Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833003291.pdf (Sierra Leone)
THIS MEMORANDUM OF UNDERSTAND,NG is mode the aoy ot t)eQte-Q 2on el I Behreen (r) And t1\ Ihe Governmenl of lhe Republic of Sierro leone (GOSI) octing by eoch of the Minislries of Agriculture, Foreslry ond Food Security, Finonce ond Economic Developmenl, ond Trode ond lndustry; SOCF,N AGRTCULruRAL COMPANY (S.L) Lrlt{rIED Liobility Compony.

estoblished ond Regislered under the lows of Sierro Leone wilh compony certificote of lncorporotion number C.I.
626/2010 ond with ils regislered oftice Hurley Beoch Rood, Freelown Sieno Leone hereofler colled S.A.C.

Recllols A B C SAC proposes to set up lorge scole oil polm plontotions, ond on oil exiroclion mill, in lhe Sohn Molen Chiefdom in the Pujehun Dislricl.
Bum Chiefdom in lhe Bonthe Dislrict, Bogbo ond Lugbu Chiefdoms in Bo lhe Districl, Soulhern Province {hereinofter refened to os "the projecl oreos" ) Thol lhese inveslmenl projects musi be regislered wilh oll relevont GoSL Ministries, Deporlments ond Agencies, whose business is lo encouroge, ottroct, coordinole, ond ocluolize prMote seclor inveslments in ihe ogriculture sector in Sieno Leone.
SAC inlends lo dislribule the bulk of ils future polm oil production lo lhe locol Sieno Leone morkel until such iime thol locol mo*elers con no longer obsorlc the produced quontities of morket conditions ll is intended by SAC lhol lhe {irsi phose of the project is implemented over o 5 yeors period 20'l I to 2016 Culiivoted plontotion size: 12,000 heclores Oil mill copocity: 30 lons of FFB/hr, exlended io 60 tons by 2018 Esiimoted new invesiment: I I I million US Dollln (2Ol I -2O19) Eslimoled lobour ond controclors, lorce:2,414 bV 2C2O E SAC will seek lo improve lhe livelinood of the locol populolion by MOl.l belween the GoSl cnd S.AC t I i \P,, 2121 prc,viCing lronsport,Jlion for the movenlent or fruil, buil{ing ond irnprcving sociol infrostructure, employing ond/or controcling slotf r-r nd troining its woriiforce: .1iAC hcts elecled to sel up its projecl i;r Sierr-o Lecrne becouse of its fovoroble climotic condilions, the opporlunity io improve 'the efficierrcy of produciion, locol onrl regionol r,lorkel demond, ond GOSL's commirifienl !o improve ll.e inveslmr:nl climole, lhe trock record of the SAC's shoreholcjers ond direclors ond their experience of doing business in Wesi Africc ond in lhe polm oil sector worldwjde; SAC hos firolizeci the technicol ond environmenlol studies which contirm tl-.e fr:osibility of lhe pi'oject fro rl lhe perspective of soil quolity, climr:te ond environmenlol :oirdilions, ond lronsport logislics.
SAC hcs neif,clioted lond leose ogreements covering lhe project oreo willr GoSL, the Chiefclom Councils ond lqndowners of lhe Chief,Jr.rms of Molen, Bogbo, Lugbu ond Bum ond will conlinue to do sc.

wilh the helr.
; of ihe GoSL in order lo secure sufficienl concjession oreos foi ils developmenl plon; This rvlemorondum of Underslonding ond Agreement sholl be r'3n.rW€d ofter every five (5) yeors in line with the lond leose ogrreements F G H l And wher eos, J K L ii is the policy objeclive of GoSL to oiirocl lorge-scole foreign investmenls to 1:re Agriculiurol secior of Sieno Leone; GOSI seerks to i)romote the exponsion of locol ogriculturol production for the locol ond expori morkels; GOSI s,,:eks lo increose lhe esloblished pro,Juction copocity of polm cil os lo olleviote its dependency on imported producls ond bocst ils exporls; GOSt welconres lr:bour-inlersive industnes which provide stoble income ond 1roining lo its workforce; N. GOSL promotes the esloblishrnent of sustoinoble economic centers in nrrol oreos; Consldedng: GOSI.
hr:s ogreed lhe proieci meets the policy obieclives of GoSL P, GOSt recogrrlzes the expecled benefits of the proiect in lerms of MOU ber\reen lhe GoS'.

ond S rC 3t2\ \ ,t * o R S T U job creolion, educolion.

sloble income, ond infroslructure, os well os the positive indirect effects of o lorge economic cenler in Bo, Bonlhe ond Pujehun Dislricts.
GOSI wonls io improve lhe livelihood of on impoverished rurol populolion which still suffers from lhe consequences of the civil wor ond recognizes thol lhe project will contribute lo lhis; GOSL recognizes lhe projeci will be bosed on (i) the comprehensive business plon otloched to ihis Memorondum, ond (ii) ihe Environmenlol ond Sociol lmpqct Assessment (ESIA) report bosed on the forlhcoming GoSL Environmentol ond Sociol Performonce Slo ndords f or Agribusiness lnveslmenls ottoched lo the Memorondum; GOSI recognizes lhe benefils of oddilionol ogricullurol production ond processing copocity; GOSI.
recognizes the conlribution the projeci is intended to moke lo ihe ogricullurol ond olher economic sectors in Sieno Leone ond lhol it will indireclly help otiroci oiher foreign inveslments inlo the ogriculiurol ond olher economic seciors, GOSI recogn2es o reodiness lo gronl investmenl incentives in lhe form ot lox holidoys ond exemplion of dulies lo SAC in conneclion with the project.

