Token Repurchase & Burn

All Mineral Vault tokenized SPVs will distribute a significant portion of profits as standard dividends. However, for a separate portion of profits, the SPV will distribute profits by repurchasing & burning tokens rather than paying standard income. This distribution will happen at the same time and subject to the same notification standards, etc, as the dividend distributions.

The repurchase price of tokens will be determined by Mineral Vault LLC at each distribution, accounting for token market price, value of underlying assets, the projected income, number of tokens in circulation, and other factors. The amount of tokens to be repurchased & burned each month, if any, along with the repurchase price, will be communicated on the monthly dividend declaration date, and tokens will be repurchased pro-rata from all holders of tokens based on the number of tokens they hold as of the dividend record date & time.

The SPV will repurchase & burn all tokens over the course of 15 years.

The purpose of the Token repurchase & burn initiative is twofold:

• Counteract Depletion’s Effect On Token Price: Production from oil & gas wells naturally depletes over time, and will deplete significantly over the 15 year term of the investment. In the absence of a token repurchase & burn program (increasing each outstanding token’s representative ownership share in the SPV over time), the value of the assets held by the SPV would slowly deplete over time, which might negatively impact token price over the life of the token. By repurchasing & burning a portion of the tokens each month, the SPV intends to offset the effects of depletion on token price.

• Term-Limit Investment: The repurchase & burn procedure will eventually terminate all outstanding tokens exactly 15 years after the token offering commencement date, which ensures that the cash flow is not allowed to reach immaterially low levels where administrative costs risk overwhelming property income.