Common use of CONTRACTOR’S NON-DEDUCTIBLE COSTS Clause in Contracts

CONTRACTOR’S NON-DEDUCTIBLE COSTS. For Income Tax purposes, the following costs of the Contractor shall be non- deductible: (a) signature bonus paid by the Contractor; (b) any Discovery bonus paid by the Contractor; (c) any Production bonus paid by the Contractor; (d) annual surface rentals paid to the State; (e) any unapproved over-expenditures that exceed the limits of Article 4.4 of the Contract; (f) interest on loans as provided in Article 2.7 of this Accounting Procedure; (g) any payment made to the State for failure to fulfill the minimum Exploration work obligations pursuant to Article 3 of the Contract; (h) any fines and sanctions incurred for infringing the laws and regulations of Equatorial Guinea; (i) sums that exceed the set limits with regard to the depreciation of tangible assets; (j) any donation to the State and other similar expenses unless otherwise agreed; (k) the State's audit and inspection expenses incurred by the absence of original documents in the office of the Contractor in Equatorial Guinea; (l) any sanction imposed on the Contractor under the Hydrocarbons Law or otherwise; and (m) costs relating to the assignment from the Contractor to any of its Affiliates or other Persons.

CONTRACTOR’S NON-DEDUCTIBLE COSTS. For Income Tax purposes, the following costs of the Contractor shall be non- non-deductible: (a) signature bonus paid by the Contractor; (b) any Discovery bonus paid by the Contractor; (c) any Production bonus paid by the Contractor; (d) annual surface rentals paid to the State; (e) any unapproved over-expenditures that exceed the limits of Article 4.4 ‎4.4 of the Contract; (f) interest on loans as provided in Article 2.7 ‎2.7 of this Accounting Procedure; (g) any payment made to the State for failure to fulfill the minimum Exploration work obligations pursuant to Article 3 ‎3 of the Contract; (h) any fines and sanctions incurred for infringing the laws and regulations of Equatorial Guinea; (i) sums that exceed the set limits with regard to the depreciation of tangible assets; (j) any donation to the State and other similar expenses unless otherwise agreed; (k) the State's ’s audit and inspection expenses incurred by the absence of original documents in the office of the Contractor in Equatorial Guinea; (l) any sanction imposed on the Contractor under the Hydrocarbons Law or otherwise; and (m) costs relating to the assignment from the Contractor to any of its Affiliates or other Persons.

CONTRACTOR’S NON-DEDUCTIBLE COSTS. For Income Tax purposes, the following costs of the Contractor shall be non- non-deductible: (a) signature bonus paid by the Contractor; (b) any Discovery bonus paid by the Contractor; (c) any Production bonus paid by the Contractor; (d) annual surface rentals paid to the State; (e) any unapproved over-expenditures that exceed the limits of Article 4.4 ‎4.4 of the Contract; (f) interest on loans as provided in Article 2.7 ‎2.7 of this Accounting Procedure; (g) any payment made to the State for failure to fulfill the minimum Exploration work obligations pursuant to Article ‎Article 3 of the Contract; (h) any fines and sanctions incurred for infringing the laws and regulations of Equatorial Guinea; (i) sums that exceed the set limits with regard to the depreciation of tangible assets; (j) any donation to the State and other similar expenses unless otherwise agreed; (k) the State's ’s audit and inspection expenses incurred by the absence of original documents in the office of the Contractor in Equatorial Guinea; (l) any sanction imposed on the Contractor under the Hydrocarbons Law or otherwise; and (m) costs relating to the assignment from the Contractor to any of its Affiliates or other Persons.