P-ID0404-14-E rev 00

Angkasa Pura Project Cegelec - PT. Indokomas Buana Perkasa

Prime Mover: Diesel Engine

Proposal Date: 17th April 2014

Proposal number: P-ID0404-14-E rev 00

Tender No: N/A

Cust Job No: N/A

Angkasa Pura Project

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Cegelec - PT. Indokomas Buana Perkasa Kawasan Industri Pulogadung Jalan Rawagelam IV No. 9 Jakarta 13930 - Indonesia

Date : 17th April 2014

Customers Name : Marc Fischer Company : Cegelec - PT. Indokomas Buana Perkasa Subject:

____________________ Soegiarto Surjadinata Director PT. PM Control Systems

Synchronizer for Diesel Engines Dear Sir, PT. PM Control Systems is pleased to submit the proposal for the synchronizer and genset controller of sixty two (62) units diesel engines for Angkasa Pura Project. This proposal focuses on adding new synchronizers and generator controls on brand new engines. The proposal includes control wiring design engineering, commissioning and training. This budgetary proposal outlines and defines all required products/services to meet your requirements as stated in your request. We look forward to the opportunity to discuss this proposal. Should you have any questions or require any additional information, please do not hesitate to contact undersigned. Yours faithfully,


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Defined Terms In this Contract (as hereinafter defined) the following words and expressions shall have the meanings hereby assigned to them: PMCS means the PM Control Systems. Proposal Date means the date of the proposing of the Contract between the Parties. Contract means the agreement between the Purchaser and the Supplier resulting from this Proposal. Scope of Supply means a list of the equipment and services to be supplied/delivered or performed to the

Purchaser as per the Contract. Contract Price or Proposal Price means the price to be paid by the Purchaser to the Supplier under this

Proposal or any resulting Contract for the Parts and Services Delivery means delivering the Equipment as per the stated delivery terms to the location and under the

conditions stated in the Contract. Equipment means the items stated in the Scope of Supply. Enduser or User means the entity that will be the ultimate recipient of the content of this offer/System. Purchaser means entity to which Suppliers proposal is directed and the source of any subsequent

order/contract. Supplier means The Supplier, a corporation organized and existing under the laws of Singapore, issuing this

proposal and providing the System Party means the Purchaser or the Supplier. Parties means the Purchaser and the Supplier. Factory Acceptance Test means simulation testing as stated in the Functional Specification, to be carried out

on the supplied equipment in the Suppliers factory before delivery. Kick-off Meeting means the first meeting held between the Parties after Contract signing. Services means such Services, labor, tools and incidental goods necessary to install the Parts identified herein

and to move, install, assemble, modify, repair, modernize, start-up and/or maintain the Purchasers Equipment, in connection with any of the foregoing

On-Site Commissioning means end-to-end status confirmation with system database and testing of sequencing logic and functionality, with system tuning to be carried out after completion of installation on the unit/units.

Site Acceptance Test means tests carried out to verify that the installed Control System Retrofit/Upgrade works as specified in the agreed Design Terms and Functional Specification.

Calendar Days means the consecutive days including Friday, Saturday, Sundays and legal holidays. Month means calendar month. Week means calendar week Working Days means calendar days with the exclusion of Saturdays, Sundays and legal holidays.


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Table of Contents 1 PM Control Systems and Woodward ..................................................................................................... 5

1.1 PMCS Family ............................................................................................................................... 5 1.2 PMCS Services ............................................................................................................................. 5 1.3 PMCS Experience ......................................................................................................................... 6 1.4 Business relation to Woodward .................................................................................................... 6 1.5 Recognized Turbine Retrofitter ..................................................................................................... 6

2 Technical Description .......................................................................................................................... 7 2.1 Introduction ................................................................................................................................ 7 2.2 EasYgen 3500 Genset Control for Complex Breaker Applications ..................................................... 9 2.3 LS-5 Circuit Breaker Control and Protection ................................................................................... 9 2.4 System Implementation ............................................................................................................... 9

3 Project Execution .............................................................................................................................. 11 3.1 Responsibilities of Parties ........................................................................................................... 11 3.2 Project Management, Engineering and Site Services ..................................................................... 12 3.3 Scope of Supply Variations and additional scope .......................................................................... 14

4 Scope of Supply ................................................................................................................................. 15 4.1 General Terms & Conditions ....................................................................................................... 16

Appendices Appendix A Terms & conditions of sales ........................................................................................... 188 Appendix B Field service / commissioning rates & conditions ............................................................ 233 Appendix C Recommended spares ................................................................................................... 266


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1 PM Control Systems and Woodward PM Control Systems Pte Ltd (PMCS) is a total solution provider for the Power Generation, Transportation, Oil & Gas, Petrochemical and Refinery Industries and offers a wide range of Woodward Power Management solutions, Turbo Machinery control solutions and Gas & Diesel Engine control solutions. Our company has an annual turn over sales of more than US$25M, employs close to 100 people and operates primarily in the Asia Pacific Region, while PT. PM Control System operates in Indonesia region. We retrofit, integrate and support control systems and thereby allow our customer to run their prime movers, generators or compressors at maximum availability and reliability. Our technical, management and financial capabilities coupled with our regional presence ensure long-term support of our customers application.

