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The subtraction of 15 tons as provided for at 6(c) and 6(d) above shall not be made for any smelter shipment lot at the end of a run of a milling lot when the ores in the mill circuit have been fully processed and the circuit flushed as provided herein. e. The grade surchazge percentage shall be assessed and paid based upon the average feed grade as determined at (c) above, as follows: Percentage of Modified Net Smelter Returns to COM. INC. Average Ore Grade in Gold Equivalent Ounces 10% 9% 8% 7% 6% 5% .20 or less >.20to.40 > .40 to .60 > .60 to .80 > .80 to .99 > 1.0 or more Grade shall be determined to the second decimal place by rounding .005 or higher up, and .0049 or lower down. f. For the purposes of this Agreement, the components (c) and (d) used !n the formula provided at subsection (d) shall be as follows: c =presumed cost of milling = $30 d =presumed cost of mining - $10 for Dump Ore; and $150 for Mine Run Ore g. Any savings accruing to either party by performing mining or milling at lesser costs shall accrue to them. Any burden to either party of experiencing greater costs of mining or milling shall accrue to them alone, the pazties having agreed to the presumed costs con- tained in this Agreement. h. Unless otherwise agreed by the parties in writing. the presumed cost of mining and the presumed cost of milling shall be as provided in subsection 6(f) for the term hereof. i. The grade surcharge shall be paid within ten (10) days after receipt of the final smelter settlement. 7. Access to Tailings Pond and Certain Water Rights a. MI VIDA is the record owner of certain lands, water vessels and water storage rights as listed on Exhibit C hereto. MI VIDA has stored certain of its water in the mines listed on Exhibit C hereto. 7