Document:

EXHIBIT 10.2

              PLAN OF REORGANIZATION AND SHARE EXCHANGE AGREEMENT

<PAGE>

                           PLAN OF REORGANIZATION AND

                            SHARE EXCHANGE AGREEMENT

                                   DATED AS OF

                         _________________________, 2011

                                  BY AND AMONG

                             BLACK ROCK CAPITAL, LLC

                                       AND

                          RED MOUNTAIN RESOURCES, INC.,
                              a Florida Corporation

                                       1
<PAGE>

                           PLAN OF REORGANIZATION AND

                            SHARE EXCHANGE AGREEMENT

                            (BLACK ROCK CAPITAL, LLC)

         This AGREEMENT,  dated as of ______________________  (the "Agreement"),
by and among Red Mountain  Resources,  Inc., a Florida  Corporation  ("RMR") and
Black Rock Capital, LLC ("BRC").

         WHEREAS, the boards of directors  of  RMR  and  BRC's  Managing Member,
respectively,  have  each  approved,  as  being  in  the  best  interest  of the
respective  entities and their  stockholders or interest holders the Acquisition
(the  "Exchange")  of Black Rock  Capital,  LLC by RMR by an  exchange of common
stock for common  stock in  accordance  with the  applicable  provisions  of the
Florida   Business   Corporation  Code  (the  "FBCC")  and  the  Texas  Business
Organizations Code (the "TBOC") in consideration for 27,000,000 shares of common
stock of RMR to be issued to BR shareholders at closing.

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

         WHEREAS, this Agreement is intended to set  forth the terms  upon which
the Exchange will be accomplished;

         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:

                                       2
<PAGE>

                                    ARTICLE I
                                THE CONSIDERATION

SECTION 1.01.     Consideration/Acquisition & Exchange; Effective Time

         The Acquisition/Exchange shall become effective upon all the conditions
of this Agreement having been met,  including the precedent  conversion of Black
Rock Capital, LLC into a corporation,  with BRC interest holders being converted
to  shareholders  and  delivery  of  the  following   consideration  by  RMR  to
Interest/Shareholders of BRC:

         27,000,000  shares of restricted common stock of RMR to be exchanged to
         the shareholders (prorata) of BRC in exchange for 100% of the shares of
         BRC. BRC owns,  free and clear of  encumbrances  all of the oil and gas
         assets.

SECTION 1.02.     Effects of the Exchange.

         At the  Effective  Time  and by  virtue  of  the  Exchange,  all of the
outstanding  shares shall be conveyed to, and RMR shall be the owning  entity of
the shares of BRC and BRC shall be a wholly owned subsidiary of RMR.

SECTION 1.03.     Conversion of Securities/Consideration.

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

     (a)  All of the  shares  that  are  outstanding  immediately  prior  to the
Effective  Time,  shall  be  converted  in  exchange  for  shares  of RMR in the
conversion  amount.  All such  shareholders  shall cease to have any rights with
respect to BRC common stock, except the right to receive the number of shares of
RMR Common  Stock to be issued in  consideration  therefore  upon such shares in
accordance with Section 1.03(b),

     (b) Each 1% ownership of BRC shares shall be entitled to receive 1/100th of
27,000,000  common  restricted shares of RMR in exchange for shares of BRC owned
by shareholder.

SECTION 1.04.     Delivery Procedures.

     (a) Upon Parties  having  satisfied all  conditions  of closing,  RMR shall
provide to each  shareholder a letter of transmittal and instructions for use in
effecting  the  delivery  of the  shares  with such  provisions  as the board of
directors of RMR may reasonably specify. Upon delivery of a Certificate and Duly
Executed Stock Powers for BRC common shares,  shareholders  shall be entitled to
receive in exchange  therefore a certificate  representing that number of shares
of RMR Common  Stock as is equal to the product of the  percentage  of the Total
Outstanding  Shares  represented by the shares held multiplied by the Conversion
Amount.  Each  shareholder  shall, at and after the Effective Time, be deemed to
hold only the right to receive in exchange of such  share,  RMR Common  Stock as
contemplated  by this  Section  1.05,  together  with any  dividends  and  other
distributions  payable  thereafter.  Shares of RMR  Common  Stock  issued in the

                                       3
<PAGE>

Exchange shall be issued,  and be deemed to be outstanding,  as of the Effective
Time. RMR shall cause all such shares of RMR Common Stock issued pursuant to the
Exchange to be duly authorized,  validly issued,  fully paid and  non-assessable
and not subject to preemptive rights.

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

                                   ARTICLE II
                                   THE CLOSING

SECTION 2.01.     Closing.

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

                                   ARTICLE III
                      REPRESENTATIONS AND WARRANTIES OF RMR

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

SECTION 3.01.     Organization of RMR; Authority.

