Document:

JOINT
      VENTURE AGREEMENT

    

    THIS
      JOINT VENTURE AGREEMENT ("Agreement"), made and entered into as of this 16
      day
      of July, 2008 (the “Effective Date”), by and between TOT ENERGY, INC., a
      Delaware company with its principal place of business at 201 S. Biscayne Blvd.,
      Suite 2804, Miami, FL 33131 ("TOT Energy"), and EVGENI BOGARAD
      (“Bogarad”).

     

    RECITALS

     

    WHEREAS,
      the Parties desire to form a joint venture under the name TOT SIBBNS, LTD (“TOT
      SIBBNS”) whereby TOT SIBBNS will continue and expand the business of SIBBNS
      pursuant to the terms and conditions contained herein.

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and premises contained
      herein, and other valuable consideration, the sufficiency and receipt are hereby
      acknowledged, the parties agree as follows:

     

    ARTICLE
      I

     

    GENERAL
      PROVISIONS

     

    1.01 Business
      Purpose. The business of the TOT SIBBNS shall be to own, lease, manage, and
      develop its assets and personnel (as provided herein) for the purpose of
      offering geological surveys and related services to oil and gas development
      companies in the Russian Federation, the Republic of Georgia, and Kazakhstan.
      

     

    1.02 Consideration.
      As consideration for entering into this Agreement and transferring its assets
      to
      TOT SIBBNS, TOT Energy shall pay to Bogarad 5,000,000 shares of the common
      stock
      of TOT Energy, Inc. (the “Purchase Shares”) payable as follows: 

     

    
      	 	
              ·

            	
              3,000,000
                Purchase Shares payable upon Closing (following the organization
                of TOT
                SIBBNS (as provided in Section 3.01), audit of SIBBNS (as provided
                in
                Section 3.02), appraisal of the SIBBNS Assets, and transfer of the
                SIBBNS
                Assets (as provided in Section 3.04); and

            

    

     

    
      	 	
              ·

            	
              2,000,000
                Purchase Shares upon TOT SIBBNS having US$10,000,000 of aggregate
                gross
                revenues (in accordance with U.S.
                GAAP).

            

    

     

    1.03       Adjustment
      to Consideration. If 36 months after the Closing, (i) SIBBNS and Bogarad have
      complied with all of their obligations under this Agreement, (ii) EVVGENY has
      appointed a director to the Board of TOT Energy who continues to serve, (iii)
      TOT SIBBNS has generated revenue of at least US$10,000,000, and (iv) the market
      value of a share of TOT Energy stock is less than $1.00, then TOT Energy will
      make an additional payment to Bogarad in an amount equal to the difference
      between US$1.00 and the weighted average of the trading value over the previous
      10 trading days times the number of the Purchase Shares still held by Bogarad
      (the “Contingent Payment”). If at 36 months after the Closing, the market price
      of TOT Energy stock is greater than $1.00 per share, then the adjustment
      provided in this Section 1.03 will become null and void. If TOT Energy opts
      not
      to make the Contingent Payment, then SIBBNS may opt to receive TOT Energy’s
      interest in TOT SIBBNS (for a payment to TOT Energy in the amount of fair market
      value of any assets acquired directly by TOT SIBBNS (other than the SIBBNS
      Assets), and 75% of the retained earnings, accounts receivable and
      cash).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.04       Closing.
      The Parties shall schedule a Closing to this Agreement upon completion of the
      conditions precedent outlined in Section 1.02 above. 

     

    
      	 	
              (a)

            	
              At
                the Closing, Bogarad shall deliver to TOT
                Energy:

            

    

     

    
      	 	
              (i)

            	
              Certificate
                representing ownership interest of 75% of TOT
                SIBBNS;

            

    

     

    
      	 	
              (ii)

            	
              Copies
                of all licenses required to conduct the business of TOT SIBBNS and
                a
                certificate of SIBBNS that such licenses are all of the necessary
                licenses
                for the conduct of such business;

            

    

     

    
      	 	
              (iii)

            	
              Evidence
                of the transfer of all SIBBNS Assets to TOT SIBBNS and a certificate
                of
                the Manager that all such SIBBNS Assets were reflected in the appraisal
                of
                such SIBBNS Assets and that such SIBBNS Assets remain the property
                of TOT
                SIBBNS; 

            

    

     

    
      	 	
              (iv)

            	
              The
                Budget; and

            

    

     

    
      	 	
              (v)

            	
              A
                notice to TOT Energy naming a designee to the Board of Directors
                of TOT
                Energy (such designee must be approved by the Board of Directors
                of TOT
                Energy before assuming such post).

            

    

     

    
      	 	
              (b)

            	
              At
                the Closing, TOT Energy shall deliver to
                Bogarad:

            

    

     

    
      	 	
              (i)

            	
              A
                certificate representing 3,000,000 shares of the common stock of
                TOT
                Energy.

            

    

     

    1.05       Term
      of the Agreement. This TOT SIBBNS shall commence on the Effective Date and
      shall
      continue in existence until terminated, liquidated, or dissolved by law or
      as
      hereinafter provided. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    GENERAL
      DEFINITIONS

     

    The
      following comprise the general definitions of terms utilized in this
      Agreement:

     

    2.01
             Affiliate. An Affiliate of an entity
      is a person that, directly or indirectly through one or more intermediaries,
      controls, is controlled by or is under common control of such entity.

     

    2.02
             Capital Contribution(s). The capital
      contribution to TOT SIBBNS shall be those actually made by the parties,
      including property, cash and any additional capital contributions made.

