.l ffin*t: [Tr;t-S\--tl'I- THE GOYER}{MEI\T OF TITE REPUBLIC OF STf,RRA LEOI{E (GOSL) I A]{D ..:. AFRTCAI\ ] MII{ERAL S LIMITED :. GROLTP" OF COMPAI\IE S -' \[ h .\\ \ v '*-?. N{I}.i};G I-E,4.ET AGIiEE}iENT BET.,\.F[\ T}iE GO1,PI|1-J\iF:iT CF THE REPUtsJ-IC CF SIEF.I{{ LECNE AND AFRICAN MINERALS I,IT,IITEB GR.OUP OF COMPAI\IES TABLE OF CONTENTS ARTICLE SECTIOI\T PAGE PREAMBLE A RECITALS ,1 - =1 ' DEFINITIONS .5 4 RENEWAL 5.' TRANSFER- . 6 SURRENDER . 7 zuGHTS AND OBLIGATIONS 7 8 - ':AMENDMENT OF MT{N\IG PROGRAM : 9 TEMPORARY SUSPENSION 7 IO SUSPENSION AND CANCELLATION 8 11 :: SUSPENSION OF PRODUCTiON I 12 OCCUPATION OF SURFACE - 8 i3 V/ATER AND LAND zuGHTS - g ---- I4APP LICATIONOFDUTIES AIID CI-IARGES-ObIMPORTS- - -, - r.:- - .:'; *- . ...-: -.- r..;-.--- - 15 EM?L€YMENTAND TRAIhILNIG '\ 16 PROCLTREMENIT i0 17 PROTECTION OF THE ENVIRO}N4E}IT 10 18 RECORDS REPORTS AND INSPECTION 11 \\ \\- \\ \r\ trr-jffi*fsla re*e ,+ 10 trTCf-AI I)tr/lil\rrtr - LJ r lL'Li i! l.gUiivrL 11 20 C OMI{T"NiTY D EVEL IU O P N4EbiT t )\ 21 HtrAI TTJ !g qAtrtrT'\,' ^NTN UlULt l 20 22 N\TTERPRETATIO}{ A]\-D ARBITR.ATIO]'I 20 23 FORCE MAJELRE 21 'a A. i LA TERMII{ATION 2t )< GOVEffTING tAW_ : _.__f. .a1_ ) i .LL -:: -:-- -: - /.6 ' REViEW -;;-=-427 ....| 21 28 GOVERNIv{ENT PROTECTION A}{D AS S iS TA]{CE 2t 29. GOVERNMENT WARRA}ITIES :' 21 30 NOTiCES 22 SCHEDULES.].. -.', ai | :. ' " ' ''';l:-"i-'_:'' .-:-.:: .- -.*: .*E -:#--i-,-. -:.a --_ r TiIIS AGi€El'fEl'iT is m.1ie and eiiieiec i::io ti:is ca1'cf i010 EETiIIFE\',i- L{il'ii.qTEF. }'ii}-EP\,ti, LESOURCES,',rl:cs: adires-s icr sern.ice is tlh ficor !our,j Burlciilg. Broolcfieids. Fieetou'n ir. tiie \\ie-stern Area ol ihe R-epublic of Siena Leone acring for an,i c,n "' behalf of the Govenuneni of the P.ep-rrbiic of SiEria Lecne, (hereinafter refen'ed. to as ,iiie Governmenr' ,,r,'hich expression u'here the coniert ad:aits shall include its successors in office) of the one pac AND AFRICA.\* trIINERALS LIIfiTED. a cornpany registereC in Bermuda that is ihe parent company of Afiican Minerals (SL) limited, i:aving Subsidiary Companies registered ani operating in Sierra Leone in the names of African Raii anC Port Services (SL) Limited and Tonkolili Iron Ore (SL) Limireci coinpanies established under rhe iaws of Si.erra Leone whose registered offices are at i54, WilkinsonRoad, Freetown,(hereinafter referred to as the Parent Company) of the second part and TONK.OLILI IRON OR.E (SL) LiMITED a w-hollv -. ouned subsidiary of AFRiCAN MI'TIERALS (SL) LIMITED registered und,er the Laps of Siera LeQne having its regrttered offrces at 1i4 V/illiinson Road, Freetolrn aforesaid (hereinafte: refen'ed to as the "LICEhISEE") of the third pan (the second and third parties to this Agreement are collectively hereinafier referred-to as the "Company" which-expression where the context admits shall include its successors in off,rce). ' ). - :- - - .. __ - :-. rwrenEas; '*" -'- 1. Aiiican Nlinerals Limited registe;eci in Bermud.a has establisheti wholiy owned group of ' companies as subsidiaries operating i:r Sieira Leone amon-q which are African.Minerais (SL) Limited and Tonlcolili Iron Ore (SL) Lirniteci; 2. Afrlcan Nlinerals Limited conducts business in Sien'a Leone tirrough its subsidiarv companies operating in Sierra Leone among which is the Tontioliii Iron Ore (SL) Limited i whose exploration Licence is ilGL/0506. - ^^a i. Aliican Minerals Limited has conducted vigorous prospecting and exploration progfams under the said licence and has established the existence of a large deposit of iron ore' r'.' wirhin the concession area. 1. Har-ine establisheci tire existence of this iarge mineable.Iron Ore d.eposit the company applied for a Two Mining Licence under the Mines and Minerals Act 2009,No 12. , 5. These apniications have been reviewei by the ivlinerais Acivisory Boarci, which has recorrrmended it to the Minister for approvai. a .-- -:. n Consequentiy, the Government of the Repubiie of Sierra Leone and AfCcan Minerals L;nireci 'wish to enier.inio an agieernent io sef but the-te,rml anci'conciiiots'fsr rhe, . .=. granting of:?lqry4g Le4e fglthe deveiopmenJ and rnining orais ore deposit. llr r\i ^'! \i /!t ;*'i) ',\-'=- - :-'-2 -. 't \ /\::' 'ri:-n-r-- -\(-: i\ . ;.1-:r ;ii-l uL[. Tii: P.:^RTIIS ii[RI:TO .r,_Ci=: ^a_,arY^Yr'/- - .rJ i''Ji:L\J \i -\: -i ARTICLE : 1. DEFIIITIONS: Under thls -tgreernent rr'0i-Cs enC phrases ai-e deirneri eccordir:g ro the rneening and interpreration assigned tc them under fhis article. a\ rrEffo^+i',^'i-\^+-:, *^^-^ *L^ J^r- ^f -^tE - 1 c.) .oilsuLr.\,s uate" means. the date of ratification of tiri.s Agreeinent , 'b)' "Company" means African lvlineraLs Lirnited and its subsidiaries (african Minqais (Sfj .' - -Limited,-Tonkofili'Iron Ore (SL) Limited and African R.ailway-and forts S**1r", iSij Limited; cl "r\A:t-iryi1.ll",Mgf ..., rl__-- .*! {in91a1s Agt z-oQe (Aet \! 12 912ap\.; - d)' "Exploratioa"has-the meaning ascribed to ir in secticn 1 of the Act. .-*-: -- - . e) ,#tffi;.;-*t eay.ope:ations for mining iron ore or any other minerais stipuiated in A L) "Mining Lease Area" as described in ScheCule 1 ineans the area covered b,v the tw.o Mining Licences as set out in Sciiedule 24 and 28 to this A .,reerncnr. - r5! vviiiuiii, - Elt ..Minister,,rneanstireMinisterresponsibieforMi:reralRescurces; t\ aar . Lt) '-frospecting Licence" mears Exclusive Prospecring License issued under the lvlnes Minerals Act 1994 (Act No 5) , .' and. . t) "Tontriolili Exploration Licence" rtear.s Explcration Licence EXPL bIO. 05i06 held by the company as ser out in schedule i to this Asreement. j) "lv{ining Op.-erations" meaits an}' operations for firinine iron oie and/or an.r, other minerals stinulated under the lvlinins Licence g:anted irereunder arc shall - bg c::ri:d ou: ir: accordance r,r'ith tire terms and cond.itions cf rhis Agreen:lenr, r.vhichsaid include but not limited to exploration, extractionl "p.