After the contract is signed, Liberian Agricultural Corporation will examine the two areas of land and determine which land within those areas will be most suitable for its operations. Liberian Agricultural Corporation will then file requested boundaries within 18 months from the effective date of the contract.
Liberian Agricultural Corporation shall have the right to import all materials, equipment, and supplies free of all customs duties and all other taxes, except for documentary stamp taxes of general application, and shall have the right to export free of all customs duties and all other taxes all products and byproducts resulting from its operations. Liberian Agricultural Corporation can re-export any of the items imported duty-free if not required for its work. The exemption from customs duties does not apply to the importation of foodstuffs or personal effects of employees.
Liberian Agriculture Corporation is granted an income-tax-free period of 15 years from the date on which it commenced planting the initial development area
Net income shall be computed without reference to any income arising from sources outside of Liberia, less all deductions allowed by any applicable Liberian Laws or regulations, including deductions for all costs of production and costs of operation, including interest expense and reasonable allowances for depreciation, amortization and obsolescence, and for other incidental costs and expenses, including costs and expenses of all Accessory Works and Installations.
Starting 15 years after the date at which it begins planting in the concession area, Liberian Agricultural Corporation shall pay income tax, in accordance with the applicable rates, on its net income. For the first 10 years following the 15-year exemption, income tax shall not exceed 25% of net income. After that 10-year period, the maximum tax rate can be renegotiated.
During the term of the contract, if the Government provides more favorable terms to a third party than those granted in this contract, such as lower taxes or additional or more favorable rights, those rights will be given to Liberian Agricultural Corporation, provided that if those more favorable terms were granted in consideration for special or additional benefits given to the Government, Liberian Agricultural Corporation shall have the option to enjoy the more favorable terms by giving equivalent benefits to the Government. The value of the products sold shall be determined by current market prices.
Liberian Agriculture Corporation shall pay to the Government an annual rental at the rate of $ 0.06 (six cents) per acre per year for the areas of the concession it has selected to develop (development areas). Beginning 18 months after the contract comes into force, this rental payment shall be on a total of no less than 50,000 acres per year. Rental payments shall be made throughout the term of this contract or until Liberian Agriculture Corporation relinquishes all or part of the development areas. No rental shall be due for land that has been relinquished.
The foreign officers and employees of Liberian Agricultural Corporation shall be exempt from direct or personal taxes, levies, duties, or national or local fees, except for general property taxes, income taxes, and customs duties if applicable generally to foreign residents of Liberia. Any tax shall be governed by the provisions of any double taxation treaty or agreement between the Government and the home country of the employee.
The Government, upon request of Liberian Agricultural Corporation, will take such measures as may be required to prevent the settling of squatters on or near the areas under development if they impede the company's operations
Utilisation des terres (publique ou privées) à l'extérieur de la zone de concession
Liberian Agricultural Corporation may occupy and use, within or without the concession areas, the surface of lands necessary for its operations, including for accessory works and installations. If the lands are national or public lands outside the concession areas, Liberian Agricultural Corporation must first obtain approval from the Government. Any right of way on national or public lands that is required for transportation or communication lines shall not exceed 220 feet in width, unless the Government provides express approval. At any time, the Corporation may also request additional land outside of the Concession Area.
Any dispute regarding the interpretation of or compliance with the contract shall be submitted to arbitration. In addition, if the Government gives notice regarding termination or forfeiture, Liberian Agricultural Corporation may request arbitration, and the forfeiture or termination shall be stayed pending the arbitration proceedings. Any arbitral decision shall observe the terms and conditions of the contract, shall not alter any aspect of the contract, shall not be retroactive, and shall be in writing and provided to both parties. If the arbitration decision is adverse to Liberian Agricultural Corporation, the company shall receive a reasonable grace period of at least 30 days to correct the default before the Government may take the actions described in the decision. The liability for expenses and cost of arbitration shall be determined by the arbitrators as part of the decision. Unless otherwise determined by the arbitral court, Liberian Agricultural Corporation shall be permitted to carry on its operations while the dispute is in arbitration.
Liberian Agricultural Corporation may assign operations or land under the contract to a controlled corporate subsidiary or multiple subsidiaries created under the laws of Liberia or the United States. Liberian Agricultural Corporation may also assign its operations or land under the contract to any other party or parties with the consent of the Government. Any assignee shall have all the rights, privileges, immunities, and obligations of Liberian Agricultural Corporation with respect to what is assigned.
The contract may be terminated upon: failure of Liberian Agricultural Corporation to develop 10,000 acres within 5 years (and 1 year of notice) or failure to develop 10,000 acres in each of the two concession areas within 10 years (and 1 year of notice); failure of Liberian Agricultural Corporation to pay rent or follow any other covenant in the contract for 6 months after written notice of the default by the Government; or decision and written notice by Liberian Agricultural Corporation to terminate at any time.
Liberian Agricultural Corporation's obligations designated in this contract shall cease to be effective if the company is unable to comply with them due to force majeure. Any compliance deadlines shall be extended for a period of time at least equal to the duration of the force majeure.