Exhibit 10.7
KEC Coal Sales Agreement
AGREEMENT
Subject: Coal Sales Agreement between Eastern Consolidated Energy Inc. and
Kentucky Energy Consultants Inc.
Whereas: This Agreement is hereby entered into this 21st day of July, 2003 by
and between Eastern Consolidated Energy Inc. (ECEI) a Kentucky Corporation
located 0000 Xxxxx Xxxxxx, Xxxxxxxxxxx, XX 000000 and Kentucky Energy
Consultants Inc. (KECI) located at 0000 X. Xxxxxx Xx., Xxxxx Xxxxxxx, XX, the
parties hereby enter into this coal marketing agreement under the following
terms and conditions:
Witnesseth
Whereas: ECEI owns and controls and/or is in the process of acquiring various
coal leases in the central Appalachian region of Eastern Kentucky and Southern
West Virginia for the purpose of mining and producing coal for sale on the
utility, industrial and metallurgical markets and presently has one mine
permitted, bonded and developed ready for coal production located at Xxxxxxxx,
Xxxxxx County, Kentucky.
Whereas: KECI is in the business of marketing coal, locating coal leases
suitable for mining and consulting on development in relation to coal
ventures.
Whereas: ECEI hereby contracts KECI to market and sale all coal produced from
the ECEI mining operations operating and producing coal throughout the central
Appalachian region including but not limited to the ECEI mining operation
located at Warfield, KY.
Whereas: KECI will be responsible for the preparation of all proposal
documents required for acquiring coal sales and contracts along with
assistance of transportation arrangements, contract negotiations and contract
administration.
Whereas: ECEI will be the principal participant on all coal sales agreements.
KECI will serve as the coal sales agent on all agreements related to coal
sales and contracts. All coal sales proposals will be reviewed and agreed to
before any acceptance of such sales are executed.
Whereas: The fees or commissions to be paid to KECI for its services by ECEI
will be equal to five (5%) percent of the gross sales price received by ECEI
for any and all coal sold by ECEI on purchase orders and/or contracts on
either the spot or contract arrangements. Payments made by ECEI to KECI will
be made within three days from the time ECEI receives payment from the coal
purchaser.
Whereas: The term of this agreement will be for a period of five years. Any
contracts in effect at the end of this agreement will remain in effect and
this agreement shall remain in effect as to the existing and continuing
contracts until such time as those contracts are completed or terminated.
Whereas: This Agreement shall remain in effect throughout its term and shall
be binding upon the parties, its successors and assigns.
We hereby affix our signatures this 21st day of July, 2003.
/s/Xxxxx Xxxx /s/Xxxx Xxxxxx
President President
Eastern Consolidated Energy Inc. Kentucky Energy Consultants Inc.
