Exhibit 10.11

 

LOCK-UP AGREEMENT

THIS AGREEMENT (this "Agreement") is dated as of September 30, 2005 by and among
Silver Star Energy, Inc., a Nevada corporation (the "Company"), and the
shareholders of the Company listed on Schedule A attached hereto (collectively,
the "Shareholders").

WHEREAS, to induce the Company and the investors (the “Investors”) to enter into
the Note and Warrant Purchase Agreement dated as of the date hereof (the
“Purchase Agreement”) by and among the Company and the Investors, the
Shareholders have agreed not to sell any shares of the Company’s common stock,
$.001 par value per share (the "Common Stock"), that such Shareholders presently
own or may acquire after the date hereof, except in accordance with the terms
and conditions set forth herein.  Capitalized terms used herein without
definition shall have the meanings assigned to such terms in the Purchase
Agreement.

NOW, THEREFORE, in consideration of the covenants and conditions hereinafter
contained, the parties hereto agree as follows:

1.

Restriction on Transfer; Term.  The Shareholders hereby agree with the Company
that the Shareholders will not offer, sell, contract to sell, assign, transfer,
hypothecate, pledge or grant a security interest in, or otherwise dispose of, or
enter into any transaction which is designed to, or might reasonably be expected
to, result in the disposition of (whether by actual disposition or effective
economic disposition due to cash settlement or otherwise by the Company or any
affiliate of the Company or any person in privity with the Company or any
affiliate of the Company), directly or indirectly, any of the shares of Common
Stock from the period commencing on the Closing Date and expiring one (1) year
following the Closing Date (the “Period”); provided, however, up to 3,434,000
shares beneficially owned by the five Shareholders listed on Schedule B attached
hereto may be sold by such Shareholders so long as (A) such Shareholders file
Forms 144 with the Securities and Exchange Commission indicating their intention
to sell such shares and (B) the aggregate sales by each such Shareholder on any
one trading day does not exceed ten percent (10%) of the daily trading volume of
the Common Stock on such trading day.  

2.

Ownership.

During the Period, the Shareholders shall retain all rights of ownership in the
Common Stock, including, without limitation, voting rights and the right to
receive any dividends, if any, that may be declared in respect thereof.

3.

Company and Transfer Agent.  The Company is hereby authorized to disclose the
existence of this Agreement to its transfer agent.  The Company and its transfer
agent are hereby authorized to decline to make any transfer of the Common Stock
if such transfer would constitute a violation or breach of this Agreement and
the Purchase Agreement.

4.

Notices.  All notices, demands, consents, requests, instructions and other
communications to be given or delivered or permitted under or by reason of the
provisions of this Agreement or in connection with the transactions contemplated
hereby shall be in writing and shall be deemed to be delivered and received by
the intended recipient as follows:  (i) if

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personally delivered, on the business day of such delivery (as evidenced by the
receipt of the personal delivery service), (ii) if mailed certified or
registered mail return receipt requested, four (4) business days after being
mailed, (iii) if delivered by overnight courier (with all charges having been
prepaid), on the business day of such delivery (as evidenced by the receipt of
the overnight courier service of recognized standing), or (iv) if delivered by
facsimile transmission, on the business day of such delivery if sent by 6:00
p.m. in the time zone of the recipient, or if sent after that time, on the next
succeeding business day (as evidenced by the printed confirmation of delivery
generated by the sending party's telecopier machine).  If any notice, demand,
consent, request, instruction or other communication cannot be delivered because
of a changed address of which no notice was given (in accordance with this
Section 4), or the refusal to accept same, the notice, demand, consent, request,
instruction or other communication shall be deemed received on the second
business day the notice is sent (as evidenced by a sworn affidavit of the
sender).  All such notices, demands, consents, requests, instructions and other
communications will be sent to the following addresses or facsimile numbers as
applicable.

If to the Company:

Silver Star Energy, Inc.

