Document:

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Exhibit 10.1

 

NAME OF SUBSCRIBER: __________________________________________________

 

 

TO:                      EMCLAIRE FINANCIAL CORP.

    612 MAIN STREET

    EMLENTON, PENNSYLVANIA 16373

   ATTENTION:  WILLIAM C. MARSH

 

SUBSCRIPTION AGREEMENT

 

SECTION 1.

 

1.1          Subscription.

 

The undersigned, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase the number of shares of common stock (the “Shares”) of Emclaire Financial Corp., a Pennsylvania corporation (the “Company”), indicated on page A-8 hereof, on the terms and conditions described herein and in the  Private Offering Memorandum, dated February 2, 2011 (such memorandum, together with all documents incorporated by reference therein and amendments and supplements thereto, the “Private Offering Memorandum”), a copy of which has been received by the undersigned.

 

The Company is offering for sale up to 290,000 Shares.  The Shares are being offered to certain existing shareholders of the Company and selected members of the general public who, in each case, are “accredited investors” as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).   Investors who wish to purchase Shares must subscribe for a minimum of $50,000 of common stock (3,135 Shares) and may not subscribe for more than $1.0 million of common stock (62,696 Shares).  The Company reserves the right, in its sole discretion, to change or waive the purchase limitations.  Unless otherwise indicated, all capitalized terms not defined herein shall have the same meanings and definitions as set forth in the Private Offering Memorandum.

 

1.2          Purchase of Shares.

 

The undersigned understands and acknowledges that the subscription price for the Shares shall be fifteen dollars and ninety-five cents ($15.95) per Share.  Payment for the Shares shall be by check or wire transfer, in each case only in accordance with the instructions of the Company, together with an executed copy of this Subscription Agreement and any other required documents.

 

SECTION 2.

 

2.1          Acceptance or Rejection.

 

(a)           The undersigned understands and agrees that the Company reserves the right to reject this subscription for the Shares in whole or part, if, in its reasonable judgment, it deems such action in the best interest of the Company, at any time prior to the Closing (as defined below), notwithstanding prior receipt by the undersigned of notice of acceptance of the undersigned’s subscription.

 

(b)           The undersigned understands and agrees that subscriptions are irrevocable.

 

(c)           In the event of rejection of this subscription, or in the event the sale of the Shares subscribed for by the undersigned is not consummated by the Company for any reason (in which event this Subscription Agreement shall be deemed to be rejected), this Subscription Agreement and any other agreement entered into between the undersigned and the Company relating to this subscription shall thereafter have no force or effect and the Company shall promptly return or cause to be returned to the undersigned the purchase price remitted to the Company by the undersigned.

 

  

A-1

  

2.2      Closing; Closing Date.

 

The closing (the “Closing”) of the purchase and sale of the Shares following the acceptance by the Company of the undersigned’s subscription, as evidenced by the Company’s execution of this Subscription Agreement, shall take place on such date and at such location as determined by the Company.  At the Closing of the purchase and sale of the Shares subscribed to by the undersigned, the Company shall prepare for delivery to the undersigned the certificates for the Shares to be issued and sold to the undersigned, duly registered in the undersigned’s name against payment in full by the undersigned of the aggregate purchase price of the Shares.

 

2.3      Registration for Resale.  The Company has agreed to file a registration statement with the Securities and Exchange Commission to register the Shares for resale under the Securities Act within 90 days of issuance and to use its best efforts to have the registration statement declared effective promptly after filing.  After the registration statement is declared effective, purchasers of common stock in the offering could sell their Shares by delivery of the resale prospectus included in such registration statement.

 

SECTION 3.

 

3.1      Investor Representations and Warranties.

 

The undersigned hereby acknowledges, represents and warrants to, and agrees with, the Company and its affiliates as follows:

 

(a)           The undersigned is acquiring the Shares for his own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in such Shares.  Further, the undersigned does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Shares for which the undersigned is subscribing.

 

(b)           The undersigned has full power and authority to enter into this Subscription Agreement, the execution and delivery of this Subscription Agreement has been duly authorized, if applicable, and this Subscription Agreement constitutes a valid and legally binding obligation of the undersigned.

 

(c)           The undersigned acknowledges his understanding that the offering and sale of the Shares is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) by virtue of Section 4(2) of the Securities Act and the provisions of Regulation D promulgated thereunder (“Regulation D”).  In furtherance thereof, the undersigned represents and warrants to and agrees with the Company and its affiliates as follows:

 

    (i)       The undersigned realizes that the basis for the exemption may not be present if, notwithstanding such representations, the undersigned has in mind merely acquiring the Shares for a fixed or determinable period in the future, or for a rise in the value of the Shares, or for sale if the Shares do not rise in value.  The undersigned does not have any such intention.

 

    (ii)       The undersigned has the financial ability to bear the economic risk of his investment, has adequate means for providing for his current needs and personal contingencies and has no need for liquidity with respect to his investment in the Company; and

 

    (iii)       The undersigned has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the prospective investment in the Shares.  If other than an individual, the undersigned also represents it has not been organized for the purpose of acquiring the Shares.

 

(d)           The undersigned is an accredited investor because the undersigned falls within at least one of the following categories.

 

    (i)       Applicable to individuals ONLY.  Please answer the following questions concerning your financial condition as an “accredited investor” (within the meaning of Rule 501 of Regulation D).  If the undersigned is more than one individual, each individual must initial an answer where the question indicates a “yes” or “no” response and must answer any other question fully, indicating to which individual it applies.  If the undersigned is purchasing jointly with his or her spouse, one answer may be indicated for the couple as a whole:

 

  

A-2

  

(A)         Your net worth* (or joint net worth with your spouse) exceeds $1,000,000?

 

        

	
  

	 	
Yes          No

 

(B)         You have an individual income** in excess of $200,000 or joint income together with your spouse in excess of $300,000 in each of the two most recent years (2009 and 2010) and you reasonably expect to reach the same income level in the current year (2011)?

 

       

	
  

	 	
Yes          No

 

(C)        You are an executive officer or director of Emclaire Financial Corp.?

 

        

                            Yes          No

 

*For purposes hereof “net worth” shall be deemed to include your assets, liquid or illiquid (including such items as property, furnishings, automobile and restricted securities) MINUS any liabilities (including such items as debts and other liabilities), NOT including the value or equity of your primary residence.

 

**For purposes hereof the term “income” is not limited to “adjusted gross income” as that term is defined for federal income tax purposes, but rather includes certain items of income which are deducted in computing “adjusted gross income.”  For investors who are salaried employees, the gross salary of such investor, minus any significant expenses personally incurred by such investor in connection with earning the salary, plus any income from any other source including unearned income, is a fair measure of “income” for purposes hereof.  For investors who are self-employed, “income” is generally construed to mean total revenues received during the calendar year minus significant expenses incurred in connection with earning such revenues.

