COAL LEASE
Made
and executed as of July 11, 2007, by and between
Ronald A. Mancabelli, of and
Margery S. Mancabelli, of 205 Stewart Street,
Saltsburg, PA 15681 (“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 86.64 acres in two contiguous parcels, located
in Conemaugh Township, Indiana 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 Pittsburgh and
Redstone 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 Pittsburgh, and Redstone seams or veins
of coal by the strip mining method, the premises, being those
certain pieces, parcels or tracts of land located in in
Conemaugh Township, Indiana County, , 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 for three years or until the announced
exhaustion of all coal of the Pittsburgh, and Redstone 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 ($2.00) 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 5 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 Lessee shall pay unto Lessors an advance
royalty in the amount of three thousand dollars, which Lessee
shall pay unto Lessors within sixty days from the signing of
this contract, and 2500 restricted shares of Inform Worldwide
Holdings.
3.02. Beginning
on July 11, 2008, 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 twenty five dollars
($25.00).
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 July
11, 2008, Lessors shall receive a minimum payment of twenty
five dollars ($25.00) 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 apply
for and procure all licenses and permits required by the
United States of America, the Commonwealth of Pennsylvania,
and any local governmental unit, in conn
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