11300 W. Olympic Boulevard, Suite 800

Los Angeles, California 90064

Attention: Chief Executive Officer

Tel. No.: (310) 477-2211

Fax No.: (310) ___-____

With copies to:  

______________________

______________________

______________________

Attention: ______________

Tel. No.: (___) ___-____

Fax No.: (___) ___-____

and to:

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attention: Christopher S. Auguste

Tel No.: (212) 715-9100

Fax No.: (212) 715-8000

If to any of the Shareholders, addressed to such Shareholder at:

________________________

________________________

________________________

Attention: ________________

Tel. No.: (___) ___-____

Fax No.: (___) ___-____

With copies to:  

______________________

______________________

______________________

Attention: ______________

Tel. No.: (___) ___-____

Fax No.: (___) ___-____

or to such other address as any party may specify by notice given to the other
party in accordance with this Section 4.

5.

Amendment.  This Agreement may not be modified, amended, altered or
supplemented, except by a written agreement executed by each of the parties
hereto.  

6.

Entire Agreement.  This Agreement contain the entire understanding and agreement
of the parties relating to the subject matter hereof and supersedes all prior
and/or contemporaneous understandings and agreements of any kind and nature
(whether written or oral) among the parties with respect to such subject matter,
all of which are merged herein.

7.

Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to agreements made and to be
performed in that state, without regard to any of its principles of conflicts of
laws or other laws which would result in the application of the laws of another
jurisdiction.  This Agreement shall be construed and interpreted without regard
to any presumption against the party causing this Agreement to be drafted.  

8.

Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.  EACH OF THE PARTIES UNCONDITIONALLY AND IRREVOCABLY
CONSENTS TO THE EXCLUSIVEJURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
LOCATED IN NEW YORK COUNTY AND THE FEDERAL DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK WITH RESPECT TO ANY SUIT, ACTION OR

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PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY, AND EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY OBJECTION TO VENUE IN NEW YORK COUNTY OR SUCH DISTRICT,
AND AGREES THAT SERVICE OF ANY SUMMONS, COMPLAINT, NOTICE OR OTHER PROCESS
RELATING TO SUCH SUIT, ACTION OR OTHER PROCEEDING MAY BE EFFECTED IN THE MANNER
PROVIDED IN SECTION 4.  

9.

Severability.  The parties agree that if any provision of this Agreement be held
to be invalid, illegal or unenforceable in any jurisdiction, that holding shall
be effective only to the extent of such invalidity, illegally or
unenforceability without invalidating or rendering illegal or unenforceable the
remaining provisions hereof, and any such invalidity, illegally or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  It is the intent of the
parties that this Agreement be fully enforced to the fullest extent permitted by
applicable law.

10.

Binding Effect; Assignment.  This Agreement and the rights and obligations
hereunder may not be assigned by any party hereto without the prior written
consent of the other parties hereby.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

11.

Headings.  The section headings contained in this Agreement (including, without
limitation, section headings and headings in the exhibits and schedules) are
inserted for reference purposes only and shall not affect in any way the
meaning, construction or interpretation of this Agreement.  Any reference to the
masculine, feminine, or neuter gender shall be a reference to such other gender
as is appropriate.  References to the singular shall include the plural and vice
versa.

12.

Counterparts.  This Agreement may be executed in two or more counterparts, and
by the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original, and all of which, when taken
together, shall constitute one and the same document.  This Agreement shall
become effective when one or more counterparts, taken together, shall have been
executed and delivered by all of the parties.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above herein.

SILVER STAR ENERGY, INC.

By:________________________________

  

Name:

Title:   

SHAREHOLDER:

By:_________________________________

       Name:

       Title:

  

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Schedule A

1.

McIntosh

2.

Naylor

3.

Narwal

4.

Marshall

5.

Johnston

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Schedule B

1.

McIntosh

2.

Naylor

3.

Narwal

4.

Marshall

5.

Johnston

 

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