 

(ii)       Applicable to corporations, partnerships and other entities ONLY:

 

The undersigned is an accredited investor because the undersigned falls within at least one of the following categories (Check all appropriate lines):

 

	
  

	
_______ (A)

	
a bank as defined in Section 3(a)(2) of the Act or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;

 

	
  

	
_______ (B)

	
a broker-dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;

 

	
  

	
_______ (C)

	
an insurance company as defined in Section 2(13) of the Securities Act;

 

	
  

	
_______ (D)

	
an investment company registered under the Investment Company Act of 1940, as amended (the “Investment Act”), or a business development company as defined in Section 2(a)(48) of the Investment Act;

 

	
  

	
_______ (E)

	
a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended;

 

	
  

	
_______ (F)

	
a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, where such plan has total assets in excess of $5,000,000;

 

 

  

A-3

  

 

	
  

	
_______ (G)

	
an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended (the “Employee Act”), where the investment decision is made by a plan fiduciary, as defined in Section 3(21) of the Employee Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or an employee benefit plan that has total assets in excess of $5,000,000 or a self-directed plan the investment decisions of which are made solely by persons that are accredited investors;

 

	
  

	
_______ (H)

	
a private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;

 

	
  

	
_______ (I)

	
an organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

	
  

	
_______ (J)

	
a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act; or

 

  _______ (K)            an entity in which all of the equity owners are accredited investors.

 

(e)         The undersigned:

 

  (i)       Have been furnished with the Private Offering Memorandum and any documents which may have been made available upon request for a reasonable time prior to the date hereof and the undersigned has carefully read the Private Offering Memorandum and understands and have evaluated the risks set forth under “Risk Factors” and the considerations described in the Private Offering Memorandum and have relied solely (except as indicated in subsections (ii) and (iii) below) on the information contained in the Private Offering Memorandum (and the documents incorporated therein);

 

 (ii)       Have been provided an opportunity for a reasonable time prior to the date hereof to obtain additional information concerning the offering of the Shares, the Company and all other information to the extent the Company possesses such information or can acquire it without unreasonable effort or expense;

 

 (iii)      Have been given the opportunity for a reasonable time prior to the date hereof to ask questions of, and receive answers from, the Company or its representatives concerning the terms and conditions of the offering of the Shares and other matters pertaining to this investment, and have been given the opportunity for a reasonable time prior to the date hereof to obtain such additional information necessary to verify the accuracy of the information contained in the Private Offering Memorandum or that which was otherwise provided in order for him to evaluate the merits and risks of purchase of the Shares to the extent the Company possesses such information or can acquire it without unreasonable effort or expense;

 

(iv)       Have not been furnished with any material oral representation or oral information in connection with the offering of the Shares which is not contained in the Private Offering Memorandum; and

 

(v)       Have determined that the Shares are a suitable investment for the undersigned and that at this time the undersigned could bear a complete loss of such investment.

 

(f)           The undersigned is not relying on the Company, or its affiliates with respect to economic considerations involved in this investment.

 

(g)           The undersigned represents, warrants and agrees that he will not sell or otherwise transfer the Shares without registration under the Securities Act or an exemption therefrom and fully understands and agrees that he must bear the economic risk of his purchase because, among other reasons, the Shares have not been registered under the Securities Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under the applicable securities laws of such states or an exemption from such registration is available.  In particular, the undersigned is aware that the Shares are “restricted securities,” as such term is defined in Rule 144 promulgated under the Securities Act (“Rule 144”), and they may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met.  The undersigned also understands that, except as otherwise provided herein, the Company is under no obligation to register the Shares on his behalf or to assist him in complying with any exemption from registration under the Securities Act or applicable state securities laws.  The undersigned further understands that sales or transfers of the Shares are further restricted by state securities laws and the provisions of this Agreement.

 

  

A-4

  

The undersigned understands that the Company has agreed to file a registration statement with the Securities and Exchange Commission to register the Shares for resale under the Securities Act within 90 days of issuance and to use its best efforts to have the registration statement declared effective promptly after filing.  After the registration statement is declared effective, purchasers of common stock in the offering could sell their Shares by delivery of the resale prospectus included in such registration statement.

 

(h)           No representations or warranties have been made to the undersigned by the Company, or any officer, employee, agent, affiliate or subsidiary of the Company, other than the representations of the Company contained herein and in the Private Offering Memorandum, and in subscribing for Shares the undersigned is not relying upon any representations other than those contained herein or in the Private Offering Memorandum.

 

(i)           Any information which the undersigned has heretofore furnished to the Company with respect to his financial position and business experience is correct and complete as of the date of this Subscription Agreement and if there should be any material change in such information he will immediately furnish such revised or corrected information to the Company.

 

(j)           The undersigned understands and agrees that the certificates for the Shares shall bear the following legend until (i) such securities shall have been registered under the Securities Act and effectively been disposed of in accordance with the registration statement; or (ii) in the opinion of counsel for the Company or other counsel reasonably acceptable to the Company, such securities may be sold without registration under the Securities Act as well as any applicable “Blue Sky” or state securities laws:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT BUT ONLY UPON A HOLDER HEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO EMCLAIRE FINANCIAL CORP. (THE “COMPANY”), OR OTHER COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY, THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY APPLICABLE “BLUE SKY” OR SIMILAR SECURITIES LAW.”

 

(k)           The undersigned understands that an investment in the Shares is a speculative investment which involves a high degree of risk of loss of his entire investment.

 

(l)           The undersigned’s overall commitment to investments which are not readily marketable is not disproportionate to the undersigned’s net worth, and an investment in the Shares will not cause such overall commitment to become excessive.

 

(m)           The undersigned consents to the placing of legends and stop-transfer orders with the transfer agent of the Company’s securities with respect to any of such securities registered in the name of the undersigned or beneficially owned by the undersigned.

 

(n)           The foregoing representations, warranties and agreements shall survive the execution and delivery of this Agreement and the Closing.

 

SECTION 4.

 

4.1          Indemnity.

 

The undersigned agrees to indemnify and hold harmless the Company, its officers and directors, employees and its affiliates and each other person, if any, who controls any thereof, against any loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any false representation or warranty or breach or failure by the undersigned to comply with any covenant or agreement made by the undersigned herein or in any other document furnished by the undersigned to any of the foregoing in connection with this transaction.

 

  

A-5

  

4.2          Modification.

 

Neither this Subscription Agreement nor any provisions hereof shall be modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

 

4.3          Notices.

 

Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a) deposited, postage prepaid, in a United States mail letter box, registered or certified mail, return receipt requested, addressed to such address as may be given herein, or (b) delivered personally at such address.

 

4.4          Counterparts.

 

This Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart.

 

4.5          Binding Effect.

 

Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns.  If the undersigned is more than one person, the obligation of the undersigned shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his heirs, executors, administrators and successors.

 

4.6          Entire Agreement.

 

This Agreement and the documents referenced herein contain the entire agreement of the parties and there are no representations, covenants or other agreements except as stated or referred to herein and therein.

 

4.7          Assignability.

 

This Agreement is not transferable or assignable by the undersigned.

 

4.8          Applicable Law.

 

This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to conflicts of law principles.

 

4.9          Pronouns.

 

The use herein of the masculine pronouns “him” or “his” or similar terms shall be deemed to include the feminine and neuter genders as well and the use herein of the singular pronoun shall be deemed to include the plural as well.

 

 

 

 

  

A-6

  

ALL SUBSCRIBERS MUST COMPLETE THIS PAGE

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement on the ___ day of ______________, 2011.

 

 

____________________                 X        $15.95 per Share Subscription Price     = $_________________________

(Shares Subscribed For)                                                                                                      (Total Subscription Price)

 

 

Method of payment (Please check one):

 

[  ]      Check                         [  ]        Money Order                      [  ]        Wire Transfer

 

 

Manner in which Title is to be held (Please check one):

 

	
1.

	
 

	
Individual

	
7.

	
 

	
Trust/Estate/Pension or Profit Sharing Plan

Date Opened: 

	
2.

	
 

	
Joint Tenants with Right of Survivorship

	
8.

	
 

	
As a Custodian for

_______________________

Under the Uniform Gift to

Minors Act of the State of

 

_______________________

	
3.

	
 

	
Community Property

	
9.

	
 

	
Married with Separate Property

	
4.

	
 

	
Tenants in Common

	
10.

	
 

	
Keogh

	
5.

	
 

	
Corporation/Partnership/

Limited Liability Company

	
11.

	
 

	
Tenants by the Entirety

	
6.

