Document:

Exhibit 10.27

 

EXECUTIVE SEPARATION AGREEMENT

 

 

This Executive
Separation Agreement (this “Agreement”) is entered into as of the 1st
day of October, 2002, by and between Beta Oil & Gas, Inc., a Nevada
corporation (“Employer”), and Steve Antry, a resident of Tulsa County, Oklahoma
(“Employee”).

 

W I T N E S S E T H:

 

WHEREAS,
Employer and Employee are parties to that certain Employment Agreement dated
June 23, 1997 (the “Employment Agreement”), pursuant to which Employee is
employed by Employer in the capacity of President of Employer;

 

WHEREAS, the
parties have agreed to mutually terminate the Employment Agreement on the terms
and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises, and mutual and dependent promises
contained herein, the parties hereto agree as follows:

 

1.             Resignation.  Employee does hereby resign as an officer
and employee of Employer effective as of October 21, 2002.  Employee’s usual monthly salary for services
rendered in October of 2002 shall be paid on a pro-rated basis, through the
effective date of termination.  The
parties agree that the Employment Agreement is hereby terminated and both
parties release, waive and relinquish any rights or remedies they may have
thereunder.

 

2.             Severance
Payment and Termination. 
Employer shall pay to Employee a total amount equal to $150,000, payable
in twenty-four (24) equal semi-monthly installments, payable on the 15th and
last day of each calendar month, commencing November 15, 2002.  Such payments and the health insurance
coverage provided in paragraph 3 below shall be in lieu of any other
compensation or benefits otherwise provided for in the Employment Agreement.

 

3.             Health
Insurance.  The parties agree
that Employee and his family shall continue to be covered by Employer’s health
and hospitalization insurance policy at Employer’s cost for a period of twelve
(12) months, uninterrupted from date of termination until October 21,
2003.  This shall not abrogate any
rights Employee may have under COBRA.

 

4.             Board
Seat.  It is understood and
agreed that Employee is not resigning his membership on Employer’s Board of
Directors.

 

5.             Binding
Effect; Assignability.  This
Agreement shall insure to the benefit of, bind and be enforceable by the
parties hereto, Employer’s successors and assigns and Employee’s heirs,
devisees, legatees, executors, administrators and personal and legal
representatives.

 

 

6.             Applicable
Law.  All questions
concerning the construction, validity and interpretation of this Agreement
shall be governed by the internal laws, and not the law of conflicts, of the
State of Oklahoma.

 

7.             Counterparts.  The parties may execute this Agreement in
any number of counterparts, each of which is an original, but all of which
together constitute one and the same instrument.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed in their respective
names and Employer by a duly authorized representative on the day and year
first above written.

 

	
   

  	
  EMPLOYER:

  
	
   

  	
   

  
	
   

  	
  Beta Oil & Gas, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph L. Burnett

  	
   

  
	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert E. Davis, Jr.

  	
   

  
	
   

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Antry

  	
   

  
	
   

  	
  EmployeeExhibit 10.28

 

BETA OIL & GAS, INC.

STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT (this “Agreement”), is made and entered
into as of the 1st day of October, 2002,
by and between BETA OIL & GAS, INC.,
a Nevada corporation (the “Corporation”), and David
A. Wilkins, a future employee (employee, future employee,
consultant, director) of the Corporation (“Optionee”).

 

W I T N E S S
E T H:

 

WHEREAS, as an
inducement to Optionee to accept the employment offered to him by the
Corporation, the Board of Directors of the Corporation has authorized the grant
to Optionee of an option to purchase all or any part of 500,000 shares of the Corporation’s Common
Stock for cash at a purchase price of One and
30/100 Dollars ($1.30.) per share, such option to be for the term
and upon the terms and conditions hereinafter set forth; and

 

WHEREAS,
Optionee desires to accept such grant upon such terms and conditions, including
restrictions on the transfer and sale of such shares as hereinafter set forth.

 

NOW,
THEREFORE, considering the premises, and inconsideration of the mutual
covenants, agreements and undertakings herein contained, the parties hereto,
intending to be legally bound, do hereby agree as follows:

 

1.             Definitions.

 

The following
are definitions of certain terms as used in this Agreement:

 

(a)           “Board”
or “Board of Directors” means the board of directors of the Corporation.

 

(b)           “Common
Stock” means the common stock, par value $0.001 per share, of the Corporation.

 

(c)           “Exchange
Act” means the Securities Exchange Act of 1934, as it exists now or from time
to time may hereafter be amended.

