Document:

AGREEMENT AND PLAN OF MERGER

                                   DATED AS OF

                            ___________________, 2007

                                  BY AND AMONG

                             SUN RIVER ENERGY, INC.,

                             SRE Acquisition Corp.,

                                       AND

                          FEDERATED OK INVESTORS, INC.

<PAGE>

                          AGREEMENT AND PLAN OF MERGER

         AGREEMENT  AND PLAN OF MERGER,  dated as of  ___________________,  2007
(this "Agreement"),  by and among Sun River Energy, Inc., a Colorado corporation
("SNRV"),  SRE  Acquisition  Corp.,  a  Oklahoma  corporation  and  wholly-owned
subsidiary of SNRV ("Merger Sub"), and Federated OK Investors, Inc., an Oklahoma
corporation ("FOKI").

         WHEREAS,  the  boards  of  directors  of  SNRV,  Merger  Sub and  FOKI,
respectively,  have  each  approved,  as  being  in the  best  interests  of the
respective  corporations  and their  stockholders,  the merger (the "Merger") of
FOKI with and into Merger Sub, in accordance  with the applicable  provisions of
the Colorado  Business  Corporation  Act (the "CBCA") and the Oklahoma  Business
Corporations Code (the "OKBC");

         WHEREAS,  pursuant  to the  Merger,  each  outstanding  share of common
stock, no par value, of FOKI ("FOKI Common Stock") shall, in accordance with the
provisions of this  Agreement,  be converted into the number of shares of SNRV's
common  stock,  no par value  ("SNRV  Common  Stock"),  equal to the  Conversion
Amount;

         WHEREAS, in connection with, the consummation of, the Merger; SNRV will
pay to the shareholders of FOKI, for prorata distribution, the sum of $1,000,000
and SNRV will pay $250,000 for consulting fees,  accounting and legal related to
transaction to the designees set forth in schedules hereafter.

         WHEREAS, as a result of the Merger the stockholders of FOKI immediately
after to the  Effective  Time (as defined in Section  1.01) will own shares,  of
SNRV Common Stock  outstanding  immediately  after the  Effective  Time computed
based upon the formula contained hereinafter on p.22;

         WHEREAS,  for federal  income tax  purposes,  it is intended  that the
Merger  shall  qualify  as a tax-free  reorganization  under the  provisions  of
Section 368 of the Internal Revenue Code of 1986, as amended (the "Code");

         WHEREAS,   SNRV,   Merger   Sub  and  FOKI   desire  to  make   certain
representations,  warranties,  covenants and  agreements in connection  with the
Merger and also to prescribe various conditions to the Merger; and

         WHEREAS,  this  Agreement is intended to set forth the terms upon which
FOKI will merge with and into Merger Sub;

         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:

<PAGE>

ARTICLE I
                                   THE MERGER

SECTION 1.01.     Filing of Certificate of Merger; Effective Time

         Subject to the provisions of this Agreement, a certificate of merger in
the forms approved by the parties hereto (the  "Certificate of Merger") shall be
duly prepared,  executed and  acknowledged  in accordance  with the CBCA and the
OKBC and thereafter delivered to the Secretary of State of the State of Colorado
for filing as provided in the CBCA and to the Secretary of State of the State of
Oklahoma for filing as provided in the OKBC  simultaneously with the Closing (as
defined in Section 2.01).  The Merger shall become  effective upon the filing of
the  Certificate of Merger with the Secretary of State and the State of Oklahoma
for filing as provided in the OKBC, respectively (the "Effective Time").

SECTION 1.02.     Effects of the Merger.

(a) At the  Effective  Time  and by  virtue  of the  Merger,  (i)  the  separate
corporate  existence  of FOKI shall cease and FOKI shall be merged with and into
Merger Sub, and Merger Sub shall be the surviving  corporation  (the  "Surviving
Corporation"); (ii) all of the issued and outstanding FOKI Common Stock shall be
converted as provided in Section 1.03; (iii) the certificate of incorporation of
Merger Sub as in effect  immediately  prior to the  Effective  Time shall be the
certificate of incorporation of the Surviving Corporation;  and (iv) the by-laws
of Merger Sub as in effect  immediately prior to the Effective Time shall be the
by-laws of the Surviving Corporation.

(b) Without limiting the generality of the foregoing, and subject thereto and to
any other  applicable  laws, at the Effective Time, all the properties,  rights,
privileges,  powers  and  franchises  of FOKI and  Merger  Sub shall vest in the
Surviving Corporation,  and, subject to the terms of this Agreement,  all debts,
liabilities, restrictions,  disabilities and duties of FOKI and Merger Sub shall
become  the debts,  liabilities,  restrictions,  disabilities  and duties of the
Surviving Corporation.

SECTION 1.03.     Conversion of Securities.

         As of the  Effective  Time,  by virtue of the  Merger and  without  any
action on the part of any holder thereof:

<PAGE>

(a) Shares of FOKI  Common  Stock that are  issued and  outstanding  immediately
prior to the  Effective  Time,  other than shares of FOKI Common  Stock that are
owned  by  shareholders  who  have  not  consented  to the  Merger  and who have
otherwise  taken all of the steps required by the OKBC to properly  exercise and
perfect such shareholders'  dissenters rights (such shares of FOKI Common Stock,
the  "Dissenting  Shares")  shall,  except as set forth below, be converted into
that number of shares of SNRV Common Stock equal to the Conversion  Amount which
is computed as set forth on p. 22. All such shares of FOKI Common Stock shall no
longer be outstanding and shall  automatically be canceled and retired and shall
cease to exist,  and each holder of a  certificate  representing  such shares of
FOKI Common  Stock shall cease to have any rights with respect  thereto,  except
(i) the right to receive the number of shares of SNRV Common  Stock to be issued
in consideration therefore upon surrender of such certificate in accordance with
Section 1.05,  without interest,  or (ii), in the case of Dissenting Shares, the
right to receive  the  payment to which  reference  is made in Section  1.04(a).
Notwithstanding  the foregoing,  any FOKI Stockholders  (each, a "Non-Certifying
FOKI  Stockholder")  who fail to  provide to FOKI  prior to the  Effective  Time
either (i) the appropriate  certifications  and/or questionnaires that such FOKI
Stockholder is an  "accredited  investor" as such term is defined in Rule 502 of
Regulation  D  promulgated  under the  Securities  Act of 1933,  as amended (the
"Securities  Act"), as determined by the Surviving  Corporation and its counsel,
or (ii) an executed Purchaser  Representative  Agreement appointing a "purchaser
representative"  (as  such  term is  defined  in Rule  501(h)  of  Regulation  D
promulgated   under  the  Securities   Act),  then  such   Non-Certifying   FOKI
Stockholder(s)  shall not be  entitled to receive  shares of SNRV  Common  Stock
pursuant to this  Section  1.03(a) and in lieu  thereof,  shall  receive cash in
amount equal to the number of shares of SNRV Common Stock such FOKI  Stockholder
would have received in the Merger multiplied by a price per share of SNRV Common
Stock equal to $0.01. In addition,  no fractional  shares shall be issued and in
the event a FOKI Stockholder is entitled to receive a fractional share, then the
number of shares to be issued to such FOKI  Stockholder  shall be  rounded up to
the nearest whole share; and

SECTION 1.04.     Dissenting Shares.

(a) As promptly as practicable  but in no event later than the 11th calendar day
following approval of this Agreement by the shareholders of FOKI, FOKI will mail
to every  shareholder  of record of FOKI that did not consent to the approval of
this  Agreement,  notice of the fact and date of the approval of this  Agreement
and the Merger in accordance with the OKBC and that the shareholder may exercise
the shareholder's  right to dissent from the Merger in accordance with the OKBC.
The notice shall be accompanied by a copy of the OKBC, a copy of this Agreement,
and such additional  information  and materials as the Surviving  Corporation or
SNRV may elect to provide.

<PAGE>

(b) Any holder of shares of FOKI Common Stock who perfects such holder's  rights
of dissent and  appraisal in  accordance  with and as  contemplated  by the OKBC
shall not receive payment pursuant to Section 1.03 but shall instead be entitled
to  receive  from  SNRV,  the fair  value of such  shares in cash as  determined
pursuant to such provision of the OKBC; provided,  that no such payment shall be
made to any dissenting  shareholder unless and until such dissenting shareholder
has complied with the applicable  provisions of the OKBC and surrendered to SNRV
the  certificate or  certificates  representing  the shares for which payment is
being made. In the event that a dissenting shareholder of FOKI fails to perfect,
or  effectively  withdraws or loses,  such holder's right to dissent and receive
payment for such holder's shares, SNRV shall issue and deliver the consideration
to which  such  holder of shares of SNRV  Common  Stock is  entitled  under this
Article I (without interest) upon surrender by such holder of the certificate or
certificates representing the shares of FOKI Common Stock held by such holder.

(c) FOKI shall give SNRV prompt  notice of any written  demands for appraisal or
payment for shares of FOKI Common Stock received by it, attempted withdrawals of
such demands and any other  instruments  served  pursuant to applicable law that
are received by FOKI with respect to shareholders' rights to dissent. FOKI shall
not,  without the prior written  consent of SNRV,  voluntarily  make any payment
with respect to, or settle or offer to settle, any such demands.

(d) SNRV shall  control all  negotiations  and  proceedings  with respect to any
demands  for  dissenter's  rights.  SNRV shall  promptly  pay to any  dissenting
shareholder  any and all amounts due and owing to such holder as a result of any
settlement or final  determination by any court of competent  jurisdiction  with
respect to such demands.

SECTION 1.05.     Exchange Procedures.

(a) As soon as  practicable  after the Effective  Time,  SNRV shall mail to each
FOKI  Stockholder a letter of transmittal and  instructions for use in effecting
the  surrender  of  certificates   representing  shares  of  FOKI  Common  Stock
outstanding  immediately  prior to the Effective  Time (the  "Certificates")  in
appropriate and customary form with such provisions as the board of directors of
SNRV after the Merger may  reasonably  specify.  Upon surrender of a Certificate
for  cancellation to SNRV,  together with such letter of  transmittal,  duly and
properly  executed,  the holder of such Certificate shall be entitled to receive
in exchange  therefore a certificate  representing that number of shares of SNRV
Common  Stock as is equal to the  product of the number of shares of FOKI Common
Stock  represented  by the  certificate  multiplied  by the  Conversion  Amount,
together  with any  dividends  and other  distributions  payable as  provided in
Section 1.06 hereof, and the Certificate so surrendered shall be canceled. Until
surrendered as contemplated by this Section 1.05, each Certificate shall, at and
after the Effective Time, be deemed to represent only the right to receive, upon
surrender of such Certificate, SNRV Common Stock as contemplated by this Section
1.05, together with any dividends and other distributions payable as provided in
Section 1.06 hereof,  and the holders thereof shall have no rights whatsoever as
stockholders of SNRV.  Shares of SNRV Common Stock issued in the Merger shall be
issued,  and be deemed to be  outstanding,  as of the Effective Time. SNRV shall
cause all such shares of SNRV Common Stock  issued  pursuant to the Merger to be
duly authorized,  validly issued,  fully paid and non-assessable and not subject
to preemptive rights.

