Document:

Exhibit 4.2

 

THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE
THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION
OF SUCH SECURITIES BY ANY PERSON FOR A PERIOD OF ONE HUNDRED AND EIGHTY (180) DAYS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS
OF THE PUBLIC OFFERING OF THE COMPANY’S SECURITIES PURSUANT TO REGISTRATION STATEMENT NO. 333- 232894 AS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION, EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

 

REPRESENTATIVE’S WARRANT

 

INDONESIA ENERGY CORPORATION LIMITED

 

	Warrant Shares: [  ]1	Original Issuance Date: [  ], 2019

 

THIS REPRESENTATIVE’S WARRANT (the “Warrant”)
certifies that, for value received, Aegis Capital Corp. or its assigns (the “Holder”) is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after [ ], 2020[2]
(the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [ ], 2023 (the “Termination
Date”) [3] but not thereafter,
to subscribe for and purchase from Indonesia Energy Corporation Limited, a Cayman Islands exempted company with limited liability
(the “Company”), up to [  ] Ordinary Shares (as subject to adjustment hereunder, the “Warrant
Shares”). The purchase price of one Ordinary Share under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

 

Section 1. Definitions. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in that certain Underwriting Agreement (the “Agreement”),
dated [  ], 2019 by and between the Company and Aegis Capital Corp., as representative of the several underwriters.

 

Section 2. Exercise.

 

a) Exercise of Warrant. Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy (or
e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within
three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for
the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of
Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not
be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the
Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares
available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice
of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of
the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less
than the amount stated on the face hereof.

 

 

 

1
5% of the Ordinary Shares sold in the offering, but excluding shares sold to Company-introduced investors.

2
Six month anniversary of the Effective Date.

3
Fourth anniversary of Effective Date.

 

     

     

    

 

b) Exercise Price. The exercise price
per Ordinary Share under this Warrant shall be $[ ] (which is 125% of the offering price per Ordinary Share in the offering
contemplated by the Agreement) (the “Exercise Price”).

 

c) Cashless Exercise. If at the time
of exercise hereof there is no effective registration statement registering the Warrant Shares, or the prospectus contained therein
is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may also be exercised, in whole or in
part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable: (i) the VWAP on the Trading
Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and
delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to
Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule
600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the
Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the Ordinary Shares on the principal Trading Market as reported by Bloomberg L.P. as of the time of the
Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular
trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after
the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the
date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise
is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such
Trading Day;

 

(B) = the Exercise Price of this Warrant, as adjusted
hereunder; and

 

(X) = the number of Warrant Shares that would be issuable
upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

If Warrant Shares are issued in such a cashless
exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall
take on the characteristics of the Warrants being exercised and the holding period of the Warrants being exercised may be tacked
on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to this Section 2(c).

 

“Bid Price” means, for
any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are then listed or
quoted on a Trading Market, the bid price of the Ordinary shares for the time in question (or the nearest preceding date) on the
Trading Market on which the Ordinary Shares are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from
9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Ordinary Shares are traded on OTCQB or OTCQX, the
volume weighted average sales price of the Ordinary Shares for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Ordinary Shares are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Ordinary Shares are
then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Ordinary Shares so reported, or (d) in all other
cases, the fair market value of an Ordinary Share as determined by an independent appraiser selected in good faith by the Holder
and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

    2

     

    

 

“VWAP” means, for
any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are then listed
or quoted on The New York Stock Exchange, the NYSE American or any tier of The Nasdaq
Stock Market (each, a “Trading Market”), the daily volume weighted average price of the Ordinary
Shares for such date (or the nearest preceding date) on the Trading Market on which the Ordinary Shares are then listed or
quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)), (b) if the Ordinary Shares are traded on OTCQB or OTCQX , the volume weighted average sales price of the Ordinary
Shares for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Ordinary Shares are not then
listed or quoted for trading on OTCQB or OTCQX and if prices for the Ordinary Shares are then reported in the “Pink
Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per share of the Ordinary Shares so reported, or (d) in all other cases, the
fair market value of an Ordinary Share as determined by an independent appraiser selected in good faith by the Holder and
reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

Notwithstanding anything contained herein
to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this
Section 2(c).

 

d) Mechanics of Exercise.

 

i.        Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by Holder, or (B) if there is no effective registration statement and the Warrant is exercised via
cashless exercise at a time when such Warrant Shares would be eligible for resale under Rule 144 by a non-affiliate of the Company,
such Warrant Shares are delivered to Holder’s broker, and the Company receives a statement from Holder’s broker that
it has received instructions to sell the Warrant Shares or that it would take responsibility that the sales of the Warrant Shares
will only be made if the Warrant Shares are eligible to be sold under Rule 144, and otherwise by physical delivery of a certificate,
registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to
which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the
date that is the earliest of (i) three (3) Trading Days after the delivery to the Company of the Notice of Exercise or (ii) one
(1) Trading Day after delivery of the aggregate Exercise Price to the Company (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become
the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery
of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is
received within three (3) Trading Days following delivery of the Notice of Exercise. If the Company fails for any reason to deliver
to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Ordinary Shares on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per
Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to use commercially
reasonable efforts to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable.

 

ii.        Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

 

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iii.        Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i)
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.        Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions
of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder
is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise
purchases, Ordinary Shares to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount,
if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the Ordinary Shares
so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase
obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to
the Holder the number of Ordinary Shares that would have been issued had the Company timely complied with its exercise and delivery
obligations hereunder. For example, if the Holder purchases Ordinary Shares having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted exercise of Ordinary Shares with an aggregate sale price giving rise to such purchase obligation
of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon
request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver Ordinary Shares upon exercise of the Warrant as
required pursuant to the terms hereof.

 

v.
        No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would
otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round down to the next
whole share.

 

vi.        Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which transfer taxes and expenses shall be paid
by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required
for same-day electronic delivery of the Warrant Shares.

 

vii.        Closing
of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

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e) Holder’s Exercise
Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates,
and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
 “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as
defined below). For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and
its Affiliates and Attribution Parties shall include the number of Ordinary Shares issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of Ordinary Shares which would be
issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of
its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or non-converted portion of any
other securities of the Company (including, without limitation, any other Ordinary Shares Equivalents) subject to a
limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of
its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section
2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the
sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section
2(e), in determining the number of outstanding Ordinary Shares, a Holder may rely on the number of outstanding
Ordinary Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as
the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or
the Transfer Agent setting forth the number of Ordinary Shares outstanding. Upon the written or oral request of a Holder, the
Company shall within one Trading Day confirm orally and in writing to the Holder the number of Ordinary Shares then
outstanding. In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the conversion
or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties
since the date as of which such number of outstanding Ordinary Shares was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Ordinary Shares outstanding immediately after giving
effect to the issuance of Ordinary Shares issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may
increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Ordinary Shares outstanding immediately after
giving effect to the issuance of Ordinary Shares upon exercise of this Warrant held by the Holder and the provisions of this
Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the
61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3. Certain Adjustments.

 

a) Stock Dividends and Splits.
If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Ordinary Shares or any other equity or equity equivalent securities payable in Ordinary Shares
(which, for avoidance of doubt, shall not include any Ordinary Shares issued by the Company upon exercise of this Warrant),
(ii) subdivides outstanding Ordinary Shares into a larger number of shares, (iii) combines (including by way of reverse stock
split) outstanding Ordinary Shares into a smaller number of shares, or (iv) issues by reclassification of shares of the
Ordinary Shares any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of Ordinary Shares (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of Ordinary Shares outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that
the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification.

 

b) Subsequent Rights Offerings. In
addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Ordinary Shares
Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of
Ordinary Shares (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of
Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including
without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary Shares
are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that
the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held
in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial
Ownership Limitation).

 

c) Pro Rata Distributions. During such
time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or
rights to acquire its assets) to holders of Ordinary Shares, by way of return of capital or otherwise, other than cash (including,
without limitation, any distribution of stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time
after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to
the same extent that the Holder would have participated therein if the Holder had held the number of Ordinary Shares acquirable
upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record
is taken, the date as of which the record holders of Ordinary Shares are to be determined for the participation in such Distribution
(provided, however, to the extent that the Holder's right to participate in any such Distribution would result in
the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution
to such extent (or in the beneficial ownership of any Ordinary Shares as a result of such Distribution to such extent) and the
portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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d) Fundamental Transaction. If,
at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions
effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to
sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or
more of the outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions
effects any reclassification, reorganization or recapitalization of the Ordinary Shares or any compulsory share exchange
pursuant to which the Ordinary Shares are effectively converted into or exchanged for other securities, cash or property, or
(v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the
outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to,
or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of Ordinary Shares of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
 “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the
number of Ordinary Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without
regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Ordinary Shares in such Fundamental Transaction, and
the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the
relative value of any different components of the Alternate Consideration. If holders of Ordinary Shares are given any choice
as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under
this Warrant in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the
Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the Ordinary Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price
hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares pursuant to such
Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such
exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the
occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from
and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

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e) Calculations. All calculations under
this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section
3, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of Ordinary
Shares (excluding treasury shares, if any) issued and outstanding.

 

f) Notice to Holder.

 

i. Adjustment to Exercise Price. Whenever the
Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile
or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant
Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice to Allow Exercise by Holder. If (A)
the Company shall declare a dividend (or any other distribution in whatever form) on the Ordinary Shares, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares, (C) the Company shall authorize the granting
to all holders of the Ordinary Shares rights or warrants to subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification
of the Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange whereby the Ordinary Shares are converted into other securities,
cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the
affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its
last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior
to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the

date as of which it is expected that holders of
the Ordinary Shares of record shall be entitled to exchange their shares of the Ordinary Shares for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the
failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes,
or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Form 6-K. The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice
except as may otherwise be expressly set forth herein.

 

Section 4. Transfer of Warrant.

 

a) Transferability. Pursuant to FINRA
Rule 5110(g)(1) and the Agreement, neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold,
transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of the securities by any person for a period of one hundred eighty (180)
days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is
being issued, except the transfer of any security:

 

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(i) by operation of law or by reason of reorganization
of the Company;

 

(ii) to any FINRA member firm participating in the offering
and the officers and partners thereof, if all securities so transferred remain subject to the lock-up restriction in this Section
4(a) for the remainder of the time period;

 

(iii) if the aggregate amount of securities of the Company
held by the Holder or related person do not exceed 1% of the securities being offered;

 

(iv) that is beneficially
owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or
otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity
in the fund; or

 

(v) the exercise or conversion of any security, if all
securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

 

Subject to the foregoing
restrictions, compliance with any applicable securities laws, and the conditions set forth in Section 4(d) hereof, this
Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written
assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and
funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as
applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the
assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the
Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this
Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

 

b) New Warrants. This Warrant may be
divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated the Original Issuance Date of this Warrant and shall
be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c) Warrant Register. The Company shall
register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant
as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual notice to the contrary.

 

d) Representation by the Holder. The
Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling
such Warrant or Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except
pursuant to sales registered or exempted under the Securities Act.

 

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Section 5. Registration Rights.

 

a) Demand Registration.

 

i. Grant of Right. If at any time prior to
the Termination Date, the Registration Statement is no longer effective, the Company, upon written demand (“Demand
Registration Notice”) of the Holder(s) of at least 51% of the Warrant Shares (“Majority
Holders”), agrees to register on one (1) occasion only (“Demand Registration”) under the
Securities Act all or any portion of the Warrant Shares requested by the Majority Holders in the Demand Registration Notice
(the “Registrable Securities”). On such occasion, the Company will file a registration statement covering
the Registrable Securities within 60 days after receipt of the Demand Registration Notice and to have such registration
statement declared effective as soon as possible thereafter. A demand for registration may be made at any time during which
the Majority Holders hold any of the Warrant Shares, with an outside date of seven (7) years from the Initial Exercise Date.
Notwithstanding the foregoing, the Company shall not be required to effect a registration pursuant to this Section 5 a): (A)
with respect to securities that are not Registrable Securities; (B) during any Scheduled Black-Out Period; (C) if the
aggregate offering price of the Registrable Securities to be offered is less than $250,000, unless the Registrable Securities
to be offered constitute all of the then-outstanding Registrable Securities; or (D) within 180 days after the effective date
of a prior registration in respect of the Ordinary Shares or securities or other obligations exercisable or exchangeable for,
or convertible into, equity securities of the Company (or, in the event that Holders were prevented from including any
Registrable Securities requested to be included in a Piggyback Registration pursuant to Section 5(b), within 90 days after
the effective date of such prior registration in respect of the Ordinary Shares. For purposes of this Agreement,
a “Scheduled Black-Out Period” shall means the periods from and including the day that is ten days prior
to the last day of a fiscal quarter of the Company to and including the day that is two days after the day on which the
Company publicly releases its earnings for such fiscal quarter. The Demand Registration Notice shall specify the number of
shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will
notify all holders of the Warrant Shares of the demand within fifteen days from the date of the receipt of any such Demand
Registration Notice. Each holder of the Warrant Shares who wishes to include all or a portion of such holder’s Warrant
Shares in the Demand Registration (each such holder including shares of Registrable Securities in such registration, a
 “Demanding Holder”) shall so notify the Company within fifteen days after the receipt by the holder of the
notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have their Warrant Shares included
in the Demand Registration.

 

ii. Effective Registration. A registration will
not count as a Demand Registration until the registration statement filed with the Commission with respect to such Demand Registration
has been declared effective and the Company has complied with all of its obligations under this Warrant with respect thereto.

 

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iii. Terms. In connection
with the Demand Registration, the Company shall bear all fees and expenses attendant to registering the Registrable Securities,
including the reasonable expenses of one legal counsel selected by the Holders to represent them in connection with the sale of
the Registrable Securities, up to a maximum of $25,000 for all such fees and expenses in the aggregate. The Holders shall pay
any and all underwriting or similar commissions related to the sale of Registrable Securities. The Company agrees to qualify or
register the Registrable Securities in such states as are reasonably requested by the Majority Holder(s); provided, however, that
in no event shall the Company be required to register the Registrable Securities in a state in which such registration would cause
(i) the Company to be obligated to qualify to do business in such state, or would subject the Company to taxation as a foreign
corporation doing business in such jurisdiction or (ii) the principal shareholders of the Company to be obligated to escrow their
Ordinary Shares. The Company shall cause any registration statement filed pursuant to the demand rights granted under Section
5(a)(iii) to remain effective until all Registrable Securities are sold.

 

iv. Notwithstanding the foregoing, if the Board of Directors
of the Company determines in its good faith judgment that the filing of a registration statement in connection with a Demand Registration
(i) would be materially detrimental to the Company in that such registration would interfere with a material corporate transaction
(including any financing activity of the Company) or (ii) would require the disclosure of material non-public information concerning
the Company that at the time is not, in the good faith judgment of the Board of Directors, in the best interests of the Company
to disclose and is not, in the opinion of the Company’s counsel, otherwise required to be disclosed, then the Company shall
have the right to defer such filing for the period during which such registration would be seriously detrimental under clause
(i) or would require such disclosure under clause (ii); provided, however, that (x) the Company may not defer such filing for
a period of more than 90 days after receipt of any demand by the Holders and (y) the Company shall not exercise its right to defer
a Demand Registration more than once in any 12-month period. The Company shall give written notice of its determination to the
Holders to defer the filing and of the fact that the purpose for such deferral no longer exists, in each case, promptly after
the occurrence thereof.

 

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b) Piggy-Back Registration.

 

i. Piggy-Back Rights. If at any time prior
to the Termination Date, the Registration Statement is no longer effective and the Company proposes to file a registration
statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations
exercisable or exchangeable for, or convertible into, equity securities, by the Company for its own account or for
shareholders of the Company for their account (or by the Company and by shareholders of the Company, other than a
registration statement (i) filed in connection with any employee share option or other benefit plan, (ii) for an exchange
offer or offering of securities solely to the Company’s existing shareholders, (iii) for a dividend reinvestment plan,
(iv) which is a universal shelf registration statement for offerings by the Company from time to time or (v) filed in
connection with any proposed Fundamental Transaction by or involving the Company (the primary purpose of which is not
fundraising), then the Company shall (x) give written notice of such proposed filing to the holders of Registrable Securities
as soon as practicable but in no event less than ten days before the anticipated filing date, which notice shall describe the
amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the
proposed managing underwriter or underwriters, if any, of the offering, and (y) offer to the holders of
Registrable Securities in such notice the opportunity to register the sale of such number of Warrant Shares held by such
holder (the “Piggy-Back Registrable Securities”), as such holders may request in writing within five days
following receipt of such notice (a “Piggy-Back Registration”). The Company shall cause such Piggy-Back
Registrable Securities to be included in such registration and shall use its commercially reasonable efforts to cause the
managing underwriter or underwriters of a proposed underwritten offering to permit the Piggy-Back Registrable Securities
requested to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the
Company and to permit the sale or other disposition of such Piggy-Back Registrable Securities in accordance with the intended
method(s) of distribution thereof. All holders of Piggy-Back Registrable Securities proposing to distribute their securities
through a Piggy-Back Registration that involves an underwriter or underwriters shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

ii. Reduction of Offering. If the managing underwriter
or underwriters for a Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable
Securities in writing that the dollar amount or number of Ordinary Shares which the Company desires to sell, taken together with
Ordinary Shares, if any, as to which registration has been requested pursuant to written contractual arrangements with persons
other than the holders of Piggy-Back Registrable Securities hereunder, the Piggy-Back Registrable Securities as to which registration
has been requested under this Section 5(b), and the Ordinary Shares, if any, as to which registration has been requested pursuant
to the written contractual piggy-back registration rights of other shareholders of the Company, exceeds the maximum dollar amount
or maximum number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing,
the distribution method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares,
as applicable, the “Maximum Number of Shares”), then the Company shall include in any such registration:

 

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(x)        If
the registration is undertaken for the Company’s account: (A) first, the Ordinary Shares or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; and (B) second, subject to the requirements of
registration rights granted by the Company prior to the date hereof, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (A), up to the amount of Ordinary Shares or other securities that can be sold without exceeding
the Maximum Number of Shares, on a pro rata basis, from (i) Piggy-Back Registrable Securities as to which registration has been
requested and (ii) the Ordinary Shares or other securities for the account of other persons that the Company is obligated to register
pursuant to written contractual piggy-back registration rights with such persons;

 

(y)
        If the registration is a demand registration undertaken at the demand of holders of
Company securities other than the Registrable Securities, subject to the requirements of registration rights granted by the
Company prior to the date hereof, (A) first, the Ordinary Shares or other securities for the account of the demanding persons
that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clause (A), the Ordinary Shares or other securities comprised of Piggy-Back
Registrable Securities, pro rata, as to which registration has been requested pursuant to the terms hereof that can be sold
without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A) and (B), the Ordinary Shares or other securities for the account of other persons
that the Company is obligated to register pursuant to written contractual arrangements with such persons, that can be sold
without exceeding the Maximum Number of Shares.