 

(d)           “Exercise
Price” means $1.30 per share,
subject to possible adjustment pursuant to Section 11.

 

(e)           “Expiration
Date” means October 1, 2012, or
earlier as provided at Section 3 hereof.

 

(f)            “Fair
Market Value” means for the relevant day, the value of a share of Common Stock
determined as follows:

 

1

 

(i)                                     If shares of
Common Stock are listed on the New York Stock Exchange, the American Stock
Exchange or such other securities exchange designated by the Board, or admitted
to unlisted trading privileges on any such exchange, or if the shares of Common
Stock are quoted on The Nasdaq Stock Market or other National Association of
Securities Dealers, Inc. system that reports closing prices, the fair market
value shall be the closing price of the Common Stock as reported by such
exchange or system on the day the fair market value is to be determined, or if
no such price is reported for such day, then the determination of such closing
price shall be as of the last immediately preceding day on which the closing
price is so reported;

 

(ii)                                  If the shares of
Common Stock are not so listed or admitted to unlisted trading privileges or so
quoted, the fair market value shall be the average of the last reported highest
bid and the lowest asked prices quoted on The Nasdaq Stock Market or, if not so
quoted, then by the National Quotation Bureau, Inc. on the day the fair market
value is determined; or

 

(iii)                               If the shares of Common
Stock are not so listed or admitted to unlisted trading privileges or so
quoted, and bid and asked prices are not reported, the fair market value shall
be determined in such reasonable manner as may be prescribed by the Board.

 

(g)           “Option”
means the right to purchase a specified number of shares of Common Stock,
subject to the terms and conditions of this Agreement.

 

(h)           “Option
Shares” means 500,000 shares of
the Common Stock, subject to possible adjustment pursuant to Section 11.

 

(i)            “Optionee”
means David A. Wilkins.

 

(j)            “Securities
Act” means the Securities Act of 1933, as amended.

 

(k)           “Termination
of Employment” means when Optionee’s employment relationship with the
Corporation and all of its Subsidiaries is terminated, regardless of any
severance arrangements.  A transfer from
the Corporation to a Subsidiary or affiliate of the Corporation or a
Subsidiary, or vice  versa, a leave of absence approved by the
Board, and a leave of absence pursuant to which the Corporation is legally
required to re-employ the Optionee are not a Termination of Employment for
purposes of this Agreement.

 

2.             Rules of Construction.

 

(a)           Governing
Law.  The construction and operation
of this Agreement are governed by the laws governing the interpretation and
enforcement of contracts of the State of Oklahoma and the laws of the State of
Nevada governing the Option Shares.

 

2

 

(b)           Headings.  All headings in this Agreement are for
reference only and are not to be utilized in construing this Agreement.

 

(c)           Gender.  Unless clearly appropriate, all nouns of
either gender refer indifferently to persons of either gender.

 

(d)           Singular
and Plural.  Unless clearly
inappropriate, singular terms refer also to the plural and vice  versa.

 

(e)           Severability.  If any provision of this Agreement is
determined to be illegal or invalid for any reason, the remaining provisions
shall continue in full force and effect and shall be construed and enforced as
if the illegal or invalid provision did not exist, unless the continuance of
this Agreement in such circumstances is not consistent with its purposes.

 

3.             Option Grant; Term; and Vesting.

 

(a)           Grant
of Option.  The Corporation hereby
grants to Optionee the Option to purchase, upon and subject to the terms and
conditions of this Agreement, all or any part of 500,000 authorized, but unissued shares of the Corporation’s
Common Stock for cash at the Exercise Price of $1.30 per share, subject to adjustment pursuant to Section 11.

 

(b)           Term
of Option.  The term of the Option
shall expire at 5:00 p.m., October 1, 2012,
Central Daylight time, on the day, which is the eighth anniversary of the date of this
Agreement unless the Option shall theretofore have been terminated in
accordance with the provisions hereinafter set forth.

 

(c)           Vesting
of Option.  The Option shall vest
and become exercisable in installments of 166,667,
166,667 and 166,666
shares on October 1, 2003, 2004 and
2005, respectively, and shall
thereafter remain exercisable as to all of the Shares until the expiration of
the term of the Option; provided, that Optionee is then and has
continuously been in the employ of the Corporation.

 

4.             General Terms.

 

The foregoing
option shall be subject to the following terms and conditions:

 

(a)           Price.  The price to be paid for each of the Option
Shares with respect to which the Option is exercised, shall be the Exercise
Price.

