TRANSACTIONS WITH RELATED PARTIES

parties of the company or related parties of members of Board of Directors, members of Board of Commissioners or major shareholders shareholders who have at least 20 of the company’s shares either directly or indirectly of the company. Conflict of interest is defined as the difference between the company’s economic interests and personal economic interests of members of Board of Directors, Commissioners or major shareholders which might cause losses to the company. To do transactions with related parties, the Company is required to iannounce the information to the public and submit proof of announcement and supporting documents to Bapepam-LK within 2 two working days after the transaction, where the announcement among others will contain the summary of report of independent appraiser which is registered in Bapepam-LK. Pursuant to regulation of Bapepam-LK No. IX.E.1. concerning Affiliate Transactions and Conflict of Interest of certain transactions, some related parties transactions only to be reported to Bapepam-LK no later than 2 two working days after the transaction without report of independent appraiser registered in Bapepam-LK. To enter into conflict of interest transactions, the Company is required to obtain approval of majority of independent shareholders, except for transactions with conflict of interest which is exempted from the obligation to obtain approval of independent shareholders as referred to in regulation of Bapepam-LK number IX.E.1 point 3 letter c. The following is the detail of type of transactions with related parties: No . Name of Agreement The Parties Content of Agreement Validity Period Nature of Agreemen t Value of Transact ion Terms and Conditions 1 Basic Agreem ent of Sale and Pur chase of Coal Purinusa and t he Company Supply of Coal Sept em ber 30, 2010 – Sept em ber 30, 2012 Sust ainabl e Rp 336,907,288,6 00 - Purinusa as t he Pur chaser, including it s subsi diaries; - The Company is t he Seller, including it s subsi diaries; - Sale and purchase is based on Pur chase Order f rom t he Pur chaser w hich w ill be realized in derivat ive cont r act bet w een t he par t ies 2 Consort ium Agreem ent DSS and The Company Bidding Consort ium of Pow er Plant Project June 16, 2010 – com plet ion of pow er plant project has been operat ed Sust ainabl e Rp 125,000,000,0 00 - DSS is appoint ed as Chief of t he consort ium; - The part ies w ill est ablish a joint comm erciall y vent ur e in charge and responsible for running t he pow er plant project act ivit ies w it h t he St at e Elect ricit y Company. 3 Credit Agreem ent The Company and DSS Loan from DSS w it h ceiling of US 100,000,000 M arch 24, 2011 – Decem ber 31, 2011 Can be ext ended if r equired M aximum Facilit y Amount of US100,000,0 00 - The Company agrees t o bear int erest at 8 per annum t hat must be paid mont hly. 4 Rent al Agreem ent KIM and PT Royal Orient al Room rent al in Plaza BII, Tow er III, Basem ent I Decem ber 5, 2008 – Decem ber 4, 2011 Sust ainabl e US941 mont h - No service charge - Elect ricit y consum pt ion cost of Rp1,250 kw h 5 Rent al Agreem ent KIM and PT Royal Orient al Room rent al in Plaza BII, Tow er II, 27 t h Floor August 11, 2009 – August 10, 2012 Sust ainabl e US20,440 mo nt h USD13x 1,572.274 m2 - KIM w ill bear service charge of US7.5 and overt ime charge for elect ricit y and AC 6 Rent al Agreem ent BIB and PT Royal Orient al Room rent al in Plaza BII, Tow er II, 7 t h Floor Novem ber 10, 2009 – Novem ber 9, 2012 Sust ainabl e US13,250 mo nt h USD13x 1,572.274 m2 - BIB w ill bear service charge of US7.5 and overt ime charge for elect ricit y and AC 7 Convert ible Bond Agreem ent M AL and BKES Issuance of Convert ible Bonds by M AL April 25, 2011 – April 24, 2012 Can be ext ended if r equired Rp. 20,000,000,00 - These bonds bear int erest at 12 per annum; - BKES, before t he expiry dat e, is ent it led t o convert t he bond eit her some or ent ire value of t he bonds. 