CONTENTS

COAI, MINING
(:ON! RACT

A Artic

r le 5

ti Artic

c le

l Artic

e le 7

I Artic

A le 8

r Artic

ti le 9

c Artic

l le

e 10

2 Artic

A le

r 11

ti Artic

c le

l 12

e Artic

3 le

·Articl 13

e Artic

4 le
14 21

Ar Artic

tic le

le 22

15 Artic

Ar le

tic 23

le Artic

16 le

Ar 24

tic

le

17

Ar

tic

le

18

Ar

tic

le

19

Ar

tic

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20

Ar

tic

le
: NTRACT
i
) :
E PERFORMA
F NCE. OF
I SERVICES
N
: PRICE-
I
OF
T
CONTRACT
I
O :
N WARRANTI
S ES ANI)
UNDERTA
A KING
N
I :
) COVENANT
I S
N
: PENALIN
:
S :
C INSURANC
O E
P : IN
E PROPERTY
O
F :
S CONFII)FN
E 'FIALITY
R
V :
I INDEMNIT
C Y
E : TAXES
S ANI)
: CUSTOMS
T DUTIES
E : FORCE
R MAJEURE
M
S :
REPRESEN
O TATIVES
F
C ASSIGNM
O ENT ANI)
SUI3CON
T GAT IO N
R OF
A EM PL OYME
C NT AN D
T AGE NC Y
I
N EVENT OF
G 1)EFA1

: : NOTI('ES
C
:
O
TERMINAT
O
ION
P
E :
R SETTLEME
A NT OF
T DISPUTE,S
I
O :
N ARBITRATI
ON
:
N :
E MIS('El.I.A
NI:Ot IS
ANNEX 6 •-- FIGURE AND DRAWING

Contents:

Figures

Description

No. 1

(icnetal Vicinity I\1•tp

No. 2 Genet
al I (Walion Map
No. 3 I
Yrical Geology and

Location
No. 4

Typical in it and Ilauling Road

No. 5 Final
Pit Map
No. 6

Dumpsite mew; 1\ lap

No. 7

Typical of Pit Slope

No. R

l'ypical of Dumpsite Slope.

/
 ANNEXES

A nne x I —
SCOPE OF
WO R KS
1.1. Top
Soil
Removal
activities
1.2. Over
Burden
Removal
activities
1.3. Coal
Hauling
activities
1.4. Mine
l)cwatcrin
g
1.5.
Maintenan
ce Activity
1.6. Work
Shop
1.7.
Heavy
Equipment
s
I.R. Key
Managem
ent
Personnel
I .9.
Provisions
of
Informatio
n
1.10.

Other
Activities

Annex 2 --
PRICE OF
CONTRACT
2.1. Price
of Contact
2.2.
Formula
Adjustme
nt to
Contract
Price
2.3.
Exchange
Rates
 Formula
2.4.
Method Of
Measurem
ent and
Method of
Payment
2.5. Fuel
Supply

Anne x 3 —
S PEC I F I C
CO N DI TI O NS
3.1. Bill of
Quantity
3.2.
Warranty
of Rate in
the Bill of
Quantity
3.3.
Miscellane
ous

Annex 4 —
CONTRACTOR'
S WORKS PLAN
4.1.
Schedules
4.2.
Meeting
and
Reports
4.3.
Suspensio
n of Work
4.4.
Traffic on
Road
Access
and Public
Roads
4.5.
Surveying
4.6.
Arrangem
ents Upon
Completio
n of fill of
Quantity
4.7.
Removal
of
Improper
Works
 4.8.
Miscellane
ous

An 5—
SAFETY
REGULATION
S
5.1. ,"iatel
y and
Iletilth
S'eCtiri
ty. •
53.
Environm
ent
5.4.
Conduct
of Key
Managem
ent ['CI
sonnel
5.5.
Protection
of Fossils

Annex 6 —
FIGURE AND
DRAWING

iii
 COAL MINING CONTRACT

This Contract is signed On this day Monday on 26' x' December 2(105 by and between:

Pi'. AMONG BARIJTAIHA GRESTON, a limited liability corporation duly established under
and by virtues of the laws of Republic Indonesia, having its registered office at 2"
Floor, Ventura Building, R.A., Kartini No. 26, Outer Ring Road, ('ilandak, Jakarta 12130.
Indonesia. In this matter represented by \Ir. Sotnyot Ruchirawat and Mr. I,ikit Pongpa-
Ngan, together acting in their capacities respectively as President Director and Director,
therefore for and. on behalf of PT. JORONti BARUTAM A GRESI (hcrcinaflcr referred
to as "Company");

PT. IMAM ClIOKE PATTANA, a limited liability corporation duly established under and by
virtues of the laws of Republic Indonesia, having its registered head office at g al Floor.
World Trade Center. ii. Jendetal Sudirman kay. 29, Jakarta 12920. Indonesia. In this matter
represented by Mr. Eficualy IIerman, according to his statement, acting in his capacity as
the President Director of PT. RI JAM CIIOKF, PATTANA, therefore for and on behalf of PT.
IMAM CIIOKE PATTANA (hereinafter referred to as "('ontractor -)

Company and Contractor collectively shall refer to as "the Parties- and individually shall refer to
as the "Party".

It E( I,S;

Whereas, the Company is the coal mining company with its coal mining operations located at
Jorong, Pelaihari, South Kalimantan.

Whereas, the Contractor is a long established company with expertise and experience in
providing coal mining services at the coal mining operations in Indonesia including but not
limited to over burden removal, coal extraction, coal hauling and others. Contractor in such
business activities are supported with skillful labors, good equipments (including all machines,
transport vehicles, trucks and others) and good financial resources to perform its operations,
business and the obligations in this Contract thereafter;

Whereas, the Contractor agrees to provide coal mining services in accordance to the
requirements of Company and the Company agrees to use the services rendered by
Contractor.

NPW THEREFORE, the Parties mutually agree to enter into Coal Mining Contract
036_.1130/1.G1/2005 ("The ('ontract-) with the terms and conditions as follow:

Coal Mining Contract PrrKi r of 19

036_313G/1A:1105
ART ICLE I: DEFIN ITION S AND INTE RPRETAT IONS
1.1. Definitions
In the Contract (as heleinaller defined) the following words and expressions shall have the
meanings hereby assigned to them, except where the context otherwise requires.

"Affiliates'' means (i) any entity directly or indirectly, controlling or be controlled by or tinder
direct or indirect CO111111011 control by other entity or (ii) any person who is a
commissioner. director or executive officer (a) of such specified person; (b) of any subsidiary
of such specified person', or (c) any entity described in clause (i) above. For the purposes of
this definition, "control" when used with respect 10 any person means the power to direct the
management and policies of such person, directly or indirectly, whether through the share
ownership or management power.

"Annexes" means all annexes attached in this Contract and shall be construed as integral part
of the Contract. In this Contract the annexes are:
Annex I -- Scope of Works
Annex 2 -- Price of Contract
Annex 3 -- Specific COnditions
Annex - Contractor's Works Plan
Annex 5 Safely Regulations Annex
6 Figure and Drawing

"11(71111- means Bank Cubic Meter, A measurement on the weight of Over Burden Soils carried
in the Over Hurden Removal activities.

"Coal Hauling" means the Contractor shall use !heavy Equipments to load the Extracted Coal into
the Dump 'Huck and deliver/transport such Extracted Coal to the Crushing Plain and/or the Stock
Yard. Company shall from time decide the destination of Extracted Coal either at Crushing Plant
and/or Stock Yard.

"Coal Mining Operations" means any and all activities related to coal mining operation in
Site such as digging, hauling, transporting, delivery, dumping, blasting, stocking, top soil
removal, over burden removal, coal extraction, coal hauling, constructions of facilities, and
others.

"Company" means PT. JORONG BA 10 TIA MA GRESTON or its designated representative and any
legal successors entitle to it.

"Contract" means tins Coal Mining Contract 036_.1130/1.G1/2005 including all the provisions in
Annexes thereto.

"Contractor" means PT. IMAM CHOKE PATTANA, its authorized representatives; Key
Management Personnel (described in Annex I Scope of Works), any legal successors entitle
to it.

"Costs" means any and all loss, damage, expenses, expenditures, charges occurred or shall oceiir
(Inc to the performance of the Services and/or any expenses, expenditures in or of the Site,
including but not limited to liquidate damages, compensation payable, litigation, fees,

Coal Mining Contract rag( 1 of 19

036.111G/I,G1,/05
overheads, levies, or retributions either officially or un-officially, imposed by local or.central authorities
in Indonesia and other charges thereafter.

"Crushing Plant" means a designated place/location where the Extracted Coal is delivered. The
Extracted Coal shall then be crushed in the crushing plant/machine owned by Company.
The crushing plan( is located in (he Site as described in Annex ( Figure and Drawing.

"Day" means every calendar day.

"Digging" means Contractor shall use its Ileavy 1:.quipments to excavate, remove Top Soil
and/or Over Burden Soil from Working Area and load them into the Dump Truck.

"Drawings" means any and all drawings, sketch, blue prints, pictures, from time to time provided by
the Company.

"Extracted Coal - means Contractor shall use Heavy Equipments or any other means to
remove, clean and extract the ROM from any clay, sands, dirt/soil/earth or any other
substances. The final result of coal extraction activities shall provide a clean and pure coal.

"Finished Coal" means any and all crushed coals from the crushing plant that arc ready to he delivered
to customer or buyer.

"Force Majeure" means the events as referred to in Article 14.

"Heavy Equipments" means the Contractor owned and provides any and all machines,
equipments required or deemed to he required as specified in section 1.7 of Annex 1 -- Scope
of Works, and any other equipments or supporting machines, tools, gadgets, required from
lime to time to perform the Services in this Contract.

"Information" means any and all verbal and/or written information, data, documents, notes, drawings,
sketch, blue prints, pictures and others related to Company and/or Site, and others.

"Infernal Regulations - means any and all regulations, instructions, policy of Company
related to any operations, activities in Site including but not in limitation to Top Soil
Removal, Over Burden Removal, Coal Extraction, Coal Hauling, Maintenance Activity and
the compliance thereof with haws, health, safety on works, environmental, hazardous and
dangerous articles, and others laws..1lre internal regulations shall include but not limited
to Company's Quality, Safety 8z. Environment ((,)SF) policy, Company Contractor Code of
Practice, Site Safely Standard, Fatality Prevention Elements, Environment Management
Procedure, Company Hydrocarbon Environment Management Procedure, Company Waste
Management Procedure, Company General Traffic Rules, Company Pit Traffic Rules,
Security Regulations, any directions born Company/authorize persons of Company, and.
others. The Internal Regulations shall from lime to time may be changed and be adjusted
in accordance to die needs of Company.

"Invoice" means original payment claim alter the completion per formance of Services made
by Contractor in the preceding month, duly stamp with details of quotation on the Company's
purchase order number, supported with substantiation of the amount claimed and agreed by
the Company. The Contractor shall he required to prepare supporting documents for any
invoice charged and any other documents requested by Company.

Coal Mining Contract rage, 3 of /9

036 2 111G/I,C1./05
"Laws" means any and all relevant product of laws, ordinances, government regulations, decrees,
regulations, acts, orders and any of its derivatives legal products enacted by any locals and
central authorities of Republic of Indonesia, including any regulations enacted by international
organizations on related issues.

"Letter of Acceptance" means a document, statement made and signed by representative person
or Company to declare that Contractor has perform specified part of its: (i) obligations, or (ii)
Services, in this Contract accordingly to the needs and requirements of Company.

Lefler of Instruction" means a document, statement made and signed by representative

person of Company to instruct, give ordered to Contractor, to immediately without delay
perform any works stipulated in Services or to stop any part of work stipulated in Services.

"Main Roads- means all primary roads designated by the Company as the main access into the
Site and directly heading to the Stock Yard.

"Nlaintenance Activity" means at every certain period of lime agreed by Company or from time to
time upon requested by Company, and in order to assure the performance of Contract, Contractor
at its own expenses shall conduct maintenance activities in good manner to the: (a) Ileavy
Equipments, (I)) Substitute Heavy Equipments, (c) Work Shop. The objectives of maintenance
activity arc: tr) protect and keep the objects of maintenance activity in good condition and in
compliance to the needs of Company.

"Materials" means Contractor shall provide any and all materials required for Maintenance
Activity. The quality, quantity and type of materials used shall be determined by Company.

"Mine Dewaterine means Contractor shall use any and all equipments including water pumps
to dry out or to take out any water and mud found in the Working Area and/or in the Pit to
the lowest sunup. Contractor shall throw away the water/mud into the area/location
designated by Company.

"Olt Allocation Arca" means location/place in Site designated by the Company as a location to
unload, dump and spread Over !linden Soils. 'I he 011 allocation area is described in Annex 6
Figure and Drawing.

"OH Loading - means Contractor shall use I lea vy Equipments to excavate, remove Over
Burden Soils from Working Area and loading them into Dump Truck. In the process of this Oft
loading activity, the Contractor shall with due care use its best effort to avoid and prevent
excavation of any raw coal in the Working Area. The method of digging and loading the Over
Burden Soils shall from time to time comply with the instructions of Engineer.

"Oils" means any and all supporting substances such as, oil, fuels, grease, lubricants and other
components required, recommended, or specified by the manufacturer of Heavy Equipments and
in accordance to the international standardization on such matters in order to operate and
maintain the good performance of I leavy Equipments

"Operators" means Persons appointed by Contractor who have licenses/permits, qualification and
expertise to handle with due care and sale, to operate and controlled of every: (i) Ileavy

Coal Milling Contract rap, 4 of/9

036_311(:/lA;1105
Equipments for Services, (ii) Maintenance Activity, and shall from lime to time comply with
instructions, requirements Of Company.

"Over Burden Removal" means Contractor shall use Heavy Equipments and all of its best
effort to perform and accomplished any and all activities of OR Loading, transport/deliver
Over Burden Soils to the 013 Allocation Area in such manner satisfactory to ('ompany. ihe
Top Soil Removal is deemed to be part of over burden removal. Contractor shall only use
Road Access in over burden removal activity.

"Over Burden Soils" means any and all types of soil/earth/dirt removed from Working Area (in
11CM measurement) which does not contain any raw coal. higine e r shall decide the depth and
the types of soil/earth/dirt excavated and removed from Working Area.

"Persons" means any and all individuals, labors, workmen, employees, staffs, officers, or
any natural person directly or indirectly related or engage with any work in whatsoever
nature.