1.1 PMCS Family

PT. PM Control Systems primary facility is located at North Jakarta. This 300 square meters facility is dedicated to design, engineering, building, testing, installation and commissioning of control systems on a turnkey basis. The staging area is equipped to handle systems integration, production testing and factory acceptance testing of two to three units simultaneously. Complete closed loop simulation testing of the electrical control and the mechanical control components can be accomplished as well.

1.2 PMCS Services Design of Control System Replacements / Retrofits (partial and complete) Turnkey Retrofit Installation Installation Supervision Commissioning/Start-Up 24/7 Call Out Field Service Support on Most Prime Movers Control Systems Control Troubleshooting Assistance Control O&M Training Remote Data Monitoring Sourcing of Control System Spare and Replacement Parts Human Machine Interface Enhancements / Upgrades


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1.3 PMCS Experience The PMCS staff has extensive experience in prime mover control design, installation, commissioning and support, and has demonstrated the ability to design and install control solutions that are both technically and commercially superior to its competitors. PMCS willingness to design control systems with customers operating needs in mind is complimented by PMCSs strong commitment to total customer service. PMCS specialized control team is constantly being enhanced with experienced application engineers, field service engineers and leadership staff. Since its incorporation in 1995 PM Control Systems has retrofitted more than 250 control systems for turbine, engines, compressors and generator systems. It has thereby upgraded turbines from a wide variety of OEMS.

1.4 Business relation to Woodward PM Control Systems is a privately owned company and registered under Singaporean law. PMCS has a strong and long lasting business relationship with Woodward Inc. Woodward Inc. is the largest independent supplier of governor and control systems for a wide variety of turbine and engine manufacturers. Woodward is headquartered in Fort Collins Colorado and has regional offices and production facilities around the globe. Within Asia there are production facilities in China and Japan, and sales/engineering/service offices in South Korea, China and Japan. Woodward strives to have a direct relationship to turbine and engine OEMs and an indirect relationship to End Users. The indirect relationship towards end users is established by the Woodward Channel Partners. These Channel partners can have the form of Central Distributors, Sales Agents, Authorized Independent Service Facilities, Recognized Turbine Retrofitters and Recognized Engine Retrofitters. In all cases the Channel Partners are independent owned companies and there is no corporate ownership relation between Channel Partners and Woodward. However all Channel Partners are authorized and fully supported by Woodwards headquarter and regional offices. PM Control Systems is the exclusive Woodward Central Distributor for the South East Asian and Pacific region for Woodwards engine and turbine systems business divisions. Furthermore is PMCS the main Authorized Independent Service Facility, Recognized Engine Retrofitter and Recognized Turbine Retrofitter in SE Asia and Australia.

1.5 Recognized Turbine Retrofitter In order to support, upgrade and retrofit the aging fleet of old Woodward and non-Woodward products, Woodward has introduced the RTR, Recognized Turbine Retrofitter program. By selecting a handful companies around the globe Woodward ensures that older turbine control systems, either Woodward or non-Woodward, are upgraded with Woodward turbine controls while maintaining a close cooperation and control over the quality of the retrofit process. It is the intention of the RTR program to maintain and guarantee a high level of service, engineering, project management and project execution. RTR partners are only authorized after having successfully completed an extensive audit period. Next to the technical competencies the audit procedure focuses on project management, liability, safety, financial, documentation archiving and support aspects that come with any retrofit project. As part of the RTR program and PMCSs own quality and staffing program, PMCS engineers are frequently send for training, technical seminars and meetings to Woodwards facilities around the globe.


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2 Technical Description

2.1 Introduction Due to PT. Indokomas Buana Perkasa (Cegelec) participation in Angkasa Pura project for Soekarno Hatta airport's expansion, PT. PM Control Systems proposes to supply a Woodward control system to increase the system reliability. This will enhance the start-up operation, troubleshooting and service of the system. It will make it possible to start the engine in Automatic, Semi-automatic and manual operation. With the Support of Woodward Control and Technology, PT. PM Control Systems would like to propose Easygen 3500 as one of Woodward Product that can be used for generator control, synchronization and power management system. We would like to propose LS-5 also for circuit breaker control and protection. There will be three (3) Power Plants which can be explained as following drawings.


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2.2 EasYgen 3500 Genset Control for Complex Breaker Applications The easYgen-3000 Series are control units for genset applications. The numerous inputs and outputs, along with a modular software structure, permit you to use the easYgen-3000 Series for a wide range of applications. This includes stand-by, AMF, peak shaving, import-export, cogeneration or distributed generation, among others. Also the easYgen-3000 Series is compatible for isolated, island parallel, mains parallel and multiple unit mains parallel operations. The easYgen-3000 Series is able to control up to 32 gensets connected in a network with automatic sequencing.

The easYgen-3000 Series is available for simple paralleling as well as for complex paralleling applications. Choose easYgen-3200 should you want to take your fleet of gen-sets parallel to grid or choose easYgen-3500 with LS-5 for multi grid, multi segment applications. These controllers are also available without display, in a rugged metal housing suitable for back panel installation. A remote panel (RP-3000) can be used for visualization/control purpose in this case. FlexAppTM This feature provides the tools to easily configure the number of operated breakers: None, GCB, GCB and MCB, GGB (Generator Group Breaker) and additional modes for Woodward LS-5 device interaction. LogicsManagerTM Woodward's LogicsManager enables changes to the operation sequences and adaption to specific needs. The LogicsManager accomplishes this by monitoring a range of measuring values and internal states, which are combined logically with Boolean operators and programmable timers. This enables to create and/or modify control and relay functions. DynamicsLCDTM The adaptive and interactive 5.7", 320x240 pixel color graphical LC display with soft keys and a clear menu structure ensures intuitive user operation and navigation.