 

iii. Withdrawal. Any holder of Piggy-Back Registrable
Securities may elect to withdraw such holder’s request for inclusion of such Piggy-Back Registrable Securities in any Piggy-Back
Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the registration
statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to
written contractual obligations) may withdraw a registration statement at any time prior to the effectiveness of the registration
statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of Piggy-Back Registrable
Securities in connection with such Piggy-Back Registration as provided in Section 5(b)(iv).

 

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iv. Terms. The Company shall bear all fees and
expenses attendant to registering the Piggy-Back Registrable Securities, including the expenses of one legal counsel selected by
the Holders to represent them in connection with the sale of the Piggy-Back Registrable Securities (but only up to a maximum of
$25,000 for all such fees and expenses in the aggregate), but the Holders shall pay any and all underwriting or similar commissions
related to the Piggy-Back Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then
Holders of outstanding Piggy-Back Registrable Securities with not less than fifteen days written notice prior to the proposed date
of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable registration
statement filed (during the period in which the Warrant is exercisable) by the Company until such time as all of the Piggy-Back
Registrable Securities have been registered and sold. The Holders of the Piggy-Back Registrable Securities shall exercise the “piggy-back”
rights provided for herein by giving written notice, within ten days of the receipt of the Company’s notice of its intention
to file a registration statement. The Company shall cause any registration statement filed pursuant to the above “piggyback”
rights to remain effective for at least nine (9) months from the date that the Holders of the Piggy-Back Registrable Securities
are first given the opportunity to sell all of such securities.

 

c) General Terms. These additional
terms shall relate to registration under Sections 5(a) and (b) above:

 

i. Indemnification.

 

(w) The Company shall, to the fullest extent permitted
by applicable law, indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably
incurred in investigating, preparing or defending against litigation, commenced or threatened, or any claim whatsoever whether
arising out of any action between the underwriter and the Company or between the underwriter and any third party or otherwise)
to which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement;
provided, however, that, with respect to any Holder of Registrable Securities, this indemnity shall not apply to
any loss, liability, claim, damage or expense to the extent arising out of an untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with written information furnished to the Company by such Holder expressly
for use in the registration statement (or any amendment thereto), or any preliminary prospectus or the prospectus (or any amendment
or supplement thereto).

 

(x) The Holder(s) of the Registrable Securities to be
sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the
Company, its officers and directors and each person, if any, who controls the Company within the meaning of Section 15 of the Act
or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys’
fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they
may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, in writing, for specific inclusion in such registration statement(or any amendment thereto), or
any preliminary prospectus or the prospectus (or any amendment or supplement thereto).

 

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(y) Each indemnified party shall give prompt
notice to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder,
but failure to so notify an indemnifying party shall not relieve the indemnifying party from any liability it may have under
this Agreement, except to the extent that the indemnifying party is prejudiced thereby. If it so elects, after receipt of
such notice, an indemnifying party, jointly with any other indemnifying parties receiving such notice, may assume the defense
of such action with counsel chosen by it; provided, however, that the indemnified party shall be entitled to
participate in (but not control) the defense of such action with counsel chosen by it, the reasonable fees and expenses of
which shall be paid by such indemnified party, unless a conflict would arise if one counsel were to represent both the
indemnified party and the indemnifying party, in which case the reasonable fees and expenses of counsel to the indemnified
party shall be paid by the indemnifying party or parties. In no event shall the indemnifying party or parties be liable for a
settlement of an action with respect to which they have assumed the defense if such settlement is effected without the
written consent of such indemnifying party, or for the reasonable fees and expenses of more than one counsel for (i) the
Company, its officers, directors and controlling persons as a group, and (ii) the selling Holders and their controlling
persons as a group, in each case, in connection with any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances; provided, however, that if, in the
reasonable judgment of an indemnified party, a conflict of interest may exist between such indemnified party and the Company
or any other of such indemnified parties with respect to such claim, the indemnifying party shall be obligated to pay the
reasonable fees and expenses of such additional counsel.

 

(z) If the indemnification provided
for in or pursuant to Section 5(b)(i) is due in accordance with the terms hereof, but held by a court of competent jurisdiction
to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses referred to therein, then
each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable
by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which result in such losses, claims, damages, liabilities or expenses as well as any other relevant
equitable considerations. The relative fault of the indemnifying party on the one hand and of the indemnified party on the other
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified
party, and by such party’s relative intent, knowledge, access to information and opportunity to correct or prevent such statement
or omission.

 

ii. Documents Delivered to
Holders. The Company shall furnish the initial Holder a signed counterpart, addressed to the initial Holder, of (i) an
opinion of counsel to the Company, dated the effective date of such registration statement (or, if such registration includes
an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto),
and (ii) if such registration statement is filed in connection of an underwritten public offering, a “cold
comfort” letter dated the effective date of such registration statement (or, if such registration includes an
underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the
independent public accountants who have issued a report on the Company’s financial statements included in such
registration statement, in each case covering substantially the same matters with respect to such registration statement (and
the prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the
date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to underwriters in underwritten public offerings of securities.

 

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iii. Supplemental Prospectus.
Each Holder agrees, that upon receipt of any notice from the Company of the happening of any event as a result of which the prospectus
included in the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
then existing, such Holder will immediately discontinue disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Holder’s receipt of the copies of a supplemental or amended prospectus, and,
if so desired by the Company, such Holder shall deliver to the Company (at the expense of the Company) or destroy (and deliver
to the Company a certificate of such destruction) all copies, other than permanent file copies then in such Holder’s possession,
of the prospectus covering such Registrable Securities current at the time of receipt of such notice. Immediately after discovering
of such an event which causes the prospectus included in the registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing, the Company shall prepare and file, as soon as practicable, a supplement
or amendment to the prospectus so that such registration statement does not include any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light
of the circumstances then existing and distribute such supplement or amendment to each Holder.

 

Section 6. Miscellaneous.

 

a) No Rights as Stockholder Until Exercise.
This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company prior
to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

b) Loss, Theft, Destruction or Mutilation
of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting
of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c) Saturdays, Sundays, Holidays, etc.
If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be
a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d) Authorized Shares. The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Ordinary Shares a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Ordinary Shares may
be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created
by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

 

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Except and to the extent as waived or consented
to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate
to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and non-assessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result
in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body
or bodies having jurisdiction thereof.

 

e) Jurisdiction. All questions concerning
the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions
of the Agreement.

 

f) Restrictions. The Holder acknowledges
that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless
exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g) Non-waiver and Expenses. No
course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this
Warrant or the Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which
results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

 

h) Notices. Any notice, request or
other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with
the notice provisions of the Agreement.

 

i) Limitation of Liability. No provision
hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration
herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any
Ordinary Shares or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j) Remedies. The Holder, in addition
to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance
of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action
for specific performance that a remedy at law would be adequate.

 

    17

     

    

 

k) Successors and Assigns. Subject
to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by
the Holder or holder of Warrant Shares.

 

l) Amendment. This Warrant may be modified
or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m) Severability. Wherever possible,
each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n) Headings. The headings used in this
Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

(Signature Page Follows)

 

    18

     

    

 

 

IN WITNESS WHEREOF, the Company has caused
this Representative’s Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	INDONESIA ENERGY CORPORATION LIMITED
	 	 
	 	By:	                              
	 	 	Name:
	 	 	Title:

 

    19

     

    

 

NOTICE OF EXERCISE

 

TO: INDONESIA ENERGY CORPORATION LIMITED

 

(1) The undersigned hereby elects to purchase
________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith
payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2) Payment shall take the form of (check
applicable box):

 

[ ] in lawful money of the United States; or

 

[ ] if permitted the cancellation of such number of
Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect
to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3) Please issue said Warrant Shares in the
name of the undersigned or in such other name as is specified below:

______________________

 

The Warrant Shares shall be delivered to the following DWAC
Account Number:

______________________

______________________

______________________

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:_________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:__________________________________

 

Name of Authorized Signatory:____________________________________________________

 

Title of Authorized Signatory:_____________________________________________________

 

Date:_________________________________________________________________________

 

    20

     

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and
supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	Name:	 	 
	Address:	 	(Please Print)
	Phone Number:	 	 
	Email Address:	 	(Please Print)
	Dated: ___________ __, _____	 	 
	Holder’s Signature:	 	 
	Holder’s Address:	 	 

 

    21

     

    

 

Warrant Exercise Log

 

	Date	Number of Warrant

 Shares Available to be 

Exercised	Number of Warrant Shares 

Exercised	Number of 

Warrant Shares 

Remaining to be Exercised
	
         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         
	 	 	 

 

    22Exhibit 10.5

 

Confidential
Treatment Requested by Indonesia Energy Corporation Limited.

Confidential
treatment requested with respect to certain portions of the Exhibit hereof denoted with

“***”
that are (i) not material and (ii) would likely cause competitive harm to 

Indonesia Energy
Corporation Limited if publicly disclosed.

 

	 	 

 

PRODUCTION SHARING

CONTRACT

 

BETWEEN

 

SATUAN KERJA KHUSUS

PELAKSANA

KEGIATAN USAHA HULU

MINYAK DAN GAS BUMI

(SKK MIGAS)

 

AND

 

PT COGEN NUSANTARA

ENERGI

 

AND

 

PT HUTAMA WIRANUSA

ENERGI

 

CONTRACT AREA:

CITARUM

 

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    CONTRACT AREA: CITARUM

    

  

INDEX

 

	SECTION	 	TITLE	 	PAGE
	 	 	 	 	 
	I	 	SCOPE AND DEFINITIONS	 	6
	 	 	 	 	 
	II	 	TERM AND COMMERCIALITY OF CONTRACT AREA	 	18
	 	 	 	 	 
	III	 	RELINQUISHMENT OF CONTRACT AREA	 	27
	 	 	 	 	 
	IV	 	WORK PROGRAM AND BUDGET	 	30
	 	 	 	 	 
	V	 	RIGHTS AND OBLIGATIONS OF THE PARTIES	 	35
	 	 	 	 	 
	VI	 	HANDLING OF OPERATING COSTS AND PRODUCTION	 	56
	 	 	 	 	 
	VII	 	VALUATION OF CRUDE OIL AND NATURAL GAS	 	64
	 	 	 	 	 
	VIII	 	BONUS AND ASSISTANCE	 	70
	 	 	 	 	 
	IX	 	PAYMENTS	 	71
	 	 	 	 	 
	X	 	TITLE TO GOODS, EQUIPMENT, LAND, AND INTELLECTUAL PROPERTY RIGHTS	 	72
	 	 	 	 	 
	XI	 	CONSULTATION AND ARBITRATION	 	73
	 	 	 	 	 
	XII	 	EMPLOYMENT AND TRAINING OF INDONESIAN PERSONNEL	 	75
	 	 	 	 	 
	XIII	 	CONTRACT TERMINATION	 	
    76
	 	 	 	 	 
	XIV	 	BOOKS AND ACCOUNTS	 	78
	 	 	 	 	 
	XV	 	OTHER PROVISIONS	 	79
	 	 	 	 	 
	XVI	 	PARTICIPATION	 	83
	 	 	 	 	 
	XVII	 	EFFECTIVENESS	 	85

 

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EXHIBITS

 

	“A”	DESCRIPTION OF CONTRACT AREA
	 	 
	“B”	MAP OF CONTRACT AREA
	 	 
	“C”	ACCOUNTING PROCEDURE
	 	 
	“D”	MEMORANDUM OF PARTICIPATION
	 	 
	“E”	PARTICIPATING INTEREST HOLDER AND OPERATOR
	 	 
	“F”	VARIABLE COMPONENT
	 	 
	“G”	PROGRESSIVE COMPONENT

 

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This Production Sharing Contract (“CONTRACT”),
is made and entered into on this 7th day of June 2018 by and between SATUAN KERJA KHUSUS PELAKSANA KEGIATAN USAHA
HULU MINYAK DAN GAS BUMI (hereinafter called “SKK MIGAS”), a task force given the task by the Government of
the Republic of Indonesia c.q. the Minister of Energy and Mineral Resources (“MEMR”) to conduct the management of the
upstream oil and gas business activities pursuant to the Presidential Regulation No. 95/2012 in conjunction with the Presidential
Regulation No. 9/2013 as amended by Presidential Regulation No. 36/2018 in conjunction with the MEMR Regulation No. 9/2013 as amended
by MEMR Regulation No. 17/2017 in conjuction with MEMR Regulation No. 53/2017, party of the first part, and PT COGEN NUSANTARA
ENERGI and PT HUTAMA WIRANUSA ENERGI, a corporation organized and existing under the laws of Indonesia, (hereinafter
called “CONTRACTOR”) party of the second part.

 

SKK
MIGAS and CONTRACTOR hereinafter sometimes referred to either individually as the “Party”
or collectively as the “Parties”.

 

WITNESSETH

 

WHEREAS, all the existing Petroleum
within the statutory mining territory of Indonesia is national wealth controlled by the State; and

 

WHEREAS, in accordance with Law
No. 22/2001 and Government Regulation No. 35/2004 as amended several times, recently by Government Regulation No. 55/2009, the
Government of the Republic of Indonesia who hold “Authority to Mine” wishes to promote the development of the Contract
Area and appoint a CONTRACTOR in accelerating the exploration, and development of the resources within the Contract Area;
and

 

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    CONTRACT AREA: CITARUM

    

  

WHEREAS, on November 13th
2012, the Constitutional Court of the Republic of Indonesia through Verdict No. 36/PUU-X/2012 (“MK Verdict No. 36/PUU-X/2012”)
has partially approved the petitions of the Judicial Review on Law No.22/2001, in which the verdict has shifted the functions and
duties of Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi (“BPMIGAS”) as the supervisor of the implementation
of Cooperation Contracts and the upstream oil and gas business activities to the Government of the Republic of Indonesia c.q. the
related Ministry, until the issuance of a new Law that governs such matter; and

 

WHEREAS, as the follow-up to
the MK Verdict No. 36/PUU-X/2012, the Government of the Republic of Indonesia through the Presidential Regulation No. 95/2012 in
conjunction with the Presidential Regulation No. 9/2013 as amended by Presidential Regulation No. 36/2018 in conjunction with the
MEMR Regulation No. 9/2013 as amended by MEMR Regulation No. 17/2017 in conjuction with MEMR Regulation No. 53/2017, has decided
that the duties to implement the management of the upstream oil and gas business activities, until the issuance of the new Law
on the oil and gas sector, shall be conducted by SKK MIGAS, which one of SKK MIGAS functions is execute the Cooperation
Contract; and

 

WHEREAS, CONTRACTOR declares
its financial ability, technical competence, and professional skills necessary to carry out the Petroleum Operations hereinafter
described, and is willing to enter into this CONTRACT with SKK MIGAS under the terms and conditions described herein;
and

 

NOW THEREFORE, in consideration
of the mutual covenants herein contained, it is hereby agreed as follows:

 

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SECTION
I

SCOPE
AND DEFINITIONS

 

		1.1	SCOPE

 

		1.1.1	This CONTRACT is a cooperation contract in
the form of a Production Sharing Contract. In accordance with the provisions herein contained, SKK
MIGAS shall have and be responsible for the management of the Petroleum Operations contemplated hereunder.

 

		1.1.2	CONTRACTOR shall be responsible to SKK
MIGAS for the execution of such Petroleum Operations in accordance with the provisions of this CONTRACT,
and is hereby appointed and constituted as the company exclusively conducting Petroleum Operations hereunder as of the
Effective Date.

 

		1.1.3	CONTRACTOR shall provide all the financial
and technical assistance, including skills required for the execution of Petroleum Operations.

 

		1.1.4	CONTRACTOR shall carry the risk in conducting
Petroleum Operations and shall therefore have an economic interest in the development of the Petroleum deposits in the Contract
Area.

 

		1.1.5	During the term of this CONTRACT, the total
production of Petroleum achieved in the conduct of such Petroleum Operations shall be shared in accordance with the provisions
of Section VI hereof.

 

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		1.1.6	In the case that CONTRACTOR comprises of more
than one Participating Interest Holder, then the following provisions shall apply:

 

		(a)	CONTRACTOR shall appoint one of the Participating
Interest Holders as an Operator which is authorized to execute Petroleum Operations hereunder and represent them in communicating
and liaising with SKK MIGAS, GOI and any other parties in relation to this
CONTRACT and the performance thereof;

 

		(b)	As a general rule, the Operator to be proposed to SKK
MIGAS shall have the necessary skills, experience, financial capability and qualified personnel to conduct Petroleum
Operations hereunder;

 

		(c)	The appointed Operator in the Contract Area at the signing of this CONTRACT
is as described in Exhibit “E”;

 

		(d)	The change of Operator shall be subject to the prior written approval of SKK
MIGAS and SKK MIGAS shall notify GOI
of such change. Approval of such request shall not be unreasonably withheld, provided that the requirements in Sub-section
1.1.6.(b) are satisfied;

 

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    CONTRACT AREA: CITARUM

    

  

		(e)	In addition to the responsibilities
                                         and functions of Operator referred to in paragraph (a) of this Sub-section 1.1.6, SKK
                                         MIGAS shall solely look to Operator for the performance of CONTRACTOR
                                         under this CONTRACT;

 

		(f)	Notwithstanding the provisions in paragraph (e) of this Sub-section 1.1.6, the appointment of
                                                                 Operator shall not in any way limit, restrict or discharge each of the other Participating Interest Holder(s) from their
                                                                 obligations, responsibilities and liabilities as Participating Interest Holder(s) under this CONTRACT, and
                                                                 such appointment shall not prevent SKK MIGAS from directly
                                                                 communicating, liaising with and/or enforcing such obligations, responsibilities and liabilities to any of them on a joint
                                                                 and several liability basis.