"Pir means IJE-Pil or any mining location/pit of coal mine at the Site. The location of the pit is
described in Annex 6- Figure and 1)rawing and/or any other places/locations/area from time
10 time designated by Company

"Price of Contract" means the value paid to Contractor based on the satisfactory
performance of its Services, all components related to the Services, and its compliance to
the obligations in Contract such as burnot limited to benefits, profits, expectation of
profits by Contractor, Costs, expenses at transportation, mobilization, demobilization from
one place to another place of its Persons and I Icavy Equipments, risks, insurances,
accommodation, Oils, Spare Parts, any other expenses required to perform and to comply
with and in relation to Services. ihe price, calculation and method of payment are
stipulated in Annex 2 -- Price of Contract.

"Road Access" means any and all roads used in the Coal Mining Operations including but not
limited to Road Top Soil Removal, Road Ovcr Burden Removal, Road Crushing Plant, Road
Stock Yard. The Contractor understands the conditions of the routes, couture, conditions and
the distance of road access. If Parties decide to deviate the route from current road access,
then Parties shall do a join survey to measure the new distance of the road access
accordingly, and therefore Parties shall discuss any and all issues related thereto.

"Road Crushing Plant" MeallS designated road connected from Working Area to the Crushing
Plant, which shall be used by the Contractor in the Coal Hauling activities, to
deliver/transport the Extracted Coal into Crushing Plant

"Road Over Burden Removal" means designated road connected from Working Area to the
011 Allocation Area, which shall be used by the Contractor for the Over 13urden Removal
activities. in the event the Contractor is required to provide the road/access for Over Burden
Removal activities, then Prior to construction on such road, the Contractor shall consult and
obtain approval from Company on the direction, detail technical construction of the road, area
used for the road and any other components related to road access such as Materials and
others.

Coal Mining Contract rage 5 o 1 9

036.111(711,C1,/05
"Road Stock l'ard" means &signaled road connected from Working Area and/or. from
Crushing Plant to Stock Yard, which shall he used by the Contractor in the Coal Hauling
activities, to deliver/transport the .Extracted Coal and/or Finished Coal to the Stock Yard.

"Road Top Soil Removal" means designated road connected from Working Area to the
Spreading Area, which shall be used by the Contractor for Top Soil Removal activities. In the
event the Contractor is required to provide the road/access fOr Top Soil Removal activities,
then prior to construction on such road, the ('milt-actor shall consult and obtain approval from
Company on the direction, detail technical construction of the road, area used lOr the road and
any other components related to road access such as Materials and others.

"ROM" means Run of Mine Coal or raw coal ftrund in the Working Area after the Over Burdett Removal
activities.

"Scope of Works" means any and all works stipulated in Annex - Scope of Works and any
modification thereafter made by Company and/or submitted by the Contractor and approved in written
by the Company.

"Services - means The Contractor shall comply , with any and all obligations, Scope of Works,
covenants, services stipulated in the Contract including but not limited to Top Soil Removal,
Over liurden Removal, Coal !larding, Mine Dewatering, Maintenance Activity, and any other
instructions to perform any work requested by the Company.

"Site" means the mining concession areas of Company described in the map as provided in
Annex 6 Figure and Drawing, and/or any areas, places designated from time to time by the
Company.

"Sub-Contractor" means any and all legal entities, corporations, partnerships, company and
Persons deemed to have capability to assist the performance of Services. Company may
provide the list of Sub-Contractor. The Contractor shall, prior to such appointment of any
Suh-Contractor in the list, obtain written consent from Company and from time to time
comply with provisions stipulated in Article 16.

"Substitute heavy Equipments" means Contractor at its expenses and Costs shall from
time to lime within 12 hours upon notice from ('ompany, to give exchange or provide
substitute in an equal quality and types of any Heavy Equipments deemed to be defected or
non conformity to perform the Services (as the case may he).

"Sparc Parts" means any and all tool kits, original/genuine components, including but not
limited to Oils, tires and any spare parts of the Heavy Equipments specified by the
manufacturer of the I heavy Fquipments to he changed, repaired after several period of time,
in order to maintain the good performance of I leavy Equipments.

"Spreading" means t :runt-actor shall use its I Icavy Equipments to unload, dump and spread
Top Soil at the Top Soil Spreading Area. The spreading activity shall he done accordingly to
prevent the Top Soil from sliding down.

"Stock Yard" means a designated place/location where the Extracted Coal and/or Finished Coal arc
delivered and stocked piling as described in Annex 6 --• Figure and Drawing.

Coal Mining Contract rage 6 of 19

036_.111G/11,G11,/05
"Term of Contract" means the term of Contract as stated in Article 3.

"Top Soil" means any and all types of soil/earth/dirt removed from Working Arca (in 13CM
measurement). Fngineer shall decide the depth and types of soil/earth/dirt excavated and
removed hom Working Area.

"Top Soil Spreading Area" means location/area in the Site designated by Company as a location
for Spreading activity.

"Top Soil Removal" means Contractor shall use I leavy FquipnleWts and all of its best effort to
perform and accomplished any and all activities of Digging, transport/deliver the Top Soil,
Spreading in such manner satisfactory to Company. Contractor shall only use Road Access in
over burden removal activity.

"Writing" means any hand-written, type-written, or printed communication, including telex,

facsimile transmission or electronic mail

"Work Shop" means Contractor at its own Costs shall provide and erect temporary buildings,
facilities and infrastructures such as personnel housing, offices, warehouses, Heavy
Fquipments repair garage, Oils storage, communication facility and other facilities including
but not limited to office appliances, facilities for Maintenance Activity, electrical and water
facility, sanitary and others, at the location designated by Company fOr such purposes.
Contractor and/or its Persons shall use the Work Shop solely for the effective and efficient
work activities of Services.

"Working Area" means area at the Pit M1I.: where the Contractor shall mine the coal and
perform the Coal Mining Operations.

1.2 Headings
·Ihe headings in these conditions shall not he deemed part thereof or he taken into consideration
in the interpretation or construction thereof or of the Contract.

1.3 Interpretation
Words importing persons or parties shall include firms, corporations or any entity having its legal
capacity as the case may be.

1.4 Singular and Plural

Words importing in the singular may include the plural and vice versa where the context
requires

1.5 Notices, Consents, Approvals, Certificates and Determinations

Wherever in a provision of the Contract stating on giving or issuing of any notice, consent,
approval, ceitificate• of determination by any person, unless otherwise specified in this Contract,
such notice, consent, approval, certificate or determination shall be in writing and the words
"notifY", "certify" or "determine" shall he construed accordingly.

Coal Mining Contract rage 7 of 19

0362111(:/lA;1./05
1.6. Documents
Several documents forming the Contract are to be taken as mutt ally explanatory of one
another, but in case of ambiguities or discrepancies, Company shall at its sole discretion
adjust the discrepancies accordingly.

A R T I C L E 2 : S C O P E O F S E RV I C E S
2.1. The Services shall be stipulated in Annex 1 Scope of Works. In general the Contractor
shall perform its scope of Services such as:
a. Top Soil Removal
b. Over 13urden Removal
c. Coal Hauling
d. M i n e D e w a t e r i n g c .
Maintenance Activity

2.2. Not withstanding to Article 2.1 above, the Contractor shall perform the Services and
Contractor agrees that Company has, at its discretion, the right and from time to time to
revise, change detail of Services specified in Annex I Scope of Work in accordance to the
needs of Company which such change, revision shall effect upon written notice to Contractor.

ARTIC.LE 3: TERMS OF CONTRACT

3.1. This Contract shall valid fOr 2 (two) years, commencing as of I" January 200( and shall expire on
31" December 2007.

3.2. Parties may, prior to expiration, extent the Contract provided such extension shall be
inform in written notification to other Patty not less than 3 (three) months prior to expiration of
Contract. The extension of this Contract shall from time to time subject to written consent from
Parties.

ARTICLE PERFORMANCE OF SERVICES

4.1. At least I (one) month prior to the per formance of Services on the respective month,
Contractor shall consult, submit and obtain approval from Company on details Schedules of
Services such as but not limited to • working time schedule, details planning on
accomplishment of Services monthly and annually, schedule of. work to be done, daily
schedule of works on Services progress of in Services and any other information required by
Company. Such details schedule of Services is stipulated in Annex 4 - Contractor's Works
Plan ("Schedules - ).

4.2. Company shall have the right from lime to time during the performance of Services
inquired the Contractor to submit systematic report of the daily progress work on Services or
report in any form deemed necessary and Contractor shall comply with such inquiring within
seven days alier receipt of such notice.

4.3. Contractor shall without delay star t to per form Services within I (one) Day from the date
it receives Letter of Instruction from Company. 'the Contractor shall make efforts to, from time
to time, comply with the Company's requirements and shall consult regularly with the Company
throughout the performance of the Services to ensure that all aspects of the Services are
performed to the Company's satisfaction.

Coal Mining Contract Page 8 al 19

 4.4. Contractor at its own Costs shall provide Persons, heavy Fquipments and resources
needed to accomplish the Services including but not limited to provide any equipments,
machines, tools, gadgets and all other things required for the successful performance of
Services.

4.5. The performance of any pail of work specified shall he deemed in compliance with the
requirement of Company upon receipt of the Letter of Acceptance.

4.6. The Contractor shall, within one Day before the expiration of terms of Contract as
specified in Article 3.1, has finished the performance of Services and all its obligations in this
Contract.

4.7. In the event Contractor fails to comply with the any provisions in this Article, Company shall
at its own consideration, engage with any third patty to accomplish the Services and all Costs
incurred shall he borne by Contractor.

4.8. In the event of breach or negligence to comply with Services, Contractor shall be liable
for and remedy any Costs incurred by Company, and Contractor hereby indemnify and save
harmless Company against any and all Costs, penalties and any liabilities occurred from the
breach and/or negligent or whatsoever conduct of ( 'milt actor with respect to the Services
and/or the violation of Laws.

ARTICLE 5: PRICE' Or CONTRACT

The Price of Contract and method of payment are stipulated in Appendix 2 -- Price of
Contract.

ARTICLE 6: WARRANTIES AND UNDERTAKING

So long as the Contract is in force, Contractor hereby blither declares to warrants and to
undertake the following matters:
6.1. It is a legal entity duly incorporated and exists under the laws of Republic of Indonesia, it
has the power to carry its respective business as to exercise any agreements/contracts, and it
is not a party to or bound by any contracts or undertaking which limits its rights to engage
with Company.

6.2. It has no current, pending or threaten on: (i) litigation; (ii) tax claim; (iii) any debt to any
third patty or its Persons; or (iv) any administrative proceeding; which could have adverse effect
on or disturb the performance of Services.

6.3. The obligations of Contractor under this Contract arc legal and binding to Contractor, which
therefore can he enforced on the (ontiactor in accordance with the terms and conditions of this
Contract.

6.4. It shall comply with all its obligations in this Contract and shall perform the Services with
good faith and shall achieve a level of quality in accordance to the satisfactions and requirements
of Company.

rage 90/!9
Coal Mining Contract
036_2111G/I,C1,/05
C.S. It has obtained all relevant licenses, permits from relevant government authorities with
respect to the Services and shall from lime to time maintain and procure the validity of the
licenses, permits and (as the case may he) apply for any new license, permits required to
perform the Services thereafter.

6.6. It shall take full responsibility of all risks and liabilities that occur or may occur on each
and every mobilization, transportation and demobilization of its Persons, Materials, I heavy
Equipments.

6.7. It has long experience, expertise in providing Services and has the capability to provide
good quality of Services.

6. 2. It sha l l c ont rol , supe rvi se and lake any and all responsible on any actions of its Persons
wha t soe ve r duri ng t he pe rform a nce of the Services. It shall also take full responsibility for
t he a de qua c y, st a bi l i t y a nd sa fety of Coal Mining Operations activities in the Site and the
m e t hods of c onst ruc t i on.

6. 9. I t sh a l l pr ov i d e Ma t e r i a l s, e qu ip me nt s an d ot he rs i ncl ud in g to r em ed y an y sh or ta ge
t h e r e i n i n o rd e r t o e xe c u t e , c om pl ete t he p er fo rm an ce o f Se rv ice s in a s at is fa ct or y res ul t as
re qu i r e d by C o m p a n y.

6.10. It warrants that all Heavy Equipments hereunder have been declared clear from any
custom duties (or exempted as the case may be) and there is no any pending obligations with
respect to the taxes, custom duties and any other retribution whatsoever attached on the I leavy

A RT I C L E 7 : C O V E N A N T S
Contractor hereby Covenants to the Company on matters as follow:
7.1. Contractor (as the case may be) shall, prior to any performance of the Services, appoint
its authorized person to act for and on behalf of or as specified in Article 15.

7.2. Contractor and its Persons shall all the time comply with Internal Regulations and Laws
in relation to the perfUrmance of the Contract.

7.3. Contractor shall be liable for all aspects of the performance, enrploy rrent, and any other
things which may arise with respect to the Services including but not limited to mitigate,
remedy any and all defect, damage, losses and Costs arises therein caused by (i) default, (ii)
negligence, (iii) wrongful conduct, of its Persons with respect to this Contract.

7.4. C ontrac tor from t im e to t ime upon request from Company, sign, perfect, do, execute and
re gi st er al l and e ve ry such further documents, assurances and things as necessary for the
purpose of c arrying out the pe rformance of Service and the purpose of this Contract.

7.5. Contractor is legally the sole owner of the !heavy Equipments and there is no mortgage,
lien or fiduciary in whatsoever nature on the I Icavy Equipments.

7.6 Cont ra ct or shal l comply with any instructions given by Company or its representatives
wi th re spec t t o t he Servi ce s.

Coal Mining Contract Pap, 10 of 19

036_.113G/I,GL/05
7.7. During the Terms of Contract, Ilic Contractor shall maintain the validity of Insurances stipulated in
Article 9 of this Contract.

A WIIICLE 8: PENA IAN

8.1. In the event any part of the Services pet burned by Contractor does not, in the reasonable
opinion of the Company, meet the tequitements of this Contract and/or in compliance with any
provisions in the Contract, then Contractor shall, if requested by the Company, without delay
rectify at its own Costs any pat( of the Services that is deficient.

8.2. If Contractor fails to rectify the deficient Services, without delay the Company shall have
the right to have the deficiency rectified by itself or it shall appoint others to rectified the
deficiency. Any Costs incurred by the Company from having such deficiency rectified shall he
Contractor's debt due to the Company and may be deducted by the Company from payment
due or will be due to Contractor or may be recovered from the Contractor directly as an
outstanding debt.

