COAL LEASE
Made
and executed as of July 12, 2007, by and between
CHARLES D. BECKHAM, of Baldwin, Pennsylvania,
and TODD E. BECKHAM, of Milton, Massachusetts
(“Lessors”), and One World Energy
Corporation, a Nevada corporation, having offices in
Henderson, Nevada (“Lessee”).
WHEREAS,
Lessors are the owners of certain pieces, parcels
or tracts of land (“the premises”), containing
approximately 180 acres, located in Monongahela Township,
Greene County, Pennsylvania, more fully described on Exhibit A
attached hereto and made part hereof; and
WHEREAS,
Lessors desire to lease and demise the premises to Lessee, and
Lessee desires to take and hire same from Lessors, for the
purpose of mining and removing coal of the Washington,
Waynesburg A and Waynesburg B seams or veins of coal by the
strip mining method.
NOW, THIS COAL LEASE (“this Lease”),
WITNESSETH, that Lessors and Lessee hereby covenant and
agree as follows:
Article I
Grant - Term
1.01. Lessors
hereby lease and demise unto Lessee, and Lessee hereby takes
and hires from Lessors, for the sole purpose of mining and
removing coal of the Washington, Waynesburg A and Waynesburg B
seams or veins of coal by the strip mining method, the
premises, being those certain pieces, parcels or tracts of
land located in Monongahela Township, Greene County,
Pennsylvania, more particularly described on Exhibit A
attached hereto and made part hereof.
1.02. This
Lease shall commence on the date first above written, and,
unless sooner terminated pursuant to any provision hereof,
shall remain in force until the exhaustion of all coal of the
Washington, Waynesburg A and Waynesburg B seams or veins
underlying the premises which are commercially mineable by the
strip mining method.
Article II
Production Royalties
2.01. As
royalty for the coal mined and produced hereunder, Lessee
shall pay unto Lessors the sum equal to the greater of (i) ten
percent (10%) of the selling price of the coal, fob pit,
received by Lessee in an arms’ length sale of the coal,
or (ii) two dollars and ten cents ($2.10) per net ton of coal
mined and produced. Provided, however, that if
Lessee disposes of the coal other than in an arms’
length sale, i.e., by selling it to a related person
or entity, the royalty shall be the sum equal to the greater
of (i) ten percent (10%) of the market value of the coal, fob
pit ( i.e., the price, fob pit, for which the coal
would be sold between unrelated parties in the location of the
premises, or (ii) two dollars and ten cents ($2.10) per net
ton of coal mined and
produced. 2.02. Lessee
shall pay all production royalties on or before the 25
th day
of the calendar month following the month in which the coal
for which payment is made is produced. Payment
shall be made by check directed to Lessors at the address set
forth in Paragraph 8.03.
2.03. In
order that Lessors may determine that they have been paid all
production royalties to which they are entitled under the
terms hereof, Lessee agrees to keep full and accurate records,
including books of account, weigh bills and invoices to
purchasers of coal mined and produced hereunder, which fully
disclose the tonnage of coal mined and produced, and the
purchase price received by Lessee therefor. Such
records shall be available for inspection by Lessors or
Lessors’ duly authorized agent during regular business
hours upon 7 days’ notice from Lessors that they desire
to make such an inspection.
Article III
Advance and Minimum Royalties
3.01. Upon
the signing of this Lease, Lessee shall pay unto Lessor one
thousand restricted shares of Inform Worldwide Holdings
Inc.
3.02. Beginning
on the first day of July 11, 2009, and thereafter on the first
day of each and every calendar month thereafter so long as
this Lease remains in effect, Lessee shall pay unto Lessors a
monthly minimum royalty in the amount of five hundred dollars
($500.00).
3.03. Lessee
shall be entitled to a credit against the production royalties
due Lessors pursuant to Paragraph 2.01 for the advance royalty
paid pursuant to Paragraph 3.01 and all minimum royalties
previously paid pursuant to Paragraph 3.02. When
Lessee establishes production, and a production royalty is due
Lessors pursuant to Paragraph 2.01, Lessee shall be entitled
to take as a credit against payment of the production royalty
all sums previously paid and accumulated as set forth in the
preceding sentence. In the event the amount of the
production royalty does not fully absorb all sums previously
paid and accumulated, Lessee may carry forward any unused
credit for advance and minimum royalties to be applied on the
next date at which a production royalty is
due. Provided, however, that Lessee shall
nevertheless be required to make the monthly minimum royalty
payment provided in Paragraph 3.02 on the first day of each
and every subsequent calendar month regardless of whether
Lessee has to its credit sums previously paid and accumulated;
it being the intent of this sentence that, beginning with the
first day of July 11, 2009, Lessors shall receive a minimum
payment of five hundred dollars ($500.00) per month so long as
this Lease remains in effect.
Article IV
Permitting Requirements - Compliance with Law
4.01. Lessee
shall be responsible, at its sole cost and expense, to
a
