Section 4: The aggregate amount payable by the Company in respect of Sierra

Leone income tax and the Diamond Industry Profit Tax calculated by reference to the profits of any accounting year shall not exceed sixty per centum of the Company's profits for that year. Such profits shall be calculated as for Sierra Leone income tax purposes provided that the deductions to be made in respect of capital allowances (namely initial allowances, annual allowances and balancing allowances or balancing charges) shall be at the rates and on the basis used in the computation of the Company's assessment to income tax in the United Kingdom on the profits for that accounting year but without deducting the Diamond Industry Profit Tax chargeable thereon or the amount to be deducted for capital expenditure under Clause 3 (b) above. Any reduction in the aggregate amount of tax required to give effect to this clause shall be effected primarily by a reduction of Sierra Leone income tax.