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not to reprocess such fuel elements, the Lessor shall receive the fuel elements for storage or other appropriate disposition. The Lessor shall receive such fuel elements for reprocessing except as provided in Article IV A (2) (b), or make appropriate financial settlement with the Lessee; but if the Lessor determines not to accept such fuel elements for reprocessing at its own facilities, other facilities acceptable to the Lessor being available, the Lessee, at its own expense, shall arrange for reprocessing of such fuel elements at such other facilities, into plutonium metal and uranium hexafluoride meeting Lessor's specifications or such other form as may be agreed upon. Any contractor of the Lessee forwarding or accepting for reprocessing such fuel elements shall be subject to such terms, charges and conditions, including licenses necessary to receive such material and to perform such work in the United States of America as required of such contractor by the Lessor.

A. For the lease of enriched uranium contained in fuel elements prepared by the Contractor, the Lessee shall pay to the Lessor, in United States currency, a sum equal to the charges set forth herein at the time or times indicated:

(1) A use charge for the enriched uranium leased hereunder and contained in each fuel element prepared by the Contractor at the rate of four per cent (4%) per annum of the value of the enriched uranium computed on the basis of the enrichment at the time of transfer, beginning with the date each fuel element is transferred to the Lessee and, except as provided in A (4) of this Article, in the case of material accepted by the Lessor for reprocessing, ending upon the date each such fuel element has been reprocessed by the Lessor into plutonium metal and uranium hexafluoride, meeting Lessor's specifications or such other form as may be agreed upon, or upon the expiration of that period which the Lessor determines to be normal period for such reprocessing, whichever is earlier, or, in the case of returned fuel elements to be reprocessed at facilities other than the Lessor's, upon the date each such fuel element is delivered to such facility for reprocessing.

(2) A consumption and depletion charge equivalent to the difference between

(a) the value of the enriched uranium initially contained in each fuel element leased hereunder as determined from its quantity and enrichment in the isotope U-235, and

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