     

    2.03       Manager.
      The Manager shall be Bogarad.

     

     

    ARTICLE
      III

     

    OBLIGATIONS
      OF THE PARTIES

     

    The
      Parties shall work together to ensure the following are completed and agreed
      upon:

     

    3.01       Formation.
      The Manager will oversee the formation of TOT SIBBNS as a business entity in
      the
      Russian Federation. 

     

    3.02       Audit.
      As a business entity registered with the Securities and Exchange Commission
      in
      the United States, TOT Energy must audit the assets and business of SIBBNS
      that
      will become the business and assets of TOT SIBBNS. TOT Energy will be
      responsible for the payment for such audits.

     

    3.03       License.
      The Manager will use his best efforts to have the necessary licenses issued
      by
      the appropriate regulatory authorities for TOT SIBBNS to conduct the business
      as
      previously conducted by SIBBNS. All Parties will endeavor to have TOT SIBBNS
      licensed to conduct its business in all territories outside of Russia where
      TOT
      SIBBNS intends to do business.

     

    3.04       Assets.
      The Manager shall ensure the SIBBNS Assets are appraised by an independent
      appraisal firm approved by TOT Energy’s auditors at TOT Energy’s expense prior
      to Closing. Once TOT SIBBNS has the proper licenses as contemplated in Section
      3.03 above and the SIBBNS Assets have been appraised, Bogarad will acquire
      all
      of the assets of SIBBNS and will contribute those assets to TOT SIBBNS and
      TOT
      SIBBNS will offer all of SIBBNS’ employees’ equivalent positions with TOT
      SIBBNS. To the extent SIBBNS needs access the assets or personnel for the
      performance of its existing contracts, SIBBNS will have reasonable access to
      such assets and personnel on a cost plus basis (to be negotiated between the
      Parties).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.05       Employees.
      The Manager will offer employment to all (or substantially all in the Manager’s
      discretion) of SIBBNS employees with employment to begin November 1,
      2008.

     

    3.06       Contracts.
      The Manager and SIBBNS will have TOT SIBBNS bid on all future contracts related
      to the prior business of SIBBNS and the future business of TOT SIBBNS. Moreover,
      the Manager and SIBBNS will use their aggregate business contacts with its
      former contracting partners to expand TOT SIBBNS business in territories outside
      of Russia. TOT Energy will endeavor to identify opportunities outside of Russia
      for additional business, and the Parties will work together to have TOT SIBBNS
      bid on contracts related to such opportunities.

     

    3.07       Budget.
      The Manager will prepare, or oversee the preparation of, a preliminary budget
      for the business of TOT SIBBNS which shall consist of a written itemized
      accounting of the anticipated costs and expenses associated with growing the
      business as contemplated herein, including without limitation, all material
      costs, labor costs, contractor fees, and soft costs (the “Budget”). The costs
      associated with the Budget shall be divided by the Parties as follows: (i)
      TOT
      Energy shall be responsible for the funding of all new hires related to the
      growth of the business and compliance with SEC reporting or auditing
      requirements effective immediately and (ii) Bogarad shall be responsible for
      all
      other costs through first quarter of 2009. Thereafter, assuming TOT SIBBNS
      has
      acquired operating contracts, the Parties will fund any necessary capital
      requirements in proportion to their ownership interest in TOT SIBBNS. All
      expenditures for TOT SIBBNS shall be within the Budget. Any expenditures not
      included in the Budget shall be submitted to the Board of Directors of TOT
      SIBBNS for approval prior to commitment on such expenditures.

     

    3.08       Operating
      Plan. The Manager will prepare an operating plan of TOT SIBBNS, including,
      without limitation, a time schedule with milestones for the achievement of
      the
      financial and operational goals of TOT SIBBNS. The Operating Plan should work
      in
      conjunction with the Budget of TOT SIBBNS.

     

    3.09       Management
      Bonus Pool. TOT SIBBNS will reserve 10% of its net income for a bonus pool
      that
      will be paid to TOT SIBBNS’ management team, in the discretion of the Board of
      TOT SIBBNS at the end of each year. The Board may make an adjustment to the
      amount allocated for this bonus pool to reflect inter-company revenue generated
      by the activities of TOT SIBBNS.

     

    3.10       
      Compliance with Law. The Parties shall use their best efforts to cause TOT
      SIBBNS at all times to perform and comply with the provisions of all applicable
      laws, including without limitations, provisions of the laws of the United States
      that apply to foreign owned subsidiaries and foreign corrupt
      practices.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

     

    CAPITAL
      ACCOUNTS 

     

    4.01
             Dividends. At the discretion of the
      Board of Directors (as to the amount), the net cash proceeds from the operations
      of TOT SIBBNS, less the amount necessary to pay expenses, debt payments, capital
      improvements, replacements and contingencies, including such general overhead
      expenses as are permitted by the Budget, shall be distributed not later than
      the
      30th
      day
      after the end of each fiscal quarter in proportion to each Party’s ownership
      interest. Until the amount of equity issued to any particular Party changes,
      all
      profits, losses and other allocations to TOT SIBBNS, shall be allocated as
      follows at the conclusion of each fiscal year: TOT Energy 75% and Bogarad 25%.
      

     

     

    ARTICLE
      V

     

    MANAGEMENT

     

    5.01
             Manager; Board of Directors. The
      Manager shall have full, exclusive and complete authority and discretion in
      the
      day-to-day management and control of the business of TOT SIBBNS for the purposes
      herein stated and shall make all decisions affecting the business of TOT SIBBNS.
      Strategic management of TOT Energy will be the responsibility of the Board
      of
      Directors of TOT SIBBNS. TOT Energy will have the ability to appoint a majority
      of the Board of Directors of TOT SIBBNS. The initial Board of Directors shall
      have thee (3) directors, of which TOT Energy will have the right to appoint
      two
      (2) such directors.