*,i;";;L;ii minitrg, p;b...qring,-irurrrpoaJon, -:-- - rt.enno _:_ rrU9If9U Cznd rhe construction ot:infrasructure and oih.rlutiiiti..'tot'.onirr;il;;; .- - --__: 1-\ (4r .! . KJ --i\4mtng Lrcence" rneans the mlaing iicence granted to Tonkoiiii iron Ore (SL) Lllited : , ,, _, under tiris Agreement. t: _ :. : , ,, ,: .l) "Infrastruclure Facilities" means all the stn:cturai laciiities whether permanent .. ternporary useC by ihe conpany in tiieir daily mii:.ing s1 -;.,., operarional activities and shall :.,. .. . l 5 A ,r// \1\ | \fl/ \,\ \ li-r t \\ lv r--- \! \i 't' .i1 :::;luci: bui r,oi li;.lreilio iiii:es. q,;3rie:s lor e:l:ior'::s. rcais. r;:^tlj::e i.:iu'c:'::i.l',,.'r-v betrveen ihe n:ine and,Fepei poit and oi fa:giin poini. the stocli-pi1ing. lertiiing an'1 siiip ioadiiig faciiilies at Pepel Pon and-'c: Ta:-s:in Foini and an;v oiher i::mrovea'ole siiucrure i; ihe minine area. ARTICLE: l. IIINING T ICENCF, a) In accordance with Sections 79(1) and 108(i) of the F,ct, Tonlcolili Iron Ore (SL) Limite6 (hereinafterreferredtoas.theCom.pany')asthe1ro1cerofanExp1orationLicenceover tire Tonkoliii iron ore deposit (EXPL 05/06) describeci in Schedule 1 is hereby granted a \{ining Lease to develop and mine iron ore cieposit and any associated minerals in accordance wi.J-r the lwo Mining Lidences g.ranted hereunder and the apprqv.ed.progmm ' -. -of mining opeiations 'anci the envirorunental. management program-on terms-and :-conditionsstipul'atedinthisMiningI,easeAgreenent. b) - -This Agreement shaif c6ffie into force and effect'upon ralifieation by Parliament. --: - _ -_.. ;- -* +- ARTICLE:3. TERIf . 'The Term of the Mining Licence shali be 25 years from tlie effective date. ARTICLE: 4. REI{E\,YAL . Tl'e Company may at least one year prior to the expiration of the lvlining Lease aopiy to tiie Minister for a renewal for a further period of i5 years efiective from ihe date cf erpirarion of the previous Lease. Upon sih application p:ovicieci the Company il *;, all her obligations under tire Act and ',.his Agreement, the Company sha1l be entitled to , - such renewal upon such fair and equitable ierms and conditions as may be a-ereed upon between the parties to tiris Agreement. AR.TICLE: 5. TRANSFER ' :' Upon acplica:ion for a transfer of the Mining I icence under Section-119 of the Act, tire Company sha1l be entitled to such transfer of the Mining Licenee granted under this Agreement ro a body corporate that is eiigible under the Acl p-r-ovided rhe'Company has : met all.the 1eqgi1em-e1ls u-nder Jh3_s3id_{ct. : : _ --'_'.-1.'-_- -__ ,,_---=_- - -:=- -:---- _- ...+ .-. -.+ a) T"ire Companv may surrencier io the Govern::ient ali or anv pafl or pans of tire Mining_ -,." Licence ai an'r' time ciuring the teEr of suCh Lice".. !y notice in r.witing to rhe ':--a.-. 'Govemmeat within the period of ninery (90) days. Upon such sui-rend.er rhe area or areas ':-' {, nv Vi \- \tr \ ->- ==:-::='-::=l=1l:r.1'. :::l of or sr-lbjeci to the provisions sutl'eiioered shall cease to be ccmprised cf the Nllning Licence granied unlel such Agreeir:elt and sirall rei'ett to tire Gor,'eriinent. Upon the suirenCer, expilation or oth.er tennination of the Mining Licence or of ani, poflion thereci the Company shall be granted a period of not less than six months, or such ionger period as the Director may specify, immediately following such sunender, expiration and/or teiinination in which to remove ail or any of its plants, machinery, equipment or other moveable effects from the areas covered by the Mining Licence or ponion of tire I-icence surrendered., expiied or terminated. ARTICLE: 7. RIGI{TS AND OBLIGATIOI{S a) The Company sh all have tire exclusive right to explore for iron ore and associated - minerals, develop the mine, and carry out mining opefatiOns as-mthe-approved program - ' 'of qining .operatiohs anci to transport, exp-on and market lhe ore from the Tonkolili - ' Mining iiceiie in accbfaanCe with -sections 1 14 and 1 15 of he Act whether by itself oi any other nomiqltld_ representarive of the company. b) The Company shall have the right to construct and operate within'or outside the ' exploration-and mining area, roads, railway, buildings, plants, structures, living quarters, 'water supply systemi, electric power systems, pipelines, communication systems, airstrips, stoiage facilities and other simiiar- accessory lvorks and installations which are necessary or usefui in carrying out iis operations under the Agreernent- AI{TICT,E: 8. AME}{DME}{T OF MI}{INTG PROGRAM The Company has the right to amend its program of mining operations and environmental management program under Section i 13 of the Act. On the discovery of any other rnineral during exploration or mining operations which is of significance, the Company shall report such discovery to tire Director within 30 days in accordance with the Act and may applyto the Ministerwithin 180 days forthe exploratiqn ormining of such deposit to be included in the Mining Licence, giving in the appiigation a proposed prograrn of exploration or mining program. -' --- . : The Director -may temporarily suspend mining operations oq an emergency basis-*in accordance w{th Section 52(1) of the Act after giving the Companv a reasonable period to remedy the breach and comply with the Act. tn ^ti th tl't' ,r I\\_ \t \rj \\ ARTICLE r i O. SL]S P Ei{SICN Ah:-l CAJ\ CEI- LATIOIT- Ttle Ministei shail before suspending or cancelling an Expioraiion oi ir4ining I ice.se under Section -<3 of the Act give tire Company at least 90 ciay-s notice io ren:.edy 211, bieach of the conditions of the Licence provided that with the exceprion of na1,m.,rr, ,iu., the company is recluired to make compensation in