2.3 LS-5 Circuit Breaker Control and Protection The LS-5 Series are synchronizer controllers with integrated protective functions. They are designed to enable complex power management applications with multiple incoming mains and bus breakers in combination with easYgen-3400/3500 equipped genset controllers. The LS-5 devices will manage synchronization, loading and un-loading on each bus segment and send the required voltage and frequency references via CAN bus to the easYgen-3400/3500 genset controllers. LS-5 devices which are located on the incom-ing mains

breakers will automatically detect mains failures and start the correspond-ing gensets accordingly. Wiring efforts are reduced to a minimum, since only one CAN bus connection is required between all LS-5 and easYgen-3400/3500 control-lers. It is not required to wire any AC measurement signals or discrete inputs/outputs between the LS-5 and easYgen-3400/3500 controllers. Extensive remote control capabilities via discrete inputs or interfaces are provided to easily integrate the LS-5 into each application environment. 2.4 System Implementation Close Before Excitation (CBE) or Delayed Excitation Mode. This is an old mode of starting a generator that has found new life with the need to meet a requirement of NFPA 110: restoring Life Safety Power in 10 seconds. When the total load in this category exceeds the capacity of one generator, CBE can be used to start multiple generators in less than 10 seconds. This is the sequence of CBE: 1. A start command is sent to all generators at the same time. Some generator protections are disabled (ANSI

27, 59, 81U, 24, for example) while others 50/51, 32, 81O are left functional.


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2. A short time after the gensets RPM exceeds the crank RPM, the output breaker is closed on all gensets. Note: the excitation is not allowed to automatically start at this time like on standard applications.

3. Once the first genset speed reaches about 70% of rated AND enough generators are running to support the load: any engines still on crank or not up to speed have their breakers opened and they are locked out of

the process until step 7. the excitation is started on all running generators excitation is gradually ramped up, typically 1-2 seconds from zero to rated volts.

4. Gensets that did not start within this time may be brought on-line via standard synchronization practices later.

5. As the excitation increases, the generators will be pulled into synchronization. Tests have shown that the current typically stays below 20% of rated, where a standard synchronization of even 15 degrees out can lead to 80% or more of rated current flow. This also reduces the electrical and mechanical stress on the generator windings, circuit breakers, transformers, couplings, and the engine itself.

6. Once voltage and frequency reach 95-98% of rated values, the generator protection is enabled and the system load breaker is closed and the system is on line.

7. Gensets that did not start in time step 3 may now be added to the power system with the standard synchronization process.

Again, this is not a new process. It can work in some form with Gen-to-utility installations, but it works really well with multiple-gen installations. It is working today at Uof Miami Hospital and other places around the world.


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3 Project Execution This proposal includes control wiring design engineering, supply, commissioning, and training for sixty two (62) units brand new diesel engines. The details of the scope of supply will be discussed in the following section. Identification: Genset controller and power management system Customer: Cegelec - PT. Indokomas Buana Perkasa Project: Angkasa Pura Project Location: Tangerang Indonesia System Type: diesel engine driving generator

3.1 Responsibilities of Parties 3.1.1 Responsibilities of Supplier (PT. PM Control Systems) Planning & Project Management Supplier will plan all engineering, procurement (per scope of supply described in the contract), construction, programming, configuration, testing of the equipment provided.

1. Project Management

Engineering and Design and Service Supplier will provide the following,

2. Detailed engineering of all aspects of control software and hardware and delivery of the same 3. Design & supply of engine control 4. Provision of control wiring drawings 5. Conducting of tests for system I/O and functionality 6. Factory Acceptance Test 7. Commissioning and performing Site Acceptance Test 8. Training

1. 1 copy of control wiring for customer review.

Documentation provided The project documentation will be provided, as below:

2. 1 copy of Factory Acceptance Test (FAT) document for customer review. 3. 1 copy of Site Acceptance Test report for customer review and record. 4. 2 copy of End user Operation & Maintenance manual and 1 CD

Factory Acceptance Test (FAT) Before the system is shipped to the customers site, all control hardware will be tested. All the I/O functions, alarms, shutdown and control functions will be tested internally. During FAT, the purchaser will have to witness the testing at the FAT location after which the FAT documents will be signed. Site Acceptance Test (SAT)


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During the site commissioning, all I/O functions, the control functionality and system reliability tests will be carried out. Purchaser is required to witness and approve the testing. 3.1.2 Responsibilities of Purchaser (Cegelec - PT. Indokomas Buana Perkasa) 1. Provision of a safe working environment on site for PM Control representatives. 2. Provision of all existing drawings, data, and related documentation corresponding to the new system for

detailed engineering. Including: Startup ramp of the current system. (indicating the warm-up idle speeds, hold times and critical

bands) I/O wiring diagram of the current control panels in the operator console I/O wiring diagram of all field wiring between cabinets, operator console and engine

3. Review and make comment to the Suppliers documentation submittals according to the project schedule. 4. Travel costs and other costs for the Purchaser to attend Factory Acceptance Test (FAT). 5. During the commissioning of the control system the end-user shall retain full responsibility over the

operation of the controlled prime mover, its auxiliary systems, its protection systems and plant operation.