This will be bosed on lhe relevont provisions in the Acls, Lows, regulotions ond policies of the GoSL GOSI.
ond SAC hove ogreed 1o enter into lhe Memorondum of Understonding ond Agreement, which is iniended lo hove legol effecl; It ls ogieed os follows: I 2 ln regording ihe project os o pioneerond priority invesimenl in ihe ogriculturol seclor in Sieno Leone ond ioking into occount ils inveslment promoiion policy; GoSL supporls SAC's developmenl of the project by; (i) (ii) ond in view of thol stolus, lo supporl ihe project by hereby recognhing the requirement of SAC lo secure sufficienl funding (copilol ond loons) ogreeing lo lhe moin incentives, exemptions ond rights os sel oul in ihe Appendix below, SAC in considerotion of lhe representolion ond ogreemenls in this Memorondum ogrees, to implemenl ihe project occording 10 ils business olon ond lo meel oll projecl-reloted copitol expendilures MOU beiween lhe GoSt ond SAC .t-t { Yl- L--- / ffi a I lnstitution Fiscal Regime Legal Provisions Provisions in Agreement Comment SOCFIII 15, i.::rr,,ral Company (5.1.)
Ltd Personal income Tax on Expatriates Charges on lmports Expatriates exempt from personal income tax as set out in National lnvestment Incentive leSislation for agricultural businesses The relevant legislation is the lTA, 2000 as the National lnvestment lncentive legislation did not become law.
Expatriates able to import personal and household effeds (including one vehicle perfamily)free of all taxes and all custom duties (other than any prevailing ECOWAS tax which is currently set at 0.5% ofthe value ofthe applicable goods).

No legal basis for importing personal and household effeds free of custom duty or impon GST National lnvestment lncentive legislation was aSreed by cabinet but did not pass through parliament, and therefore did not become law.
Second schedule ofthe lTA, 2000 as amended states that the rate of tax on employment income of non-residents is 25% The ECOWAS Common ExternalTariff, referenced in the amended Customs Tariff Ad 1978, is set at 5% for'goods of primary necessity, raw materials and specific inputs'; 10% for 'intermediate goods'; and 20% for'final goods'.

some deviations from this exist, but none are relevant for personal and household effects.
Section 14 (3) of GST Act, 2009 states: 'The rate of GST applicable to a taxable supply or import is (a) if the supply or import is zero-rated under the First Schedule, zero per cent; (b) in any other case, 15 per cent' The ECOWAS Common ExternalTariff, referenced in the amended Customs Tariff Act 1978, is set at 5% for'goods of primary necessity, raw materials and specific inputs'; 10% for 'intermediate goods'; and 20% for 'final goods'.
Section 12 ofThe Finance Act, 2011 amends the rate for raw materials to 3%.
Sedion 14 (3) of GST Act, 2009 states: 'The rate ofGST applicable to a taxable supply or import is (a) ifthe supply or import is zero-rated under the First khedule, zero per cent; (b) in any other case, 15 per centr Second Schedule (section 13) states: Machinery, apparatus and appliances designed for use exclusively in (a) Agriculture, veterinary, fishing and horticulture, (b) Manufadurin& and (c) Mining and classified as exempt under the Harmonized System Commodity Classification Code are exempt from GST' Section ll ofThe Finance Act,2011 states:'Any person importing plant, machinery or equipment for any business purpose, excluding resale, shall be entitled to import them duty-free for any period offive years chosen by that person'.
The import of any agricultural inputs shall not be subject to any tax or duty The liability of the input for custom duty and import GST will differ depending on the type of product it is, but no input should be completely exempt.

The import of all plants, machineries, vehicles and equipment which are not agricultural inputs are eligible for duty- free from between 2011-2018 The agreement allows the import ofthese items for a period that is longer than that set out in legislation.
Vehicles are also not duty free by the provision in law.

WithholdingTax on Dividends Section 118 of the lTA, 2000 as amended states that the rate ofwithholding tax payable on dividends to residents/non- residents shall be 10% ofthe gross amount Withholdingtax of 10%to be paid on only 50% of any dividend until 2021.

From 2022, all dividends shall be subject to a withholding tax of 10%.

There is no legal basis for this.

lnconsistent with the law.


Payments of rent not subject to any withholding tax There is no legal basis for this for this excemption.l nconsistent with the law.

Withholdingtax of 5% to be paid on interest There is no legal basis for this reduced rate.

lnconsistent with the law.

lnstitutional relief of GST on supplies until 2015 inlcu.
or any such period thereafter, when production is scheduled to start With the exception of those supplies listed in the Second Schedule ofthe GST Ad,2009, there is no legal basis for this.

lnconsistent with the law.
Withholding Tax on Rents withholding Tax on lnterest GST Section 120 ofthe lTA, 2000 as amended statesthat the rate ofwithholding tax payable on rents to residents shall be 10% and to non-residents 25% Sedion 119 ofthe lTA, 2000 as amended states that the rate of withholding tax payable on interest to residents/non- residents shall be 15% Section 14 (3) of GST Act, 2009 states: 'The rate of GST applicable to a taxable supply or import is (a) ifthe supply or import is zero-rated under the First Schedule, zero per cent; (bl in any other case, 15 per centr Second Schedule (section 13) states: Machinery, apparatus and appliances designed for use exclusively in {a) Agriculture, veterinary, fishing and horticulture, (b) Manufacturing, and (c) Mining and classified as exempt under the Harmonized System Commodity Classification Code are exempt from GST' lncome Tax Sedion 5 ofthe lTA, 2000 as amended states that the rate of income tax applicable to resident companies for the year of assessment shall be 30% 100% exemption for corporate tax on income received or accrued prior to 31 December 2022; a 50% exemption for 2023 and 25% exemption on the result of 2024.
There is no legal basis for this.

lnconsistent with the law.