	
 

	
IRA

	  	  	  

 

 

INDIVIDUAL SUBSCRIBERS MUST ALSO COMPLETE PAGE A-9.

 

SUBSCRIBERS WHICH ARE CORPORATIONS OR OTHER ENTITIES MUST ALSO COMPLETE PAGE A-10.

 

 

 

 

 

 

 

 

 

 

 

 

  

A-7

  

 

EXECUTION BY NATURAL PERSONS

 

 

____________________________________________________________________________________________________

Exact Name in Which Title is to be Held

 

 

 

 

Name (Please Print)

 

 

 

 

Residence: Number and Street

 

 

 

 

City, State and Zip Code

 

 

 

 

Social Security Number

 

 

 

 

 

 

 

(Signature(s))

 

IF MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

 

 

 

 

COMPANY USE ONLY

 

ACCEPTED this   day of  , 2011 on behalf of Emclaire Financial Corp.

 

 

By: 

Name:

Title:

 

 

 

 

 

 

 

  

A-8

  

EXECUTION BY SUBSCRIBER WHICH IS A CORPORATION OR OTHER ENTITY

 

(Corporation, Partnership, Trust, Etc.)

 

 

____________________________________________________________________________________________________

Name of Entity (Please Print)

 

Date of Incorporation or Organization: 

 

State of Principal Offices: 

 

Federal Taxpayer Identification Number: 

 

 

By: 

Name:

Title:

[seal]

 

 

 

(If Entity is a Corporation)

 

 

 

Address

 

 

 

Taxpayer Identification Number

 

COMPANY USE ONLY

 

ACCEPTED this   day of  , 2011 on behalf of Emclaire Financial Corp.

 

 

 

By: 

Name:

Title:

 

 

 

 

 

 

 

A-9EXHIBIT 10.1

                    ACQUISITION AND SHARE EXCHANGE AGREEMENT

<PAGE>

Subject to approval of the Circuit Court in Pulaski County, Arkansas.

                                 ACQUISITION AND

                            SHARE EXCHANGE AGREEMENT

                                   DATED AS OF

                         _________________________, 2011

                                  BY AND AMONG

             ALAN BARKSDALE AS SUCCESSOR RECEIVER FOR BAMCO GAS, LLC

                              TBM ACQUISITION CORP.

                                       AND

                          RED MOUNTAIN RESOURCES, INC.

                                       1
<PAGE>

                    ACQUISITION AND SHARE EXCHANGE AGREEMENT

         This  AGREEMENT,  dated as of May __,  2011 (the  "Agreement"),  by and
among  Red  Mountain  Resources,   Inc.,  a  Florida  Corporation  ("RMR"),  TBM
Acquisition  Corp., a Texas  Corporation and  wholly-owned  subsidiary of RMR ("
Exchange Sub"), and Alan Barksdale, Successor Receiver in Case #CV093281 Circuit
Court, Pulaski County,  Arkansas ("Receiver"),  (the Bamco Gas, LLC Receivership
being hereafter described as the "Receivership Estate"), provides as follows:

         WHEREAS,  the board of directors of RMR, the Exchange Sub and Receiver,
respectively,  have  each  approved,  as  being  in  the  best  interest  of the
respective  entities and their  stockholders or creditors the  Acquisition  (the
"Exchange") of certain assets,  as described on Exhibit A, by Exchange Sub which
constitute  the collateral and security for certain Bonds held by Bondholders in
the Receivership  Estate (said Bonds and Bondholders as listed on Exhibit B), in
accordance with the applicable  provisions of the Florida  Business  Corporation
Code (the  "FBCC") and the Texas  Business  Organizations  Code (the  "TBOC") in
consideration  for 5,275,000  shares of common stock of RMR to be distributed to
Bondholders and assumption of a $2,870,000 outstanding Line of Credit from First
State Bank of Lonoke by RMR; and subject to the  confirmation  of the  Agreement
and  determination  of fairness by the Court in Case #CV093281 in Re: Bamco Gas,
LLC Receivership in the Circuit Court of Pulaski County, Arkansas.

         WHEREAS,  RMR,  Exchange  Sub  and  Receiver  desire  to  make  certain
representations,  warranties,  covenants and  agreements in connection  with the
Exchange and also to prescribe various conditions to the Exchange; and

         WHEREAS,  this  Agreement is intended to set forth the terms upon which
the assets will be acquired by Exchange Sub, a wholly owned subsidiary of RMR;

         NOW,  THEREFORE,  in  consideration of the foregoing and the respective
representations,  warranties, covenants and agreements set forth herein, and for
other good and  valuable  consideration  the receipt  and  adequacy of which are
hereby  acknowledged,  and intending to be legally bound hereby,  the parties do
hereby agree as follows:

                                    ARTICLE I
                                THE CONSIDERATION

SECTION 1.01.     Consideration/Acquisition & Exchange; Effective Time

         The Acquisition  shall become effective  ("Effective  Time") upon Court
approval  and the  subsequent  delivery of the  Assignment  from  Receiver  duly
executed  representing  100% of the Assets  (sometimes  hereinafter  called "the
assets") and delivery of the following consideration by RMR to Receiver:

         1.  5,275,000  shares  of  RMR  Common  Stock  to be  exchanged  to the
         Bondholders (prorata) of Receivership of Bamco Gas, LLC in exchange for

                                       2
<PAGE>

         100% of the assets held in the Receivership Estate described on Exhibit
         A by Receiver  pursuant  to Court  Order in case # CV093281  referenced
         above.

SECTION 1.02.     Effects of the Exchange.

         At the  Effective  Time and by virtue of the  Exchange,  (i) all of the
outstanding  Assets  shall be conveyed  to, and Exchange Sub shall be the owning
entity  of the  Assets;  (ii) all of the  Assets  of the  Receivership  shall be
exchanged  as provided in Section  1.03,  subject to the approval and the Courts
Order in Case No. CV093281, Pulaski County Circuit Court, Arkansas.

SECTION 1.03.     Conversion of Securities/Consideration.

         As of the Effective Time, by virtue of the Exchange:

     (a)  All of the  Assets  that  are  outstanding  immediately  prior  to the
Effective  Time,  shall be conveyed by Receiver in exchange for shares of RMR in
the conversion amount to be exchanged to Bondholders of the Receivership  Estate
by the  Receiver.  All such assets  shall be conveyed to Exchange  Sub, and each
holder of Bonds of Bamco Gas,  LLC shall cease to have any security in or rights
with  respect  thereto,  except the right to receive the number of shares of RMR
Common Stock to be issued in  consideration  therefore  upon  Assignment  by the
Receiver of such assets in accordance with Section 1.03(b),

     (b) Each 1%  ownership  of Bonds shall be  entitled  to receive  1/100th of
5,275,000  shares of RMR in exchange for the Bonds secured by certain  interests
in the Assets of the Receivership Estate.

     (c)  Additional  Consideration:  RMR  shall  execute  an  assumption  of  a
$3,000,000 outstanding Line of Credit from First State Bank of Lonoke.

SECTION 1.04.     Delivery Procedures.