 

		1.2	DEFINITIONS

 

For
the purposes of this CONTRACT, except as expressly stated otherwise herein,
the words and terms defined in Article 1 of Law No. 22/2001, when used herein, shall have the meaning in accordance with such
definitions. In addition, the following definitions shall apply.

 

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		1.2.1	Abandonment and Restoration Funds
                                                                  or AARF means the accumulation of funds deposited in an escrow
                                                                  account jointly controlled by SKK MIGAS and CONTRACTOR reserved for the conduct of abandonment and site
                                                                  restoration in the manner and pursuant to the procedures described in Sub-section 5.2.6.

 

	 	1.2.2	Affiliated Company or Affiliate means (i) a company or other entity that Controls or is Controlled by a Party to this CONTRACT, or (ii) a company which is Controlled by a company or other entity which Controls, a Party to this CONTRACT.

 

		1.2.3	Barrel means a quantity or unit of oil,
forty-two (42) United States gallons at the temperature of sixty (60) degrees Fahrenheit.

 

		1.2.4	Barrel of Oil Equivalent or BOE
means six thousand (6,000) standard cubic feet of Natural Gas based on the gas having a calorific value of one thousand (1,000)
British Thermal Unit per cubic foot (BTU/ft3).

 

		1.2.5	Gross Split Production Sharing means production
sharing principle without Operating Cost recovery.

 

		1.2.6	Crude
                                         Oil Base Split means SKK MIGAS’ share of Crude Oil is 57% (fifty
                                         seven percent) and CONTRACTOR’s share of Crude Oil is 43% (forty three percent).

 

		1.2.7	Natural
                                         Gas Base Split means SKK MIGAS’ share of Natural Gas is 52% (fifty
                                         two percent) and CONTRACTOR’s share of Natural Gas is 48% (forty eight percent).

 

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    CONTRACT AREA: CITARUM

    

  

		1.2.8	Variable Component means components that
are used as bases in production sharing calculation adjustment as described in Exhibit “F”.

 

		1.2.9	Progressive Component means components
that are used as bases in progressive production sharing calculation adjustment as described in Exhibit “G”.

 

		1.2.10	Actual Condition means condition of Variable
and/or Progressive Components’ parameters on the date when production sharing adjustment is conducted.

 

		1.2.11	Budget of Operating Costs means cost estimates
of all items included in the Work Program.

 

		1.2.12	Calendar Year or Year
means a period of twelve (12) months, commencing on January 1st and ending on December 31st, according to
the Gregorian Calendar.

 

		1.2.13	Calendar month or Month means a period
of calendar days in 1 (one) month in Calendar Year.

 

		1.2.14	Change of Control means any direct or indirect
change of Control of a Participating Interest Holder (whether through merger, sale of shares or other equity interests, or others)
through a single transaction or series of related transactions.

 

		1.2.15	Contract Year means a period of twelve
(12) consecutive months according to the Gregorian Calendar counted from the Effective Date of this CONTRACT or from the
anniversary of such Effective Date.

 

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		1.2.16	Contract Area means the area where CONTRACTOR
is appointed to carry out Petroleum Operations, as described and outlined in Exhibits “A” and “B” attached
hereto and made part hereof, less all areas relinquished pursuant to this CONTRACT.

 

		1.2.17	Control means direct ownership (by holding
company with one level above) or indirect ownership through (a) a majority ownership of the voting stock, if the company is a corporation
issuing stock, or (b) a majority ownership of the controlling rights or interests, if the other entity is not a corporation issuing
stock, or (c) an agreement designated by the shareholders of stock/interest to vote for a Controller. The terms Controls and Controlled
by shall be construed accordingly.

 

		1.2.18	Crude Oil means crude mineral oil, asphalt,
ozokerite and all kinds of hydrocarbons and bitumens, both in solid and in liquid form, in their natural state or obtained from
Natural Gas by condensation or extraction.

 

		1.2.19	Exploration Period means the exploration
terms of six (6) Contract Years, commencing on the Effective Date. Such a term may be extended once for a maximum period of four
(4) Contract Years.

 

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		1.2.20	Exploitation
                                         Period means the part of this CONTRACT term where exploitation
                                         activities are allowed to take place, which commences since the first POD proposals submitted
                                         by CONTRACTOR is approved by Minister.

 

	 	1.2.21	Effective Date means the date of the approval of this CONTRACT by GOI.

 

		1.2.22	Field means a certain part of
                                                                   Contract Area which produces Petroleum commercially.

 

	 	1.2.23	Firm Commitment means the Work Programs during the first *** Contract Years, as set forth in Sub-section 4.2 of this CONTRACT, for which CONTRACTOR is committed and obligated to complete.

 

	 	1.2.24	Work Commitment means the Work Programs during the second *** Contract Years, as set forth in Sub-section 4.2 of this CONTRACT.

 

		1.2.25	Force
                                         Majeure means delays or failure in performance under this CONTRACT
                                         caused by circumstances beyond the control and without the fault or negligence
                                         of the Party affected by an event of Force Majeure that may affect economically or otherwise
                                         the continuation of Petroleum Operations under this CONTRACT.
                                         It is understood that an event of Force Majeure shall include but not be restricted
                                         to acts of God or the public enemy, perils of navigation, fire, hostilities, war (declared
                                         or undeclared), blockade, labor disturbances, strikes, riots, insurrections, civil commotion,
                                         quarantine, restrictions, epidemics, storm, tsunami, earthquakes, or accidents.

 

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		1.2.26	Foreign
                                         Exchange means currency other than that of the Republic of Indonesia but
                                         acceptable to GOI, SKK MIGAS and
                                         CONTRACTOR.

 

		1.2.27	GOI means the Central Government
                                                                   of the Republic of Indonesia represented by the ministry which has the authority in the oil and gas sector.

 

		1.2.28	Grids means graticular sections
                                                                   defined by meridians of longitude (reference the meridian of Greenwich) and by parallels of latitude (reference the
                                                                   Equator).

 

		1.2.29	Gross Negligence or Willful
                                                                   Misconduct means act or omission by CONTRACTOR’s senior
                                                                   management or senior supervisory personnel which (i) was intended to cause or which was in reckless disregard of, or wanton
                                                                   in indifference to, the harmful consequences such person, knew or should have known, such act or omission would have on the
                                                                   safety or property of another person or entity or (ii) seriously deviates from a diligent course of action and which is in
                                                                   reckless disregard of or indifference to harmful consequences.

 

		1.2.30	Indonesia Income Tax Law means the applicable
Indonesian Income Tax Law including all of its implementing regulations as of the Effective Date.

 

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		1.2.31	The
                                         ten percent (10%) Participating Interest means a maximum of ten percent
                                         (10%) Participating Interest in this CONTRACT, which is offered by CONTRACTOR
                                         to a Local Government Owned Company designated by the Local Government, as referred
                                         to in Section 16.1 of this CONTRACT.

 

		1.2.32	Local Government Owned Company or LGOC
means a company established in accordance with Indonesian laws and regulations, which domiciles and operates in Indonesia in the
form of: (a) a local government owned company in which of the share is entirely owned by the local government; or (b) a limited
liability company in which at least ninety nine percent (99%) of the share is owned by local government and the remaining share
is affiliated entirely with the local government.

 

LGOC shall meet the following
criteria: a) its status is authorized by a local government regulation; b) not conducting business activity other than managing
Participating Interest.

 

	 	1.2.33	LGOC Subsidiary means business entity in the form of limited liability enterprise established by LGOC in which its capital is divided into shares directly or indirectly owned entirely by the local government.

 

		1.2.34	State Owned Company or SOC
means an entity of which the shares is entirely owned by the state through direct participation that
is derived from the state’s separated assets and which operates in oil and gas business.

 

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		1.2.35	Minister means the minister with
                                                                   the authority in the oil and gas sector.

 

		1.2.36	Natural
                                         Gas means all associated and/or non-associated gaseous hydrocarbons produced
                                         from a well, including wet mineral gas, dry mineral gas, casing head gas and residue
                                         gas remaining after the extraction of liquid hydrocarbons from wet gas.

 

		1.2.37	Net
                                         Realized Price FOB means the realized price of Crude Oil, the ICP (Indonesian
                                         Crude Price) as determined by GOI.

 

		1.2.38	Operating
                                         Costs means expenditures made and obligations incurred in carrying out
                                         Petroleum Operations, which consist of Exploration costs, Exploitation costs and other
                                         costs hereunder, determined in accordance with the Accounting Procedure attached hereto
                                         and deemed as an integral part hereof as Exhibit “C”.

 

		1.2.39	Operator means the CONTRACTOR or,
                                                                   in the case CONTRACTOR comprises of more than one Participating Interest
                                                                   Holder, one of the Participating Interest Holders appointed by the other Participating Interest Holder(s) to represent them
                                                                   under this CONTRACT.

 

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		1.2.40	Participating
                                         Interest means the undivided rights, interests and obligations of CONTRACTOR
                                         in and under this CONTRACT. For
                                         avoidance of doubt, if CONTRACTOR comprises
                                         more than one Participating Interest Holder, each of such Participating Interest Holders
                                         constitute CONTRACTOR shall have the rights and interests hereunder in the same percentage
                                         share of the Participating Interest it holds under this CONTRACT.

 

		1.2.41	Participating Interest Holder means
CONTRACTOR, or in the case that CONTRACTOR comprises
more than one Business Entity(ies) and or Permanent Establishment(s), those Business Entity(ies) and/or Permanent Establishment(s)
which holds certain percentage of Participating Interest, as approved by GOI.

 

		1.2.42	Petroleum means both or either
                                                                   Crude Oil and Natural Gas.

 

		1.2.43	Petroleum Operations means
all exploration, development, extraction, production, transportation, marketing, abandonment and site restoration
operations authorized or contemplated under this CONTRACT.

 

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		1.2.44	Plan of Development or POD
means a plan proposed by CONTRACTOR for the development of a field in which
Petroleum is discovered in a quantity and quality that may be produced commercially, the plan of which describes in reasonable
detail all information required by SKK MIGAS, including, inter alia, the estimated
quantities of reserves and production of Petroleum, expenditures required to develop the field in question and production costs
of Crude Oil and/or Natural Gas, costs for abandonment and restoration required for post Petroleum Operations including its funding
program, plan of utilization of the Crude Oil and/or Natural Gas to be produced, method and process of the exploitation of the
Crude Oil and/or Natural Gas, the estimated amount of GOI’s revenues
resulting from such development and the plan in utilizing Indonesian national manpower and domestic goods and services. The POD
for the development of Crude Oil and/or Natural Gas discovery in the subsequent field(s) shall be submitted to SKK
MIGAS for SKK MIGAS approval, based on consideration of all pertinent
operating and financial data made available by CONTRACTOR.

 

		1.2.45	Point of Delivery means the point of
delivery contemplated by Law No. 22/2001, which is the outlet flange of the loading arm after final sales meter at the delivery
terminal, or, some other point(s) mutually agreed by the Parties.

 

		1.2.46	Work Program means a statement itemizing
the Petroleum Operations to be carried out in the Contract Area.

 

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SECTION
II

TERM
AND COMMERCIALLY OF

CONTRACT
AREA

 

		2.1	TERM OF CONTRACT

 

		2.1.1	Subject to the following provisions
of this CONTRACT, the term of this CONTRACT
shall be thirty (30) Contract Years as from the Effective Date. The term of this CONTRACT
consists of Exploration Period and Exploitation Period.

 

		2.1.2	(a)	The initial term of Exploration Period shall be six (6) Contract Years as from the Effective
Date. At the end of the initial term of Exploration Period, CONTRACTOR shall
have the option to request a one time extension to SKK MIGAS for a maximum
period of four (4) Contract Years, and the approval of such request shall not be unreasonably withheld, provided that CONTRACTOR
shall have fully complied with the requirements of relinquishment of Contract Area referred to Section III, and fully
performed its Firm Commitment referred to Sub-section 4.2 of Section IV and fulfil all financial obligations hereof.

 

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	 	(b)	Notwithstanding the provisions in paragraph (a) of this Sub-section 2.1.2, in the event that CONTRACTOR fails to fulfil the requirements specified in Sub-section 2.1.2(a), SKK MIGAS may take into consideration the performance of CONTRACTOR in conducting exploration operations during six (6) Contract Year, fulfilment of financial obligations and CONTRACTOR’s effort to discover the hydrocarbon, in evaluating and determining if CONTRACTOR may obtain the approval of such extension.

 

	 	2.1.3	If at the end of the initial six (6) Contract Years of the Exploration Period or, as the case may be, the approved Contract Years extension thereto, no Petroleum in commercial quantities is discovered in the Contract Area, then without prejudice to Section XIII, Sub-section 13.6 hereof, this CONTRACT shall automatically terminate forthwith in its entirety, and CONTRACTOR shall relinquish all remaining Contract Area to GOI through SKK MIGAS immediately after the receipt of SKK MIGAS notification.

 

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    CONTRACT AREA: CITARUM

    

 

		2.2	COMMERCIALITY
OF CONTRACT AREA

 

	 	2.2.1	If within the Exploration Period, Petroleum is discovered in the Contract Area in a quantity and quality, which CONTRACTOR has reasonably determined can be produced commercially, CONTRACTOR shall immediately report such discovery to SKK MIGAS and GOI, for SKK MIGAS evaluation and written acknowledgement. Such report shall specify in reasonable detail the estimated amount of the reserves and quality of the Petroleum, supported with the relevant data, such as certificate regarding the quantity and quality of Petroleum reserves discovered by CONTRACTOR.

SKK MIGAS will not unreasonably withhold the delivery of its acknowledgement letter to CONTRACTOR.

 

		2.2.2	Upon receipt of SKK
MIGAS acknowledgement letter of such report of discovery, CONTRACTOR
shall, as soon as practicable, but in no case shall exceed three (3) Years thereafter, submit a proposed POD for the
field in which Petroleum is discovered for the first time, to SKK
MIGAS for evaluation. SKK MIGAS
will invite CONTRACTOR and
confer in good faith for clarification of any information and data included in the POD. SKK
MIGAS shall convey the result of its evaluation and its recommendation in respect of the POD to the Minister for approval.

 

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If
during such three (3) Years time limit, CONTRACTOR
does not submit a proposed POD and the Exploration Period has expired, then this CONTRACT
shall automatically terminate.

 

Notwithstanding to the paragraph
above, CONTRACTOR may request to SKK
MIGAS a maximum two (2) Years extension to the foregoing three (3) Years time limit, in relation to:

 

	 	(i)	the discovery of hydrocarbon in frontier or deep-water areas, or other certain areas the development of which, in SKK MIGAS’ judgment, is technically difficult; and/or

 

	 	(ii)	the discovery of Natural Gas field (except field containing associated Natural Gas), the sales and purchase commitment for which cannot be agreed by CONTRACTOR and buyer(s) within such three (3) Years time limit, having negotiated in good faith.

 

	 	2.2.3	If the Minister approves CONTRACTOR’s proposed POD for the first field in the Contract Area, such POD approval shall constitute the declaration of commerciality of the entire Contract Area and CONTRACTOR shall commence to develop the field and or fields in which the Petroleum is discovered.

 

If prior to the expiration of
the Exploration Period, CONTRACTOR has submitted to SKK
MIGAS a notification as provided for in Sub-section 2.2.1 of this CONTRACT,
notwithstanding Sub-section 2.1.3 and Sub-section 2.2.2, this CONTRACT shall
not terminate on the expiration of the Exploration Period or its extension, until and unless CONTRACTOR
receives a letter from SKK MIGAS notifying that either: (i) SKK
MIGAS does not agree to issue the acknowledgment of discovery reported by CONTRACTOR
for such first field in question, or (ii) Minister does not approve CONTRACTOR’s
proposed POD for the first field in the Contract Area.

 

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    CONTRACT AREA: CITARUM

    

 

In
the case that CONTRACTOR receives
such SKK MIGAS notification letter,
this CONTRACT shall automatically
terminate on the date of receipt of such SKK
MIGAS notification letter, and CONTRACTOR
shall immediately relinquish all remaining Contract Area to GOI
through SKK MIGAS.

 

		2.2.4	In the event that CONTRACTOR
which has received a POD approval to develop its first Field in the Contract Area fails to conduct Petroleum Operations
for the development of such first Field within a maximum period of five (5) consecutive
Years (meaning sixty (60) months) after the end of the Exploration Period, in accordance with the schedules proposed in the approved
POD, then unless the Parties otherwise agree this CONTRACT
shall automatically terminate on the expiration date of such five (5) Years time limit.

 

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    CONTRACT AREA: CITARUM

    

 

SKK MIGAS shall notify
CONTRACTOR of the expiration of such five (5) Years time limit and the expiration of this CONTRACT
Upon receipt of such notification letter, CONTRACTOR shall be obliged to relinquish
all remaining Contract Area to GOI through SKK
MIGAS.

 

	 	2.2.5	An exception to the foregoing five (5) Years time limit may be made in the event of development of Natural Gas field. If it is anticipated that during such five (5) Years time limit CONTRACTOR shall have not successfully entered into any commercial gas sales agreement, at the request of CONTRACTOR, SKK MIGAS may extend such five (5) Years time limit to a reasonable period(s) of time to be determined by SKK MIGAS. If at the end of such time limit extension, CONTRACTOR remains unable to enter into a commercial gas sales agreement, the Parties shall confer in good faith to determine all reasonable steps, including the possibility of not granting CONTRACTOR with additional extension. If eventually SKK MIGAS determines not to grant any additional extension to CONTRACTOR, SKK MIGAS shall advise CONTRACTOR of its decision and the expiration of the term of this CONTRACT, and CONTRACTOR shall, without prejudice to CONTRACTOR’s obligations to fulfil any of its outstanding obligations under this CONTRACT, be obliged to relinquish remaining Contract Area to GOI through SKK MIGAS.

