Common use of General and Administrative Costs and Annual Overhead Charge Clause in Contracts

General and Administrative Costs and Annual Overhead Charge. (a) General and Administrative Costs are all general and administrative costs in respect of the local office or offices including but not limited to supervisory, accounting and employee relations Services, but which are not otherwise recovered. (b) An Annual Overhead Charge for Services rendered outside Guyana and not otherwise charged under this Accounting Procedure for managing the Contractor's activities under the Agreement and for staff advice and assistance including, but not limited to financial, legal, accounting and employee relations Services. For the period from the Effective Date until the date on which the first Petroleum Production Licence under the Agreement is granted by the Minister this annual charge shall be five percent (5%) of the annual Contract Costs, including those covered in sub-section 2.5(a), incurred during the Calendar Year. From the date of grant of the Petroleum Production Licence the Annual Overhead Charge will be: First $ 5,000,000 of annual Contract Costs: 5% Next $ 5,000,000 of annual Contract Costs: 4% Next $5,000,000 of annual Contract Costs: 3% Next $20,000,000 of annual Contract Costs: 2% In excess of $ 35,000,000 of Contract Costs 1% The above amounts are additive. All General and Administrative Costs and Annual Overhead Charge will be allocated to Exploration Costs, Development Costs and Operating Costs in accordance with standard industry accounting practice or on an equitable basis otherwise agreed between the Minister and the Contractor.

General and Administrative Costs and Annual Overhead Charge. (a) General and Administrative Costs are all general and administrative costs in respect of the local office or offices including but not limited to supervisory, accounting and employee relations Services, but which are not otherwise recovered. (b) An Annual Overhead Charge for Services rendered outside Guyana and not otherwise charged under this Accounting Procedure for managing the Contractor's activities under the Agreement and for staff advice and assistance including, but not limited to financial, legal, accounting and employee relations Services. For the period from the Effective Date until the date on which the first Petroleum Production Licence under the Agreement is granted by the Minister this annual charge shall be five percent (5%) of the annual Contract Costs, including those covered in sub-sub- section 2.5(a), incurred during the Calendar Year. From the date of grant of the Petroleum Production Licence the Annual Overhead Charge will be: First $ 5,000,000 of annual Contract Costs: 5% Next $ 5,000,000 of annual Contract Costs: 4% Next $5,000,000 of annual Contract Costs: 3% Next $20,000,000 of annual Contract Costs: 2% In excess of $ 35,000,000 of Contract Costs 1% The above amounts are additive. All General and Administrative Costs and Annual Overhead Charge will be allocated to Exploration Costs, Development Costs and Operating Costs in accordance with standard industry accounting practice or on an equitable basis otherwise agreed between the Minister and the Contractor.