money to the satisfaction of rhe Nlinister if the breach is subjeci ro compeasation. -ARTICLE: 11. SUSPEIYSION OF PRODUCTION *.. In the unlikely -- in accordLnce event that production has been suspended for 24 monfis by the Company, with section i1S(6) of the Act, the-Minister'-shail*cantel the Minin,, L19,e1ce prgvided that no satisfactory '5 within arrangements are in place ro resume prod.uction --. a r.eas93abl9 time. _ ARTICLE: 12. OCCUPATION OF SURI'ACE a) On acquisiti6n of land rights under Sections 34,35 and 36 as weil as resettlemenr if need be under Section 38 of the Act. the Company shail have the right to occupy and utilize the surface land area indicatecl w-ithin the Mining Licence and the infrastructure faciiities - and such parts of the land as may' be required for exploration purposes and mining operations, accOssory works and installations as stipulated under Section i 14 of the Act. b) The Company shall endeat,our to pay fair and reasonable compensation depending on a certified vaiuation carried out by a Government appointed valuator for an1, prospective demaoc to crops, trees, buildings or works during the course of their mining opeiations. The Company shall use it best endeavour to u'se standard equipment anI tecirniques during drilling, blasting, open cast excavation to mine iron ore or associated. minerajs - within the \4ining Licence as approved under the proe1am of r4ining operation. Accordingly' it is agreed between the parties thar such standard mining equipment and -. ' rcnhnin"o5 and the resultant distr.ubance of tire land and property olvners in relation to - that effect shall not be taken into account or evaiuated in the determination of compensation in respect of damages payable to ownerg of or larvfil _occupidrs of the laird ,.:,:: -. and other valuable prop_erties. To minimise suclr _e$ec-t llr-e--qa,tlq4qy!gt.-_g,: ltrl i.t witt= - ,, :,* , restore all dnea oul areasjnaCcoidinee_:with iheECr,;ironmgnlal a;utgArot piin . - c)1heGoveng[eB1.sha'11for-cjajnrsarisLrgduringt1re-termoftlrelMiningLeaseindenenify. - the Company against such claims by owners or occupiers linciuding Chiefdom .......'Counci11ors)inrespectoft1ieMiningi*u."areaot1rertha^ri1airnsforcImp.,'*ioo made in accordance r.r'irh provisions of Sections i4 anC 35 of rhe Act.. . -:-' r/1 A!t AI li tl ,Y t , vi-\. f : I-1. \1.r.TIl .:..'".) I.:,-\-; illCljTS --ir.TiCr .= a) To facilitaie rninhg opei'aiions- in addiiicn io tne ;i.:liis sii'en tc :i:e Co:::lan;v un,ler Section i11 of iire -A-ct, -Jre Conipanl'siial1 u,ith tiie alprovai of the \Iinis:ii.cf Enerrv and Water Fresources h ave the right to use \rJater fiom anrv natuial 11arefcouis. fL domestic and or mining operations anci ieturn niining spoils io the river or sriearn provideci that the Compan,v sirali noi discharge aily poisonous or noxious n:ader nor present in the intake r,vater. b) Tire Company shall in accordance w'ith its Envilonmental iv{anasement Plan also cut or .- use any tree w'hen necessary for both domestic and or mining purposes provided. that it shall not cut or take any economii tree belonging to land owners without adequate -. compensation oi any tree from a forest reserve without the consent of the Foresr Officer in charge and payment of the requisite fees made. i c) 'The Compahy agre-esthat if its operations,-including the elercise of any rights shall be ' deemed b-v th9 Director to beJikely to poliute, impair, divert or desroy the nornal supply -of drinkable water,supply of any-village, the Company shall provide an altenatiye safe and adequate dr-inlcin-s u.'ater supply to be Ceiermined and approved by the ju{inisier of Heakh. AR.TICLE: 14. APPLICATION OF DUTIES AND CHARGES ON IMPORTS Subject to the terms of Article i9, for the duration of this Agreement, the GOSL shall I exempt the Companies and their nominated contractors from all duties and taxes in respect of imports of mining machinery, plant and equipment, infrasrructure and consumabie mining stores as defined in Schedule 3. b) Subject to the tenns of Articie i9, subcontractors hired by the company shall freely import into Sierra Leone, use therein and freely export after use, su& machinery ani equipment necessary for construction and commissioning of ptant and facilities for the mining operations. ARTI CLE : 1 5. EMP L O}']\,IE\"T AI.{D TR*AI}{II{G a) The Company or its contractors shall not employ expatriates wlere-sierra'Leoneans are equally_ competent to do or disch.arge,any,duty by y*i4ug _q!-sqch_appdiniment. This --- applies *'heth6r the labouris skiitea- ofunskiiled-wilh th-"t9_"piio; tir"fuet us'J of iiritC: labourforc4n.yingoutany.pfitsrniningoperationsshaiIu.piot'iuit.a. L\ u) S,rbject to the foreeoinq resirictions anci to any applicable provisions of the Non-Cirizens (Registration, Immigration and Expulsion) Act No.i4 of 1965), all.persons deerned bl'' the Compan;v and/or i.ts contlactors to be required for the execution of its work. inciuding executiv'es, off,tcers, engineers. consultants, technicians, sliilled and semi-siiilled labour, shal.l have the right to enter and resid.e in Sierra Leone and to depart iherefioin, \i l|r r\ \ 'r- \i\ :.. ffiseFj'.ffi*e.