PT Summarecon Agung Tbk | Laporan Tahunan 2010 Annual Report

These consolidated financial statements are originally issued in Indonesian language.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2010 and 2009
(Expressed in thousands of rupiah, unless otherwise stated)
37. SIGNIFICANT AGREEMENTS AND COMMITMENTS
a. On October 21, 2010, the Company entered into a rental agreement with North Jakarta
International School Foundation (NJIS) for a land located in Kelapa Gading which is used as an
international school. The rental is Rp5,000,000 per year. This agreement is valid from August 14,
2010 until June 30, 2011.
b. On June 30, 2010, PT Summerville Property Management (SPM) entered into a property
management agreement with Perhimpunan Penghuni Rumah Susun Hunian The Summit Kelapa
Gading (PP Summit), where PP Summit appointed SPM to provide property management services
for The Summit Apartment. PP Summit agreed to pay a monthly fee as compensation,amounting
to Rp25,000. This agreement is valid for 3 years from July 2010 to June 2013.
c. On February 16, 2010, the Company and GO entered into a steel price agreement with PT Jakarta
Cakratunggal Steel Mills (CS) for steel purchases amounting to Rp60,392,400 for the Company
and Rp11,800,000 for GO.
d. On November 2, 2009, SH, a Subsidiary, entered into a Tradename and Trademark License
Agreement with Harris International Hotels wherein SH is authorized to use the name “Harris” for
“Harris Hotel Kelapa Gading”. SH agreed to pay royalties as compensation in accordance with the
terms of the agreement at rates up to a maximum of 1.50% of total revenues. This agreement is
valid for 10 years. Starting May 2, 2010, the hotel has commenced its operations.
e. On November 2, 2009, the Company and SH entered into a Hotel Management Consulting
Agreement with PT Tauzia International Management (Tauzia) wherein Tauzia is engaged as sole
and exclusive advisor and consultant to supervise, direct, manage and control the operations of
Harris Hotel Kelapa Gading. Tauzia is entitled to receive consultation fees as compensation
computed at rates up to a maximum of 8% of gross operating profit as defined in the agreement.
This agreement is valid for 10 years. Starting May 2, 2010, the hotel has commenced its
operations.
f. In May 2007, the Company entered into a Hotel Technical Assistance Agreement with Tauzia
wherein Tauzia will provide technical assistance for the construction of a hotel at a fee as agreed
in the agreement. This agreement is valid until the opening and commencement of operations of
the hotel.
g. On July 30, 2009, SCK entered into a joint operation, known as KSO Summarecon Lakeview
(KSO-SL), with TGS and LK. Under the terms of the agreement, the parties agreed to collaborate
to develop an area known as East Business Unit Land belonging to TGS. KSO-SL has been
appointed as the sole party to develop, sell and manage the East Business Unit Land for a period
of 10 years until April 29, 2019. The parties agreed that the net profits from the joint operation shall
be distributed to the parties in the following manner: TGS at 10%, LK at 45% and SCK at 45%.
However, loss from the KSO operations, if any, shall be borne by SCK and LK in their respective
proportions. Subsequently, on March 17, 2010, the parties agreed to change the percentages of
profit sharing to become TGS at 5%, LK at 40% and SCK at 55%.
h. The Company, BMS, GO and SCK entered into agreements with each of BCA, CIMB, OCBC, BII,
Permata, Panin and Mandiri whereby these banks agreed to provide housing and apartment loans
to the customers of the Company, BMS, GO and KSO Summarecon Serpong.
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