     (a) Upon  Courts  Approval  by  Order,  after a  Fairness  Hearing  in Case
#CV093281  above  referenced,  RMR shall provide to each  Bondholder a letter of
transmittal and  instructions  for use in effecting the release of the interests
outstanding immediately prior to the Effective Time in appropriate and customary
form  with  such  provisions  as the board of  directors  of RMR may  reasonably
specify.  Upon  delivery  of an  Assignment  from  Receiver  to RMR, a letter of
transmittal,  duly and properly  executed,  shall be sent to the  Bondholders of
Bamco Gas, LLC; Bondholders shall be entitled to receive in exchange therefore a
certificate  representing  that number of shares of RMR Common Stock as is equal
to the product of the  percentage of the Total Bond Interest  represented by the
Bond held  multiplied by the  Conversion  Amount;  and the  Assignment  shall be
delivered by Receiver upon Court approval as aforesaid.  Under said Court Order,
each  Bondholder  shall, at and after the Effective Time, be deemed to hold only
the  right to  receive,  in  cancellation  of such  Bond,  RMR  Common  Stock as
contemplated  by this  Section  1.05,  together  with any  dividends  and  other

                                       3
<PAGE>

distributions  payable  thereafter,  and the  Bondholders  thereof shall have no
security or collateral rights whatsoever further in the Assets or claims against
the Receivership Estate. Shares of RMR Common Stock issued in the Exchange shall
be issued, and be deemed to be outstanding,  as of the Effective Time. RMR shall
cause all such shares of RMR Common Stock issued  pursuant to the Exchange to be
duly authorized,  validly issued,  fully paid and non-assessable and not subject
to preemptive rights.

     (b) If any  certificate  representing  shares of RMR Common  Stock is to be
issued in a name other than that in which the Bond is registered,  it shall be a
condition of such exchange that the Bondholder shall deliver  properly  endorsed
transfer  documents and that the person  requesting  such exchange shall pay any
transfer or other taxes required by reason of the issuance of  certificates  for
such  shares of RMR Common  Stock in a name  other  than that of the  registered
holder of the Bond.

                                   ARTICLE II
                                   THE CLOSING

SECTION 2.01.     Closing.

         Unless this Agreement shall have been  terminated and the  transactions
herein  contemplated  shall have been  abandoned  pursuant to Article VIII,  and
subject to the  satisfaction  or waiver of the  conditions  set forth in Article
VII, the closing of the  Exchange  (the  "Closing")  shall take place as soon as
reasonably  practicable  (but in no event on written notice of less than two (2)
business  days)  after  all of the  conditions  set  forth  in  Article  VII are
satisfied or, to the extent  permitted  thereunder,  waived,  or extended at the
offices  of,  located  at or at such other time and place as may be agreed to in
writing by the parties hereto (the date of such Closing being referred to herein
as the "Closing Date"), but not later than ____________________________, 2011.

                                  ARTICLE III
                      REPRESENTATIONS AND WARRANTIES OF RMR

         Except  as  set  forth  in the  applicable  section  of the  disclosure
schedule  delivered  by RMR to Receiver  concurrent  with the  execution of this
Agreement  (the "RMR  Disclosure  Schedule"),  RMR  represents  and  warrants to
Receiver as follows:

SECTION 3.01.     Organization of RMR and Exchange Sub; Authority.

         RMR is an Entity duly organized,  validly existing and in good standing
under  the  laws  of the  State  of  Florida.  Exchange  Sub is an  entity  duly
organized,  validly existing and in good standing under the laws of the State of
Texas.  Each of RMR and  Exchange  Sub has all  requisite  corporate  power  and
corporate  authority  to enter into the  Transaction  Documents to which it is a
party, to consummate the transactions  contemplated  hereby and thereby, to own,
lease and operate its  properties  and to conduct its  business.  Subject to the
receipt of stockholder approval, the execution, delivery and performance by each
of RMR and Exchange Sub of the Transaction  Documents to which it is a party and
the consummation of the transactions  contemplated  hereby and thereby have been
duly  authorized  by all  necessary  corporate  action  on the  part  of RMR and
Exchange  Sub,  including,  without  limitation  the  approval  of the  board of
directors  of RMR.  The  Transaction  Documents  have  been  duly  executed  and
delivered  by each of RMR and Exchange Sub and,  assuming  that the  Transaction
Documents  constitute  a valid  and  binding  obligation  of the  other  parties

                                       4
<PAGE>

thereto,  constitute a valid and binding  obligation of each of RMR and Exchange
Sub, enforceable against RMR and Exchange Sub in accordance with its terms. Each
of RMR and  Exchange  Sub is duly  qualified  or  licensed  to do  business as a
foreign  entity  and is in good  standing  in each  jurisdiction  in  which  the
property owned, leased or operated by it or the nature of the business conducted
by it makes such  qualification  necessary,  except  where the failure to obtain
such qualification or license would not, individually or in the aggregate,  have
a RMR Material Adverse Effect. RMR has heretofore delivered or made available to
Receiver  complete and correct copies of the  certificate of  incorporation  and
by-laws of RMR and Exchange Sub, the minute books and stock transfer  records of
RMR and Exchange Sub, as in effect as of the date of this Agreement. Neither RMR
nor Exchange Sub is in violation of its organizational documents.

SECTION 3.02.     Capitalization.

         The authorized  capital stock of RMR consists of 500,000,000  shares of
RMR Common Stock, of which 10,200,000  shares are outstanding on the date hereof
and   100,000,000   shares  of  Preferred  Stock  none  of  which  is  currently
outstanding.  The  authorized  capital  stock of Exchange  Sub consists of 1,000
shares of common  stock,  par value  $.001 per share of which  1,000  shares are
issued and outstanding on the date hereof. No other shares of any other class or
series of RMR Common Stock or  securities  exercisable  or  convertible  into or
exchangeable  for  RMR  Common  Stock  ("RMR  Common  Stock   Equivalents")  are
authorized,  issued or outstanding,  except that RMR has pending transactions to
issue  8,000,000  shares of  Series B  Preferred  Stock for the Texas  Midstream
Partners,  LLC asset, and 27,000,000 shares of common stock of RMR for the Black
Rock Energy LLC  acquisition  of assets.  The  outstanding  shares of RMR Common
Stock  have been duly  authorized  and  validly  issued  and are fully  paid and
nonassessable  and were not issued in violation  of, and are not subject to, any
preemptive,  subscription or similar  rights.  To RMR's  knowledge,  none of the
outstanding  shares of RMR  Common  Stock was  issued in  violation  of any Law,
including  without  limitation,  federal and state securities laws. There are no
outstanding  warrants,  options,   subscriptions,   calls,  rights,  agreements,
convertible or  exchangeable  securities or other  commitments  or  arrangements
relating to the issuance,  sale, purchase,  return or redemption,  and, to RMR's
knowledge,  voting or transfer of any shares, whether issued or unissued, of RMR
Common Stock,  RMR Common Stock  Equivalents or other  securities of RMR. On the
Closing Date,  the shares of RMR Common Stock for which Bonds shall be exchanged
in the Exchange will have been duly authorized and, when issued and delivered in
accordance with this Agreement,  such shares of RMR Common Stock will be validly
issued,  fully paid and  nonassessable.  RMR plans to issue additional shares in
order to secure funding for operations  totaling up to 20,000,000 Commono Shares
at $1.00 per share, to raise capital, pay fees and costs of operations.

                                       5
<PAGE>

SECTION 3.03.     No Violation; Consents and Approvals.

         The execution  and delivery by RMR of the  Transaction  Documents  does
not, and the consummation of the transactions contemplated hereby and compliance
with the terms hereof will not,  conflict  with or result in any violation of or
default  (or an event  which,  with  notice  or  lapse  of time or  both,  would
constitute a default)  under,  (a) the terms and conditions or provisions of the
certificate of  incorporation  or by-laws of RMR or any RMR Subsidiary,  (b) any
Law  applicable to RMR or any RMR Subsidiary or the property or assets of RMR or
any RMR Subsidiary,  or (c) give rise to any right of termination,  cancellation
or  acceleration  under,  or result in the  creation of any Lien upon any of the
properties of RMR or any RMR  Subsidiary  under any Contract to which RMR or any
RMR Subsidiary is a party or by which RMR or any RMR Subsidiary or any assets of
RMR or any RMR Subsidiary may be bound, No Governmental  Approval is required to
be  obtained  or  made  by or  with  respect  to RMR or any  RMR  Subsidiary  in
connection with the execution and delivery of this Agreement or the consummation
by RMR of the transactions contemplated hereby.