 

(b)           Exercise of Option.  Payment of the Exercise Price for the number
of shares as to which the Option is being exercised shall be by cash and in
full on the date of exercise.  The
Option shall not be exercisable with respect to fractions of a share.

 

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(c)           Notice of Exercise.  Each exercise of the Option herein granted
shall be by written notice to the Corporation in the form of Exhibit A hereto.

 

(d)          
Investment Representation. 
If stock to be delivered pursuant to exercise of the Option has not been
registered under the Securities Act , Optionee agrees to represent and warrant
in writing at the time of any exercise that the Option Shares are being
purchased only for investment and without any present intention to sell or
distribute such Option Shares, and further agrees that the certificate or
certificates evidencing the Option Shares so acquired contain the appropri­ate
legend and will be sold or transferred only in accordance with the rules and
regulations of the Securities and Exchange Com­mission or any applicable law,
regulation, or rule of any governmental agency.

 

(e)           Taxes.  Optionee shall pay all transfer taxes and
all other fees and expenses incident to the transfer or delivery of stock
pursuant to this Agreement.

 

5.             Exercise Procedure.  The Option, if exercised, shall be exercised
by written notice delivered to the Corporation stating the number of Shares
with respect to which the Option is being exercised, together with cash in the
amount of the Exercise Price of such Shares and the written statement provided
for in Section 4(d) hereof, if required by said Section 4(d).    Not less than one share may be purchased
at any one time unless the number purchased is the total number of Shares at
the time purchasable under the Option.

 

6.             Termination of Employment.  Upon Termination of Employment for any
reason other than the death, disability (as defined in section 22(e)(3) of the
Internal Revenue Code of 1986, as amended) or discharge of Optionee for “cause”
(as determined by the Board of Directors of the Corporation in its sole
discretion), Optionee shall have the right, at any time within three months
after such Termination of Employment, to exercise the Option only as to those
Shares with respect to which installments had accrued under Section 3(c) hereof
as of the date of such Termination of Employment; provided, that
all rights under the Option shall expire in any event on the day specified in
Section 3(b) hereof.  If Optionee shall
be discharged by the Corporation for cause, the Optionee’s right to exercise
the Option shall expire concurrently with such discharge for cause
notwithstanding the vesting of any installments under Section 3(c).

 

7.             Death or Disability of Optionee.  If Optionee shall die while in the employ of
the Corporation or a Subsidiary of the Corporation, or in the three-month
period referred to in Section 6 hereof, the person or persons to whom
Optionee’s rights under the Option shall have passed by will or by the
applicable laws of descent and distribution shall have the right, at any time
within one year after the date of Optionee’s death, to exercise the Option as
to those Shares with respect to which installments had accrued under Section
3(c) hereof as of the date of Termination of Employment; provided, that
all rights under the Option shall expire in any event on the day specified in
Section 3(b) hereof.  If Optionee’s
employment with the Corporation or a Subsidiary of the Corporation shall
terminate by reason of his total and permanent disability, he may within 12
months after his Termination of Employment exercise

 

4

 

his Option to the extent he was
entitled to exercise it at the date of his Termination of Employment.

 

8.             Non-Transferability of
Options.  The Option may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner during the period ending one year from the date of grant and thereafter
only (i) after written notice to the Board of Directors and (ii) in a manner
which is in compliance with all applicable provisions of the Securities Act and
the Securities Exchange Act of 1934, as amended, to the reasonable satisfaction
of the Corporation. Upon any permitted sale or other transfer, the transferee
shall remain subject to all terms and conditions of this Agreement.

 

9.             Rights as Shareholder.  The Optionee shall have no rights of a
shareholder as to Option Shares subject to the Option until, after proper
exercise of the Option or other action required, such Option Shares shall have
been recorded on the Corporation’s official shareholder records as having been
issued to Optionee.  No adjustment shall
be made for cash dividends or other rights for which the record date is prior
to the date such Option Shares are recorded as issued to Optionee in the
Corporation’s official shareholder records.

 

10.           Withholding Tax.  Upon the exercise of the Option, the
Optionee will be required to pay to the Corporation for remittance to the
appropriate taxing authorities an amount necessary to satisfy the Optionee’s
portion of federal, state and local withholding, FICA and Medicare taxes, if
any, incurred by reason of the exercise of the Option.  The Optionee may elect to have the tax
withholding obligation incurred upon the exercise of the Option satisfied by
the withholding of cash otherwise due the Optionee from the Corporation.

