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transferred to the Lessee. The value of the enriched uranium recoverable from each fuel element returned to the Lessor's reprocessing plant or an acceptable reprocessing facility, as the case may be, shall be determined in accordance with the schedule of values which was applied to the enriched uranium contained in each such fuel element when it was transferred to the Lessee. Where the enrichment of the uranium contained in the fuel element transferred or recoverable from the fuel element returned falls between two successive enrichments on such schedule, the value for the specific enrichment shall be determined by linear interpolation between them. The value of the plutonium recoverable from fuel elements returned to the Lessor shall be the value as fuel established by the Lessor for such material and in effect at the time each such fuel element containing plutonium is delivered to the Lessor's reprocessing facility or an acceptable facility, as the case may be.

C. The charges hereunder shall be payable as follows:

(1) The use charge shall be paid on an annual basis.

(2) The consumption and depletion charges shall be paid within thirty (30) days after the Lessee's receipt of a bill to be issued upon determination of the quantity of plutonium and the quantity and enrichment of uranium recoverable from returned fuel elements.

(3) The charge due under A (3) hereof shall be payable as provided therein.

(4) The reprocessing charges shall be paid within thirty (30) days after the Lessee's receipt of a bill for such charges from the Lessor.

The Lessee shall indemnify and save harmless the Government of the United States of America and the Lessor against any and all liabilities (including third party liability) for any cause whatsoever arising out of the production, preparation, ownership, lease, or the possession and use of the enriched uranium contained in fuel elements leased hereunder, or other materials produced therein, after transfer of such enriched uranium by the Lessor to the Lessee. After fuel elements are returned to the United States of America and imported as provided in Article III, the provisions of the preceding sentence shall not be applicable to liabilities of the United States of America or the Lessor for any injury, loss, or damage which may occur from the above causes in the United States of America with regard to such fuel elements.