     

    5.02       Powers
      of the Manager. Except as otherwise provided in this Agreement (including,
      without limitation, the provisions of this Agreement relating to expenditures
      within the Budget), the Manager shall have all of the following powers, which
      may be exercised in its sole and absolute discretion, on behalf of TOT
      SIBBNS:

     

    (a)       Expend
      the capital and profits of TOT SIBBNS in furtherance of TOT SIBBNS business.
      

     

    (b)       Sell
      any TOT SIBBNS Assets in the ordinary course of TOT SIBBNS’
business.

     

    (c)       Borrow
      money and to issue evidences of indebtedness on behalf of TOT SIBBNS in TOT
      SIBBNS’ ordinary course of business and provided such borrowings are in an
      amount not in excess of US$500,000.

     

    (d)       Execute
      and deliver such documents on behalf of TOT SIBBNS as may be deemed necessary
      or
      desirable for TOT SIBBNS’ business.

     

    (e)       Perform
      or cause to be performed all of TOT SIBBNS’ obligations under any agreement to
      which TOT SIBBNS is a party.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)       Bring
      and defend actions at law or in equity, and to pay, collect, compromise,
      arbitrate or otherwise adjust any and all claims or demands of or against TOT
      SIBBNS.

     

    (g)       Employ
      agents, attorneys, architects, accountants, engineers, contractors, sales,
      maintenance, administrative or secretarial personnel or other persons necessary
      for the maintenance of any TOT SIBBNS’ property and the operation of the
      business of TOT SIBBNS.

     

    (h)       Open
      and maintain bank accounts for the deposit of TOT SIBBNS funds, with withdrawals
      to be made on TOT SIBBNS’ behalf, upon such signature or signatures as Bogarad
      may designate.

     

    (i)       Do
      any act that is necessary and incidental to carry out the
      foregoing.

     

    5.03       Major
      Decisions. Notwithstanding anything herein to the contrary, Bogarad shall not
      undertake the following actions without the prior consent of the Board of
      Directors:

     

    (a)       The
      sale of the assets of TOT SIBBNS exceeding US$500,000 in value (except in the
      ordinary course of the TOT SIBBNS’ business).

     

    (b)       The
      expenditure of TOT SIBBNS’ capital, profits, and other funds in excess of
      US$500,000 (unless otherwise provided for in the Budget).

     

    (c)       The
      borrowing or incurrence of indebtedness, or the refinancings of existing
      indebtedness of TOT SIBBNS, which borrowings are secured by assets of TOT
      SIBBNS.

     

    (d)       The
      borrowing of monies by TOT SIBBNS in excess of US$500,000.

     

    ARTICLE
      VI 

     

    RESTRICTIONS
      ON TRANSFER OF INTERESTS

     

    6.01       Restrictions
      on Transfer. Notwithstanding any other provision of this Agreement, no Party
      shall, directly or indirectly, transfer any ownership of such Party (including
      the economic attributes associated therewith), unless such Transfer is in
      accordance with the terms of this Article VI. The restrictions on Transfer
      set
      forth in this Article VI may be waived by the unanimous consent of the
      Parties.

     

    6.02       Right
      of First Refusal. If a Party (“Offering Party”) desires to sell or otherwise
      Transfer all, or any part, of such Party’s ownership interest (the “Offered
      Interest”) then such Party may do so, only to a Bona Fide Purchaser, and in
      accordance with the following procedure:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    a)       the
      Offering Party shall first offer to sell the Offered Interest to the remaining
      Party(s) (the “Non-Offering Parties”) by delivering to TOT SIBBNS and each of
      the Non-Offering Parties a written notice of the proposed Transfer. Such notice
      (a “Transfer Notice”) shall state the number of [shares] offered, together with
      the proposed price and other material terms of the Bona Fide Purchaser’s offer.
      The Non-Offering Parties shall have the right, within 30 days after receipt
      of
      the Transfer Notice (the “RFR Period”), to elect to purchase the Offered
      Interest in such amounts as the Parties shall agree amongst themselves, or
      failing agreement, pro rata, in accordance with their Percentage Interest in
      the
      TOT SIBBNS, at a price equal to the amount proposed to be paid by the Bona
      Fide
      Purchaser, pro-rated to the portion of such Offering Party’s Interest being
      acquired by each purchasing Non-Offering Party (the “RFR Price”). 

     

    b)       If
      the Non-Offering Parties do not elect to, or fail to, purchase all of the
      Offered Interest within the applicable period, then the Offering Party shall
      be
      free to Transfer all of the Offered Interest to a Bona Fide Purchaser (subject
      to Sections 3 and 4 below) within 30 days following the earlier of: (i) the
      expiration of the RFR Period, or (ii) the giving of written notice by all
      of the Non-Offering Parties to the Offering Party that they elect to purchase
      none or a specified portion of the Offered Interest. The Offering Party shall
      notify the Company in writing of the consummation of the Transfer of the Offered
      Interest.

     

    c)       If
      the Offering Party does not Transfer all of the Offered Interest within the
      30-day period specified in subsection (b) above, then no subsequent Transfer
      may
      be made without first re-offering the Offered Interest to the Non-Offering
      Parties in accordance with this Section 2.

