LEASE AGREEMENT

Residential Furnished Apartment

Senayan Residence, Tower 1 - 10
CIN JL. Patal Senayan I No. 5
Jakarta 12210

Lease Agreement is made in Jakarta on 7th February 2011 by and between:

Mr ALI MUNANDA SOEDARSONO, private person,residing in
Jakarta, Apartment Senayan Resudence, Tower I – 10 C 1 N JL. Patal
Senayan 1 No.5 by these present acting for himself, hereinafter to as the
first party of “the LESSOR”
and
Mr. Kim Bong Jo, PT. KRAKATAU POSCO,domiciled in Banten,
having its address at Jl. KH Yasin Beji No. 2, Cilegon, Banten,
Indonesia by these present acting for himself, hereinafter to as the
second party of “the LESSEE”
WHEREAS, LESSOR does hereby declare to have let and surrendered in
lease to LESSEE, and LESSEE does hereby declare to have rented and
accepted in lease from LESSOR, a combined dwelling apartment made of
brick walls, tiled floor, built of virtue of SHMSRS No. 2852/IX/1/Grogol
Utara, SHMSRS No. 2853/IX/1/Grogol Utara and covering about 197 M2 ,
located in JI. Patal Senayan I No.1, Jakarta 12210, Indonesia provided with
electricity power presently in the quantity about and the water supply
adequate for the Premises, with 2 telephone lines connection number (021)
30064525 and (021) 30064524.
This Lease Agreement has been affected and accepted on the following
terms and conditions.

Article 1
DURATION
1. The lease on the Premises shall be effective for period of 24 months
commencing from 26th February 2011 and therefore shall legally expire
on 25th February 2013 unless stipulates in otherwise in this agreement
2. LESSEE has the option to extend the lease on the terms, conditions and
rate to be mutually agreed upon, provided that LESSEE notifies
LESSOR of this intention in writing at least sixty (60) days before the
 expiration of the Lease Agreement, in which case the LESSEE has
priority to renew the contract over other interested third parties if any.
Without such a written notice in the due 60 days it will be deemed that
the LESSEE has no intention to extend the lease.

Article 2
RENTAL CALCULATION
RENTAL RATE
The basic monthly rental fee of the Premises is USD 2.550 (two thousand
and five hundred fifty United State Dollars), therefore the total rent for 24
consecutive months shall be in total USD 61.200 (sixty two thousand and
two hundred United State Dollars).
Rental calculation as follows:

Rental charge (24 Months ) : USD 61.200 (nett)

Down Payment paid on the 7 Feb 2011 : USD 2.550 (nett)

------------------------ (+)

Total USD 63.750 (nett)

Refundable phone and security deposit : USD 2.550 (nett)

(will be paid back at the end of contract)

----------------------- (-)

Total nett received by LESSOR : USD 61.200 (nett)

The transfer to be made in USD into the account of the LESSOR: without
any deduction of tar and bank charges to:

Account receiver/name : Andriani Kidarsa

Bank receiver/name : CITIBANK
Account number : 8000119990
The property is rented at furnished condition as attached.

Article 3
GUARANTEE

1. LESSOR guarantees LESSEE that he/she is the owner of the Premises

and that as long as this Lease Agreement remains in force and the
Premises are occupied by the LESSEE, LESSEE shall peacefully hold
and enjoy the said premises without interruption or disturbance by claim
from third parties, which claims to have preferential rights or join rights
and/or accommodation rights and/or any right whatsoever on the said
premises, therefore the LESSOR hereby holds the LESSEE harmless
from such claims and/or encumbrances, which shall be the responsibility
of and shall be borne and paid by the LESSOR.
2. LESSOR also guarantees LESSEE that as long as the Lease Agreement
remains in force, LESSEE can occupy the Premises legally.
3. In case there is a claim from any third party and the LESSEE is unable to
occupy or is obligated to surrender and leave the said Premises, the
LESSOR shall be obligated to immediately refund to the LESSEE the
total amount of rent paid by the LESSEE less the amount of monthly
rent for the Premises used and the LESSEE reserves the right to claim
other indemnities under the prevailing laws and regulations.
4. This Lease Agreement shall not be made void by LESSOR's death or the
death of the owner of the Premises and/or by a change of ownership in
any from whatsoever of the property to another party during the term of
this Lease Agreement.
5. This Lease Agreement shall not be terminated by the death or liquidation
of one of the parties and Lord by the mortgage of the said Premises to
any third party and or by the sale of the said Premises before the expiry
of the said lease, in which case the successor (s) in title of each party
shall abide by the conditions and provisions stipulate:: in this Lease
Agreement.
6. LESSEE guarantees to use the Premises solely for residential purposes.