         RMR is an Entity duly organized,  validly existing and in good standing
under  the  laws of the  State  of  StateplaceFlorida.  RMR  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 RMR of the  Transaction  Documents to which it is a party and the
consummation of the transactions  contemplated hereby and thereby have been duly
authorized  by all  necessary  corporate  action on the part of RMR,  including,
without  limitation  the  approval  of  the  board  of  directors  of  RMR.  The
Transaction Documents have been duly executed and delivered by RMR and, assuming
that the Transaction  Documents constitute a valid and binding obligation of the
other  parties  thereto,  constitute  a valid  and  binding  obligation  of RMR,
enforceable  against in  accordance  with its terms.  RMR is duly  qualified  or
licensed  to do  business  as a foreign  Entity and is in good  standing in each
jurisdiction in which the property owned, leased or operated by it or the nature

                                       4
<PAGE>

of the business conducted by it makes such qualification necessary, except where
the failure to obtain such  qualification or license would not,  individually or
in the  aggregate,  have a RMR  Material  Adverse  Effect.  RMR  has  heretofore
delivered  or made  available  to Receiver  complete  and correct  copies of the
certificate  of  incorporation  and by-laws of RMR,  the minute  books and stock
transfer  records of RMR, as in effect as of the date of this Agreement.  RMR is
not in violation of its organizational documents.

SECTION 3.02.     Capitalization.

         The authorized  capital stock of RMR consists of 500,000,000  shares of
Common Stock, of which 10,200,000 shares are outstanding on the date hereof, and
10,000,000  shares of Preferred  Stock, 1 million each of which are Series A and
Series B. No other  shares of any other  class or series of RMR Common  Stock or
securities  exercisable or convertible into or exchangeable for RMR Common Stock
("RMR Common Stock  Equivalents")  are authorized,  issued or  outstanding.  The
outstanding  shares of RMR Common  Stock have been duly  authorized  and validly
issued and are fully paid and nonassessable and were not issued in violation of,
and are not subject to, any preemptive, subscription or similar rights. To RMR's
knowledge,  none of the  outstanding  shares of RMR  Common  Stock was issued in
violation of any Law, including without limitation, federal and state securities
laws. There are no outstanding warrants, options, subscriptions,  calls, rights,
agreements,  convertible  or  exchangeable  securities or other  commitments  or
arrangements  relating to the issuance,  sale,  purchase,  return or redemption,
and, to RMR's  knowledge,  voting or transfer of any shares,  whether  issued or
unissued,  of RMR Common Stock, RMR Common Stock Equivalents or other securities
of RMR.  On the  Closing  Date,  the shares of RMR Common  Stock for which Bonds
shall be exchanged  in the Exchange  will have been duly  authorized  and,  when
issued and  delivered  in  accordance  with this  Agreement,  such shares of RMR
Common Stock, will be validly issued, fully paid and nonassessable. RMR plans to
issue  additional  shares in order to  secure  funding  for  other  acquisitions
totaling  up to  25,000,000  shares,  to raise  capital,  pay fees and  costs of
operations.

SECTION 3.03.     No Violation; Consents and Approvals.

         The execution  and delivery by RMR of the  Transaction  Documents  does
not, and the consummation of the transactions contemplated hereby and compliance
with the terms hereof will not,  conflict  with or result in any violation of or
default  (or an event  which,  with  notice  or  lapse  of time or  both,  would
constitute a default)  under,  (a) the terms and conditions or provisions of the
certificate of  incorporation  or by-laws of RMR or any RMR Subsidiary,  (b) any
Law  applicable to RMR or any RMR Subsidiary or the property or assets of RMR or
any RMR Subsidiary,  or (c) give rise to any right of termination,  cancellation
or  acceleration  under,  or result in the  creation of any Lien upon any of the
properties of RMR or any RMR  Subsidiary  under any Contract to which RMR or any
RMR Subsidiary is a party or by which RMR or any RMR Subsidiary or any assets of

                                       5
<PAGE>

RMR or any RMR Subsidiary may be bound, No Governmental  Approval is required to
be  obtained  or  made  by or  with  respect  to RMR or any  RMR  Subsidiary  in
connection with the execution and delivery of this Agreement or the consummation
by RMR of the transactions contemplated hereby.

SECTION 3.04.     Litigation; Compliance with Laws.