- T.eoneans c) Sieria u'itir the recuisite quaiiiications and e>:peiience including but not timited io consultants. erecuiives, ensineels- oti:er professionais, technicians both skilleci and semi skiiled will be gi."'en pieference in ali leveis of empio,vment. The Company w'ill train Sieria Leonea:rs both on the job and externaliy in accordance with the Act. Trainrng will be carried out at ail ievels and will involve courses and -eaining experience overseas. The objecrive r','ill be rhe transfer of technoiogy anci to gradually replace non executive expatriaie.s:aff wi'rh quaiifjed and suitable narionals as ARTICLE: TE. iNOCUREME]\T ' In the acqriiqit3q_n -df equipmeni, seivices and sunplief for exploration and. ninine opeiations, the-Company' siiall eive prefeienc€ 'ro equipment, serv'jces, supplie, unj ' products produced locally in Sierra Leone if such equipment, services and supplGs can be 'suppiied at-prices, quantities, quaiity. q'ith cielivery d.ates and other commercial terms equivalent to or mori: favourabie than those at rl'hich such equipment, sewices and products can be suppiied fi'om outsic1e Siena Leone. : ARTICLE: 17. PROTECTION OF TI{tr E}'ITRON}{ENT ': a) T' lhe Company warants thai it wiii do iis utn:rost to adhere to the current and future environmental laws and regulitions and shali submit an Envirorunentai l Assessment Impact and Environmental Manesement Plan in accordance with the Act to mitigate the effect on the envircnment throughour ihe life of the mine. b) in addition to the requirements of the Environmenial Jv{anageme-nt Progr4m,. the. Company shali be responsible for reasonabie restoration and rehabiiitation of the surface of Exploration and \4ining areas and areas useci by ihe Conpany anC shall be responsible for the safe disposal of liquiri substances, protection of pits and shafts and evlry.thing necesssrv for iire shurdown of mlring and rreatrenr cperationl. The Comfany shall take ,_: all reasonable measures to control the efiects of harmful__p_q]iutjga cqiitarnal!__1o1.!o _rhq ,=€ extent practiiable and- accorciing Io- intemarional *"r*n*.ntd s'tandard.s- and thar stipu1atediaJhqA'9t'Thqcost.ofsuclr.actionsha1lbeinc1uciedintheoperatingcosts.A resewe fund shiii boestablished at the ccmmencernent of mining operation to cover costs of all such measures. rl 1n Al/ il,i\ r, llo \ \ \_.-- \, \r 'J \ll \', ! .. I A:]-T;CLE: r li. l:'CCR:5i itf PCiiTS -{-\;;l If Si'3CTii;r' a) Tre Coi::par.., si'lall prepaie and niaintain accuiaie lecords ci its oper:ljons ar ali tines '*niie tliii aglee-*ni ir in iorce air,l sirall f*inish Governrlent u,itil ali iniorrnation or daia concernlng its operations it may require under ihe Act nrcvid.ed ito'i,e.,.ei, thai the Ccmpan'-r wiii onil' cornmit an1' sr-ich offence under Section i8(4) of -rne Act if thev deiiberately fail to comply u.ith the plovisions of the above Arti.cie. b) Governrnent tluough the Director shall hat'e full access to all mining operations of the company to observe and moniior operations being ccnrlucteC and inspect ali installations, infrastructure, lecords, fi.nancial and techlical and data kept by the compan-_y, Such inspection slrallbe carried oui by the \4iniqtiy's Iron Ore Prograrn Management Unit, provided that in exercising such right it shall not inierfeie with the company's operatiols. vt The Comp4nl' shali m-ake avaiiabie copies of oata i;r their@ssession"which reiate to rheir mingral right-s--,A11-Aqti 01 infonnation supplied in a-ceord34r-ce with the Act shall remain con{idential an{ shali not be diluiged rvithout the prior written consent of rhe Company but such conser1t cairrnot be unieasonabl."- wirlJrelC ARTICT1E 19 FTSCAL REGn\,rE a) Slining Lease Fee end Surface Rent ' The company sirall pay io the Govemment of Sierra Leone ('GOSL') *o"uti,"'ln advance. a lv{ining Lease fee foi Ton-kolili Iron Oie, for each of tire two Mining Licences. an amourt of US$ 500,000 (Five hunCred thousand Unired States Dollars). or its equivalent i.n I eones per block per year and for each year. l TiO shali aiso pay to the land owners or lara'ful occupier through the appropriate local authorif in which the Mining Lease Area is situated, annually in advance and witirout demand a:r annual suiface reni determined by mutual consent pursuant to the Mines and Minerais Act.2009. b) Rovaltics (i) A Rovalt,v at the rate of 3% (three peicent) oi market-r'aiu.e. as.'defined under Section ia8 (ilof'rhg MN{A 2AA9. --*J-:-: -- .-,. ,.-l -..-.: - . - ,.. -::F_ (ii) Ro1,'aities Pa)'ab'1e-under b(i) shall constitute an operating cost of the company and shall be allowed as a deductible expense in ascertaining.its chargeable incone foi irl.come iax puiposes, provided that R.o-valties shall not be credited against or consid.ered. as part oayment of the inconie tax liabiliri' payable to the GOSL _- (iii) Wirhin a rna,rimum period of 45 (forty five) days after ilie end of each month's shipmenis, TIO shall prepare and deliver io the Diiectcr of Mines a statemenr t1 '/1 [i\ ir !!t rl l\ r^i/ it ; \\ !- r l1 \ rl \ \ri ceilifrc-i bi'ti,q ic-.ignlll-:. :3frr'Se i-.iaiive oi fiC in Sierra Lecnr' statin.J rite tetai ionilase of miireials cf each iiiild. glade and quantii.v- sirippeci b.,' TiO in iltar r'1onih, ioseiirer r','jih a staieireni of tjre gross saies plice 'free ot, board'(Ilcome Tax Aci. 2000) rlie vessei at tiie Siera Leone porl or designated ioading faciiiry oi sitipment after deducting any Goods anC Serr,'ices tax and othel similar or analogous taxes, export duty, ievl' or excise iax pavable ro tile GOSL or anv departmeni of the GOSL. Upcn delivery of such statement, TIO shall pa;r to the GOSL the R-o-valt1'payable wirh respect to the minerals covered by the statemem. Even' statement of expon shall specifi.' tire designations anC names and add.ress of consignees and sirall be accompanied by a copy of flre export entries cer-rifieci by the Com.missioner-Generai of the Naiisnal R-evenue Authority. Jn-preparing the statement refeired to in b (iii)_account : wi-ll be taken of any acjusunent requireci as a result of amenciments or iriectionr rron prior periods such:as provtsional pricing terms or credit notes. c) fncome Tax (i) In tire conduct .of iheir activities in Sien'a Leone pursuant to this agreement. the Companies shaii be liable for income tax upon their chargeabie income derived from such activities as well as upon any other income of the Companies fiom a Sierra Leonean source at a fixed rate of 25Yo (twenf percent) per annum or at the pievailing iate applicable to companies generaily, as set forth in the Income Tax Act 1000. (iu The Companies in the conduct of their activities in t Sien'a Leone, pursuant to this agreement, shall not be liabie for any minimum taxation. (iit Foreign exchange gains and losses arising as a result of the change in exchange rates between the date of the underlying transaction and the date of settlement of rl:at t:ansaction will only be assessable or d.eductible for income tax purposes once the gain or loss is realised. UnreaLised foreign exch44ge gains and ]osses will not be assessable or deductible for incbmetax iurposel; z ji= d) ':-.d WithholCine Tax .'