8.3. In the event Contractor fails to per form any part of the Services in accordance to Annex I
· Scope of Works and/or Annex Contractor's Works Plan, the Contractor shall he liable
and shall be penalized in accordance to the provisions stipulated in Section 3.2.3. of Annex
3 Specific Conditions of the Contract. The amount of penalty shall be calculated from every
short fall of 13CM failed to he delivered by Contractor. Such amount of penally shall be
deducted from any payment due or will due to the Contractor or may he recovered directly
from the Contractor as an outstanding debt.

ARTICLE 9: INSURANCE
9.1. The Contractor at its sole Costs and expense and prior to the commencement of the
Services, arrange, provide and maintain the insurances in connection with the Services,
including but not limited to:
(i) Frill covers on Public Liability Insurance against liability at law for any damage or loss
to any property (including Heavy Fquipments) and for injury (including health and
death) to any of its Persons which may arise in any way connected with the perfOt
mance of the Services. 'I he premium of the insurance shall not be less than USD
50,000,- (fifty thousand United States Dollar) and the general practice in mining
industry;
(0) Full covers on Automobile Bodily Injury and Property Damage Liability
Insurance covering all Heavy Fquipments, motor vehicles owned, leased or hired by the
Contractor and its Persons for the per fOrmance of the Services and any other property.
The premium of the insurance shall trot he less than USD 100,000,- (one hundred
thousand United States Dollar) and the general practice in mining industry:
(i) Workers Compensation Insurance including liability at law far an amount and in
compliance with all applicable Laws with respect to legislation governing benefits for
compensable disabilities payable to Contractor's Persons engaged in the performance of
the Services. Where the Contractor is an individual and not required by law to maintain
Workers Compensation Insurance, he/she shall nevertheless effected and shall maintain
through another insurer the maximum personal accident cover available through the
appropriate organization, and
(0) Professional Indemnity Insurance, which shall be maintained for not less than the
period of this Contract,

Coal Mining Contract rage I of 19

036_2111C/I,C1)05
(v) Any other insurance as fron time to time arise and stipulated by I ,11W S.

9.2.The Contractor shall, prior to commencement of the Services and whenever required by
the Company, provide evidence satisfactory to the Company that the insurances required by
this Article have beer arranged, are current and that all premiums have been paid. Failure to
provide such evidences shall not he deemed to discharge Contractor from any and all liabilities
occurred or shall occur thereafter.

9.3. The arrangement, maintenance of insurances as required in this Article and the amount of
insurance policy, shall not be less that the amount stipulated by relevant Laws and shall not in
any way limit the liabilities and obligations of the Contractor under any other provisions of this
Contract.

9.4. In any case as from time to time requested by Company, the insurances stipulated in this
Article shall he in the joint names of the Contractor and the Company, and the insurances shall
cover the Company against all losses, damages, Costs from whatsoever cause during the
terms of this Contract.

9.5. The Contractor shall he liable for and shall indemnify the Company in respect of any
deductible and excess applicable to any claim made under any insurance policy required by
this Article.

9.6. 'lire Company shall not be liable for any excess occurred from the insufficient
compensation from insurances therefore the Contractor shall indemnify the Company against
all such excess including any damages, loss, Costs, claims in whatsoever nature.

A RT I C L E 1 0 : I N T E I A , E C T U A L P R O P E RT Y
10.1. The Contractor shall save harmless and indemnify the Company from and against all
Costs, claims and proceedings occurred from any infringement made by Contractor on any
patent rights, design trademark or copyrights whatsoever in respect thereof or in relation
thereto.

10.2. Except otherwise stipulated herein, the Contractor shall pay to Company royalties and
other payments or compensation for taking and having stories, sands, gravel, clay or other
materials from the Site.

A R T I C L E 11 : C O N H D E N T I A L I T V
11.1. The Information shall remain the property of the Company. The Contractor and its
Persons shall keep private and confidential all Information supplied by Company or the
Engineer; therefore the Contractor shall not make copy or take away any Information
whatsoever out from the office/Site of Company.

11.2. "lire Contractor shall not duplicate, produce any copy, use, communicate, divulge,
publish, disclose, and inform any particulars thereof - to any third party without prior written
consent from Company. Upon expiration of the Contract, the Contractor shall return to the
Coinpany all Information.

Coal Mining Contract rap. 12 of 19

036.InG/I,G1 J05
11.3. The provisions in this Article shall survive lig three years upon termination or completion of
this Contract.

ARTICLE 12: INDEMNITY

12.1. The Contractor shall be liable for and shall indemnify the Company against liability of any
and all:
(i) death of or injury to Persons;
(ii) loss of or damage to property of any party;
(iii) violation or non compliance wit hh the Laws
(iv) Costs or any expenses;
(v) claim from any third party,
which arise or may arise in consequence of the performance of the Services and/ or caused by (i)
default; (ii) negligence; (iii) willful or wrongful conduct; (iv) omission; of its Persons during the
perfOrmance of Services and Contractor shall without delay remedying of any loss, defects, Costs
therein.

12.2. Pursuant to article 12.1 above, the Contractor agrees to indemnify Company against all
Costs, damages incurred by Company as well as claims by any third party against Company as a
result of any breach by Contractor of the terms and conditions in this Contract including but not
limited to lawyer's fees, indirect, consequential damages.

ARTICLE 13: TAXES AND CUSTOMS DUTIES

13.1. Unless the Contractor can provide a valid tax exemption certificate from the competent
tax office, the Company shall calculate the Withholding Tax (PPM of the Invoice at the ruling
rate, remit the amount withheld to the competent tax office for the Contractor's account and
forward the appropriate receipt to the Contractor. If the Contractor claims exemption from
withholding tax, a copy of the tax exemption certificate shall be attached to each application
for payment.

13.2. If The Contractor's prices and rates is excluded born value added tax (VAT) (Pajak
Per/mnbabwr Ni/ui). 'I he Contractor shall submit with each application for payment a
separate Invoice fOr VAT in the form required by the tax authorities. 'I he Company shall
remit the VAT amount directly to the competent tax office for the Contractor's account in
accordance with the tax regulations.

13.3. Contractor shall clear any and all custom duties, taxes, retributions arises therein on any
and all of the Sparc Parts, Heavy Equipments, Materials used in the performance of the Services
under this Contract.

13.4. Except specifically provided in this Article, the Contractor shall pay when due or
withhold from others and pay when due all applicable taxes, duties, fees, charges and
contributions in aceordance \vith L aws within or outside Indonesia in respect of the
performance of Services under this Contract.

ART IC LE 1 4 : FO RCE N lA JE U RE

Coal Mining Contract rage 13 of 19

036_311G/1A:1,105
14.1. No party shall he liable fOr or he in default hereunder as a result of, such Party's
failure or inability to perform in whole or in part any of its obligations hereunder or to deliver
or accept Services to he provided pursnant to this Contract because of an interruption of its
operations of the extent that such failure, inability or interruption of perfOrmance is caused
directly by a Force Majeure Event. "Force Majeure Events - shall be:
(i) acts of- (iod;
(ii) war, invasion, act of public/fOreign enemy including blockades, insurrections,
sabotage;
(iii) rebellion, revolution, civil war;
(iv) riot, commotion, disorder, labor disputes except those involving its Persons,
claiming force majetne
(v) natural calamities such as earthquakes, epidemics, volcanoes, heavy wind storms floods
and other natural disasters;
(vi) Binding order of any governmental authorities, including rationing,
allocation, expropriation, requisition, confiscation, nationalization or import and
export restrict ion.
(vii) Change in I ,a‘v
For the avoidance of doubt, the Parties agree that adverse conditions such as increase of price
of: (i) Oils, (ii) gas/fuel, (iii) living costs, (iv) daily/basic necessity goods, (v) fluctuation on
exchange rates, (vi) change of Indonesia's national economic, arc not a Force Majeure Event.

14.2. The affected party shall give written notice to non-affected party promptly within 24
(twenty four) hours after Force Majeure occurred. Giving details of the circumstances
constituting the Force 14 ai COI e '.v( 4 111 and the likely duration thereof - , if reasonably known
and shall keep the non-affected Party informed of any changes in such circumstances including
when such Force Majeure Event ends.

14.3. In the event the Force Majeure Event continues for a period of more than 7 (seven) Days
from the date of notice, then any Party may let minate this upon giving the other party written
notice of termination of the JpOO termination no compensation to any expenses, Costs
incurred during the Force Majeure Event shall be relieved from any party irrespective of any ef fOrts
made therein.

A RT I CI , E 1 5: R E P RE S E NTAT IV ES
15. I . Each Party shall appoint a representative and such appointments shall he notified to the
other Party in writing. Patties agree that their respective representatives shall have the
authority to act on their behalf for all purposes in the Contract. The Contractor is required to obtain
written consent from Company on the appointment of any respective representative to act for and on
behalf-of the Contractor prior to or during the terms of

15.2. The Company from lime to time, may designate any of its representatives to supervise
all or any part or the Services ("Engineer or Geologist - ). The Company shall notify the
Confrador in writing on such designation. The. Company may delegate to its representative
any of the duties and authorities and it may at any lime revoke such delegation. Any such
delegation or revocation shall he in writing and a copy thereof shall he delivered to the
Contractor.

15.3. Any communications or instructions provided by the Engineer to the Contractor shall have the same effect as if it
had been given by the Company, except:

Coal Mining Contract rag, 14 of 19

036,111G/I,G1,105
 (a) any failure, of the Engineer to disapprove any part of the Services
shall not waive the rights of the Company to disapprove such part of the
Services and therefore Company shall give instructions to or for the
rectification thereof; or
(b) if the Contractor questions any instructions made by the Engineer, it
may refer the matter to the Company who shall C 0 1 1 1 1 1 1 11 , reverse o r var y the
CO lit Ch I S of such instruction.

15.4. If under any circumstances which requires the Engineer to exercise its discretion by:
(a) giving its decision, opinion, consent or rejection;
(I)) expressing its satisfaction, dissatisfaction, approval or disapproval;
(c) taking action which may affect the rights and obligations of the
Company or the Contractor,
Engineer shall be deemed by Parties to exercise such discretion impartially within the
provisions in the Contract.

15.5. Instruc tio ns by the Company shal l be i n wri ti ng. The Contractor shall compl y with such
instr uction. If the Contractor in tends to change the i nstruc tio n, it shall provide i n wri tten to
the Co mpany on its suggesti on. In the event the Company agrees t o suc h suggest ion, i t
shall respo nse in written with in 7 (seven) days from t he date of such suggest ion, failure
that, the suggestion shall be deemed waived and t he Con trac tor shall comp ly with the
original ins truction. If for any reason Company considers i t necessary to issue an oral
instr uction, such oral instru cti on shal l he deemed accepted by Contract or and therefore
Contractor shall confirm such oral instru cti on in wri ting.

ARTICLE 16: ASSIGNNII,',NT AND SUBCONTRACTING

16. I. None of the Services or any of the benefits or obligations accruing in this Contract may
he assigned or subcontracted by the Contractor without prior written consent from Company.

16.2. Subject to provisions in Article 16.1. above, The Contractor may appoint any Sub-
Contractor from the list of Sub-Contractor provided by Company. Any consent provided by
Company for such appointment shall not relieve the Contractor from any liabilities or
obligations under this Contract and therefore the Contractor shall fully be liable for any and
all of; (i) the acts, (ii) defaults, (iii) negligence, (iv) wrongful, (v) willful conduct, of Sub-
Contractor that occurred from such appointment as if they arc the (i) acts, (ii) defaults or
(iii) negligence, of the Contractor.

16.3. Subject to Article 16.2.1 he Contractor shall supervise and guarantee the compliance of
any and all obligations of Sub-Contractor with respect to the performance of Services. *I he
Contractor warrants Ahat the Sub-Contractor shall also comply with all the provisions and
obligations of Contractor in this Contract. Failure of the Sub-Contractor to comply with any
provisions and the obligations thereof shall he deemed as the failure of Contractor to comply
with its obligations and/or provisions in this Contract.

16.4. The Company, at its discretion, may assign, transfer part or all of the rights and
obligations in the Contract to any of its Affiliates. Such assignment or transfer shall effective
on the (late the assignee agreed to he bound by the terms and conditions of this Contract.
Therefore, Company, %vithin 7 Working 1)ays from such effective (late shall give notice to the
Contractor.

Coal Mining Contract rat, IS of If

036,Inc/I,G1,/05
ARTICLE 17: COOPERATION
The Contractor shall strictly comply with all instructions of Company or Fngineer/Geologist
and the Contractor shall, at its best elThrt, avoid any actual or potential conflicts with any
Persons and in good faith provide all necessary and reasonable coordination and cooperation
with:

(a) any other contractors, Sub-Contractors and their Persons employed by the
Company with respect to the Coal Mining Operations;
(h) Persons of the Company;
(c) any duly constituted authorities engaged by Company in connection with the
Services.

A RT I C L E 1 8 : N E G AT I O N O F EM P L O Y N I E N T A N D A G E N C Y
The Parties acknowledge that the Conti actor is an independent party and for the purpose of
this Contract, Parties agree that Contractor is not a partner, employee or agent of the Company.
The Contractor is not entitled It) hind or to present the Company in whatsoever
circumstances not it shall act on behalf of Company unless expressly authorized in written by
the Company to do mi.

ARTICLE 19: EVENT OF DEFAULUS

Any and all acts of Contractor hereinafter shall he considered as event of defaults:
a. The Contractor become insoklent, bankrupt or shall be brought into the
bankruptcy procedure, or being a juristic person, or shall go into liquidation (other than a
voluntary liquidation for the purposes of amalgamation or reconstruction);
b. Failure to comply with any of the obligations in this Contract;
c. Misrepresentation of Warranties and Undertaking as stipulated in
Article 6; 4. Failure to comply with its Covenants as stipulated in
Article 7; c. Breaching any of the provisions in the Contract.

ARTICLE 20: NOTICES

Any notice to be given in writing pursuant to this Contract, shall be deemed officially accepted
either by its delivery by hand to the relevant Party's representative appointed under Article
15 or by its delivery by facsimile or prepaid post to the relevant Party's address set out in
this Article, service of any notice shall he deemed to have been given or made:
(i) at the time of delivery when delivered by hand;
(ii) two working days after posting by prepaid post; or
(0) immediately upon production of a transmission report by the machine from
which a facsimile transmission was sent indicating that the facsimile was received in
its entirety at the recipient's facsimile number; as the case may he.

