Common use of FOREIGN EXCHANGE CONTROL Clause in Contracts

FOREIGN EXCHANGE CONTROL. ‌ (a) The Contractor shall, during the term of this Agreement, have the right: (i) to enter into loan agreements outside Tanzania for the purpose of financing Petroleum Operation hereunder but no payments of principal or interest in respect thereof shall be made from any source in Tanzania other than the Bank accounts referred to in sub-paragraph (ii); (ii) to open and maintain Foreign Currency Accounts with a Bank which is an authorized dealer within Tanzania and freely dispose of the sums deposited therein without any restriction provided the said accounts are credited only with sums deposited in foreign currency or with the proceeds of the sale of Foreign currency being credits relating to or derived from Petroleum Operations hereunder; (iii) subject to any conditions or requirements imposed by the Bank of Tanzania, to open and maintain bank accounts, in addition to those described in sub-paragraph (a) (ii) above, in Tanzania denominated in Tanzanian currency and freely dispose of the sum deposited therein within Tanzania provided the said accounts are credited only with Tanzanian currency arising from proper transactions within Tanzania relating to Petroleum Operations hereunder; (iv) to open and keep bank accounts in any foreign currency outside Tanzania which may be credited without restriction and freely dispose of any sums deposited therein without restriction and without any obligation to convert into Tanzanian currency any part of the said amounts save that such accounts shall not be credited with the proceeds of the sale of any Tanzanian currency without the consent of the Bank of Tanzania; (v) to purchase Tanzanian currency, through an authorised dealer, without discrimination, at the rate of exchange generally, applicable. (b) For the purpose of this Article “Expatriate Employee” means any employee not normally resident in Tanzania who is engaged under contract which provides for the payment of passages to and from Tanzania.

FOREIGN EXCHANGE CONTROL. ‌ (a) The Contractor Company shall, during the term of this Agreement, have the right: (i) to enter into loan agreements outside Tanzania for the purpose of financing Petroleum Operation hereunder but no payments of principal or interest in respect thereof shall be made from any source in Tanzania other than the Bank accounts referred to in sub-paragraph (ii); (ii) to open and maintain Foreign Currency Accounts with a Bank which is an authorized dealer within Tanzania and freely dispose of the sums deposited therein without any restriction provided the said accounts are credited only with sums deposited in foreign currency or with the proceeds of the sale of Foreign currency being credits relating to or derived from Petroleum Operations hereunder; (iii) subject to any conditions or requirements imposed by the Bank of Tanzania, to open and maintain bank accounts, in addition to those described in sub-paragraph (a) (iia)(ii) above, in Tanzania denominated in Tanzanian currency and freely dispose of the sum deposited therein within Tanzania provided the said accounts are credited only with Tanzanian currency arising from proper transactions within Tanzania relating to Petroleum Operations hereunder; (iv) to open and keep bank accounts in any foreign currency outside Tanzania which may be credited without restriction and freely dispose of any sums deposited therein without restriction and without any obligation to convert into Tanzanian currency any part of the said amounts save that such accounts shall not be credited with the proceeds of the sale of any Tanzanian currency without the consent of the Bank of Tanzania; (v) to purchase Tanzanian currency, through an authorised dealer, without discrimination, at the rate of exchange generally, applicable. (bi) Expatriate Employees of the Company and its contractors engaged in Petroleum Operations hereunder shall be entitled to: (A) export freely from Tanzania, during each year of their employment their savings on salaries paid in Ta nzania for an amount not exceeding one third of the gross salary for that year and freely to export from Tanzania upon termination of their contract in Tanzania any balance of such savings as well as any sums paid to them from any provident or the like fund on termination of their employment in Tanzania. (B) export freely from Tanzania, upon termination of their employment in Tanzania their personal property previously imported into Tanzania or purchased with their savings on salaries in Tanzania. (ii) Where the Company, by notice in writing to the Commissioner of Income Tax, has guaranteed the full and proper discharge by an Expatriate Employee engaged in Petroleum Operations of his liability to income tax under the laws of Tanzania, including the provis ions of Government Notice Number 411 published on 15 August 1986, the employee shall be entitled to receive freely the whole or any part of his remuneration in the country in which he is normally resident. (c) For the purpose of this Article “Expatriate Employee” means any employee not normally resident in Tanzania who is engaged under contract which provides for the payment of passages to and from Tanzania.