. (i) The rate of withhoiding tax that may be payable on dividend.s or any distiioutio:n paid bi' a'r1.' of the Comnanies to their holcing ccmpany, or qny of rheir affiliates or su'bsidiaiies of feliow subsid.ialies, ci any cther shaieholder shall be 5% (Five n.-^ ^. '\ PcrcsrlLj. 12 l\, \\ \-- '\\.r (ii ) Tite late oi'rvirhlioiCi;;g iar lla)/eble on llatir!;:eiiieni fees paici b.v iite Comi-.e;rjes io thei: ):olcing conllan't, aifiliat:s. subsiciiaries or feilS'w subsiciiaiies or anv other entiry shall be 596 (Five percent). (iir) The Companies and their noninaied coniractors sirall not be liable to witl*old any taxes on payments to coniractors as specifieC under secrion i 17 of the Incorne Ta-x Act 2000 e) Capital Expenditure Allowances (i) An initiql allowance equal to 40% (forty percent) of tire United States Dollar cost of Qualifying Capital Expenditure shall be deductible by -the Companies in determining the chargeabie income of tire Companies for the year in whicir such . - Qualifying Capitai Expenditure is incurred, with an annual aliowance at the rate . 'ot z}%-(t\Nenty peiient) of the United States Dollar cost of Qualifying Capital Expenditur-i:-'being deductible in determining chargeable income in each subsequent year until the flril cost has been deducted. '(ii) Where an asset 'which faiis within the d.efinition of Qualifuing Capital Expend.iture is scrapped, destroyed or sold. for iess than the balance obtained by deducting from th.e cost thereof the aggregate of the initiai allowance and the annual allowances previously granted. in respect of that assel then such balance r 'shall be fulty ded.uctible against chargeable income in the form of a scrapping . ' " . alLowance in the year in which such disposal, destruction or sale occurs (iii) Qualifuing Capital Expendirure shall comprise: \ ' (a) capital expenditure as set out in the 6n Sciredule to the Income Ta.x Act 2000, (b) capital expenditr:re on all mining machinery, plant.and equipment described in. : 'Clause CXii) of this Agreement whether imported or purchased in Sierra Leone, as well as ail capital expenditure on vehicles,-meciical equipment, computers and ancillary equipmeni, constrrlction and-expansion'sn residentiai and non-resjd.ential-buildings, co-nstruction-aqq elpaqrjon-.qf ciinjcp and aii -. = _ _ _:__- r::._i._-.:. _--,;-- other equipment ancillary to,the ciperations of lhe Companies as well as ihe cost-of acquiring orrprocuring the tiansfer of the Mining Lease in respect of the Mining Lease Area. : : '- ', (c) Capital expenditure on haul roads, environmental bunds, creek d.iversions ancir - 'r l other similar : ''' "-=. asseis. ' '.;- 13 tfr t t fti l/ \\ \ \\ \ 'll \ \ \/---=l \ rt\l \ \,JV V E f.9-ry9=ftr=l:T:1T*.,-F:==..TE4ffir+qrerpressly assumed by'the Coriipanies pursuant to the provisions of ehe N4ining Lease Agreement; (c) The pavment of Payroll Taxes at the applicable rate; (d) Pa1.::nent of Immigration Fees at the applicable iate; and (e) N{inor Ta>les, which includes all taxes that are generally appiicable to all corporations on a non-di.scretionary, non-ciiscriminatory basis, and which do not exceed: (1) The equivalent of US$25, 000 in any financial year; and ' Q) ' The equivalent of US$ 100, 000 over any five year period. Provided that: .(i) In the case of Payroll Taxes, tire "applicable rate" shali not exceeci Le 500, 000 - (or its US Dqliar equivalent) per amurn per employee for employees who are ECOWASI-n4tionais and L-e 3,000,000 (or its US Dsllar equivalent) per arurum per einployee in the case of employees who are not ECOWAS nationais for the .(ii) first 5 years of this agreement, and In the case of-Immigration Fees (consisting of Residence Permit, Work Permit and lr4uitiple EntrT Visa), the "applicable rate" shall not exceed US$l50 (or its Leones equivalent) per annum per employee for employees who are ECOWAS . nationaLs anC US$1,000 (or its Leones equivalent) per annum per employee for (iii) empiol'ees r.v|16 not ECOWAS nationals. ' if nonr,ithstanding these provisions the Companies or its shareholders, as a result of eitirer the activities of the Companies or as the result of distributions.or the other pavn:ents made by the Companies to its shareholders: or either of tire* becomes liable to pay any taxes pursuant to the laws of Sierra Leone, except fbr those expressly assumed by the Companies pursuant to the Mining Lease Agreemeng then the GOSL ra,'i11, upon demand, hold the Companies harmless in ' respect of an1' payment of taxes made by the Companies, including for this purpcse any penalties, ffnes or interest paid or payable by it in connection thereu'iih, whethei for late payment or otherwise. (iv) The Companies may, as an alternative to'exercising their.fights under paragraph (iii) abgv-e: o_thenvi:: p?419=!e=4,.f1_Ag33lll"yisi_on= ,91?n_P 9ffsgt lly_sum _ against any mo4j:es tlrgn or subs-equentiy due to the -GOSL, undgr the provisions of this:trfining tease A greement. .