SECTION 3.04.     Litigation; Compliance with Laws.

     (a) There are: (i) no claims, actions, suits, investigations or proceedings
pending  or,  to the  knowledge  of  RMR,  threatened  against,  relating  to or
affecting  RMR or  the  RMR  Subsidiaries,  the  business,  the  assets,  or any
employee,  officer, director,  stockholder,  or independent contractor of RMR or
the RMR  Subsidiaries  in their  capacities  as such,  and (ii) no orders of any
Governmental   Entity  or  arbitrator   outstanding   against  RMR  or  the  RMR
Subsidiaries,  the business,  the assets,  or any employee,  officer,  director,
stockholder,  or independent  contractor of RMR or the RMR Subsidiaries in their
capacities as such,  or that could  prevent or enjoin,  or delay in any respect,
consummation of the transactions contemplated hereby.

     (b) RMR and the RMR Subsidiaries have complied and are in compliance in all
material  respects with all Laws  applicable to RMR, any  Subsidiary of RMR, its
business or its assets. Neither RMR nor the RMR Subsidiaries has received notice
from any  Governmental  Entity or other Person of any material  violation of Law
applicable to RMR, any of the RMR Subsidiaries,  their business or their assets.
RMR and the RMR Subsidiaries  have obtained and hold all required  Licenses (all
of which are in full force and effect) from all Government  Entities  applicable
to RMR, the RMR Subsidiaries,  their business or their assets. No violations are
or have been  recorded  in  respect of any such  License  and no  proceeding  is
pending,  or, to the  knowledge of RMR,  threatened  to revoke or limit any such
License.

                                   ARTICLE IV
                   REPRESENTATIONS AND WARRANTIES OF RECEIVER

         Except  as  set  forth  in the  applicable  section  of the  disclosure
schedule  delivered by Receiver to RMR prior to the execution of this  Agreement
(the "Receiver Disclosure Schedule"), Receiver represents and warrants to RMR as
follows:

                                       6
<PAGE>

SECTION 4.01.     Organization of Receiver; Authority of Receiver.

         Receiver is duly  appointed as Successor  Receiver  pursuant to a Court
Order in Case #CV093281, Arkansas Circuit Court, Pulaski County Arkansas.

SECTION 4.02.     No Violation; Consents and Approvals.

         The  execution  and delivery by Receiver of the  Transaction  Documents
does not, require Court approval,  however, the consummation of the transactions
contemplated  hereby and compliance  with the terms hereof requires the Approval
of the Court in Case # CV093218  (referenced  hereinabove) This transaction when
approved by said Court will not conflict  with, or result in any violation of or
default  (or an event  which,  with  notice  or  lapse  of time or  both,  would
constitute a default)  under,  (a) any Laws  applicable to Bamco Gas, LLC or the
Assets,  or  (b)  give  rise  to  any  right  of  termination,  cancellation  or
acceleration under, or result in the creation of any Lien upon any of the assets
of Bamco Gas,  LLC under,  any  Contracts  to which Bamco Gas, LLC is a party or
which   requires  the  Approval  of  the  Court  Case  #  CV093281   (referenced
hereinabove)  by which any of its  assets  may be bound.  No other  Governmental
Approval is  required  to be obtained or made by or with  respect to the Working
Interests  to be  conveyed  by  Receiver  (the  assets) in  connection  with the
execution and delivery of this Agreement or the  consummation by Receiver of the
transactions contemplated hereby.

SECTION 4.03.     Litigation; Compliance with Laws.

     (a) Other than those which are being  adjudicated  through the Receivership
Action in Case #CV093281 Pulaski Court,  Arkansas Circuit Court.  There are: (i)
no claims,  actions,  suits,  investigations  or proceedings  pending or, to the
knowledge of Receiver,  threatened  against,  relating to or affecting Receiver,
its business, its assets, or any employee,  officer, director,  stockholder,  or
independent  contractor  of Receiver in their  capacities  as such,  and (ii) no
orders  of  any  Governmental  Entity  or  arbitrator  are  outstanding  against
Receiver,  its  business,  its  assets,  or  any  employee,  officer,  director,
stockholder,  or independent contractor of Receiver in their capacities as such,
or that could prevent or enjoin,  or delay in any respect,  consummation  of the
transactions contemplated hereby.

     (b) Receiver has not received notice from any Governmental  Entity or other
Person of any material  violation of Law  applicable  to it, its business or its
assets.  No violations are or have been recorded in respect of any License owned
or right to operate  and no  proceeding  is  pending,  or, to the  knowledge  of
Receiver threatened, to revoke or limit any such License.

SECTION 4.05      Financial Statements.

         Receiver  shall  provide,   prior  to  closing   hereunder,   financial
statements  in  accordance  with  federal  income  tax  accounting  consistently
applied,  complete  and  true  and  accurate  in all  respects,  disclosing  all
liabilities,  operations and assets of the subject Assets, only, during the term
of the  receivership  and  shall  provide  all books and  records  necessary  to

                                       7
<PAGE>

complete audits in accordance with SEC Rules and Regulations,  (but only for the
term of this  Receiver's  appointment by the Court),  and such other  production
records as may be available from State or Federal Reports.

                                   ARTICLE V
                        COVENANTS RELATING TO CONDUCT OF
                          BUSINESS PENDING THE EXCHANGE

SECTION 5.01.     Conduct of the Business Pending the Exchange.

     (a) During the period from the date of this Agreement and continuing  until
the Effective Time,  Receiver  agrees as to the Assets,  that Receiver shall use
commercially  reasonable efforts to preserve intact the Assets;  maintain Assets
in good operating condition and repair (ordinary wear and tear excepted); retain
the  services  of its  independent  contractors  and use  reasonable  commercial
efforts  to keep  in  full  force  and  effect  liability  insurance  and  bonds
comparable  in amount and scope of coverage to that  currently  maintained  with
respect to the Assets, unless, in any case, RMR consents otherwise in writing.

     (b) During the period from the date of this Agreement and continuing  until
the Effective  Time,  Receiver  agrees that,  other than in connection  with the
consummation of the transactions contemplated hereby, it shall manage the Assets
in the  ordinary  course  of with past  practice,  use  commercially  reasonable
efforts  to  preserve  intact  such  business  and  assets  and  use  reasonable
commercial  efforts  to keep in full force and effect  liability  insurance  and
bonds  comparable in amount and scope of coverage to that  currently  maintained
with respect to its business,  unless,  in any case,  RMR consents  otherwise in
writing:

             (1) Other than  dispositions  in  the  ordinary course  of business
consistent  with  past  practice  Receiver  shall  not,  individually  or in the
aggregate, to it and its subsidiaries, taken as a whole, it shall not, nor shall
it permit any of its subsidiaries to, sell, lease, encumber or otherwise dispose
of, or agree to sell,  lease  (whether  such  lease is an  operating  or shut in
lease), encumber or otherwise dispose of its assets.

             (2) It shall not permit  to  occur  any  (1) change  in  accounting
principles,  methods or practices,  investment  practices,  claims,  payment and
processing  practices  or  policies  regarding  intercompany  transactions,  (2)
incurrence  of  indebtedness  or  any  commitment  to  incur  indebtedness,  any
incurrence of a contingent  liability,  contingent obligation or other liability
of any type,  except  for,  with  respect to  Receiver,  other than  obligations
related  to the  exchange  of  inventory  in the  ordinary  course  of  business
consistent with past practices,  (3) waiver or release of any contract, right or
claim, except for cancellations,  waivers and releases in the ordinary course of
business  consistent  with its past practice  which do not exceed $50,000 in the
aggregate, (4) amendment,  termination or revocation of, or a failure to perform
obligations  or the  occurrence  of any  default  under,  (Y)  any  contract  or
agreement  (affecting  the Assets) to which it is or, as of date  hereof,  was a
party,  other  than in the  ordinary  course of  business  consistent  with past
practice, or (Z) any License.