 

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    CONTRACT AREA: CITARUM

    

 

		2.3	LIMITED COMMERCIAL CONTRACT AREA

 

		2.3.1	Limited
                                         Commercial Contract Area Due to Unitization

 

If
during the Exploration Period, Petroleum is discovered in a field in the Contract Area which straddles in the other contract area
which in the judgment of SKK MIGAS,
such field cannot be produced commercially by the Contract Area on its own, other than through unitization of the field with the
part of such field located substantially in other contract area adjacent to the Contract Area, then if the POD of such field is
approved by the Minister, the part of the field located in the Contract Area will be declared as a Limited Commercial Contract
Area. Upon the commencement of commercial production of Petroleum from such Limited Commercial Contract Area, CONTRACTOR
shall have the right to the Petroleum produced from the Limited Commercial Contract Area only.

 

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    CONTRACT AREA: CITARUM

    

 

		2.3.2	Consequences
                                         of Declaration of Limited Commercial Contract Area

 

Notwithstanding
the other provisions of this CONTRACT
which set out otherwise, to the extent that the circumstances described in Sub-Section 2.3.1 above occurred then if until the
expiration of the Exploration Period or its extension under this CONTRACT
no Petroleum is discovered from other field within the Contract Area (outside the Limited Commercial Contract Area)
in a quantity which may be produced commercially, then the Limited Commercial Contract Area shall be carved out and separated
from the original Contract Area, and shall be treated as producing acreage of the Contract Area, where the terms and conditions
of this CONTRACT shall continue
to apply, whilst the remaining portion of the Contract Area outside the Limited Commercial Contract Area shall be relinquished
to GOI through SKK
MIGAS.

 

		2.4	SUBSEQUENT PETROLEUM DISCOVERY

 

		2.4.1	Any Petroleum subsequently discovered in the Contract Area
shall be immediately reported to SKK MIGAS
and GOI for SKK
MIGAS evaluation.

 

	 	2.4.2	Upon receipt of the foregoing report, if SKK MIGAS considers that such discovery may be produced commercially, SKK MIGAS shall issue an acknowledgement letter of such commercial discovery. Following agreement with CONTRACTOR of such commercial discovery, CONTRACTOR shall, as soon as practicable, but consistent with the deadlines set forth in Sub-section 2.2.2, submit a proposed POD of the field in which the Petroleum is discovered to SKK MIGAS, for approval. In the event CONTRACTOR fails to submit the POD within the prescribed period CONTRACTOR shall be obliged to relinquish a portion of the Contract Area corresponding to the surface area where such field is located to GOI through SKK MIGAS.

 

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    CONTRACT AREA: CITARUM

    

 

		2.5	INVESTMENT IN
                                         THE END OF EXPLOITATION PERIOD

 

	 	2.5.1	At the end of the Exploitation Period, CONTRACTOR shall maintain the Oil and Gas production through investment(s), subject to SKK MIGAS approval.

 

		2.5.2	In the event
                                         of useful life of the assets purchased in the investment(s) referred to Sub-section 2.5.1
                                         exceeds CONTRACT period, the investment(s) as referred in Sub-section 2.5.1 becomes
                                         one of GOI’s considerations on granting the approval of the extension of
                                         the CONTRACT.

 

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    CONTRACT AREA: CITARUM

    

 

SECTION III

RELINQUISHMENT OF CONTRACT AREA

 

 

		 3.1 	 On or before the end of the initial three
    (3) Contract Years as from the Effective Date, CONTRACTOR shall relinquish
    twenty percent (20%) of the original total Contract Area. 

 

		 3.2 	 If at the end of the third (3rd)
    Contract Year the Firm Commitment has not been completed by CONTRACTOR pursuant
    to Sub-section 4.2 of Section IV, upon consideration and evaluation of SKK MIGAS,
    CONTRACTOR shall be obliged to relinquish an additional fifteen percent (15%) of the original total Contract
    Area at the end of the third Contract Year. 

 

		 3.3 	 On or before the end of the sixth (6th)
    Contract Year, CONTRACTOR shall relinquish additional portion(s) of Contract
    Area so that the area retained thereafter shall not be in excess of twenty percent (20%) of the original total Contract Area. 

 

		 3.4 	 Notwithstanding Sub-section 3.3 above, on
    or before the end of the sixth (6th) Contract Year, if any part of the Contract Area corresponding to the surface
    area in which Petroleum has been discovered, is greater than twenty percent (20%) of the original Contract Area, then CONTRACTOR
    shall not be obliged to relinquish such excess to SKK MIGAS for
    the purpose of the economic development of the Contract Area. 

 

 

    	 	27	 

    CONTRACT AREA: CITARUM

    

 

 

		 3.5 	 With regard to the portion of the Contract
    Area remaining after the mandatory relinquishments as set forth in Sub-sections 3.1, 3.2 and 3.3 above, CONTRACTOR
    shall maintain a reasonable exploration effort. In the event CONTRACTOR
    does not conduct any exploration program such as surveys and/or drilling(s) in the remaining Contract Area during
    two (2) consecutive Years after commercial production commences, SKK MIGAS may
    gives a reminder by written notice to CONTRACTOR, require CONTRACTOR
    to choose either to: (i) conduct an exploration program within six (6)
    months after receipt of such reminder and thereafter immediately submit and obtain a POD approval or (ii) relinquish such
    part of the Contract Area. 

 

In the event that CONTRACTOR
fails to fulfil its obligation provided for in point (i) of this Sub-section 3.5, CONTRACTOR
shall be obliged to relinquish such part of the Contract Area.

 

		 3.6 	 Upon thirty (30) days written notice to
    SKK MIGAS, prior to the end of the second Contract Year and prior to the
    end of any succeeding Contract Year, CONTRACTOR shall have the right to
    relinquish any portion of the Contract Area, and such portion shall then be credited to that portion of the Contract Area
    which CONTRACTOR is next required to relinquish under the provisions of
    Sub-sections 3.1, 3.2 and 3.3 hereof. 

 

		3.7	CONTRACTOR shall
    advise SKK MIGAS in advance of the date of relinquishment of the portion
    to be relinquished. For the purpose of such relinquishment, CONTRACTOR and
    SKK MIGAS shall consult with each other regarding the shape and size of
    each individual portion of the areas being relinquished, provided, however, that so far as reasonably possible, such portion
    shall each be of sufficient size and convenient shape to enable Petroleum Operations to be conducted thereon.

 

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    CONTRACT AREA: CITARUM

    

 

		3.8	The portion of the Contract Area to be relinquished shall
be in a number of Grids in accordance with longitude and latitude of spheroids.

 

		3.9	CONTRACTOR’s non-compliance with the relinquishment requirements specified in Sub-sections 3.1, 3.2 (if applicable) and/or 3.3 may be considered as a ground for SKK MIGAS not to approve CONTRACTOR’s request for extending the initial term of the Exploration Period referred to in Sub-section 2.1.2.

 

    	 	29	 

    CONTRACT AREA: CITARUM

    

SECTION IV

WORK PROGRAM AND BUDGET

 

 

		4.1	For this CONTRACT, CONTRACTOR shall commence Petroleum Operations in the Contract Area not later than *** since the Effective Date.

 

		4.2	The Work Program to be carried out by CONTRACTOR in conducting exploration operations pursuant to the terms of this CONTRACT during the first *** Contract Years since the Effective Date and in conducting Petroleum Operations pursuant to the terms of this CONTRACT during the next *** Contract Years with the projected estimated Work Program and Budget of Operating Costs in respect of each of such Contract Years is as follows:

 

	TAHUN	DESKRIPSI	AKTIVITAS	ANGGARAN
	KONTRAK	SATUAN	JUMLAH	SATUAN	JUMLAH
	3 Tahun ke-1	G and G Study	Paket	3	US$	***
	 	Seismic 2D Acquisition and Processing *)	Km	300	US$	***
	3 Tahun ke-2	G and G Study	Paket	5	US$	***
	 	Seismic 2D Acquisition and Processing *)	Km	250	US$	***
	 	Seismic 3D Acquisition and Processing *)	Km2	50	US$	***
	 	Exploratory Well	Sumur	3	US$	***

*) Licensing new multi-clients data or acquisition

 

Subject to the provisions of
this CONTRACT, during the first ***Contract Years, CONTRACTOR shall carry out the Work Program as set out above
in respect of each of those Contract Years.

 

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    CONTRACT AREA: CITARUM

    

 

If during the first ***Contract
Years CONTRACTOR failed to complete the Firm Commitment, CONTRACTOR may, with SKK MIGAS’ consent, carry
forward such remaining Firm Commitment to be performed in the following ***Contract Years without prejudice to CONTRACTOR’s
rights and obligations hereunder.

 

If during the first ***Contract
Years CONTRACTOR performs more work than required in the Firm Commitment, then such excess may be credited in the Work Commitment
as long as the said excess have a similar type and nature to the Work Commitment.

 

CONTRACTOR may submit revision of the Firm Commitment
to GOI through SKK MIGAS, and such approval shall be attached to and made an integral part of this CONTRACT.

 

CONTRACTOR may submit revision of the Work Commitment
to SKK MIGAS, and such approval shall be attached to and made an integral part of this CONTRACT.

 

		4.3	CONTRACTOR shall submit a performance bond for the benefit of GOI c/o Director General of Oil and Gas in the amount of ***United States Dollars (US$***) on behalf of Chairman of SKK Migas issued by Bank located in Jakarta, in relation to activities for the first ***Contract Years as set forth in Sub-section 4.2 above. Such submission shall be made no later than the day of the signing of this CONTRACT.

 

Director General of Oil and Gas shall deliver such performance bond
to SKK MIGAS.

 

The value of the
performance bond may be reduced if the value of remaining Firm commitment that has not
been satisfied is less than the value of performance bond.

 

    	 	31	 

    CONTRACT AREA: CITARUM

    

 

Thereafter
the remaining value of performance bond shall at least equal to the remaining value of Firm Commitment that has not been satisfied.

 

CONTRACTOR
shall extend the validity period of performance bond up to the completion of Firm Commitment, which shall be proposed
not later than ***prior to the expiration of performance bond and submit to SKK MIGAS
not later than *** since the issuance of performance bond’s extension.

 

		4.4	In the event CONTRACTOR requests for an extension of the Exploration Period after the *** Contract Year as set forth in Sub-section 2.1.2 of Section II:

 

		(a)	such extension
                                         request shall be accompanied by CONTRACTOR’s
                                         proposed annual exploration program up to the end of the proposed extension of
                                         Exploration Period to SKK
                                         MIGAS; and

 

		(b)	the proposed exploration program referred to in paragraph
(a) of this Sub-section 4.4 shall include the Work Program which has not been completed during the preceding Contract Years and
additional exploration work program to be carried out during the extension of the Exploration Period.

 

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    CONTRACT AREA: CITARUM

    

 

 

		4.5	In the event that SKK MIGAS approves CONTRACTOR’s proposed extension of Exploration Period as referred to in Sub-section 4.4 above for a period of more than *** Years, and at the end of the *** Contract Year CONTRACTOR failed to complete the Work Program approved to be carried out in the *** Contract Year which includes Work Programs not completed during the first *** Contract Years, if any, and carried over to be completed until the end of the ***  Contract Year, then such failure may be used by SKK MIGAS as a basis to propose the termination of CONTRACT in its entirety to GOI and request CONTRACTOR to relinquish Contract Area in its entirety.

  

		4.6	At least *** prior to the beginning of each Calendar Year or at such other time as otherwise mutually agreed by the Parties, CONTRACTOR shall prepare and submit to SKK MIGAS a Work Program and Budget of Operating Costs for the Contract Area setting forth the Petroleum Operations which CONTRACTOR proposes to carry out during the ensuing Calendar Year. SKK MIGAS approves or rejects Work Program based on evaluation results, while Budget of Operating Costs is used as supporting data in evaluation of Work Program.

 

		4.7	Should SKK MIGAS wish to propose a revision as to certain specific features of said Work Program, SKK MIGAS shall within *** after receipt thereof notify CONTRACTOR specifying the reasons in reasonable detail. Promptly thereafter, the Parties will meet and endeavor to agree on the revisions proposed by SKK MIGAS. In any event, any portion of the Work Program as to which SKK MIGAS has not proposed a revision shall be carried out as prescribed herein.

 

 

    	 	33	 

    CONTRACT AREA: CITARUM

    

 

		4.8	It is recognized by the Parties that the details of a Work
Program may require changes in the light of existing circumstances and nothing herein contained shall limit the right of CONTRACTOR
to make such changes, provided they do not change the general objective of the Work Program.

 

		4.9	It is further recognized that in the event of emergencies
or extraordinary circumstances requiring immediate actions, either Party may take all actions it deems proper or advisable to
protect its interests and those of its respective employees and any costs so incurred shall be included in the Operating Costs.

 

		4.10	SKK MIGAS agrees that the approval of a proposed
Work Program will not be unreasonably withheld.

 

    	 	34	 

    CONTRACT AREA: CITARUM

    

 

SECTION V

RIGHTS AND OBLIGATIONS OF THE PARTIES

 

		5.1	Subject to the provisions of Sub-sections 5.2.7 and 5.2.8
of Sub-section 5.2 herein below:

 

		5.2	CONTRACTOR shall:

 

		5.2.1	advance all necessary funds and purchase or lease all equipment,
supplies and materials required to be purchased or leased with either Rupiah or Foreign Exchange pursuant to the Work Program;

 

		5.2.2	furnish all technical aid, including foreign personnel,
required for the performance of the Work Program, payment whereof requires Foreign Exchange;

 

		5.2.3	furnish such
                                         other funds for the performance of the Work Program that requires payment in Rupiah or
                                         Foreign Exchange, including payment to foreign third parties that perform service as
                                         a contractor to CONTRACTOR;

 

	 	5.2.4	be responsible to prepare and execute the Work Program, with workman like manner and good engineering practices. In addition, CONTRACTOR shall, in conducting Petroleum Operations, implement the occupational health, safety & environmental protection standards applicable in oil and gas industry, take all reasonable and necessary precautions so as to prevent injury to or death of person and damage to environment and property, and comply with all applicable safety and environmental laws and regulations;

 

    	 	35	 

    CONTRACT AREA: CITARUM

    

 

	 	5.2.5	submit to SKK MIGAS and maintain regular reports, on the performance of this CONTRACT, including its operational, technical, safety and financial aspects thereof;

 

		5.2.6	(a)	conduct
                                         an environmental baseline assessment at the beginning of CONTRACTOR’s activities,
                                         and thereafter conduct any obligation pursuant to applicable law analysis of environmental
                                         impact (AMDAL);

 

	 	 	(b)	take the necessary precautions for protection of ecological systems, navigation and fishing and shall prevent extensive pollution of the land, sea or rivers and other as the direct result of Petroleum Operations undertaken under the Work Program;

 

    	 	36	 

    CONTRACT AREA: CITARUM

    

 

	 	 	(c)	subject to the provisions of paragraphs (e) and (f) of this Sub-section 5.2.6, upon the relinquishment of part of the Contract Area, or field abandonment, be responsible for the removal of all equipment and installations from such part of the Contract Area that is relinquished in a manner acceptable to SKK MIGAS and GOI, and perform all necessary site restoration activities in accordance with the applicable law and regulations to prevent hazards to human life and property of others or environment, provided however, if a third party appointed by GOI takes over any Contract Area or any field prior to such relinquishment or abandonment, CONTRACTOR shall be released from its obligations for the removal of the equipment and installations and performance of the necessary site restoration activities of the field in such Contract Area. In such event the CONTRACTOR’s right of control and utilization of all the accumulated fund reserved for the removal and restoration operations for such Contract Area deposited in the escrow account referred to in paragraph (e) of this Sub-section 5.2.6 shall be transferred to SKK MIGAS. 