 

11.           Adjustments to Reflect Changes in
Capital Structure.  Subject to any
required action by the shareholders of the Corporation, the number of Option
Shares covered by this Option, as well as the Exercise Price per Option Share,
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Corporation; provided,
however, that conversion of any convertible securities of the Corporation shall
not be deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Board of Directors, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Corporation of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Option Shares subject to this Agreement.

 

In the event
of the proposed dissolution or liquidation of the Corporation, the Option
represented by this Agreement will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Board of
Directors. The Board of Directors may, in the exercise of its sole discretion in
such instances, declare that the Option represented by this Agreement shall
terminate as of a date fixed by the Board of Directors and give the

 

5

 

Optionee the right to exercise
his Option as to all or any part of the Option Shares, including Option Shares
as to which the Option would not otherwise be exercisable. In the event of the
proposed sale of all or substantially all of the assets of the Corporation, or
the merger of the Corporation with or into another corporation in a transaction
in which the Corporation is not the survivor, the Option represented by this
Agreement shall be assumed or an equivalent option shall be substituted by such
successor corporation or a parent or subsidiary of such successor corporation,
unless the Board of Directors determines, in the exercise of its sole
discretion and in lieu of such assumption or substitution, that the Optionee
shall have the right to exercise the Option as to all of the Option Shares,
including Option Shares as to which the Option would not otherwise be
exercisable. If the Board of Directors makes the Option fully exercisable in
lieu of assumption or substitution in the event of such a merger or sale of
assets, the Board of Directors shall notify the Optionee that the Option shall
be fully exercisable for a period of 30 days from the date of such notice, and
the Option will terminate upon the expiration of such period.

 

12.           Nondisclosure.  Notwithstanding anything to the contrary
herein, this Agreement shall be terminated if Optionee shall, without prior
written authorization from the Corporation, disclose to anyone outside the
Corporation, or use in other than the Corporation’s business, any confidential
information or material relating to the business of the Corporation.

 

13.           Notices.  All notices, requests, demands and other
communications required or permitted to be given hereunder shall be deemed to
have been duly given if in writing and delivered (a) personally, (b) by
facsimile transmission, (c) by courier service, or (d) by registered or
certified mail, return receipt requested, at the following addresses:

 

	
  If to the
  Corporation:

  	
  Beta Oil
  & Gas, Inc.

  
	
   

  	
  Two Warren Place

  
	
   

  	
  6120 South Yale Avenue, Suite 813

  
	
   

  	
  Tulsa, OK  74136

  
	
   

  	
  Facsimile No. (918) 495-2077

  
	
   

  	
  Attention:  Secretary of the
  Corporation

  
	
   

  	
   

  
	
  If to the Optionee:

  	
  David A. Wilkins

  
	
   

  	
   

  	
   

  
	
   

  	
  Tulsa, OK

  
	
   

  	
  Facsimile No.

  	
   

  	
   

  
					

 

Any party may change the address to which such communications are to be
directed to it by giving written notice to the other party in the manner
provided in this Section 13.

 

6

 

14.           Successors and Assigns.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, trustees, successors and assigns.

 

	
  EXECUTED as of February 4, 2003.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BETA OIL & GAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert E. Davis, Jr.

  	
   

  
	
   

  	
  Robert E. Davis, Jr.

  
	
   

  	
  Chairman of the Board

  
	
   

  	
   

  
	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Wilkins

  	
   

  
	
   

  	
  David A. Wilkins

  
						

 

7

 

STOCK OPTION AGREEMENT

EXHIBIT A

NOTICE OF EXERCISE

 

(To be signed by the Optionee at the time of exercise of his Option to
purchase shares of common stock (“Shares”) of Beta Oil & Gas, Inc. (“Company”).)

 

The undersigned Optionee states and represents to the Company as
follows:

 

(a)           I hereby irrevocably elect to
exercise the Option to the extent of purchasing
                        
Shares;

 

(b)           I enclose full payment of the
aggregate Exercise Price for the Shares by delivering herewith certified funds
or a bank cashier’s check in the amount of
$                   ;

 

(c)           Please issue a certificate for the
Shares being purchased registered in the name of the undersigned and deliver
such certificate to me at the address stated below.

 

 

	
  Dated: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature

  
	
   

  	
  (This signature must conform in all respects to the name of the
  Optionee as specified on the Stock Option Agreement.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name

  
	
   

  	
   

  
	
   

  	
  Address: 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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