3.

4 5 6.

7 8 onlicipoted in thol business plon on o best etfort bosis, including but not limiled lo the cleqronce, eorth moving, rood construction ond improvemenl, plonling of oil polms.
instollotion of o processing plonl ond o n ursery inigotion network ond sTstem, foclory instollotion ond fil-out ond reloled civil works, residentiol ond sociol inf roslructure, worehouses ond workshops; SAC ogrees to permil lendering by locol suppliers of relevont oncillory services, such os tronsporlolion, inpul supplies, worehousing, engineering ond shipping, from iime to iime on such ierms ond condilions os SAC sholl reosonoble specify.
GOSI ogrees thot SAC's whole business is recognized os on Agriculturol enterprise ond thol SAC will be gron benefil on oll o ricullurol in uls o ci t foreslry or bio-energy seclon ddu wotver lives ol leost eq ulvo en other business o eroiing in the ogncu ure, n lnsofor os SAC considers it necessory, GoSL ogrees this Memorondum will be given further effecl to or be implemenled in furlher deloil by GoSL enlering inlo such furlher ogreemeni ond toking such f urther oclion os SAC moy reosonobly request.
Those shoreholders, their offilioles ond olhen refened to in the Appendix os hoving lhe benefit of o right, entitlemenl, discrelion or benefil of on obligotion by GoSL, sholl hove direcl benefil of such right, entillemenl or, os lhe cose moy be, discreiion ond lo enforce such obligotion under lhis Memorondum.

This Memorondum is govemed ond sholl be conslrued in occordonce wilh lhe lows of lhe Republic of Sieno Leone ond is intended lo be binding on lhe porlies.
This Clouse opplies lo ony cloim, dispute or difference of ony kind belween lhe porties orising oul of or in connection wilh ihis memorondum (o "Dispute").

Thol includes withoul limitotion, ony queslion oboul lhe Memorondum's existence, volidity or ierminotion.

(i) (ii) All Dispules sholl be refened lo ond finolly resolved by orbilrolion in London before three orbitrolors under lhe Rules of Arbilrotion of lhe lnlernolionol Chomber of Commerce from time lo lime in force.
This Clouse incorporoles lhose Rules excepl where lhey conflicl wifi ils express lerms.

Eoch porty sholl nominole on orlcitrotor in the Requesi for Arbitrotion, or onswer, os the cose moy be not loler thon l4 doys ofler service of o wrillen requesl by eiiher porty to do so.

The porlies musl then seek to ogree on ond nominote o lhird orlcilrotor to oct os Choirmon within 14 doys ofler MOU belv./een ihe GoSL ond SAC A I J fl' L-'' si2\ confirmotion of the second orlcilrotor's oppoinlment.
Foiling ogreement between lhe porlies, lhe two odcilrolon olreody oppointed musl wiihin l4 doys nominole the third orlcilrolor.

lf ony of the porlies foil lo nominole on orbitrolor or lhe two orbitrotors olreody oppoinled foil to nominote the Choirmon, the oppoinlments sholl be mode by the ICC Court or Arbilrolion.

The proceedings sholl be conducted in lhe English longuoge.
All documents submilted in the orlcilrolion sholl be in the English longuoge, or if onolher longuoge, be occomponied by o certified English lronslolion.

None of lhe porties moy oppeol to ony coud on o queslion of low orising oul of on oword mode in lhe orbilrotion.

The porlies inevocobly woive ony rights of oppeol they might otherwise hove hod.
{iii) (iv) (v) The oword sholl be finol ond binding on the porties or onyone cloiming lhrough or under lhem ond judgment rendered on the oword moy be entered in ony court hoving .iurisdiclion or opplicotion moy be mode lo such courl for judiciol occeplonce of the oword ond on order of enforcemenl os the cose moy be.
(vi) GOSI inevocobly ond uncondilionolly: s I (o) ocknowledges thoi the execulion, performonce ond delivery by eoch porty of this Memorondum sholl constilute lered inlo le commerciol ironsoclion n ils commerciol copocity; {b) (c) ogrees thot should ony olher porty bring legol proceedings ogoinsl it or its ossels in relolion lo lhis Memorondum, no immunity from such legol proceedings (which sholl be deemed to include withoul limiioiion, suil, ollochmenl prior to judgment, oiher otlochmenl, the obioining of judgment, execution or olher enforcemenl) sholl be cloimed by or on beholf of ilself olher lhon in respecl of governmenl buildings locoted in Sierro Leone or buildings forming port of o diplomotic or consulor mision (excepl lo ihe extent necessory lo effecl service of legol process), ond consenis generolly in respect of ony such proceedings io lhe giving of ony relief or lhe issues of ony process in connection wilh such proceedings including the moking enforcemenl or execulion ogoinsi ony property wholsoever (inespective of iis MOU between ihe GoSL ond SAC '---_l \ J €- '_/ ,:_-,' 6t2" frl (d) {e) (0 use or inlended use) of ony order or judgmenl which moy be mode or given in such proceedings.
ogrees lo help lhe projecl in oll woys on o besl effort bosis to hove occess to long term developmenl funding SAC ogrees to provide electricily ond necessory grid conneclion lo the projecl if ovoiloble presenily or in future ogrees to confer oll benefils including but nol limited io gronting of duty woivers ond other inveslmenl incentives os deloiled in ihe required lows, reguloiions ond policies enocted ond/or opproved by GoSL wilhin o porticulor iimefrome which will not couse undue deloys to implementing lhe projects lnvestor's Obllgotions l. 3.
4 5 The investor sholl develop o Corporote Sociol Responsibility (CSR) plon bosed on on ossessmenl of communily needs in colloborotion wilh locol govemment officiols, Poromount Chiefs, Representolives of lond owning fomilies, ond the communilies ihemselves; The inveslor sholi provide feosible limefromes for implemenlotion of its ogreed upon CSR responsibililies which will be ogreed upon by oll stokeholders; The investor sholl su bmii quorterly progress reports on iis obligolions bosed on o pre-delermined moniloring plon; GoSL represenlotives (including bul nol limiled to lhe Minislry of Agriculture, Foreslry ond Food Security) will conduct periodicol moniloring visils; lnveslor sholl develop o smollholder or oulgrower scheme os per the Guidonce of GoSL.
The oim of the scheme sholl be io ochieve food self sufficiency ond uliimolely security.

