First Amendment to
Expense Agreement Between
Beta Oil & Gas, Inc. (OIL) and Beta Capital Group, Inc. (CAPITAL)
for the two years ending September 30, 1999
Effective November 1, 1998 Section III of the Agreement is amended as follows:
III. Phone Charges
All office phone bills will be paid by OIL.
Expense Agreement Between
Beta Oil & Gas, Inc. (OIL) and Beta Capital Group, Inc. (CAPITAL)
for the two years ending September 30, 1999
(As presented to the Beta Oil & Gas, Inc., Board of Directors September 10,
1997)
IV. Office lease
2-year lease signed by Beta Oil & Gas, Inc. at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ (required personal guarantees by both
▇▇▇▇▇ and ▇▇▇▇ ▇▇▇▇▇) at $1.35 per square foot.
In exchange for 1) CAPITAL providing to OIL office space, personnel,
all F.F. & E., and certain supplies at no cost during the start up
phase of OIL (through August 31, 1997) and in exchange for 2) ▇▇▇▇▇ and
▇▇▇▇ ▇▇▇▇▇ (CAPITAL shareholders)personally guaranteeing OIL's office
lease, and in exchange for 3) CAPITAL continuing to provide all
existing F.F. & E. and allocable consumable supplies (ex. pens, water
service..etc.) through September 30, 1999, OIL agrees to provide to
CAPITAL one office and associated light secretarial support and use of
OIL's F.F. & E. through September 30, 1999.
V. Employees
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ became the Office Manager for OIL as of September 1,
1997 whereby the majority of her time is necessary. ▇▇. ▇▇▇▇▇▇ will
charge all temporary employees required to handle any CAPITAL or
CAPITAL client work which exceeds ordinary light support to CAPITAL
such that the only instance whereby temporary general office support is
to be charged to OIL is in the event of a specific OIL project.
VI. Phone Charges
Currently, all office phone bills will be paid by CAPITAL but 40% will
be recharged to OIL and 40% will be recharged to ▇▇▇▇▇ (CAPITAL's
largest client). CAPITAL will absorb 20% of phone charges to ensure it
covers its share of general business calls. This also falls in line
with the IRS policy of allocating by employee % of time: Currently the
following full time office attendees and their phone time allocations
are estimated as follows:
BOG BCG/▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇ ▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇
Regular Temporary 0 100
This would confirm that a 40% phone ▇▇▇▇ for OIL and 60% for
▇▇▇▇▇/CAPITAL collectively are appropriate for tax purposes.
VII. Marketing Materials/Office Supplies
All materials such as letterhead, folders. . etc. which can be
associated with only one particular Company are paid directly by that
Company. Materials which are utilized by both such as "Beta" envelopes
and copy paper are paid for by CAPITAL and recharged to OIL at cost
only when consumed by OIL. A detailed log of all such items is kept by
the Office Manager. Actual costs for such items are reviewed with each
major purchase. Office expense items used by both Companies which are
relatively immaterial, impossible or impracticable to track on a daily
basis are typically paid for by CAPITAL as part of its obligations to
OIL under Item I "Office Lease".