Article 4
REPAIR AND
MAINTENANCE
1 Structural and other main repairs especially roof and outdoor wall
repair, maintenance of the water and electrical systems including with
water pump for swimming pool and repair of damage caused by
termites at the said Premises will be done by the LESSOR at its own
expense, while expenses for daily and minor repairs up to USD 100
(one hundred United State Dollar) are to be borne by theLESSEE. If
any major repair required caused by irresponsibility of the LESSEE
then all repair cost will be born by the LESSEE.
2 LESSOR guarantees that there are no leaks in the said premises and
that if it occurs. the LESSOR shall at any time immediately made the
necessary repair at its own expense.
3 In case the repairs mentioned paragraph 1 of the Article 4 are deemed
necessary by the LESSEE, the LESSEE shall inform the LESSOR by
written notice to:
- Name : Mrs. Andriani Kidarsa
- Fax Number : 6221-7266532
- Phone Number : 6221-7206993, 7221068
4. If and when the LESSOR fails to comply with LESSEE’s written
request within 2 (two) calendar days after receipt of such notice, the
LESSEE shall entitled to take the necessary steps to cause the
necessary repairs to be done at the expense of the LESSOR and the
LESSOR can not protest those expenses and will repay the LESSEE
forthwith upon presentation of bills or invoices evidencing such
expenses.
5. LESSEE shall have the right to make alterations, attach fixtures and
erect additions to the said premises, provided the same does not spoil
the original condition of said premises after being removed, which
fixtures, additions shall remain the property of the LESSEE.
6. LESSEE may install other household equipment and shall also have
the right to make any alterations and/or to the said Premises as may
be necessary for the purpose of installing such equipment.
7. Such installed equipment shall remain the property of the LESSEE,
and at any time this lease expires or terminates, such equipment may
be removed by LESSEE, which is under the obligation to restore the
said premises to its original condition, 'normal wear and tear excepted.
8. LESSEE will take good care of the premises and its fixtures and will
at its own expense carry out all repairs of small damages to the
 building to a maximal amount of USD 100 (one hundred United State
Dollars)
9. LESSEE, after obtaining written approval from LESSOR, may make
structural alterations and additions to the premises. The expenses of
such alterations shall be paid by the LESSEE.

Article 5
SERVICE
CHARGES
This rental price already include the service charges under the LESSOR's
responsibility.

Article 6
CAR PARKING

1 (one) reserved space will be provided as part of the terms of the lease.

Article 7
SUB - LEASE OR ASSIGNMENT

During the term of this 24 months, in the event that the LESSEE has no
further need fc§r the use of the premises; the LESSEE shall have the right to
assigr or sublease the premises under the conditions and the terms as
provided for in this Lease agreement, subject to prior written approval to the
LESSOR and its approval shall not be unreasonable withheld,

Article 8
UTILITIES
1. LESSOR represents that the premises are equipped with adequate
water supply, telephone line in good order and electricity power
supply from PLN of TBA KVA and LESSOR undertakes that
LESSOR will ensure that such utilities including wiring and
plumbing are maintained in proper and working order throughout the
lease period.
2. LESSEE shall be responsible for the payment of the monthly
subscription charges for the usage of electricity, water supply, TBA
 telephone connection including inter local and long distance calls
used by the LESSEE during the lease period until expiration of this
lease agreement.

Article 9
FORCE
MAJURE

1. In the event that the Premises are damaged by fire so that the
premises are permanently or temporarily not tenantable, LESSEE
shall have the option:
a. to terminate the Lease Agreement, there upon LESSOR will
refund to LESSEE the part of the advance rent not utilized
or
b. to continue the Lease Agreement in which case if in the
LESSEE's opinion the damage to the Premises is such as to
make it necessary for LESSEE to vacate the Premises until it
is properly repaired, LESSOR agrees that the Lease
Agreement shall be extended, rent-free for a period
equivalent to the period Premises are rendered unusable by
LESSEE.
2. If for any other reason(s), LESSEE vacates the Premises before the
expiration of the Lease Agreement, then LESSOR is not obligated to
refund any prepaid rent for the remaining unused portion of the lease
period.

Article 10
INSURANCE

1. LESSOR shall ensure the Premises against loss and or damage by fire
and other acts of GOD with a reputable insurance company covering a
sufficient amount and shall pay the relevant premium therefore.
2. The cost for such insurance should be borne by the LESSOR.
3. LESSEE is advised to insure his own property within the house
against fire, Cost or damage far any reason at his own expenses.
 Article 11
ENTIRE LEASE AGREEMENT
1. This Lease Agreement and the Exhibits A hereto constitute entire
agreement between the parties hereto and shall supersede replace any
verbal or written communication heretofore made between the parties
relating to the subject matter
2. Any amendments to this Agreement shall be made in -writing and
signed by the parties hereto.
3. All matters not provided for or adequately provided for this lease
Agreement shall be settled upon mutual agreement by bath parties.
4. At the expiration of this Lease Agreement, the LESSEE si1ail
surrender to LESSOR the said Premises duly vacated by the
occupants, LESSOR sha?I not be responsible, and shall not have the
obligation to provide far other premises to accommodate the
occupants.
5. !n the event at the expiration of the Lease Agreement, LESSEE does
not willing or prepared to surrender to the LESSOR the said Premises
in unoccupied condition, LESSOR is entitled and is granted full
power by the LESSEE to vacate the said Premises or have the same
vacated at the expense of the LESSEE.
6. Any notice under this Lease Agreement shall be in writing and shall
be considered as having given if delivered personally or by registered
email, postage prepaid to the following address:
LESSOR : Hang Tuah 815, Jakarta, 12120, Indonesia
LESSEE : Mr. Kim Bong Jo, PT. KRAKATAU POSCO, Jl. KH
Yasin Beji No. 2, Cilegon, Banten.

Article 12
DOMICILE

All disputes arising hereunder shall be settled amicably between the parties.
In the event that an amicable settlement cannot be found, then such disputes
shall be finally settled under the rues of conciliation arbitration of the
Indonesian National Board of Arbitration (BANI) by one or more arbitrators
appointed in accordance with said rules. The award shall be final and
binding on the parties and the parties undertake to carry out the Award
without delay.
IN WITNESS WHEREOF the parties hereto have executed this Agreement
by affixing their signature hereto as of the date first mentioned above.

LESSOR LESSEE

Mr. ALI MUNANDA SOEDARSONO Mr. KIM BONG JO

WITNESS :