Activities lo be developed will include bul nol limited lo providing bosic ogriculturol inpuls, lroining, morkel occess, etc.

in line with the Smollholder Commerciolizo'tion Progromme (SCP) ond the Food Securily f logship progromme of GoSL lnveslor sholl develop o colleclion mechonism to collect the ogricullurol products of the smollholder.
The inveslor sholl hove exclusive right io collecl the row moteriol {Fresh Fruit Bunches in cose of crude polm oil extroction mill) from the smoll holden.

The price for such row moieriol sholl be morkel deiermined.

MOU between the GoSL ond SAC F \--i- - I t \*.

I ffi 6. lnvestor sholl olso develop o) b) c) d) Former's Troining schools in the chiefdoms where iis Proiect hos leosed/ocquired londs.
Such lroining schools sholl focus on lhe crops cultivoted by the inveslor ond oiher cosh crops with porticulor emphosis on rice ond olher food crops Ihe inveslor sholl olso exclusively develop oreos to showcose odvonced forming of one or two crops, muluolly ogreed with lhe GoSL.
The investor sholl develop model forms io showcose ond troin people in the most oppropriole inigotion techniques for the lond type ot its Project locolion The investor underlokes lo colloborole wilh the Minisiry of Agricullure, Foreslry ond Food Securily (MAFFS) on the Smollholder Commerciolizotion Progromme to closely work wilh smollholdeR/oulgrowec in lhe projecl qreos lnvestor sholl develop comp siles complete wiih housing for its sloff ond omenilies.
Such omenities such os hospilols, schools, drinking woler ond droinoges sholl be open for the locol populolion.

ln the business plon of eoch Project, on omount should be eormorked for ihese purposes.

Employmenl opportunilies: The investor should provide the governmenl with o deioiled Humon e hirin of Sieno Resource plon which includes eonEC stoff of oll mo nogemenl, middle codre ond .iunior levels ldirect employment).
lncluded in lhis Humon Resource plon should be informolion on internship or opprenticeshlp opportunities ond o deloiled lroining ond succession plons.
lnveslor inevocobly ond unconditionolly ogrees thot it sholl not be entitled to; ond sholl nol loke ony oction to enforce o judgmenl or orlcitrol oword ogoinst ony bonk occount held by GoSL {including of ony of ils diplomotic or consulor missions) wilhin o period of 45 doys from lhe dote of such judgment or,oword or such longer period gronled to GoSL in lhe judgmenl or oword to meel the some.

7 8.

9 10.
7 8.

9 10.

Complionce with Locol Content Policy: I l. Consisient with the policy objeclives ond slrolegic fromework of MOU belween lhe GoSL ond SAC C) I {/ 8l2l 9/ ihe Locol Conlenl Policy, lhe lnvesior is obliged to omong oihen: Promole the ulilizolion of locolly ovoiloble Sieno Leoneon goods in ihe industriol ond monufocluring seclors.

Focilitoie the development of indigenous service providers by promoting linkoges wiih more odvonced ond experienced domeslic ond foreign firms.
Support the growth of smoll ond medium enterprises through torgeted procuremenl.

Promote employmeni of Sieno Leoneons.
Develop the humon ond insliiutionol copocity of Sieno Leoneons through lroining ond lronsfer of knowledge ond technology 12 Complionce wilh Environmenlol ond Sociol Pertormonce slondords for ogribusiness inveslments (forthcoming pollcy); The lnvestor sholl odhere to the Environmentol Proteclion Agency Acl (os omended) 2008, ond oiher environmentol regulotions developed by GoSL ond in line with Internolionol best prociices The lnveslor sholl develop environmentol mqnogement plon to oddress offoresioiion issues, woler monogemenl, eic MOU belween lhe GoSL ond SAC q t): Appendlx Government suppod of lhe Proiecl 2.
Permils 3.

Fudher permils Revocolion of permils 5.