8 Fact oring Agreem ent TKS and PT Sinar M as M ult ifinan ce Provision of fact oring M ay 23, 2011 – M ay 23, 2012 Can be ext ended if r equired USD1,000,000 Int erest Rat e: 9.5 per annum Provision: 0.5 of ceiling per annum is paid in advance 9 Fact oring Agreem ent The Company and PT Sinar M as M ult ifinan ce Provision of Fact oring M ay 6, 2011 – M ay 9, 2012 Can be ext ended if r equired Ceiling of Rp70,000,000, 000 Int erest Rat e: 13.5 per annum Provision: 0.5 of ceiling per annum is paid in advance 10 Credit Agreem ent The Company and PT Bank Sinarmas Tbk. Issuance of SKBDN w it h value of Rp 45,000,000, 000 April 5, 2011 – April 19, 2012 Can be ext ended if r equired M aximum Facilit y Amount of Rp45,000,000, 000 Commission: 0.125 min. Rp250,000 Guarant ee: Time deposit at 100 of issued SKBDN value 11 Agreem ent of usage and maint enanc e of access roads for coal t r anspor t at i on PT Wirakarya Sakt i, PT Andalan Nusant ara Sejaht era, KIM dan it s subsidiari es KIM and it s subsi diaries are ent it led t o use t he access roads in HPHTI area of PT Wirakarya Sakt i along t he 126.61 km. August 1, 2011 - as long as KIM and it s subsidiaries conduct mining act ivit ies or during t he validit y of HPHTI of PT Wirakarya Sakt i, w hich one ends t he sooner Sust ainabl e USD1.3 M T, min 60,000 M T - KIM and it s subsi diaries w ill pay t he cost of r oad maint enance t o t he PT Andalan Nusant ara Sejaht er a as t he par t y t hat perf orm s road maint enance in t he area of PT Wirakarya Sakt i - Road M aint enance cost s w ill be review ed by PT Wirakarya Sakt i every 6 mont hs or every price increase of maint enance mat erial exceeds 25 of previous mat erial price 12 Agreem ent of usage and maint enanc e of access roads for coal t r anspor t at i on act ivit y and ot hers PT Wirakarya Sakt i, PT Andalan Nusant ara Sejaht era, KIM and it s subsidiari KIM and it s subsi diaries are ent it led t o use t he access roads in t he HPHTI area of PT Wirakarya Sakt i along From t he dat e of t he plan t o use t he access roads as st at ed in formal let t er of not ice of KIM and it s Sust ainabl e KIM and it s subsidiaries w ill pay t o PT Andalan Nusant ara Sejaht era access road maint enance t echnical - KIM and it s subsi diaries are obliged t o conduct access roads maint enance and saf et y guar ds - KIM and it s es t he 102.59 km subsidiaries t o PT Wirakarya Sakt i up t o and as long as KIM and it s subsidiaries conduct coal mining act ivit ies or during t he validit y of HPHTI of PT Wirakarya Sakt i, w hich one ends t he sooner consult at ion service cost s of Rp 50,000,000 k m year or Rp. 5,129,500,000 year subsi diaries are obliged t o responsible for t he ent ire access roads maint enance cost s, access roads upgrading modificat ion i nfrast ruct ure addit ion cost s and access roads securit y guar ds cost s. 13 Cert if icat e of mot or vehicle insurance renew al Policy No.02.052.2 011.10622 BIB and PT Asuransi Sinarmas BIB insures Toyot a New Camr y 1.4 G A T 2007 February 2, 2011 – February 2, 2012 Sust ainabl e Coverage value of Rp.330,000,00 - The insurer shall set t le t he com pensat ion paym ent s w it hin 30 t hir t y calendar days since t he exist ence of a w rit t en agreem ent bet w een t he insurer and t he insured 14 Public Liabilit y Insurance No Polis BIB dan PT Asuransi Sinarmas Insurance against accident s, propert y February 15, 2011 – February 15, 2012 Sust ainabl e Coverage value of Rp100,000,00 - Covering event s ar ound t he w orld, w it h 24.400.2011 .00004 damage and advert ising liabilit y rest rict ions in t he Agreem ent 15 Direct or Officers Liabilit y Insurance No. Polis 90.400.2011 .00008 BIB dan PT Asuransi Sinarmas Insurance of current lat e r members of Board of Direct or s and Board of