<PAGE>

(b) If any certificate  representing shares of SNRV Common Stock is to be issued
in a name  other  than that in which the  Certificate  surrendered  in  exchange
therefore  is  registered,  it shall be a condition  of such  exchange  that the
Certificate  so surrendered  shall be properly  endorsed and otherwise in proper
form for transfer 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 SNRV  Common  Stock in a name other than that of the  registered
holder of the Certificate so surrendered.

(c) In the event any Certificate shall have been lost, stolen or destroyed, upon
the making of an affidavit of that fact by the person claiming such  Certificate
to be lost, stolen or destroyed and upon the posting by such person of a bond in
such amount as SNRV may reasonably direct as an indemnity against any claim that
may be made  against  it with  respect to such  Certificate,  SNRV will issue in
respect of such lost,  stolen or destroyed  Certificate one or more certificates
representing  shares of SNRV Common Stock as  contemplated  by this Section 1.05
and such person shall be entitled to the dividend and other distribution  rights
provided in Section 1.06 hereof.

(d) If any  Certificates  shall not have been  surrendered  prior to three years
after the Effective Time (or immediately prior to such earlier date on which any
payment in respect hereof would otherwise  escheat or become the property of any
governmental unit or agency), the payment in respect of such Certificates shall,
to the extent  permitted by applicable law, become the property of the Surviving
Corporation,  free and clear of all claims or interests of any person previously
entitled thereto.

(e) SNRV  shall be  entitled  to  deduct  and  withhold  from the  consideration
otherwise  payable  pursuant to this  Agreement  to any holder of a  Certificate
surrendered for shares of SNRV Common Stock (and dividends or distributions with
respect to SNRV Common Stock as contemplated by Section 1.06 hereof) such amount
as SNRV is required to deduct and  withhold  with  respect to the making of such
payment under the Code, or provisions of any state, local or foreign tax law. To
the extent that amounts are so deducted  and  withheld,  such  amounts  shall be
treated for all purposes of this  Agreement as having been paid to the holder of
such Certificate.

SECTION 1.06.     Dividends and Distributions.

         No  dividends or other  distributions  declared or made with respect to
SNRV  Common  Stock with a record date on or after the  Effective  Time shall be
paid to the holder of a Certificate  entitled by reason of the Merger to receive
certificates  representing  SNRV Common Stock until such holder  surrenders such
Certificate as provided in Section 1.05 hereof. Upon such surrender, there shall
be paid by SNRV to the person in whose name certificates  representing shares of
SNRV Common Stock shall be issued pursuant to the terms of this Article I (i) at
the time of the surrender of such  Certificate,  the amount of any dividends and
other distributions theretofore paid with respect to that number of whole shares
of such SNRV Common Stock represented by such surrendered  Certificate  pursuant
to the terms of this  Article I, which  dividends or other  distributions  had a
record  date on or after the  Effective  Time and a payment  date  prior to such
surrender and (ii) at the appropriate  payment date, the amount of dividends and
other distributions  payable with respect to that number of whole shares of SNRV
Common Stock represented by such surrendered  Certificate  pursuant to the terms
of this Article I, which dividends or other  distributions have a record date on
or after the Effective Time and a payment date subsequent to such surrender.

<PAGE>

SECTION 1.07.     No Liability.

         Neither  SNRV nor FOKI  shall be liable to any holder of shares of FOKI
Common  Stock or SNRV  Common  Stock,  as the case may be,  for such  shares (or
dividends or  distributions  with respect thereto) or cash delivered to a public
official pursuant to any applicable abandoned property, escheat or similar law.

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  Merger  (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, at the offices of SNRV
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").  It is specifically  understood and agreed that the closing hereunder is
subject to SNRV  obtaining  financing to pay the sum of  $1,250,000  required to
complete the purchase hereunder.

ARTICLE III
                     REPRESENTATIONS AND WARRANTIES OF SNRV

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

SECTION 3.01.     Organization of SNRV and Merger Sub; Authority.

         SNRV is a  corporation  duly  organized,  validly  existing and in good
standing  under the laws of the State of Delaware.  Merger Sub is a  corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of Oklahoma. Each of SNRV and Merger 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 SNRV and Merger 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 SNRV and Merger
Sub,  including,  without  limitation  the approval of the board of directors of
SNRV. The Transaction Documents have been duly executed and delivered by each of
SNRV and Merger Sub and,  assuming that the Transaction  Documents  constitute a
valid and binding  obligation of the other parties  thereto,  constitute a valid
and binding obligation of each of SNRV and Merger Sub,  enforceable against SNRV
and Merger Sub in accordance with its terms. Each of SNRV and Merger Sub is duly
qualified  or licensed to do  business as a foreign  corporation  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 SNRV  Material  Adverse
Effect.  SNRV has  heretofore  delivered or made  available to FOKI complete and
correct  copies of the  certificate  of  incorporation  and  by-laws of SNRV and
Merger Sub, the minute books and stock transfer  records of SNRV and Merger Sub,
as in effect as of the date of this Agreement. Neither SNRV nor Merger Sub is in
violation of its organizational documents.

<PAGE>

SECTION 3.02.     Capitalization.

         The authorized  capital stock of SNRV consists of 100,000,000 shares of
SNRV Common Stock,  $0.0001 par value, of which approximately  15,500,000 shares
are outstanding on the date hereof including  authorized  shares. The authorized
capital stock of Merger Sub consists of 1,000 shares of common  stock,  of which
1,000 shares are issued and outstanding on the date hereof.  Parties acknowledge
that SNRV will issue more common  shares  during  pendency of the  contract  for
cash, assets, services,  financing,  without limitation.  No other shares of any
other  class or  series  of SNRV  Common  Stock  or  securities  exercisable  or
convertible  into or  exchangeable  for SNRV Common  Stock  ("SNRV  Common Stock
Equivalents") are authorized,  issued or outstanding.  The outstanding shares of
SNRV 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 SNRV's knowledge, none of
the outstanding  shares of SNRV Common Stock was issued in violation of any Law,
including  without  limitation,  federal and state  securities  laws.  There are
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,  whether issued
or  unissued,  of SNRV Common  Stock.  On the Closing  Date,  the shares of SNRV
Common  Stock for which  shares of FOKI Common  Stock shall be  exchanged in the
Merger  will have  been duly  authorized  and,  when  issued  and  delivered  in
accordance  with this  Agreement,  such  shares of SNRV  Common  Stock,  will be
validly issued, fully paid and nonassessable.

SECTION 3.03.     No Violation; Consents and Approvals.

         The execution and delivery by SNRV of the  Transaction  Documents  does
not, and the  consummation of the transactions  contemplated  hereby and thereby
and  compliance  with the terms  hereof and thereof 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 SNRV or any SNRV
Subsidiary,  (b)  any Law  applicable  to SNRV  or any  SNRV  Subsidiary  or the
property or assets of SNRV or any SNRV 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 SNRV or any SNRV  Subsidiary  under any
Contract to which SNRV or any SNRV Subsidiary is a party or by which SNRV or any
SNRV  Subsidiary  or any  assets  of SNRV or any SNRV  Subsidiary  may be bound,
except,  in the case of clauses (b) and (c), for such  conflicts,  violations or
defaults which are set forth in Section 3.04 of the SNRV Disclosure Schedule and
as to which  requisite  waivers or consents will have been obtained prior to the
Closing  or  which,  individually  or in the  aggregate,  would  not have a SNRV
Material Adverse Effect. No Governmental  Approval is required to be obtained or
made by or with respect to SNRV or any SNRV  Subsidiary in  connection  with the
execution  and  delivery of this  Agreement or the  consummation  by SNRV of the
transactions contemplated hereby.

<PAGE>

SECTION 3.04.     Litigation; Compliance with Laws.

(a) There are: (i) no claims,  actions,  suits,  investigations  or  proceedings
pending  or,  to the  knowledge  of SNRV,  threatened  against,  relating  to or
affecting  SNRV or the SNRV  Subsidiaries,  the  business,  the  assets,  or any
employee,  officer, director,  stockholder, or independent contractor of SNRV or
the SNRV  Subsidiaries  in their  capacities as such,  and (ii) no orders of any
Governmental  Entity  or  arbitrator   outstanding  against  SNRV  or  the  SNRV
Subsidiaries,  the business,  the assets,  or any employee,  officer,  director,
stockholder, or independent contractor of SNRV or the SNRV Subsidiaries in their
capacities as such,  or that could  prevent or enjoin,  or delay in any respect,
consummation of the transactions  contemplated hereby.  Section 3.12 of the SNRV
Disclosure  Schedule includes a description of all pending or threatened claims,
actions,  suits,  investigations  or  proceedings  involving  SNRV  or the  SNRV
Subsidiaries,  the business,  the assets,  or any employee,  officer,  director,
stockholder or independent  contractor of SNRV or the SNRV Subsidiaries in their
capacities as such.

(b) SNRV and the SNRV  Subsidiaries  have  complied and are in compliance in all
material  respects with all Laws applicable to SNRV, any Subsidiary of SNRV, its
business or its assets.  Neither  SNRV nor the SNRV  Subsidiaries  has  received
notice from any Governmental Entity or other Person of any material violation of
Law  applicable to SNRV, any of the SNRV  Subsidiaries,  their business or their
assets.  SNRV and the SNRV  Subsidiaries  have  obtained  and hold all  required
Licenses  (all of which  are in full  force  and  effect)  from  all  Government
Entities  applicable to SNRV,  the SNRV  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 SNRV, threatened to revoke
or limit any such License.

ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF FOKI

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

SECTION 4.01.     Organization of FOKI; Authority.

         FOKI is a  corporation  duly  organized,  validly  existing and in good
standing under the laws of the State of Oklahoma and has all requisite corporate
power and  corporate  authority  to enter  into the  Transaction  Documents,  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 by FOKI, the execution, delivery and performance by FOKI of
the Transaction Documents and the consummation of the transactions  contemplated
hereby and thereby have been duly authorized by all necessary  corporate  action
on the part of FOKI, including, without limitation, the approval of the board of
directors  of FOKI.  The  Transaction  Documents  have  been duly  executed  and
delivered by FOKI and,  assuming  that the  Transaction  Documents  constitute a
valid and  binding  obligation  of SNRV and Merger Sub,  constitute  a valid and
binding obligation of FOKI. FOKI is duly qualified or licensed to do business as
a foreign  corporation 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 FOKI Material Adverse Effect. FOKI has heretofore  delivered or made available
to SNRV complete and correct copies of the articles of incorporation and by-laws
of FOKI, the minute books and stock transfer records of FOKI, as in effect as of
the  date of this  Agreement.  FOKI is not in  violation  of its  organizational
documents.

<PAGE>

SECTION 4.02.     Capitalization.

(a) The authorized and outstanding capital stock of FOKI is set forth in Section
4.02(a) of the FOKI Disclosure Schedule ( the "FOKI Capital Stock").  All of the
outstanding shares of the FOKI Capital Stock are validly issued,  fully paid and
non-assessable.  To FOKI's  knowledge,  none of the  outstanding  shares of FOKI
Capital  Stock or other  securities  of FOKI was issued in violation of any Law,
including,  without limitation,  state and federal securities laws. There are no
Liens on or with respect to any outstanding shares of FOKI Capital Stock.