Breoch of Permits GOSL supports the project ond ogrees lo provide such ossistonce ond enler inlo such ogreemenls to ensure the successful implemenlotion of the projecl ond ils funding os SAC, ils shoreholders or ihe Funden moy reosonobly require from lime io lime.
GOSI confirms ihol SAC will be gronted oll the required permits ond olher ouihorizotions in conneclion with the proiect ond ils funding provided thol SAC complies wilh oll published requiremenls of lhe lows of lhe Republic of Sieno Leone in relolion to such permits or oulhorizolions, the detoils of which ore generolly ovoiloble to ihe public in Sieno Leone.
GOSI underlokes thot, should SAC (or ony other person toking port or porticipoting in lhe Projecl or its funding), of ony lime, be required 1o obioin ony further permit or olher outhorizoiion in conneclion wilh ilself , its oclivities or the projecl (or ony porl of the projecl) or ils funding, it sholl toke oll necesory sleps lo ensure such permil or oiher outhorizotion is issued forthwith provided thot SAC or, os lhe cose moy be, such olher person complies with oll published requiremenls of lhe lows of the Republic of Sieno Leone in relolion to such permils or outhorizolions, the detoils of which ore generolly ovoiloble to the public in Sieno Leone.
GOSI ogrees thot ony permil or other outhorizotion will only be concelled, lerminoted or revoked, or omended or chonged, in occordonce with ils lerms ond conditions only {which include lhe lows ond published regulolions, lhe deloils of which ore generolly ovoiloble to lhe public in Sierro Leone, pursr.ront to which it wos issued).
lf SAC or olher person to whom it wos issued foils to obide by ony terms ony permils or outhorizoiion, GoSL (or ony relevonl officiol or public oulhority) moy exercise ony power pu!

'suonl 1o ihe lows of lhe Republic of Sieno Leone in respect of such foilure.
lrlowever, GoSL ogrees il will nol (ond will procure ihot no officiol or public oulhority will) exercise ony such power unless SAC ond such other person (s) it sholl specify for lhis purpose hove firsl been given longer of two weeks' ond ony minimum sloluiory period of notice (lhe Notice) of such foilure ond given the opportuniiy, ond foiled wilhin o reosonoble period of lime ofler receipl of such nolice, MOLi belween lhe GoSL ond SAC q-' {-/ .f 1A/2\ 6 Environmenlol ond sociol Assessmenl 7.
Expolriotes to rectity, remedy or cure such foilure unless, in ihe opinion of GoSL octing reosonobly, lhere is o significonl risk to life or the environment.

lf there is o significont risk lo life or lhe environment, GoSL sholl be entilled lo suspend lhe relevont permii or oulhorizolion for the minimum period ot lime which could be onticipoled os being reosonobly necessory for on orgonizotion which is competeni, experienced ond etficienl lo prevent such risk occuning.
For lhe purpose of lhis porogroph, 'reosonoble period' meons oi o minimum period of six weeks from dote io delivery of lhe notice.
The Environmeniol License for ihe projecl will be gronled to SAC, subjecl lo condilions only which ore typicol for on Environmentol Licence, no loler lhon six (6) weeks ofter ihe opplicolion is lodged unless {o) il is withheld for one or more lowf ul reosons which ore ob,ieclively reosonoble for withholding such Environmentol License under the relevont lows of the Republic of Sieno Leone or (b) SAC 's environmenlol monogement plon {including the ESIA) is nol being implemenied to o moleriol extent GOSL ogrees ihol the Direclors, Consultonls ond employees (including lheir immediole fomilies) of SAC ond sub-coniroctors sholl be enlilled lo: its conlroclors ond (o) enler into, leove ond reside in Sieno Leone for lhe purposes of lhe project (b) work in Sieno Leone (excluding immediole fomilies who ore only entilled lo opply ,o work in relolion to the some conditions ihot opply to other expolriotes); (c) thot SAC sholl poy NASSIT contributions for Sieno Leoneons employees working for the compony (d) be exempl from personol income lox, subjecl lo the generol rples on expotriole loxolion os defined in lhe generol benefils loid down in Notionol Investmenl lncenlive legislotion for ogricullurol businesses.
(e) bring inlo or import, ond to export MOIJ belween ihe GoSl ond SAC following or in onticipolion of the ending of their period of residence or work, such I v J ll/21 8. lmporl ond Exporl of Equipment ond moleriols personol ond household effects {including one vehicle per fomily), free of oll loxes ond oll cusloms dulies (olher thon ony prevoiling ECOWAS lox which is cunenlly set ot 0.5% of the volue of the opplicoble goods) but otherwise subject lo GoSL's usuol lerms ond condilions being opplied ond without ony discriminolion ond for the some lo be processed lhrough ihe port of entry or exit, including ony cusloms procedures, without deloy, ond GOSI ogrees thoi it sholl deliver without deloy oll documents, permils ond licenses required io give effecl lo lhe foregoing.
SAC ogrees thot it will comply with oll lobour lows in Sieno Leone including lhe Generol Low {Business Slort-Up) Amendmenl Acl 2007.

Leone withoul restriclion oll seeds, GOSI ogrees thot SAC, its controclon ond sub- conirocton ore entilled lo import inlo ond export from nls.
fertilizers ogricullurol molerio s relevont to crop cultivotion, plont, equipmenl, mochinery, spore ports, moleriols ond supplies required for lhe consrruclion, complelion, operotion ond moinlenonce of lhe projecl (or ony thereof), ond thot eoch of the some will be processed through ihe port of entry including ony customs procedures, wiihoul deloy, unless GoSL considers, ocling reosonobly, thot lhere is moteriol donger to life, property or the environment orising lhere from ond ony resiriction imposed opplies eguolly to oll penons in Sieno Leone, GoSL ogrees lhol it sholl, ond lhot it sholl procure thot oll relevonl otficiols or public ouihorilies sholl, deliver wiihoul deloy oll documenls, permits ond licenses required to give etfect to the foregoing.
GOSI.

ogrees lhol the imporl of ony ogricullurol inpuls sholl not be subjecl lo ony lox or duty wholsoever.