PT. JORONG BARUTAMIA GI ESTON

: I,ikit Pongpa-Ngan
Contact Person

Address : 2TMI Floor, Ventura Building, .11. R.A., 26, Outer Ring
Kartini No.
Road, (.'ilandak, Jakarta 12430
t
Telephone 14,
: (02 I) 75912259-64 1

Coal Mining Contract rage /6 al 19

c
036_.1111G/I.G1105

-
Facsimile : (021) 7504589-90

Site Office
Contact Person : 1,ikit Pongpa-Ngan

Address : .1 1. A. Yan i Km. 1 03, RT. 07, No. 2 86, Ursa Swarangan, Kccamatan
Jorong, Kabupaten Tana!) Iaut , Pelai llari 70 882, Kali mantan Thrum

Telephone : (021) 51222394-5

Facsimile : (021) 5269660 ext. 6045, 6046

PT. RUAM CHOKE PATTANA

Contact Person : Mr. Effendy I lerman or Mr. Doddy Sanyoto

Address : 8 111 Floor, World Trade Center, .11. Jenderal Sudirman kay. 29, Jakarta
12920, Indonesia

: (021) 5206315
Telephone

Facsimile : (021) 5207750

NPWP

ARTICLE 21: TERNIINATION

21.1. Termination of this Contract shall in effect upon condition as billow:
(i) The expiration of Terms of the Contract and subject to Article 3; or
(0) The Company terminate this Contract in whole or in part at any time without cause
by notice in writing to the Contractor specifying the effective date thereof; or
(i) Any Event of Defaults stipulated in Article 19 which is not remedied by or
within 2 (two) days after receipt of the notice of Company; or
(ii) In the l',vent of Force Majeure as stipulated in Article 14; or
(iii) Ilpon mutual consent by Parties and with notice in writing not less than one month before
the effective date of termination.

21.2. The termination shall not release the breaching Party of its obligations in this Contract
and its liabilities to bear damage, Costs occurred thereafter and to remedy the other Party
from any damage or Costs incurred.

21.3. With respect to (Inc termination made hereof, Parties agree to waive the provisions
stipulated in article 1266 and article 1267 of Indonesia Civil ('ode.

ARTICLE 22: SETTLEMENT OF DISPUTES

22.1. Any dispute arises under this Contract shall he notified by the disputed Party to other
party and first settled amicably for the interest of Parties. Any resolution made shall be
recorded in writing, signed and shall he final and binding for Parties.

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0363HG/1A:1./05
22.2. In the event Parties could not amicably solve the dispute, within 30 (thirty) Working
Days from the date of dispute notification, the Parties hereby irrevocably and unconditionally
submit the dispute to the Arbitration stipulated in Article 23 below.

A R T I C L E 2 3 : A R B I T R AT I O N
23.1. Parties agree to submit the dispute to the Singapore International Arbitration Centre
(SIAC) under the 11NCITRAL Rules of Arbitration proceeding.

23.2. The arbitration tribunal shall consist of 3 arbitrators who will review, evaluate and
makt1 decision on the dispute. Each Party, within 30 (thirty) Working Days, shall appoint
one arbitrator to represent itself. Such appointed arbitrators shall, within 30 (thirty) Working
Days, appoint the third arbitrator. In the event the arbitrators failed to appoint the third
arbitrator within the stipulated lime, the third arbitrator, within 14 (fourteen) Working Days,
shall be appointed by SIAC under the Ill\J(TI RAI, Rules of Arbitration.

23.3. Arbitration tribunal shall use Indonesia laws as the choice of law. All the fees, expenses,
remuneration stipulated in the arbitration tribunal award shall be borne by the loosing party.

2-3.4. The Parties hereby agree that the arbitration tribunal award shall be final and binding.
The award shall be executed in any court of any jurisdiction. The loosing party of arbitration
award hereby waives its rights to challenge or revoke or cause to revoke such execution in
whatsoever way.

A R T I C L E miscul,LANEOUS
24.1. Failure of Contractor at any time to perform any of its obligations under this Contract is
not a waiver on Company's right at any later time to insist on performance of that or any
obligations under this Contract.

24.2: If any provision in this Contract is held to be invalid, unlawful or incapable of being
enforced by reason of Laws or public policy, all other provisions in this Contract which arc
effect shall remain in lull knee and erred. In the event any portion or all of this Contract is held
invalid, the Parties agree to negotiate in good faith to reach an equitable solution.

24.3. This Contract is construed in English language. In the event any translation is nade, any
conflict or inconsistency arise from the translation and the English version, the English version
or text shall in all cases prevail.

24.4. Any provision in this Contract may be modified from time to lime by amendment or
addendum,',subject to such amendment or addendum is approved in written by Parties,.
I lowever Parties agree that Company may, at its discretion, make alterations of the Contract in
order to meet its economic benefits and therefore the Contractor shall comply with such
alterations as follow:
a. Increase or decrease on the quantity of any and all parts of the Services
including but not limited to the quality and quantity of Services, acquisition
of additional workmen, Scope of Works, any other adjustment required to
be made due to the conditions and situations in Site.

Coal Mining Contract rage IR of 19

036311G/I,GIJ05
 h. Accelerate or decelerate speed of the performance of any or all parts.of the
Services.
c. Change, adjust the nature or manner of the performance of Services.

24.5. This Contract, and amendment thereafter (as the case may be) shall represents the
entire Contract between Part ies and any previous verbal or written communications,
correspondences, notes, Contracts shall he deemed invalid and cease to effect.

24.6. This Contract shall be governed by and construed in accordance with the laws of the
Republic of Indonesia

IN NVITNESS WHEREOF. 111c Parties have caused this Contract to he executed under 2
original copies, each copy is duly stamp and having the same legal effect, signed by Parties on
the date on the date firs( mentioned above.

i
For and on behalf of vr an d o n be ha lf o f
JORONG BARUTANIA CRESTON ,
e...T. RUANI CHOKE PATTANA
Mr. Somyot Itlichirnwat
President Director

N1r.
Effendy !kerma') President Director

-
1 , I /

gar-n-oto
Mr. Likit Pongpa-Ngan
Director 'Witness

Coal Mining Contract rage 19 of 19

036_.InGVIA:1105
AN NEX 1 - SCOP E OF NV ORKS

1.1. 'Fop Soil Removal activities

1.1.1. Digging
a) the Contractor shall use the I leavy Equipments to excavate, remove the lop Soil from Working
Area.
h) The Digging activity shall born time to time comply with the Schedules as described in Annex 4 -
('ontractor's Works Plan.
c) Operators shall Iron, time to time coordinate and comply uith the instructions of Frigineer on the
method, exact coordinate of Digging. 'the Digging activity shall he conducted in a good manner to
prevent any incident or land slide
ill Operators shall coordinate with any Persons at the Working Area and to comply with the flows of
any activities therein in order to prevent airy disruption on Coal Mining Operations flows.
e) Contractor shall provide sufficient tower lamp and its power thereof, at the surrounding Working Area.
1.1.2. 'Fop Soil Removal
a) Contractor shall use Heavy Fmripments to load the lop Soil and transport it to the Spreading
Area
h) ('ontractor shall provide a sufficient work flow to prevent :my gneue of the Dump Truck at the
Working Area and Spreading Area.
c) 'Hie Dump 'Frock shall only use Road Top Soil Removal to transport/deliver lop Soil
to Spreading Area.
d) If , during the Top Soil Removal activities, any lop Soil fall/drop/spill from the Dump
Truck, the Contractor shall immediately stop and re-load such 'F011 Soil back into the Dump
Truck.
e) I he 'Fop Soil loaded into each Dump 'frock shall not exceed from the capacity of the
Dump l ruck and Operators of I leavj , hpripments shall use its hest elhnt to trim the loaded fop
Soil.
0) Operators of- Dump 1 tuck. dining the transportation of lop Soil to Spreading Arca, shall from
time to time handle with due care of its loaded Fop Soil, to prevent any drop of the lop Soil along the Road Top
Soil Removal.
f) Conn actor shall provide towel lamp at the Working All'A and Spreading Area
g) Contractor shall provide all communication gadgets fin Key Management Personnel in
order to distribute the information and instruction of Engineer accordingly, during the Services.
1.1.3. Spreading
a) Helene unloading the Top Soil limn Dump 1 ruck, Operator shall coordinate with Engineer on the method of
unloading and Spreading the 'fop Soil.
1) . ) Spreading shall he conducted accordingly to prevent any land slide at the Spreading Area.
c) Contractor shall provide sufficient tower lamp and its power thereof, at die surrounding Spreading
Area.

1.2. Over Burden Removal activities

1.2.1. Over Borden Loading
a) . 1 he Contractor shall use the I leavy Equipments to excavate, remove the Over Ilurden Soil from
Working Area.
h) Contractor shall use I leavy Equipments to load the Over Burden Soil into the Dump Truck.
c) The Ditzging activity shall from time to time comply with the Schedules as described in Annex 4
Contractor's Works Plan.
(I) Operators shall from time to time coordinate and comply with the instructions of Engineer on the
I110110(1, exact coordinate of Digging 1 he Digging activity shall he conducted in a good manner to
P r e ve nt : ( i ) la nd s sl id e . ( ii ) e xc a va ti on or r e m ova l of a n y RO M in Wor k in g A r e a , ( ii i) a n y
incidents.
e) Operators shall coordinate %kith ;my Persons at the Working Arra and to comply with the flows of
any activities therein in order to prevent any disruption On Coal Mining Operations flows.
I) Contractor shall provide sufficient lower lamp and its power thereof, at the surrounding Working
A reg.
1.2.2. Over Burden Removal
a) Operator shall transport/deliver the Over Burden Soil to the Oil Allocation Area.

ANNEX I - ScOl'E OF WORKS rage I of 6

 19 During the unloading activity. Operators shall take precautions action of riot spilled any of the
Extracted Coal away limn designated place.
1.3.4. Stock Yard
a) In the event Operators are instructed to deliver the Extracted Coal to the Stock Yard. then Operators
shall tmload the Extracted Coal at the designated place for stockpiling
b) In the event Operahns are instructed to deliver the 1 inished ('oat In the Stock Yard, the Operator
shall load the Finished Coal accordingly and transport in such manner to the Stock Yard.
c) Operators shall coordinate with Engineer at the Stock Yard and to comply with the flows of any
activities therein in order to prevent any disruption on Coal Mining Operations flows at the
Crushing Plant and/or at Stock Yard.
(I) Contractor shall use Dump 1 ruck to deli er and transport the Extracted and/or Finished Coal to Stock
Yard.
i) Contractor shall provide a sullicient work flow to prevent any queue of the Dump 'frock at the
Stock Yard.
0) The Extracted Coal and/or Finished Coal loaded into Dump Truck shall not exceed front the
capacity of such Dump I ruck
a) Operators, shall hoot time to time handle with due care of its loaded Extracted Coal and Finished
Coal, In prevent any (hop/spill of any finished Coal along the Road Stock Yard.
I) If, during the deliver of Extracted Coal andAn Finished Coal to Stock Yard, any Finished Coal
and/or Extracted Coal fall/drop/spill from the Dump "ruck, the Contractor shall immediately stop and re-load
such Finished Coal am/or Extracted Coal hack into the Dump Truck.
In) Contractor shall provide all communication gadgets for Key Management Personnel in order to
distribute the inf o rmation and instruction of Engineer accordingly. during the Services.
n) Before unloading the Extiacted Coal and/or Finished Coal from Diimp truck,
Operator shall coordinate with Engineer on the method of unloading at Stock Yard. Contractor
shall consult and comply with all instruction of Frigineer on the technical matters of stockpiling
the Extracted ('oal and/or Finished Coal. .
o) Contractor, upon request from Engineer, shall dive. arrange and stock piled the Extracted Coal
and/or Finished Coal accordingly at the Stock Yard

1.4. Mine Dewndering

a) Fire Working Area shall always he in the dry condition, therefore Contractor at its own Costs shall dry out
any and all water/liquid/noel exist or (Mind in the Working Area. Such water/liquid/mud shall he dumped at the designated
location.
It) The Contractor shall give the priority to excavate, remove water and mud in the Working Area. Contractor
shall from time to time consult with Engineer on the method and performance of Mine Dewatering.
c) During the Process of Mine Dewatering. Contractor shall take precautions action to prevent Road Access of
becoming slippery.
d) Compactor shall make site the satisfactory Iedirmance of water pump used in the Mine Dewatering
activity.
e) ( 'ontractor shall construct or provide a sill ficient drainage lin Mine Dewatering activity.
I) If in the opinion of Company the (111;11161y andlor the quality of the equipment to per -limn the Mine
Dcwarcring activity is: (i) inadequate; or (ii) does not preside satisfactory result; or (iii) distract the
activities stipulated in section I t, I.?. I. of Annex - Scope of Works; or (iv) disturb the production
planning of Company, then the ('ompany may procure supplementary equipment fur the mine i)ewatering
and Contractor shall he champed to pay Corimany of USD 0.07 'tilted States Dollar seven cents) per 13CM
of Over flurdcn Removal per month in accordance to the Bill of Quantity stipulated in Annex 3 — Specific
Conditions.
g ) T h e C o n t r a c t o r s h a l l g i v e p r i o r i t y t o e x c a v a t e O v e r B u r d e n R e mo v a l . m u d a n d / o r C o a l H a u l i n g f o r
preparation of the lowest sump and internnnedialc cutup tH collect water in any pit. 1 here is no
dcwatering responsibility how the except in ncvertliclesc, the Contractor shall work
accordingly to the dewater ing plan made and directed by the ('ompany.

1:5. IN111i111C111111CC Activity

a) The Contractor shall conduct any and all actions to pen form day to day Maintenance Activity, to anticipate
any possibilities on the occurrence of any defect or any non confOrmity at (i), (ii) Iteavy Equipments, (iii)

ANNEX I - SCOPE OF WORKS rag, tof6

 Substitute Heavy Equipments, (iv) Work Shop and Contractor shall use its best aloft to prevent any disniption it
the Top Soil Removal activity.
I)) Contractor, during the I curls of Contract, warrants the Maintenance Activity shall he conducted in
good manner and professionally in order to keep (i), (ii) Heavy Equipments, (iii) Substitute Heavy hmipments,
(iv) Work Shop. in good condition to serve the purposes of this Contract.
c) 1 he Contractor undertakes and warrants to per limn the Maintenance Activity every day (as the case may be)
including at any national holiday, and any additional expenses or Costs occurred during such performance shall
be borne solely by the Contractor.