3.2 Project Management, Engineering and Site Services 3.2.1 Engineering Site Visit & Project Kick Off Meeting Supplier will conduct an on-site inspection and a kick off meeting with Purchaser for one (1) day. During the kick-off meeting the project schedule will be discussed and the project will be discussed for all technical and project related issues. A site inspection of the current control system will be required. 3.2.2 Documentation review Prior to the commencement of manufacturing and assembly, supplier will provide purchaser with the relevant design drawings. Only after approval and confirmation from purchaser will supplier continue with the above-mentioned activities. Seven (7) working days are included in the project schedule for the documentation review. If more than seven days are required by purchaser for review, supplier holds the right to extend the project schedule and waive any liquidated damages caused by the delay. 3.2.3 Hardware testing Prior to the FAT, supplier will test the complete functionality of the hardware and software. 3.2.4 Factory Acceptance Test Supplier will conduct a Two (2) day factory acceptance test (FAT) of the equipment at Suppliers office located in Sentra Bisnis Artha Gading A7C / 25, Jakarta 14240. In case if the products already installed in customer's site, all expense for the FAT will be billed to customer (can be discussed later). The FAT will include: Demonstrate functional testing of all I/O points. Demonstrate proper operation of all alarm and trip set points. Demonstrate all sequencing logic. Demonstrate start and stop logic. Demonstrate communication between all I/O modules and main control Supplier will test all IO points, alarm and trip settings, sequencing logic through simulation prior to the users arrival. The dynamic control functionality will be tested in a digital simulation environment. A hardware I/O test will test the correct functionality of the hardware.


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The FAT format will consist of a list of itemized tasks to be completed. Supplier performing the FAT will be responsible for the test document. Once each task has been completed with acceptable results, a mark will be placed through the task number. If the task cannot be completed as stated, then discrepancies or changes shall be noted and initialed as part of a formal Punch List. At the completion of the FAT, enduser, if present at the FAT, and the Supplier will sign a form signifying the FAT has been completed and verifying acceptance of the panel, with required modifications noted on the Punch List. Items on the FAT Punch List will be corrected by the Supplier prior to commissioning. These documents will be documented and shall be issued per major item of equipment, even if the enduser or authorized representatives do not witness the simulation tests. Costs associated with carrying out the Factory Acceptance Test will be borne by the Supplier. All costs associated with the users witnessing the Factory Acceptance Tests such as travel, accommodation and living expenses shall be the responsibility of the Purchaser. If the Equipment does not pass the Factory Acceptance Tests then Supplier shall make good any defects and re-test the Equipment, only Equipment that has successfully passed the Factory Acceptance Tests shall be delivered to the Purchaser. If follow-up Factory Acceptance Tests are required as a result of the Equipment failing the first set of Factory Acceptance Tests, then this request shall be submitted to the Purchaser in writing no later than fourteen (14) days after the original Factory Acceptance Test failure. The Purchaser will evaluate this request and a decision on whether to allow a follow-up Factory Acceptance Test will be made. If a follow-up Factory Acceptance Test is allowed, then all associated follow-up Factory Acceptance Test costs will be carried by the Supplier. 3.2.5 Shipping After the FAT, supplier will create the hardware and inform purchaser that the hardware is ready for deliver to purchasers site according shipment terms. 3.2.6 On-Site Commissioning On-site installation will be provided by supplier. Supplier will be responsible for the removal of the old controller, installation of the new control and the wiring termination of the wiring into the new control system. After installation both PM Control and purchasers engineers will perform point-to-point wire checks. After point-to-point wire checks PM Control will commission the engine control system with local assistance of purchaser. At the final stage of commissioning PM Control and purchaser will sign of the Site Acceptance Document. The total time from installation to system handover for each engine is expected to take approximately 5 days. 3.2.7 System handover After the signing of the Site Acceptance Test by both parties the control system shall be handed over to the purchaser and purchaser may start production operation. If the number of days for onsite services such as installation/commissioning is exceeded due to Purchaser delays, additional charges will be borne by the Purchaser. If the number of days is exceeded due to PM control delays no additional charges will apply. 3.2.8 Training The Supplier shall provide relevant training to the end-user on-site. The on-site training shall immediately follow after the system handover. Participation will be allowed for up to 10 persons. Engineering, maintenance and Operation training will include the following topics:


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Introduction to control logic Introduction to control hardware Introduction to software tools Investigation of alarms Differences between old system and new system Engine operation (start/stop, setting of load, etc) Hands-on training to resolve system disturbances

3.3 Scope of Supply Variations and additional scope Any variation to the confirmed Scope of Supply from the Purchaser in Part 4 will be regarded as a Variation Order. Supplier will only implement the variation order with an agreed written variation order from Purchaser. Written variation order without final agreement from Purchaser will be deemed as invalid.