Commission ers February 15, 2011 – February 15, 2012 Sust ainabl e Coverage value of Rp35,000,000 - covering event s in t he region of RI - PT Insurance Sinarmas w ill not be liable for any loss suffer ed by t he individual or business ent it y t hat ow ns 24 or more of t he issued capit al, equit y, or payable of BIB 16 Vehicle st andard policy No. 02.052.2011 .50734 BIB and PT Asuransi Sinarmas BIB insures vehi cle BM W X5 3.0i A T SUV 2008 Grey August 31, 2011 – August 31 2012 Sust ainabl e Coverage value of Rp.875,000,00 - The insurer shall set t le t he com pensat ion paym ent s w it hin 30 t hir t y calendar days since t he exist ence of a w rit t en agreem ent bet w een t he insurer and t he insured 17 Sale and Pur chase Agreem ent BHBA-CAI BHBA purchase heavy 36 mont hs fr om t he M inut es of Can be ext ended if r equired Advance paym ent of USD670,304.4 - Purchase of heavy equipm ent s is equipm ent s w it h quant it y and specificat ion s st at ed in t he agreem ent Handover and set t lem ent 4 and set t lem ent w ill follow t he price in t he market done t hrough advance paym ent in inst allment for 36 mont hs - To secur e t he advance paym ent Inst allment , BHBA is w illing t o give a guarant ee of 5 t imes t he Advance Inst allment - Set t lement is done at Heavy Equipm ent ’s prevailing market price minus t ot al amount of advances t hat have been paid 18 Heavy Equipm ent s Rent al Agreem ent BHBA-CAI Rent of heavy equipm ent s of CAI 36 mont hs fr om t he M inut es of Handover Can be ext ended if r equired USD882,940 - CAI shall conduct maint enance and or reparat ion of t he heavy equipm ent s as long as t he agreem ent last s; - CAI shall provide spare par t s and or sufficient t ools t hat might support t he maint enance and or reparat ion of t he heavy equipm ent s - CAI shall provide t he heavy equipm ent s’ operat ors

14. LEGAL PROCEEDINGS INVOLVING THE COMPANY

The Company and its subsidiaries are not facing material cases either civil, criminal, bankruptcy, or arbitration cases in the Indonesia National Board of Arbitration BANI, or Industrial relations cases in the Industrial Relations Court or taxation cases that can materially affect the business operations of the Company and its subsidiaries, other than cases stated below. As of the date of publication of this prospectus, BIB was recorded in a civil case which at present has been final and binding as follows: a. RCI and BIB were recorded in a civil case each in its capacity the defendant II and the defendant III against GE Haryanto as the plaintiff. On June 23, 2008, the Central Jakarta District Court through the Decision on Case No.363PDT.G2007PN.JKT.PST adjudicated to reject the plaintiff’s claims. Furthermore, the Jakarta High Court by Decision No. 608PDT2008PT.DKI, dated January 12, 2009 decided to strengthen the Central Jakarta District Court Decision No.363PDT.G2007PNJKT.PST dated June 23, 2008 which were filed the appeal. This civil case has been decided at the last levelcassation by the Supreme Court by Decision No. 1680.KPDT2009, dated March 18, 2010 rejected an appeal from the plaintiffcassation applicant; and b. The PKP2B holders including BIB through the Association of Coal Mining Indonesia “APBI” a pplied for judicial review to the Supreme Court of Regulation Minister of Finance No. 95PMK.022005, dated October 11, 2005 as amended by Regulation of Ministry of Finance No. 131PMK.0102005 dated December 23, 2005 which establishes coal as an object of export levies. The request has been decided at the first level District Court and the last level by the Supreme Court by Decision No.07PHUMTAHUN 2006, dated July 21, 2006 which basically won the APBI and states that the Regulation of Minister of Finance No. 131PMK.0102005, dated December 23, 2005 declared annulled by law and ordered the Minister of Finance to immediately revoke the regulation.