Thereafter, SKK MIGAS shall immediately transfer such CONTRACTOR’s right of control and utilization of such accumulated fund to the third party appointed by GOI as AARF for financing the abandonment and site restoration by the third party appointed by GOI to take over the Contract Area or field referred to above;

 

    	 	37	 

    CONTRACT AREA: CITARUM

    

 

	 	 	(d)	include in the proposed annual Budget of Operating Costs, an estimate of the anticipated abandonment and site restoration costs for each exploratory well in the Work Program. All expenditures incurred by CONTRACTOR in the abandonment of all such wells and restoration of their drill sites shall be treated as Operating Costs in accordance with the Accounting Procedure attached hereto as Exhibit “C”;

 

	 	 	(e)	include with requisite POD for each commercial discovery, an abandonment and site restoration program required after relinquishment of any part of Contract Area or abandonment of any Field together with a funding procedure for such program. The amount of money estimated to be required for such abandonment and restoration program will be called “Abandonment and Restoration Funds” or “AARF” and shall be determined each Year in conjunction with the Budget of Operating Costs for the Plan of Development and Work Program and Budget of Operating Costs and be reviewed in the subsequent Years in accordance with Exhibit “C”. All such amount of money which constitutes the AARF shall be deposited in an escrow account controlled by, and in a prime bank operated in Indonesia acceptable to, CONTRACTOR and SKK MIGAS, provided that the implementation of which shall be in accordance with the applicable regulations. Any amount deposited in the escrow account for the AARF shall be treated as Operating Costs in accordance with the Accounting Procedure attached hereto as Exhibit “C”, and any interest earned therefrom shall become part of the AARF;

 

    	 	38	 

    CONTRACT AREA: CITARUM

    

 

	 	 	(f)	notwithstanding the foregoing, if for any reason CONTRACTOR (whether existing or its permitted assignees or transferees) is required by law or otherwise to remove the equipment and installations and perform the necessary abandonment and site restoration activities of the field in any part of Contract Area prior to the termination of this CONTRACT, with the approval of GOI through SKK MIGAS, CONTRACTOR may withdraw an amount of AARF required to conduct such abandonment and site restoration activities from the escrow account, which approval shall not be unreasonably withheld;

 

	 	 	(g)	without prejudice to paragraph (c) of Subsection 5.2.6, upon the expiration or termination of this CONTRACT, CONTRACTOR shall be responsible for conducting the abandonment and site restoration of the Contract Area, and for such purposes, CONTRACTOR may, with prior approval of GOI through SKK MIGAS, withdraw an amount of AARF required to conduct such abandonment and site restoration activities from the escrow account, which approval shall not be unreasonably withheld. In the event the remaining amount of AARF exceeds or does not suffice to finance the required abandonment and restoration, then such excess or shortage shall be credited or added to Operating Costs in accordance with the Accounting Procedure attached hereto as Exhibit “C”;

 

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    CONTRACT AREA: CITARUM

    

 

	 	5.2.7	have the right to sell, assign, transfer, convey or otherwise dispose of all or any part of its share of Participating Interest under this CONTRACT to any Affiliated Companies upon the prior written consent of GOI through SKK MIGAS, which consent shall not be unreasonably withheld, provided that any party to whom such Participating Interest is assigned under any provision of this CONTRACT shall not hold any Participating Interest in any other Production Sharing Contract or any other form of Cooperation Contract at any given time;

 

	 	5.2.8	have the right to sell, assign, transfer, convey or otherwise dispose of all or any part of its share of Participating Interest under this CONTRACT to any non-Affiliated Companies upon the prior written consent of GOI through SKK MIGAS, which consent shall not be unreasonably withheld, provided that any Party to whom such Participating Interest is assigned under any provision of this CONTRACT shall not hold Participating Interest in any other Production Sharing Contract or any other form of Cooperation Contract at any given time; and provided further that during the first ***  Contract Years and until the fulfillment of all of the Firm Commitment, CONTRACTOR shall remain a majority holder (greater than 50%) of the Participating Interest and shall hold the operatorship of this CONTRACT;

 

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    CONTRACT AREA: CITARUM

    

 

	 	5.2.9	undertake to obtain the approval of GOI through SKK MIGAS prior to any proposed direct Change of Control, which approval shall not be unreasonably withheld, provided that CONTRACTOR shall continue to meet the qualifications as CONTRACTOR and to be fully liable in executing Petroleum Operations and the approved Work Program and Budget of Operating Costs under this CONTRACT;

 

		5.2.10	undertake to notify GOI
through SKK MIGAS prior
to any proposed indirect Change of Control, provided that CONTRACTOR
shall continue to meet the qualifications as CONTRACTOR
arid to be fully liable in executing Petroleum Operations and the approved Work Program and Budget of Operating Costs
under this CONTRACT;

 

	 	5.2.11	ensure any change of operatorship or Change of Control shall be executed without making any major modification of any existing standard, method, system, technology, unless CONTRACTOR can demonstrate that any change proposed by CONTRACTOR shall improve efficiency and effectiveness, and reduce Operating Costs, and such changes have been approved in writing by SKK MIGAS before the implementation thereof;

 

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    CONTRACT AREA: CITARUM

    

 

		5.2.12	retain control of all leased property paid for with Rupiah
and/ or Foreign Exchange and brought into Indonesia, and CONTRACTOR
is entitled to freely remove the same from Contract Area;

 

		5.2.13	have the right of ingress to and egress from the Contract
Area and to and from facilities wherever located at all times;

 

	 	5.2.14	have the right to use and have access through SKK MIGAS, and GOI shall furnish all data and information of geological, geophysical, drilling, well, production and other information related to the Contract Area held by GOI. All costs incurred in obtaining such data and information shall be provided by CONTRACTOR, and shall be included in Operating Costs;

 

	 	5.2.15	submit through SKK MIGAS to GOI copies of all such original geological, geophysical, drilling, well, and production data resulting from the Petroleum Operations conducted in the Contract Area and other data and reports as it may compile during the term hereof;

 

		5.2.16	submit the
                                         original data as set forth in Sub-section 5.2.14 to GOI
                                         through SKK
                                         MIGAS at the time when CONTRACTOR
                                         relinquishes all or a part of Contract Area, and CONTRACTOR
                                         may retain copies of the original data subject to approval by GOI;

 

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    CONTRACT AREA: CITARUM

    

 

		5.2.17	prepare and carry out plans and programs for industrial
training and education of indonesians for all job classifications with respect to Petroleum Operations contemplated hereunder;

 

		5.2.18	have the right during the term hereof to freely lift, dispose
of and export its share of Crude Oil, and retain abroad the proceeds obtained therefrom;

notwithstanding the foregoing provision,
CONTRACTOR give preference of
its share of Crude Oil to fulfil domestic demand in accordance with laws and regulations;

 

		5.2.19	appoint an authorized representative (person or branch-office)
with respect to this CONTRACT, who
shall have an office in Jakarta;

 

	 	5.2.20	after commercial production commences, fulfil its obligation towards the supply of the domestic market. CONTRACTOR agrees to sell a portion of the share of Crude Oil to satisfy domestic market demand, and to deliver and sell to domestic gas buyers, a portion of the share of Natural Gas, to which CONTRACTOR is entitled pursuant to Sub-sections 6.2.3 and 6.3.3 of Section VI calculated for each Year as follows:

 

    	 	43	 

    CONTRACT AREA: CITARUM

    

 

		i.	For Crude Oil:

 

	 	(a)	Compute twenty five percent (25%) of CONTRACTOR’s entitlement as provided under Sub-section 6.2.3 of Section VI hereof multiplied by total quantity of Crude Oil produced from the Contract Area;

 

		(b)	The price at which such Crude Oil will be sold under this
Sub-section 5.2.20 shall be Indonesian Crude Price;

 

		ii.	For Natural Gas:

 

For
every new reservoir of Natural Gas discovered in the period following the Effective Date which can be produced commercially, CONTRACTOR
shall fulfil its obligation towards the supply of the domestic market as set out below:

 

	 	(a)	Upon the discovery of a new reservoir of Natural Gas following the Effective Date, CONTRACTOR shall notify GOI regarding such discovery;

 

	 	(b)	Following such notification as stipulated in paragraph (a) above the Parties shall agree on the quantity of proven reserves of Natural Gas of such discovered reserves in the Contract Area;

 

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    CONTRACT AREA: CITARUM

    

 

		(c)	Within the period of one (1) Year following agreement by
the Parties on the quantity of proven reserves as stipulated in paragraph (b) above, GOI shall give the opportunity for
domestic buyer to purchase such Natural Gas as calculated in Sub-section 5.2.20 (ii)(g);

 

	 	(d)	Not later than ***  following the expiration of ***  period stipulated in paragraph (c) above, GOI shall notify CONTRACTOR concerning the condition of domestic market demand;

 

	 	(e)	In case that in the period as stipulated in paragraph (d) above, GOI notifies CONTRACTOR of the existence of potential domestic gas buyer, CONTRACTOR shall enter into negotiations with such potential domestic gas buyer for the sale of gas to satisfy the domestic market obligation stipulated in this Sub-section 5.2.20;

 

    	 	45	 

    CONTRACT AREA: CITARUM

    

 

		(f)	In case that
                                         in the period as stipulated in paragraph (d) above GOI does not notify CONTRACTOR
                                         of
                                         the existence of potential domestic gas buyer or the negotiation as stipulated in paragraph
                                         (e) above fail, CONTRACTOR shall
                                         request the approval of GOI to market
                                         and sell the domestic market such quantity of Natural Gas in the international market;

 

	 	(g)	The quantity of Natural Gas which CONTRACTOR shall be obligated to supply for the consumption of domestic market shall be calculated as follows:

 

		(i)	computing twenty five percent (25%) of the quantity of
Natural Gas proven reserves in the newly discovered reservoir in the Contract Area.

 

		(ii)	multiply the amount stipulated in (i) with the percentage of CONTRACTOR’s entitlement
                                                                                   provided under Sub-section 6.3.3 of Section VI hereof.

 

CONTRACTOR shall
not be obligated to transport such Natural Gas beyond the Point of Delivery but upon request of SKK
MIGAS, CONTRACTOR shall assist in arranging transportation and such assistance shall be without costs or
risk to CONTRACTOR, including
incurred tax(es);

 

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    CONTRACT AREA: CITARUM

    

 

	 	5.2.21	notwithstanding the foregoing, CONTRACTOR recognizes GOI policy to at any time satisfy domestic consumption to its maximum. The Parties however agree that such policy shall not be implemented as to prevent or impede CONTRACTOR from fulfilling its obligations pursuant to any existing commitment/agreement to sell Natural Gas to a third party; or to materially erode the agreed economic of the gas project;

 

		5.2.22	give preference to such goods, services, technologies, and engineering and design expertise,
                                                                                     which are produced in Indonesia or rendered by Indonesian nationals, provided such goods, services, technologies, and
                                                                                     engineering and design expertise are offered at equally advantageous conditions with regard to quality, price,
                                                                                     availability of goods, services, technologies, and engineering and design expertise at the time and in the quantities
                                                                                     required;

 

Goods
and technologies may be imported as long as they are not domestically produced in Indonesia or in case of insufficient domestic
production capacities, and as long as the goods and technologies to be imported satisfies national standard evaluation of quality
and price, and provide on time delivery and after sales service guarantee;

 

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Obligation
to prioritize the domestic goods, services, technologies, and engineering and design expertise is conducted by CONTRACTOR
independently by complying all applicable laws and regulations;

 

	 	5.2.23	furnish such other funds and be responsible to conduct community development programs relating to the community surrounding and/or adjacent to the Contract Area during the term of this CONTRACT. Subject to Exhibit “C”, the expenditure required for performing such development programs shall be for the account of CONTRACTOR;

 

		5.2.24	severally
be subject to and pay to the Government of the Republic of Indonesia the income tax in accordance with the Indonesian Income Tax
Law, and if any, the final tax on profits after tax deduction or dividend in the event the contractor is an Indonesian legal entity,
imposed on it pursuant to applicable laws and regulations, and comply with the requirements of the tax law in particular with
respect to filing of returns, assessment of tax, and keeping and showing of books and record;

 

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In
the event that the Government of the Republic Indonesia requires crude oil and/or natural gas to fulfil domestic demand, payment
of income tax may be made in kind.

 

Upon
the fulfilment of the obligation to pay the income tax described above, shall be issued a crude oil and natural gas proforma income
tax statement, and a crude oil and natural gas income tax statement which calculation, payment terms and issuance shall be made
in accordance with the prevailing regulations;

 

		5.2.25	fulfill the obligation to pay value added tax (PPN), sales
tax on luxury goods (PPnBM), import duties on goods and import related tax(es) (PDRI) and land and building tax (PBB) in accordance
with the laws and regulations as of the Effective Date, as well as local tax(es) and levies (PDRD) imposed by local government
of the Republic of Indonesia in connection with Contract Area, in accordance with applicable laws and regulations;

 

Such payments shall be treated as Operating Costs in accordance with the
Accounting Procedure attached hereto as Exhibit “C”;

 

		5.2.26	notwithstanding
with Subsection 5.2.25, be relieved from import duties, import related tax(es) (PDRI), value added tax (PPN), and sales tax on
luxury goods (PPnBM) on materials, goods, and equipment imported in connection with Petroleum Operations, and obtain one hundred
percent (100%) deduction on land and building tax (PBB) until commencement of commercial production in accordance with the laws
and regulation as of the Effective Date. However, during the term of this CONTRACT,
shall be subject to any tax(es) and levies (PDRD) imposed by local government of the Republic of Indonesia with respect to the
Petroleum Operation in the Contract Area;

 

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exempted
from deduction of income tax (PPH) and shall not be imposed of value-added tax (PPN) on cost sharing facility proportionally charged
to all contractors who take a benefit from the sharing utilization of such facilities. Such activities conducted in exploitation
period in which the excess capacity of field processing, transporting, storage and marketing facilities are used by CONTRACTOR
upon approval from SKK MIGAS;

 

exempted
from deduction of income tax (PPH) and shall not be imposed of value added tax (PPN) on allocation of head office’s indirect
cost in accordance with laws and regulations as of the Effective Date;

 

		5.2.27	comply with all applicable laws of the Republic of Indonesia.
It is also understood that the execution of the Work Program shall be exercised so as not to conflict with international laws
ratified by Government of the Republic of Indonesia;

 

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		5.2.28	not disclose any geological, geophysical, petrophysical,
engineering, well and completion logs, status reports and any other data as CONTRACTOR
may compile during the term hereof to third parties without GOI’s
written consent. This Sub-section shall survive the life of this CONTRACT
for the period of time pursuant to the applicable laws and regulations; and

 

	 	5.2.29	secure and maintain sufficient insurance during the term of this CONTRACT, including on all facilities, materials, equipment’s, and Petroleum produced and stored prior to delivery. Without prejudice to the right of the insurance companies to reinsure the risks to reputable international reinsurance companies. All policies for such insurance shall be effected with reputable insurers established and running the business in Indonesia, on the terms and conditions approved by SKK MIGAS, which approval shall not be unreasonably withheld. The policy shall provide that SKK MIGAS is also named as co-insured. CONTRACTOR shall obtain waivers of subrogation in favor of GOI and SKK MIGAS and their respective officers, directors, employees, servants, agents, consultant and appointed representatives.

 

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		5.3	SKK MIGAS shall:

 

		5.3.1	have and be responsible for the management of the operations
contemplated hereunder, as well as assist and provide consultation CONTRACTOR
with a view to the fact that CONTRACTOR
is responsible for the Work Program.

 

In performing its management
function contemplated in this Subsection 5.3.1, SKK MIGAS shall have the right
to review the reasonableness of the work programs, and the appropriateness of any technical, methods, system, standards proposed
by CONTRACTOR in relation to POD and Work Program. Notwithstanding any review
made and approval granted by SKK MIGAS, CONTRACTOR shall remain responsible
for the execution of Petroleum Operations in compliance with the requirements of this CONTRACT
and Indonesian law;

 

	 	5.3.2	not be obliged to pay CONTRACTOR’s income tax including the final tax on profits after tax deduction nor taxes on tobaccos, liquor, income tax of any sub-contractors of the CONTRACTOR’s, income tax of any personnel of CONTRACTOR and its subcontractors, and other taxes not listed above;

 

 

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	 	5.3.3	otherwise assist and expedite CONTRACTOR’s execution of the Work Program by providing facilities, supplies and personnel including, but not limited to, supplying or otherwise making available all necessary transportation, security protection and rights of way and easements as may be requested by CONTRACTOR and made available from the resources supervised by SKK MIGAS. In the event such facilities, supplies or personnel are not available, then SKK MIGAS shall promptly secure the use of such facilities, supplies and personnel from alternative sources. Expenses thus incurred by SKK MIGAS at CONTRACTOR’s request shall be withdrawn from the advance placed by CONTRACTOR to SKK MIGAS. CONTRACTOR shall advance to SKK MIGAS before the beginning of each annual Work Program a minimum amount of *** United States Dollars (US$***), provided that the balance of any unexpended amount shall be returned to CONTRACTOR upon termination of this CONTRACT as stipulated in Section XIII.

 

If
at any time during the annual Work Program period the minimum amount advanced under this Sub-section 5.3.3 has been fully
expended, separately, an additional advance payment as may be necessary to provide the Rupiah expenses to be incurred by SKK
MIGAS during the remaining period of such annual Work Program, will be made. If any amount advanced hereunder is
not expended by SKK MIGAS by
the end of an annual Work Program period, such unexpended amount shall be credited against the minimum amount to be advanced
pursuant to this Subsection 5.3.3 for the succeeding annual Work Program period;

 

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		5.3.4	ensure that at all times during the term hereof sufficient
Rupiah funds shall be available to cover the Rupiah expenditure necessary for the execution of the Work Program;

 

	 	5.3.5	with the approval from and terms determined by CONTRACTOR, approve the utilization of assets by third parties to the extent that it does not interfere with CONTRACTOR’s performance of the Petroleum Operations. Notwithstanding the foregoing, for efficiency and optimum utilization of such asset, SKK MIGAS shall have the right to propose or facilitate the utilization of any assets controlled by CONTRACTOR by another CONTRACTOR of SKK MIGAS who enter into a cooperation contract pursuant to the Law Number 22/2001 provided that such other contractor wishes to utilize such asset is willing to compensate the utilization of such asset an amount proportionally to the cost charged on such asset, pursuant to SKK MIGAS approval and, provided further that the amount received by CONTRACTOR shall be credited to CONTRACTOR’s Operating Costs.

 

Such other contractor shall
defend, indemnify and hold harmless SKK MIGAS, CONTRACTOR, and CONTRACTOR’s Affiliated Company, from
and against any and all losses, claims, costs, liabilities, damages (including any loss of, or damage to, any property of, or injury
to or death of, any person), including any tax(es) incurred by them arising from or in connection with the use of such assets;

 

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	 	5.3.6	not disclose all original data resulting from Petroleum Operations including but not limited to geological, geophysical, petrophysical, engineering, well and completion logs, status reports and any other data as CONTRACTOR may compile during the term hereof to third parties without informing CONTRACTOR and obtaining the consent of GOI for disclosure of such data;

 

		5.4	Government of the Republic of Indonesia will ensure that the terms under which the CONTRACTOR’s obligations under this CONTRACT shall apply are the laws and regulations which are in effect as of the Effective Date, and thereby Government of the Republic of Indonesia will ensure that SKK MIGAS is in position to fully execute the CONTRACT.

  

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SECTION VI

HANDLING OF OPERATING
COSTS AND PRODUCTION

 

		6.1	HANDLING OF OPERATING COSTS

 

Operating
Costs shall be available as a deduction for the purposes of CONTRACTOR’s
tax filing and calculating CONTRACTOR’s
taxable income.

 

CONTRACTOR’s
Operating Costs is defined in Exhibit C.

 

		6.2	CRUDE OIL

 

		6.2.1	CONTRACTOR
is authorized by SKK MIGAS
and obligated to market all Crude Oil produced and saved from the Contract Area subject to the provisions hereinafter set forth
of which the cost shall be borne by CONTRACTOR.

 

		6.2.2	Except as provided in SectionVII Sub-sections 7.1.4 and
7.1.5, CONTRACTOR shall be entitled
to take and receive and freely export such Crude Oil.

 

		6.2.3	Of the Crude Oil, SKK
MIGAS and CONTRACTOR shall
be entitled to take and receive total production share of each Field as follow:

 

For
CONTRACTOR:

 

Base Split + (Variable Component’s correction value
+ Progressive Component’s correction value)

 

The amount resulted from the
formula above shall be adjusted to Actual Condition of Variable Component and Progressive Component of each Field at the time of
commercial production commence and stipulated in Actual Adjustment Official Report signed
by SKK MIGAS and CONTRACTOR and reported to GOI.