     

    6.03       Tag-Along
      Rights. In the event that any Offering Party intends to Transfer any of the
      Interest held by him, her or it, then, within the RFR Period, any Non-Offering
      Party may, by notification to the Offering Party and the Company, elect to
      participate in such Transfer in lieu of exercising its right of first refusal.
      Any Non-Offering Party that fails to notify the Offering Party within such
      period shall be deemed to have waived its rights hereunder. If a Non-Offering
      Party so notifies the Offering Party it shall have the right to sell, at the
      same price and on the same terms and conditions as the Offering Party, an amount
      of Interest equal to the Interest the Bona Fide Purchaser actually proposes
      to
      purchase (after giving effect to any Interest purchased by Non-Offering Parties
      pursuant to Section 6.02 above) multiplied by a fraction, the numerator of
      which
      shall be the number of Interests issued and owned by any such Non-Offering Party
      and the denominator of which shall be the aggregate number of Interest the
      Bona
      Fide Purchaser actually proposes to purchase (after giving effect to any
      Interest purchased by Non-Offering Parties pursuant to Section 6.02 above),
      plus
      the aggregate number of Interest held by the Non-Offering Parties exercising
      their tag-along rights pursuant to this Section.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.04       Drag
      Along Rights.

     

    a)       If
      at any time one or more Offering Parties propose to Transfer Interests to a
      Bona
      Fide Purchaser representing more than sixty percent (60%) of the Interest,
      the
      Offering Party may require all Parties holding Interests to participate in
      such
      Transfer in accordance with this Section 6.04. Each Member (including the
      Transferring Member) shall then have the obligation to Transfer, at the same
      price per share and upon identical terms and conditions as such proposed
      Transfer, all Interest owned by such Member. The proposed Transfer may be for
      cash or other consideration including securities, issued as part of a merger,
      share exchange, consolidation, reorganization, recapitalization, combination
      or
      similar transaction.

     

    b)       Each
      Offering Party electing to require other Members to participate in a Transfer
      pursuant to this Section 6.04 shall deliver to the Company and each other Member
      a notice containing the information required in a First Refusal Notice pursuant
      to the Article.

     

    c)       Each
      Party shall make representations as to good title and the absence of liens
      with
      respect to such Party’s Interest required to be transferred and as to the
      ownership of such Party’s Interest and the authority for and the validity and
      binding effect of any agreements entered into by such Party in connection with
      such Transfer; provided
      that no
      Party shall be required to make representations or warranties which are more
      extensive or accept obligations which are more onerous than those which are
      made
      or accepted by the Offering Party. No Party is required to effect a Transfer
      pursuant to this Section which a Member is unable to effect. Should any
      transaction for which a notice is given pursuant to this Section not be
      completed within one hundred twenty (120) days from the effective date of the
      notice, the Parties will have no further obligation to proceed with the
      transaction for which the notice was given and the Interest which were the
      subject mater of the transaction will remain subject to the terms and conditions
      of the this Agreement, provided that Offering Parties representing more than
      sixty percent (60%) of the Interest may, in good faith, extend this period
      for
      one time only for an additional period of thirty (30) days, if, in their
      reasonable judgment, the contemplated transaction remains likely to be
      consummated or the contemplated transaction has not been consummated because
      a
      Party has defaulted in his or her obligations hereunder.

     

    ARTICLE
      VII

     

    INDEMNIFICATION
      OF TOT SIBBNS

     

    Except
      as
      expressly provided herein, the Parties to this Agreement shall have no liability
      to the other for any loss suffered which arises out of any action or inaction
      if, in good faith, it is determined that such course of conduct was in the
      best
      interests
      of TOT
      SIBBNS and such course of conduct did not constitute negligence or misconduct.
      The Parties to this Agreement shall each be indemnified by the other against
      losses, judgments, liabilities, expenses and amounts paid in settlement
      of any
      claims sustained by it in connection with TOT SIBBNS. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

     

    ACCOUNTS

     

    8.01       Books.
      TOT SIBBNS will maintain complete and accurate books of TOT SIBBNS’s affairs at
      TOT SIBBNS principal office. TOT Energy will have access thereto at all
      reasonable times. TOT Energy shall establish such audit controls as it deems
      necessary to comply with its obligations pursuant to the rules and regulations
      of the SEC and other regulators. Such books and records shall be maintained
      in
      accordance with applicable Russian account rules and shall be translated into
      GAAP as necessary.

     

    8.02       Reports,
      Returns and Audits. The Manager will furnish or will cause to be furnished
      to
      each Party:

     

    
      	 	
              (a)

            	
              Within
                fifteen (15) days after the end of each calendar month a cash receipt
                and
                disbursement statement for TOT SIBBNS for the preceding month.
                Additionally, such monthly statement shall include a statement from
                the
                Manager as to additional cash requirements of TOT
                SIBBNS.

            

    

     

    
      	 	
              (b)

            	
              Within
                thirty (30) days after the end of the Fiscal Year, audited financial
                statements for TOT SIBBNS prepared by auditors as retained by TOT
                Energy,
                such financial statements to include a statement of income, balance
                sheet,
                change in capital and statement of changes in cash flow.
                

            

    

     

    
      	 	
              (c)

            	
              Within
                thirty (30) days prior to the end of a Fiscal Year an annual budget
                for
                TOT SIBBNS for the next Fiscal Year of TOT SIBBNS. Such budget shall
                reflect the Manager’s reasonable estimates of the anticipated revenue and
                expenses of TOT SIBBNS on a monthly basis for TOT
                SIBBNS.