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

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

                                   ARTICLE IV
                      REPRESENTATIONS AND WARRANTIES OF BRC

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

SECTION 4.01.     Organization of BRC and Authority

         BRC is a Limited Liability Company duly organized, validly existing and
in good standing under the laws of the State of Arkansas.  BRC 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 interest holder approval, the execution,  delivery and
performance by BRC 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 BRC,  including,
without  limitation  the  approval  of  the  board  of  directors  of  BRC.  The
Transaction Documents have been duly executed and delivered by BRC and, assuming
that the Transaction  Documents constitute a valid and binding obligation of the
other  parties  thereto,  constitute  a valid  and  binding  obligation  of BRC,
enforceable  against BRC in accordance with its terms.  BRC is duly qualified or
licensed  to do  business  as a foreign  Entity and is in good  standing in each
jurisdiction in which the property owned, leased or operated by it or the nature
of the business conducted by it makes such qualification necessary, except where
the failure to obtain such  qualification or license would not,  individually or

                                       6
<PAGE>

in the  aggregate,  have a BRC  Material  Adverse  Effect.  BRC  has  heretofore
delivered  or made  available  to Acquiree  complete  and correct  copies of the
certificate  of  incorporation  and by-laws of BRC,  the minute  books and stock
transfer  records of BRC, as in effect as of the date of this Agreement.  BRC is
not in violation of its organizational documents.

SECTION 4.02.     Capitalization.

         BRC is  currently  a  Limited  Liability  Company,  but  intends,  as a
condition hereof, to convert to a corporation  prior to closing  hereunder.  The
authorized capital stock of BRC shall, at closing,  consist of 100,000 shares of
BRC Common  Stock,  of which 1,000  shares shall be  outstanding  on the date of
closing.  No other  shares of any other  class or series of BRC Common  Stock or
securities  exercisable or convertible into or exchangeable for BRC Common Stock
("BRC  Common  Stock  Equivalents")  are  or  shall  be  authorized,  issued  or
outstanding.  The  outstanding  shares of BRC Common  Stock shall have been duly
authorized and validly issued and are fully paid and non-assessable and were not
issued in violation of, and are not subject to, any preemptive,  subscription or
similar  rights.  There are no  outstanding  warrants,  options,  subscriptions,
calls,  rights,  agreements,  convertible  or  exchangeable  securities or other
commitments or arrangements relating to the issuance, sale, purchase,  return or
redemption,  and, to BRC's knowledge,  voting or transfer of any shares, whether
issued or unissued, of BRC Common Stock, BRC Common Stock Equivalents, Interests
in the  limited  liability  company or other  securities  of BRC. On the Closing
Date,  the shares of BRC Common Stock for which shares of RMR Common Stock shall
be exchanged in the Exchange will have been duly  authorized and will be validly
issued, fully paid and non-assessable.

SECTION 4.03.     No Violation; Consents and Approvals.

         This  transaction will not conflict with, or result in any violation of
or  default  (or an event  which,  with  notice or lapse of time or both,  would
constitute a default) under,  (a) any Laws  applicable to BRC or its assets,  or
(b) give rise to any right of termination,  cancellation or acceleration  under,
or result in the  creation of any Lien upon any of the assets of BRC under,  any
Contracts  to  which  BRC is a party  or  which  requires  the  Approval  of the
shareholders.  No other Governmental Approval is required to be obtained or made
by  or  with  respect  to  the  interests  or  shares  to  be  conveyed  by  BRC
Interest/Shareholders (the assets) in connection with the execution and delivery
of this Agreement.

SECTION 4.04.     Litigation; Compliance with Laws.

     (a) There are: (i) no claims, actions, suits, investigations or proceedings
pending  or,  to the  knowledge  of  BRC,  threatened  against,  relating  to or
affecting BRC, its business,  its assets,  or any employee,  officer,  director,
stockholder,  or independent  contractor of BRC in their capacities as such, and
(ii) no orders of any Governmental  Entity or arbitrator are outstanding against

                                       7
<PAGE>

BRC, its business, its assets, or any employee, officer, director,  stockholder,
or  independent  contractor  of BRC in their  capacities  as such, or that could
prevent or enjoin,  or delay in any respect,  consummation  of the  transactions
contemplated hereby.

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

SECTION 4.05      Financial Statements.

         BRC shall provide, prior to closing hereunder,  financial statements in
accordance with federal income tax accounting consistently applied, complete and
true and accurate in all respects,  disclosing all  liabilities,  operations and
assets of the subject  Assets,  only,  during the term of its  ownership  of its
assets and for the period of the prior  bankruptcy  and shall  provide all books
and records  necessary to complete  audits prior to Closing in  accordance  with
stocktickerSEC Rules and Regulations and such other production records as may be
available from State or Federal Reports.

SECTION 4.06      Debt of BRC.

         BRC's total debt as of the date of closing shall not exceed  $3,000,000
to the lenders and in the amounts shown on Schedule 4.06.