\ (n) Rerratriation.4okling end Introduction of Funds The Companies and tireir nominated contractori shall have the righq during ihe term of ihis Asreen-teilt, to freely receive, hol,C in banks of their own choice, wherever located, 17 ' \ \ \(/" \\ -,{o, r:!T,TT:*jTl:T:.:el:-T:.:-r::5.q::=ii:f -. :1:-::*:-i**-.lll'J' .::::.:r:::l:i:=:i.T.11",{T11:.:::-=i-]:-E-=:3:t,=:':.:..:-lffT:;-I:?:rc'TtITi:j:':,:T:.T1:i-!=l:ii::lTi".3ij.ilT- i!: aliC diste-se of in t"rtv co'r.iliiii' :,i1 ie r eiLr,e s. i:ceipts anC .orlier forcilli c,.ii.i-e nc'v, fiuids held b1'then under or in ccr,;iectiol ivi:a thelr miniire opelaiions. (i) Ti:e Conpalies al,J. ih:ir noniiiaied conrracror:s shall ira',,e ihe rigirt, during the ienl of tiris Asiee:neni. io iroid foieign cuirency in designated foreign currency (ii) baiir accoun:s in theii nanes in Sielra Leone. The Cornpanies ard ii:eir norninated contractors shail be exempt from any commission, chaige or leq' payable on tiie introduction or investment of funcis fiora a foreign source into Sierra Leone. (o) Road Lser Cherses The Companies and theii nominated conilactors shall be exempt from road users' fue1 1ev,v applicabie io useis senerally in respecl of diesel consumed by their equipment provided iirese are restricteci to mining operations and infrastructure (p) Gnod ahd Sen'ices Te:; (GST) The Cor::pmiesand their ncminaled conuactors shall be exempt froml good.s and services .raxes as provicieci rbf-in tire GooCs ani Services Act 2009 (q) Port. Harbour Dues or Free end Stevedoring Charses - (i) Notrvithstanding the provision of the various Siena Leone Ports Authoritv fqT pA\ Antc tl.- 1-^--^-;-..1.^11 Lo o--*-+ €-^- -11 1-^-L-.-- ..-'/ nuts, the Companies shail be exempt -^* \rLr from all port, harbour, loaCing and unloading dues or fees and stevedoring cirarges that may be levied. by the SLPA in relation to tire operation of the Company built and operated Ports/Jetties (w'hether at Lungi and/or Pepel or elsewhere in Sien'a Leone) and the Offshore Loading facilitl', incluCing clleraiions of the Companies, with the excepiion of the foilouing: (1) niiotug" Fees or Charges for movernents of vessels wirhin the SLpA onuolled navi gati on treas. ()\ Qafofrz o-J T-.*^ri^- i \-./ .:arcf and Inspec:ion Fees (3) Charges levied at the Ports owned and operated by the SLPA for loading anC Unioading Cargo or Goods in the normal course of their business (ii) operations. The liability of the Ccn:ipanies under the provisions of -this Clause is in substitution for and not in addition to .any iiability rhar might otherwise be ii:rposed, eitirer herelo bsfore or hereafter, on its can'ieri-br asenrs and whether b_v the Sieria Leone-Pods Authority or any othgl prrblic_bod;t-ia iegpe-gt.a_f thE= ,.E: --aforeinentionedrnaners. :' - - -L- -: -:--^ ---' - (ili) in the-ev'en, ift"r.iipi o, ony other responsible;"bii. bodv faiis to provide any of the Jervi.ces for which tire Cornpanies and their nominateci contractors arc required to pay port charges, harbour dues and any other arnounts pursuant to this ,_ Clause, inciuding, but not lirnited to, p-ositionine and lighting of buoys, and the_- Companies and their noininaied contractors thereby incurs aril' cost or expenses in providing or obtaining such services, the Companies and their nominated contractors shall be entitled lo cieiuct such cost and expenses fi'om any amounrs ,A 18 An \ Ptu r I'l \\ \ :.- \t ;:_ tfiat aie oiher,r'ise pa.,,al.le ro iite Sieira L--otle Fc;-i "{;rrhc:'lq'oi an1'oiirer pubiic ood,r'purs'.ialt to this Clause Rovlln' (r) Commu:iln' Develonnient Fund and AdrJition*l t--iar,mcnt-q TIO shall rnake tax ded.uctibie pa-vments to the Community Development Fund as provided for under Sectiori 139 (4) of the lv{MA 2009. (s) Environrnental and Social Protection and Imnact Nlitigation TIO shali make tax deductible payments, quarterly in alrears, to an Environmental and Social Protection and Iinpact Mitigation Fund in the amount of at least 0.1% (one-tenth of one percent) of gloss sales in United States Dollars or its Leone equivalent. The fund shall be managed and controlled by the management of the Cornpany and shall be applied . as necessary for the puposes set out in Article 17 of fie Mining Lease Agreement. (t) Environmentrl a{rd Socirl Proteetion and Imnact Miiigation I lle uompailes ries or or rheir thell nominated nomrnated conractors conffactors wiii w11- oniy be required to place all or parr or ' an insurance policy with a local insurance company to the extent that the local insurance '.companies are able to'meet the credit ratings or other requirements tirat riray be required. by the providers of finance to the Companies or nominated contractors and/or where such insurance can be supplied on a competitive basis in terms of price, qualif and other (u) delivery terrns. ) Nafional Soci:rl Securifv and Insurance Trust - NA-SSIT t, I (i) i n respect of their expatriate empl.oyees ia'orking in Sien'a Leone, the Companies or their nominated coniractors are not required to make the required company (ii) Expatiate empiovees working Sierra Leone and employed by the Companies or their nominated contractors are not required to make the required empioyee contibutions to the Nationai Social-Secuity and Insurance Trust (v) Joint Review __ _, ^-, The Ministry of Finance and Economic Deveiopment, folalr-ci on behqli-of ie GOSL 4nd -,".4-_i --=-- --- :-. -; -- ---:- - -- the Companies will co4dueda joiirl iwlqw of the fiscaJpac-.lgge contaii=rjd-inlihii Anicle' (Fiscal) of rhis=A.gpe,menl every,five (5) years frorn-the date ofratification by Parliament of this Agreement or in the event, during intervening periods prior to the expiry of &e said five (5) ,vears, the maiket conditions change so significantly as to necessitate a l- revierv withour which the normal operations of the Companies, inciuding their cash flow, andlor ionger-term viabiiity, may be materially adverseiy affected. .Any resuiiing change . fiom such joint review will ieqr-rire tile mutual consent of the GOSL anci the Companies. i LJ 111 at,l {t tl M. \\r.