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## Note 23- Employees’ Benefit Plan >. 

FirstBank has a defined contribution retirement plan (the Plan) qualified under the provisions of the Puerto Rico Internal Revenue Code Section 1165(e). All employees are eligible to participate in the Plan after one year of service. Under the provisions of the Plan, the Bank contributes a quar- ter of the first 4% of each participant’s compensation. Participants are per- mitted to contribute up to 10% of their annual compensation, limited to $8,000 per year. Additional contributions to the Plan are voluntarily made by the Bank as determined by its Board of Directors. The Bank made a total contribution of $845,227, $699,060 and $625,375 during 2001, 2000 and 1999, respectively, to the Plan. 

## Note 24 - Other Expenses >. 

A detail of other expenses follows: 

<img src='content_image/108748.jpg'>

## Note 25 - Income Taxes >. 

The Corporation is subject to Puerto Rico income tax on its income from all sources. For United States income tax purposes, the Corporation is treated as a foreign corporation. Accordingly, it is generally subject to United States income tax only on its income from sources within the United States or income effectively connected with the conduct of a trade or business within the United States. Any United States income tax paid by the Corporation is creditable, within certain conditions and limitations, as a foreign tax credit against its Puerto Rico tax liability. 

The provision for income taxes was as follows: 

<img src='content_image/108746.jpg'>

Income tax expense applicable to income before provision for income tax differs from the amount computed by applying the Puerto Rico statutory rate of 39% as follows: 

<img src='content_image/108747.jpg'>