                                    ARTICLE V
                        COVENANTS RELATING TO CONDUCT OF
                          BUSINESS PENDING THE EXCHANGE

SECTION 5.01.     Conduct of the Business Pending the Exchange.

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

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

                                       8
<PAGE>

with respect to its business,  unless,  in any case,  RMR consents  otherwise in
writing:

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

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

                                   ARTICLE VI
                              ADDITIONAL AGREEMENTS

SECTION 6.01.     Access to Information.

         From  the  date  hereof  until  the  Effective   Time  or  the  earlier
termination  of this  Agreement,  each party  shall give the other party and its
respective  counsel,  accountants,  representatives and agents, and full access,
upon reasonable  notice and during normal business hours, to BRC records and the
financial,  legal,  accounting  and other  representatives  of such  party  with
knowledge  of the  business  and the  assets  of such  party  and BRC and,  upon
reasonable notice, requesting parties shall be furnished all relevant documents,
records and other information  concerning the business,  finances and properties
of such  party  and its  subsidiaries  and BRC  that  the  other  party  and its
respective  counsel,  accountants,  representatives  and agents,  may reasonably
request.  No  investigation  pursuant to this  Section  6.01 shall  affect or be
deemed to modify  any of the  representations  or  warranties  hereunder  or the
condition to the obligations of the parties to consummate the Exchange; it being
understood that the investigation  will be made for the purposes of the board of
directors  of RMR and BRC  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

                                       9
<PAGE>

available)  which may have been made, and will use  reasonable  efforts to cause
its  representatives  and any  representatives  of  financial  institutions  and
investors and others to whom such documents were furnished promptly to return or
destroy such documents and any copies thereof any of them may have made.

SECTION 6.02.     Legal Conditions to Exchange; Reasonable Efforts.

         BRC and RMR  shall  take all  reasonable  actions  necessary  to comply
promptly with all legal requirements which may be imposed on itself with respect
to the Exchange and will promptly cooperate with and furnish information to each
other in connection with any such  requirements  imposed upon any of them or any
of their  Subsidiaries in connection  with the Exchange.  BRC and RMR shall 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 BRC,  RMR or any of the RMR  Subsidiaries  in  connection
with the  Exchange or the taking of any action  contemplated  thereby or by this
Agreement.

SECTION 6.03.     Certain Filings.

         Each party shall  cooperate with the other in (a)  connection  with the
preparation of an 8-K, (b)  determining  whether any action by or in respect of,
or filing  with,  any  governmental  body,  agency,  official  or  authority  is
required,  or any  actions,  consents,  approvals  or waivers are required to be
obtained  from  parties  to any  material  contracts,  in  connection  with  the
consummation of the transactions  contemplated by this Agreement and (c) seeking
any such  actions,  consents,  approvals or waivers or making any such  filings,
furnishing  information  required in  connection  therewith  or with the 8-K and
seeking timely to obtain any such actions, consents,  approvals or waivers. Each
party shall  consult with the other in  connection  with the foregoing and shall
use all reasonable  commercial  efforts to take any steps as may be necessary in
order to obtain any consents,  approvals,  permits or authorizations required in
connection with the Exchange.

SECTION 6.04.     Public Announcements and Filings.

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

SECTION 6.05.     Tax Matters.

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

     (b) BRC shall  prepare and file on a timely basis all Tax Returns which are
due to be filed  with  respect  to the  Managing  Member  (giving  effect to any
extension  of time)  prior to the  Closing  Date  including  any 2011 short year
return as may be necessary  for  subsidiary.  RMR shall be  responsible  for the

                                       10
<PAGE>

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 BRC shall use its
best  efforts to conduct  its  affairs  such that any Tax  Returns due after the
Closing Date can be filed on a timely basis.

     SECTION 6.06. Supplements to Schedules.

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

                                   ARTICLE VII
                           CONDITIONS OF THE EXCHANGE

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

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

     (a) Conversion:  BRC shall have converted from a limited  liability company
to a corporation pursuant to Arkansas law.

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

SECTION 7.02.     Additional Conditions of Obligations of RMR.

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

     (a) Representations  and Warranties.  The representations and warranties of
BRC set  forth  in this  Agreement  shall be true and  correct  in all  material

                                       11
<PAGE>

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 BRC. BRC 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 BRC.  From the date hereof  through and
including the Effective  Time, no event shall have occurred  which would have an
Material  Adverse  Effect,  to value of the assets of BRC to be  acquired by RMR
hereby, through its acquisition of BRC.

     (d) Third  Party  Consents.  BRC  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  BRC  of  this  Agreement  and  the
consummation of the transactions contemplated hereby.

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

     (f)  Deliveries.  At the  Closing,  BRC  shares  representing  100%  of the
outstanding stock of BRC duly executed by BRC  shareholders,  shall be delivered
to RMR.