(b) There are no outstanding:  (i) securities  convertible  into or exchangeable
for FOKI Capital  Stock;  (ii) options,  warrants or other rights to purchase or
subscribe for FOKI Capital Stock; or (iii) contracts,  commitments,  agreements,
understandings  or arrangements of any kind relating to the issuance of any FOKI
Capital  Stock,  any such  convertible  or  exchangeable  securities or any such
options,  warrants or rights.  There is no  outstanding  right,  option or other
agreement  of any kind to purchase or  otherwise  to receive  from FOKI,  or any
stockholder of FOKI, any ownership interest in FOKI, and there is no outstanding
right or security  of any kind  convertible  into such  ownership  interest.  To
FOKI's  knowledge,  there  are  no  voting  trusts,  proxies  or  other  similar
agreements or  understandings  with respect to the shares of FOKI Capital Stock.
There are no obligations, contingent or otherwise, of FOKI to repurchase, redeem
or otherwise  acquire any shares of FOKI Capital Stock or to provide funds to or
make any investment (in the form of a loan,  capital  contribution or otherwise)
in any other Person.  There are no accrued and unpaid  dividends with respect to
any outstanding shares of FOKI Capital Stock.

SECTION 4.03.     No Violation; Consents and Approvals.

         The execution and delivery by FOKI of the  Transaction  Documents  does
not, and the  consummation of the transactions  contemplated  hereby and thereby
and  compliance  with the terms hereof and thereof 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 articles of  incorporation or by-laws of FOKI, (b) any Laws
applicable  to FOKI or the  property or assets of FOKI,  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 FOKI under,  any Contracts to
which  FOKI is a party  or by  which  FOKI or any of its  assets  may be  bound,
except,  in the case of clauses (b) and (c), for such  conflicts,  violations or
defaults as to which requisite waivers or consents will have been obtained prior
to the Closing or which,  individually  or in the  aggregate,  would not have an
FOKI Material  Adverse  Effect.  Except as set forth in Section 4.04 of the FOKI
Disclosure Schedule, no Governmental Approval is required to be obtained or made
by or with  respect  to FOKI or any  FOKI  Subsidiary  in  connection  with  the
execution  and  delivery of this  Agreement or the  consummation  by FOKI of the
transactions  contemplated  hereby,  except  where the  failure  to obtain  such
Governmental Approval would not, individually or in the aggregate,  have an FOKI
Material Adverse Effect.

<PAGE>

SECTION 4.04.     Litigation; Compliance with Laws.

(a) Except as would not have a FOKI Material  Adverse Effect,  there are: (i) no
claims,  actions,  suits,  investigations  or  proceedings  pending  or,  to the
knowledge  of FOKI,  threatened  against,  relating to or  affecting  FOKI,  its
business,  its assets,  or any  employee,  officer,  director,  stockholder,  or
independent  contractor of FOKI in their  capacities as such, and (ii) no orders
of any  Governmental  Entity or arbitrator  are  outstanding  against FOKI,  its
business,  its assets,  or any  employee,  officer,  director,  stockholder,  or
independent  contractor  of FOKI in  their  capacities  as such,  or that  could
prevent or enjoin,  or delay in any respect,  consummation  of the  transactions
contemplated  hereby.  Section 4.04 of the FOKI Disclosure  Schedule  includes a
description  of  all  claims,  actions,  suits,  investigations  or  proceedings
involving FOKI, its business,  its assets, or any employee,  officer,  director,
stockholder or independent contractor of FOKI in their capacities as such.

(b) Except as would not have an FOKI Material Adverse Effect,  FOKI has complied
and is in compliance in all material  respects with all Laws applicable to FOKI,
its business or its assets.  FOKI 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.  FOKI has obtained and holds all required  Licenses (all
of which are in full force and effect) from all Government  Entities  applicable
to it, its business or its assets.  No  violations  are or have been recorded in
respect of any such License and no proceeding  is pending,  or, to the knowledge
of FOKI threatened to revoke or limit any such License.

ARTICLE V
                        COVENANTS RELATING TO CONDUCT OF
                           BUSINESS PENDING THE MERGER

SECTION 5.01.     Conduct of the Business Pending the Merger.

(a) During the period from the date of this Agreement and  continuing  until the
Effective  Time, SNRV agrees as to itself and the SNRV  Subsidiaries,  that SNRV
shall not, and shall cause the SNRV  Subsidiaries not to, engage in any business
whatsoever  other than in connection with the  consummation of the  transactions
contemplated by this Agreement, and shall use commercially reasonable efforts to
preserve  intact its business and assets,  maintain its assets in good operating
condition and repair  (ordinary wear and tear excepted),  retain the services of
its  officers,   employees  and  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 its business,  unless,  in any case, FOKI consents  otherwise in
writing.

(b) During the period from the date of this Agreement and  continuing  until the
Effective Time, FOKI agrees that, other than in connection with the consummation
of the transactions  contemplated hereby, it shall carry on its business only in
the ordinary course of business consistent with past practice,  use commercially
reasonable efforts to preserve intact its 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, SNRV consents  otherwise in
writing;  provided  that  FOKI  may take any and all of the  actions  listed  in
Schedule 5.01(b) of the FOKI Disclosure  Schedules at any time prior to or after
the date of this Agreement without the consent of SNRV.

<PAGE>

(c) During the period from the date of this Agreement and  continuing  until the
Effective  Time,  each of FOKI and SNRV agrees as to itself and, with respect to
SNRV, the SNRV Subsidiaries, respectively, that except as expressly contemplated
or permitted  by this  Agreement,  as  disclosed in Section  5.01(c) of the FOKI
Disclosure Schedule or the SNRV Disclosure  Schedule,  as applicable,  or to the
extent that the other party shall otherwise consent in writing:

(i) It shall promptly  advise the other party hereto in writing of any change in
the condition (financial or otherwise),  operations or properties, businesses or
business  prospects of such party or any of its subsidiaries  which would result
in a SNRV Material Adverse Effect or FOKI Material  Adverse Effect,  as the case
may be.

SECTION 5.02.     No Action.

         During the period from the date of this Agreement and continuing  until
the Effective  Time, each of FOKI and SNRV agrees as to itself and, with respect
to SNRV, the SNRV Subsidiaries,  respectively, that it shall not, and SNRV shall
not permit any of the SNRV  Subsidiaries to, take or agree or commit to take any
action,  (i) that is  reasonably  likely to make any of its  representations  or
warranties  hereunder  inaccurate;  or (ii) that is  prohibited  pursuant to the
provisions of this Article V.

ARTICLE VI
                              ADDITIONAL AGREEMENTS

SECTION 6.01.     Preparation of Notice to FOKI Stockholders.

         If  required by  statute,  FOKI agrees that as promptly as  practicable
following the date of this  Agreement it shall prepare a notice to  stockholders
describing  the  Merger  (the  "FOKI  Notice").   FOKI  shall  use  commercially
reasonable  efforts to cause the FOKI Notice to be mailed to its stockholders at
the earliest practicable date following such filing.

SECTION 6.02.     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 full access, upon
reasonable  notice and during normal business hours, to such party's  facilities
and the financial,  legal,  accounting and other  representatives  of such party
with knowledge of the business and the assets of such party and, upon reasonable
notice, shall be furnished all relevant documents, records and other information
concerning  the  business,  finances  and  properties  of  such  party  and  its
subsidiaries  that the other  party  and its  respective  counsel,  accountants,
representatives and agents, may reasonably request. No investigation pursuant to
this Section 6.02 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 Merger; it being understood that the  investigation  will be made
for  the  purposes  among  others  of the  board  of  directors  of  each  party
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.

<PAGE>

SECTION 6.03.     No Shop; Acquisition Proposals.

         From  the  date  hereof  until  the  Effective   Time  or  the  earlier
termination  of this  Agreement,  neither  FOKI nor SNRV  shall,  nor shall they
authorize or permit any of their respective officers,  directors or employees or
Subsidiaries or any investment banker, financial advisor,  attorney,  accountant
or other  representative  retained  by it to,  solicit,  initiate  or  encourage
(including  by way of  furnishing  information),  or take any  other  action  to
facilitate,  any inquiries or the making of any proposal which  constitutes,  or
may  reasonably  be expected to lead to, any Takeover  Proposal (as  hereinafter
defined),  or  negotiate  with  respect  to,  agree to or endorse  any  Takeover
Proposal  (except in any case if the board of directors or special  committee of
SNRV or FOKI,  as the case may be,  determines  in good  faith,  based  upon the
written  opinion of its outside legal  counsel,  that the failure to do so would
constitute  a breach of the  fiduciary  duties  of the SNRV' or FOKI's  board of
directors or special  committee,  as the case may be, to its stockholders  under
applicable  law). FOKI shall promptly advise SNRV and SNRV shall promptly advise
FOKI,  as the case may be,  orally  and in  writing  of any  such  inquiries  or
proposals  and shall also  promptly  advise SNRV or FOKI, as the case may be, of
any developments or changes regarding such inquiries or proposals. FOKI and SNRV
shall immediately  cease and cause to be terminated any existing  discussions or
negotiations  with any persons (other than FOKI,  SNRV and Merger Sub) conducted
heretofore  with  respect to any Takeover  Proposal.  FOKI and SNRV agree not to
release  (by waiver or  otherwise)  any third party from the  provisions  of any
confidentiality or standstill agreement to which FOKI or SNRV is a party.

SECTION 6.04.     Legal Conditions to Merger; Reasonable Efforts.

         Each of FOKI,  SNRV and Merger Sub shall  take all  reasonable  actions
necessary to comply promptly with all legal requirements which may be imposed on
itself with respect to the Merger 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 Merger.  Each of
FOKI,  SNRV and Merger Sub will, and SNRV will cause the SNRV  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 FOKI, SNRV or any of the SNRV Subsidiaries in
connection with the Merger or the taking of any action  contemplated  thereby or
by this Agreement.

SECTION 6.05.     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
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 Merger.

<PAGE>

SECTION 6.06.     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 6.07.     Tax Treatment.

         SNRV and FOKI shall each report the Merger as a tax-free reorganization
except  for  "boot"  received  and shall not  take,  and shall use  commercially
reasonable efforts to prevent any of their respective Subsidiaries or affiliates
from taking,  any actions that could prevent the Merger from qualifying,  as tax
free under the  provisions  of Section 351 of the Code or Section  368(a) of the
Code.

SECTION 6.08.     Tax Matters.

(a) FOKI shall  prepare and file on a timely basis all Tax Returns which are due
to be filed with respect to FOKI (giving  effect to any extension of time) on or
prior to the Closing Date.  SNRV 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 FOKI 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.

(b) From the date hereof until the Effective Time or the earlier  termination of
this  Agreement,  without  the prior  written  consent of the other  party or if
required in the opinion of counsel,  neither  SNRV nor FOKI shall make or change
any election, change an annual accounting period, adopt or change any accounting
method,  file any amended Tax Return,  enter into any closing agreement,  settle
any Tax  claim or  assessment  relating  to it,  surrender  any right to claim a
refund of Taxes,  consent to any  extension or waiver of the  limitation  period
applicable  to any Tax  claim or  assessment  relating  to it, or take any other
action relating to the filing of any Tax Return or the payment of any Tax.