-=- \l AIr.TICLE: ?0. CO-\'i-\;Ur\iT'r' i} ir,'Fi-CPlif ,\.T The Ccmpan-v talles iis social responsibiiirl, ton'ards local comn,;ni,.ies sericush'and itas alreadi; been verlr active in con:nunilir -i--1'g'rnrnent in ciriefd.on:s and disriicrs in .ryi:ich !.\.a!./1u1c.'uri opeittions are i.rr progress by the orovision of schola::sliips, ioads anC pipe "r'.ir'ritri^t piogiams .with borne water supply ar.iongst others. These n'ill be continued tlie host comnuni.ties being fuiiy involved iri accordance w-ith section 139(a) of tiLe Act. ARTICLE: 21. HEALTH Ai{D SAFETY - . - 4) The Company places a premium on the heaith and safety of its employees and that of the public and shall comply n'ith all health and safety laws, regulations and standards that are generallJ'_applicable in Siena Leone. b) .The Compan."- shall ensure the healih and safefv of all empioyees in ali its operations; : should the event arise when employees have to tatrre precautions under Sectioni 142 and ' 143(b), it should b-edone wrth due regard to tireir obligations as employees. A.RTICLE: 22. II{TERPRETATION Al{D ARBITRATIOI.\I * The Government and tire Company shali in good faith endeavour to reach an arnicable settlement of any dispute which malr arise betra'een the parties in respect of the ---f^- perr{rrnance, enforcement, execution and intemretaiion of the terms of this Agrebment. T- tl.- arra-t +L^ ^ r.1r tu€ €vent the -^*,'^- i parties are unable to reach an amicable settiement such dispute shall be settied in accordance r.r.ith procedures available in Sierra Leone for the settlement of such disputes provided that at the instance of either partv, any such dispute may be subrnitted io arbitration for senlement in accordance with the ruies of procedures for arbiuaticn of ' the +United Nations Commission of Internationai Trad.e Laiv or in accordance rvith anv ' international machinery for settlement of investnent disputes a,eieed betrveen the parties. ' For avoidance of doubt, the Governn'rent hereby r,vaives its right of sovereign immunity in ?pcna^l l. }JLW of the arbiiration process and the eCorcenent of t]re arbitrator's au'ard. ' ARTICLE: 23. s. FORCE 't ^ vr!v! I\IAJEUREti^"Au!vlw a) A failure or delay in performance by either the Company or the Government to fulfil any -:--<'. -.1-- -' obligation under this .\greement shalf be excuSed-if -and1o=ilie-extint fi{ar'iueir non-': -- _-.-:- ..:.. , , performanc:e.lq=aau!.gd -b_1 Foree Majeui:e. The period of such delay oi- failure, together ' ' with such period as'may be necessary for the restoration of any damage done durind .. suqh Celay shall be added io the perioCs fixed in the ten:r of this Agrsement and the Licenses issueC under rhe A*ereemenr. ':' 20 .\ \i\ \'\ r \ ;o: t :r):4H:T;-::::i: : - ::::t::. ::::t-.-.a L.) Foice lviajeLrre includcs u'ai (cle':liir'J or ,-lndeciar'"i). ail acl of C<.',1. ir:-r*-:'rl';-:::. ij,::. civil con.;:,o;:o;. ilcli v,':r e . i;r'e. f.t-r;' j. ...,.:;^,i:-:. e"':,tlus:ol.-- e:::i,--i::.::. c::-^1.-.;_... biockacie. qr.iaiantine, naturai disasters. ie:iclist acli'"ities cr cthei irosiiii:ies. ARTICLE: 24, TERN'IINATIOi{ a) Tire Ccmpany sha1l have the right to tenninate tiris Agreenient at any time bv giving not less than 180 da.vs to ihe Goverrlrnent to tirat effect. - b) The GOSL ma), suspend. or terminate th: Agreemenr ir accordarce u.ith Section:l ald 53"of the Mines and Minerals Act, 2009. ARTICLE: 25. GOVERI{ING LAw ' This Agreement shallrbe govemed:by the Lau's of tne R-epublic of Sierra Leole and such rules of inteinationallaw ai nay be anpiicable. ARTICTE:26. REVIEW The parties agree and acknowledge that this Agreement w'as made on tlre basis of the lau's and conciitions prevailin-e at the ciate of the conclusion of negotiation of this Agreement. Subsequently n'here a party considers that there is a significalt change i afrecting the economic balance of the Agreement the pariy* afrected heieby shall notili,' 'the otirer pacy in rvriting of the clairned change and request renegotiaiion and tire rarties shell thereupon renegotiate , .. ARTICLE : 27 . AMENDIVIENIT In the event the Government and the Company rnuf,.rally agree to a4rend any- cf tire provisions of the Agreem-nt, such amendment ma,v be effected by agreeinent beiween the pacies that is evidenceC in writing. Any such arnendment shali-rake efiect x'ithout further ratification by Parliament except to the extent that it may be-inconsistenr rl'irh any law in force. .,1:: ' .:+: -.- ARTICTE: 28. GGYTRNMENT PROTECTION A}{D AssIsiaxbn Govemment dnd her agencies sirall supporl -&is Agreernent and shall take no action which prevents or impecies the due exercise and perfoimance of rights and ob,iigarions of the Company and w'ili also rencier ali reasonable assistance to enable rile Compan.v accompiish its objectives in the best and most efficient nlanner and enjoy its righis and privileges under this A-ereement. Tire Governrneni shali plocure ail relevanr puclic bodies \ \\' ':7 ': I .'."