     (g) Indebtedness of Assets.  All outstanding  Indebtedness on the Assets of
BRC or BRC  interests  or shares shall have been fully paid or  renegotiated  in
form and substance satisfactory to RMR and shares of BRC shall be free and clear
of all liens and  encumbrances  except as shown on Schedule 4.06.  BRC's lenders
shall have agreed, in writing, to the assumption of its debt and the transfer of
the BRC shares.

     (h) Audited Financial Statements.  BRC shall cooperate fully with RMR prior
to closing  hereunder to complete and obtain  audited  financial  statements  in
accordance with SEC Rules and Regulations, complete and true and accurate in all
respects,  disclosing  all  liabilities,  operations  and assets of the  subject
prospectus, during the term of its ownership of its assets and for the period of
the prior  bankruptcy and shall provide all books and records  necessary for SEC
reporting compliance purposes.

                                       12
<PAGE>

SECTION 7.03.     Additional Conditions of Obligations of BRC.

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

     (b)  Deliveries.   At  the  Closing,  RMR  shall  have  delivered  to  BRC:
certificates,  for the  requisite  stock  certificates  dated the Closing  Date,
signed on behalf  of RMR,  by the  President  of RMR in the  allocable  pro rata
amounts of shares  necessary in exchange for each of the respective bond holders
interests;

                                  ARTICLE VIII
                                   TERMINATION

SECTION 8.01.     Termination.

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

     (a) by mutual  consent  of the boards of  directors  of RMR and BRC and its
interest/shareholders; or

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

     (c) by BRC upon written  notice to RMR, if: any condition to the obligation
of Receiver to close  contained in Article VII hereof has not been  satisfied by
the Closing Date (unless such failure is the result of BR's breach of any of its
representations, warranties, covenants or agreements contained herein); or

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

SECTION 8.02.     Fees, Costs and Expenses.

         Whether  or not the  Exchange  is  consummated,  all  legal  costs  and
expenses  incurred  in  connection  with  this  Agreement  and the  transactions
contemplated hereby shall be paid by RMR including any legal fees related to the
transactions herein contemplated,  except that BRC shall not incur legal fees in
excess of $10,000 without RMR's consent.

                                       13
<PAGE>

                                   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 RMR, to:

Kenneth Koock
Red Mountain Resources, Inc.
7609 Ralston Road
Arvada, CO  80002
Fax: (303) 431-1567

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

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

                                       14
<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 Arkansas  without  regard to  principles  of conflict of
laws.

SECTION 10.05.    Waiver of Jury Trial.

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

SECTION 10.06.    Consent to Jurisdiction.

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

                                       15
<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 Exchange until consummation thereof.

SECTION 10.09.    Headings.

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

SECTION 10.10.    No Strict Construction.

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

SECTION 10.11.    Severability.

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

                                   ARTICLE XI
                                   DEFINITIONS

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

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

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

                                       16
<PAGE>

         "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.

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

         "Conversion Amount" shall mean an amount equal to 1/100th of 27,000,000
shares of RMR Common Stock per 1% ownership of BRC shares.

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

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

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

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

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

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

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

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

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

                                       17
<PAGE>

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

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

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

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

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

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

          "Transaction Documents" shall mean this Agreement

                  [Remainder of page intentionally left blank.]

                                       18
<PAGE>

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

                              RED MOUNTAIN RESOURCES, INC.

                              By:
                                  -----------------------------------
                                  Kenneth Koock
                                  Chief Executive Officer

                              BLACK ROCK CAPITAL LLC

                              By:
                                  -----------------------------------
                                  Alan Barksdale
                                  Managing Member

                                       19
<PAGE>

                                  SCHEDULE 4.06
                                   DEBT OF BRC

                                       20Unassociated Document

EXHIBIT 10.20

SUTRON CORPORATION

AMENDED AND RESTATED 2002 STOCK OPTION PLAN

1.             Purpose.  The Plan is intended to promote the interests of the Company by providing a method whereby officers and key employees who have provided and are expected in the future to provide valuable services to the Company may be given the opportunity to acquire an ownership interest in the Company and benefit from increases in the value of the Stock.

The purpose of the Plan is to set forth terms and conditions applicable to the Options granted hereunder and to the shares of Stock issuable upon exercise of such Options.

Options granted pursuant to the Plan shall be Non-Qualified Stock Options.  The proceeds received by the Company from the sale of Stock pursuant to exercise of the Options shall be used for general corporate purposes.

2.             Definitions.  In addition to terms defined elsewhere in the Plan, the following terms are defined as set forth below:

2.1           “Board” means the Board of Directors of the Company.