SECTION 6.09.     Supplements to Schedules.

         Prior to the  Closing,  FOKI 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. No supplement to or amendment of
the  disclosure  schedule  made pursuant to this Section 6.09 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.  Prior to the
Closing,  SNRV 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  6.09  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.

<PAGE>

SECTION  6.10     Conditional Warrant.

         SNRV shall issue a conditional  warrant to FOKI shareholders  providing
that in the event  that the SNRV stock is not  trading on the first  anniversary
date of the closing hereunder at an average market price per share (based on the
prior  30 day  average)  equal to the  closing  price  per  share on the date of
closing hereunder, then such warrant shall be exercisable for 90 days thereafter
by the  assignees  (former  FOKI  shareholders)  at a price  equal to 50% of the
market  closing  price on the  anniversary  date of the  closing  (on a cashless
basis) for an amount of shares  equal to 50% of the SNRV shares  distributed  in
the merger to former FOKI  shareholders.  As long as at least 95% of the working
interests are included,  the cash payments of $1,000,000  and $250,000  expenses
shall not be adjusted.

SECTION 6.11      Adjustment for working interest holdouts.

         In the event that any  working  interest  holder on the FOKI  leases in
Oklahoma  (Rogers  County)  refuses or fails to  participate  in this  Agreement
through  assignment  to FOKI,  then all other  conditions  being met, the merger
shall be consummated so long as FOKI holds at least 80% of the working  interest
in the Rogers County,  Oklahoma  leases and the number of shares issuable in the
merger and the cash dividend to FOKI  shareholders  shall be reduced  prorata by
the % amount of working interest not owned by FOKI at closing.

ARTICLE VII
                            CONDITIONS OF THE MERGER

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

         The  respective  obligations of each party to effect the Merger 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)  Stockholder  Approval.  This Agreement  shall have been duly adopted by the
holders of (i) a majority of the  outstanding  shares of FOKI Common Stock;  and
(ii) a majority of the outstanding shares of capital stock of Merger Sub.

(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 Merger 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.

<PAGE>

SECTION 7.02.     Additional Conditions of Obligations of SNRV.

         The  obligations  of SNRV and  Merger  Sub to effect the Merger and the
other  transactions  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 SNRV:

(a) Representations  and Warranties.  The representations and warranties of FOKI
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 FOKI.  FOKI  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.

(c) No  Material  Adverse  Change  to FOKI.  From the date  hereof  through  and
including  the Effective  Time, no event shall have occurred  which would have a
FOKI Material Adverse Effect.

(d) Third Party  Consents.  FOKI 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 FOKI 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) Dissenters' Rights.  Holders of not more than 10% of the aggregate number of
shares of FOKI Common Stock shall have elected to exercise any appraisal  rights
or similar rights within the law of the State of Oklahoma,  which demand was not
withdrawn or terminated as of the Closing Date.

(g) Due Diligence.  SNRV shall have conducted a due diligence  investigation and
shall  have  received a new  reserve  report  within ten days after date  hereof
sufficient to satisfy SNRV as to any and all issues.  Unless  written  notice to
the contrary is given by SNRV to FOKI on or before the 10th day hereafter,  SNRV
shall be deemed to have accepted its due diligence as satisfactory.

(h)      Deliveries.

         At the Closing, FOKI shall have delivered to SNRV:

<PAGE>

         a certificate,  dated the Closing Date, signed on behalf of FOKI by the
Chief  Executive  Officer  of  FOKI,  certifying  as to the  fulfillment  of the
conditions specified in subsections (a), (b) and (c) of this Section 7.02;

(i)      the consents set forth in Section 4.04 of the FOKI Disclosure Schedule;

(ii) true,  correct and complete copies of (1) the certificate of  incorporation
or other charter document, as amended to date, of FOKI, certified as of a recent
date by the  Secretary  of State or other  appropriate  official of the state or
other  jurisdiction of  incorporation  of FOKI, (2) the by-laws or other similar
organizational document of FOKI, and (3) resolutions duly and validly adopted by
the Board of Directors and the stockholders of FOKI evidencing the authorization
of the execution and delivery of this Agreement, the other Transaction Documents
to which it is a party and the  consummation  of the  transactions  contemplated
hereby and thereby, in each case,  accompanied by a certificate of the Secretary
or Assistant  Secretary of FOKI,  dated as of the Closing Date,  stating that no
amendments  have been made  thereto  from the date  thereof  through the Closing
Date; and

(iii) good standing  certificates  for FOKI from the Secretary of State or other
appropriate  official  of  their  respective  states  or other  jurisdiction  of
incorporation and from the Secretary of State or other  appropriate  official of
each  other  jurisdiction  in  which  the  operation  of the  business  in  such
jurisdiction  requires FOKI to qualify to do business as a foreign  corporation,
in each case dated as of a recent date prior to the Closing Date;

(iv)  Financial   Statements.   audited  financial   statements  of  FOKI  dated
immediately  after the completion of FOKI's  capitalization  and contribution of
assets.

SECTION 7.03.     Additional Conditions of Obligations of FOKI.

         The obligation of FOKI to effect the Merger and the other  transactions
contemplated  by this Agreement is also subject to the  satisfaction at or prior
to the Closing Date of the  following  additional  conditions  unless  waived by
FOKI:

(a) Representations  and Warranties.  The representations and warranties of SNRV
and  Merger  Sub set forth in this  Agreement  shall be true and  correct in all
material respects (except for those  representations and warranties qualified by
materiality)  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 SNRV and Merger Sub. SNRV and Merger Sub shall
have performed in all material  respects all conditions,  covenants,  agreements
and  obligations  required to be  performed  by them under this  Agreement at or
prior to the Closing Date.

(c) No  Material  Adverse  Change to SNRV or Merger  Sub.  From the date  hereof
through and  including the  Effective  Time, no event shall have occurred  which
would have a SNRV Material Adverse Effect.

<PAGE>

(d) Third Party  Consents.  SNRV 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 SNRV 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) Closing of  Financing.  SNRV shall have  consummated a financing in form and
amount  satisfactory to SNRV, to fund the cash necessary to fulfill the terms of
this agreement at closing.

(g)      Deliveries.

         At the Closing, SNRV shall have delivered to FOKI:

(i)  certificates,  dated the Closing Date, signed on behalf of each of SNRV and
Merger Sub by the  President  of each of SNRV and Merger,  certifying  as to the
fulfillment of the conditions  specified in subsections (a), (b) and (c) of this
Section 7.03;

(ii)     the consents set forth in Section 3.04 of the SNRV Disclosure Schedule;

(iii) true,  correct and complete copies of (1) the certificate of incorporation
or other charter  document,  as amended to date, of each of SNRV and Merger Sub,
certified  as of a recent date by the  Secretary  of State or other  appropriate
official of the state or other  jurisdiction of  incorporation  of such company,
(2) the  by-laws or other  similar  organizational  document of each of SNRV and
Merger  Sub,  and (3)  resolutions  duly and  validly  adopted  by the  Board of
Directors of each of SNRV and Merger Sub  evidencing  the  authorization  of the
execution and delivery of this  Agreement,  the other  Transaction  Documents to
which it is a party and the consummation of the transactions contemplated hereby
and thereby, in each case, accompanied by a certificate of the Secretary of each
of SNRV and Merger Sub, dated as of the Closing Date, stating that no amendments
have been made thereto from the date thereof through the Closing Date; and

(iv) good  standing  certificates  for SNRV and Merger Sub from the Secretary of
State  or  other  appropriate  official  of  their  respective  states  or other
jurisdiction  of  incorporation  and  from  the  Secretary  of  State  or  other
appropriate  official of each other  jurisdiction  in which the operation of the
business  in such  jurisdiction  requires  SNRV to qualify to do  business  as a
foreign corporation, in each case dated as of a recent date prior to the Closing
Date.

(v) Cashiers  funds in the amount of $1,000,000 to be  distributed  prorata as a
dividend  to the  holders  of FOKI  common  stock  immediately  prior to closing
through an Escrow Agent designated by FOKI.

<PAGE>

(vi) Cashiers  funds in the amount of $250,000 to pay the costs and fees related
to the transaction,  including consulting fees, legal and accounting, to be paid
in accordance with Schedule 7.03(g) to be appended hereafter.

ARTICLE VIII
                                   TERMINATION

SECTION 8.01.     Termination.

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

(a)      by mutual consent of the boards of directors of SNRV and FOKI; or

(b) by SNRV upon written notice to FOKI, if: (A) any condition to the obligation
of SNRV to close  contained  in Article  VII hereof  has not been  satisfied  by
closing date  (unless such failure is the result of SNRV's  breach of any of its
representations,  warranties,  covenants or agreements  contained herein) or (B)
the SNRV stockholders do not approve the Merger; or

(c) by FOKI upon written notice to SNRV, if: (A) any condition to the obligation
of FOKI to close  contained in Article VII hereof has not been  satisfied by the
Closing Date  (unless such failure is the result of FOKI's  breach of any of its
representations,  warranties,  covenants or agreements contained herein); or (B)
the FOKI stockholders do not approve the Merger; or

(d) by SNRV if the board of directors or special committee of SNRV 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 SNRV board of directors or special committee to the SNRV
stockholders under applicable law; or

(e) by FOKI if the board of directors or special committee of BBIs 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 FOKI board of directors or special committee to the FOKI
stockholders under applicable law.

SECTION 8.02.     Fees and Expenses.

(a) Whether or not the Merger is consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring such expense, and, in connection therewith,  each of
SNRV and FOKI shall pay,  with its own funds and not with funds  provided by the
other party,  any and all property or transfer  taxes imposed on such party.  In
the event the  merger is  completed,  from the  $250,000  allocated  to pay FOKI
consulting,  accounting and legal, SNRV legal fees shall be paid in an amount of
$50,000.

<PAGE>

(b) SNRV shall pay a finder's fee in restricted  stock,  in the event the merger
is consummated  in the amount of 5% of total shares issued to FOKI  shareholders
to Square Ten, LLC.

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.

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 SNRV or Merger Sub, to:

                           Sun River Energy, Inc.
                           10200 W. 44th Ave., 210-E
                           Wheat Ridge, CO 80033
                           Attention:  Wesley F. Whiting, President
                           Fax: (303) 940-2089

                           with a copy to (which shall not constitute notice):
                           Michael Littman, Esq.
                           7609 Ralston Road
                           Arvada, CO  80002
                           Fax:  (303) 431-1567

                           if to FOKI, to:

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

<PAGE>

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.

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 Delaware  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 any court of the State of Colorado or any federal
court sitting in Colorado 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  Colorado  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.

<PAGE>

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
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 Merger 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 interest 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.

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

<PAGE>

         "FOKI  Capital  Stock" shall have the meaning set forth in Section 4.02
of this Agreement.

         "FOKI Common Stock" shall have the meaning set forth in the recitals to
this Agreement.