            

    

     

    ARTICLE
      IX

     

    MISCELLANEOUS
      PROVISIONS

     

    9.01
             Validity. In the event that any
      provision of this Agreement shall beheld to be invalid, the same shall not
      affect in any respect whatsoever the validity of the remainder of this
      Agreement. 

     

    9.02       Disputes.
      Any controversy arising under or relating to the interpretation or
      implementation of this Agreement or the breach thereof shall be construed under
      the laws of the State of Florida, USA and shall be settled by binding
      arbitration in London, England, under the rules of the International Arbitration
      Association. The prevailing party in arbitration and litigation shall be
      entitled to payment for all costs and attorney’s fees (both trial and appellate)
      incurred by it in regard to the proceedings.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.03
             Integrated Agreement. This Agreement
      constitutes the entire understanding and agreement among the parties hereto
      with
      respect to the subject matter hereof, and there are no agreements,
      understandings, restrictions or warranties among the parties other than those
      set forth herein provided for. 

     

    9.04
             Headings. The headings, titles and
      subtitles used in this Agreement are for ease of reference only and shall not
      control or affect the meaning or construction of any provision hereof.

     

    9.05
             Notices. Except as may be otherwise
      specifically provided in this Agreement, all notices required or permitted
      hereunder shall be in writing and shall be deemed to be delivered when deposited
      with an international courier postage prepaid, certified or registered mail,
      return receipt requested, addressed to the parties at their respective addresses
      set forth in this Agreement or at such other addresses as may be subsequently
      specified by written notice. 

     

    9.06
             Severability. Every provision hereof
      is intended to be severable, and if any term or provision hereof is illegal
      or
      invalid for any reason whatsoever or would affect TOT SIBBNS status for income
      tax purposes, such provision shall be invalid, but such illegality or invalidity
      shall not affect the validity of the remainder of the Agreement.

     

    9.07
             Other Instruments. The parties hereto
      covenant and agree that they will execute each such other and further
      instruments and documents as are or may become reasonably necessary or
      convenient to effectuate and carry out the purposes of this Agreement.

     

    9.08       Counterparts.
      This Agreement may be executed in counterparts, each of which shall be deemed
      to
      be an original, and shall be binding upon the Party or Parties who executed
      the
      same, but all of such counterparts shall constitute one and the same
      agreement.

     

    9.09       Construction.
      Every covenant, term, and provision of this Agreement shall be construed simply
      according to its fair meaning and not strictly for or against any
      Party.

     

    9.10       Amendments/Modifications.
      This Agreement may only be amended or modified by a written instrument executed
      by all Parties hereto and/or bound hereby.

     

    [Signatures
      appear on following page]

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
      Effective Date. 

     

    
      	
              TOT
                ENERGY, INC.

              

              

              

              By:
                ________________________

              Name:
                Mike Zoi

              Title:
                Chief Executive Officer

              
 

              

              EVGENI
                BOGARAD

              

              

              

              ____________________________

              Evgeni
                BogaradUnassociated Document

    EXHIBIT
      10.1

    

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    

    This
      EMPLOYMENT AGREEMENT (this "Agreement")
      is
      made and entered into as of this 18th day of July 2008 (the “Effective
      Date”),
      by
      and between FOLDERA, INC., a Nevada corporation ("Employer"),
      and
      JAMES J. FIEDLER ("Employee").
      

    

    RECITALS

    

    A.    Employer
      desires to obtain the benefit of the services of Employee and Employee desires
      to render such services to Employer.

    

    B.    Employer
      and Employee desire to set forth the terms and conditions of Employee’s
      employment with Employer on the terms and subject to the conditions of this
      Agreement.

    

    AGREEMENT

    

    In
      consideration of the foregoing recitals and of the mutual covenants and
      conditions contained herein, the parties, intending to be legally bound, agree
      as follows:

    

    1.    Term.     
      Employer agrees to employ Employee, and Employee agrees to serve Employer,
      in
      accordance with the terms of this Agreement, for a term beginning on the
      Effective Date and continuing for a period of three (3) years thereafter unless
      earlier terminated in accordance with the provisions hereof. To the extent
      that
      Employee remains employed by Employer after the expiration of the initial Term,
      and the initial Term of this Agreement is not otherwise renewed or continued
      in
      writing by Employer and Employee, then Employee’s employment status shall no
      longer be subject to the terms and conditions of this Agreement and shall be
      “at-will” without any continuing right to employment by Employer.

    

    2.    Employment
      of Employee.

     

    (a)    Specific
      Positions.
      Employer and Employee hereby agree that, subject to the provisions of this
      Agreement, Employer will employ Employee and Employee will serve Employer as
      the
      President and Chief Executive Officer of Employer. Employee shall perform such
      usual and customary duties of such office and as may be delegated to Employee
      from time to time by Employer, subject always to the policies as determined
      from
      time to time by Employer. In addition, Employee’s reporting relationship shall
      initially be determined by the Chief Executive Officer of Employer. Employer
      reserves the right to change Employee's position and reporting relationship
      subject to the needs of its business. 

    

    (b)    Promotion
      of Employer's Business.
      During
      the term of this Agreement, Employee shall not engage in any business
      competitive with Employer. Employee agrees to devote his full business time,
      attention, knowledge, skill and energy to the business, affairs and interests
      of
      Employer and matters related thereto, and shall use his best efforts and
      abilities to promote Employer's interests; provided,
      however,
      that
      Employee is not precluded from devoting reasonable periods of time required:
      (i)
      for serving as a director or committee member of any organization that does
      not
      compete with Employer or that does not involve a conflict of interest with
      Employer; or (ii) for managing his personal investments; so long as in either
      case, such activities do not materially interfere with the regular performance
      of his duties under this Agreement

    

    
      
         

      

      
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    (c)    Principal
      Office.
      Employee's principal office and normal place of work shall be at Employer's
      Executive offices in Southern California or as otherwise assigned by Employer
      consistent with the needs of its business. Employee's normal place of work
      shall
      be defined as any office where Employee is consistently requested by Employer
      to
      commute to more than one day per week. 