GOSI ogrees thoi oll plonts, moChineries, vehicles ond equipment which ore not ogriculturol inpuis ore eligible for duly free imporls from 201 I till 2018 including.
GOSI ogrees lhoi oll duty woiven be gronled ot the time of imporl ond nol os o duty clow-bock MOU belween the GoSl- ond SAC 12/21 I I ---' ioxes GOSI ogrees thol the follou,ing tox treolmeni will opply 1o ond in respect of SAC ond the other entities refened lo below (but only in relotion to on octivity in conneclion with the project) {o} SAC sholl be entitled to cloim tox deduction in respeci of depreciolion of its copitol ossets of the proiecl from the dole of commencemenl of commerciol operolions of the project.
GoSL will exempl from withholding lox inlerest poymenls mode by SAC to olher lenders, or indireclly by SAC lo SAC's shoreholder's which is then poid io olher lenders, which ore ol leosl 20 per ceni directly or indirectly owned by o Foreign governmenl ond which hos os one of ils primory objeclives the provision of developmenl finonce in emerging morkets {Quolifylng Lender) I (b) Subject lo porogroph 9(d), SAC sholl olherwise deduct withholding tox ot o reduced role of 5% from interesl poyments.
(c) SAC sholl be entilled io on exemplion from deduction of withholding lox on 50% of ony dividend poid until 2021 provided thol SAC mointoins records of ils finonciol tronsoclions ond records relevonl to the sole during lhh period of polm oil ond olher ogriculturol producls {such records lo be reloined by SAC for 6 yeon).

lt's ogreed lhol lhe occounts ore kepl in USD only, oll lronsoclions in Leones or olher cunencies being conveded ol the relevont exchonge rote.
The remoining 50% of ony dividend sholl be subjecl to lhe wilh holding iox deduction of I 0%.

From l,r Jonuory 2022 oll dividends sholl be subject lo o wilhholding lox l0% (d) Poyments of rent by SAC in conneclion wilh ony lond leose or righl sholl be ollowoble deductions for corporotion lox purposes ond nol subjecl lo ony wilhholding lox.
GOSI ond SAC ogree thol unlil 3l'r December 2018, direct heod-office cost ond morlogemenl fees, which for the ovoidonce of doubt exclude poyrnenis for goods or services provided by o thhd porty lhol is nol on offiliole of SAC or the SOCFIN Group (the 'Overheod Allocolion') lhoi con be demonsiroled to be properly incuned for lhe specific purpose or benefit of SAC's business ond reimbursed by SAC will be ireoled os bono fide business poymeni ond expenses represenling on ollowoble deduclion for corporole tox purposes ond MOU between lhe GoSL ond SAC -r' {.t- -l 13t2\ not subjecl lo ony withholding lox subjeci io (i) lhe submission of invoices, ond os loid oul in o deloiled schedule of expenses verified by independenl ouditon, ond (ii) the opprovol of lhe boord of the direclors SAC.
After I Jonuory 2019, ony Overheod Allocolion over the Overheod Cop will be subjecl lo corporole lox ond withholding fox ol the opplicoble role.
The Overheod Cop for eoch opplicoble fiscol period will be 6% of SAC revenues (os sloled in lhe oudlted income stolement) provided lhol ii co n be demonslroied by SAC lhot eoch reimbursement up to the Overheod Cop wos properly incuned for lhe speciflc purpose or benefit of SAC business, ond is subject 1o [i) the submission of invoices, ond os loid out in o detoiled schedule of expenses verified by independent ouditors, ond (ii) the opprovol of the boord of lhe directors of SAC.
(e) No compony doing business with SAC or SAC's funders or ony offiliole compony of SAC will be deemed lo be, residenl, domiciled, corrying on business or olherwise subjecl lo loxotion in Sieno Leone solely due 1o the enlering into, delivery, performonce or enforcement of ony documenl in conneclion wilh ony port of the Projecl or ils f unding.
(f) Employees of SAC, employees of ils controclors ond employees of their respective sub-controctors sholl be subjecl lo lox on their locolly receMed income only ond sholl be loxed on thot income of o role no higher lhon lhe some role opplied lo employees with lhe some iox stotus in Sieno Leone of other locol componies or, if lower, lhe rote opplied to employees with the some lox stolus in Sieno Leone of internolionol componies, ond for such purpose only sholl be treoted os tox resident.
{s) SAC sholl be entilled to o full I007o exem plion from >c9rBolo ie tox on nco lo 3rD m eived or o crued 2022. o 5O7" exe lion for 2023 ond e result of 2024.

For lhe ovoid once of doubt, ony losses occrued during ihis period will be errlitled to be conied loword beyond 2024.
(h) No omounl poyoble or receivoble by SAC, its shoreholders ond lheir offilioted componies ond lhe funders sholl be subject lo o tronsfer pricing odjuslmenl or olherwise which is nol consistent with the principles sel oul in Article 9 of the OECD Model Tox Convenlion ond the OECD Tronsfer Pricing Guidelines, os omended from time io time.
t/ MOU belween lhe GoSL ond SAC 14/2i ,{- l-.-/ \ (i) GOSL will nol wilhhold or rejecl ony cleoronces or consents opplied for by SAC in respect of tox or duties so long os such cleoronces or consents ore consisleni with whol is ogreed in lhis Memorondum.

