Document:

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                                                                   Exhibit 10.30

                                                                  Execution copy

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                             SHAREHOLDER AGREEMENT

                                  dated as of

                                 June 29, 2000

                                 by and between

                        KHANTY MANSIYSK OIL CORPORATION,

                    BRUNSWICK FITZGIBBONS TRUST COMPANY LLC

                                      and

                        THE BOGATCHEV FAMILY 2000 TRUSTS

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                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                   ARTICLE I
                                  Definitions

SECTION 1.1.   Definitions                                                  1

                                   ARTICLE II
                               Third Party Offers

SECTION 2.1.   Third Party Offers                                             4

                                  ARTICLE III
                             Transfer Restrictions

SECTION 3.1.   Restrictions                                                 4
SECTION 3.2.   Right of First Offer                                         5
SECTION 3.3.   Legend                                                       5
SECTION 3.4.   Compliance with Applicable Law                               6
SECTION 3.5.   Effect                                                       6

                                   ARTICLE IV
                              Registration Rights

SECTION 4.1.   Eligible Shares                                              6
SECTION 4.2.   Demand Registration                                          6
SECTION 4.3.   Incidental Registration                                      6
SECTION 4.4.   Registration Procedures                                      7
SECTION 4.5.   Indemnification                                              9

                                   ARTICLE V
                   Board Representation and Voting Covenants

SECTION 5.1.   Trust Nominees                                               10
SECTION 5.2.   Removal of Trust Directors                                   10
SECTION 5.3.   Replacement of the Trust Director                            11
SECTION 5.4.   Voting Shares                                                11

                                   ARTICLE VI
                             Additional Obligations

SECTION 6.1.   Additional Obligations                                       11

                                  ARTICLE VII
                                  Termination

SECTION 7.1.   Termination                                                  11

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                                   ARTICLE IX
                               Drag Along Rights

SECTION 8.1.   Drag Along                                                   11
SECTION 8.2.   Procedure                                                    11

                                   ARTICLE IX
                                Tag Along Rights

SECTION 9.1.   Tag Along Offer                                              12
SECTION 9.2.   Exercise                                                     12

                                   ARTICLE X
                                 Miscellaneous

SECTION 10.1.  Effectiveness                                                13
SECTION 10.2.  Notices                                                      13
SECTION 10.3.  Interpretation                                               14
SECTION 10.4.  Severability                                                 14
SECTION 10.5.  Counterparts                                                 14
SECTION 10.6.  Entire Agreement; No Third Party Beneficiaries               14
SECTION 10.7.  Further Assurances                                           14
SECTION 10.8.  Governing Law; Equitable Remedies                            14
SECTION 10.9.  Amendments; Waivers                                          14
SECTION 10.10. Assignment                                                   14

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SHAREHOLDER AGREEMENT, dated as of June 29, 2000 by and between Khanty Mansiysk
Oil Corporation, a Delaware corporation ("KMOC"), Brunswick Fitzgibbons Trust
Company LLC, a Delaware limited liability company ("BFTC"), and "The Bogatchev
Family 2000 Trusts", a trust established and governed under New York law
pursuant to a Trust Agreement, dated as of June 23, 2000 (the "Trust").

            WHEREAS, Prato Investments Limited, a company organized and existing
under the laws of the Commonwealth of the Bahamas ("Prato") is a shareholder in
the Waldo Securities S.A., an international business corporation organized and
existing under the laws of the British Virgin Islands ("Waldo"), which is the
owner of 103,220 (One Hundred Three Thousand, Two Hundred Twenty) shares of
common stock, no par value per share, of KMOC;

            WHEREAS, pursuant to a Resolution of the Board of Directors of Waldo
dated June 29, 2000, Waldo has approved the transfer by Waldo to the Trust of
47,056 (Forty Seven Thousand, Fifty Six) shares of common stock, no par value
per share, of KMOC (the "Transfer Shares") in connection with the transfer by
Prato of its ownership interest in Waldo;

            WHEREAS the parties hereto wish to set forth their agreement
concerning certain matters relating to Bogatchev Trusts' ownership and
disposition of the Transfer Shares or any other shares of common stock of KMOC
acquired by Bogatchev Trusts by any other means subsequent to the Effective
Date, unless otherwise agreed in writing by the Panics hereto, (collectively,
the "Shares").

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

                                   ARTICLE 1.
                                  DEFINITIONS

            SECTION 1.1 Definitions. As used in this Agreement, the following
terms shall have the following meanings:

            "Affiliate" of any Person means any other Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such first Person. For purposes of the definition
of affiliate, "control" has the meaning specified in Rule 12b-2 under the
Exchange Act as in effect on the date of this Agreement.

