Satria Afif Muhammad – 1506730754

Penyusunan Kontrak Dagang

MEMORANDUM OF UNDERSTANDING
Between
FAR EAST MINING CORP., (FAMC)
and
PT. ANDALAS BATUBARA TBK., (AB)

This Memorandum of Understanding (hereinafter referred to as “MoU”) is

made and entered into by and between:
1) FAR EAST MINING CORP. (FAMC), a listed company in New York
and owns subsidiaries in 20 countries in mining business
including gold, nickel, and coal, with head office at 39th Floor 9th
Trump Tower, New York, 19801. Hereby represented by Johnson
Trump, as Executive Director, the counterpart that has the
authority to act with regard to this MoU (hereafter referred as First
Party); and
2) PT. ANDALAS BATUBARA Tbk., (AB) an Indonesian mining listed
company specialized in coal, with head office at 12th floor Plaza
Marein, Jl. Asia Afrika Blok A3, 15616, Jakarta. Hereby
represented by Ahmad Muzakky, as Executive Director, the
counterpart that has authority to act with regard to this MoU
(hereafter referred as Second Party)

FAMC and AB shall be jointly referred to as The Parties.

MoU between FAMC & AB 1

 Satria Afif Muhammad – 1506730754
Penyusunan Kontrak Dagang

1. Objective
The objective of this MOU is to express the willingness of both parties to
identify a framework for cooperation and make a joint venture company
between FAR EAST MINING Corp. (FAMC) and PT. ANDALAS
BATUBARA Tbk., to develop mutually beneficial programs, project, and
mining activities in Indonesia. 


2. General Terms of MOU

2.1 Entirety of Agreement: This MOU, consisting of 4 (four) parts
and 4 (four) pages represent the entire MoU between FAMC and
AB;
2.2 Governing Law: The construction, interpretation and
enforcement of this MOU shall be governed by Indonesia law.
2.3 Duration of MOU: This MOU shall be operational upon signing
and will have an initial duration of 1 (one) year. All activities
conducted before this date within the vision of the joint
collaboration will be deemed to fall under this MOU;
2.4 Coordination: In order to carry out and fulfill the aims of this
MoU, each party will appoint an appropriate person(s) to
represent its organization and to coordinate the implementation
of activities. Parties will meet regularly (preferably with two days
notice) to discuss progress and plan activities;
2.5 Technical and Financial Support: Addendums to this MOU
will be developed for specific technical and financial support
activities. These Addendums will provide a detailed description
of the role, responsibility, and financial contribution of each
party. Work plans and reporting requirements will be clearly
outlined in the Addendums;
2.6 Due Diligence Review: Following the signing of the MOU, the
First Party shall be entitled to conduct due diligence review of
the assets, liabilities, operations and affairs of the Second Party
as it may consider appropriate and the Second Party shall

MoU between FAMC & AB 2

 Satria Afif Muhammad – 1506730754
Penyusunan Kontrak Dagang

provide and procure their company and to provide such

assistance as the First Party and its advisers may require in
connection with such due diligence review;
2.7 Confidentiality: The Parties shall hereby guarantee to keep
all data and information relating to the finance, business,
marketing, legal and other related aspects of this agreement. All
provisions stated in this MoU is considered as confidential and
The Parties will not divulge any information to a third party of
no interest therein for any reason, except for things that have
come into public domain or are required to be divulged by
provisions of the applicable laws;
2.8 Termination of MOU: The partnership covered by this MOU
shall terminate upon completion of the agreed upon period. The
MOU may also be terminated with a written one-month notice
from either side. In the event of non-compliance or breach by
one of the parties of the obligations binding upon it, the other
party may terminate the agreement with immediate effect;
2.9 Extension of Agreement: The MOU may be extended provided
the parties agree upon, and can provide the necessary
resources;
2.10 Communications: All notice, demands and other
communication under this agreement in connection herewith
shall be written in English language and shall be sent to the last
known address, e-mail, or fax of the concerned party. Any notice
shall be effective from the date on which it reaches the other
party;
2.11 Addendum: Any Addendum to this MOU shall be in writing and
signed by both parties.


3. Other Provisions
3.1 The Parties shall immediately inform any event, which could
have a negative influence on or endanger the successful

MoU between FAMC & AB 3

 Satria Afif Muhammad – 1506730754
Penyusunan Kontrak Dagang

accomplishment of the program and activities described in the

MoU;
3.2 First Party shall pay the costs of its staff and any fees
associated with the participation of its staff in the support of
this negotiation activity, unless transportation can be provided
by Second Party;
3.3 Beside the agreed upon technical support and cost share
payment(s) to be stipulated in the Addendums to this MOU,
First Party has no other legal and financial obligations;

4. Signatures
The parties to this MOU through their duly authorized representatives
have executed this MOU on the days and dates set out below, and certify
that they have read, understood, and agreed to the terms and conditions
of this MOU as set forth herein.

The effective date of this MOU is the date of the signature last affixed to
this page.

IN WITNESS WHEREOF, the parties hereto have executed this MOU on

Tuesday, March, 27th 2018.

Jakarta, March, 27th 2018,

FIRST PARTY, SECOND PARTY,

(Mr. Johnson Trump) (Mr. Ahmad Muzakky)

Executive Director of Executive Director of
Far East Mining Corp. PT. Andalas Batubara Tbk.

MoU between FAMC & AB 4