         "FOKI  Material   Adverse  Effect"  shall  mean  an  event  or  change,
individually  or in the  aggregate  with  other  events or  changes,  that could
reasonably  be expected to have a material  adverse  effect on (a) the business,
properties,   prospects,  condition  (financial  or  otherwise)  or  results  of
operations of FOKI taken as a whole (other than those events, changes or effects
resulting  from  general  economic  conditions  or the industry in which FOKI is
engaged  generally)  or (b) the ability of FOKI to consummate  the  transactions
contemplated hereby.

         "FOKI Stockholders" means the holders of common stock in FOKI.

          "Certificate  of Merger"  shall have the  meaning set forth in Section
1.01 of this Agreement.

         "Certificates"  shall have the meaning set forth in Section  1.05(a) of
this Agreement.

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

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

         "SNRV  Common  Stock  Equivalents"  shall have the meaning set forth in
Section 3.02 of this Agreement.

         "SNRV  Material   Adverse  Effect"  shall  mean  an  event  or  change,
individually,  or in the  aggregate  with other  events or  changes,  that could
reasonably  be expected to have a material  adverse  effect on (a) the business,
properties,   prospects,  condition  (financial  or  otherwise)  or  results  of
operations of SNRV and the SNRV Subsidiaries  taken as a whole (other than those
events,  changes or effects  resulting from general  economic  conditions or the
industry  in which  SNRV is  engaged  generally)  or (b) the  ability of SNRV to
consummate the transactions contemplated hereby.

         "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.

         "Contingent  Obligation"  as to any Person  shall mean the undrawn face
amount of any letters of credit  issued for the account of such Person and shall
also mean any  obligation  of such Person  guaranteeing  or having the  economic
effect of guaranteeing any Indebtedness, leases, dividends, letters of credit or
other  obligations  ("Primary  Obligations")  of any other Person (the  "Primary
Obligor") in any manner,  whether  directly or  indirectly,  including,  without
limitation,  any obligation of such Person,  whether or not  contingent,  (a) to
purchase any such Primary  Obligation  or any  property  constituting  direct or
indirect security therefore, (b) to advance or supply funds (i) for the purchase
or payment of any such Primary Obligation or (ii) to maintain working capital or
equity  capital of the Primary  Obligor or otherwise  to maintain the  financial
condition  or  solvency  of  the  Primary  Obligor,  (c) to  purchase  property,
securities  or services  primarily for the purpose of assuring the obligee under
any such  Primary  Obligation  of the  ability  of the  Primary  Obligor to make
payment of such Primary Obligation,  or (d) otherwise to assure or hold harmless
the obligee  under such  Primary  Obligation  against  loss in respect  thereof;
provided,  however,  that the  term  Contingent  Obligation  shall  not  include
endorsements  of instruments for deposit or collection in the ordinary course of
business.

<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 in shares of Sun River Energy,
Inc. Common Stock computed as follows:

$8,750,000  / (50% of the  closing  price of SNRV on the date of  Agreement  and
Plan) = a / 100% = b (number of shares of SNRV  allocable  per 1%  ownership  of
FOKI) each  Shareholder of FOKI shall receive SNRV shares equal to b x % of FOKI
ownership (immediately pre-closing)

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

         "Effective  Time" shall have the  meaning set forth in Section  1.01 of
this Agreement.

         "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.

         "Indebtedness"  shall  mean as to any Person and  whether  recourse  is
secured by or is otherwise available against all or only a portion of the assets
of such Person and whether or not contingent, but without duplication: (a) every
obligation  of such  Person for money  borrowed;  (b) every  obligation  of such
Person  evidenced  by bonds,  debentures,  notes or other  similar  instruments,
including  obligations  incurred in connection with the acquisition of property,
assets or  businesses;  (c) every  reimbursement  obligation of such Person with
respect to letters of credit,  bankers' acceptances or similar facilities issued
for the account of such Person;  (d) every  obligation  of such Person issued or
assumed as the  deferred  purchase  price of  property  or  services  (including
securities repurchase agreements but excluding trade accounts payable or accrued
liabilities  arising in the ordinary  course of business which are not more than
120 days  overdue  or which are being  contested  in good  faith by  appropriate
proceedings  and for which  adequate  reserves  have been provided in accordance
with  GAAP);  (e)  every  Capital  Lease  Obligation  of  such  Person;  (f) any
obligation  of such Person to pay any  discount,  interest,  fees,  indemnities,
penalties,  recourse,  expenses or other amounts in connection with any sales by
such Person unless such sales are on a non-recourse basis (as to collectibility)
of (i)  accounts or general  intangibles  for money due or to become  due,  (ii)
chattel  paper,  instruments  or  documents  creating or  evidencing  a right to
payment of money or (iii)  other  receivables,  whether  pursuant  to a purchase
facility or otherwise,  other than in  connection  with the  disposition  of the
business  operations  of  such  Person  relating  thereto  or a  disposition  of
defaulted  receivables  for collection and not as a financing  arrangement;  (g)
every obligation of such Person under any forward  contract,  futures  contract,
swap,  option or other financing  agreement or arrangement  (including,  without
limitation, caps, floors, collars and similar agreements), the value of which is
dependent upon interest rates,  currency  exchange  rates,  commodities or other
indices  (a  "derivative   contract");   (h)  every  obligation  in  respect  of
Indebtedness of any other entity (including any partnership in which such Person
is a general  partner) to the extent that such Person is liable  therefore  as a
result of such Person's  ownership  interest in or other  relationship with such
entity,  except to the extent that the terms of such  Indebtedness  provide that
such  Person  is not  liable  therefore  and such  terms are  enforceable  under
applicable law; and (i) every Contingent  Obligation of such Person with respect
to Indebtedness of another Person.

<PAGE>

         "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.

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

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

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

         "Post-Closing  Tax Period" means a taxable period (or portion  thereof)
that begins after the Closing Date.

         "SEC"  shall  have  the  meaning  set  forth  in  Section  3.05 of this
Agreement.

         "Surviving  Corporation"  shall have the  meaning  set forth in Section
1.02(a) of this Agreement.

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

         "Takeover  Proposal"  shall mean any  proposal for a tender or exchange
offer, merger,  consolidation,  sale of all or substantially all of such party's
assets,  sale of in excess of fifteen  percent of the shares of capital stock or
other  business  combination  involving  such party or any  proposal or offer to
acquire in any manner a  substantial  equity  interest  (including  any interest
exceeding fifteen percent of the equity outstanding) in, or all or substantially
all of the assets of, such party  other than the  transactions  contemplated  by
this Agreement.

         "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 interest,  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.

<PAGE>

         "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.

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

         "Transaction Documents" shall mean this Agreement.

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

                                                     SUN RIVER ENERGY, INC.

                                                     By:
                                                          Name:
                                                          Title:

                                                     SRE ACQUISITION CORP.

                                                     By:
                                                          Name:
                                                          Title:

                                                    FEDERATED OK INVESTORS, INC.

                                                     By:
                                                          Name:
                                                          Title:Exhibit 4.12 

This warrant and the underlying
shares of Common Stock represented by this warrant have not been registered under the
Securities Act of 1933 (the “Act”), and are “restricted securities” as
that term is defined in Rule 144 under the Act. The securities may not be offered for
sale, sold or otherwise transferred except pursuant to an effective registration statement
under the Act, or pursuant to an exemption from registration under the Act, the
availability of which is to be established to the satisfaction of the Company. 

        Warrant

No. PC2006-1(5.00)-# ________ 

                                  ***SECURITY WITH ADVANCED TECHNOLOGY, INC. ***

WARRANT TO PURCHASE
SHARES OF COMMON STOCK 

Warrant to Purchase
__________ Shares
 (subject to adjustment as set forth herein)  

Exercise Price $5.00
Per Share 
(subject to adjustment as set forth herein)  

VOID AFTER 3:00 P.M.,
MOUNTAIN TIME, ON SEPTEMBER 1, 2011 

        THIS CERTIFIES THAT
[________________________________], is entitled to purchase from Security With Advanced
Technology, Inc., a Colorado corporation (hereinafter called the “Company”) at
any time after April 3, 2007, but before 5:00 P.M., Denver Time, on September 1, 2011, at
the purchase price of $5.00 per share (the “Exercise Price”), the number of
shares (the “Shares”) of the Company’s common stock (the “Common
Stock”) set forth above. The number of Shares purchasable upon exercise of this
Warrant and the Exercise Price per Share shall be subject to adjustment from time to time
as set forth in Section 4 below.

	 	
Section
1.      Definitions.  

        The
following terms used in this agreement shall have the following meanings (unless
otherwise expressly provided herein):  

	 	
The
"Act."    The Securities Act of 1933, as amended.  

	 	
The
"Commission."    The Securities and Exchange Commission.  

	 	
The
“Company.”    Security With Advanced Technology, Inc.  

	 	
“Common
Stock.”    The Company’s Common Stock. 

	 	
"Current
Market Price."    The Current Market Price shall be determined as follows:  

     	(a)	
          if
the security at issue is listed on a national securities exchange or admitted to unlisted
trading privileges on such an exchange or quoted on either the National Market
System or the Small Cap Market of the automated quotation service operated by
The Nasdaq Stock Market, Inc., the current market price shall be the last
reported sale price of that security on such exchange or system on the day for which the
Current Market Price is to be determined as reported by Bloomberg Financial
Markets or a comparable reporting service of national reputation selected by
the Company if Bloomberg Financial Markets is not then reporting closing bid
prices of such security (collectively, “Bloomberg), or, if no such sale is
made on such day, the average of the highest closing bid and lowest asked price for
such day on such exchange or system as reported by Bloomberg; or

          

    
                         (b)        if
the security at issue is not so listed or quoted or admitted                to unlisted
trading privileges, the Current Market Price shall be                the average of the
last reported highest bid and lowest asked prices                quoted on the Electronic
Bulletin Board operated by The Nasdaq Stock Market,                Inc., as reported by
Bloomberg, or, if not so quoted, then by the                National Quotation Bureau,
Inc. on the last business day prior to                the day for which the Current
Market Price is to be determined; or  

    
                   (c)        if
the security at issue is not so listed or quoted or admitted                to unlisted
trading privileges and bid and asked prices are not                reported, the current
market value shall be determined in such                reasonable manner as may be
prescribed from time to time by the Board of                Directors of the Company,
subject to the objection and arbitration                procedure as described in Section
6 below.  

        “Exercise
Date.”   April 3, 2007.  

        "Exercise
Price."    $5.00 per Share, as modified in accordance with Section 4,
below.  

        “Expiration
Date.”   September 11, 2011.  

        “Holder”or
“Warrantholder.”     The person to whom this Warrant is
issued and any valid transferee thereof pursuant to Section 3.1 below.  

        "NASD."
   The National Association of Securities Dealers, Inc.  

        "Nasdaq."
   The automated quotation system operated by the Nasdaq Stock Market,
Inc.  

        “Termination
of Business.”    Any sale, lease or exchange of all, or substantially all, of the
Company’s  assets or business or any dissolution, liquidation or winding up of the
Company.  

        “Trading
Day”    shall mean any day on which securities are generally traded during normal
business hours on the Nasdaq National Market or on the principal securities exchange or
trading market where the Common Stock is listed or traded, or if the Common Stock is not
so listed or traded, any day on which securities are generally traded during normal
business hours on the Nasdaq National Market. 