1.6. Work Shop

a) The Contractor shall maintain, clean the \Volk Shop thereol in a professional and workmanlike. Ilefore
construction of Work Shop, Contractor .shall submit a written request for Company's approval v‘hich w ill
be accompanied with drawings, specifications and other relevant data as may he required for such
approval.
I)) All facilities provided by Contractor in the Work Shop shall he deemed to he exclusively for the Services under this
Contract and shall not be removed without Company's written approval.
c) Maintenance Activity specifically on the (i) Ileavy l'quipments. (ii) Substitute Heavy Fquipments. (iii)
Work Shop shall be conducted in the Work Shop.
0) Contractor shall provide fuel tank in the Work Shop for its I leavy Equipments. Contractor shall be
liable for the safety storage of the fuck and it shall comply with any and all relevant Laws related to the storage
and management of the hazardous and dangerous articles.
a) Ole Contractor shall fake any and all necessary actions to prevent and anticipate airy danger that may
occurred from facilities in the Work Shop. Any hazardous and dangerous articles shall be stored in a safe and
secure place. 'the storage facility shall require approval from the Company and shall comply with the relevant
Laws. Storage shall be designed and built to limit and prevent: the spillage, fire, explosion, any accidents and
any effects that might occur thereof.
I) Contractor shall he responsible for sanitary and sewage treatment facilities. No raw sewage shall he
dumped directly or indirectly into any streams or drainages Treatment method of raw domestic sewage shall use
buried septic tanks or airy other method approved by ('ompany.
g) Contractor warrants and undertakes no any illegal activity shall occur in die Work Shop Any
and all behavi"r , ficr-Tigencc , actions/conducts prohibited by Laws or Internal Regulations shall he
deemed as illegal activity.
h) Within 7 (seven) Days alter the termination date of this Contract, Contractor at its own Costs shall
disassemble all the facilities, infiasttucture, buildings, installation whatsoever in Work Shop and leave the
location in good condition.

1.7. [heavy Equipments

a) "File Contractor at its own expenses and Costs shall purchase and provide all I leavy Equipments, Substitute
!heavy Equipments, Sparc Parts.
In this Contract I leavy Equipments shall be
For Top Soil Removal and Over Ilurden Removal activities

No. Equipment Numbc Nlirrimum Capacity

Excavator DAEWM) SI 500 5

2 Excavator PC100

3 Dump Truck 10 wheels 30 16 2(1 ton

Motor Grader ( 11211, Komatsu (,05

S 111111(107er I) 135 2

6 liulldozer 1)8 R

7 Water fink Truck 10.000-12000 Liter/unit

ANNEX I - SCOPE OF WORKS rage 4 of 6

 F or C oa l !h ol in g a cti vi tie s

No. Equipment Numbs Minimum Capacity

1 Ex ca v at or P C 4 0( 1

2 Pu mp !r uc k 1 0 wh ee ls 18 2(1 ion

F or Mi ne De wn ter ing
I unit of Water pump capacity 300-40(1 meter cubic per hour

b) Contractor warrant the I Icavy fquipments shall. from time to time, available to perform the
Services or any other \Yolks as required. Contractor undertakes and warrants all Heavy Equipments arc
available for such use, in good, sale and e0 - 16(10 working condition.
c) Company reserves the right to inspect any item of I leavy Equipments before and during the
course of the Services and direct the Contractor to remove born the Site any Ileavy Frpripments which is
deemed to: poorly or incorrectly omintained, unsafe, has a low percentage of effective, level of efficiency
not conforming to reasonable requirements of ( 'ompany. All the Costs for removal of such Ileavy
Equipments and/or replacement of Ileavy Equipments and/or installment of Substitute Heavy Equipments
shall he borne by Contractor.
d) If Heavy Equipment, Substitute Ileavy Equipments, Spare Parts, any associated materials,
operating supplies have to he imported . , Contractor shall comply with all I.aws related to importation of
goods and therefore shall at its own('acts prepare and obtain all relevant permits, licenses, documents
necessary to proceed with such importation.
c) All !heavy Equipments and Materials provided or brought into the Site shall he deemed to be exclusively
intended for the execution of the Services. Ilu-refine they shall not he removed out of Site without written
consent from Company.
f) Contractor shall. within 2 Days after the termination date of this Contract, demobili7e Ilcavy Equipments
out of Site and remove any and all equipments, Materials. wastes, rubbish out of Site including but not limited to
disassemble the Works Shop. installations, clean the working areas. Work Shop and other areas used or occupied by
('ontractor, remove all its Key Management P(151)1111(71 from Site and others.

I . S . Ke y I \l n n a g e u s n t P er s o n n e l
a) Contractor shall select and make available and appoint its •authorised representatives. during the
perliumance of Services and N.lainienance Activity at the Site; (i) Operators. (ii) Persons, (iii) key
management and engineering supervisory personnel to control and supervise the activities of:
operations, engineering, phoning, and accounting of Services ("Key Management Personnel'').
h) .
the Company shall have the right to approve or reject any Key Nlanagement Personnel employed by
Contractor. If the Company rejects any Key Management Personnel, the Contractor shall provide the
substitute and upon approval rum, Company, the substitute shall conduct its assignments as the official
representative of Contractor. Any such Key Management Personnel approved, shall not he removed
without ('ompany's written approval.
c) To the extent required by Company. curriculum vitae of Key Manapement Personnel shall be
submitted to Company. In addition, Company may require an interview with any of Contractor's Key
Management Personnel.
d) The Contractor shall provide manpower for operating 24 hours per day, seven days per week.
Contractor shall recruit and train Operators to reach the level of expertise needed for the efficient
operation of the Services. Contractor shall solely be responsible fOr its labor forces.
e) The Contractor represents and warrants that each and every Key Management Personnel is fully
capahle, experienced and qualified, mentally lit for their respective assignments, and shall perform the
Services as required by C'ompany.
fl 1 he ('ontractor shall ensure that its Key Management Personnel shall respect and abide any and all local
traditions, religions, custom of the community.
p) "Ube Contractor shall be held responsible for behavior and actions of Key Nlanagcmcn1 Personnel. 'f he
Company reserves the right to direct the Contractor to remove and replace any such Key Management
Personnel whose presence on the Site or any hreations is regarded by Company as detrimental to Company's
interests. Contractor shall at its own expenses, obtain a replacement who shall meet all of the requirements
of Company.

ANNEX I - SCOPE OF WORKS rage 5 of 6

5.
 It) I he ('ontractor warrants that Key Management Personnel shall always available as required to provide
Services. 1 he ('ontractor shall aft, ays appoint one competent supervisor per shift %Om shall maintain the
supervision over the performance of Services. t he appointment of such supervisor shall be informed in
writing to ' 0' 11 1 Y and
t he 0 1 1 sh a ll
a ll the time subject to ('ompany's approval. All expenses for transportation,
accommodation and all others necessities of
i) Key Management Personnel (both within or oinside of the Site) ',hall be the responsibility of
Contractor
j) l hr Contractor shall solely be responsible Iirr all health, ninny. death as well as compensation.
medical. hospital expenses, insurances of Key Management Personnel I he Contractor shall provide and
obtain all necessary insurances as required in this ('ontract.
0) The Contractor shall indemnify and hold harmless the Company from any disputesiclaimc/('osis
arising from the perfOrmance of Services in ‘x hatsoever causes brought by Key Management Personnel, or
their dependents or Persons related to Key Nlimagement Personnel
I) -
1 he Contractor shall pay the wages/salat it's and any other benefits due to Key NIanagement Personnel on a
regular and reasonable basis ("Salary'). Such payments shall be deemed independent and shall have no any
relation in whatsoever liana the payment of Invoice by Company. I he Contractor shall indemnify and hold
Company harmless from any dispute which may arise between ('ontractor and Key Management Personnel on
the Salary.
m) I C Contractor warrants that the conditions of employment and rates of Salary shall comply with
all labor Laws and are in harmony with those applied to other labors employed in the Site. 1 he Contractor
shall immediately notify the Company in the event a labor disturbance or industrial dispute occurs. The
Company may require the Contractor to attend meetings at the Site (Or the purpose of discussing such
labor matters.
0) I he Contractor shall not hire or attempt to hire any Persons of the Company while they arc still
in employment with ('ompany. I he Contractor is encouraged, to the extent practicable and reasonable, to
employ Key Management Personnel Born sources Within the area of the Site
n) Only Key Management Personnel directly engaged in Services shall be permitted to reside in
Work Shop.

1.9. Provisions of Information

a) 'Hie Contractor has been granted sufficient time and opportunities limn Company' to inquire information
related to the Services, Site and any relevant fact/situation thereof. therefore Contractor shall be deemed
to have inhumed itself and tire' interpretation thereof as to the correctness and sufficiency of the
necessary inhumation and factors in connection with pet formanee of Services in accordance with the terms
of this Contract, including but not limited to. the applicable standards of perhumance to which Contractor
must adhere, the time flame !Or successfully completing the Services, land/field structures, the geology
and topology structures of Road Access. Working Area and the Site such as (i) the burnt and nature
thereof, including the sorb-surface conditionsjii) the hydrological and climatic conditions, (iii) the extent
and nature of works and materials necessai y for the execution and completion of the Services and the
remedying of any defects therein. (iv) the access to the Site and the accommodation it may require. In
specific, the Contractor shall he deemed ni have obtained all necessary inhumation, risks, contingencies
and all other circumstances which might hinder Of ailed the COMplet1011 of Services.
h) With respect to the abovememioned, the Contractor ceitifies and warrants that it is capable of executing.
completing and perform satisfactory result on Services and Contractor shall not make any excuse or make
any allegation of the (i) incompleteness. or (ii) misunderstanding; or (iii) misinterpretation: or (iv)
miscalculation, whatsoever on the information obtained or given in section a) above.

1.10. ()tiler Act ivilks

a) Contractor shall perform and maintain the construction of nunol f interception ditches, temporary
or semipermanent watercourses and drainages shall comply with the go,H1 mining practice standards and
shall use qualified materials as defined by the Fogineer.
b) Contractor shall extingnished any lire occimed by spontaneous combustion in Working Area and
shall from time to lime coordinate with (ieolopistangineer to prevent any possibility on the rxscurrence of
such spontaneous combustion lire.
e) for the purpose of this Contract, any conduct/actions which is normally or customarily required to be
carried out or done by a Contractor to fulfill, satisfy and complete the Services, which is not expressly
stipulated in this Annexes of COTIllaCt, shall be co nsider e d as p a rt of the cont r act o r's Services.

ANNEX I - scum.: 01• wonKs rage of 6

ANNEX 2 - PRICE OF CONTRACT

2.1. Price of Contract

1 he Contract prices below are subject to the conditions as lollow.
a. Price of diesel fuel price ("Solar -) is 11m .1,0(10,- per liter
b. Minimum local labor cost ("Local IIMR -) is 1111( 600.000,- per person per month
e. the distance from Working Area to (i) 013 Allocation Area; or (ii) Spreading Area; or (iii)
Stock Yard; or (iv) Cinching Plant; shall not exceed 6 (six) Kilometers.
IF any of the price from items above mention e d c h an g ed , th e P r i c e of t h e Services in section 2.1.1. and section
2.1.2. below shall be adjusted in accordance to the formula set forth in Section 2.2 of Annex Price of
Contract.

Price of the Services shall he divided into works which are:

2.1.1. Over Burden Removal
The calculation for Over Burden Removal shall he based on the document delivered by Engineer in charge at the
Working Akett.
(Poh) UST) 1.03D) (One United States Dollar three cent point sixteen) per I3C.M
2.1.2. Coal hauling
'the calculation for Coal !larding shall he based on the document delivered by Engineer in charge
at the weigh scale.
(Pch) - USD 0.7 , 15b (I tinted States Dollar seventy fOur cents point fifty six) per metric ton.
2.1.3. Mine Dewntering
Pmd -- USD 0.0(l Inked States Dollar live cents) per IICM of Over Burden Removal if
the Mine Dewatering is conducted in Pit.

I hose prices above shall include items as lidlow:

a. Services
b. Maintenance Activity
c. Ileavy Fluipments
0. Substitute l leavy Equipments
c. Sparc Parts
Oils
g. Key Management Personnel
I t. I nsura nce s
i. Accommodation, Social wellares of Key Management Personnel
j. Withholding tax (1'1'11).

2.2. Formula Adjust ment to Contract Price

'lire adjustment of the Contract Price shall be determined by the billowing formula:
2.2.1. Over Burden Removal
the adjustment price formula for Over !linden Removal shall be
Pm, x (0.7 I 0.25(S,/Sn) 0.(15(11/1.0)

New Price of Over !linden Removal

Par, (IS1) 1.0316 per I3('M (lot I" Kilometer of Overburden Removal round trip distance) I
1151) 0.064.1 x (ever y additional one lull Kilometer of hauling round trip distance; a fraction of one Kilometer is
disregarded).
S r New Solar price nationa lly announce d by P Perla mina .
S o Current Solar price announced by P I . Perlamina which is 11)12. per Liter.
-- New Local I IMR ollicially announced by South Kalimantan government. --
Current focal 1 IMR which is 11/R 600,000, - per person per month
If there is retell( elevation between extraction and assigned disposal point, the different exceeded
elevation for every I (one) meter will be transferred to 41) (forty) meter in hauling round trip distance.

2.2.2. Coal Illorling

I he adjustment pi ice for mula for Coal I larding shall lie:
s (0.7 I 0.25(S,/S n ) I 0.05(1, t /1, 0 ))

ANNEX 2 - Price of Contract rage I of 3

 -'' New Price of Coal
US!) 0.7456 per metric ton (For I" Kilometer of Coal Hauling round hip distance) UST)
0.031)9 x (every additional one full Kilometer of hauling round trip distance - . a fraction of one
Kilometer is disregarded).
S r Ne w S o la r price n ati on al l y an n ou nc ed by P I . l'elm mi n 3
S, Current Solar price announced by P I - Per lamina which is 11)12 4,000,- per Liter
1,, - New Local 1 IMIZ officially announced by South Kalimantan government.
1, 0 -- Current Local 111 112 which is I1)12 600,000,- per person per month
If there is dif ferent elevation between extraction points and assigned weight bridge, the different exceeded
elevation for every I (one) meter will he transfer to 40 (forty) meter. in hauling round trip distance.