(j) Deierminotion of lhe loxoble bosis of SAC, which is ogreed lo by SAC ond GoSL, will be issued by GoSL.

before 30 June 201 1 .


(k) Eoch of SAC's shoreholders sholl (subjecl lo lhe provisions of ony double lox treoty lo which thol shoreholder moy benefii from) be subject io tox in Sieno Leone on ony copiiol goin reolized by thot shoreholder in relolion io the Projeci, including lhe sole of oll or port of the business or the shores of SAC.
For the ovoidonce of doubt, o lronsfer of shores by ony person or compony (for these purposes, o Seller) of ony of the shores in ony compony which owns ony shores of SAC (follhese purposes, on lntermediote Compony) will nol be sub.ject to copilol goins lox in Sieno Leone on ony copilol goin reolized by ihe Seller by reoson of such tronsfer, provided neilher the Seller or the intermediole Compony is residenl in Sieno Leone for lox purposes olher lhon solely by reoson of the Seller or, os lhe cose moy be, the lntermediole Compony owning shores of SAC.
(l) GOSL sholl gronl SAC on instituiionol relief of Good ond Services Tox (GST) on supplies until 2015 incl.

or ony such period lhereofler, when produclion is scheduled lo storl.
For lhe purpose of lhis Appendix references to "tox" includes oll presenl ond fulure ioxes, chonges, imposts, duties, levies, customs duiies, excise, deductions or wilhholdings of ony kind wholsoever, or ony olher lox or chorge hoving ihe effeci of o tox, or ony omounl poyoble on occount of or os security for ony of lhe foregoing, by whomsoever on whomsoever ond whenever imposed, Ievied, collected, withheld or ossessed, togelher with ony penollies, odditions, fines, surchorges or lnlerest reloling lhereto.
GOSI, ogrees thot lhe Cenlrol Bonk sholl ogree ol oll times (whelher by reoson of such oclions being complionl with the Exchonge Conlrol Regulotions or otherwise) ihot SAC, ils shoreholders, the funders lo ony documenls relevont to the development, operotion ond funding of lhe projecl sholl be enlilled lo: 1O.

Exchonge Conirol MOU between lhe GoSL ond SAC 15121 * C- I I \l (o) receive ond moke poymenl in occordonce vrilh ihe relevont documenl including oulside of Sieno Leone in foreign cunency.
{b) converl Leones lo foreign cunency ond remit foreign cunency outside of Sienq Leone os permilled under lhe Exchonge Conlrol Regulotions in force ond in respect of lhe relevonl regulotions refened to in lhose Regulotions of the dole of this Memorondum.

(c) mointoin Leones ond foreign cunency bonk occounts inside ond oulside of Sieno Leone ond deposit, reloin ond deol with Leones ond foreign cunency ulilizing such occounls.
For the ovoidonce of doubt, bolh foreign ond locol occounls moy be used indiscriminotely lo receive ond moke poymenls including bul nol limiled to: i) proceedings from exporl soles [credil), ii) copitol poyments by shoreholders (credit), iii) poyments mode fcr lhe ocquisilion of imported copilol goods (debit) ond impcrted consumobles fdebit), with oll tronsoctions on lhese occounts duly documented in the occounts of lhe compony.... (d), comply with lheir respective obligotions under lhe documenls relevonl lo the development, operotion ond funding of the Project, ond GoSL ogrees thot ii sholl, ond thot it sholl procure thol oll relevonl officiols or public outhorities sholl, delMer withoul deloy oll documenis, permits ond licenses required lo give effecl to lhe foregoing.
GoSL sholl procure thol the Cenlrol Bonk sholl moke ovoiloble lo SAC such omounls of foreign cunency os ore necessory for SAC to comply with ils obligotions under lhe documents relevont to lhe development, operolion ond funding of the Project ot the officiol role of exchonge or, if no such role exisis, the rote ot which tronsoctions ore legolly ond cuslomorily effected in occordonce with ony lows or regulolions cunenlly in force in Sieno Leone.
GOSI ogrees 1o enler inlo o woler rights ogreemenl wilh SAC ond SAC sholl be chorged ol o fixed role of 3 trocted m nvers eone L be no res ond olher wo on on lhe volume ot woter extrocled by SAC from rivers.

olher wolercourses, wells ond boreholes.

m o urses.
m o urses.

There er U ll Woler ond ulililios 12 Chonge in Low lf ony low opplied in Sieno Leone comes inlo effect or is omended, modified, repeoled, wilhdrown or reploced (o Chonge in Low) which hos o moteriol odverse effect MOU between lhe GoSL ond SAC I rl €7 , 16121 ,tfi 13.