        
“Warrants.”   
The warrants issued in accordance with the terms of this Agreement and any Warrants issued
in substitution for or replacement of such warrants, including those evidenced by a
warrant or warrants originally issued or issued upon division, exchange, substitution or
transfer pursuant to this Agreement. 

        “Warrant
Shares.”    The Common Stock purchasable upon exercise of a Warrant
including the Common Stock underlying unexercised portions of a Warrant. 

        Section
2.     Term of Warrants; Exercise of Warrant. 

        
2.1.       Exercise
of Warrant.   Subject to the terms of this           Agreement, the Holder shall have
the right, at any time prior to 5:00 p.m.,           Mountain Time, on the Expiration
Date, to purchase from the Company up to the           number of fully paid and
non-assessable Shares to which the Holder may at the           time be entitled to
purchase pursuant to this Agreement, upon surrender to the           Company, at its
principal office, of the Warrant to be exercised, together with           the purchase
form, or the Warrant Conversion Exercise Form in the case of a           warrant
conversion pursuant to Section 2.4 herein, duly filled in and signed,           and upon
payment to the Company of the Exercise Price for the number of Shares           in
respect of which such Warrants are then exercised, but in no event for less
          than 100 Shares (unless fewer than an aggregate of 100 shares are then
          purchasable under all outstanding Warrants held by a Holder).  

        2.2.       Payment
of Exercise Price.   Payment of the aggregate           Exercise Price shall be made in
cash or by check, or any combination thereof.  

        2.3.       Issuance
of Shares.   Upon such surrender of the Warrants           and payment of such Exercise
Price as aforesaid, the Company shall issue and           cause to be delivered with all
reasonable dispatch to or upon the written order           of the Holder and in such name
or names as the Holder may designate, a           certificate or certificates for the
number of full Shares so purchased upon the           exercise of the Warrant, together
with cash, as provided in Section 12 hereof,           in respect of any fractional
Shares otherwise issuable upon such surrender.  

        2.4.       Conversion
Right.   In addition to and without limiting the           rights of the Warrantholder
under the terms of the Warrant, the Holder shall           have the right (the “Conversion
Right”) to convert this Warrant or any           portion thereof into Shares as
provided in this Section 2.4 at any time after           the Exercise Date or from time
to time after the Exercise Date but prior to its           expiration.  

        
          (a)                 Upon
exercise of the Conversion Right with respect to a particular number of
          Warrants (the “Converted Warrants”), the Company shall deliver to the
          Holder, without payment by the Holder of any Exercise Price or any cash or
other           consideration, that number of Shares computed using the following
formula:  

			
		X =	Y(A-B)

     A 

	 		
	Where: 	X =	the number of Shares and/or Warrants to be issued to the Holder;

	 		
		Y =	the number of Shares and/or Warrants to be converted under this Warrant;

	 		
		A =	the average of the Current  Market  Price of one share of Common  Stock for the
five  Trading  Days  immediately  preceding  the  Conversion  Date (as  defined
below); and

	 		
		B =	the Share Exercise Price.
			

No fractional Shares shall be
issuable upon exercise of the Conversion Right, and if the number of Shares to be issued
in accordance with the foregoing formula is other than a whole number, the Company shall
pay to the Holder an amount in cash equal to such fraction multiplied by the Current
Market Price. 

        
          (b)                 The
Conversion Right may be exercised by the Holder by the surrender of the           Warrant
at the principal office of the Company or at the office of the           Company’s
stock transfer agent, if any, together with a written statement           specifying that
the Holder thereby intends to exercise the Conversion Right and           indicating the
number of Shares subject to the Warrant which are being           surrendered on the
reverse side of the Warrant, in exercise of the Conversion           Right. Such
conversion shall be effective upon receipt by the Company of the           Warrant, or on
such later date as is specified therein (the “Conversion           Date”), but
not later than the Expiration Date. Certificates for the           Converted Shares
issuable upon exercise of the Conversion Right, together with a           check in
payment of any fractional Warrant Share and, in the case of a partial           exercise
a new Warrant evidencing the Warrant Shares remaining subject to the           Warrant,
shall be issued as of the Conversion Date and shall be delivered to the           Holder
within seven (7) days following the Conversion Date.  

        2.5.                 Upon
receipt of the Warrant by the company as described in Sections 2.1 or           2.4
above, the Holder shall be deemed to be the holder of record of the Shares
          issuable upon such exercise, notwithstanding that the transfer books of the
          Company may then be closed or that certificates representing such Shares may
not           have been prepared or actually delivered to the Holder.  

        Section
3.     Transferability and Form of Warrant 

        3.1.       Limitation
on Transfer.    Any assignment or transfer of a           Warrant shall be made by the
presentation and surrender of the Warrant to the           Company at its principal
office or the office of its transfer agent, if any,           accompanied by a duly
executed Assignment Form. Upon the presentation and           surrender of these items to
the Company, the Company, at its sole expense, shall           execute and deliver to the
new Holder or Holders a new Warrant or Warrants, in           the name of the new Holder
or Holders as named in the Assignment Form, and the           Warrant presented or
surrendered shall at that time be canceled.  

        3.2.       Exchange
of Warrant.    Any Warrant may be exchanged           for another Warrant or Warrants
entitling the Warrantholder to purchase a like           aggregate number of Shares as
the Warrant or Warrants surrendered then entitled           such Warrantholder to
purchase. Any Warrantholder desiring to exchange a Warrant           shall make such
request in writing delivered to the Company, and shall           surrender, properly
endorsed, with signatures guaranteed, the Warrant to be so           exchanged.
Thereupon, the Company shall execute and deliver to the person           entitled thereto
a new Warrant as so requested.  

        3.3.       Mutilated,
Lost, Stolen, or Destroyed Warrant.    In case           the Warrant or Warrants shall
be mutilated, lost, stolen or destroyed, the           Company shall, at the request of
the Warrantholder, issue and deliver in           exchange and substitution for and upon
cancellation of the mutilated Warrant or           Warrants, or in lieu of and
substitution for the Warrant or Warrants lost,           stolen or destroyed, a new
Warrant or Warrants of like tenor and representing an           equivalent right or
interest, but only upon receipt of evidence satisfactory to           the Company of such
loss, theft or destruction of such Warrant and a bond of           indemnity, if
requested, also satisfactory in form and amount, at the           applicant’s cost.
Applicants for such substitute Warrant shall also comply           with such other
reasonable regulations and pay such other reasonable charges as           the Company may
prescribe.  

        3.4.       Form
of Election.    The form of election to purchase Shares           shall be substantially
as set forth in Exhibit A attached hereto. The Warrants           shall be executed on
behalf of the Company by its President or by a Vice           President and attested to
by its Secretary or an Assistant Secretary. A Warrant           bearing the signature of
an individual who was at any time the proper officer of           the Company shall bind
the Company, notwithstanding that such individual shall           have ceased to hold
such officer prior to the delivery of such Warrant or did           not hold such office
on the date of the Warrant is issued. The Warrants shall be           dated as of the
date of signature thereof by the Company either upon initial           issuance or upon
division, exchange, substitution or transfer.  

        Section
4.     Adjustment of Number of Shares and Exercise Price. 

        The
number and kind of securities purchasable upon the exercise of the Warrants and the
Exercise Price shall be subject to adjustment from time to time upon the happening of
certain events, as follows: 

        4.1.                 Adjustments.
   The number of Shares purchasable upon the exercise of           the Warrants shall be
subject to adjustments as follows:  

        
          (a)                      In
case the Company shall (i) pay a dividend in Common Stock or make a
               distribution to its  stockholders in Common Stock, (ii) subdivide its
               outstanding Common Stock, (iii) combine its outstanding  Common Stock
               into a smaller number of shares of Common Stock, or (iv) issue by
classification                of its  Common Stock other securities of the Company, the
number of                Shares purchasable upon exercise of the  Warrants immediately
prior                thereto shall be adjusted so that the Warrantholder shall be
entitled to                receive the kind and number of Shares or other securities of
the Company                which it would have owned or  would have been entitled to
receive                immediately after the happening of any of the events described
               above, had the Warrants been exercised immediately prior to the happening
               of such event or any record  date with respect thereto. Any
               adjustment made pursuant to this subsection 4.1.(a) shall become
               effective immediately after the effective date of such event retroactive
to                the record date, if any, for  such event.  

        
          (b)                      In
case the Company shall issue rights, options, warrants, or convertible
               securities to  all or substantially all holders of its Common Stock,
               without any charge to such holders, entitling them  to subscribe for
               or purchase Common Stock at a price per share which is lower at the record
date                 mentioned below than the then Current Market Price, the number of
               Shares thereafter purchasable upon the  exercise of each Warrant
               shall be determined by multiplying the number of Shares theretofore
purchasable                 upon exercise of the Warrants by a fraction, of which the
numerator                shall be the number of shares of  Common Stock outstanding
               immediately prior to the issuance of such rights, options, warrants or
               convertible securities plus the number of additional shares of Common
Stock                offered for subscription or  purchase, and of which the denominator
               shall be the number of shares of Common Stock outstanding
               immediately prior to the issuance of such rights, options, warrants, or
               convertible securities plus the  number of shares which the aggregate
               offering price of the total number of shares offered would purchase
               at such Current Market Price. Such adjustment shall be made whenever such
               rights, options, warrants, or  convertible securities are issued, and
               shall become effective immediately and retroactively to the  record
               date for the determination of stockholders entitled to receive such
rights,                options, warrants, or  convertible securities.  

        
          (c)                      In
case the Company shall distribute to all or substantially all holders of its
               Common  Stock evidences of its indebtedness or assets (excluding cash
               dividends or distributions out of  earnings) or rights, options,
               warrants, or convertible securities containing the right to subscribe for
               or purchase Common Stock (excluding those referred to in subsection 4.1(b)
               above), then in each case the  number of Shares thereafter
               purchasable upon the exercise of the Warrants shall be determined by
               multiplying the number of Shares theretofore purchasable upon exercise of
               the Warrants by a fraction, of  which the numerator shall be the then
               Current Market Price on the date of such distribution, and of  which
               the denominator shall be such Current Market Price on such date minus the
then                fair value  (determined as provided in subparagraph (e) below of the
               portion of the assets or evidences of  indebtedness so distributed or
               of such subscription rights, options, warrants, or convertible securities
               applicable to one share. Such adjustment shall be made whenever any such
               distribution is made and shall  become effective on the date of
               distribution retroactive to the record date for the determination of
               stockholders entitled to receive such distribution.  

        
          (d)                      No
adjustment in the number of Shares purchasable pursuant to the Warrants shall
               be  required unless such adjustment would require an increase or
               decrease of at least one percent in the  number of Shares then
               purchasable upon the exercise of the Warrants or, if the Warrants are not
then                 exercisable, the number of Shares purchasable upon the exercise of
               the Warrants on the first date  thereafter that the Warrants become
               exercisable; provided, however, that any adjustments which by reason
               of this subsection 4.1(d) are not required to be made immediately shall be
               carried forward and taken  into account in any subsequent adjustment.  