2.2           “Change of Control” means a transaction or event in which, after the effective date of the Plan, (a) the Company shall merge or consolidate with any other corporation and shall not be the surviving corporation; (b) the Company shall transfer all or substantially all of its assets to another person; or (c) any person shall have become the beneficial owner of more than fifty percent (50%) of the voting power of the Company’s outstanding voting securities.

2.3           “Code” means the Internal Revenue Code of 1986, as amended from time to time.  References to any provision of the Code include regulations promulgated thereunder and successor provisions and regulations thereto.

2.4           “Company” means Sutron Corporation, a Virginia corporation.

2.5           “Date of Grant” means, with respect to any Option, the date on which an Option was granted as specified in the corresponding Option Agreement.

2.6           “Disability” shall mean the inability of an individual to fulfill his or her responsibilities to the Company by reason of any medically determinable physical or mental impairment and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

2.7           “Exchange Act” means the Securities Exchange Act of 1934, as amended.  References to any provision of the Exchange Act include rules promulgated thereunder and successor provisions and rules thereto.

 

  

  

  

2.8           “Exercise Price” means, for each share of Stock subject to an Option, the Fair Market Value, determined as of the date of grant of such Option.

2.9           “Fair Market Value” of  the Stock means, as of any given date, the closing sales price of a share of Stock reported on the NASDAQ over-the-counter market for such date or, if no such closing price was reported for such date, for the most recent trading day prior to such date for which such closing price was reported.

2.10         “Non-Qualified Stock Option” means a stock option that is not intended to meet the requirements of Section 422 of the Code.

2.11         “Option” means the right granted under this Plan to purchase a specified number of shares of Stock, at the specified exercise price and for a specified period of time under the Plan.  All Options will be Non-qualified Stock Options.

2.12         “Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of the grant of an Option.  Each Option Agreement shall be subject to the terms and conditions of the Plan.

2.13         “Optionee” means the officer or key employee of the Company who is granted an Option under the Plan.

2.14         “Plan” means this Sutron Corporation 2002 Stock Option Plan.

2.15         “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to such rule.

2.16         “Stock” means the Common Stock, $0.01 par value per share, of the Company.

3.             Shares Available under the Plan.

3.1           Maximum Shares Available.  The Stock issuable pursuant to the exercise of Options granted under the Plan shall consist of shares of the Company’s authorized but unissued or reacquired Stock.  The maximum number of Shares which may be issued over the term of the Plan shall be six hundred  and fifty thousand (650,000), subject to adjustment from time to time in accordance with the provisions of Section 3.2 hereof.  Shares subject to outstanding Options shall be available for subsequent issuance under the Plan to the extent that such Options expire or terminate for any reason prior to their exercise in full.

3.2           Adjustments Upon Certain Events.  In the event that any change is made to the Stock issuable under the Plan by reason of stock split, stock dividend, recapitalization, combination of shares, exchange of shares, repurchase, merger, consolidation, spin-off or other 

 

  

  

  

change affecting the outstanding Stock as a class, the Board shall make appropriate adjustments to the maximum number of shares and/or class of shares, and the number of shares and/or class of shares and the exercise price per share in effect under each outstanding Option, in order to prevent the dilution or enlargement of benefits thereunder.  Any adjustments made by the Board pursuant to this Section 3.2 shall be final, binding and conclusive.  Neither the existence nor the terms of this Plan, nor the grant of any Options hereunder, shall affect the right or power of the Company to make any adjustments, reorganizations, reclassifications or other changes to its capital structure or to merge, consolidate, dissolve, liquidate, sell or transfer any or all of  its assets or otherwise change its business structure.

Except as expressly provided above, the issuance by the Company of shares of stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights, warrants or options to subscribe therefor, or upon conversions of shares or obligations of the Company convertible into such shares or other securities, shall not affect the number, class or exercise price of shares of Stock then subject to an Option, and no adjustment shall be made by reason thereof.

4.             Administration of the Plan.  The Plan shall be administered by the Board.  All actions taken by the Board shall be taken by a majority of its members.  The Board shall have the full power and authority, subject to the specific provisions of the Plan, to establish such rules and regulations, as it may deem appropriate for proper administration of the Plan, and to make such determinations under, and issue such interpretations of the Plan, as it may deem necessary or advisable.  Decisions of the Board shall be final and binding on all parties who have an interest in the Plan or any outstanding Option.  Any action may be taken by a written instrument signed by a majority of the members of the Board.

The Board may designate any officer of the Company to assist it in the administration of the Plan and may grant authority to any such officer to execute agreements or other documents and otherwise take action on behalf of the Board.  The Board may employ legal counsel and other professional advisors as it may deem desirable for the administration of the Plan and may rely on any opinion received from such counsel or advisors.