2 . 3 . M et h o d o r N lc n s u r e m c n t a nd M et h o d o f P a y m e n t
2.3.1. Method of kleasurcment
a) Contractor shall perform works of Services in accordance to the Schedules.
h ) E n gi n e e r s h al l f r o m l i n e • t o ti m e . h a ve t h e p o w e r t o di re c t l y s u pe r vi s e a nd d et e r m i n e t h e
correctness and the compliance of works 01 Services in accordance to Schedules.
l'onoactor, during the per formance of any works of services, shall provide a document with
information as follow flrport")
I. Date of the day and stalling hours to per form works of Services
2. Name of Operators on the day that handle such I leavy HIMPulcnis
0. D eta ils sta tu s, type . q ua ntit y a nd progr ess o f the S er vi ces
I . Def ect or n o n co nf o rm ity dur ing th e pet li um an ce w or ks of
S er vi ces
5. Any deviation on distance of Road Access
6. InfOrmation of weight/quantity loaded and unloaded
d) Every accomplishment on Daily Work. Operators shall sign and submit the
Daily Repoli to Engineer.
e) Company shall provide to Contractor, documents as hdlows: ("Supporting
Documents").
i. One original Invoice• with one copy
ii. Certificate of quantity of (her Burden issued by the Company
iii. Certificate of quantity of coal issued by the Company
iv. Certificate of Price adjust meal of Over Burden Removal and Coal !
tattling by the Company
v. 1 he penalty or deduction by the Company (if any)
vi. Others document issued by the Company
1) At the end of each respective month, Contractor shall submit the Invoice with the Supporting
Documents to ('ompany.

2.3.2. Method of Payment

a) the Company shall calculate and verify the amount payable in the Invoice based on
Supporting Documents of the respective month. II any discrepancy arises in such
verification, Parties agree that infor illation in the Supporting Documents shall be the
sufficient true and correct evidences, therefore Invoice shall he revised accordingly in
compliance with the Supporting Documents. Parties agree that the Invoice shall ht• in
(tuned States Dollar currency vis a v is the payment nit the Invoice
11) Payment shall he made base on monthly volume measurement for Over 1111(flell Removal
and Coal !hiding. yet snub volume measurement shall not exceed from the calculation of
013 and
12010 specified in Section 2 of Annex 3 - Specific Conditions and the weight of Over
Burden Soils and/or Extracted Coal delivered.
C) 11 1C C ompany shall pay to the Contractor every calendar m onth following the procedure
below:
I. At the end of any working month of Services, the Engineer shall calculate and
clarified the actual total volume of Over !Widen Soils and Extracted Foal
delivered by Contractor.
fly I" Lay o. next month from Me month mentioned in item I above,
2. 11 I I 11
Foginecr shall linalired the calculation and. clarification of the actual total

ANNEX 2 - Price of Contract Page 2 of 3

 volume of (her !linden Soils and Fxtracted Coal delivered by Contractor in the
respective month.
1. By b i b R i b day of the next month f rom the month men ti oned in i tem I above ,
Contrac tor shal l deli ver the Invoi ce together w i th the Supporti ng Docume n ts.
4
. forty lice ( ) Dace ['inn' the day stipulated in r01111 1 above, the Company shall
stall the payment against the Invoice It the ',Avineri, date falls in the holiday, the
pa mem be made at the lust next Winking I My
e) Subject to section 2.4 2 a), h) and c) above,1 he Company shall pay the undi sputed po rtio n o f
amount in the Invoi ce.
I) In the event of termination of ("onlinet stipulated in Article 21 of Contract or Section 4.1.
Suspension of Work stipulated in Annex 4 Contractor's Works Plan. the Company shall
cal cul ate, at its di scteti on, the amount payabl e on the pro-rata basi s of the complete d works
on Servi ces acti vities per fi nmed by Contractor. the Company shall set off such amou nt
payable wi th all damages, loss, clai ms, ('rests incurred by Company as a resul t of the
termi nati on (as the case may be). I he Contactor hereby wai ved its right to contest the me th od
and/or amount paid by Company of such set
g ) P a y m e n t w i l l he e i t h e r b y e l e c t r o n i c funds transfer or by cheque or in any other method
d e e m e d c o n v e ni e n t b y C o m p a n y a n d w i l l h e de e m e d t o ha v e b e en m a d e o n t h e d a t e p r i n t e d
on the Company's remittance add ice notifying the C on t r a c t o r o f t h e pa y m e n t . I h e
C o m p a n y h el d no r e s p o n si b i l i t y o n any failure of the transfer of the funds made by the
h a n k o r an y t h i r d p a r t i e s .
It) In this Contract the Contractor het Ow stated the payment shall he addressed to:
Name of Bank : PI. BANK
Calumg
Accouul Identity : PT. RUAN1 CHOKE PATTANA
Account Number

2.4. Fu el S uppl y
a. h e C o n t r a c t o r s h al l p r o v i d e a c a f e a nd g o o d q u al i t y f u e l c t o t a r e t a n k w i t h m i ni m u m v o l u m e o f 1 7 0 , 0 0 0
1

l i t e r o r e qu i v a l e n t t o m o r e t h a n 5 0 " ' n i d i t s m o n t h l y f u el c o n s t i m p t i o n ( a s t h e c a s e m a y b e ) .
h. 111 order to support the (*ontractot '5 effective operation, the Company may supply the monthly fuel
consumption of the Contractor (as the case may lie).
e. In the event the Contrac tor acqui res any fuel f rom the C ompany. then the C ompany shal l se t-o ff th e
amount of such fuel (i ncl udi ng al l deli very expenses i ncurred i n such fuel ) fro m the C on tra cto r's
monthl y In voi ce . I he hid p r ice s hall be based on the pri ce bought by the Company fro m th e fu e l
suppl i er such as P T. P etta mi na or other s.

ANNEX 2 — Price of Contract rage 3 of 1

ANNEX 3 - SPECIFIC CONDITIONS

3.1. BILL OF FY

"lire Contractor guarantees that it shall comply with ;1111111;11 volume of IICM and ROM, which is calculated from quantity specified
in fable I below.

Table I

Overburden Removal RMI Est. & Ilattling

Yen r/tnont h
(I)CNI) (tons)

Jan 06 - Jun 06 1,800,000 .150,000

July 06- Dee 06 I .8011,000 451000

Jan 01 - Jun 07 1,200,000 300,000

July (17 - Dec (17 11,200,000 300,0011

G ra nd 'T o ta l 6,000,000 1,500,000

3.2. 1N'AIZICANT1' OF RATE IN T IIE BILL O f QUAN ITUN'

The Contractor guarantees that its perforniatice on Over Burden Removal ((Ill) and Coal !larding MONO Services

shall comply with the monthly quantity specified in Table II

below Table II l )nil : II CM / on

l'ettr / Year 20 05 Year 2(107 Year 20 08

Month
OH RONI OH ROM ROM OR ROM

Ja n 300,01)0 200,000 50,000

Fel) MHUMO 20(1,00(1 50,000

3.2.1.
M a rIf in a respectiv e month, 300,000
the Omit actor remove/deliver the ()II surpassing
200,0110 50,000 the specified volume (described in
I;lhle II illmvc), and such surpassing vnlnme does not exceed than 20 "/0 (twenty percent) of specified volume in the
Apr 300,000 200,00)1 50,000
respective month, then the Company shall pay the actual volume. II
Nlay 300,000 21)0,00(1 50,000

Jun 300,000 200,000 50,000

ANNEX 3 -J ul
Specific Conditions 300,000 200,000 50,000 rag, I (13
A ug 300,0011 2011,000 50,000

Sep 300,000 200,0011 50,0110

Oct 300,000 200,0110 50,000

Nov 300,000 200,000 50,000

Dec 300,000 21)0,0(111 50,1100

 3.2.2. II in a respective month, the Contractor remove/deliver the OH or ROM surpassin g the specified volume
(described in 'Fable II above), and such 11;1111p, V0111111e exceed than 2(1 7'. (twenty percent) of specified volume
in the respective month then:
a. For ROM, the company shall pay hir specified volume and its exceedin g volume without limitation.
0. For OB, the company shall pay in accordance to section 3.2.1. above, yet the partial exceeding
volume shall he paid in the preceding month.

3.2.3. If the Contractor fails to meet the volume specified in Bill of Quantity (described in table I aboxe),
specifically the cumulative yearly performance of 11CM which ends on the month of December of each calendar
year, then Contractor a grees that the Company shall he entitled to penalini the Contractor by deductin g the price of
Services in accordance to the formula below:

Annual total volume of 1301 and ROM Bill of Quantity described in 'fable I
Year 1" Total Volume of 11CM and ROM from 1" January 200h to 11" December 2006,
Vent 2"" . total Volume of 11CM and ROM from 1" January 2007 to 31" Deeemher 2007.
(each respective year ahovementioned shall be referred to as "Annual Performance")

Table III
Actual Over lillf(lell Removal as percenta g e of Actual Over 1111I (len DiSC01.1111 to Over Burden
volume of Over Burden Removal in the Bill Removal(11('M) Removal price per 11CM
of Quantity

, - 80'!'" lor the year 7006 2.88,1100 Not discount

80% for the year 7007 1,920,000 Not discount

Penalty US$ 0.10 per IICM

-. 80'',;, for the year 10(6 - 2,8811,111)f) from every IICNI short fall
from 3.600.000 IICNI

Penalty US$ 0.10 per IICM

80'!,;, trim the year ?007 . 1.920,000 from every BCNI short tall
from 2,100,000 IICM

Achill Coal Hauling volume as Actual Coal [tattling ( Discount to Coal Battling price
percenta g e in the Bill of Quantity Ion) per Ion
, NO li, lio the year 2006 . 720,000 Not discount
.., 80 ".ii lot the year )00(1 -. 720,000 Not discount
80 0,0 for t he year 2007 · 5-10,000 Not discount

· 80 "/ri for the year 2(8)7 5-111,11011 Not discount

3 2 1. Subject to the provision in section 1.7.1 above, Parties a gree as billow

a. If the Contractor fails to meet the volume of Animal Performance, Company shall impose penalty in
amount IISD 0.1(1 per WW1 on the shortfall volume of respective Annual Performance. the penalty shall he
calculated base on Fable 111.
h. The Company shall set off the penalty in a semi annually (2 times) basis from Invoices made in the respective
Annual Performance. First set off shall he in between I" January to 30"' June and the Second set oft shall he in
between 10July toll" December- rut the respective year.
c. If the performance of Contractor in Ins, half of Animal Per IMmance ( I" larmary to AO'h June 7(N06) is less
than 80"'n of I ,1;00,000 11(M (or less than I. 1 tomoo II('NI), then the Company shall calculate the penalty as of
IISD 0.10 per flUls1 against the shortfall volume from I .XII0JIMI ItCM. the Company then shall set off the
amount of penalty to the Invoice of June 2006's per for mance. !loss us er, it 1110 aCCIIII)111111011 nit the a111111;11
1'01 1n1IIMIle0 of the y0:11 1,C1.101 :1006 retries cc its gllatallteet1 (111;1111ilieS (Achieve 2,880,000 IIC1‘11„ the Companv
will return the deduction back to the (*ontractor in the invoice of December 2006.

d. If the performance of ('ontractor in first half of Annual Performance (I" January to 10'h June 2(107) is less
than Si)'/n of 1.200,000 11CM (or less than 960.000 11('M), then the Company shall calculate the penalty as

NMAT7. 3 - Specific Conditions rng• 1 of 3

 or list) OA() per 13CM against the shortfall volume from I ,:othono 11(•11. I he Company they, shall set off the
amount of penalty to the Invoke of June 21107's per h)1111111CC. ItIN% t.'% cr. if the accumulation of the
animal performance of the year period '007 ',Itilicku,4 guaranteed qtrdnfilic: (AchieNe 1,920.000 BCM).
the Company xs ill iettnn the deduction hock to the Contactor in the invoice of December 2007.

e. Contractor hereby waives its rights to challenge and revoke the calculation method on the penalty
described

3.3. Miscellaneous
a. If any volume of Over !linden Soils is miliied to build lamps. bunds • levee banks or other temporary
structures within the Site, then the Company shall deduct such volume of Over Burden Soils from the quantity
of Over Burden Soils transpotticiut kit in Over !linden Removal activities.
h. "I he Contractor warrants to herfnnr the Over Burden Removal in accordance to the Bill of Quantity. If the failure
to comply with such wattanty is caused by the flood or other abnormal weather that impact working
conditions in the Winking Atea, then the Parties art ce to discuss for adjusting the penalty rate imposed
to Contractor.
c. Parties shall every six month evaluate the production and penalty on the Services and shall also discuss
on
any operational distuthance/delectidisiuptionlmoblem and any matters at Site or working Area which is not
arises Iron negligence or default of any Party. Parties shall then in good faith and their hest effort to find the
solutions.

ANNEX 3 — Specific Conditions rage 3 of 3

ANNEX 4 - CONTRACTOR'S WORKS PLAN

4.1. Schedules
a) 1 he Cormaclor shall submit the 11111111111y Si 11111111e 11111 :1111111:11 CCIU•d1111' of (111:111 iwrnkc 011 StrVitt'S 111 111f•
.
COIllpally in (701111/11111CC W1111 A11ic'Ic 01ifinci.
Ii) Within 2 (Iwo) days after the end of each month, the Contractor shall submit to the Company a monthly
repot I on any part s of the work on Ser v i c e s dom. and the 11111 r t l : C C thereof
c) he Cmth ;lc" shall revise , amcmi "r chanrc Ow S c h e d u l e s 1 1 " 1 " time In lime when 1 1 - 1 1m:stud by Company
0) Contractor shall submil the revised Schedules within 7 (seven) Days from the day of such request
c) The ( . 0 1 " P a n Y m a y P r o v i d e yearl y. si r 111 0 11 0 1 . quattetly and monthly schedules of Coal !larding and 0% er Burden
Removal 10 the Conti auto, berme the commencement of each period. I he Company may also produce
monthly and weekly plans and daily extinction schedules for Services. I herefore the Contractor shall
comply with such schedules.
1) The Contractor shall he responsible for the day-today implementation of the Schedules including the drawing up
of such shot-term plans, sketches and schedules as Ric Fngineer may request to execute the Schedules and
tecoyer shottfalls in earlier pct humance. II the Contractor have mine design proposals which is believed 10
provide 111 0 1 t * /111/11111:11Ve. eC11111.11111C, CIII:Cli Ve or 0 11 C1 C 111 ( 11 ) C1 ; 111 0 11 , ; , 0 11 : 11 ( . 11111raCIOr shall
draw up and table such proposals for discussion.
g ) The final Schedules will he attached in this Annex and therefore the Contractor shall comply with such
Schedules.