                                       8
<PAGE>

                                   ARTICLE VI
                              ADDITIONAL AGREEMENTS

SECTION 6.01.     Access to Information.

         From  the  date  hereof  until  the  Effective   Time  or  the  earlier
termination  of this  Agreement,  each party  shall give the other party and its
respective  counsel,  accountants,  representatives and agents, and full access,
upon reasonable  notice and during normal  business hours, to Receivers  records
and the financial,  legal,  accounting and other  representatives  of such party
with  knowledge of the  business and the assets of such party and Receiver  and,
upon  reasonable  notice,  requesting  parties  shall be furnished  all relevant
documents,  records and other information concerning the business,  finances and
properties of such party and its  subsidiaries and Receiver that the other party
and  its  respective  counsel,  accountants,  representatives  and  agents,  may
reasonably request. No investigation  pursuant to this Section 6.01 shall affect
or be deemed to modify any of the representations or warranties hereunder or the
condition to the obligations of the parties to consummate the Exchange; it being
understood that the investigation  will be made for the purposes of the board of
directors of RMR and Receiver  determining in its good faith reasonable business
judgment the accuracy of the  representations and warranties of the other party.
In the event of the termination of this  Agreement,  each party, if so requested
by the other party, will return or destroy promptly every document  furnished to
it by or on  behalf  of the  other  party in  connection  with the  transactions
contemplated  hereby,  whether so obtained before or after the execution of this
Agreement,  and any copies  thereof  (except  for copies of  documents  publicly
available)  which may have been made, and will use  reasonable  efforts to cause
its  representatives  and any  representatives  of  financial  institutions  and
investors and others to whom such documents were furnished promptly to return or
destroy such documents and any copies thereof any of them may have made.

SECTION 6.02.     Legal Conditions to Exchange; Reasonable Efforts.

         Receiver,  RMR and  Exchange  Sub  shall  take all  reasonable  actions
necessary to comply promptly with all legal requirements which may be imposed on
itself with respect to the Exchange and will promptly cooperate with and furnish
information to each other in connection with any such requirements  imposed upon
any of them or any of  their  Subsidiaries  in  connection  with  the  Exchange.
Receiver, RMR and Exchange Sub will, and RMR will cause the RMR Subsidiaries to,
take all  reasonable  actions  necessary to obtain (and will cooperate with each
other in  obtaining)  any consent,  authorization,  order or approval of, or any
exemption  by, any  Governmental  Entity or other public or private third party,
required to be obtained or made by Receiver,  RMR or any of the RMR Subsidiaries
in connection with the Exchange or the taking of any action contemplated thereby
or by this Agreement.

SECTION 6.03.     Certain Filings.

         Each party shall  cooperate with the other in (a)  connection  with the
preparation of an 8-K, (b)  determining  whether any action by or in respect of,
or filing  with,  any  governmental  body,  agency,  official  or  authority  is
required,  or any  actions,  consents,  approvals  or waivers are required to be

                                       9
<PAGE>

obtained  from  parties  to any  material  contracts,  in  connection  with  the
consummation of the transactions  contemplated by this Agreement and (c) seeking
any such  actions,  consents,  approvals or waivers or making any such  filings,
furnishing  information  required in  connection  therewith  or with the 8-K and
seeking timely to obtain any such actions, consents,  approvals or waivers. Each
party shall  consult with the other in  connection  with the foregoing and shall
use all reasonable  commercial  efforts to take any steps as may be necessary in
order to obtain any consents,  approvals,  permits or authorizations required in
connection with the Exchange.

SECTION 6.04.     Public Announcements and Filings.

         Each party  shall give the other a  reasonable  opportunity  to comment
upon,  and,  unless  disclosure  is  required,  in the  opinion of  counsel,  by
applicable law, approve (which approval shall not be unreasonably withheld), all
press  releases  or other  public  communications  of any sort  relating to this
Agreement or the transactions contemplated hereby.

SECTION 6.05.     Tax Matters.

     (a) No representation is made that this is a non-taxable transaction.  Each
Bondholder  should  consult  his or her own tax  consultant  with  regard to tax
matters.

     (b) Receiver shall prepare and file on a timely basis all Tax Returns which
are due to be filed with respect to Receiver  (giving effect to any extension of
time) prior to the Closing Date  including  any 2011 short year return as may be
necessary for  subsidiary.  RMR shall be  responsible  for the  preparation  and
filing  of all Tax  Returns  which  are due to be filed  (giving  effect  to any
extension  of time)  after the Closing  Date,  but  Receiver  shall use its best
efforts to conduct its  affairs  such that any Tax Returns due after the Closing
Date can be filed on a timely basis.

SECTION 6.06.     Supplements to Schedules.

         Prior to the Closing,  Receiver will supplement or amend its disclosure
schedule  with respect to any matter  hereafter  arising  which,  if existing or
occurring  at the date of this  Agreement,  would have been  required  to be set
forth or described in such disclosure  schedule.  Prior to the Closing,  RMR may
supplement or amend its disclosure schedule with respect to any matter which, if
existing or occurring at the date of this Agreement, would have been required to
be set forth or described  in such  disclosure  schedule.  No  supplement  to or
amendment of the disclosure schedule made pursuant to this Section 6.06 shall be
deemed  to cure  any  breach  of any  representation  or  warranty  made in this
Agreement unless the other parties hereto specifically agree thereto in writing.

                                       10
<PAGE>

                                  ARTICLE VII
                           CONDITIONS OF THE EXCHANGE

SECTION 7.01.     Conditions to Each Party's Obligation to Effect the Exchange.

         The respective obligations of each party to effect the Exchange and the
other transactions  contemplated  herein shall be subject to the satisfaction at
or prior to the Effective Time of the following conditions,  any or all of which
may be waived, in whole or in part to the extent permitted by applicable law:

     (a) Court  Approval.  This  Agreement  shall have been duly approved by the
Court in Case  #CV093281,  Circuit Court of Pulaski  County,  Arkansas after due
notice  and a Fairness  Hearing  under the  applicable  Local  Rules,  through a
Disclosure  Statement and an Exchange  Agreement and  Representations  signed by
each bond holder.

     (b) No Injunctions or Restraints.  No  governmental  authority of competent
jurisdiction shall have enacted,  issued,  promulgated,  enforced or entered any
statute,  rule, regulation,  execution order, decree,  injunction or other order
(whether  temporary,  preliminary  or  permanent)  which is in effect  and which
materially restricts,  prevents or prohibits consummation of the Exchange or any
transaction contemplated by this Agreement;  provided, however, that the parties
shall  use  their  reasonable  commercial  efforts  to cause  any  such  decree,
judgment, injunction or other order to be vacated or lifted.

     (c)  Assumption  of Debt:  RMR shall obtain  agreement  for  assumption  of
approximately  $2,870,000  outstanding  Line of Credit  from First State Bank of
Lonoke.

SECTION 7.02.     Additional Conditions of Obligations of RMR.

         The  obligations  of RMR  and  Exchange  Sub  to  effect  the  Exchange
contemplated by this Agreement are also subject to the  satisfaction at or prior
to the Closing Date of the following additional conditions unless waived by RMR:

     (a) Representations  and Warranties.  The representations and warranties of
Receiver set forth in this  Agreement  shall be true and correct in all material
respects  (except  for  those   representations  and  warranties   qualified  by
materiality,  which shall be true and correct in all respects) as of the date of
this  Agreement  and as of the  Closing  Date  as  though  made on and as of the
Closing Date, except as otherwise contemplated by this Agreement.

