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(d) all governmental royalties, fees,sales,use,severance, excise,net proceeds of Producer)by an independent third patty tefinery from ores and minerals mined from the Property
<br /> mine,ad valorem taxes and other taxes,payable under applicable state,fedetal or local law,relating on either a provisional or final settlement basis each calendar month.As used herein,"Mont
<br /> hly
<br /> to the production or sale of ores and minerals from the Property. Average Silver Price"means the New York Silver Price as published daily by Handy&Harman
<br /> for a troy ounce of refined silver of a quality that is equal to or less than the quality of refined
<br /> As used herein,"Producer"means the Company of any successor or assign that silver produced from the rites and minerals meeting the standatds applicable to the refinedsilver
<br /> produces Products from the Property for which the Gross Value is to be determined heteunder, averaged for the previous calendar
<br /> month.
<br /> 3. Gross Value and Related Definitions
<br /> If the Handy&Flat man quotation ceases or quotes prices for refined silver of a
<br /> As used herein,"Gross Value"shall have the following meanings: quality that is greater than the quality of refined silver for which the Gross Value is being
<br /> determined hereunder,all such references shall be replaced with references to prices of silver of
<br /> (a) If Producer causes copper,zinc of lead which meets or exceeds generally a comparable quality for immediate delivery in the most nearly comparable established market
<br /> accepted commercial standards for the sale of refined copper,zinc or lead to be produced from selected by Producer as published in Metals Week or a similar publication.
<br /> ores and minerals mined from the Property,then for purposes of determining the payment due
<br /> Seller,the copper,zinc and lead shall be deemed to have been sold at the Monthly Average Copper (c) If Producer causes refined gold which meets or exceeds generally accepted
<br /> Price, Monthly Average Zinc Price and Monthly Average Lead Price, respectively, for the commercial standards for the sale of tefined gold(it being understood that the specifications for
<br /> calendar month immediately previous to the calendar month in which it was refined,and the Gross refined gold published by the London Metal Exchange presently meet such standards) to be
<br /> Value shall be determined by multiplying Copper Production, Zinc Production and bead produced from ores and minerals mined from the Property,then for purposes of determining the
<br /> Production during the calendar month by the respective Monthly Average Price.As used in this payment due Seller,the refined gold shall be deemed to have been sold at the Monthly Average
<br /> Agreement,"Copper Production"."Zinc Production"and"Lead Production"means the quantity Gold Price for the month in which it was refined,and the Gross Value shall be determined by
<br /> of refined copper,zinc or lead,respectively,outturned to Producer's pool account(or to a third multiplying Gold Production during the calendar month by the Monthly Average Gold Price.As
<br /> party account for the benefit of Producer)by an independent third party refinery from ores and used in this Agreement,"Gold Production" means the quantity of refined gold in Uoy ounces
<br /> minerals mined from the Property on either a provisional or final settlement basis each calendar outturned to Producer's pool account(or to a third party account for the benefit of Producer)by
<br /> month.As used herein,"Monthly Average Cropper Price"means the COMFX First Position High an independent third patty refinery from otes and minerals mined from the Property on either a
<br /> Grade price pet pound of copper as published in Metals Week,averaged for the relevant calendar provisional or final settlement basis each calendar month.As used herein,"Monthly Average Gold
<br /> month;"Monthly Avetaee Zinc Price"means the London Metals Exchange Special High Grade EfisL means the London Bullion Market Association A.M.Gold Fix for a troy ounce ofrefined
<br /> Zinc cash settlement price per pound of zinc,as published in Metals Week, averaged for the gold of a quality that is equal to or less than the quality of refined gold produced from the ores and
<br /> relevant calendar month;and"Monthly Avernge Lead Price"means the London Metals Exchange minerals and meeting the standards applicable to the tefined gold for which the Gloss Value is to
<br /> Standard Lead cash settlement price pet pound of lead,as published in Metals Week,averaged be determined hereunder,averaged for the calendarmonth.
<br /> for the relevant calendar month.
<br /> If the London Bullion Market Association A.M.Gold Fix ceases or quotes prices
<br /> If any of the above referenced sotuces ceases to quote prices for copper,zinc or for refined gold of a quality that is greater than the quality of refined gold for which the Gross
<br /> lead of a comparable or greater quality than the quality of the metal for which the Gross Value is Value is being determined hereunder,all such references shall be replaced with references to
<br /> being determined hereunder,the source shall be replaced with references to prices of the relevant prices of gold of a comparable quality for immediate delivery in the most nearly comparable
<br /> metal of a comparable quality for immediate delivety in the most nearly comparable established established market selected by Producer as such prices are published in Metals Week or a similar
<br /> market selected by Producer as such prices are published in Metals Week or a similar publication, publication.
<br /> (b) If Producer causes refined silver which meets or exceeds generally accepted (d) If Producer causes refined or processed Precious Metals,other than refined
<br /> commercial standards for the sale of refined silver(it being understood that the specifications for gold and refined silver,which meet or exceed commercial standards for the sale of such Precious
<br /> refined silver published by Handy&Harman presently meet such standards)to be produced from Metals, or refined or processed metals other than Base Metals or Precious Metals ("Other
<br /> ores and minerals mined from the Properly,then for purposes of determining the payment due Products"),to be produced from ores and minetals mined from the Property,then for purposes of
<br /> Seller,the refined silver shall be deemed to have been sold at the Monthly Average Silver Price determining the Gross Value of such Precious Metals(other than tefined gold and refined silver)
<br /> for the immediately previous calendar month, and the Gross Value shall be determined by or refined or processed Other Products hereunder,the same shall be deemed to have been sold at
<br /> multiplying Silver Production during the calendar month by the Monthly Average Silver Price.As the Monthly Average Metal Price for the same calendar month during which it was produced,and
<br /> used herein,"Silver Production"means the quantity of refined silver in troy ounces outturned to the Gross Value shall be determined by multiplying Metal Production of the same during the
<br /> Producer's pool account(or to a third party account for the benefitof calendar month by the Monthly Average Metal Price for the same. As used herein, "Metal
<br /> Production"means the quantity of such Ptecious Metals(other than refined gold
<br /> _Zg_ -29-
<br /> Exhibit 2 Exhibit 2
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