Form of Lease Agreement (Purchase this doc, Text: 08118887270 (Whatsapp))

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LEASE AGREEMENT
No. ______________
This Lease Agreement (hereinafter referred to as the “Agreement”) is made and signed on this
day ___, _____ of ____ 20_,_ (hereinafter referred to as the “Signing Date”), by and between:
1. PT. _________, a limited liability company duly organized and existing under the laws of
Republic of Indonesia, having its address at .................................................., Indonesia
(hereinafter referred to as the “Lessor”); and
2. ___________________, Ltd., a company duly organized and existing under the laws of the
Singapore having its address at .............................................................., Singapore
(hereinafter referred to as the “Lessee
(Hereinafter the Lessor and the Lessee are collectively referred to as the “Parties” or severally as
a “Party”)
WITNESSETH
WHEREAS, the Lessor is the owner of an area of land admeasuring .............. m2
(.............................................. square meters) known as _________ Industrial Estate which is
located at ..........................., Indonesia (hereinafter referred to as “_________ Industrial
Estate”), and which consist of waterfront access, slipway, loadout waterfront access, open yards
for assembly area and the fabrication plants and its facilities, and consist of covered workshops,
material lay down areas, warehouses, office areas and other supporting facility areas (hereinafter
referred to as “Supporting Facilities”);
WHEREAS, the Lessor has desire to lease a piece and parcel of land and building of _________
Industrial Estate admeasuring .............. m2 (...................................... square meters) including its
Supporting Facilities (excluding jetties facilities) and office admeasuring around .......... m2
(.......................... square meters) therein as illustrated in the Appendix A of this Agreement
(hereinafter referred to as the “Land”) to the Lessee and vice versa;
WHEREAS, the Parties desire to set out the rights and obligations of the Parties in this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenant, promises and undertakings set
forth herein, the Parties hereby agree to enter into this Agreement with the terms and conditions
as follows:
Article 1
The Scope of the Agreement
Subject to the terms and conditions of this Agreement, the Lessor hereby agrees to lease the Land
to the Lessee and the Lessee hereby agrees to lease the Land from the Lessor.

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Article 2
Lease Term
2.1 Unless stipulated otherwise herein, this Agreement shall be valid and effective on the
Signing Date of this Agreement, and shall continue in full force and effect for 5 (five)
years, since the Signing Date of this Agreement (hereinafter referred to as the “Lease
Term”).
2.2. The Lease Term may be extended by mutual written agreement between the Parties,
provided that for such purpose the Lessee shall submit to the Lessor the written request to
extend the Lease Term not later than ....... (..............................) calendar days 10 months
before the expiration date of the Lease Term. In the event the Lessor accepts the Lessee’s
written request and agree to extend the Lease Term, the Parties shall discuss and agree on
the new terms and condition of lease agreement, especially regarding the new lease term
and new amount of rent, not later than ......... (...........................) calendar days 9 months
before the expiration date of the Lease Term. In the event the Parties failed to reach an
agreement on the new terms and conditions of the extension of the Lease Term within the
stipulated time, then the Lessor shall be entitled to end the negotiation and to cancel the
extension of the Lease Term, and the Agreement will be automatically expired on the
expiration date of the Lease Term.
Article 3
Rent and Terms of Payment
3.1. The Parties agree that the rent of the Land during the Lease Term shall be as follows;
a. 1st year Rent: US$.......... (in words: ........................................ of America Dollars per
year);
b. 2nd year Rent ~ 5th year Rent: US$ .................. (in words: .................................................
of America Dollars per year)
(Hereinafter the 1st year Rent ~ 5th year yearly Rent are collectively referred to as the
“Rent”).
3.2. The Parties agree that the Rent shall be paid by the Lessee to the Lessor in the following
terms:
a. 1st – 3rd year Rent shall be paid within 5 (five) working days since the Signing Date;
b. 4th ~ 5th 3rd year Rent shall be paid not later than 60 (sixty) days prior commencing 4th
rental year.
3.3. The Rent is excluded Value Added Tax (Pajak Pertambahan Nilai/PPN) applicable from
time to time in accordance with the prevailing tax law, which shall be borne and paid by
the Lessee to the Lessor.
3.4. The Rent and Value Added Tax shall be paid by the Lessee to the Lessor through cheques
or Telegraphic Transfer (T.T.) mechanism into the Lessor’s bank account as follow:

