AMENDMENT NUMBER 1
LATERAL DRILLING SERVICE STANDARD AGREEMENT
EDGE CAPITAL GROUP AND VERDISYS, INC.
This AMENDMENT NUMBER 1 TO THE ORIGINAL AGREEMENT dated June 16, 2003, ("Amendment")
is entered by and between Verdisys, Inc., a California corporation ("Verdisys"), and Edge Capital Group, a
California corporation ("ECG") Edge Capital Group ("ECG") engaged Verdisys, Inc. ("Verdisys") to provide
operating expertise, and lateral drilling services, to ECG's in the Monroe Gas Field in Monroe, Louisiana (the
"Monroe Field"), which ECG has acquired.
WHEREAS, ECG has arranged financing with Solarcom, Inc., however, ECG may replace the financing with
another third party lender as ECG has the financial capability to secure financing. Whereas, this Amendment
retroactively requires Edge to pay for drilling and related services under Section 2.1 by eliminating the condition
to obtain financing.
NOW, THEREFORE, in consideration of the rights, obligations and interests included under this Agreement,
both parties agree as follows:
2.0 SERVICE FEES AND ROYALTY
2.1 LATERAL DRILLING SERVICE FEES
Service Contract - ECG and Verdisys, Inc.
Verdisys Lateral Drilling Services ("Drilling Services") will be billed at the time of commencement of drilling at the
package rate set forth in the Term and Pricing Invoice (Addendum "B"). The Drilling Services are for each
individual well site pertaining to this Contract. ECG shall receive the initial Drilling Services for eight (8) wells.
Payment to Verdisys shall occur approximately thirty days later. Thereafter, additional funding to Verdisys will be
supplied for a minimum of wells equal to the lesser of either: (i) eight (8) wells at a time, or (ii) in the event that the
projected number of laterals to be drilled per well would cause the cost of 8 wells to exceed an aggregate
payment of $500,000.00, then that maximum number of wells which would be as close to, but not in excess of