4.2. Meeting and reports

a) . 1 he Contractor shall he requited to attend weekly meeting at the Site with the Company. I he time and place
of such meeting shall be notified to the ('ontractot by the Company. he purpose of the meetings shall be to
exchange informalion, provide ;rod revise (as the ease may be) S c hedules , identity conditions which delay
or may delay work progress nil SeI ci Ce C , and initiate actions to remedy such conditions. I he Parties shall
make minutes of meeting signed by the Patties or their 11: C111 :01 Ve : wiho riz ed representatives. the minutes of
meeting shall hind 11w Patties.
11) If at any lime it would appear to the Company that the Daily Report does nol confirm) lo the Schedules. the
Contractor shall produce, at the request of the ( . 1111111 al ly. a revi sed Schedu le s showing the modifications to
the Schedules.
c) Doting the performance. of Services, if the Conti actor intends lo revise any parts of Schcdoles, then before
tevision or such Schedules the Conttacho shall oluain written ;Ili/Irma' from ('ompany. 1 he approval from
Company shall he recorded in the minutes of the joint meeting with the signature of Parties.

4 .3 . Su sp e n s i on of Wo rk
a) . -
1 h e Co n t r a c to r a c k no w l e dg e s th a t th e C o mp a n y m a y, a t i t s di s c i c t i on , su s p e nd a ny a nd a l l pa r t s o f
t h e S e rv i c e s f o r c e r t a i n p e r io d of t i m e in s u ch m a n n e r a s th e C o mp a n y d e e m e d n e c e s s a r y. I h e s u s p e n s io n
s h a l l t ak e e ff e c t a s o f th e d at e o f I u t t e r of In s t r u c t io n . I l i m n s u c h s u s p e n s io n, t h e C o m p an y sh a l l p ay t h e
o ut s t a nd i n g wo r k s co m p l e t e d hy " on t r a c l o r 111 a c c o r d a n c e 111 s e c t i on 2. 4. 2 . t r. l e th od of P a y m e n t o f A n n ex 2
P ri c e of c on t r a c t . No c l a i m I M c o mp e n s a t i on . Co s t s o r d a m a g e d u e t o s u c h su s p e n s io n s h a l l he m a d e
a g a i n s t t h e (' o m p an y.
0) In the event the Company within two months Born the date of acceptance 1111 1111( 11 C 111113 b l e
I nv o ic e , fails to pay of the outstanding Invoice and without re medying such firilurc nnilhin 30 days
thercaner. the Commas) may, 3 (three) Days u po n n 11 } 11111 , : t i l i 111 W I I I 1 C 11 n ot i c e 111 Company on such
failure, suspend the Services. No any other payments or Invoices shall be inquired hy Conitactor dining the
suspension except the outstanding Invoice which has alleady accrued !rehire the sir:p e n sion
a) I he Company shall, as S o n o as it heromec ;male Iluit the reason hum any suspension no longer exists.
direct the Contractor to resume the Services. I he Contractor shall, then. promptly comply unit the directions
and instructions of the Company and all the terms and conditions of the Contract,

4 . 4 . ' t r a ff i c o n R o a d A c c e s s a n d P u b l i c R o a d s •

ANNEX 4 — CONTRACTOR' S WORKS PI.701 Page 1 of 3

 a) All activities necessary for the execution and completion of the Services shall, so far as in compliance with the
requirements of relevant permits, he carried on so as not to interfere unnecessarily or improperly with: (i) l he
convenience of the public, or
he access to, use and occupation of public or private roads and footpaths or
properties whither in the possession of the ( .ompany or of any other persons he Contractor
shall hold haimless and indemnify the Conttactor in respect of all claims. procet•din)(s.
damages, Costs whatsoever arising out of or in relation to any such matters insofar.
0) I he Contractor shall use suety reasonable means to prevent ;my (1;1111;lge or (10(:1 to the
Road Access or airy public toads neatby the Site due to the perfiamanee of Services by Contractor or
any of its Subcontractors, and in particular, Conttactoi shall restrict or limit the loading capacity of
Heavy bquipments in such ways and manners to ensure that the trail lic arising from
delivery/transportation of Materials, Equipments, Extracted Coal, Finished Coal, lop Soil, (her Runlet'
Soil, v. actes and others it Site shall not harm/damage snub Road Access and public roads.
a) Where the nature of the pen fiuMallee of the Services requires the use by the Contractor of
waterborne transport, the word - road, Road Access'' in section a and In the above shall he construed as
river, canal and other waterways, and the woof "lb•avy Equipments" includes craft, barge, tog boat and
shall have the same ef led accordingly.

Surveying
a) flefore commencement of Contrite!, Parties shall independently satisfy themselves that permanent survey
stations and the topography cc ithin the Working Area to he mined are known precisely. At the end of each
calendar month throughout the term of the Contract, the bngincer %%ill carry out a mound survey of the
Working Area, waste clumps and the ROM stockpiles, and to monitor the progress of Services during the
month. 1 he data born this survey shall be used to prepare monitoring plans on the Working Area, waste
chimps and to calculate the total quantity of material excavated and placed during the said month.
h) 1 he Contractor may conduct 'a simultaneous survey. Volumes of removal will be calculated by the
difference of accumulated volumes in !Heretic': to the original surfaces. Parties will hear its own costs of
carrying out the monitoring conveys, calculating the quantities and preparation of the plans.
c) If 'emu:sled by any Party, at die end of any quarter year, an independent registered snrveyor may be
engaged to carry out a monitoting survey and III calculate the total quantities of material excavated from
the Working Area and placed on the waste dumps. I he patty . requesting the independent survey will he
responsible for all costs associated with the survey. Should such a survey reveal discrepancies the issue
will be resolved by negotiation between Parties.
b) The volume of coal will he detettnined by the Engineer by day to day measurements of coal
thickness mined and Ihc surveyed area mined. Any coal remnants, low quality coal, paitings'and overburden
leR in the Working Area will be SII1Veyed I hose (11111111MCC Will he deducted from the total volume
moved in a period to determine the volume of nicer butden moved and the !cower y of anticipated in-situ
coal.

4.6. Arrangements Upon Completio n of 110 1 of Quantity

a. At the completion movement of the material defined in the Rill of Quantity, if there is surplus of coal refraining
within the area designated in this Contract, Ihe Fingineer may direct the Contractor to mine and move this
coal. 111 the event it is (1151('11Veted 111;11 the additional Over Modern Soils must be moved to allow the
Contract.
mining activity at Ihe coal, snch excess ()%cr Ilurden will he paid at the unit price of this
h. Should the contracted tonnage of coal be attained before the contacted volume of Over Burden is moved,
the Company may elect to curtail the Over Borden volume specified in the Rill of Quantity Annex 3 Specific
Conditions, to sonic lesser figure and/or direct the Contractor to Mille 1111(1 move similar quantities of
()vet Horde!' outside the \Votking Area
c. he estimated cost of all or part of tellandling and Spreading within the scope of this Contract, which arc
failed I() be performed by the Contractor due to Ihe completion (late of this Contract, shall be deducted
against :my outstanding amounts doe to the Contlactor. Similarly all or part of tine estimated cost of
removing facilities, Imildings, storentres, disassemble the \‘'otk Shop and lehahilitaling those areas used by
the Contractor to condition accept:1111e to Higincer, shall be deducted from outstanding amounts due to the
Contractor. I his provision includes cleaning out settling ponds, slurps and wales ways contaminated by the
Contractor.

ANNEX 4 - CONTRACTOR' S WORKS PLAN Page l njJ

4 .7 . Re mo v al o f I mpr ope r NV or ks
The Company, Frogineer or Geologist shall, dining the per IMmance of the Services, have power to order the Conn actor from
time to lime on:
(a) I he removal from the Site. within such time or times as may Ire specified in the order, of any
mat" ialc• which, in the opinion of the (*
timillanY• l'ilf!inery • "ctd"ricl, are riot in coill“rmaiwr
with the assignment under tins Conn:rut
(hi) I he s u b s t it u t i o n
with 1""Put and cuilahic malcriak and
(c) the removal and proper re execution, notwithstanding irl any previous test thereof or interim
payment thetefore, of any work ‘xhich, in respect of nhalerials or workmanship is, in the opinion
of the Superintendent • not in accordance with this Contract
In case of default on the part of the Contractor in carrying out such order. the Compato, , shall he entitled to
employ and pay other persons to carry out the C;1111(`, and all Costs arises shall be recovered from the
Contractor, or may be deducted by the Company horn any money due or which may become due to the C.ontr.
actor.

4.8. Miscellaneous
a. .1 he Company shall stipulate the working time on the Site and any variation to the time shall not
he effected without approval of the Company. I he Contractor shall, in all dealings will, labor in its
employment, have due regard to all recognised festivals, days of rest and religious or other customs
b. The Contractor shall immediately notify the Company in the es ent a strike or industrial dispute
occurs. 1 he Contractor may he required to attend meetings at the Site called Fry the Company for the
purpose of discussing labor mane's.
c. In the event of any breakout of illness or of an epidemic, the Contractor shall comply with the
order, instruction or demand of the governmental bodies, or the local medical or sanitary authorities for
the purpose of dealing with, and overcoming, such epidemic
d. The Contractor is encouraged to the practicable and reasonable extent, to employ stall and labor
from sources within the local area and provide the transportation, housing, meals and other necessary
facilities to them at its own costs and expenses.
e. Ilefige the Commencement !late, the Conti actor shall hunk), the Company ‘x jilt the copies of the
necessary licenses to the operation of the I heavy I:quipments and the Services hereunder and shall ensure
the validity of such licenses during the performance of the Services. In addition. the Contractor shall
require its ()pet alms to have and maintain all IIINeticmy and valid licensee In operate the piece(c) of the
Ileavy Equipments lit which they are assigned. I he ( 'ompany shall have the right, at any time or from time
to time, to inspect the license of any or ( )per alms and the other licensesfper

ANNEX 4 - CONTRACTOR'S WORKS PLAN Page .1 of 1

ANNEX 5 - SAFETY REGULATIONS

In order to enhance the safety in the working site. Inn prevent or minitni7e any kinds of (huge; and to abide by the
policy of Company's group and by the occupational health and safely I awe as well as safety regulations. Contractor
shall, limn time to time, comply with all Internal Regulations and upon requested by Contractor. the Company supply
a copy of Internal Regulations.

Hie Company hereby sets up several 111.111111CIS of Ilitteillt CS With which (.0111trICIM Chan comply strictly. such ac 5.1.

Safety and Health

a. 1 he Contractor shall adhere to the I aws on safety and health. as well as the working procedures sct forth
by the Company from time to time lirr the purpose of working safely in the Site.
0. The Contractor shall prepare and submit to the Company the operational plan for occupational health and safety
in respect of Services.
a. The Contractor shall acquire a safety trpdcct who is in charge of the occupational health and safety
in the Site and is responsible for matters arising in !elation to or in connection with the occupational
health and safety.
b. Conbactor shall, to the extent tegnired by the nature of the Services, finnish Key Management
Personnel with Company's standardi7ed safety equipments, including but not limited to, hard hats, safety
hats, safely shoes, hand gloves, respiratory masks and other protective equipments
b. I he Contractor warrants that Key Management Personnel in Site shall. at all limes comply with the
Company's safety regulations or thief:lions/no:Unctions of (;colorist regarding safety. including at all times to
wear protective clothing, head covering. safety glasses. footwear, safety belts. respirators, and handling of
toxic-substances.
I. The ContractorI II
sAa.. furnish tools, 111:1Chillect and elltripttlellt With proper and safe conditions.
g. I he Contractor shall arrange to have all Key 1\ lanagement Personnel trained to develop their competence to
fit their jobs.
It. .1 he Contractor shall provide sale means (if access to Key Management Personnel to all places directly
related to the Services.
i. The Contractor shall keep Key Nlatiagenu•nt Personnel midetsiand and aware of dangers and risks
associated to their work and know how to control then) the Contractor shall provide first aid training to Key
Management Peisonnel prior to the ccoks on Services and shall therefore annually refresh the training to Key
Management Personnel.
j. 'Hie Contractor shall supply and at all tittles maintain ink:gnaw first aid kits at places reasonably accessible
to the Site the Contractor shall have available a properly equipped rescue vehicle or shall have arranged the
services thereof. Contractor shall have pet sonnel available on every shift who are trained in emergency
reSCIIC.
k. The Contractor shall have arranged for medical evacuation services to be provided if and \Oen needed.
As a minimum, these provisions r egarding fir st aid will comply with the Indonesian Mine Policy Regulations.
-
Hie Contractor shall notify the Company as soon as practicable abet the event, of any accident that may
result in any employee being absent from work for a shift or chills, following the accident Where a lost time
injury results from an accident. the Colmar - tor shall provide the Company, within 2'1 (twenty-lien) horns s i nc e
th e
accidulll , a detailed "Till" report of O re
a cc ide nt
Where a Personal injury has been sulfered or damage to
ptopetty has occurred, the Contractor shall ensure that the property is not disturbed in any way until
authoti/ed by the Company. except as is necessary to remove injured persons or to prevent further damages
from occulting.
I.•I le fontractor I II
not at any time leave any works Or partly ClItlIrletell works III an unsafe condition or in a
condition which might cause personal jinni y or damage to other existing works, Plant. machinery or
egnipment but shall continue that works fir pantly, completed works until it is at a safe stage. Contractor
shall comply with all directions 01 the Company in that regard.

m t h e C o n t r a c t o r s h a l l m a k e a v a i l a b l e t h e h a i a r d w a t t l i n g s y s t e m e n s u r i n g t h e t yp e s a n d c o n d i t i o n s o f
haiardotts materials as well as the C011tlitilltiC of 1001 ,:, erplipliiellt. electric appliances and places
'elated to occupational safety and health. 1 he wattling may he made by means of symbols, posters. light & sound
signals, which are (linable. easily ondetslandable. noticeable and in a (Mina, of the official or international standard.
n. 'I he Contractor flow time to time shall allow the Company Inn inspect the safety system in the Work Shop,
and theiefote the Contrachir shall so icily follow the recommendations made by the Company.