    

    3.    Salary.     
      Employer shall pay to Employee during the term of this Agreement a base salary
      ("Base
      Salary")
      of
      $250,000 per year payable in accordance with Employer’s normal payroll. The Base
      Salary may be reviewed annually thereafter and may be increased (but not
      decreased) at Employer's sole discretion in accordance with Employer's normal
      review process. Notwithstanding the foregoing, and regardless of payments of
      partial salary, upon Employer‘s obtaining financing by the fourth quarter 2008
      (the “financing”),
      in
      the original minimum principal amount of $5,000,000 executed by Employer, the
      Base Salary shall then come into effect.

    

    4.    Bonuses.  In
      addition to the Base Salary, Employee shall be entitled to the following
      additional compensation:

    

    (a)    Bonus
      Plans Established by Employer.
      Subject
      to Employee’s meeting applicable eligibility requirements, Employee shall be
      entitled to participate in any bonus plan that may be established by the Board
      of Directors of Employer (the “Board”)
      for
      the benefit of Employer’s employees. Nothing in this Section 4(a), however,
      shall be construed or interpreted to require Employer to adopt or implement
      any
      such bonus plan. 

    

    (b)    Discretionary
      Bonuses.
      The
      Employee shall be entitled to participate in discretionary bonuses and incentive
      payments which are now or become authorized and declared by the CEO/President
      or
      its authorized representative and approved by the Board of Directors. The
      Employee shall be entitled to an annual cash performance bonus of up to 100%
      of
      base salary, plus stock options at the discretion of the Board of Directors,
      depending upon the achievement of specific goals set by the CEO/President.
      

    

    5.    Stock
      Options.
      

    

    (a)    Employer
      shall grant to Employee, effective as of the Effective Date, an option to
      purchase 69,338,810 [pre-reverse stock split] shares (the “Original
      Option Shares”)
      of
      Employer common stock, at an exercise price in an amount equal to $0.03 per
      share of common stock, which is at least equal to the fair market value of
      the
      common stock of Employer as of the Effective Date, with vesting as follows:
      one
      third of all option shares shall vest upon commencement of employment with
      Employer; one third of all option shares shall vest ninety (90) days from the
      commencement of employment with Employer; and, the remaining one third of all
      option shares shall vest one hundred eighty (180) days from the commencement
      of
      employment with Employer. 

    

    
      
         

      

      
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    (b)     If
      at any
      time during the term of this Agreement, the Employee is either terminated
      without cause, or for good reason, or death or disability, such Employee shall
      be immediately vested in all of his remaining option shares (as designated
      in 5a
      above).

     

    6.    Benefits.

    

    (a)    Fringe
      Benefits.   
      During Employee's employment by Employer under this Agreement, Employee shall
      be
      eligible for participation in and shall be covered by any and all such medical,
      dental, life, disability and other voluntary insurance plans and such other
      similar benefits generally available to other employees of Employer in similar
      employment positions, on the same terms as such employees, subject to meeting
      applicable eligibility requirements; provided,
      however,
      that
      Employer shall pay or reimburse Employee for the actual cost of his and his
      dependents’ medical and dental insurance premiums.

    

    (b)    Reimbursements.   
      During Employee's employment with Employer under this Agreement, Employee shall
      be entitled to receive prompt reimbursement of all reasonable expenses incurred
      by Employee in performing services hereunder, including all expenses of travel
      at the request of, or in the service of, Employer provided that such expenses
      are incurred and accounted for in accordance with the policies and procedures
      established from time to time by Employer.

    

    (c)    Nonqualified
      Deferred Compensation.   
      In its sole and absolute discretion, Employer may establish a nonqualified
      deferred compensation plan for the benefit of Employee. The terms and conditions
      of such arrangement shall be set forth in a separate plan document, which shall
      specify the obligations of Employer and Employee. Employer contributions may
      be
      subject to vesting requirements and payment of compensation, and may require
      Employee to sign a release agreement in favor of Employer. The Plan shall only
      be available to a "select group of management" as defined under Employee
      Retirement Income Security Act of 1974. Any Plan assets that have been set
      aside
      to fund Employer's obligation to make payment of deferred compensation shall
      be
      at all times subject to Employer’s general creditors.

    

    7.    Termination.
      

    

    (a)    Termination
      for Cause.   
      Employer shall have the right, exercisable immediately upon written notice,
      to
      terminate Employee's employment for "Cause."

