Contract Agreement Between Cathay Pacific Airways Limited And Gapura Angkasa Airport Services This agreement is made

on 1 July 2002 between Gapura Angkasa Airport Services, whose principal office is at Gdg. Gapura Angkasa Kemayoran, Jl. Angkasa, Kota Bandar, Kemayoran, Jakarta 10610, Indonesia, hereinafter referred to as Gapura and Cathay Pacific Airways Limited whose principal office at Swire House, 9 Connaught road, Hong Kong, hereinafter referred to as CX and collectively referred to as the parties. Article 1 : Object of the agreement Gapura and CX have agreed to a cooperative to promote Gapura as the preferred ground handling agent in Jakarta, and enable CX to offer technical handling services to selected customer airlines, Gapura and CX agree to enter into a contract as set out hereunder. Article 2 : Responsibilities 1. Gapura are appointed as the Representatives Partner in any Airport Authority negotiations or discussions, but CX Engineering Jakarta representatives should be invited to partake in those talks appertaining to the objectives of the partnership between Gapura and CX. 2. CX will enter into discussions with customers airlines to offer CX Technical Handling I CGK. Those Airlines may be existing customers to Gapura, or potential customers. In any case, Gapura will act as the contract agent, and will subcontract CX to provide the technical handling where CX agrees to perform such services. 3. CX will provide the certifying engineers for each contract where certification for aircraft release into services is required and under the existing IATP agreed contracts systems. The certification will be made under CX existing approval systems as per the normal procedures currently set in place by HKCAD (Hong Kong Civil Aviation Department). 4. CX will ordinarily provide the aircraft mechanics to assist the engineers (as per the terms of the contract agreed between Gapura and the customers airline), but can also request support from Gapura staff as required. CX will re-imburse Gapura according to the agreed man-hour rate for each mechanic accordingly. 5. Gapura can at their discretion and with the agreement of the CX certifying engineer, appoint additional mechanics to aircraft maintenance operations for the purposes of training. In that case CX does not have to pay Gapura the man-hour rate for those mechanics. Article 3 : Contract Administration All technical contract negotiations, where CX intend to provide certifying engineers to release a 3rd party customer aircraft, will be conducted by CX. 2. Both parties should have copies of the IATP Standard Ground Handling Agreements (SGHA) for full visibility of applicable rates. CX will be responsible for handling all technical and administrative matters arising from any contracts that CX enters into.
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3. Ground handling contracts negotiated by Gapura that include tech services provision subcontracted to CX must have the Standard Ground Handling Agreement under a separate contract as per item 1 above. 4. CX will advise Gapura of any changes in contract rates or services provision, upon effectively. 5. The head office representatives of both parties should deal with any matters arising from the partnership. Article 4 : Accounts 1. CX will be the responsible party for invoicing and accounting with respect to any IATP SGHA contracts attained. 2. CX will pay to Gapura a sum of 5% of the gross total income from each IATP SGHA. The payment will take place 30 days from the receipt of payment by the customer airline. 3. CX will maintain responsibility for all taxes and liabilities on earnings in Indonesia. Article 5 : Liabilities 1. Each partys personnel will operate on customer aircraft under their respectively companys insurance schemes and are liable and responsible for their own actions. Both parties therefore agree to effect and maintain in full force Hull All Risks Insurance and All Risks Property Insurance as well as comprehensive Legal Liability Insurance. 2. CX takes no responsibility or liability for Gapura staff working on customer aircraft. 3. Each party consents to the exclusive jurisdiction of the courts of Hong Kong with respect to all claims courses of action and disputes arising out of this agreement. 4. This agreement shall be governed by and interpreted in accordance with the laws of Hong Kong. Article 6 : Amendment 1. Either party may request a review of this agreement, at any time and any changes require written approval of both parties. Article 7 : Effect of the Agreement 1. Except as otherwise provided, neither party is an agent or representatives of the other. 2. both parties agree not to employ staff directly from the other partys employment. Article 8 : Termination 1. Notification of termination of this agreement should be made by giving the other party 6 months prior notice in writing. 2. It is understood that termination will result in CX terminating any IATP SGHA with customer airlines, unless alternative measures are set in place to facilitate the continuation of such contracts.

Article 9 : Validity This contract shall become effective on 1st August 2002. For and on behalf of Cathay Pacific Airways For and on behalf of Gapura Angkasa

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