-HT*::tll=-::"-- {*-rFr:}y;5:-::-T,.ai:l i,-' ::.:1..1 s;.:l-. i::r, :.i; ac iol ihrs pulpcs3. AR.TI CL E : 2 9 . G O \T iL \--il'iE N T \l'Aiifi*A.N T i E S The Govenureil hereby repiesents and r','arrants to 'ihe Company that: a) No part of the interest of tiie Cornpaii;; or its subsidiaries shall be expropriated. by tire Govemment without proinrt pa,vment of fair and reasonabie cornpensation in such antount or amo-.mts as shall be determined by agreement in accordance with the Constituticn of Sien'a Leone; b) The GOSL shali have tire right to acquire equitv of the company in accord.ance with Sectipn 102 of the Mines and Minerais Act, 2009. : c) Shareholders of the Company or i'ts subsidiaries shail not be compeiled by law to cede.any interest that'they may have in the sapital of the company to any other.pelSb-n whether w'holly or in pa;t without aoequate compensation; d) During the existence of the N4ining Lease and/or this Agreement, no person has, aud/or shall have any mineral rights (as defined in the Act), rights or interests in respect of any minerals located over, under or upon the \4ining Lease Area or to any improvements tirereto and seaeraiiy agrees to indernnify the Company against any and all ioss or damage arising out of or in connection with any right or claim inconsistent witir aly such lvananties e) The' Companv shali peaceabiy' eryo]' anci uirhoui irtemrpiion by rhe Govemment or by an,v otirer person oi Dersons clairning ol under,-tlie 'i Govemment or in trust for it, have tire right during the term of the Mining* , Lease and/or this Agreement to expiore for and mine iron ore and associated ' minerals and that no oiirer person or entiry shail have the ri_eht to engage in an-v prospecting, expioration or mining operations, or any other activities on, above or below the surface, in tire Mining Lease A:ea durinq the tenn of this Mining Lease. : :----' ri-,.-:. ARTICLE: 30. IYOTICES - --- -All 'orders,'apf_ovals, notibei and comniuni;ationl==of-any kind-belw-eei the': :.-: Gol:er!.irenlgr a:ry other representatir;e of Government and the Company shall be in v'riting and the contracting panies shali not under any circumstances be pennitt'ed to allege or to reply upon any cral older, approvai. declaration, notice or communication from the Government to tire Cornpany any such written notice, eic_- from the Government to tire Company' shail be deiivered to ihe represeniaiiv-e of the Company ir F:eero,.in. 1) r\ \ i'y,V -b) .-^il nc:ices ani coi:inutiicaiions froil tire Companl,' io the Governmelt unless crihen,,,ise recr-rilec b), jaw oi bv the shall, rernis of irrir rgr..*ni ol urri.r, tt . Goverrulen'u snail direct by wrinen instructions to ihe Company be mailed or deiiveieC io rhe Director. For-and onbehplf o,f 1he Gov.ernmeat of the Republic of Sisra Leone xu ",..:ffik, e4*h Titlo' lY \rL'l/t& r rLIw!........6..-...,,:..., *: rF r.: Witness: n& .: :t . - : ,::- ..: f Afijcan Minerais Limited rl * h*-A*f,. aaie N/ .!-) I /t) \ v/ \ \ .\-- SCI{EDULE 1 *4 I aA !ii I \\ \ \--- 1: \{INING LEASE AR.EA SCIf;DULE Beiow is a ciescriprion of rhe bouncaries oithe Tonkoliri tiining Lease Area wirich constiiutes part of tiris Agreement. Ajl that piece or parcel of land situate lying or beingwithin (29N Grid Zone Ferengbeva Area), in the n;ung Chiefdom in the Koinadugu-District. Kalansongoia, Samaia Bendugu and Kafe in the Tonkolili District, Norrhern Province in rhe Republic of Siena l-eone, Sin]iru Chiefdoms as follows: . whose dimensions are-defined or bounded Beacon ID UTM X UTM Y ZONIE DATLuw A(i) 209995.6 1012091.0 29 WGS84 _ : _-_ B(2) 214991.0 rcn094.0 29 WGS84 c(3) 219989.1 1012096.0 29 WGS84 D(4) 219991.r 1004083.0 29 WGS84 ^i-rn I r - 1004096.0 /9 WGS84 E(s) 16Lyr./ F(6) 2t3297.7 998s96.2 29 $/GS84 G(7) 21239r.7 997A96.2 ,/-9 WGS84 H(8) 2A9491.7 - 990096.3 29 -wGS84 i(e) 198991.8 990096.3 29 WGS84 a _: 1.003096.0- = _.-.8 .:] ,-'-ryGS8"4' :- The dimension as given in table above enclosing an appioximate area of 2?i Square Kilometres Fniil-nontNl :::EI0\liN 'ionERgry \\\<- :< ..: ryry c /-T-il.;-.i-r r: 1 { I'iiliiNG LICEI-CE NO. F{L 0LA/i0 aa r! lJ ' \r , L-(: i'\ \\ \ \\_-'\ .. \.,'.1 I ; { j r.ijE;:L i :3 :,'ii\I}.G LICtr\CE NO. T,iL LTiBiiO 21 .A ,) i" :,'i ir . \"\ \, it i '\ \ <-'= '/ '-\ l- \\\ ''i SCHIDLLE 3 SCIIEILLE OF I'ILNING i\tACi{i}EF.Y, F-A-IL AND POF.T, pL-s.\:T. EQLTIp.r\{E}'T, Al{t CONSL-IftBLES ELIGIEI,E TO B.{PCRTATIOI\ FF.EE OF }UTIES d\D i-l 1. A11 machinery, plani housing, buildings and equiprnent useful to ancj used by the , Companies in clearing lanC, removing minerals frorn land and transponing, separaihg, =.. . processing, handiing a-dd packaging such n:inerals for saie, including, wiihout limttatiJn . - t .- "?t-tsn-u_ction mare:ials fcr ::i-ining and prccessng. d:eCges, barges tow boats, puooi, .-'-pipin$, screens, concentrating and separating equioment, iocoraotives, locomotiyei .' '' - eraine( -"ll wagors and rctli:rg srock,;ailvray sig:ralir-: eqr_l:pmenq raiiu'ay -: sleepers. r.it . ' , _tt-.5i:_ Penn{neg! *lhy, power generating and disiributing-equipmenf cra.nes, lories. roa,l, ' buijdilg equpmenl, four-',arheel drive vehicles usec in and anc;1ia7:o . -. rni:hg ope;atio;.,-., . packaging facjlities iogether with accessories, slare, parts, fueis, oils, . lubrican-s. : - :. 2. . : ''' tt . ,:.. -.,. : , ' l. Cther equipinent such as suiveying equipmenr, laboraiory equipment, compurers, . : '' ptn:ers, ploiiers, sofva:e. connunicattons equi:i:ren; a:d s;m.:;a: ecurnir.e;it uied 'cul . . '2 Prei:h'-r's2feci finures. nci inclucing buiidi:rg o: buiicing nate;ials, as well as speoial ''l . F ' pfTose vehicles such. as duriperu and shltl]e trucks for use,*,*totnt or d:edgiqg; . _..;--, :, F , g \ b. I Machinery consisting of a combination of moving pat's and n:echanical elemenis, E which may be put in mction by physicai or mechanical force- .: : ' E , - : ' -' .-- ..- r..a 3. For-ne ciura:ion oithis Areenent- the Ccnpa:ri:s a;d'*reirnon:iru."o ccn*Jacto:s saati . "-.':. : li haveth.qrigh!toimponinioSien.aLeonethewho]ecfthet:equ:ien:enisfoif.:e1a::d' t-- . -. I I . , .: ' i;bi:cairs:.cjrher Lhan perrci a::d kerosene, 3om n:cir suppligp_iid'on such rer:rs_a;ci _ t. k --=-'- naypurcnase fire:;n-Sierra i eone w-rere sucr fr.iel car-bs-zuppiieci cr-a comp*.it:v:'casis = ; - - _.r -;: ierflrs oll_r=lger qtall_ry ar-i oihe:-riei:_verv re::ns. tr ---:-.--- - --- - - -- E F t- t.-: E )/ t'l t,,| /i I i! t'1.'