investor Baru
7. NURDIN

COLLECTIVE AGREEMENT
Number: SRS / 11 / 10 / 04

On Monday, the eleventh of October, in the year two thousand and four (11-10-2004), we the undersigned:

Name : YULIANA NATA
Employment : Director of Operations PT.Sarasa Nugraha Tbk
Address : Graha Kencana Suite 9 A Jalan Raya Perjuangan Kebon Jeruk
Jakarta Barat

In this agreement she can take action for and in the name of PT.Sarasa Nugraha Tbk; the party that will henceforth referred to as the FIRST PARTY.