5.             Eligibility.  Officers, directors and key employees of the Company, as selected by the Board, are eligible to participate in the Plan.

6.             Options.

6.1           Grants of Options.  The Board, in its sole discretion, will designate each individual to whom an Option is to be granted and will specify the number of shares covered by such Option. In making such awards, the Board may consider, among other factors, the recommendations of the Company’s President and Chief Executive Officer.

6.2           Option Exercise Price.  The exercise price per share for Stock that may be purchased upon the exercise of an Option shall be determined by the Board on the date of grant 

 

  

  

  

of such Option and shall be equal to Fair Market Value on the date of grant of the Option.

6.3           Option Exercise Period.  The period in which an Option may be exercised shall be determined by the Board on the date of grant of the Option, except that no Option shall be exercisable after the expiration of ten (10) years from the date of grant of the Option.  In the event of (a) the termination of the Optionee’s employment with the Company for reasons other than a Disability; (b) the termination of the Optionee’s employment with the Company due to a Disability; or (c) the death of the Optionee, the provisions of Section 7 hereof will govern the Option Exercise Period.

6.4   Vesting of Option.  The Board, in its sole discretion, will designate the vesting schedule of each individual Option that is to be granted; provided, however, that an Option will become immediately exercisable in full at the time of a Change of Control of the Company.

6.5           Restrictions on Transfer of Option.  Any Option granted under the Plan shall be exercisable during the Optionee’s lifetime only by the Optionee and shall not be assignable or transferable other than by will or by the laws of descent and distribution following the Optionee’s death.

6.6           Manner of Exercise.  Subject to the provisions of the Plan and the applicable Option Agreement, an Option may be exercised in whole at any time and in part from time to time at such times and upon such other terms and conditions as the Board shall determine.  A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with the Plan and the applicable Option Agreement with respect to the remaining shares of Stock subject to the Option.  In order to exercise an Option, an Optionee must give notice of exercise to the Secretary of the Company, specifying the Option to be exercised, the number of shares of Stock to be purchased pursuant to such exercise, and must be accompanied by payment in full for such shares.  Payment shall be made in cash or check payable to the Company for the full amount of the purchase price, unless otherwise provided in the Option Agreement.

7.             Effect of Termination of Employment, Disability or Death.  Except to the extent otherwise provided pursuant to Section 7.4 below, the following provisions shall govern the exercise of any Options held by an Optionee at the time the Optionee ceases to be an employee of the Company, suffers a Disability, or dies.

7.1           Termination of Employment.  In the event that the Optionee ceases to be an employee of the Company for any reason other than Disability or death, then the period during which each outstanding Option held by such Optionee is to remain exercisable shall be limited to the ninety (90) day period following the date of termination of employment.  Under no circumstances, however, shall any such Option be exercisable after the specified expiration date of the Option term.  Any outstanding Option may not be exercised in the aggregate for more than the number of vested shares for which the Option is exercisable on the date of the termination of 

 

  

  

  

employment, and such Option shall terminate and cease to be outstanding with respect to any Option shares for which the Option is not at that time exercisable or in which the Optionee is not otherwise at that time vested.

7.2           Disability.  In the event that the Optionee ceases to be an employee of the Company by reason of a Disability, then the period during which each outstanding Option held by such Optionee is to remain exercisable shall be limited to a period of one (1) year following the date of termination of employment due to Disability.  Under no circumstances, however, shall any such Option be exercisable after the specified expiration date of the Option term as set forth in the Option Agreement.  Any outstanding Option may not be exercised in the aggregate for more than the number of vested shares for which the Option is exercisable on the date of the termination of employment due to Disability, and such Option shall terminate and cease to be outstanding with respect to any Option shares for which the Option is not at that time exercisable or in which the Optionee is not otherwise at that time vested.

7.3           Death. In the event that the Optionee dies while holding one or more outstanding Options, then the period during which each outstanding Option held by such Optionee is to remain exercisable shall be limited to a period of one (1) year following the date of the Optionee’s death.  During such limited period, the Option may be exercised by the personal representative of the Optionee’s estate or by the person or persons to whom the option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution.  Under no circumstances, however, shall any such Option be exercisable after the specified expiration date of the Option term. Any outstanding Option may not be exercised in the aggregate for more than the number of vested shares for which the Option is exercisable on the date of the death of the Optionee, and such Option shall terminate and cease to be outstanding with respect to any Option shares for which the Option is not at that time exercisable or in which the Optionee is not otherwise at that time vested.

7.4           Extensions.  The Board shall have full power and authority to extend the period of time for which the Option is to remain exercisable under the circumstances set forth in Sections 7.1, 7.2 and 7.3 above to such greater period of time as the Board shall deem appropriate; provided, however, that in no event shall such Option be exercisable after the specified expiration date of the Option as set forth in the Option Agreement.

