1. This performance guarantee is issued by an insurance company to PT.____________ (the Owner) on behalf of ___________ Ltd. (the Contractor) for the construction of a biomass power plant. 2. The insurance company guarantees prompt payment to the Owner up to US$_________ if the Contractor fails to meet its obligations under the construction contract. 3. The performance guarantee is effective until ____________ or upon issuance of an acceptance certificate if completion is delayed, and any demands must be received by that expiration date.

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Performance Guarantee
To : PT. ________________
...............................................
...............................................
...............................................
Issued Date : ...............................................
Re. : Performance Guarantee
Dear Sir,
At the request of ________________ Ltd., a company incorporated and organized under the
Laws of Republic of .........., having its Head Office at ..............................................................
(hereinafter referred to as the: “Contractor”), we (PT. _______________), an insurance
company incorporated and organized under the Laws of the Republic of ..............., having office
at .......................................................... (hereinafter referred to as the: “Insurance Company”)
hereby issue this Performance Guarantee in favor of PT. ________________ (hereinafter
referred to as the : “Owner”) for the due punctual and correct performance of the Contractor’s
obligations under the Contract No.:_____________ for Erection of KTH Biomass Fired Power
Plant between PT. ________________ as Owner and ________________ Ltd. as Contractor
dated ......................... and any addendum of contract that may connected with it (hereinafter
referred to as the: “Contract”) that duly executed and entered into by and between the Owner
and the Contractor, in the following terms:
1. We, the Insurance Company, through this Performance Guarantee undertake and agrees to
make prompt payment to the Owner of any sums, which the Owner may from time to time
claim, not exceeding in the aggregate amount of US$ .............. (say: ..................................
United State Dollar) in connection with the Contract on the Owner’s written demand
therefore and notwithstanding any contestation thereto on the part of the Contract.
2. The undertaking contained in this Performance Guarantee constitutes direct and fundamental
obligations of ours and are unconditional and irrevocable. The Insurance Company agrees
that no extension of time granted to the Contractor or change in terms and conditions of the
Contract which may be agreed between the Owner and the Contractor shall in any way
release the Insurance Company from any liability under this Performance Guarantee and the
Insurance Company hereby waives notice of any such extension of time or change in terms
and conditions of the Contract.
3. Depend on the completion of the plant, this Performance Guarantee shall be effective from

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the issued date and shall be valid until and shall be expires on .............................. or any
extended time until the issuance of Acceptance Certificate for completion of the plant signed
by the Owner if completion of the plant is delayed (hereinafter referred to as the:
“Expiration Date”). Any demand for payment shall be received by us on or before the
Expiration Date of this Performance Guarantee.
4. Owner may, with the prior written consent from the Insurance Company and the Contractor
(such consent not to be unreasonably withheld or delayed by the Insurance Company orthe
Contractor ) assign, charge or transfer this Performance Guarantee. This Performance
Guarantee shall extend to and ensure to the benefit of the successors and assignees of the
Owner.
5. This Performance Guarantee and all claims arising hereunder shall be governed in all respects
by the laws of the Republic of ............... and any disputes in connection herewith shall be
submitted to Badan Arbitrase Nasional ............... (BANI) and shall be held in ..............., in
accordance with the rules of BANI.