ANNEX 5 — Safety Regulations rage 1 eI4

 o. The Contrac tor shal l repoi t to the C ompany on thei r conducts in respect of occupati onal heal th an d sa fe ty o n
a monthl y hasi s. l he repot' !mi st covet i t l east the fol low i ng issues:
i. lhe teettll of the implementation tinder the safety plan;
he statistics of accidents and details of incidents, investigations and remedies; and
i i i . 1 h e o u t c o m e , : o f t h e so l u t i o n , : t o t h e pi t i b l e m e r e g a r d i n g o c c u p a t i o n al h ea l t h a n d s a f e t y i n cu r r e d
d m M g t h e p i e vi o u s ; i d i o t !
1). The Contractor \Nall be subjected to punishment from the Company it the condition of occupational health
and safely is violated or ignored 4 he punishment may he done by one or more of the follmving means:
- Warni ng letter
Suspension of \\auk/denial of access to the site
l e rm i n at i o n o f t he C on t ra c t
Blacklisti ng

5.2. Security
a. 1 he Contractor shall he responsible for protection on the performance of the Servicee, the outcome for coal) of
which may be exposed to damage how the %.eather and otherwier, it shall make available the proper
fencing. guarding, and ci.ateting of ihe works relating to the Services. a n d provide temporary roadways,
footways, ;maids and fences ittchcuciop notices and signs to the extent necessary or expedient for the pet
for mance hereunder and for the accommodation and protection of pedestrians, vehicles, persons and
properly in the Site and neathy areas.
h. 1 he Contractor shall take all reasonable precaution ,: againet, and he responsible to the Company for, loss of
or damage to the coal arising Flom any came whatsoever.
c.
.. Acre public utility system, o\ erhead utility lines, mold mound pipe s. conduits or cables exist on Or in the
vicinity of the Site, the ('moat-tor shall lice every endeavor to locale their existence, and to take care and
protect the same hom damage. In the event when damage !hetet() arises, the Contractor shall report it
immediately to the Company, and catty out ()tomtit and reasonable repairs and/or replacements as may be
necessary at its own expenses.
d. Seven (7) days before the Conti :toot begi ns: the pet [outland: accordi ng to the S chedul es app ro ve d
under Alli cle 4.1 of Contract. Conti :10m shall obtai n from the Company a permit to commence me nt, which
petini t shall require the Contractol to sati sfy the trims and condi tions of the Contract including bu t rio t
linaiIcd to the compliance with all the provisions in this Annex 5 Safety Regulation
0. In the absence of the Contme tm ri t i ts teptesentati ve, the Company May take such a cti o n a s i t
consi ders necessary lo prevent l ose of or damage to the coal or coal pi mil li : Mi n or a n y p a r t o f th e
proper ty or any i nj ury or the C ompany or the Contrad m. II the Company determi nes tha t th e a cti o n i s
ti nder the
responsibility of the Conlractot, diets and expellees incurred by the Company shall be reimbursable by
the Contractor on demand.

5.3, Environment
a. Contractor shall comply with any and all requirements elipulated in environmental analysis assessment or
Company ("A1s11)A1,-).
h. A ny noxious, toxi c or othem i ce hi tiai dons w aste and dangerous materi al s speci fi ed as su ch b y th e
C ompany incl udi ng Mi nk:i nk, ri ds. pl ease and contai nde of such materi al s shall be de p o si te d by th e
0) 111 mi :tor ‘ vi thi n etinabl e :w ormed contai ner , : provi ded by the C ont ractor for thi s purpose a n d sh a ll be
disposed of by the Collo:Him outside the Site ('ccorrador shall ellsote that oils, grease or other
ln;atcus and &mitt:Ione mate! tale are not spilt Or U1)111:11111tUlle ens ironnucnl bra the event of spillage,
the Contractor shall remove any soil ;Mei led by spillage and make good the area to the satisfaction of the
Company.
c . K e y 1 \ - - l a i l i Te l l i e n t r e t s l i n l i e l s h a l l n o t l i t t e r ; m y a n d a l l c a n s . b o t t l e s . c a r o m s , p a c k e t s . p a p e r, d e b r i s ,
rubbish, garbage and others during the Set vices. No litter shall be discarded in the bush and it shall he the
responsibility of the Contractor to dispose litter left by others in Site. Contractor shall keep the Site free
b r i m a l l u n n e c e s s a r y o b s t r u c t i o n a n d s h a l l s t o r e o r d i s p o s e ( 11 a n y s m i t h ' s o f m a t e r i a l s , c l e a r a w a y a n d
remove Flom the Site any WI ut t; 111}Illich 1111 101Iref remlited All waste materials (including concrete.
lortirwotk, steelwork and Ilie like) chill he removed horn Site, Work Shop and deposited in an arca movided by the
Company. At the end of the I elm of Contlact, the Contractor shall clear away and remove all Frpiipments horn the
Site. surplus material and itibbieh ol evei ,, , kind, and leave such part of the Site a clean condition to the satisfaction
of the Company.
(I. *I the (*()11111CIOr and Key Klanagement Personnel shall take lit Ti•;1•;(”131)1C tIlCaCtIret to grcctcd•
and shall comply with all environmental I news he
Contractor
shall also comply with
enviommental protection meneutes directed by Company. All wildlife is protected. Whilst the area is not

ANNEX 5 - Safety Regulations rage of 4

 declared as sanctuary, it shall also he treated as such Shooting. napping or camping is prohibited.
Ilurniog of slash will only be allowed v hen authori/ed by the Cl )logics and approved by local authorities.
No cutting down or removal of any plants in the Site is allowed ‘vithout Company ' s permission.
C. The importation or glints. weeds, grasses, and soils into the Site Or taken Out hour the Site shall not he
permitted. No its are 1)(111611(11 in the Site.
1 he Company ' s permission shall be required behne coning down, breaking down or lopping of trees In
scrub is to he undertaken I() clear the Site Only marked trees shall he removed under the direction of
the Company and only such trees necessary Ihr the execution of the Winks, •
I he removal of native
shrubs and plants or picking of wild Ilimcis shall not he peimitted Any tree removed without permission
shall he charged to the Contractor. at I IS ' kl,000 per tree and deducted lion the Contractor ' s next invoice
fin payment.

5.4. Conduct of 1<cy Management Personnel

a. ' the Contractor and Key Management Pelsonnel shall not use in have in possession any and all dangerous.
hazardous articles or any illegal articles such as dings, psychotropic drugs. intoxicating substances, liquor
and ° he"
' rilc"r"ic• long knives. "th"
tools tin h u n t in g . including but not limited to: pistols, rifles, cross bows, bows-
and-arrow, snares, traps, poisoned bait, and others. No alcohol drink is allowed in the Site Drunk driving
will he dealt with SI! ictly. 1 Ise of illegal drugs will he IA11(11'11_11 In the authorities.
h. Nolivid, 3 Nbeverage or "entertainment- kiosks or wanings will he allowed or tolerated in any area either
within Site, along the protected forest or :norm(' Wink Shop.
c. 1 he Contractor shall ensure that all tackle. took, pear. scaffolds. staging. ladders. hoisting
arrangements.
machines. explosives. electrical and mechanical appliances. and all other plant, machinery and equipment over
Wilk!) he has Control are kept sate in Work shop and are maintained in a council condition and are cafe to use
and ate used in a sale manner and do not ohstiuct any W;111\t rlyc or IIIIpede the passage or vehicular or
pedestrian traffic. 1 he Site shall he kept tidy at all times by the Conn:whir. All tools, equipments and materials
shall he slow(' neatly .
d.I he Contractor shall be liable , for the protection of any existing work or work in progress conducted by
Company or others which may directly or indirectly sulfur damage Flom the works being performed by the
Contractor. Where overhead utility lines, underground pipes, conduits or cables exist on or in the vicinity
of the Site, the Contractor shall use ever y endeavor to locate the same and to take care to protect the
same limn damage, btu in the event iii daMare riseunirug , the ("Milt:RAM shall report it immediately to the
Company. In dre event the damage to any such lines, pipes. conduits or cable is caused by the
Contractor. the Costs of such repairs and/or replacements as may Ire necessary. shall he at the expense
of the contractor.
e. In the absence of the Key Management Personnel, the Company may take such action as it
considers necessary lo prevent loss of or damage to the Services or any part or the Services or to any
property or to prevent personal injury to any person II the Company deka mines that the action is of a
kind that the Contractor should have taken at its own expense if the Key Management Personnel had not
been ahsent. IherelOte all Costs incurred by the Company shall be reindmrsahle by the Contractor as an
outstanding debt.
0. Contractor shall use ever y reasonable means to ;nevem any wads, bridges. properties in Site (as the case
may he) nil being damaged or defect caused by any activity of tire winks on Services.
p. Contractor shall guarantee that Key Management Petsonnel and/or its family and/or friends thereof shall
not engage in fat ming or staking run Millie in cchatsoever nature any part of lands in the Site, including but not limited
to any areas owned by 'ompany.
It. Key Management Personnel shall not take " shot' cuts - through the hitch. Key Management Personnel shall nil
wander freely through the bush and shall always at the areas of work
r. Key Management Personnel shall not trespass or enter any private property Or annoy or diSr111 h stock.
j.I hider no circumstances is the Conti:tutor, or Key Management Personnel, to offer any gift, of any kind
whatsoever, to any employee, agent or Net Vr1111 uI the Company in return frir ‘vhich gill favorable
treatment is anticipated or expected. On - cling of such a gill is a gloom' fOr termination the Contract.

5. 5, P ro tect io n of Fo ss ils
a. All fossils, minerals, coins, attilacts, articles of value or ;infirmity, sum -tures and other remains or things or
items of geological and archaeological Mules' discovered at the Site shall be the primer!), of the Conmany .
Ir. Fossils, minerals, coins, attilacts and the like found, shall not be removed or defiwed in whatsoever
manner. .1 he location shall be maiked and the Conti:1(1m in Key Management Personnel concerned shall advise the
Company ml the imbue and location of the discovery

ANTIFX 5 — Safnty Rogolations rn,ge

 The Contractor shall take reasonable preca u tions to prevent Key Management
Personnel from removing or damaging any such article or thing and shall,
immediately upon discovery thereof and before removal, acquaint the Company of
such discovery and carry out the Company's instructions for dealing with the stone.

Conti actor shall he liable for any inert all breath of the provisions in Annex S !-;;clay Regulations herein
caused by
any; (i) default; or (ii) tlegiircOce: or (iii) Avionviolik% ill conduct; of Key Management Personnel. the
Contractor
shall r e m e d y all damage, loss and ('oct arises therein.

"

ANNEX 5 - Safety Regulations Pag e o f 4

 h) Contractor shall provide a sufficient work flow to prevent any queue of the Dump Truck at the
Working Area and at 011 Allocation Area
c) The Dump 'Duck shall only use Road (her Burden Removal to transport/deliver Over Burden
Soil to OR Allocation Area.
( I ) I f , d u r i n g t h e O v e r ! l i n d e n R e m o v a l a c t i v i t i e s , ; my O v e r ' l i n d e n S o i l W I / d r o p / s p i l l f r o m t h e
Dump 'Truck, the Contractor shall immediately stop and such Over Burden Soil hack into
the Dump -I ruck.
e) The Over Burden Soil loaded into each Dump 'I ruck shall not exceed from the capacity of the
Dump 'I nick and Operators of Ileavy Equipments shall use its hest elTort to trim the loaded Over
Burden Soil.
I) Operators of Dump 1 luck, (luring the transportation of Over Burden Soil to OR Allocation Area,
shall from time to time handle with due care of its loaded Over Ilurden Soil, to prevent any drop
of the Over Burden Soil along the Road Access.
g) Contractor shall provide all communication gadgets for Key Management Personnel in order to
distribute the infoimation and instruction of Engineer accordingly, during the Services.
1.2.3. 011 Allocation Area
a ) B ef o r e un l oa d i ng t h e O v e r B M de l l S t il t s f r o m D u mp D u ck , O p e ra t o r sh a ll c oo r di n a t e w i t h
Engineer on the method of unloading and spreading the over Burden Soils at (111 Allocation
Area 19 Upon unloading. Operators of Heavy Equipments shall spread and trimmed the loaded Over
Binder' Soil accordingly to prevent any land slide at 011 Allocation Area.
c) Contractor shall provide sufficient tower lamp and its power thereof, at the
surrounding 013 Allocation Area.
d) Contractor shall assist Company in planting any and all ‘egetations for the purpose of
land reclamation.

1.3. Coal Hauling activities

1.3.1. Coal extraction
a) Contractor shall consult the method and comply with tire instructions of Engineer on the
extraction ROM from the 'Working Area.
h) Contractor shall use I leavy Equipments and any other means to remove, clean and extract the
11011 nom any clay, sands, dirt/soil/earth or any other substances
c) 1 he final resultt of coal ex I011 nAklilee S11:111 provide a clean and pure coal.
(I) Contractor shall in good and in cautious manner load the Extracted Coal to the Dump "I nick and prevent any
contamination to such Extracted Coal from any dirt.
1.1.2. Coal !holing
a) The Contractor shall transport/deliver the Extracted Coal to the Crushing Plant and/or Stock Yard in accordance
to the instruction of Engineer.
h) Conn actor shall provide a sufficient work flow to prevent any queue of the Dump 'Intek during
the loading process of I' mauled Coal.
c) lire Dump 'truck shall only use Road Crushing Plant and/or Road Stock Yard to transport/deliver Extracted
Coal to Crushing Plant andlor Stock Yard
d) If, during the Coal !larding activities, any Extracted Coal falEdropfspill from the Dump 'truck, the
Contractor shall immediately stop and re-load such Extracted Coal hack into the Dump Truck.
e) '1 he Extracted Coal loaded into each Dump I ruck shall not exceed from the capacity of the
Dump Truck and Operators of heavy Equipments shall use its Nest (Alm' to trim the loaded
Extracted Coal.
I) Operators of Dump Truck, dirtier the transportation of Extracted Coal to ('rushing Plant and/or Stock
Yard, shall from time to time handle with due care of its loaded Extracted ('oal, to prevent any
drop of the Extracted Coal along the Road Crushing Plant and/or Road Stock Yard.
g) Before unloading the Extracted Coal at the designated place, Operators shall direct the Dump I nick
to the weight scale. '1 he Engineer at the weight scale shall provide a document certifying the
no weighOonnage of Extracted Coal carried 11 . „. the Dump Truck.
11) Contractor shall provide all communication gadgets for K cy Management Personnel in order to
distribute the inhumation and instruction of Engineer accordingly. during the Services.
1.3.3. Crushing Plant
a) In the event Operators are instructed to deliver the Extracted Coal to Crushing Plant, then
Operators shall unload the Extracted Coal at the designated place.

ANNEN I - SCOFF OF NVOIIRS rage 1 of