8.             Changes and Amendments to the Plan.  The Board shall have complete and exclusive power and authority to amend or modify the Plan in any respect, provided, however, that no such amendment or modification shall adversely affect the rights and obligations of an Optionee with respect to any Options at the time outstanding under the Plan without the consent of such Optionee.  Any such amendment or modification will be subject to the approval of the Company’s shareholders at or before the next annual meeting of shareholders for which the record date is after the date of such Board action if such shareholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system.  The Board, in its sole discretion, may also seek shareholder approval of amendments or modifications to the Plan that are not required to be submitted for shareholder approval under any 

 

  

  

  

federal or state law or regulation or the rules of any stock exchange or automated quotation system, if it deems such shareholder approval to be desirable.

9.             General Provisions.

9.1           Agreements.  The grant of any Option shall be effected by the execution of an Option Agreement by and between the Company and each Optionee.  Each Option Agreement shall be a binding contract between the Company and the Optionee, shall incorporate the terms of the Plan, and shall specify the particular terms and condition of the Option, including the number of shares of Stock subject to the Option.

9.2           Compliance with Laws and Obligations.  The implementation of the Plan, the granting of Options under the Plan, and the issuance of Stock upon the exercise of any Option shall be subject to the Company’s procurement of all required regulatory approvals relating to the Plan, the Options and shares of Stock issuable pursuant to exercise of such Options.  Certificates representing shares of Stock issued pursuant to the exercise of Options granted under the Plan will be subject to such stop-transfer orders and other restrictions as may be applicable under federal and state laws, regulations and rules, or the requirements of any securities exchange or automated quotation system, including the requirement that a legend or legends be placed on such certificates.

The Company shall not be required to sell or issue shares of its Stock under any Option if the sale or issuance would constitute a violation by the Optionee or the Company of any provisions of any state or federal law, rule or regulation.  In addition, in connection with the Securities Act of 1933, as amended, upon exercise of any Option, the Company shall not be required to issue such shares of Stock unless the Company has received evidence satisfactory to it to the effect that the Optionee will not transfer such shares except pursuant to a registration statement in effect under the Securities Act of 1933, or unless an opinion of counsel to the Company has been received to the effect that such registration is not required.

The Corporation may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act of 1933; and in the event any shares are so registered, the Company may, in its discretion, remove any legend on certificates representing such shares of Stock.  The Company shall not be obligated to take any other affirmative action in order to cause the exercise of the Option or the issuance of shares of Stock pursuant thereto to comply with any state or federal law or regulation.

9.3           Compliance with Section 16 of the Exchange Act.  The Board shall implement transactions under the Plan and administer the Plan in a manner that will ensure that each transaction involving an Optionee (other than a sale of shares acquired through the exercise of an Option) is exempt from liability under Rule 16b-3, except that an Optionee may be permitted to engage in a non-exempt transaction under the Plan if written notice is given to the Optionee regarding the non-exempt nature of such transaction.

  

  

  

9.4           No Shareholder Rights Conferred.  An Optionee shall have no rights as a shareholder with respect to the shares of Stock subject to an Option until the date of issuance of stock certificates for such Stock to the Optionee.

9.5           Nonexclusivity of the Plan.  The adoption of the Plan by the Board shall not be construed as creating any limitations on the power of the Board to adopt such other compensation and incentive plans as it may deem desirable.

9.6           Governing Law.  The validity, construction and effect of the Plan and any agreement hereunder shall be determined in accordance with the laws of the Commonwealth of Virginia, without giving effect to principles of conflicts of laws, and applicable federal law.

9.7           Withholding.  The Company’s obligation to deliver shares of Stock upon the exercise of any Options granted hereunder the Plan shall be subject to the satisfaction of all applicable federal, state and local tax withholding requirements.

9.8           No Employment.  Nothing in this Plan, including the granting of any Option shall impose upon the Company any obligation to employ the Optionee.  The right of the Company to terminate the employment of the Optionee shall not be diminished or affected by reason of the fact that an Option has been granted hereunder to the Optionee.

9.9           Investment Purpose.  The Optionee agrees that any shares of Stock subject to the Option granted under the Plan will be acquired for investment and not with any present intention to resell the same, and the Optionee further agrees to confirm such intention by an appropriate written assurances and certificates at the time of exercising an Option or any portion thereof.

10.           Effective Date of Plan; Termination.

10.1         Effective Date.  The Plan shall become effective upon its adoption by the Board.

10.2         Termination.  Unless earlier terminated by the action of the Board, the Plan shall remain in effect until such time as no shares of Stock remain available for issuance under the Plan and the Company and Optionees have no further rights or obligations under the Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]