 

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The
amount of production share in the Actual Adjustment Official Report shall serve as a base for adjustment resulted from Progressive
Component’s monthly change, stipulated in Progressive Adjustment Official Report signed by SKK MIGAS and CONTRACTOR
and reported to GOI.

 

For
SKK MIGAS:

 

100%
- CONTRACTOR’s total production share.

 

	 	6.2.4	Title to CONTRACTOR’s portion of Crude Oil under Subsection 6.2.3 shall pass to CONTRACTOR at the Point of Delivery, or, in the case of Crude Oil delivered to GOI pursuant to Sub-section 5.2.20 or otherwise, at the Point of Delivery.

 

		6.2.5	CONTRACTOR
will use its best reasonable efforts to market the Crude Oil to the extent markets are available.

 

Notwithstanding
the foregoing, either Party shall be entitled to take and receive their respective portion in kind. If CONTRACTOR is required
to market SKK MIGAS’ portion of Crude Oil, then all proceeds resulting therefrom, after deduction of costs and any
incurred tax(es), shall be deposited to Government of Republic of Indonesia oil and gas account in Indonesia notified by SKK
MIGAS to CONTRACTOR from time to time. CONTRACTOR shall be obliged to ensure the deposit of oil and gas sales
revenue of SKK MIGAS’ portion in a timely and precise amount.

 

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	 	6.2.6	If SKK MIGAS elects to take any of its portion of Crude Oil in kind, it shall advise CONTRACTOR in writing not less than *** prior to the commencement of each semester of each Calendar Year specifying the quantity which it elects to take in kind, such notice to be effective for the ensuing semester of each Calendar Year, provided however, that such election shall not interfere with proper performance of any Crude Oil sales agreement for Petroleum produced within the Contract Area which CONTRACTOR has executed prior to the notice of such election.

 

Failure
to give such notice shall be conclusively deemed to evidence the election not to take in kind. Any sale of SKK MIGAS’
portion of Crude Oil by CONTRACTOR shall not be for a term of more than one Calendar Year without SKK MIGAS’ consent.

 

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		6.3	NATURAL GAS

 

	 	6.3.1	Any Natural Gas produced from the Contract Area to the extent not to be used in Petroleum Operations hereunder, including for effectuating the maximum recovery of Petroleum by secondary recovery, re-pressuring and recycling operations, may be flared if the processing and utilization thereof is not economical.

 

	 	6.3.2	However, should SKK MIGAS and CONTRACTOR consider that the development and/or the processing and utilization of Natural Gas is economical and choose to participate in the development and/or the processing and utilization thereof, in addition to that used in secondary recovery operations, then the construction and installation of facilities for such development and/or processing and utilization shall be carried out pursuant to an approved Work Program.

 

	 	6.3.3	It is hereby agreed that all revenues derived from such development and/ or processing, utilization and sale of Natural Gas, shall be treated on a basis equivalent to that provided for herein concerning Petroleum Operations and disposition of Crude Oil, except that for Natural Gas, or the propane and butane fractions extracted from Natural Gas but not spiked in Crude Oil. SKK MIGAS and CONTRACTOR shall be entitled to take and receive total production share of each fields as follow:

 

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For
CONTRACTOR:

 

Base Split
+ (Variable Component’s correction value + Progressive Component’s correction value)

  

The
amount resulted from the formula above shall be adjusted to Actual Condition of Variable Component and Progressive Component of
each Fields at the time of commercial production commence and stipulated in Official Actual Adjustment Report signed by SKK
MIGAS and CONTRACTOR and reported to GOI.

 

 The amount
of production share in the Official Actual Adjustment Report shall be served as base for adjustment resulted from Progressive
Component’s monthly change, stipulated in Officiai Progressive Adjustment Report signed by SKK MIGAS and CONTRACTOR
and reported to GOI.

 

For
SKK MIGAS:

 

100% - CONTRACTOR’s
total production share.

 

		6.3.4	In
the event, CONTRACTOR considers that the development and/or the processing and utilization of Natural Gas under a certain
field is not economical, then SKK MIGAS may choose to carve out such gas field apart from the Contract Area. In the case
that SKK MIGAS exercises its option mentioned above, CONTRACTOR shall, upon receipt of notification from SKK
MIGAS with respect to its decision to exercise its option, return the same to
GOI through SKK MIGAS. However, the foregoing provisions shall not be applicable to any Field producing Crude Oil
and associated Natural Gas.

 

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		6.3.5	In
                                         any event, title to CONTRACTOR’s portion of Natural Gas pursuant to Subsection
                                         6.3.3 shall pass to CONTRACTOR at the Point of Delivery. SKK MIGAS may
                                         request CONTRACTOR to market Natural Gas produced and stored from the Contract
                                         Area subject to the provisions in the CONTRACT of which the cost shall be borne
                                         by SKK MIGAS and CONTRACTOR. Marketing cost component determination shall be agreed
                                         by SKK MIGAS and CONTRACTOR in a separate agreement.

 

		6.3.6	If
the Parties agree to conduct further treatment and processing activities for Natural Gas in the form of liquified natural gas
(LNG), then it shall be stipulated in a separate agreeement which will become an integral part of this CONTRACT.

 

		6.4	PRODUCTION SHARE ADJUSTMENT

 

		6.4.1	In
the case of commercialization calculation of a fieid(s) does not reach a certain economic level, Minister can stipulate additional
production sharing percentage to CONTRACTOR.

 

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Such
commercialization calculation of a field(s) including CONTRACTOR’s obligation to pay value added tax (PPN), sales
tax on luxury goods (PPnBM), import duties on goods and tax related import (PDRI), land and building tax (PBB) as well as any tax(es)
and levies (PDRD) imposed by local government of the Republic of Indonesia as referred in Subsection 5.2.25.

 

		6.4.2	In
the case of commercialization calculation of a field(s) exceeds a certain economic level, Minister can stipulate additional production
sharing percentage to SKK MIGAS.

 

However,
it is clearly understood by the Parties that the intent of the Minister’s policy is not to reduce CONTRACTOR’S share
within a project that has a reasonable rate of economic return, as applicable in the development of similar Field(s) in the practice
generally accepted in the international up-stream oil and gas business, and shall be conducted in good faith.

 

		6.4.3	Stipulation
of the additional percentage of production sharing as referred in Subsections 6.4.1 and 6.4.2 only be given once for each PODs.

 

		6.4.4	On
the POD approval of the first field, the stipulation of the additional percentage of production sharing as referred in Sub-sections
6.4.1 and 6.4.2 shall be granted in the POD approval of first field considering SKK MIGAS evaluation.

 

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		6.4.5	On
the POD approval in the subsequent field(s), the stipulation of additional percentage of production sharing as referred in Subsections
6.4.1 and 6.4.2 shall be given prior to the approval of POD in the subsequent field(s).

 

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SECTION VII

VALUATION OF CRUDE OIL AND NATURAL GAS

 

		7.1	Crude
Oil sold to third parties shall be valued as follows:

 

		7.1.1	All
of CONTRACTOR’S Crude Oil share shall be valued at the Net Realized Price FOB Indonesia received by CONTRACTOR
for such Crude Oil;

 

		7.1.2	All
SKK MIGAS’ Crude Oil taken by CONTRACTOR and sold to third parties
shall be valued at the Net Realized Price FOB Indonesia received by CONTRACTOR for such Crude Oil;

 

		7.1.3	SKK
MIGAS shall be duly advised prior to the sales referred to in Sub-sections 7.1.1 and 7.1.2 are made;

 

	 	7.1.4	Subject to any existing Crude Oil sales agreement, if a more favorable net realized price is available to SKK MIGAS for the Crude Oil as referred to in Subsection 7.1.2, then SKK MIGAS shall advise CONTRACTOR in writing not less than *** prior to the commencement of the deliveries unde SKK MIGAS’ proposed sales contract. *** prior to the commencement of such deliveries, CONTRACTOR may notify SKK MIGAS regarding CONTRACTOR’s intention to meet the more favorable net realized price in relation to the quantity and period of delivery concerned in said proposed sales contract. In the absence of such notice SKK MIGAS shall market said Crude Oil through other party appointed by SKK MIGAS; and CONTRACTOR shall deliver such SKK MIGAS portion of Crude Oil to the Point of Delivery;

 

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	 	7.1.5	SKK MIGAS’ marketing of such Crude Oil as referred to in Subsection 7.1.4 shall continue until *** after SKK MIGAS’ net realized price on said Crude Oil becomes less favourable. CONTRACTOR’s obligation to market said Crude Oil shall not apply until after SKK MIGAS has given CONTRACTOR at least ***  advance notice of its desire to discontinue such sales. As long as SKK MIGAS is marketing the Crude Oil referred to above, it shall account to CONTRACTOR, on the basis of the more favourable net realized price;

 

		7.1.6	Without
                                         prejudice to any of the provisions of Section VI and Section VII, CONTRACTOR may
                                         at its option transfer to SKK MIGAS during any Calendar Year the right to market
                                         any Crude Oil which is in excess of CONTRACTOR’s normal and contractual
                                         requirement provided that the price is not less than the net realized price from the
                                         Contract Area;

 

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SKK
MIGAS’ request stating the quantity and expected loading date must be submitted in writing at least *** prior
to lifting said Crude Oil. Such lifting must not interfere with CONTRACTOR’s scheduled tanker movements. SKK MIGAS
shall account to CONTRACTOR in respect of any sale made by it hereunder;

 

	 	7.1.7	To meet domestic refinery demand, SKK MIGAS shall have the option, in any Year in which the quantity of Crude Oil to which SKK MIGAS is entitled pursuant to Sub-sections 6.2.3 and 6.3.3 hereof is insufficient, therefore by ***  written notice in advance of that Year, to appoint seller whom will market for the account of CONTRACTOR, at the price provided for in Section VII hereof, a quantity of Crude Oil which needed to fulfil domestic refinery demand.

 

		7.2	Crude
Oil sold to other than third parties shall be valued as follows:

 

	 	7.2.1	by using the minimum ICP price received by CONTRACTOR and SKK MIGAS from sales to third parties (excluding, commissions and brokerages paid in relation to such third party sales) during the *** preceding such sale adjusted as necessary for quality, grade and gravity; or

 

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	 	7.2.2	if no such third party sales have been made during such period of time, then on the basis used to value Indonesian Crude Oil of similar quality, grade and gravity and taking into consideration any special circumstances with respect to sales of such Indonesian Crude Oil.

 

		7.3	Third party sales referred to in this Section VII shall mean sales by CONTRACTOR to purchasers independent of CONTRACTOR.

 

		7.4	Marketing fees of Oil and/or Natural Gas in connection with marketing activities shall be treated as Operating Costs.

 

		7.5	During any given Calendar Year, the handling of production (i.e. the implementation of the provisions of Section VI hereof) and the proceeds thereof shall be provisionally dealt with on the basis of the relevant Work Program and Budget, of Operating Costs based upon estimates of quantities of Petroleum to be produced, of internal consumption in Indonesia, of marketing possibilities, of prices and other sale conditions as well as of any other relevant factors.

 

Within
*** after the end of said given Year adjustment and cash settlements between the Parties
shall be made on the basis of the actual quantities, amounts and prices involved, in order to comply with the provisions of this
CONTRACT.

  

		7.6	In
the event the Petroleum Operations involve the segregation of Crude Oil of different
quality and/or grade and if the Parties do not otherwise mutually agree:

 

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	 	7.6.1	any and all provisions of this CONTRACT concerning evaluation of Crude Oil shail separately apply to each segregated Crude Oil;

 

		7.6.2	each
Crude Oil produced and segregated in a given Year shall contribute to:

 

		(a)	the
 “required quantity” of Crude Oil to which a party’s entitled in such Year pursuant to Sub-section 6.2.3;

 

		(b)	the
                                         “required quantity” of Crude Oil approved by CONTRACTOR to be sold and
                                         delivered in such Year for domestic consumption pursuant to Sub-sections 5.2.20 Section
                                         V, from CONTRACTOR’s Crude Oil share to which it is entitled pursuant to
                                         Sub-section 6.2.3;

 

with
quantities, each of which shall bear to the respective “required quantity” referred to in letters (a) or (b) above, the
same proportion as the quantity of such Crude Oil produced and segregated in such given Year bears to the total quantity of Crude
Oil produced in such Year from the Contract Area.

 

		7.7	All
Natural Gas sold to third parties shall be valued at contract sales price.

 

		7.8	Natural
Gas sold to other than third parties shall be valued as follows:

 

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	 	7.8.1	by using the weighted average per unit price received by CONTRACTOR and SKK MIGAS from sales to third parties (excluding, commissions and brokerages paid in relation to such third party sales) during the *** preceding such sale adjusted as necessary for quality and specification; or

 

		7.8.2	if
no such third party sales have been made during such period of time, then on the basis used to value Indonesian Natural Gas of
similar quality and specification and taking into consideration any special circumstances with respect to sales of such Indonesian
Natural Gas.

 

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SECTION VIII

BONUS
AND ASSISTANCE

 

		8.1	CONTRACTOR shall within *** after GOI’s request in writing provide GOI with equipment and/or services in an amount not exceeding the sum of *** United States Dollars (US$***), for special purposes.

 

		8.2	With the determination of cumulative Petroleum production as the component in determining the amount of CONTRACTOR’s production sharing, the production bonus shall be zero (0).

 

 

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SECTION IX

PAYMENTS

 

		9.1	Unless
                                         as specifically stated under the CONTRACT, all payments which this CONTRACT
                                         obligates CONTRACTOR to make to SKK
                                         MIGAS or GOI shall be made in United States Dollars at a bank operating in
                                         Indonesia to be designated by SKK MIGAS or GOI and agreed upon by Bank
                                         Indonesia, or at CONTRACTOR’s election, other currency acceptable to them,
                                         except that CONTRACTOR may make such payments in Indonesian Rupiahs to the extent
                                         that such currencies are realized as a result of the domestic sale of Crude Oil or Natural
                                         Gas or Petroleum products, if any.

  

		9.2	All payments due to CONTRACTOR shall be made in United States Dollars or, at SKK MIGAS’ election, other currencies acceptable to CONTRACTOR at a bank to be designated by CONTRACTOR.

 

		9.3	Any payments required to be made pursuant to this CONTRACT, unless specifically stated otherwise hereunder, shall be made not later than *** after the occurrence of the payment obligation.

 

 

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SECTION
X

TITLE TO GOODS, EQUIPMENT, LAND

AND INTELLECTUAL PROPERTY

RIGHTS

 

		10.1	All
goods and equipments purchased by CONTRACTOR pursuant to the Work Program and used directly in Petroleum Operations becomes
the property of the Republic of Indonesia (in case of import, when landed at the Indonesian ports of import for goods and equipment
which obtained facility as referred to in Sub-section 5.2.26 of Section V) supervised by GOI and managed by SKK MIGAS.

 

		10.2	The
                                         provisions of Sub-section 10.1 of this Section X shall not apply to leased equipment
                                         belonging to third parties who perform service as a contractor to the CONTRACTOR,
                                         which equipment may be freely removed from the work location within the Contract Area
                                         or reexported from Indonesia.

 

		10.3	The
excess supplies of goods and equipments may be transferred to other contractor in accordance with applicable laws and regulations.

 

		10.4	Land
that its acquisition process has been completed by CONTRACTOR shall become the property of Republic of Indonesia and such
land is managed by SKK MIGAS, except that of leased land.

 

Land that its acquisition
process has been completed shall be submitted for land certificate in accordance with all applicable laws and regulations.

 

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SECTION
XI

CONSULTATION and arbitration

 

		11.1	Periodically,
SKK MIGAS and CONTRACTOR shall meet to discuss the conduct of the Petroleum Operations envisaged under this CONTRACT
and will make every effort to settle amicably any problem arising therefrom.

 

		11.2	In the case of any disputes arising between SKK MIGAS and CONTRACTOR relating to this CONTRACT or the interpretation and performance of any of the provisions contained in this CONTRACT shall be settled amicably and persuasively within *** after the receipt by one Party of a notice from the other Party of the existence of the dispute.

 

		11.3	Dispute pursuant to Sub-section 11.2 which cannot be settled amicably, shall be submitted to the decision of arbitration by a three (3) arbitrator panel conducted in accordance with the UNCITRAL arbitration rules contained in resolution 31/98 adopted by the United Nations General Assembly on December 15, 1976 and called “Arbitration Rules of the United Nations Commission on International Trade Law” as in force at the time such arbitration is commenced. SKK MIGAS on the one hand and CONTRACTOR on the other hand shall each appoint one arbitrator and notify the other Party and these two arbitrators will appoint a third. If either Party fails to appoint an arbitrator within *** after receipt of a written request to do so, at the request of the other Party, except the Parties agree otherwise, such arbitrator shall be appointed by the Secretary General of the International Centre for Settlement of Investment Disputes (ICSID).

 

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If
the first two arbitrators appointed as aforesaid fail to agree on the third arbitrator within *** following
the appointment of the second arbitrator, the third arbitrator shall be appointed, at the request of either Party, by the Secretary
General of ICSID. The third arbitrator appointed hereunder shall act as the chairman of the arbitral panel. If an arbitrator fails
or is unable to perform the obligation, the successor will be appointed in the same manner with the appointment of the arbitrator
whom he succeeds. The Parties shall perform this CONTRACT until the arbitration panel issued its decision.

 

		11.4	The
award rendered in such arbitration shall be final and binding upon the Parties, and judgement thereon may be entered In any court
having jurisdiction for its enforcement. The Parties hereby waive their right to appeal any decision of the arbitral panel and
agree that neither Party shall appeal the decision of the arbitral panel in any court and accordingly the Parties hereby waive
the applicability of any provision of laws and regulations or any competent authority that would otherwise give the right to appeal
the decisions of the arbitral panel. In addition, the Parties agree that neither Party shall have any right to commence nor maintain
any suit nor legal proceeding concerning the dispute hereunder, except the legal proceeding required for the enforcement of the
execution of the award rendered by the arbitral panel.

 

		11.5	Arbitration shall
be conducted in the English language and shall be placed in Indonesia.

 

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SECTION XII

EMPLOYMENT AND TRAINING OF

INDONESIAN PERSONNEL

 

		12.1	CONTRACTOR
agrees to employ qualified Indonesian personnel and will undertake the schooling and training of Indonesian personnel for
labour and staff positions including administrative and executive management positions. CONTRACTOR shall also consider
with SKK MIGAS a program of assistance for training of GOI’s and SKK MIGAS’ personnel.