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For the payment of Rent:
Bank :
Branch :
Account No. :
Account Owner :
Swift Code :
Type : US Dollar
For the payment of VAT:
Bank :
Branch :
Account No. :
Account Owner :
Type : Rupiah
3.5. Any delay to the terms of payment of Rent and/or VAT by the Lessee as stipulated in
paragraph 3.2 above shall be subject to penalty in the amount of 1% (one percent) of the
Rent per month each day of delay (hereinafter referred to as the “Penalty”), provided
however, the maximum amount for the Penalty shall be 30% (thirty percent) from the Rent
amount. The Lessor shall retain the right to terminate this Agreement in the event the
payment of the Rent and/or VAT is not conducted by the Lessee until the Penalty has
reached its maximum amount.
3.6. Unless stipulated otherwise herein, any other taxes which arises due to the implementation
of this Agreement shall be borne by each respective Party in accordance to the prevailing
laws.
Article 4
Alteration Work on the Land
4.1. The Lessee shall not plan, conduct and/or execute any and/or all alteration work in the
Land without the prior written approval from the Lessor.
4.2. With prior written approval from the Lessor, the Lessee may at its own cost undertake
alteration works on the Land. When applying for the Lessor’s written approval, the Lessee
must provide the Lessor with requested surveys and reports of the planned alteration
works.
4.3. If alteration works performed by the Lessee require permits from or notifications to
authorities, the Lessee shall be responsible for obtaining the permits and making the
notifications and covering the expenses. The Lessee is also responsible for the notifications
and supervision as well as covering the expenses of the quality of the work and selection of
materials. Before the commencement of the alteration works, the Parties shall agree in
writing on the practical proceedings relating to the works.

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4.4. In the event that the Lessee has undertaken any and/or all alteration works without prior
written approval from the Lessor and/or without necessary permits and/or contradictory to
legislation, regulation and/or permits, the Lessee is at its own cost responsible for restoring
the Land and/or rendering the Land in compliance with the Lessor demand/request and/or
the said legislation, regulation and/or permits without undue delay. Without prejudice to
the Lessee’s obligation to restoring and/or rendering the Land, in the event the Lessee has
undertaken any and/or all alteration works without prior written approval from the Lessor
and/or without necessary permits and/or contradictory to legislation, regulation and/or
permits, the Lessor shall be entitled to terminate this Agreement immediately by written
notice.
4.5. The Lessor is entitled to conduct and contract out ordinary maintenance work in the Land
during the Lease Term. The Lessee is not entitled to reduction of Rent during the
maintenance work. The Lessor is also entitled to conduct repair and alteration works that
cause substantial damage or disorder to the Lessee provided that the Lessee is notified 30
(thirty) calendar days in advance.
Article 5
Maintenance during the Lease Term
5.1. The Lessee accepts the Land there in as it is at the date of this Agreement. The Lessee has
confirmed that the Land is suitable for the Lessee’s intended use and fulfils the norms that
regulate the Lessee’s line of business.
5.2. The Lessee undertakes to take care of the Land in manner that can be expected from
prudent property owner. The Lessor is entitled to inspect the Land any time during the
Lease Term.
5.3. The Lessee’s duty to pay at its own cost and expense for all operations including but not
limited to the electricity charges and water charges, maintenance and repair works of the
Land has been considered when the Parties have agreed on the amount of Rent. The Lessee
is responsible, during the Lease Term, for maintenance, repair and renewal of lights, doors,
door checks etc. The Lessee shall ensure that the Land fulfils the requirements of the
Lessee’s business and the Lessee shall be responsible for the wear and tear caused to the
Land.
Article 6
Functional Disorders
6.1. The Lessee is under an obligation to inform the Lessor of flaws and malfunctions without
further delay.
6.2. Subject to Article 5 of the Agreement, temporary disturbances, interruptions or restrictions
regarding water, sewage, heating and electrical equipment or other comparable
disturbances which are necessary for managing the Land do not entitle the Lessee to
demand reduction of Rent or compensation, unless the interruption or restriction is due to