    

    (i)    Definition
      of Cause.
      As used
      herein, "Cause"
      means
      any of the following: (A) illegal use of narcotics by Employee; (B) consistent
      public drunkenness by Employee which materially and adversely affects Employee's
      performance under this Agreement; (C) Employee is convicted by a court of
      competent jurisdiction, pleads "no contest" to a felony or any other conduct
      of
      a criminal nature involving moral turpitude (other than minor traffic
      violations); (D) Employee intentionally engages in fraud, embezzlement or any
      other illegal conduct substantially detrimental to the business or reputation
      of
      Employer, regardless of whether such conduct is designed to defraud Employer
      or
      others; (E) Employee imparts material confidential information relating to
      Employer or its business to competitors or to other third parties other than
      in
      the course of carrying out Employee's duties; (F) Employee refuses to perform
      his duties hereunder or otherwise breaches any material covenant, warranty
      or
      representation of this Agreement, or Employee's Confidential Information and
      Assignment of Inventions and Copyrights Agreement with Employer, and fails
      to
      cure such breach (if such breach is then capable of being cured) within 10
      business days following written notice thereof specifying in reasonable detail
      the nature of such breach, or if such breach is not capable of being cured
      in
      such time, a cure shall not have been diligently initiated within such 10
      business day period, (G) violation of any rules, policies or procedures of
      Employer, as documented in Employer’s employee manual, associate guidebook or
      other written or electronically published company policies; (H) Employee’s
      willful failure to follow any lawful directive of the Board; and (I) any action
      on the part of Employee which materially discredits or disparages Employer
      or
      its reputation.

    

    
      
         

      

      
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    (ii)    Effect
      of Termination.
      Upon
      termination in accordance with this Section 7(a), Employee shall be entitled
      to
      no further payments from Employer under this Agreement, except for the payments,
      of cash and in-kind, provided for under Sections 3 and 6 of this Agreement
      accrued hereunder through, but not including, the effective date of such
      termination. Employer's exercise of its right to terminate for Cause shall
      be
      without prejudice to any other remedy to which it may be entitled at law, in
      equity or under this Agreement.

    

    (b)    Voluntary
      Termination.
      Employee may terminate his employment at any time by giving no less than 30
      days' written notice to Employer. Employer reserves the right to accept
      Employee's voluntary termination immediately, without notice and without any
      further payment obligation except as described below.

    

    (i)    No
      Reason.
      Upon
      termination in accordance with this Section 7(b), except as otherwise provided
      in Section 7(b) (ii), below, Employee shall be entitled to no further payments
      from Employer under this Agreement, except for the payments, of cash and
      in-kind, provided for under Sections 3 and 6 of this Agreement accrued hereunder
      through, but not including, the effective date of such termination.

    

    (ii)    Good
      Reason.
      Notwithstanding anything to the contrary in Section 7(b) (i), above, if Employee
      terminates his employment under this Section 7(b) for Good Reason (as defined
      below), Employee shall be entitled to receive from Employer all of the
      compensation and benefits provided for in Section 7(d), below. As used herein,
      "Good
      Reason"
      means
      any of the following: (A) the assignment to Employee of duties materially
      inconsistent with those of other employees of Employer in similar employment
      positions, and Employee provides written notice to Employer within 60 days
      of
      such assignment that such duties are materially inconsistent with those duties
      of such similarly-situated employees, and Employer fails to release Employee
      from his obligation to perform such inconsistent duties and to re-assign
      Employee to his customary duties within 20 business days after Employer's
      receipt of such notice; or (B) if, without the consent of Employee, Employee's
      normal place of work is or becomes situated more than 25 linear miles from
      Employee's personal residence as of the Effective Date, or (C) a failure by
      Employer to comply with any other material provision of this Agreement which
      has
      not been cured within 60 days after notice of such noncompliance has been given
      by Employee to Employer, or if such failure is not capable of being cured in
      such time, a cure shall not have been diligently initiated by Employer within
      such 60 day period.

    

    
      
         

      

      
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    (c)    Termination
      Due to Death or Disability.
      This
      Agreement shall automatically terminate upon the death of Employee. In addition,
      if any disability or incapacity of Employee to perform his duties as the result
      of any injury, sickness or physical, mental or emotional condition continues
      for
      a period of 70 consecutive days or a total of 70 days in any 90-day period,
      Employer may terminate Employee's employment upon written notice to Employee.
      Upon termination in accordance with this Section 7(c), Employee (or Employee's
      estate, as the case may be) shall be entitled to those payments, of cash and
      in-kind, provided for under Sections 3 through 6, inclusive, of this Agreement
      accrued hereunder through, but not including, the date of death or, in the
      case
      of disability, the date of termination. During such time that Employee is unable
      to perform his duties as a result of any injury, sickness or physical, mental
      or
      emotional condition, Employer, at its option, may reduce the Base Salary by
      the
      amount, if any, of the disability insurance or similar benefits for which
      Employee receives as a result of such injury, sickness or physical, mental
      or
      emotional condition.
      Such
      reductions to the Base Salary, if any, shall be limited to benefits actually
      received by Employer from disability insurance plans paid for by Employer or
      from state or federal government mandated disability plans. The Base Salary
      shall not be reduced by any disability insurance benefits received by Employee,
      if any, from plans purchased by Employee.

    

    (d)    Termination
      Without Cause.
      Employer shall have the right, exercisable upon written notice, to terminate
      Employee's employment under this Agreement for any reason other than set forth
      in Sections 7(a) and (c), above, at any time during the Term. If Employee is
      so
      terminated by Employer pursuant to this Section 7(d) during the Term,
Employer
      agrees to (i) pay
      to Employee the Base Salary, and (ii) provide the same medical, dental,
      long-term disability and life insurance pursuant to Section 6(a) to which
      Employee was entitled hereunder as of the date of termination provided, however,
      that in the case of such medical and dental insurance, that Employee makes
      a
      timely election for continuation coverage under the Consolidated Omnibus Budget
      Reconciliation Act of 1985, as amended (“COBRA”),
      in
      each case (i.e.,
      the
      Base Salary and insurance), until the earlier to occur of (A) the
      expiration of the remaining portion of the Term of this Agreement, or
      (B) the nine-month period commencing on the date Employee is terminated.
      Employer shall make such payments in accordance with its regular payroll
      schedule.
      If any
      such payments are due Employee upon a Cessation of Business, all remaining
      payments shall become immediately due and payable upon the occurrence of such
      Cessation of Business.