 

		12.2	Costs
                                         and expenses of training Indonesian personnel for its own employment shall be borne by
                                         CONTRACTOR and included in Operating Costs. Costs and expenses for a program of
                                         training for GOI’s and SKK MIGAS’ personnel shall be
                                         borne by GO! or SKK MIGAS.

 

    	 	75	 

    CONTRACT AREA: CITARUM

    

SECTION XIII

CONTRACT TERMINATION

 

		13.1	This
CONTRACT cannot be terminated by CONTRACTOR during the first three (3) Contract Years as from the Effective Date.

 

		13.2	At
any time following the end of the third (3rd) Contract Year as from the Effective Date, if in the opinion of CONTRACTOR
circumstances do not warrant continuation of the Petroleum Operations, CONTRACTOR may, by giving written notice to
that effect to SKK MIGAS and after consultation with SKK MIGAS, relinquish its rights and be relieved of its obligations
pursuant to this CONTRACT, except such rights and obligations related to the period prior to such relinquishment.

 

		13.3	If at the end of the third (3rd) Contract Year, CONTRACTOR has not completed its Firm Commitment pursuant to Sub-section 4.2, CONTRACTOR may, after consuitation with SKK MIGAS, terminate this CONTRACT and relinquish its rights hereunder by rendering a *** prior written notice to SKK MIGAS. CONTRACTOR shall not be relieved of its obligations under this CONTRACT unless and until CONTRACTOR transfers the remaining amount of the estimated expenditure for the remaining unperformed Work Program for the *** Contract Years Firm Commitment to GOI. However, in the event all programs during the first three (3) Contract Years have been completed by CONTRACTOR and CONTRACTOR spent less than the estimated amount budgeted for the Firm Commitment Work Program pursuant to Sub-section 4.2, CONTRACTOR shall not be obliged to transfer the remaining amount of the initial *** Contract Years estimated expenditures to GOI.

 

    	 	76	 

    CONTRACT AREA: CITARUM

    

 

		13.4	Notwithstanding
anything to the contrary herein, this CONTRACT shall be automatically terminated in its entirety on the expiration date
specified in and in accordance with the provisions of Sub-sections 2.1.3, 2.2.4, 2.2.5 or Sub-Section 4.5, as applicable.

 

		13.5	If
at any time during the term of this CONTRACT, CONTRACTOR has failed to perform this CONTRACT in a good and prudent
manner and has failed to fulfil any of its obligations under this CONTRACT, particularly those specified in Sections III
and/or IV and/or V and/or VIII hereof, SKK MIGAS shall have the right to issue to CONTRACTOR a “Performance
Deficiency Notice”. Such Notice shall detail the specific performance deficiencies of CONTRACTOR under this CONTRACT.

 

Upon
receipt of the Performance Deficiency Notice from SKK MIGAS, CONTRACTOR shall remedy the deficiencies detailed in such Performance
Deficiency Notice within *** after the receipt thereof. Should CONTRACTOR fail
to remedy the deficiencies within the specified *** or the Parties fail to agree on
an extension period in which CONTRACTOR able to remedy the deficiencies, notwithstanding the requirement under Sub-section
13.6, such deficiencies shall become a conclusive evidence of CONTRACTOR’s breach that can be used by SKK MIGAS
as the basis to terminate this CONTRACT in its entirety and thereupon CONTRACTOR shall immediately relinquish the
entire Contract Area to GOI through SKK MIGAS.

 

		13.6	Without
                                                                               prejudice to the provisions stipulated in Sub-section 13.1 termination of this CONTRACT, for any reason, shall not
                                                                               release CONTRACTOR from its outstanding obligations, including the obligation to perform any necessary abandonment of
                                                                               any fields, removal of any equipment and installations and site restoration pursuant to Sub-section 5.2.6.

 

    	 	77	 

    CONTRACT AREA: CITARUM

    

 

SECTION XIV

BOOKS AND ACCOUNTS AND AUDITS

		14.1	BOOKS AND ACCOUNTS

 

Subject
to the requirements of Sub-section 5.2.24 of Section V, SKK MIGAS with the assistance of CONTRACTOR shall perform
record reflecting Petroleum production as well as monies received from the sale of Petroleum and financial report, consistent with
Petroleum industry practices.

 

		14.2	AUDITS

 

	 	14.2.1	Authorized Central Government Institution shall have the right to inspect and audit CONTRACTOR’s report referred to in Sub-section 14.1 related to this CONTRACT for each Calendar Year.

 

		14.2.2	SKK
                                                                                     MIGAS shall have the right to inspect and audit CONTRACTOR’s operation activities based on the approved Work
                                                                                     Program under this CONTRACT.

 

	 	14.2.3	CONTRACTOR shall have the right to inspect and audit SKK MIGAS’ books and accounts but only with respect to the use of advance payment referred to in Sub-section 5.3.3 of this CONTRACT. Any such audit will be satisfied within *** after its commencement. Any exception must be made in writing within *** following the end of such audit and failure to give such written exception within such time shall establish the correctness of SKK MIGAS books and accounts.

 

 

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    CONTRACT AREA: CITARUM

    

  

SECTION XV

OTHER PROVISIONS

 

		15.1	LANGUAGE

 

This
CONTRACT has been executed in both Indonesian and English ianguages and both texts are valid and have the same legal force.
In the case of any difference in the interpretation of the two texts, the Indonesia text shall prevail and shall be considered
the official text.

 

		15.2	NOTICE

 

Any
notices required or given by either Party to the other shall be deemed to have been delivered when properly acknowledged for receipt
by the receiving Party.

 

All
notices to SKK MIGAS shall be addressed to:

 

SATUAN
KERJA KHUSUS

PELAKSANA KEGIATAN USAHA

HULU MINYAK DAN GAS BUMI

(SKK MIGAS)

 

Wisma
Mulia Building 35th Floor,

Jl.
Jend Gatot Subroto No.42’

Jakarta
12710 

Attn : Chairman

 

and

 

all
notices to CONTRACTOR shall be addressed to:

 

PT
COGEN NUSANTARA ENERGI,

 

Ruko
Cempaka Putih Permai,

Jl.
Cempaka Putih Permai C-9, RT.012

/ RW.005, Kel. Cempaka Putih Timur,

Kec.
Cempaka Putih,

Jakarta
Pusat 10510,

Attn
: Director

 

and

 

    	 	79	 

    CONTRACT AREA: CITARUM

    

 

PT HUTAMA WIRANUSA ENERGI,

 

Dea
Tower I, Lantai 11 Suite 1103,

Jl.
Mega Kuningan Barat Kav.E4.3

No.1-2, Kel. Kuningan Timur, Kec.

Setiabudi,

Jakarta
Selatan 12950

Attn : Director

 

Either
Party may substitute or change such address upon rendering a prior written notice thereof to the other.

 

		15.3	LAWS
                                         AND REGULATIONS

 

		15.3.1	The
laws of the Republic of Indonesia and its amendment shall apply to this CONTRACT unless otherwise regulated in this CONTRACT.

 

		15.3.2	No
terms or provisions of this CONTRACT, including the agreement of the Parties to submit to arbitration hereunder, shall
prevent or limit the Government of the Republic of Indonesia from exercising its inalienable rights.

 

		15.4	FORCE
                                         MAJEURE

 

		15.4.1	Except
for the failure or inability of a Party to make its payment obligation when due hereunder, any failure or delay on the part of
either Party in the performance of their obligations or duties hereunder shall be excused to the extent attributable to Force
Majeure.

 

		15.4.2	If
the Petroleum Operations are delayed, curtailed or prevented by such causes, then the time for carrying out the obligations thereby
affected, the term of this CONTRACT and all rights and obligations hereunder shall be extended for a period equal to the
period thus involved.

 

    	 	80	 

    CONTRACT AREA: CITARUM

    

 

		15.4.3	The
Party whose ability to perform its obligations affected by event of Force Majeure and intends to seek relief under Sub-section
15.4.1 and/or extension of the term of CONTRACT referred to in Sub-section 15.4.2 shall notify the other Party thereof
in writing as soon as practicable but in no case shall be later than forty eight (48) hours after the occurrence of Force Majeure
or after such Force Majeure is known by the Party so affected, specifying the cause, nature extent of the circumstances giving
rise to Force Majeure, and both Parties shall do all reasonably possible within their power to remove such cause or to find a
solution by which this CONTRACT may be performed despite the continuance of the Force Majeure.

 

		15.4.4	Force
Majeure as stipulated in Sub-Section 15.4 shall be agreed upon by the Parties and subsequently notified to GOI.

 

		15.4.5	In
case of dispute with respect to the existence of Force Majeure claimed by a Party, such dispute shall be settled pursuant to Section
XI.

 

    	 	81	 

    CONTRACT AREA: CITARUM

    

 

		15.5	PROCESS ASSOCIATED PRODUCTS

 

Unless
the associated product requires a special and different treatment, or falls under other than crude oil and gas upstream regulatory
regime, in principle of the production, processing and marketing of such associated product referred shall be treated as production,
processing and marketing of hydrocarbon product under this CONTRACT and the revenues received by CONTRACTOR shall
be CONTRACTOR’s taxable income calculated in accordance with prevailing regulations.

 

    	 	82	 

    CONTRACT AREA: CITARUM

    

 

SECTION
XVI

PARTICIPATION

  

		16.1	Subject to the applicable laws and regulations, at the time the first Plan of Development is approved by GOI, CONTRACTOR shall have obligation to offer a ten percent (10%) Participating Interest under this CONTRACT (hereinafter called “10% Participating Interests”) by registered letter to LGOC to be informed by SKK MIGAS, in the period on *** after receipt of the registered letter from SKK MIGAS regarding the LGOC appointment.

 

		16.2	LGOC shall advise its interest and competency by registered letter to CONTRACTOR within 60 (sixty) days after receipt of offer letter from CONTRACTOR. If LGOC is not interested in such offer or no notification specifying its interest in such offer is given within *** after the date of the offer, the 10% Participating Interest offer from CONTRACTOR to LGOC shall be deemed terminated.

 

		16.3	Within *** after receipt of LGOC interest on the offer of 10% Participating Interest, LGOC may conduct due diligence and access the data related to the Contract Area and this CONTRACT.

 

		16.4	No later than the latest day of the *** of due diligence, LGOC shall advise CONTRACTOR of its decision whether it is interested or not interested in the 10% Participating Interests offer.

 

 

    	 	83	 

    CONTRACT AREA: CITARUM

    

 

If LGOC does not give
its interest and competency of the offer as notified by registered letter to CONTRACTOR
or no notification specifying its interest and competency in such offer is given within the period of such *** 10%
Participating Interest offer from CONTRACTOR to LGOC shall be deemed terminated.

 

		16.5	In
the event of acceptance by LGOC of CONTRACTOR’s  offer, the LGOC, shall be deemed to have acquired
the 10% Participating Interest after Minister approval through SKK MIGAS and shall come into effect on the date of such
approval.

 

		16.6	In
the case of 10% Participating Interest as specified in this Section XVI is not held by LGOC, the LGOC may appoint
the LGOC Subsidiary provided that the appointment of which shall comply to the applicable laws and regulations.

 

		16.7	In
                                         relation to the offer to SOC shall comply to the applicable laws and regulations.

 

		16.8	During
the CONTRACT period, SOC, LGOC or LGOC Subsidiary shall not sell, assign, transfer, convey or otherwise
dispose of all or any part of the 10% Participating Interests and/or the LGOC’s or LGOC Subsidiary’s
shareholders are restricted to transfer the shares to other party.

 

		16.9	SKK MIGAS
shall be notified in writing by CONTRACTOR with regard to all process of the 10% Participating Interests offer referred
to in this Section XVI.

 

		l6.10	Cooperation
                                         scheme between CONTRACTOR and SOC, LGOC, or LGOC Subsidiary
                                         shall refers to applicable laws and regulations. The amount of rights and obligations
                                         of SOC, LGOC, or LGOC Subsidiary is calculated proportionally.

 

    	 	84	 

    CONTRACT AREA: CITARUM

    

 

SECTION XVII

EFFECTIVENESS

 

		17.1	This
                                         CONTRACT shall come into effect on the Effective Date.

 

		17.2	This
                                         CONTRACT shall not be annulled, amended or modified in any respect, except by
                                         the mutual consent in writing of the Parties hereto and approved by the Minister.

 

IN
WITNESS WHEREOF, the Parties hereto have executed this CONTRACT, in triplicate, in Jakarta and in the Indonesian and
English language, as of the day and year first above written, each of the executed copies shall be deemed as the original copy
which has the same legal force and effect.

 

SATUAN
KERJA KHUSUS

PELAKSANA
KEGIATAN USAHA HULU

MINYAK
DAN GAS BUMI (SKK MIGAS) 

 

/s/
AMIEN SUNARYADI

 

AMIEN
SUNARYADI

Chairman/Kepala

 

APPROVED
BY THE MINISTER OF ENERGY AND MINERAL RESOURCES

 

This 6th day of July 2018

 

on
behalf of the

GOVERNMENT
OF THE REPUBLIC OF INDONESIA

 

/s/
IGNASIUS JONAN

 

IGNASIUS
JONAN

Minister
of Energy and Mineral Resources

 

    	 	85	 

    CONTRACT AREA: CITARUM

    

  

EXHIBIT
 “A”

 

This
Exhibit “A” is attached to and made an integral part of the CONTRACT between SATUAN KERJA KHUSUS PELAKSANA
KEGIATAN USAHA HULU MINYAK & GAS BUMI (SKK MIGAS) and PT COGEN NUSANTARA ENERGI and PT HUTAMA WIRANUSA ENERGI, Dated the day 7th of June 2018 in the Contract Area of Citarum, onshore Jawa Barat.

 

The
Contract Area herein described is shown on Exhibit “B” of the CONTRACT.

 

DESCRIPTION OF CONTRACT
AREA

 

 

***

 

    	 		A - 1

    CONTRACT AREA: CITARUM

    

 

***

 

    	 		A - 2

    CONTRACT AREA: CITARUM

    

 

*** 

 

    	 		A - 3

    CONTRACT AREA: CITARUM

    

 

*** 

 

    	 		A - 4

    CONTRACT AREA: CITARUM

    

 

*** 

 

    	 		A - 5

    CONTRACT AREA: CITARUM

    

 

*** 

 

    	 		A - 6

    CONTRACT AREA: CITARUM

    

 

***  

 

The
Contract Area of Citarum, onshore Jawa Barat described above consists of approximately 3,924.67 square kilometers.

 

—o0o—

 

    	 		A - 7

    CONTRACT AREA: CITARUM

    

 

EXHIBIT “B”

 

This
Exhibit “B” is attached to and made an integral part of the CONTRACT between SATUAN KERJA KHUSUS PELAKSANA
KEGIATAN USAHA HULU MINYAK & GAS BUMI (SKK MIGAS) and PT COGEN NUSANTARA ENERGI and PT HUTAMA WIRANUSA ENERGI, Dated the day 7th of June 2018 in the Contract Area Citarum, onshore Jawa Barat.

 

 

    	 		B - 1

    CONTRACT AREA: CITARUM

    

 

GEOGRAPHIC
COORDINATES OF

CITARUM BLOCK

 

	POINT	LATITUDE	LONGITUDE
	A	*** 	*** 
	B	*** 	*** 
	C	*** 	*** 
	D	*** 	*** 
	E	*** 	*** 
	F	*** 	*** 
	G	*** 	*** 
	H	*** 	*** 
	I	*** 	*** 
	J	*** 	*** 
	K	*** 	*** 
	L	*** 	*** 
	M	*** 	*** 
	N	*** 	*** 
	O	*** 	*** 
	P	*** 	*** 
	Q	*** 	*** 
	R	*** 	*** 
	S	*** 	*** 
	T	*** 	*** 
	U	*** 	*** 
	V	*** 	*** 
	W	*** 	*** 
	X	*** 	*** 
	Y	*** 	*** 
	Z	*** 	*** 
	A1	*** 	*** 
	B1	*** 	*** 
	C1	*** 	*** 
	D1	*** 	*** 
	E1	*** 	*** 
	F1	*** 	*** 
	G1	*** 	*** 
	H1	*** 	*** 
	I1	*** 	*** 
	J1	*** 	*** 
	K1	*** 	*** 
	LI	*** 	*** 
	M1	*** 	*** 
	M	*** 	*** 
	O1	*** 	*** 
	P1	*** 	*** 
	Q1	*** 	*** 
	R1	*** 	*** 
	S1	*** 	*** 
	T1	*** 	*** 
	U1	*** 	*** 
	V1	*** 	*** 
	W1	*** 	*** 
	X1	*** 	*** 
	Y1	*** 	*** 
	Z1	*** 	*** 

 

	POINT	LATITUDE	LONGITUDE 
	A2	*** 	*** 
	B2	*** 	*** 
	C2	*** 	*** 
	D2	*** 	*** 
	E2	*** 	*** 
	F2	*** 	*** 

  

	INNER BOUNDARY -1	 
	POINT	LATITUDE	LONGITUDE 
	A	*** 	*** 
	B	*** 	*** 
	C	*** 	*** 
	D	*** 	*** 

 

	INNER BOUNDARY-2	 
	POINT	LATITUDE	LONGITUDE
	A	*** 	*** 
	B	*** 	*** 
	C	*** 	*** 
	D	*** 	*** 

 

—o0o—

 

    	 		B - 2

    CONTRACT AREA: CITARUM

    

  

EXHIBIT
 “C”

 

THIS
EXHIBIT “C”, THE ACCOUNTING PROCEDURE IS ATTACHED TO AND MADE AS AN INTEGRAL PART OF THE CONTRACT

 

BETWEEN

 

SATUAN
KERJA KHUSUS PELAKSANA KEGIATAN USAHA HULU MINYAK DAN GAS BUMI (SKK MIGAS)

 

AND

 

PT COGEN
NUSANTARA ENERGI

 

AND

 

PT HUTAMA
WIRANUSA ENERGI

 

Dated
the 7th day of June 2018

 

accounting
procedure

 

Article
I

General Provisions

 

		1.1	Definitions

 

The
accounting procedure herein provided for is to be followed and considered as a basis in the performance of either Party’s obligations
under the CONTRACT to which this Exhibit is attached.