Noiionol'zolion c' Expropriotion on the obility of SAC, ils coniroctors, sub-.coniroclors.
ony shoreholder or fu nder io perform lheir respective obligotions under ony documenl relevonl to the development, operolion or funding of ihe Pro.iecl or the cost of or relurn from so doing ofler loking inlo occount lhe effects ossocioted directly ond expressly with ony such Chonge in Low, then GoSL undertokes lo gront to lhe Pro.iecl, SAC, its conlroclon, sub-controclors, the shoreholders ond the funders ony exemplion or license or olher outhorizotion necessory or desiroble lo ensure thot such interest, rights, obligolions ond economic retum ore nol moleriolly odversely offecled.
lf there is o dispute between the Porties in reloiion to whether lhe Chonge in Low hos lhe effeci described obove, ii sholl be refened lo the orbilrotion procedure os ogreed ond set oul in the Memorondum cr PPA, once the PPA is in f ull force ond force ond prior to the dote os sel out in lhis Agreemenl.
GOSI ogrees lhot ii will nol, nor otlempl to, nolionolize, expropriote or confiscote oll or ony porl of the ossets or righls of SAC, its sub-controclon or their respeclive conlrociors or ony olher porty lo lhe documents relevonl to the developmeni, operoiion ond funding of lhe project or lhe shore copilol of SAC other ihon on lhe bosis of tull compensotion (including loss of profit) to the offected porties, including on omounl nol less ihon thol required to repoy oll principol, inieresl, tees, costs ond expenses, omounls oulstonding lo the funders under or pursuont to ihe funding documents.
Eoch Porty conflrms thoi it does not inlend ond will nol engoge in ony illegol octivity ond SAC ogrees 1o toke reosonoble sleps thot i1s shoreholders offilioies ond its expolriole employees olso do not do so.

Being o pioneer projeci in Sieno Leone, SAC ogrees lhoi il will comply wilh oll nolionol stondords in relotion 1o environmentol protection ond heolth ond sotety os required for the type of octivilies conied oul under ihe Project ond/or by SAC in generol.
SAC ogrees thot ii will loke reosonoble sleps 10 ensure thol none of ils group componies wlll enler into, withoul lhe prior wrilten consent of GoSL (which sholl nol be unreosonobly withheld), lhe business octivity of the production in Sieno Leone of polm oil ond other ogriculturol products oulside of lhol oullined in lhis Memorondum or the Business Plon in force ot lhe relevonl time- ln lhe evenl thot SAC or ony of its shoreholden, controctors, sub- MOIJ between lhe GoSL ond SAC 2 L-...' 17 /2t I I l \ * controctors or funds ore in breoch of this Memorondum such breoch sholl nol be grounds for suspendirrg or terminoting ihis Memorondum, or ony obligotion or provision binding on GoSL under this Memorondum.
The penolty for ony such breoch sholl be, insofor such breoch is o criminol or civil offence in Sieno Leone lhe penolty imposed following the opplicolion of the opplicoble criminol or civil procedure, ond opplicoble domoges for breoch of controct.

ln ihe evenl thot GoSL is in breoch of lhis Memorondum such breoch sholl no1 be grounds for suspending or lerminoling this Memorondum, or ony obligolion or provision binding on SAC under this Memorondum.
The penolty for ony such breoch sholl be, insofor such breoch is o criminol or civil offence in Sieno Leone the penolty imposed following the opplicotion ot the opplicoble criminol or civil procedure, ond opplicoble domoges for breoch of conlroct.
Signed on t4 k{t".-!4ol2 tn Freetown, Steno Leone For the Governmenl ol Sleno Leone tot Mlnlster of Agrlgullu For SAC Hold I i I Min Flnonce nd Economlc Developmenl ><l\t',- L- T\t t Mlnlster of Trode ond I uslry 7-( {} t tL- I lc tr( S. rt ,.i3 g l, MOll bel\ /een lhe GoSL ond SAC talT_1 ,4, ,.

.

: , GOVERNMENT OF STf,RRA LEONE ENYIRONMENT PROTECTION AGENCY SIERRA LEONf, ENVIROI\ME:'iTAL I]VIPACT ASSESSMf, NT LICENCE /l* ,V-rrE e,r*/,b/ 7,f"1 The lnstitution Business-..--.199f l.!

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Under Tenns aod Condhiors appr,oved by the Board of tk EN VIRONilTf,,NT PROTECTION AGf, NCY tr Erer:uri vc Chairpcrvcn PHYSICAL BUSINESS PLAN 2010 2071 2012 2013 2011 20t5 20r 6 2017 2018 2019 2020 Planting (lndustrial) ha in production FFB - own production FFB - 3rd-party purchases CPO - total productaon ton ton ton Total factory capacity required ton/hour Workforce headcounl 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U 0 0 0 0 0 0 0 0 0 39 189 389 589 3 000 7 000 11 000 12 000 12 000 12 00c 15 000 50 000 102 000 149 000 184 000 204 00c 0 10 000 10 000 10 000 10 000 10 00c 3 600 13 500 25 980 37 260 45 660 50 46C 4,2 600 16,8 31,36 44,52 il,32 1 414 2 214 2 414 2 414 59,9' 2 41A FINANCIAL BUSINESS PLAN 2010 2011 2012 2013 2011 2016 2016 2017 2018 2019 Total Capital lnvestments 0 10 000 000 13 500 000 16 000 000 22 500 000 22 000 000 0 0 0 0 84 000 00c 0 7 083 600 12 015 900 14 041 900 20 685 700 22 3',t7 500 5 475 500 12 745 600 12 394 000 4 168 000 110 927 70C Admin.
& Overheads 100000 1768761 2000000 2000000 2000000 2000000 2000000 2198000 4200000 6009500 24 276 261 Varialion in 'Working Capital" Turnover 100 000 0 0 0 0 0 0 0 o 275750 876 750 1 302 600 1 177 350 876 750 4 609 20C 0 3757500 '14 160000 27 186 000 38959500 47 727 000 tzl6t ,,., I\-r" tvs puo lsoc aql uee4aq 0or!

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