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 XX Xxxxx Business Trust and Wastech, Inc.
WHEREAS, pursuant to a certain Settlement Agreement among XX Xxxxx 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)
XX Xxxxx 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)
XX Xxxxx 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 XX Xxxxx Business Trust.
3)
If XX Xxxxx 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 XX Xxxxx 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 XX Xxxxx 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 XX Xxxxx 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 XX Xxxxx Business Trust.
Executed this 22nd day of December 2006.
/s/ Xxxxxxx Xxxxxx
/s/ Xxxxxxx X. Xxxxxx
______________________________
______________________________
XX Xxxxx Business Trust
By: Xxxxxxx X. Xxxxxx
By: Xxxxxxx X. Xxxxxx
Its: Trustee
Its: Chief Executive Officer
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