    

    (f)    Change
      in Control.
      If
      during the Term of this Agreement there are both: 

    

    	i.  	
            a
              "change in control" of the Employer; and

          

    

    	ii.  	
            a
              termination of the Employee without cause pursuant to Section
              7.d.,

          

    

    	iii.  	
            or
              a termination by the Employee for "good reason"; then the Employee
              shall
              be entitled to the following compensation and benefits:
              

          

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    (1)    In
      addition to any benefits that had accrued to the Date of Termination, the
      Employer shall pay to the Employee his base salary through the remaining term
      of
      this Agreement, based on the rate in effect at the time of
      Termination.

    

    The
      term
      "change in control" as applied to the Employer is defined solely as; (1) any
      person (as the term is used in Sections 13(d) and 14(d) of the Exchange Act)
      is
      or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
      Act), directly or indirectly of securities of the Employer representing 50%
      or
      more of the combined voting power of the Employer’s outstanding securities; (2)
      a reorganization, merger, consolidation, sale of all or substantially all of
      the
      assets of the Employer or a similar transaction in which the Employer is not
      the
      surviving entity.

    

    (g)    Exclusive
      Remedy.  
      The payments contemplated by this Agreement shall constitute Employee's
      exclusive and sole remedy for any claim that Employee might otherwise have
      against Employer under this Agreement which, but for Employee's termination
      of
      employment hereunder, might otherwise be due and payable by Employer to
      Employee. Employee covenants not to assert or pursue any such remedies, other
      than an action to enforce the payments due to Employee under this Agreement.
      Nothing in this Section 7(e), however, shall be construed to bar, preclude
      or
      otherwise limit Employee's right to bring an action against Employer if
      Employee's termination of employment with Employer was otherwise unlawful or
      in
      violation of public policy.

    

    8.    Miscellaneous.

    

    (a)    Withholdings.  
      All payments to Employee hereunder shall be made after reduction for all
      federal, state and local withholding and payroll taxes, all as determined under
      applicable law and regulations, and Employer shall make all reports and similar
      filings required by such law and regulations with respect to such payments,
      withholdings and taxes.

    

    (b)    Succession.  
      This Agreement shall inure to the benefit of and shall be binding upon Employer,
      its successors and assigns. The obligations and duties of Employee hereunder
      shall be personal and not assignable.

    

    (c)    Notices.  
      Any and all notices, demands, requests or other communications hereunder shall
      be in writing and shall be deemed duly given when personally delivered to or
      transmitted by overnight express delivery or by facsimile to and received by
      the
      party to whom such notice is intended (provided the original thereof is sent
      by
      mail, in the manner set forth below, on the next business day after the
      facsimile transmission is sent), or in lieu of such personal delivery or
      overnight express delivery or facsimile transmission, on receipt when deposited
      in the United States mail, first-class, certified or registered, postage
      prepaid, return receipt requested, addressed to the applicable party at the
      address set forth below such party's signature to this Agreement. The parties
      may change their respective addresses for the purpose of this Section 8(c)
      by
      giving notice of such change to the other parties in the manner which is
      provided in this Section 8(c).

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    (d)    Entire
      Agreement.  
      This Agreement contains the entire agreement of the parties relating to the
      subject matter hereof, and it replaces and supersedes any prior agreements,
      whether oral or written, between the parties relating to said subject
      matter.

    

    (e)    Headings.  
      The headings of Sections herein are used for convenience only and shall not
      affect the meaning or contents hereof.

    

    (f)    Waiver;
      Amendment.  
      No provision hereof may be waived except by a written agreement signed by the
      waiving party. The waiver of any term or of any condition of this Agreement
      shall not be deemed to constitute the waiver of any other term or condition.
      This Agreement may be amended only by a written agreement signed by the parties
      hereto.

    

    (g)    Severability.   
      If any of the provisions of this Agreement shall be held unenforceable by the
      final determination of a court of competent jurisdiction and all appeals
      therefrom shall have failed or the time for such appeals shall have expired,
      such provision or provisions shall be deemed eliminated from this Agreement
      but
      the remaining provisions shall nevertheless be given full effect. In the event
      this Agreement or any portion hereof is more restrictive than permitted by
      the
      law of the jurisdiction in which enforcement is sought, this Agreement or such
      portion shall be limited in that jurisdiction only to the extent required by
      the
      law of that jurisdiction.

    

    (h)    Governing
      Law.  
      This Agreement shall be governed by and construed in accordance with the laws
      of
      the State of California.

    

    (i)    Counterparts.  
      This Agreement may be executed in any number of counterparts each of which
      shall
      be enforceable against the parties executing such counterparts, and all of
      which
      together shall constitute a single document. Except as otherwise stated herein,
      in lieu of the original documents, a facsimile transmission or copy of the
      original documents shall be as effective and enforceable as the
      original.

    

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

    

    

    
      	
              "EMPLOYER":

               

              FOLDERA,
                INC.,

              a
                Nevada corporation

               

               

              By: 
                /s/
                Hugh
                Dunkerley                        
                  

              Hugh
                Dunkerley

              Chief
                Executive Officer

            	 	
              "EMPLOYEE":

               

               

              JAMES
                J. FIEDLER

               

               

              /s/
                James J.
                Fiedler                    
                

              James
                J. Fiedler

            

    

     

    
      
         

      

      
        7

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