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4 Scope of Supply

Items No Description Price 1 Hardware

Sixty Two (62) units easYgen 3500 Sixteen (16) units LS-5 One (1) unit communication device - DPC USB Sixty Two (62) sets of Canbus coupler and 2 RTD input module

(sensor not included)

343,250.34 USD

2 Spare for Hardware One (1) unit easYgen 3500 One (1) unit LS-5 One (1) unit communication device - DPC USB One (1) set of Canbus coupler and 2 RTD input module

(sensor not included)

6,577.82 USD

3 Service Scope (Engineering, Commissioning and Training) Control Wiring Design Engineering Thirty (30) days for IO checking and commissioning 62 units Easygen-

3500 and 16 units LS-5 (installation by Purchaser) To provide one (1) trainer to conduct one (2) days on-site training in a

sustainable time after commissioning is done. Any costs arising out of delays in installation/commissioning caused by Purchaser will be billed to Purchaser based on PTPM Field Service Rate as stated in Appendix B.

40,650.00 USD

4 Equipment Delivery Time Date of order to shipment date from Suppliers premise (without partial shipment) Easygen 3500 LS-5 DPC USB Canbus coupler and 2 RTD input module

To be advised later 8 - 10 weeks ARO 5 - 7 weeks ARO To be advised later

5 Payment Schedule 30 Days net upon invoice: Acceptance of Work Scope (Down Payment) Successful FAT & Shipment continuously Successful commissioning Note: Payment Schedule defined here will supersede the progress payment schedule as stated in Appendix.

20% 70% 10%

6 Warranty From date of completion of Installation & Commissioning From date of receipt of shipment on site.

12 months 18 months


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4.1 General Terms & Conditions Scope of Supply: The scope of supply is limited to the items listed herein and as described in the

proposal. No assumption should be made for products or services not expressly stated in the proposal.

Duties & Tariffs: All import duties, tariffs, and associated import fees to Jakarta are responsible by the

supplier. Above price didnt include 10% VAT. If customer required shipping to Germany, France or USA, the import duties, tariffs, and associated import fees for hardwares will be re-calculated.

Proposal Validity: 6 months from date of proposal issue. General Terms: Liabilities shall be limited to PM Control Systems standard warranties stated at

Appendix A, Terms & Condition of Sales.


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Appendix to P-ID0404-14-E

Table of Contents Appendix A Terms & conditions of sales ........................................................................................... 188 Appendix B Field service / commissioning rates & conditions ............................................................ 233 Appendix C Recommended spares ................................................................................................... 266


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Appendix A Terms & conditions of sales A-1 PT. PM Control Systems These terms and conditions of sale of Products by PT. PM Control Systems together with any special conditions of sale set forth in the its proposal, shall be the only terms and conditions applicable to the sale of Products by PT. PM Control Systems. These terms and conditions shall be exclusive and in lieu of all terms and conditions appearing on the face or reverse side of any purchase order or other documents submitted by the Purchaser, except as may be otherwise agreed in writing between the parties in the manner specified herein. The identification of Products, price, quantity, delivery dates and shipping instructions shall be as set forth in PT. PM Control Systems proposal, or Purchasers purchase order which has been accepted by PT. PM Control Systems. As used herein, the term Product(s) means all equipment, materials, supplies, components and any services, or other work which PT. PM Control Systems has agreed to supply.

A-2 Invoicing and Payment Terms All Invoices shall be paid by Purchaser base on Progress Payment Schedule for all System Orders unless specified otherwise in PT. PM Control Systems proposal. Contract for Product Shipment with Site Services. 20% initial payment upon order confirmation 70% against shipping advice 10% after acceptance of signing the Site Acceptance Tests Report If Purchaser fails to fulfill any condition of the terms of payment, PT. PM Control Systems may (1) suspend the Product, or (2) continue the Product if PT. PM Control Systems deems it reasonable to do so. In any event, the costs incurred by PT. PM Control Systems as a result of Purchasers non-fulfillment shall be paid by Purchaser upon submission of PT. PM Control Systems invoices therefore. If such non-fulfillment is not rectified by Purchaser promptly upon notice thereof, PT. PM Control Systems may cancel or suspend the Product and Purchaser shall pay PT. PM Control Systems its reasonable and proper charges for cancellation upon submission of PT. PM Control Systems invoices therefore. If the final condition or payment practices of Purchaser at any time does not, in PT. PM Control Systems reasonable judgment, justify continuance or performance on the terms of payment agreed, or upon commencement of any bankruptcy or reorganization proceedings or potential insolvency of Purchaser, PT. PM Control Systems may require full or partial payment in advance or shall be entitled to cancel any Product then outstanding and shall receive reimbursement for its reasonable and proper cancellation charges including charges for work already performed.

A-3 Tax PT. PM Control Systems agrees to pay any tax or assessment upon its charges covered by this Agreement based on or measured by income, imposed or levied by any government having jurisdiction over said operations. Provided, however, all prices are exclusive of any excise, sales or use taxes, or taxes of a similar nature, which may lawfully be imposed on the furnishing of equipment and services, and the amount of such taxes for which PT. PM Control Systems may be legally liable shall be added to the payment required to be made by Purchaser, subject to Purchasers right to verify that the taxes are in fact duly paid. Provided further, Purchaser shall not be obligated to reimburse PT. PM Control Systems for any taxes, duties, or other charges imposed upon either the household goods or personal effects of PT. PM Control Systems personnel. If required by the laws of any country having legal jurisdiction over the work site, Purchaser shall have the right to withhold income tax from payments made by Purchaser to PT. PM Control Systems to the extent of the


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withholding rate specified by the laws of the government of the country having legal jurisdiction over the work site and any amount so withheld shall be credited against any payment otherwise owing to PT. PM Control Systems by virtue of the terms of this Agreement as long as Purchaser provides to PT. PM Control Systems all tax receipts in respect to amounts withheld. Alternatively the amount withholds for income tax purposes can be waived as long as PT. PM Control Systems provides the original Certificate of Resident to Purchaser.

