Common use of COSTS NOT DEDUCTIBLE BY THE CONTRACTOR Clause in Contracts

COSTS NOT DEDUCTIBLE BY THE CONTRACTOR. For the purposes of Income Tax, the following Contractor costs will not be deductible: (a) Bonus paid by Contractor for agreement of Contract; (b) Discovery bonuses paid by the Contractor; (c) Production bonuses paid by the Contractor; (d) surface leases paid to the State; (e) any unapproved excess cost that exceeds the limits established by Article 4.4 of the Contract; (f) interest on loans, in accordance with Article 2.7 of this Accounting Procedure; (g) any payment made to the State for breach of the minimum obligations of Exploration work in accordance with the provisions of Article 3 of the Contract; (h) any fine or penalty imposed for infringement of any laws or regulations, including the laws and regulations of Equatorial Guinea; (i) any amounts that exceed the limits established in relation to the depreciation of tangible assets; (j) any donation to the State or other similar expenses unless otherwise agreed; (k) the costs of auditing and State inspection incurred due to failure to keep original documents at the office of the Contractor in Equatorial Guinea; (l) any penalty imposed on the Contractor in accordance with the Law of Hydrocarbons or otherwise; (m) costs related to transfers made by the Contractor to any of its Affiliates or other Persons.

COSTS NOT DEDUCTIBLE BY THE CONTRACTOR. For the purposes of Income Tax, the following Contractor costs will not be deductible: (a) Bonus paid by Contractor for agreement of Contract; (b) Commercial Discovery bonuses bonus paid by the Contractor; (c) Production bonuses paid by the Contractor; (d) surface leases paid to the State; (e) any unapproved excess cost that exceeds the limits established by Article 4.4 of the Contract; (f) interest on loans, in accordance with Article 2.7 of this Accounting Procedure; (g) any payment made to the State for breach of the minimum obligations of Exploration work in accordance with the provisions of Article 3 of the Contract; (h) any fine or penalty imposed for infringement of any laws or regulations, including the laws and regulations of Equatorial Guinea; (i) any amounts that exceed the limits established in relation to the depreciation of tangible assets; (j) any donation to the State or other similar expenses unless otherwise agreed; (k) the costs of auditing and State inspection incurred due to failure to keep original documents at the office of the Contractor in Equatorial Guinea; (l) any penalty imposed on the Contractor in accordance with the Law of Hydrocarbons or otherwise; (m) costs related to transfers made by the Contractor to any of its Affiliates or other Persons.