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the Lessor’s negligence. The Lessor shall not be liable for damage to the Lessee’s business
or assets as a result of such disturbances, interruptions or restrictions or leakage, blockage
of the sewage or any other similar event, unless the damage is due to the Lessor’s
negligence.
Article 7
Insurance
The Parties have agreed that the Lessee shall during the Lease Term, at its cost be responsible for
insuring its business and movables in the possession of the Lessee to a necessary extent for the
potential damages. The Lessee also ensures that the insurance covers damages caused to the third
party if necessary. During the Lease Term, the Lessee shall give the copy of any insurances
documents, together with further explanation, that related with its business and movables in its
possession to the Lessor.
Article 8
Other Matters relating to the Use of Land
8.1. The Lessee is obligated to comply with the Indonesian occupational safety, environmental,
health and cleanliness etc. laws, regulations and norms in force from time to time. The
Lessee has a duty to supervise that its personnel, clients and guests comply with the
aforementioned regulations.
8.2. The Lessee is obligated and responsible for keeping the Land including its Supporting
Facilities (excluding jetties) in good condition. The Lessor is, if necessary, entitled to
repair, at the Lessee’s expense, the Land. Jetty Area (20 meter from the seaside) is not
included in this rental agreement since Jetty area is open for common utilization.
Upon request by Lessee Lessor will give written approval for use of ................. area by
Lessee for a certain temporary period at ................ US dollars per each 24 hours.
8.3. The Lessee is obligated and responsible to comply with the instructions given by rules or
regulations given to preserve order.
8.4. Subject to applicable regulation, the Lessee may attach signs, neon signs etc. after receipt
of prior written approval from the Lessor and/or the authorities (if require).
8.5. The Lessee is obligated and responsible for keeping aforementioned signs etc in good
condition. The Lessor is, if necessary, entitled to repair, at the Lessee’s expense,
aforementioned signs.
8.6. The Lessee is obligated and responsible to borne and paid the electricity costs, telephone
costs and/or any other costs and/or bills related to the Land.
8.7. The Lessee is responsible for any damages etc., which occurs in and/or to the Land, to the
Lessor or any other third party.