     (b)  Performance of Obligations of Receiver.  Receiver shall have performed
in all material respects all conditions,  covenants,  agreements and obligations
required to be performed  by it under this  Agreement at or prior to the Closing
Date, including the Court Order of Approval of the Transaction.

     (c) No Material  Adverse  Change to Receiver.  From the date hereof through
and including the Effective  Time, no event shall have occurred which would have
a Material Adverse Effect, to value of the Assets to be acquired by RMR hereby.

                                       11
<PAGE>

     (d) Third Party  Consents.  Receiver  shall have  obtained all consents and
approvals,  required to be obtained prior to or at the Closing Date,  from third
parties or  governmental  and  regulatory  authorities  in  connection  with the
execution,  delivery  and  performance  by  Receiver of this  Agreement  and the
consummation of the transactions contemplated hereby.

     (e) No Governmental  Order or Other  Proceeding or Litigation.  No order of
any  Governmental  Entity shall be in effect that  restrains  or  prohibits  the
transactions  contemplated hereby and by the other Transaction Documents, and no
suit,  action or other  proceeding  by any  Governmental  Entity shall have been
instituted  or threatened  which seeks to restrain or prohibit the  transactions
contemplated hereby or thereby.

     (f) Deliveries.

             (1) At the Closing,  Receiver  shall have delivered  to  RMR or RMR
shall have  otherwise  obtained true,  correct and complete  copies of the Court
Order in Case No. CV093281 (as hereinabove referenced) approving the Exchange in
substantially  the form and substance as contained herein and Assignments,  duly
executed from each of the Bondholders,  in total to constitute 100% of the Bonds
outstanding.

             (2) Bank Approval: Approval of assumption of a $2,870,000 outstand-
ing Line of Credit  from  First  State  Bank of  Lonoke,  by RMR shall have been
obtained.

     (g)  Indebtedness  of Assets.  All  outstanding  Indebtedness on the Assets
shall have been fully paid or renegotiated in form and substance satisfactory to
RMR and the  Assignment  by  Receiver  shall be free and  clear of all liens and
encumbrances except as agreed by RMR.

     (h) Closing  hereunder is  contingent on the closing of at least $5 million
in equity being raised through a common stock offering for RMR.

SECTION 7.03.     Additional Conditions of Obligations of Receiver.

     (a) No Governmental  Order or Other  Proceeding or Litigation.  No order of
any  Governmental  Entity shall be in effect that  restrains  or  prohibits  the
transactions  contemplated hereby and by the other Transaction Documents, and no
suit,  action or other  proceeding  by any  Governmental  Entity shall have been
instituted  or threatened  which seeks to restrain or prohibit the  transactions
contemplated hereby or thereby.

     (b) Deliveries. At the Closing, RMR shall have delivered to Receiver:

             (1) certificates,  for the requisite stock  certificates  dated the
Closing Date,  signed on behalf of RMR, by the President of RMR in the allocable
pro rata amounts of shares necessary in exchange for each of the respective bond
holders interests;

                                       12
<PAGE>

             (2) Bank  Assumption:  RMR  shall  execute   an  assumption   of  a
$3,000,000 outstanding Line of Credit from First State Bank of Lonoke.

                                  ARTICLE VIII
                                   TERMINATION

SECTION 8.01.     Termination.

         This  Agreement  may be  terminated  at any time prior to the Effective
Time, by RMR or Receiver as set forth below:

     (a) by mutual consent of the board of directors of RMR and Receiver; or

     (b) by RMR upon written notice to Receiver, any condition to the obligation
of RMR to close  contained  in Article VII hereof has not been  satisfied  by 60
days after date hereof (the "End Date")  (unless  such  failure is the result of
RMR' breach of any of its representations,  warranties,  covenants or agreements
contained herein); or

     (c) by Receiver  upon written  notice to RMR, if: (A) any  condition to the
obligation  of  Receiver to close  contained  in Article VII hereof has not been
satisfied by the Closing  Date (unless such failure is the result of  Receiver's
breach  of any of  its  representations,  warranties,  covenants  or  agreements
contained herein);  or (B) the Court in Case #CV093281,  Circuit Court,  Pulaski
County,   Arkansas   does  not  approve  the  Exchange   under  this   Agreement
substantially as proposed herein; or

     (d) by RMR if the board of directors or special committee of RMR determines
in good faith, based upon the written opinion of its outside legal counsel, that
the  failure  to  terminate  this  Agreement  would  constitute  a breach of the
fiduciary  duties of the RMR board of directors or special  committee to the RMR
stockholders under applicable law; or

SECTION 8.02.     Fees, Costs and Expenses.

         Whether  or not the  Exchange  is  consummated,  all  legal  costs  and
expenses  incurred  in  connection  with  this  Agreement  and the  transactions
contemplated hereby shall be paid by RMR including its legal fees related to the
transactions herein contemplated.

                                   ARTICLE IX
                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES

   None of the  representations  and warranties of the parties set forth in this
Agreement shall survive the Closing.  Following the Closing Date with respect to
any  particular  representation  or  warranty,  no party  hereto  shall have any
further liability with respect to such representation and warranty.  None of the
covenants,  agreements  and  obligations of the parties hereto shall survive the
Closing.

                                       13
<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

SECTION 10.01.    Notices.

         All notices,  requests and other  communications to any party hereunder
shall be in writing (including telecopy,  telex or similar writing) and shall be
deemed given or made as of the date  delivered,  if delivered  personally  or by
telecopy (provided that delivery by telecopy shall be followed by delivery of an
additional copy personally,  by mail or overnight courier),  one day after being
delivered by overnight courier or three days after being mailed by registered or
certified mail (postage prepaid,  return receipt  requested),  to the parties at
the following addresses:

         if to RMR or Exchange Sub, to:

RMR:              7609 Ralston Road
                  Arvada, CO 80002
                  Fax: (303) 431-1567

TBM :             7609 Ralston Road
                  Arvada, CO 80002
                  Fax: (303) 431-1567

with a copy to (which shall not constitute notice):

Michael Littman, Esq.
7609 Ralston Road
Arvada, CO  80002
Fax:  (303) 431-1567

if to Receiver, to (which shall not constitute notice):

Alan Barksdale
16623 Cantrell Rd
Suite 1B
Little Rock, AR 72223
Fax: (501) 367-8138

or such other  address or telex or telecopy  number as such party may  hereafter
specify for the purpose by notice to the other party hereto.

                                       14
<PAGE>

SECTION 10.02.    Amendment; Waiver.

         This Agreement may be amended, modified or supplemented, and waivers or
consents to departures  from the provisions  hereof may be given,  provided that
the same are in writing and signed by or on behalf of the parties hereto.

SECTION 10.03.    Successors and Assigns.

         The provisions of this Agreement shall be binding upon and inure to the
benefit of the  parties  hereto and their  respective  successors  and  assigns,
provided that no party shall assign,  delegate or otherwise  transfer any of its
rights or obligations  under this Agreement  without the written  consent of the
other party hereto.

SECTION 10.04.    Governing Law.

         This  Agreement  shall be construed in accordance  with and governed by
the law of the State of Arkansas  without  regard to  principles  of conflict of
laws.

SECTION 10.05.    Waiver of Jury Trial.

         Each party hereto hereby  irrevocably  and  unconditionally  waives any
rights to a trial by jury in any legal action or  proceeding in relation to this
Agreement and for any counterclaim therein.

SECTION 10.06.    Consent to Jurisdiction.