A-4 Title, Risk of Loss, Delivery Title to Products shall transfer from PT. PM Control Systems to Purchaser when Products are made

available for shipment at PT. PM Control Systems plant. Title to site services shall pass to Purchaser upon performance.

Deliver Products at PT. PM Control Systems premises. Transportation costs and risk of loss shall transfer from PT. PM Control Systems to Purchaser, Ex-works PT. PM Control Systems plant.

The cost of freight is to be borne by Purchaser. Partial shipments are allowed.

A-5 Patents PT. PM Control Systems agrees, upon receipt of written request from Purchaser, to hold Purchaser safe and harmless from any damages assessed against Purchaser by any court of final jurisdiction in respect of suits for patent infringement filed against Purchaser and to undertake the defense of such suits, wherein the alleged patent infringement is based upon material, equipment and tools furnished and used and processes chosen by PT. PM Control Systems under this Contract; provided that Purchaser shall give PT. PM Control Systems: (1) prompt written notice of the commencement or threat of commencement of such suit, (2) all cooperation necessary in connection with any such suit, and (3) the right to control the defense of, and any negotiations for settlement of, such suit as well as any appeals and any ancillary litigation deemed necessary by PT. PM Control Systems.

A-6 Warranty PT. PM Control Systems warrants only title to the products, supplies and materials, and that the same are free from defects in workmanship and materials for a period of one (1) year from the date of completion of installation or eighteen (18) months from shipment whichever shall first occur. PT. PM Control Systems also warrants that it shall comply with all safety, health, and plant regulations of Purchaser while on Purchasers premises. PT. PM Control Systems liability and Purchasers exclusive remedy in any cause of action whether in contract, tort, breach of warranty or otherwise) arising out of the sale or use of any products, supplies or materials is expressly limited to the replacement of such products, supplies or materials on their return to PT. PM Control Systems or, at PT. PM Control Systems option, to the allowance to Purchaser of credit for the cost of such items. This warranty is subject to the following conditions: (a)The item was properly installed by qualified personnel;(b)The item was operated and maintained in accordance with applicable manufacturers guidelines and standards, overhaul manuals, service bulletins and Purchaser handbooks;(c)The item has been used under normal operating conditions, has not been subjected to misuse, neglect or accident and has not subsequently been repaired or altered, except by PT. PM Control Systems;(d) Where the item is to be stored for any period prior to installation, acceptance by PT. PM Control Systems of any Warranty claims, are conditional upon the item being stored in accordance with the Manufacturers recommended storage procedures and conditions laid down in the Maintenance Instructions prepared by the Manufacturer; and,(e) Any Warranty claim made shall be made in writing and delivered to PT. PM Control Systems within thirty (30) days after the defect or failure is discovered.(f )Warranty claims shall only be considered by PT. PM Control Systems in respect of defects that become apparent and are notified by the Purchaser in writing to PT. PM Control Systems before the expiry of the warranty date. It is expressly agreed that there are no warranties of


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any kind, expressed, implied, statutory or otherwise, as to merchantability, fitness for particular purpose or for any other matter relating to the Products or Site Services performed hereunder, except those warranties set out above and in no event shall PT. PM Control Systems be responsible for any incidental or consequential damages incurred by Purchaser in respect of any defect or failure covered by the warranty set out above. The within warranty is made in lieu of all other warranties and may not be altered or amended without the express written approval of both parties.

A-7 Code and Law Only the Purchaser or PT. PM Control Systems specifications which form a part of the contract or purchase order and those codes and standards which PT. PM Control Systems considers applicable to the contract or purchase order shall apply.

A-8 Force Majeure Under the terms of this contract, Force Majeure shall mean acts of God, strikes, lockouts, other industrial disturbances, acts of the public enemy, laws and regulations, wars or war-like action (whether actual, impending or expected and whether de jure or de facto), arrests or other restraints of governments (civil or military), blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, civil disturbances, explosions, breakage or accident to equipment or machinery, confiscation or seizure by any government or public authority, unclear reaction or radiation, radioactive contamination, and any other causes, whether of the kind herein enumerated or otherwise, that are not reasonably within the control of the party claiming a suspension and that the exercise of due diligence such party shall not have been able to avoid or overcome. Except as specifically provided otherwise in this contract, if either party is rendered unable, wholly or in material part, by reason of Force Majeure to carry out any of its obligations hereunder, other than obligations to pay money, then on such partys giving notice and reasonably full particulars of such Force Majeure in writing to the other party within ten (10) days after the occurrence of the cause relied on, such obligation of the party giving such notice, so far as it is effected by such Force Majeure, shall be suspended during the continuation of any inability so caused and such cause shall, as far as practicable, be remedied with all reasonable dispatch.

A-9 Changes The Purchaser may order changes to the Products or scope of work in writing and where such changes results in a change in price or time of completion, PT. PM Control Systems shall advise Purchaser of the change in price or time of completion. PT. PM Control Systems shall not proceed with any change until there is agreement upon the equitable adjustment to price and time of completion and written change order/notice is received.

