Common use of MODUS OPERANDI Clause in Contracts

MODUS OPERANDI. 1. The Company is incorporated under the laws of the Republic of Indonesia and domiciled in Indonesia, and shall be subject to the laws and the jurisdiction of courts in Indonesia which normally have jurisdiction over corporations doing business or incorporated therein. The Company shall maintain in Jakarta a principal office for receipt of any notification or other official or legal communication. 2. The Company contemplates a program for the Enterprise, divided into five periods: i) the "General Survey Period"; ii) the "Exploration Period"; iii) the "Feasibility Studies Period"; iv) the "Construction Period"; and v) the "Operating Period";, as such terms are defined in this Agreement. It is understood that different parts of the Contract Area may be treated as separate projects which become subject to different provisions of this Agreement at different times because of the different periods of activities applicable to the individual Exploration and Mining Areas. 3. The Company may contract for necessary technical, management and administrative services, provided that it shall not be released from any of its obligations hereunder. In the event that such services are contracted from Affiliates, such services shall be obtained only at a charge not more than a non-affiliated party with equivalent qualifications to perform such services would charge for provision of such services to equivalent standards. All such charges should be fair and reasonable and accounted for in accordance with generally accepted accounting principles consistently applied. The Company shall produce on request by the Department evidence verifying all such charges. 4. The Company undertakes to conduct all activities hereunder in the manner and subject to the conditions of Article 2 of this Agreement and to continue such activities, during the General Survey, Exploration, Feasibility Study and Construction Periods of this Agreement without suspension or interruption of all of the Company's activities, subject to Article 19 and Article 22, during the term of this Agreement, provided that such activities may be interrupted or suspended with the concurrence of the Department. Any such suspension or interruption of all of the Company's activities with the concurrence of the Department shall extend the time periods otherwise applicable with respect to any of the affected Periods specified in this Agreement. If such interruption or suspension of all of the Company's activities continues for more than 365 days and is due to reasons other than force majeure as provided in Article 19 and the Department has not concurred regarding such interruption or suspension, then the Government shall be entitled to declare a default under Article 20. The Company agrees to keep the Department informed of any interruption or suspension. Any such interruption or suspension shall not affect the mutual rights and obligations of the Parties hereto under this Agreement.

MODUS OPERANDI. 1. The Company is incorporated under the laws of the Republic of Indonesia and domiciled in Indonesia, and shall be subject to the laws and the jurisdiction of courts in Indonesia which normally have jurisdiction over corporations doing business or incorporated therein. The Company shall maintain in Jakarta a principal office for receipt of any notification or other official or legal communication. 2. The As part of the Enterprise, the Company will continue its activities with respect to the Contract Area Block A and contemplates a program for with respect to the Enterprise, divided into five periods: i) Contract Area Block B commencing with a General Survey of the Contract Area Block B during a "General Survey Period"; ii) " as a result of which certain Exploration Areas will be selected for Exploration during the period or stage hereinafter referred to as the "Exploration Period"; iii) . The remaining program with respect to each Exploration Area will be divided into three additional periods or stages hereinafter referred to as the "Feasibility Studies Period"; iv) , the "Construction Period"; " and v) the "Operating Period";, as respectively, with respect to such terms Exploration Area. These Periods are further defined in this Agreementthe following Articles hereof. The Contract Area Block A is in its Operating Period and, therefore, the foregoing provisions with respect to other periods or stages are not applicable to it. It is understood that that, as a consequence of the foregoing, different parts of the Contract Area may be treated as separate projects which become subject to different provisions of this Agreement and of the Mining Laws and Regulation at different times because of the different periods of activities applicable to the individual Exploration and Mining Areas. 3. The Company may contract for necessary technical, management and administrative services, provided that it shall not be released from any of its obligations hereunder. In the event that such services are contracted from Affiliates, such services shall be obtained only at a charge not more than a non-affiliated party with equivalent qualifications to perform such services would charge for provision of such services to equivalent standards. All such charges should be fair and reasonable and accounted for in accordance with generally accepted accounting principles consistently applied. The Company shall produce on request by the Department evidence verifying all such charges. 4. The Company undertakes to conduct all activities hereunder in the manner and subject to the conditions of Article 2 of this Agreement and to continue such activities, during the General Survey, Exploration, Feasibility Study and Construction Periods of this Agreement without suspension or interruption of all of the Company's activities, subject to Article 19 and Article 22, during the term of this Agreement, provided that such activities may be interrupted or suspended unless with the concurrence of the DepartmentGovernment (which shall be deemed to have been given if the Department does not object thereto in writing within three months after it has received written notice from the Company of its desire to so suspend or interrupt) or as otherwise provided in Article 19 or Article 22. Any such suspension or interruption of all of the Company's activities with the concurrence of the Department Government shall extend the time periods otherwise applicable with respect to any of the affected Periods specified in this Agreement. If such interruption or suspension of all of the Company's activities continues for more than 365 days and is due to reasons other than force majeure as provided in Article 19 and the Department Government has not concurred regarding such interruption or and suspension, then the Government shall be entitled to declare a default under Article 20. The Company agrees to keep the Department Government informed of any interruption or suspension. Any such interruption or suspension shall not affect the mutual rights and obligations of the Parties hereto under this Agreement.