        
          (e)                      Whenever
the number of Shares purchasable upon the exercise of the Warrant is
               adjusted, as  herein provided, the Exercise Price payable upon
               exercise of the Warrant shall be adjusted by  multiplying such
               Exercise Price immediately prior to such adjustment by a fraction, of
which the                 numerator shall be the number of Warrant Shares purchasable
upon the                exercise of the Warrant immediately  prior to such adjustment,
and of                which the denominator shall be the number of Warrant Shares so
               purchasable immediately thereafter.  

        
          (f)                      Whenever
the number of Shares purchasable upon exercise of the Warrants is                adjusted
as  herein provided, the Company shall cause to be promptly                mailed to the
Warrantholder by first class mail,  postage prepaid,                notice of such
adjustment and a certificate of the chief financial officer of                the
 Company setting forth the number of Shares purchasable upon the                exercise
of the Warrants after such  adjustment, a brief statement of                the facts
requiring such adjustment and the computation by which such                adjustment was
made.  

        
          (g)                      For
the purpose of this Section 4.1, the term “Common Stock” shall
               mean (i) the class of  stock designated as the Common Stock of the
               Company at the date of this Agreement, or (ii) any other  class of
               stock resulting from successive changes or reclassifications of such
Common                Stock consisting  solely of changes in par value, or from par value
               to no par value, or from no par value to par value.  In the event
               that at any time, as a result of an adjustment made pursuant to this
Section 4,                the  Warrantholder shall become entitled to purchase any
securities                of the Company other than Common Stock,  (y) if the
               Warrantholder’s right to purchase is on any other basis than that
available                to all holders of  the Company’s Common Stock, the Company
shall                obtain an opinion of an independent investment banking  firm valuing
               such other securities and (z) thereafter the number of such other
securities so                purchasable  upon exercise of the Warrants shall be subject
to                adjustment from time to time in a manner and on terms  as nearly
               equivalent as practicable to the provisions with respect to the Shares
contained                in this  Section (4.)  

        
          (h)                      Upon
the expiration of any rights, options, warrants, or conversion privileges,
               if such  shall have not been exercised, the number of Shares
               purchasable upon exercise of the Warrants, to the  extent the
               Warrants have not then been exercised, shall, upon such expiration, be
               readjusted and shall  thereafter be such as they would have been had
               they been originally adjusted (or had the original  adjustment not
               been required, as the case may be) on the basis of (i) the fact that the
only                shares of  Common Stock so issued were the shares of Common Stock, if
               any, actually issued or sold upon the  exercise of such rights,
               options, warrants, or conversion privileges, and (ii) the fact that such
shares                 of Common Stock, if any, were issued or sold for the consideration
               actually received by the Company upon  such exercise plus the
               consideration, if any, actually received by the Company for the issuance,
sale                or  grant of all such rights, options, warrants, or conversion
               privileges whether or not exercised;  provided, however, that no such
               readjustment shall have the effect of decreasing the number of Shares
               purchasable upon exercise of the Warrants by an amount in excess of the
               amount of the adjustment  initially made in respect of the issuance,
               sale, or grant of such rights, options, warrants, or  conversion
               rights.  

        4.2.       No
Adjustment for Dividends.    Except as provided in           Section 4.1, no adjustment
in respect of any dividends or distributions out of           earnings shall be made
during the term of the Warrants or upon the exercise of           the Warrants.  

        4.3.       No
Adjustment in Certain Cases.    No adjustments shall be           made pursuant to
Section 4 hereof in connection with the issuance of the Common           Stock upon
exercise of the Warrants. No adjustments shall be made pursuant to           Section 4
hereof in connection with grant or exercise of options to purchase, or           the
issuance of shares of Common Stock under the Company’s director or
          employee benefit plan.  

        4.4.       Preservation
of Purchase Rights upon Reclassification, Consolidation,           etc.    In case of
any consolidation of the Company with or merger           of the Company into another
corporation, or in case of any sale or conveyance to           another corporation of the
property, assets, or business of the Company as an           entirety or substantially as
an entirety, the Company or such successor or           purchasing corporation, as the
case may be, shall execute with the Warrantholder           an agreement that the
Warrantholder shall have the right thereafter upon payment           of the Exercise
Price in effect immediately prior to such action to purchase,           upon exercise of
the Warrants, the kind and amount of shares and other           securities and property
which it would have owned or have been entitled to           receive after the happening
of such consolidation, merger, sale, or conveyance           had the Warrants been
exercised immediately prior to such action. In the event           of a merger described
in Section 368(a)(2)(E) of the Internal Revenue Code of           1986, in which the
Company is the surviving corporation, the right to purchase           Shares under the
Warrants shall terminate on the date of such merger and           thereupon the Warrants
shall become null and void, but only if the controlling           corporation shall agree
to substitute for the Warrants, its warrants which           entitle the holder thereof
to purchase upon their exercise the kind and amount           of shares and other
securities and property which it would have owned or been           entitled to receive
had the Warrants been exercised immediately prior to such           merger. Any such
agreements referred to in this Section 4.4 shall provide for           adjustments, which
shall be as nearly equivalent as may be practicable to the           adjustments provided
for in Section 4 hereof. The provisions of this Section 4.4           shall similarly
apply to successive consolidations, mergers, sales, or           conveyances.  

        4.5.       Par
Value of Shares of Common Stock.   Before taking           any action which would cause
an adjustment effectively reducing the portion of           the Exercise Price allocable
to each Share below the par value per share of the           Common Stock issuable upon
exercise of the Warrants, the Company will take any           corporate action which may,
in the opinion of its counsel, be necessary in order           that the Company may
validly and legally issue fully paid and non-assessable           Common Stock upon
exercise of the Warrants.  

        4.6.       Independent
Public Accountants.    The Company may retain a           firm of independent public
accountants of recognized national standing (which           may be any such firm
regularly employed by the Company) to make any computation           required under this
Section 4, and a certificate signed by such firm shall be           conclusive evidence
of the correctness of any computation made under this           Section 4.  

        4.7.       Statement
on Warrants.    Irrespective of any adjustments in           the number of securities
issuable upon exercise of the Warrants, Warrants           theretofore or thereafter
issued may continue to express the same number of           securities as are stated in
the similar Warrants initially issuable pursuant to           this Agreement. However,
the Company may, at any time in its sole discretion           (which shall be
conclusive), make any change in the form of Warrant that it may           deem
appropriate and that does not affect the substance thereof; and any Warrant
          thereafter issued, whether upon registration of transfer of, or in exchange or
          substitution for, an outstanding Warrant, may be in the form so changed.  

        4.8.       Treasury
Stock.    For purposes of this Section 4, shares of Common Stock           owned or held
at any relevant time by, or for the account of, the Company, in           its treasury or
otherwise, shall not be deemed to be outstanding for purposes of           the
calculations and adjustments described.  

        Section
5.    Notice to Holders.  

        If,
prior to the expiration of this Warrant either by its terms or by its exercise in full,
any of the following shall occur: 

        
          (a)
the Company shall declare a dividend or authorize any           other distribution on its
Common Stock; or  

        
          (b)
the Company shall authorize the granting to the           shareholders of its Common
Stock of rights to subscribe for or purchase any           securities or any other
similar rights; or  

        
          (c)
any reclassification, reorganization or similar           change of the Common Stock, or
any consolidation or merger to which the Company           is a party, or the sale,
lease, or exchange of any significant portion of the           assets of the Company; or  

        
          (d)                 the
voluntary or involuntary dissolution, liquidation or winding up of the           Company;
or  

        
          (e)
any purchase, retirement or redemption by the Company           of its Common Stock;  

then, and in any such case, the
Company shall deliver to the Holder or Holders written notice thereof at least 30 days
prior to the earliest applicable date specified below with respect to which notice is to
be given, which notice shall state the following: 

        
          (x)
the date on which a record is to be taken for the           purpose of such dividend,
distribution or rights, or, if a record is not to be           taken, the date as of
which the shareholders of Common Stock of record to be           entitled to such
dividend, distribution or rights are to be determined;  

        
          (y)
the date on which such reclassification,           reorganization, consolidation, merger,
sale, transfer, dissolution, liquidation,           winding up or purchase, retirement or
redemption is expected to become           effective, and the date, if any, as of which
the Company’s shareholders of           Common Stock of record shall be entitled to
exchange their Common Stock for           securities or other property deliverable upon
such reclassification,           reorganization, consolidation, merger, sale, transfer,
dissolution, liquidation,           winding up, purchase, retirement or redemption; and  

        
          (z)
if any matters referred to in the foregoing clauses           (x) and (y) are to be voted
upon by shareholders of Common Stock, the date as of           which those shareholders
to be entitled to vote are to be determined.  

         Section
6.    Officers’ Certificate. 

        Whenever
the Exercise Price or the aggregate number of Warrant Shares purchasable pursuant to this
Warrant shall be adjusted as required by the provisions of Section 4 above, the Company
shall promptly file with its Secretary or an Assistant Secretary at its principal office,
and with its transfer agent, if any, an officers’ certificate executed by the
Company’s President and Secretary or Assistant Secretary, describing the adjustment
and setting forth, in reasonable detail, the facts requiring such adjustment and the basis
for and calculation of such adjustment in accordance with the provisions of this
Warrant.  Each such officers’ certificate shall be made available to the Holder
or Holders of this Warrant for inspection at all reasonable times, and the Company, after
each such adjustment, shall promptly deliver a copy of the officers’ certificate
relating to that adjustment to the Holder or Holders of this Warrant.  The
officers’ certificate described in this Section 6 shall be deemed to be conclusive as
to the correctness of the adjustment reflected therein if, and only if, no Holder of this
Warrant delivers written notice to the Company of an objection to the adjustment within 30
days after the officers’ certificate is delivered to the Holder or Holders of this
Warrant.  The Company will make its books and records available for inspection and
copying during normal business hours by the Holder so as to permit a determination as to
the correctness of the adjustment.  If written notice of an objection is delivered by
a Holder to the Company and the parties cannot reconcile the dispute, the Holder and the
Company shall submit the dispute to arbitration pursuant to the provisions of Section 19
below.  Failure to prepare or provide the officers’ certificate shall not modify
the parties’ rights hereunder. 

        Section
7.     Reservation of Warrant Shares. 

        There
has been reserved, and the Company shall at all times keep reserved so long as the
Warrants remain outstanding, out of its authorized and un-issued Common Stock, such number
of shares of Common Stock as shall be subject to purchase under the Warrants. Every
transfer agent for the Common Stock and other securities of the Company issuable upon the
exercise of the Warrants will be irrevocably authorized and directed at all times to
reserve such number of authorized shares and other securities as shall be requisite for
such purpose. The Company will keep a copy of this Agreement on file with every transfer
agent for the Common Stock and other securities of the Company issuable upon the exercise
of the Warrants. The Company will supply every such transfer agent with duly executed
stock and other certificates, as appropriate, for such purpose and will provide or
otherwise make available any cash which may be payable as provided in Section 12 hereof. 

        Section
8.     Restrictions on Transfer; Registration Rights. 