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8.8. The Lessee is obligated and responsible, at its own cost and expense, for removing all neon
lights, tapes, signs etc., during the repair work, if necessary, for conducting the repair work.
8.9. The Lessee is responsible that his or his personnel keys are preserved in a diligent manner.
If, however, keys are lost or stolen, the Lessee is liable for all expenses caused by it,
including sequencing of the locks. The Lessee has a duty to inform the Lessor immediately
of a lost key.
8.10. The Lessee is obligated and responsible of carrying out the waste and garbage in the Land
to the area specially preserved for it according to the sorting and disposal instructions
given by the Lessor. The Lessee is liable for the disposal and expenses caused by packing
as well as problem and organic wastes.
8.11. If the Lessee breaches any and/or all of its duties as stipulated in this Article 8, the Lessor
is entitled to terminate this Agreement by giving written notice to the Lessee.
8.12. Lessee shall have the option to import goods to Lessor’s Free Trade Zone Area as the
consignee for incoming shipments, and export it out under Lessor as the shipper of such
goods under free trade zone status.
8.13. Lessee and/or its representative or client to be able to be identified by Lessor Security
through advanced notice of registered names with Entry-Exit Identification card shall have
the right to enter and inspect the Plant and its facilities, to ensure consistency with works
quality standard and compliance with the schedule.
8.14. Lessee may, with prior written consent/approval by Lessor, upgrade, improve the, offices,
plant and its open yards on the Land by building workshop, etc to suit the works brought
by Lessee to the Land. The cost of any upgrading or improvement works at the Land
incurred shall be at Lessee account, unless agreed in writing by Lessor.
Article 9
Transfer of Lease, Re-leasing and Subleasing
9.1. The Lessee shall not transfer its lease of Land to any other third party or otherwise give
away or sublease the Land to another without the Lessor’s prior written approval. This
applies also in a transfer of business. The Lessee will nominate /assign an Indonesian
company as the legal entity, responsible for the operation and activities in Indonesia on
behalf of the lessee. Lessee has the right to charge their customers/potential customers for
fabrication costs, services rendered and rental costs for plant and facilities, etc
9.2. In the event the Lessor has given a permission to transfer the lease, the new lessee is
responsible for the Lessee’s obligations as of the approval of the transfer, unless otherwise
agreed in writing at the moment of approving the transfer. After having received the
Lessor´s permission to re-lease or sublease the Land, the Lessee is, as in the Agreement,
still responsible for the lease obligations to the Lessor.

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Article 10
Termination
10.1 This Agreement shall be expired or terminated only because of the following events:
a. Automatically expired in the event the Lease Term has expired and the Parties do not
reach an agreement to extend the Lease Term; or
b. Terminated by the Lessor pursuant to the Articles 3.5 or 4.4 or 8.11 of this
Agreement, by giving prior written notice to the Lessee; or
c. Terminated by the Lessor at any time, by giving prior written notice to the Lessee, in
the event according to the Lessor’s discretion, the Lessee failed or have reasonable
reason to fail to perform any and/or all obligations as stipulated in this Agreement; or
d. Terminated by the Lessor at any time when the Lessor has a business plan or
necessity to develop the Land for its own purpose, by giving prior written notice to
the Lessee at least 6 (six) monts in advance; or
e. Terminated by either Party by giving not later than 14 (fourteen) calendar days prior
written notice to the other Party, in the event the other Party is dissolved, liquidated,
declared bankrupt, or insolvent or becomes a party to proceedings or arrangements
involving liquidation, receivership, or the settlement of debt(s); or
f. Terminated by mutual agreement between the Parties.
10.2. In the event the Agreement is terminated pursuant to Article 10.1 point b or c above, the
Lessor shall have the right to retain the amount of Rent which has been paid by the Lessee,
or in the event the Rent has not been paid by the Lessee, the Lessee shall be obliged to pay
the amount of Rent, which has not been paid, including the Penalty (if any) in full to the
Lessor.
10.3. In the event the Agreement is terminated pursuant to Article 10.1 point d above, the Lessor
may return the rest of the amount of Rent, which has been received by the Lessor from the
Lessee, for the remaining Lease Term which has not been used by the Lessee.
10.4. In case of the termination of this Agreement by the Lessor, the Lessor shall have the right,
at its election and without prejudice to other rights and remedies as provided by law, to
recover damages from the Lessee.
10.5. Upon expiration or termination of this Agreement and without prejudice to any other
provisions of this Agreement, all further obligations of the Parties under this Agreement
will terminate save for: a) any and all obligations which have not been fulfilled until the
date of the expiration or termination of this Agreement and b) any and all obligations
arising in relation to the liabilities which arising due to the expiration or termination of this
Agreement.
10.6. In case of termination of this Agreement, the Parties hereby agree to waive the provisions
set forth in Article 1266 of the Indonesian Civil Code with regard to the requirement for
court pronouncement, decision or decree for the termination of an agreement.