A-10 Suspensions In the event Purchaser temporarily suspends the performance of any site work on the contract or purchase order, Purchaser shall specify which part of the site work shall be suspended, the effective date of the suspension, the expected date of resumption and the mobilization and support functions which are to be maintained during the suspension period. PT. PM Control Systems shall advise Purchaser of any price change necessitated by the suspension and site work shall only be suspended upon acceptance of Purchaser of the equitable price adjustment.

A-11 Confidentiality


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Parties shall consider all information designated by label, stamp or other communication as CONFIDENTIAL or PROPRIETARY that is produced, prepared, or furnished by the other Party as CONFIDENTIAL OR PROPRIETARY and the Parties shall not disclose any such information to any other person, or use such information for itself for any purpose other than the performing of this Agreement unless the receiving Party obtains written permission in advance from the disclosing Party. The confidential obligation assumed by the Parties herein shall not apply to any information in which the receiving Party can show by reasonable proof: (a) to have been in the public domain at the time of the receipt by PT. PM Control Systems; or (b) to have become generally known to the public through no fault of the receiving Party following its receipt; or (c) to have been known by the receiving Party prior to its receipt; or (d) to have been disclosed to the receiving Party by a third Party on a non-confidential basis, who has no legal duty to the disclosing Party to maintain the information in confidence; or (e) is approved in writing by a Party for disclosure by the other Party to a third party; or (f) is required to be disclosed by order of a court or other governmental agency, but only after reasonable notice to the disclosing Party. Confidential or proprietary information shall not be reproduced by the receiving Party without the written consent of the sending Party.

A-12 Inspection Purchaser may inspect the system and hardware at any reasonable time at PT. PM Control Systems plant and PT. PM Control Systems shall give Purchaser reasonable notice as to the time when the system is ready for inspection. PT. PM Control Systems shall not be responsible for any expenses associated with the inspection. Progress of work shall not be delayed by any Purchaser inspection. Access to plants of subcontractors or other suppliers shall be at their discretion. A Factory Acceptance Test (FAT) is included only if so referenced in PT. PM Control Systems proposal.

A-13 Arbitration PT. PM Control Systems and Purchaser agree that in the event of a dispute and prior to initiating arbitration proceedings, the parties will each designate one (1) senior officer to negotiate a resolution to the dispute. If the officers are unable to agree upon a resolution within thirty (30) days, or any agreed upon extension, then the parties agree to submit the dispute to the Arbitration for final and binding resolution. Any claims, disputes or controversies arising out of this Agreement between the parties hereto which cannot be settled by mutual agreement shall, upon written notice by one party to the other, be finally settled by arbitration in accordance to the laws of Singapore. All arbitration hearings shall be held in Singapore. The party desiring arbitration shall notify the other party in writing of the matter to be arbitrated and the name of the arbitrator selected by it. Within ten (10) days after receipt of such notice, the other party shall appoint an arbitrator and shall forthwith notify the first party of such appointment. The two arbitrators named shall within ten (10) days appoint, in writing, a third arbitrator. Pending a decision by the majority of the arbitration panel, both parties agree to take no action which might upset the status quo or prejudice the respective positions of the parties with respect to the matter in controversy. A decision by the majority of the arbitration panel with respect to the matter in controversy shall be final and binding on the parties, and judgment on any award so rendered may be entered in any court having jurisdiction.

A-14 Limitation of Liability The total liability of PT. PM Control Systems for any and all claims whether in contract, strict liability, tort (including negligence), indemnity, warranty or any other type of action shall not exceed the contract price. In no event shall PT. PM Control Systems be liable to the Purchaser for any special, incidental, indirect, punitive, or consequential damage whatsoever whether in contract, strict liability, tort (including negligence) including, but not limited to, a loss of use, loss of sales, loss of revenue, loss of profits, loss of product, loss of


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contracts, economic loss, or claims from Purchasers, resulting from PT. PM Control Systems performance or non-performance of its obligations under the contract or purchase order.

A-15 Hazardous Materials Purchaser shall identify hazardous materials and conditions that may be encountered by PT. PM Control Systems personnel while at Purchaser site. Such identification shall include any MSDS sheets. Absent timely notification, PT. PM Control Systems shall be relieved from performance of this contract to the extent of any handling or other encounter of conditions. It shall be Purchasers responsibility for the handling or disposal of any hazardous materials or waste and Purchaser shall indemnify PT. PM Control Systems for any damages, losses, claims, judgments, demands, causes of action and expenses arising from hazardous materials existing at site or brought to site by Purchaser or other parties. Purchaser shall be liable for any and all damage to the environment no matter how caused. Purchaser shall indemnify PT. PM Control Systems for any and all liability arising from any type of pollution, contamination or clean-up costs, irrespective of negligence on any party to the contract.