 

The
definition and terms appearing in this Exhibit “C” shall have the same meaning as those defined in said CONTRACT.

 

		1.2	Accounts
                                         and Statements

 

CONTRACTOR’s,
as the case may be, accounting records and books will be kept in accordance with generally accepted and recognized accounting
systems, consistent with modern petroleum industry practices and procedures.

 

    	 		C - 1

    CONTRACT AREA: CITARUM

    

 

Article
II

Expenditures
for Petroleum Operation

 

		2.1	Definition

 

	 	2.1.1	Petroleum operation expenditures shall be capital expenditures and non-capital expenditures, in the form of tangible and intangible assets which support Exploration and Exploitation activities, transportation to the point of delivery, plug and abandonment and site restoration Crude Oil and Natural Gas.

 

	 	2.1.2	Operating Costs are expenditures incurred and liabilities arising in carrying out Petroleum Operations which consist of Exploration costs, Exploitation costs and other costs.

 

		2.1.3	For
                                         any Year in which Commercial Production occurs from Working Area, CONTRACTOR shall
                                         be entitled to take into account Operating Costs as a deduction of income in calculating
                                         the CONTRACTOR’s taxable income, which includes:

 

		(a)	current
Year Non Capital Costs;

  

	 	(b)	Amortization of expenditures prior to the initial of Commercial Production;

 

	 	(c)	Amortization of expenditures exclude capitalized tangible asset subsequent to Commercial Production;

  

		(d)	Current
year depreciation of expenditures of capitalized tangible asset subsequent to Commercial
Production.

 

    	 		C - 2

    CONTRACT AREA: CITARUM

    

 

		2.2	Non
Capital Costs

 

Non
Capital Costs means those Operating any Costs incurred that relate to current Year’s operations. In addition to costs relating
only to current year’s operations, as described in Subsections 2.2.3 and 2.2.4 below, will be classified as Non Capital Costs.

 

Non
Capital Costs include, among other things:

 

		2.2.1	Exploration
                                         Expenditures

 

Exploration
and expenditure consist of:

 

		a.	Data Acquisition

 

Labor,
materials and services used in offshore, aerial and land survey, geological, topographical, geophysical, geotechnical and information
technology.

 

		b.	Exploratory
                                         drilling

 

Labor,
materials and services used in drilling of exploratory wells with the objective of finding reserves of oil and/or gas, including
well pads, the access roads, bridges and jetty leading directly to the drilled wells.

 

		2.2.2	Development
                                         drilling

 

Labor,
goods/ materials and services used for drilling and equipping development wells, development-type stratigraphic test wells and
service wells, whether the welllheads directly or indirectly towards production including well pads, access roads, bridges and
jetty to drilled-wells from related fields. Only intangible costs are included herein.

 

    	 		C - 3

    CONTRACT AREA: CITARUM

    

 

		2.2.3	Production
                                         services

 

 Labor,
materials and services used in drilling wells with the objective of penetrating a proven reservoir, including the drilling of
delineation wells as well as redrilling, deepening or recompleting wells, and access roads leading directly to welfrom relevant
Field.

 

		2.2.4	Operations

 

Labor,
materials and services used in day to day oil well operations, oil field production facilities operations, secondary recovery operations,
storage handling transportation and delivery operations, gas well operations, gas field production facilities operations,gas transportation
and delivery operations, gas processing auxiliaries and utilities, and other operating activities, including repairs and maintenance
and marketing incurred in relevant Field.

 

		2.2.5	Office,
services and general administration

 

General
services including technical and related services.material services, transportation, rental of specialized and heavyengineering
equipment, siterentals and other rentals of services and property, personnel expenses, public relations expenses, expenses of community
development programs relating to the community surrounding and/or adjacent to the Contract Area as set out in Sub section 5.2.23
of this CONTRACT and other expenses related to relevant Field.

 

    	 		C - 4

    CONTRACT AREA: CITARUM

    

 

		2.2.6	Training

 

Training
of Indonesian personnel as set forth in Section XII of the CONTRACT.

 

		2.3	Capital
                                         Costs

 

Capital
Costs mean expenditures made for items which normally have a useful life beyond the year incurred. A reasonable annual allowance
for amortization or depreciation of Capital Costs, computed as described in Article III, Sub-sections
3.1 and 3.2 of Exhibit C of this CONTRACT, will be allowed as an Operating Costs for the current Year.

 

Capital
Costs include, among other things:

 

		2.3.1	Development
Wells

  

Tangible
costs used for drilling and equipping development wells, development-type stratigraphic test wells and service wells, whether the
welileads directly or indirectly towards production.

 

		2.3.2	Production
Facilities

 

Offshore
platform (including the costs of labor, fuel, hauling and supplies for both the offsite fabrication and onsite installation of
platforms, and other construction costs in erecting platforms and installing submarine pipelines), wellhead equipment, subsurface
lifting equipment, production tubing, sucker rods, surface pumps, flow lines, gathering equipment, delivery lines and storage
facilities. Costs of oil jetties and anchorages, treating plants and equipment, secondary and tertiary recovery systems, gas plants
and steam systems incurred in relevant Field including certification of offshore and land facilities.

 

    	 		C - 5

    CONTRACT AREA: CITARUM

    

 

		2.3.3	Construction utilities and auxiliaries

 

Work
shops, power and water facilities, warehouses, cargo jetties, and field roads in relevant Field except the access roads mentioned
in Sub sections 2.2.1, 2.2.2 and 2.2.3 above.

 

		2.3.4	Construction housing and welfare

 

Housing,
recreational facilities and other tangible property incidental to construction, related to relevant Field.

 

		2.3.5	Movables

 

		a.	Surface
and subsurface drilling and production equipments,

		b.	Surface
and subsurface drilling and production tools,

		c.	Surface
and subsurface drilling and production instruments,

		d.	Transportation
(including barges, floating crafts, automotive equipments, trains, aircraft),

	 	e.	Construction equipments, furniture and office equipment and miscellaneous equipments.

 

    	 		C - 6

    CONTRACT AREA: CITARUM

    

  

Article
III

Accounting
Methods To Be Used To

Calculate Operating Costs

 

		3.1	Amortization

 

	 	3.1.1	Any capital and non-capital expenditures prior to the initial of Commercial Production, including tangible and intangible assets, should be capitalized and amortized with acceleration by using Unit of Production Method in the beginning of the month of Commercial Production. Accelerated amortization will be conducted using twice of the normal tariff (percentage) of unit of production.

 

		3.1.2	Any
expenditures, exclude tangible assets, having more than 1 (one) year of useful life, subsequent to Commercial Production should
be capitalized and amortized by using Unit of Production Method in the beginning of the month of Commercial Production. In any
circumstances, where the actual accumulative production is less than the expected reserves, the remaining expenditures may be
charges on the last current fiscal year.

 

		3.1.3	Unit
of Production tariff (percentage) is determined by dividing actual yearly production over total expected reserves based on the
approval of First Plan of Development. The expected reserves may be adjusted based on the Plan of Development’s monitoring.

 

In
the event of realization of total production is less than expected which leads to the remaining expenditures to acquire any rights
or expenditures, such remaining expenditures may be charged at once in the current fiscal year.

 

    	 		C - 7

    CONTRACT AREA: CITARUM

    

 

		3.2	Depreciation

 

Capital
Cost occurred in Commercial Production will be depreciated by using declining balance method until individual asset’s useful life
ends.

 

Depreciation
will be calculated in the beginning of the month in which the asset is placed into service with a monthly depreciation according
to the asset’s useful life.

 

Depreciation
calculation of each such Year’s should be based on the individual asset’s capital cost at the beginning of such Year multiplied
by the depreciation factor as follows, for:

 

a.       GROUP
1 = 50%

b.       GROUP
2 = 25%

c.       GROUP
3 = 12.5%

 

For
the Groups of capital assets for any Crude Oil projects and/or Natural Gas projects apply useful lives as follows :

 

GROUP
1 include among other things:

		-	Automobile
                                         applies a useful life of 1.5 years

		-	Trucks-light
                                         (13,000 pounds or less) and tractor units applies a useful life of 2 years

		-	Trucks-heavy
                                         (more than 13,000 pounds) applies a useful life of 3 years

		-	Aircraft applies
                                         a useful life of 3 years

		-	Construction
                                         equipment applies a useful life of 3 years

 

GROUP
2 include among other things:

		-	Buses apply a
                                         useful life of 4.5 Years

		-	Office
                                         and household equipments apply a useful life of 5 Years

		-	Construction
                                         utilities and auxiliaries apply a useful life of 5 Years

 

    	 		C - 8

    CONTRACT AREA: CITARUM

    

 

		-	Production facilities
(including Development Well) apply a useful life of 5 Years

		-	Railroad cars and
locomotives apply a useful life of 7.5 Years

		-	Drilling and production
tools, equipment and instruments apply a useful life of 5 Years

 

GROUP
3 include among other things:

		-	Vessels,
barges, tugs and similar water transportation equipment apply a useful life of 9 Years

		-	Office
buildings, housing and welfare apply a useful life of 10 Years

 

Balance
of remaining Capital Costs is eligible for full depreciation at the end of the individual asset’s useful life.

 

Balance
of remaining Capital Costs at the end of CONTRACT is eligible for full depreciation at the Year of the CONTRACT’s
termination.

 

The
undepreciated balance of assets taken out of service caused by FORCE MAJEURE may be charged directly to Operating Costs.

 

		3.3	Overhead
Allocation

 

General
and administrative costs, other than direct charges, allocable to this operation should be determined by a method of common accounting
procedures that applied each Year consistently.

 

		3.4	Inventory
Accounting

 

The
costs of inventory may be charges as Operating Costs or part of Capital Costs when used.

 

Unused
inventory items may be charges as Operating Costs in the time of abolishment or at the end of CONTRACT.

 

    	 		C - 9

    CONTRACT AREA: CITARUM

    

  

		3.5	Insurance

 

Operating
Costs shall include premiums paid for insurance normally required to be carried for the Petroleum Operations relating to CONTRACTOR’s
 obligations conducted under the CONTRACT.

 

		3.6	Claims

 

Operating
Costs shall also include all expenditures incurred and paid in settlement of any and all losses, claims, damages, judgments, and
other expenses, including fees relating to CONTRACTOR’s obligation under the CONTRACT.

 

		3.7	Abandonment
and Site Restoration

 

Operating
Costs shall include all expenditures incurred in the abandonment of all exploratory wells and the restoration of their drill sites,
together with all estimates of monies required for the funding of any abandonment and site restoration program established in conjunction
with an approved plan of development for a commercial discovery.

 

Expenditures
incurred in the abandonment of exploratory wells and the restoration of their drill sites shall be charged as Operating Costs
in accordance with Article II of this Exhibit “C”

 

The
deposit of the estimates of monies required for the funding of any abandonment and site restoration program established pursuant
to paragraph (e) of Sub-section 5.2.6 of the CONTRACT into an escrow account which constitutes the Abandonment and Restoration
Funds (AARF), shall begin at the Year of first commercial production, and such deposited amount may be charge as Operating Cost
Annually.

 

    	 		C - 10

    CONTRACT AREA: CITARUM

    

 

Such
estimated amount of monies to be deposited into such an escrow account between SKK MIGAS and CONTRACTOR at Indonesian bank in Indonesia
, will be calculated each Year by dividing the total estimated costs of abandonment and site restoration for each discovery less
the estimated salvage value of abandoned facilities by the total estimated number of Years in the economic life of each discovery
and shall be reviewed on an annual basis and such estimates shall be adjusted each Year as required.

 

If,
for any reason, CONTRACTOR is required to abandon any field and restore the related site prior to the expiration or termination
of this CONTRACT, CONTRACTOR may, for the purpose of conducting such abandonment and site restoration, use the funds established
as AARF pursuant to the provisions of Sub-section 5.2.6 (e) hereof.

 

Article
IV

Implementation of Accounting

Procedures

  

The
implementation of Accounting Procedures set forth under this Exhibit “C” shall be stipulated in SKK MIGAS operating
procedures which become an integral part hereof.

 

Article
V

Others

 

In
the case of CONTRACTOR’s income earned from Petroleum Operation, provided in this CONTRACT, after deduction
of Operating Costs, and there still remains losses, the losses shall be compensated by income starting the next consecutive taxable
year up to 10 (ten) years.

  

—o0o—

 

    	 		C - 11

    CONTRACT AREA: CITARUM

    

 

EXHIBIT “D”

 

THIS EXHIBIT “D”,
THE MEMORANDUM OF PARTICIPATION IS ATTACHED TO AND MADE AN INTEGRAL PART OF THE CONTRACT

 

BETWEEN

 

SATUAN KERJA KHUSUS PELAKSANA
KEGIATAN USAHA HULU MINYAK DAN GAS BUMI (SKK MIGAS)

 

AND

 

PT COGEN NUSANTARA ENERGI

 

AND

 

PT
HUTAMA WIRANUSA ENERGI

 

Dated the 7th day of June 2018

 

MEMORANDUM
OF PARTICIPATION

 

The operating agreement between CONTRACTOR and the Indonesian Participant, inter alia, the following
main principles:

 

		1.	CONTRACTOR shall be the sole Operator of the venture under rights and obligations stipulated in CONTRACT.

 

		2.	Authorized
representatives of both parties shall meet periodically for the purpose of conducting the venture’s operations.

 

		3.	Cooperation scheme between CONTRACTOR and LGOC or LGOC Subsidiary shall comply to the applicable laws and regulations.

 

		4.	Commencing
                                         on the transfer of Participating Interest approved, during the term of this CONTRACT,
                                         LGOC, LGOC Subsidiary or SOC is restricted to transfer its shares
                                         and participating interest.

 

		5.	The
                                         Operator shall prepare the annual Work Program and estimated Budgets of Operating Costs
                                         which shall be submitted to the authorized representative of LGOC or LGOC Subsidiary
                                         in accordance with the provisions of the CONTRACT.

 

    	 		D - 1

    CONTRACT AREA: CITARUM

    

 

		6.	If
Natural Gas is encountered in commercial quantities, special provisions shall be drawn up having due regard the condition related
to such Natural Gas, inter alia, to the long term character of Natural Gas supply contracts.

 

—o0o—

 

    	 		D - 2

    CONTRACT AREA: CITARUM

    

 

EXHIBIT
 “E”

 

THIS
EXHIBIT “E”, THE PARTICIPATING INTEREST HOLDER AND OPERATOR IS ATTACHED TO AND MADE AN INTEGRAL PART OF THE CONTRACT

 

BETWEEN

 

SATUAN
KERJA KHUSUS PELAKSANA KEGIATAN USAHA HULU MINYAK DAN GAS BUMI (SKK MIGAS)

 

AND

 

PT
COGEN NUSANTARA ENERGI

 

AND

 

PT
HUTAMA WIRANUSA ENERGI

 

Dated
the 7th day of June 2018

 

PARTICIPATING
INTEREST HOLDER AND OPERATOR

 

		1.	Participating
Interest Holder in the Contract Area on the effective date of this CONTRACT are as follows:

 

PT
COGEN NUSANTARA ENERGI: 85%

 

PT
HUTAMA WIRANUSA ENERGI: 15%

 

Operator
shall be PT Cogen Nusantara Energi.

 

		2.	In
                                         the event of transfer of Participating Interest Holder, the letter of approval on the
                                         transfer of Participating Interest as referred to in Sub-section 5.2.7 and 5.2.8 shall
                                         be attached to and made an integral part of this CONTRACT.

 

		3.	In
                                         the event of change of Operator, the letter of approval on the change of Operator as
                                         referred to in Sub-section 1.1.6 shall
                                         be attached to and made an integral part of this CONTRACT.

 

—o0o— 

 

    	 		E - 1

    CONTRACT AREA: CITARUM

    

 
 EXHIBIT
 “F”

 

THIS
EXHIBIT “F”, THE VARIABLE COMPONENT IS ATTACHED TO AND MADE AN

INTEGRAL PART OF THE CONTRACT

 

BETWEEN

 

SATUAN
KERJA KHUSUS

PELAKSANA KEGIATAN USAHA HULU MINYAK DAN GAS BUMI

 

(SKK
MIGAS)

 

AND

 

PT
COGEN NUSANTARA ENERGI

 

AND

 

PT
HUTAMA WIRANUSA ENERGI

 

Dated
the 7th day of June 2018

 

VARIABLE COMPONENT

	No	Characteristic	Parameter	
        Contractor’s

        share adjustment

        (%)
	Information
	1.	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 
	2.	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 

 

    	 		F - 1

    CONTRACT
                                                                                 AREA: ANDAMAN I

    

 

	3.	*** 	*** 	*** 	*** 
	*** 	*** 
	4.	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 
	5.	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	6.	*** 	*** 	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	7.	*** 	*** 	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	*** 	*** 
	8.	*** 	*** 	*** 	*** 
	*** 	*** 

 

    	 		F - 2

    CONTRACT AREA: ANDAMAN I

    

 

	9.	*** 	*** 	*** 	*** 
	*** 
	*** 	*** 	*** 
	*** 
	*** 	*** 	*** 
	  10.  	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 

 

—o0o—

 

    	 		F - 3

    CONTRACT AREA: CITARUM

    

 

EXHIBIT
 “G”

 

THIS
EXHIBIT “G”, THE PROGRESSIVE COMPONENT IS ATTACHED TO AND MADE AN INTEGRAL PART OF THE CONTRACT

 

BETWEEN

 

SATUAN
KERJA KHUSUS PELAKSANA KEGIATAN USAHA HULU MINYAK DAN GAS BUMI (SKK MIGAS)

 

AND

 

PT
COGEN NUSANTARA ENERGI

 

AND

 

PT
HUTAMA WIRANUSA ENERGI

 

Dated
the 7th day of June 2018

 

PROGRESSIVE
COMPONENT

	No.	Characteristic	Parameter	Contractor’s share

adjustment

(%)	Information
	1.	*** 	*** 	*** 
	2. 	*** 	*** 	*** 	*** 
	*** 	*** 
	*** 	*** 
	3.	*** 	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 
	*** 	*** 	*** 

 

—o0o—

 

    	 		G - 1

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