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Article 11
Day of Removal
11.1. Unless otherwise agreed in writing by the Lessor, the day of removal is not later than 10
(ten) calendar days 3 months since the date the Agreement expires or terminated pursuant
to the provision of this Agreement.
11.2. The Land shall be in a good condition and cleaned up, taking into account normal wear and
tear when the Agreement expires or terminated pursuant to the provision of this
Agreement.
11.3. Unless otherwise agreed in writing by the Lessor, within not later than 10 (ten) calendar
days 3 months since the date the Agreement expires or terminated pursuant to the provision
of this Agreement, the Lessee is obliged to remove at its own cost, all the furniture,
machineries and equipments, neon lights, tapes, signs etc. that the Lessee has at its own
cost purchased or installed in the Land. The Lessee is obliged to patch and clean up at its
own cost the traces that occur due to removal and receive the approval from the Lessor.
11.4. A joint inspection by the Lessor and/or Lessor’s representative and the Lessee shall be
arranged, at the time of removal in which the Parties shall record the condition of the Land.
The inspection shall be arranged as soon as possible when the Land is free from the
Lessee´s use. The Lessee must immediately correct any defects and/or faults found in the
inspection. If not, the Lessor is entitled to carry out the necessary repairs using a third party
contractor at the Lessee’s expense.
Article 12
Governing Law and Dispute Resolution
12.1. This Agreement shall be governed by and construed in accordance with the laws of the
Republic of Indonesia.
12.2. In the event the Parties failed to settle and/or make amicable settlement of any dispute,
controversies, conflicts, claim and/or other matters of whatsoever nature arising out of or in
connection with this Agreement within 30 (thirty) calendar days since the date of the first
formal negotiation meeting is conducted, such dispute, controversies, conflicts, claims
and/or other matters of whatsoever nature shall be finally referred to and resolved by and
submitted to Badan Arbitrase Nasional Indonesia (hereinafter referred to as “BANI”) in
accordance with the BANI Rules which effective at the time of submission and Law No.
30 Year 1999 regarding the Arbitration and Alternative Dispute Resolution, which rules are
deemed to be incorporated by reference to this Article. The arbitration proceedings shall be
conducted before 3 (three) arbitrators which consisting of 1 (one) arbitrator which
appointed by Lessor, 1 (one) arbitrator which appointed by Lessee and 1 (one) of whom,
who will also act as the presiding arbitrator, shall be appointed by the chairman of BANI in
accordance with the rules of BANI. The juridical seat of arbitration and physical place of
hearing shall be at Jakarta, Indonesia, and the language of such arbitration shall be in
English.

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12.3. The decision of the arbitrator is final and binding on the Parties and may be used as a basis
for judgment thereon in any court having competent jurisdiction whether in Indonesia or
elsewhere. No Party may appeal and/or conducting any other legal actions to any court or
other authority in relation to the decision or award of the arbitrator and the Parties waive
any provision of Indonesian law that would otherwise give a Party a right to appeal or
challenge such decision or award.
12.4. Pending submission of a dispute or arbitration under this Article 12 and until publication of
the arbitral award, each Party must continue to perform its obligations under this
Agreement, without prejudice to a final adjustment in accordance with the arbitral award.
12.5. The Parties agree that, for the purposes of enforcing the arbitration award, the arbitration
award will be registered at the office of the Registrar of the District Court of Central
.............. (Kantor Panitera Pengadilan Negeri Jakarta Pusat) without prejudice to the
winning Party's right to enforce any arbitration award in any court having jurisdiction over
the other losing Party and/or its assets.
12.6. For avoidance of doubt the provision of this Article 12 shall survive any expiration or
termination of this Agreement.
Article 13
Notices
13.1. Any notice, request, and other correspondence under and in connection with this
Agreement must be in the English language and be sent by courier or registered air mail or
by facsimile to the following addresses:
To the Lessor:
PT. _________
_________________________
_________________________
_________________________
Indonesia
E-mail:
Telephone:
Facsimile:
Attn.:
To the Lessee:
___________________., Ltd.
________________________
________________________
________________________
E-mail:
Telephone:
Facsimile:
Attn.:
13.2. Notices, requests and other correspondence will be deemed duly received on the 7th
working day after posting if sent by courier or registered airmail or the day of dispatch if
sent by facsimile, or when successfully sent if by email.
13.3. Any Party hereto may at any time change its address by notifying the other Party of the
change in writing.