A-16 Miscellaneous Clauses If any provision of this Agreement shall be held to be invalid, void, or of no effect for any reason, such holding shall not be deemed to affect the validity of the remaining provisions of this Agreement which can be given effect, without the invalid provision, and to this end, the provisions of this Agreement are declared to be severable. This Agreement is the entire Agreement between the parties and merges and supersedes all prior understandings, representations, warranties and agreements in respect of the subject matter contained herein. This Agreement cannot be changed or terminated orally. No provisions of this Agreement shall be changed or modified in any way [including this provision] either in whole or in part except by an instrument in writing made after the date of this Agreement signed on behalf of both parties and which is expressly stated to amend this Agreement. Purchaser shall ensure that PT. PM Control Systems Field Service Engineers will have access to a suitable and safe work environment. Both parties shall maintain in force adequate insurance to cover any relevant statutory requirements and their obligations under this Agreement. Neither party may assign this Agreement without the prior written consent of the other party. Said consent may not be unreasonably withheld. Purchaser may cancel the Contract (this Agreement) or purchase order whereupon PT. PM Control Systems obligation to continue performance shall immediately cease and Purchaser shall pay to PT. PM Control Systems cancellation fee fifty (50) percent of the total contract price upon receiving invoice from PT. PM Control Systems.


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Appendix B Field service / commissioning rates & conditions Definition of Field Service

B-1 Normal Hourly Rate

: The Service/Commissioning Engineer will travel to job sites specified by the customer to provide technical advice and field commissioning on works related to Woodward controls installed in the prime movers.

These rates apply to any portion of a standard eight and a half-hour (0800 hrs 1730 hrs) workday from Monday to Friday for each day the Service/Commissioning Engineer is away from a PM Control Systems office. Domestic and International rates will apply for local & overseas field services respectively. If the Service/Commissioning Engineer is on call or works on Saturday and Sunday then overtime and double time will be charged respectively. The straight time rates for domestic and international are:

Domestic Service/Commissioning Engineer US$55.00/hour

B-2 Domestic & International Minimum On-Site Charge Domestic minimum on-site charge 4 hours International minimum on-site charge 8 hours

Overtime and double time will apply for Saturday and Sunday.

B-3 Overtime These rates apply (in addition to the normal hourly rate) to work time rounded up to the next half hour for hours worked in excess of eight hours any day of the week, Monday to Friday for each day and hours worked in excess of on Saturday. The overtime rates are: Monday Friday: 1731hrs 2359 hrs Saturday: All hours


B-4 Double Time These rates apply (in addition to the normal hourly rate) to work time rounded up to the next half hour for hours worked after midnight any day of the week, (Monday to Saturday) and all hours on Sunday. The work week is based on the Indonesias calendar, therefore weekdays are Monday through Friday and weekends are Saturday and Sunday. The double rates are: Monday Saturday: 2359hrs 0759hrs Sunday: All hours


B-5 Holiday Work Rate


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These rates apply for any part of a PM Control Systems recognized holiday. Holidays observed by PM Control Systems are the statutory Indonesian Public Holidays.


B-6 Isolated Location These rates apply if the Service/Commissioning Engineer is required to remain overnight at an isolated camp location, high risks countries or riding crew or platform at sea. Idle days during a job will be billed at the rates listed below. A 12-hour per day minimum will be charged for each day at an isolated camp location, high risks countries or riding crew or platform at sea. The 12 hours are to be consecutive work hours. Paragraphs 3 & 4 Overtime and double time hours work rates still apply to hours worked in excess of normal working hours on Saturday, all hours worked on Sunday and Singapores declared holidays.

Domestic Service/Commissioning Engineer US$880.00

B-7 Standby At Customer Site (Standby at isolated locations covered by paragraph 6) These rates apply if the Service/Commissioning Engineer is required to remain at the customer location (at hotel) on a standby status for eight hours (therefore making the engineer unavailable for other jobs), awaiting the customers request to have the engineer return to the customer site. An 8-hour per day minimum will be charged for each day.

Domestic Service/Commissioning Engineer US$550.00

B-8 Travel Time/Transportation Expense Time required for travel to and from PM Control office or to and from Service/Commissioning Engineers home to the job site is charged at the rates listed below for each travel day: International Service/Commissioning Engineer US$44.00/hour Airline tickets will be billed at cost plus 10%. PM Control reserves the right to purchase business or first class air travel for international and emergency trips. All necessary travel expenses, car rental, gas and shipping costs for support equipment to and from the job site will be billed at cost plus 10%.


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B-9 Daily Living Expense PM Control charges at cost plus 10% handling and administrative fees unless fully furnished by customer. The living expenses include breakfast, lunch, dinner, lodging, telephone calls related to job and laundry.

B-10 Additional Expenses Visas, official entry/exit documentation, work permits, etc. billed at cost plus 10%.

B-11 Terms of Payment 14 days upon receipt of invoice


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Appendix C Recommended spares The following system spare parts are recommended: One (1) Easygen 3500 One (1) LS-5 One (1) connection device - DPC USB One (1) set of Canbus coupler and 2 RTD input module (sensor not included)

PM Control Systems and WoodwardPMCS FamilyPMCS ServicesPMCS ExperienceBusiness relation to WoodwardRecognized Turbine Retrofitter

Technical DescriptionIntroductionEasYgen 3500 Genset Control for Complex Breaker ApplicationsLS-5 Circuit Breaker Control and ProtectionSystem Implementation

Project ExecutionResponsibilities of PartiesResponsibilities of Supplier (PT. PM Control Systems)Responsibilities of Purchaser (Cegelec - PT. Indokomas Buana Perkasa)

Project Management, Engineering and Site ServicesEngineering Site Visit & Project Kick Off MeetingDocumentation reviewHardware testingFactory Acceptance TestShippingOn-Site CommissioningSystem handoverTraining

Scope of Supply Variations and additional scope

Scope of SupplyGeneral Terms & Conditions

P-ID0404-14-E rev 00

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