1.

Before completely elaborating its rebuttal against the arguments asserted by the Respondents
in their Defence, the Claimant seeks the attention of the Arbitration Tribunal to the admission
of the Respondents relating to the obligation of the Respondents to refund the Outstanding
deposit in full plus 8% (eight percent) interest per annum, as contained in points 18 and 19 of
their Defence, as further quoted below. At point 18 of their Defence, the Respondents stated

2. FORCE MAJEURE
Except for the payment made as provided for in Schedule “G” neither party shall be liable for
loss or damage arising out of any delay or failure of performance to the extent it is caused by
circumstances beyond its control, including but not limited to: earhtquake, flood, hurricane,
acts of God or public enemies, war, national emergency, invasion, insurrection, riots, strikes,
picketing, boycott, lckouts, interruption of services rendered by any governmental agency
asserting jurisdiction or control, compliance with which makes continuanc of operations
impossible. Nor shall any delay or failure of performance due to any of said caused be
deemed a breach of, or a default in, the performance of this Contract. Inabilty of either party
to secure funds shall not be regarded as an event of Force Majeure. The party prevented from
performance as a result of any such cause shall promptly notify the other and shall do all
things reasonably possible to remove or mitigate such cause and shall resume performace as
soon as possible

3. On the request of COMPANY CONTRACTOR shall furnish COMPANY with satisfactory

recapitulation sheet and evidence of the validity and prior payment to CONTRACTOR of all
labour and material claims incurred by CONTRACTOR. Subject to this right, COMPANY
shall pay, within thirty (30) days following receipt of invoices from CONTRACTOR, the
undisputed amount of such invoices. In the event of COMPANY disputing any item of an
invoice COMPANY shall, within thirty (30) days following receipt of such invoice, notify
CONTRACTOR of the item in dispute and specify its reasons for dispute. Payment in respect
of such item in dispute shall be withheld until setlement of the dispute.
4. WAIVER, TITLE HEADING, ENTIRE AGREEMENT
No failure or failures on the part of either party to enforce, from time to time, all or any of the
terms or conditions of this Contract shall be interpreted as a waiver of such terms or
conditions. Title headings contained in this Contract are for identification and reference only
and shall not be used in interpreting any part of this Contract. This Contract, together with be
Schedules incorporated by reference, constitutes the entire agreement of the parties, no other
writings or conversation shall be considered a part of this Contract.

5. INDEMNITIES
For the purpose of the indemnity provisions set forth in this Contract, where an indemnity is
given in favour of CONTRACTOR such a reference shall be interpreted to mean,
individually and collectively, CONTRACTOR, its personnel, agents, subcontractors, owners
and Affiliates.

Similarly where an indemnity is given in favour of COMPANY such a reference shall be

interpreted to mean, individually and collectively, COMPANY and its Joint Ventures, and
each of COMPANY’s and Joint Ventures’ personnel, agents, contractors, owners and
Affiliates.

6. LANGUAGE
This Contract has been prepared in both Indonesian and English languages and both texts are
valid. In the case of any difference in the interpretation of the two texts, the Indonesian text
shall prevail and shall be considered the official text.