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Article 14
Miscellaneous
14.1. Without prejudice to any other rights and remedies which the Lessor may has under this
Agreement and/or in law, the Lessee shall indemnify, hold harmless and keep the Lessor
indemnified on a full cost basis (including but without limiting the generality of the
foregoing legal fees on a solicitor-client basis and disbursements) from and against any
claims, demands, suits, actions, proceedings, prosecutions, fines, penalties, damages,
deficiencies, losses, costs, liabilities and expenses which may be made, brought, instituted
or imposed by any party against the Lessor as a result of or in connection with any breach
of any of the representations, warranties, undertakings, covenants and agreements made by
the Lessee hereunder and/or as a result of the entry of Lessee into this Agreement and/or as
a result of any breach of any of the provisions of this Agreement made by the Lessee. For
avoidance of doubt the provision of this Article 14 paragraph 14.1 shall survive any
expiration or termination of this Agreement.
14.2. Any other terms and conditions not specified and/or insufficient in this Agreement shall be
discussed mutually and agreed upon by the Parties at later stage, as the amendment or
addendum to this Agreement. Any amendment, addendum, supplements and/or alteration to
the terms and conditions of the Agreement shall not become binding unless made in written
form, signed by authorized representatives of the Parties and approved by respective
authorities if required.
14.3. If any one or more of the provisions contained in this Agreement becomes or is deemed to
be void, invalid, illegal or unenforceable in any respect under any applicable laws, the
validity, legality and enforceability of the remaining provisions contained in this
Agreement and/or the rest of this Agreement under the aforesaid applicable laws or any
other laws shall not in any way be affected or impaired. The Parties shall, in any such
event, agree on any new provision(s) that would replace such provision(s) in order to affect
the intention of the Parties.
14.4. All costs and expenses in relation to the preparation, modification, revision or any other
matter related to this Agreement shall be paid by the each respective Party.
14.5. Neither Party shall have the right to assign, transfer, or otherwise convey its obligations
hereunder in whole or in part to any individual, firm, corporation, other entity or any other
party without the prior written consent from the other Party. In the event the other Party
accepted such assignment, transfer and/or conveyance, the relevant assignee and/or
transferee (if any) shall be bound by and fulfill the obligations or duties as stipulated in this
Agreement.
14.6. This Agreement together with any documents which executed in connection with this
Agreement constitutes the entire agreement between the Parties, and supersedes all prior
negotiations and/or, representations in connection with or arising out of this Agreement,
whether in writing or verbal.

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14.7. The Parties have executed this Agreement in the English language, which shall serve as the
governing language of the Agreement. If requested by a Party, the Parties will sign a
Bahasa Indonesia version of this Agreement. In the absence of a Bahasa Indonesia
version, the Parties hereby disclaim any benefit from, or any right to cancel or declare this
Agreement as null and void because of, the absence of a Bahasa Indonesia version
pursuant to the Indonesian Law No. .................... In the event of any inconsistency between
the Indonesian and English language versions, to the maximum extent permitted by law,
the English language version shall prevail to the extent of such inconsistency.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their respective duly authorized signatories, in 2 (two) original, as of the date and year first
written-above.
For and on behalf of the Lessor, For and on behalf of the Lessee,
PT. _________ ___________________., Ltd.
_________________________ _________________________
Name: Name:
Title: Title: