ROYALTY AGREEMENT
Exhibit 10.3
WHEREAS, by Settlement Agreement dated 22nd day of December, 2006, this Royalty Agreement was executed this fifteenth day of December, 2006, by and between ▇▇ ▇▇▇▇▇ Business Trust and Wastech, Inc.
WHEREAS, pursuant to a certain Settlement Agreement among ▇▇ ▇▇▇▇▇ Business Trust and Wastech, Inc. and others, the Trust was conveyed by a deed certain oil and gas rights located in Fayette County, West Virginia, of approximately 5,898.49 acres (the “O&G Rights”).
WHEREAS, as part of the Settlement Agreement the Trust agreed to convey to Wastech, Inc. a right to receive 25% of all proceeds from the production of oil and gas on the O&G Rights.
WHEREAS, this agreement is made to memorialize said interest.
NOW THEREFORE WITNESSETH: That for and consideration of the mutual promises contained herein and for the further consideration of the prior settlement agreement dated December 15, 2006, is hereby agreed as follows:
1)
▇▇ ▇▇▇▇▇ Business Trust is the owner of 5,989.49 acres oil and gas reserves located in Fayette County, West Virginia, having acquired the same pursuant to a Quitclaim Deed from Wastech of West Virginia, Inc. dated of even date herewith.
2)
▇▇ ▇▇▇▇▇ Business Trust hereby grants to Wastech, Inc. a royalty in the O&G Rights equal to 25% of all gross proceeds from production of oil and gas produced from the O&G Rights, which shall be payable promptly after receipt of payment therefor by ▇▇ ▇▇▇▇▇ Business Trust.
3)
If ▇▇ ▇▇▇▇▇ Business Trust desires to sell part or all of the O&G Rights to a third party in an arms-length, bona fide transaction, then ▇▇ ▇▇▇▇▇ Business Trust may sell such
portion of the O&G Rights free and clear of Wastech, Inc.’s royalty interest in the O&G Rights by payment to Wastech, Inc. of 12.5% of the gross sales prices of the O&G Rights; provided, however, that if ▇▇ ▇▇▇▇▇ Business Trust desires to sell any portion of the O&G Rights for a gross sales price of less than $1,000,000, then Wastech, Inc. shall have a right of first refusal to purchase the O&G Rights being sold on the same terms as ▇▇ ▇▇▇▇▇ Business Trust desires to sell the O&G Rights, which right of first refusal must be exercised within thirty days of Wastech, Inc.’s receipt of a notice of a proposed sale from ▇▇ ▇▇▇▇▇ Business Trust.
Executed this 22nd day of December 2006.
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
______________________________
______________________________
▇▇ ▇▇▇▇▇ Business Trust
By: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
By: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Its: Trustee
Its: Chief Executive Officer
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