        8.1.
        Transfers
to Comply with the Act.    This Warrant, the Warrant Shares, and all other
securities issued or issuable upon exercise of this Warrant, may not be
offered, sold or transferred, in whole or in part, except in compliance with
the Act, and except in compliance with all applicable state securities laws.
The Company may cause substantially the following legends, or their
equivalents, to be set forth on each certificate representing the Warrant
Shares, or any other security issued or issuable upon exercise of this Warrant,
not theretofore distributed to the public or sold to underwriters, as defined
by the Act, for distribution to the public pursuant to Section 8 above:  

	 	(a)  	“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN                     REGISTERED
UNDER THE  SECURITIES ACT OF 1933 OR ANY STATE SECURITIES                     LAWS AND
MAY NOT BE SOLD, EXCHANGED,  HYPOTHECATED OR TRANSFERRED IN                     ANY
MANNER EXCEPT IN COMPLIANCE WITH THE AGREEMENT  PURSUANT TO WHICH
                    THEY WERE ISSUED.” 

	 	(b) 	     Any
legend required by applicable state securities laws.  

        Any
certificate issued at any time in exchange or substitution for any certificate bearing
such legends (except a new certificate issued upon completion of a public distribution
pursuant to a registration statement under the Securities Act of 1933, as amended (the
“Act”), or the securities represented thereby) shall also bear the above legends
unless, in the opinion of the Company’s counsel, the securities represented thereby
need no longer be subject to such restrictions. 

        8.2.
       
Registration Right.    The Warrant Securities are subject to the terms of a Registration
Rights Agreement. Upon request, a copy of the Registration Rights Agreement is
available, without charge, from the Company(.)  

        Section
9.    Payment of Costs of Issuance.  

        The
Company will pay all documentary stamp taxes, if any, attributable to the initial issuance
of the Warrants or the Warrant Shares. 

        Section
10.    Fractional Shares 

        No
fractional shares or scrip representing fractional shares shall be issued upon the
exercise of all or any part of this Warrant.  With respect to any fraction of a
share of any security called for upon any exercise of this Warrant, the Company shall pay
to the Holder an amount in money equal to that fraction multiplied by the Current Market
Price of that share.  

        Section
11.     No Rights as Stockholder; Notices to Warrantholder.  

        Nothing
contained in this Agreement or in the Warrants shall be construed as conferring upon the
Warrantholder or its transferees any rights as a stockholder of the Company, including the
right to vote, receive dividends, consent or receive notices as a stockholder in respect
to any meeting of stockholders for the election of directors of the Company or any other
matter. The Company covenants, however, that for so long as this Warrant is at least
partially unexercised, it will furnish any Holder of this Warrant with copies of all
reports and communications furnished to the shareholders of the Company. In addition, if
at any time prior to the expiration of the Warrants and prior to their exercise, any one
or more of the following events shall occur: 

	 	        
          (a)                      any
action which would require an adjustment pursuant to Section 4.1 (except
               subsections  4.1(e) and 4.1(h) or 4.4; or  

	 	        
          (b)                      a
dissolution, liquidation, or winding up of the Company (other than in
               connection with a  consolidation, merger, or sale of its property,
               assets, and business as an entirety or substantially as  an entirety)
               shall be proposed:  

then the Company shall give
notice in writing of such event to the Warrantholder, as provided in Section 16 hereof, at
least 20 days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the stockholders entitled to any relevant dividend,
distribution, subscription rights or other rights or for the determination of stockholders
entitled to vote on such proposed dissolution, liquidation, or winding up. Such notice
shall specify such record date or the date of closing the transfer books, as the case may
be. Failure to mail or receive notice or any defect therein shall not affect the validity
of any action taken with respect thereto. 

        Section
12.     Charges Due Upon Exercise.  

        The
Company shall pay any and all issue or transfer taxes, including, but not limited to, all
federal or state taxes, that may be payable with respect to the transfer of this Warrant
or the issue or delivery of Warrant Shares upon the exercise of this Warrant. The Company
shall also pay any attorney’s fees necessary to approve the issuance of Warrant
Shares pursuant to Section 2.4, and/or any attorney’s fees necessary to approve the
sale of the Warrant Shares received pursuant to Section 2.4, under Rule 144 of the
Securities Act. 

        Section
13.     Warrant Shares to be Fully Paid  

        The
Company covenants that all Warrant Shares that may be issued and delivered to a Holder of
this Warrant upon the exercise of this Warrant and payment of the Exercise Price will be,
upon such delivery, validly and duly issued, fully paid and nonassessable. 

        Section
14.     Notices  

        
 Any notice pursuant to this Agreement by the Company or by a Warrantholder or
a holder of Shares shall be in writing and shall be deemed to have been duly given if
delivered or mailed by certified mail, return receipt requested: 

        (i)                 If
to a Warrantholder or a holder of Shares, addressed to the address set           forth
above.  

        (ii)                 If
to the Company addressed to it at 489 Denver Avenue, Loveland, CO 80537,
          Attention: Secretary.  

        Each
party may from time to time change the address to which notices to it are to be delivered
or mailed hereunder by notice in accordance herewith to the other party. 

        Section
15.     Merger or Consolidation of the Company. 

        The
Company will not merge or consolidate with or into any other corporation or sell all or
substantially all of its property to another corporation, unless the provisions of Section
4.4 are complied with. 

        Section
16.    Applicable Law 

        This
Warrant shall be governed by and construed in accordance with the laws of the State of
Colorado, and courts located in Colorado shall have exclusive jurisdiction over all
disputes arising hereunder.  

        Section
17.    Arbitration.  

        The
Company and the Holder, and by receipt of this Warrant or any Warrant Shares, all
subsequent Holders or holders of Warrant Shares, agree to submit all controversies,
claims, disputes and matters of difference with respect to this Warrant, including,
without limitation, the application of this Section (19) to arbitration in Denver,
Colorado, according to the Rules of the American Arbitration Association (or such other
organization as the parties may agree to) from time to time in force; provided, however,
that if such rules and practices conflict with the applicable procedures of Colorado
courts of general jurisdiction or any other provisions of Colorado law then in force,
those Colorado rules and provisions shall govern.  This agreement to arbitrate shall
be specifically enforceable.  Arbitration may proceed in the absence of any party if
notice of the proceeding has been given to that party.  The parties agree to abide by
all awards rendered in any such proceeding.  These awards shall be final and binding
on all parties to the extent and in the manner provided by the rules of civil procedure
enacted in Colorado.  All awards may be filed, as a basis of judgment and of the
issuance of execution for its collection, with the clerk of one or more courts, state or
federal, having jurisdiction over either the party against whom that award is rendered or
its property.  No party shall be considered in default hereunder during the pendency
of arbitration proceedings relating to that default. 

        Section
18.    Acceptance of Terms; Successors. 

        By
its acceptance of this Warrant, the Holder accepts and agrees to comply with all of the
terms and provisions hereof. All the covenants and provisions of this Warrant by or for
the benefit of the Company or the Holder shall bind and inure to the benefit of their
respective successors and assigns hereunder. 

        Section
19.     Miscellaneous Provisions 

        
          (a)                 Subject
to the terms and conditions contained herein, this Warrant shall be           binding on
the Company and its successors and shall inure to the benefit of the           original
Holder, its successors and assigns and all holders of Warrant Shares           and the
exercise of this Warrant in full shall not terminate the provisions of           this
Warrant as it relates to holders of Warrant Shares.  

        
          (b)                  If
the Company fails to perform any of its obligations hereunder, it           shall be
liable to the Holder for all damages, costs and expenses resulting from           the
failure, including, but not limited to, all reasonable attorney’s fees           and
disbursements.  

        
          (c)                 This
Warrant cannot be changed or terminated or any performance or           condition waived
in whole or in part except by an agreement in writing signed by           the party
against whom enforcement of the change, termination or waiver is           sought;
provided, however, that any provisions hereof may be amended, waived,
          discharged or terminated upon the written consent of the Company and the
          Warrantholder.  

        
          (d)                  If
any provision of this Warrant shall be held to be invalid,           illegal or
unenforceable, such provision shall be severed, enforced to the           extent
possible, or modified in such a way as to make it enforceable, and the
          invalidity, illegality or unenforceability shall not affect the remainder of
          this Warrant.  

        
          (e)                 The
Company agrees to execute such further agreements, conveyances,           certificates
and other documents as may be reasonably requested by the Holder to           effectuate
the intent and provisions of this Warrant.  

        
          (f)                 Paragraph
headings used in this Warrant are for convenience only and shall           not be taken
or construed to define or limit any of the terms or provisions of           this Warrant.  Unless
otherwise provided, or unless the context shall           otherwise require, the use of
the singular shall include the plural and the use           of any gender shall include
all genders.  

Dated _____________________________ 

		
		SECURITY WITH ADVANCED TECHNOLOGY, INC.

By: ___________________________

PURCHASE FORM   

Dated __________,_____ 

        The
 undersigned  hereby  irrevocably  elects  to  exercise  this  warrant  to the  extent
 of  purchasing ___________________ Shares of Security With Advanced  Technology,  Inc.
and hereby  tenders  payment of the exercise price thereof. 

INSTRUCTIONS FOR
REGISTRATION OF STOCK 

	 	
Name         ____________________________________________

        
          (please type or print in block letters) 

	 	
Address         ____________________________________________

ASSIGNMENT FORM  

	 	
FOR
VALUE RECEIVED, hereby sells, assigns and transfers unto 

	 	
Name         ____________________________________________

        
          (please type or print in block letters) 

	 	
Address         ____________________________________________

the right to purchase Shares of
Security With Advanced  Technology,  Inc. represented by this warrant to the extent of
______________    Shares as to which  such  right is  exercisable  and does  hereby
 irrevocably  constitute  and appoint _______________________________________
                             attorney,  to  transfer  the  same on the  books of the
 Company  with  full  power of substitution in the premises. 

	 	
Signature
 ________________________________                        Dated   _________________ ,
____ 

Notice: the signature on this
assignment must correspond with the name as it appears upon the face of this
warrant in every particular, without alteration or enlargement or any change whatever.  

WARRANT CONVERSION
EXERCISE FORM  

        Pursuant
to Section 2.4 of the Warrant,  the Holder  hereby  irrevocably  elects to convert
 Warrants with respect   to   Shares   of  the   Company   into _________  Shares   of
  the   Company.   A   conversion   calculation   is attached hereto as Exhibit B-1. 

	 	
The
undersigned requests that certificates for such Shares be issued as follows: 

	 	
Name:
__________________________________________  

	 	
Address:
__________________________________________  

	 	
Deliver
to:  __________________________________________  

and that a new warrant for the
balance  remaining of the warrants,  if any, subject to the warrant be registered in the
name of, and delivered to, the undersigned at the address stated above. 

	 	
Signature
 ________________________________                        Dated   _________________ ,
____ 

Exhibit B-1 

CALCULATION OF WARRANT
CONVERSION 

			
		X =	Y(A-B)

     A 

	 		
	Where: 	X =	the number of Shares and/or Warrants to be issued to the Holder;

	 		
		Y =	the number of Shares and/or Warrants to be converted under this Warrant;

	 		
		A =	the average of the Current  Market  Price of one share of Common  Stock for the
five  Trading  Days  immediately  preceding  the  Conversion  Date (as  defined
below); and

	 		
		B =	the Share Exercise Price.
			

Fractional Converted Shares
          =      ______________________________________
                                       (1) 

(1)   Security With
Advanced Technology, Inc. to pay for fractional Shares in cash @ $ _____________________
                    per Share.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]