         Each of the Parties hereby irrevocably and  unconditionally  submits to
the exclusive jurisdiction of the Circuit court of Pulaski Arkansas for purposes
of any suit,  action or other  proceeding  arising out of this Agreement and the
Transaction   Documents  (and  agrees  not  to  commence  any  action,  suit  or
proceedings  relating  hereto or  thereto  except in such  courts).  Each of the
Parties agrees that service of any process, summons, notice or document pursuant
to the laws of the  State  of  Arkansas  and on the  individuals  designated  in
Section  10.01 shall be  effective  service of process  for any action,  suit or
proceeding brought against it in any such court.

SECTION 10.07.    Counterparts; Effectiveness.

         Facsimile  transmissions  of  any  executed  original  document  and/or
retransmission of any executed facsimile  transmission shall be deemed to be the
same as the delivery of an executed  original.  This  Agreement may be signed in
any number of  counterparts,  each of which shall be an original,  with the same
effect as if the signatures thereto and hereto were upon the same instrument.

SECTION  10.08.  Entire  Agreement;  No Third  Party  Beneficiaries;  Rights  of
Ownership.

         Except as expressly  provided  herein,  this  Agreement  (including the
documents  and  the  instruments  referred  to  herein)  constitute  the  entire
agreement and supersede all prior  agreements and  understandings,  both written
and oral, among the parties with respect to the subject matter hereof. Except as

                                       15
<PAGE>

expressly  provided  herein,  this  Agreement is not intended to confer upon any
person  other than the  parties  hereto any rights or  remedies  hereunder.  The
parties  hereby  acknowledge  that no person  shall have the right to acquire or
shall be deemed to have  acquired  shares  of  common  stock of the other  party
pursuant to the Exchange until consummation thereof.

SECTION 10.09.    Headings.

         The headings  contained in this  Agreement are for  reference  purposes
only and shall not in any way  affect  the  meaning  or  interpretation  of this
Agreement.

SECTION 10.10.    No Strict Construction.

         The parties hereto have  participated  jointly in the  negotiation  and
drafting of this  Agreement.  In the event an ambiguity or question of intent or
interpretation  arises under any  provision of this  Agreement,  this  Agreement
shall  be  construed  as if  drafted  jointly  by the  parties  thereto,  and no
presumption or burden of proof shall arise favoring or disfavoring  any party by
virtue of the authorship of any of the provisions of this Agreement.

SECTION 10.11.    Severability.

         If any term or other provision of this Agreement is invalid, illegal or
unenforceable, all other provisions of this Agreement shall remain in full force
and  effect  so long as the  economic  or legal  substance  of the  transactions
contemplated  hereby is not affected in a manner that is  materially  adverse to
any party.

                                   ARTICLE XI
                                   DEFINITIONS

         "Affiliate" shall mean (a) with respect to an individual, any member of
such  individual's  family including lineal ancestors and descendents;  (b) with
respect to an entity,  any officer,  director,  stockholder,  partner,  manager,
investor or holder of an  ownership  shares of or in such entity or of or in any
Affiliate  of such entity;  and (c) with  respect to a Person,  any Person which
directly  or  indirectly,  through  one or  more  intermediaries,  controls,  is
controlled by, or is under common control with such Person or entity.

         "Agreement"  shall have the meaning  set forth in the  preamble to this
Agreement.

         "Closing"  shall have the  meaning  set forth in  Section  2.01 of this
Agreement.

         "Closing Date" shall have the meaning set forth in Section 2.01 of this
Agreement.

         "Code"  shall  have  the  meaning  set  forth in the  recitals  of this
Agreement.

                                       16
<PAGE>

         "Contracts" shall mean all contracts,  leases, subleases, notes, bonds,
mortgages,  indentures, Permits and Licenses,  non-competition agreements, joint
venture or partnership agreements,  powers of attorney, purchase orders, and all
other  agreements,  arrangements  and other  instruments,  in each case  whether
written or oral,  to which such Person is a party or by which any of them or any
of its assets are bound.

         "Conversion  Amount" shall mean an amount equal to 1/100th of 5,275,000
shares of RMR Common Stock per 1% Bond interest of Aggregate  outstanding amount
of Bonds.

         "Exchange"  shall have the  meaning  set forth in the  recitals of this
Agreement.

         "Exchange Sub" shall have the meaning set forth in the preamble to this
Agreement.

         "Effective Time" shall be the date all conditions and performance here-
under has been completed but no later than --------------.

          "Governmental  Approval"  shall mean the consent,  approval,  order or
authorization  of,  or  registration,  declaration  or  filing  with any  court,
administrative  agency or commission or other Governmental Entity,  authority or
instrumentality, domestic or foreign.

         "Governmental  Entity"  means the  government  of the United  States of
America, any other nation or any political subdivision thereof, whether foreign,
state or local,  and any agency,  authority,  instrumentality,  regulatory body,
court, tribunal,  arbitrator, central bank or other entity exercising executive,
legislative,  judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

          "Laws"  shall mean all  foreign,  federal,  state and local  statutes,
laws, ordinances,  regulations, rules, resolutions,  orders, writs, injunctions,
judgments and decrees  applicable to the specified  Person and to the businesses
and assets thereof.

         "License"  shall mean any franchise,  authorization,  license,  permit,
certificate of occupancy, easement, variance, exemption, certificate, consent or
approval of any Governmental Entity or other Person.

         "Lien" shall mean any mortgage, pledge, assessment,  security interest,
lease, lien, adverse claim, levy, charge or other encumbrance of any kind.

         "Person" shall mean any individual,  sole proprietorship,  partnership,
joint venture, trust,  unincorporated  organization,  limited liability company,
association,  Entity,  institution,  entity,  party,  Governmental Entity or any
other juridical entity of any kind or nature whatsoever.

         "RMR"  shall  have  the  meaning  set  forth  in the  preamble  to this
Agreement.

                                       17
<PAGE>

         "RMR Common  Stock" shall have the meaning set forth in the recitals to
this agreement.

          "Subsidiary"  shall mean any Person in which another Person,  directly
or  indirectly,  owns 50% of either the equity  shares in or voting  control of,
such Person.

          "Taxes" means all federal,  state, county, local,  municipal,  foreign
and other taxes, assessments,  duties or similar charges of any kind whatsoever,
including all corporate franchise, income, gross receipts, occupation,  windfall
profits, sales, use, ad valorem,  value-added,  profits,  license,  withholding,
payroll, employment, excise, premium, real property, personal property, customs,
net  worth,  capital  gains,  transfer,  stamp,  documentary,  social  security,
disability,  environmental,  alternative minimum, recapture and other taxes, and
including  all shares,  penalties and  additions  imposed with respect  thereto,
whether  disputed or not and including any obligations to indemnify or otherwise
assume or succeed to the Tax  liability  of any  Person,  and any  liability  in
respect  of any Tax as a result of being a member of any  affiliated,  combined,
consolidated, unitary or similar group.

         "Tax   Return"   means  any  report,   return,   statement,   estimate,
informational  return,  declaration or other written information  required to be
supplied to a taxing authority in connection with Taxes.

         "Taxing  Authority"  means any domestic,  foreign,  federal,  national,
state, county or municipal or other local government,  any subdivision,  agency,
commission or authority thereof, or any  quasi-governmental  body exercising tax
regulatory authority.

          "Transaction Documents" shall mean this Agreement.

                  [Remainder of page intentionally left blank.]

                                       18
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto  have  caused  this  Exchange
Agreement to be duly executed as of the day and year first above written.

                          RED MOUNTAIN RESOURCES, INC.

                          By:
                              ---------------------------------
                               Name:
                               Title:

                           TBM ACQUISITION CORPORATION

                          By:
                              ----------------------------------
                               Name:
                               Title:

                          RECEIVER

                          By:
                              -----------------------------------
                                 Alan Barksdale

                                       19

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