            "Applicable Law" shall mean, with respect to any Person, any
statute, law, regulation, ordinance, rule, judgment, rule of common law, order,
decree, award, Governmental Approval, concession, grant, franchise, license,
agreement, directive, guideline, policy, requirement, or other governmental
restriction or any similar form of decision of, or determination by, or any
interpretation or administration of any of the foregoing by, any Governmental
Authority, whether in effect as of the date hereof or thereafter and in each
case as amended, applicable to such Person or its subsidiaries or their
respective assets.

            A Person shall be deemed to "Beneficially Own", to have "Beneficial
Ownership" of, or to be "Beneficially Owning" any securities (which securities
shall also be deemed "Beneficially Owned" by such Person) that such Person is
deemed to "beneficially own" within the meaning of Rule 13d-3 under the Exchange
Act as in effect on the date of this Agreement.

            "Best efforts" with respect to any action subject to such a best
efforts obligation shall mean all efforts to take such action as may be taken in
a commercially reasonable manner.

            "BFTC" has the meaning set forth in the recitals of this Agreement.

            "Change of Control" with respect to KMOC shall be deemed to have
occurred at such time as a "person" or "group" (within the meaning of Section
13(d)(3) of the Exchange Act) (i) becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the KMOC Voting Securities or (ii) otherwise
obtains control of KMOC.

            "Demand" has the meaning set forth in Section 4.2(a).

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            "Drag Along Sale" shall have the meaning set forth in Section 8.1.

            "Drag Along Notice" shall have the meaning set forth in Section 8.2.

            "Drag Along Purchaser" shall have the meaning set forth in Section
8.1.

            "Drag Along Sellers" shall have the meaning set forth in Section
8.1.

            "Effective Date" means the date on which the Trust is issued or
otherwise acquires any Shares.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

            "First Offer Price" has the meaning set forth in Section 3.2(a).

            "Governmental Approval" means any action, order, authorization,
consent, approval, license, lease, ruling, permit, tariff, rate, certification,
exemption, filing or registration by or with any Governmental Authority.

            "Governmental Authority" means any government or political
subdivision thereof, governmental department, commission, board, bureau, agency,
regulatory authority, instrumentality, judicial or administrative body having
jurisdiction over the matter or matters in question.

            "Group" has the meaning set forth in Section 13(d)(3) of the
Exchange Act as in effect on the date of this Agreement.

            "Indemnified Person" has the meaning set forth in Section 4.3(a).

            "Initial Public Offering" means the initial public offering of KMOC
Common Stock.

            "KMOC" has the meaning set forth in the recitals to this Agreement.

            "KMOC Board" means the board of directors of KMOC.

            "KMOC Common Stock" means common stock, no par value, of KMOC.

            "KMOC Voting Securities" means KMOC Common Stock and any other
issued and outstanding securities of KMOC generally entitled to vote in the
election of directors of KMOC.

            "Offered Shares" has the meaning set forth in Section 3.2(a).

            "Other KMOC Holders" means the holders of the Other KMOC Shares.

            "Other KMOC Shares" means securities of KMOC not held by a
Shareholder.

            "Participating Seller" has the meaning set forth in Section 9.2.

            "Permitted Transferee" has the meaning set forth in Section 3.1(c).

            "Person" means any individual, group, corporation, firm,
partnership, joint venture, trust, business association, organization,
governmental entity or other entity.

            "Prato" has the meaning set forth in the recitals to this Agreement.

            "Public Offering" means any offering of stock of KMOC registered
under the Securities Act.

            "Purchased Shares" has the meaning set forth in recitals to this
Agreement.

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            "Response Period" has the meaning set forth in Section 3.2(b).

            "Sale" has the meaning set forth in Section 9.1.

            "Sale Percentage" has the meaning set forth in Section 9.1(a).

            "SEC" means the Securities and Exchange Commission or any successor
governmental entity.

            "Securities Act" means the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

            "Selling Holder" has the meaning set forth in Section 9.1.

            "Shares" has the meaning set forth in the recitals to this
Agreement.

            "Shareholder" means the Trust at such time as the Trust Beneficially
Owns Shares and any Permitted Transferee that holds Shares.

            "Tag Along Notice" shall have the meaning set forth in Section 9.1.

            "Tag Along Offerees" shall have the meaning set forth in Section
9.1.

            "Tag Along Purchaser" shall have the meaning set forth in Section
9.1(a).

            "Third Party Offer" means a bona fide offer to enter into a
transaction by a Person other than the Trust or any of the Trust's affiliates or
any other Person acting on behalf of the Trust or any of the Trust's respective
affiliates which would result in a Change of Control of KMOC or a transfer of
all or substantially all of the assets of KMOC.

            "Transfer" has the meaning set forth in Section 3.1.

            "Transfer Agreement" has the meaning set forth in Section 6.1.

            "Transfer Shares" has the meaning set forth in the recitals to this
Agreement.

            "Transfer Notice" has the meaning set forth in Section 3.2(a).

            "Trust" has the meaning set forth in the recitals to this Agreement.

            "Trust Director" has the meaning set forth in the recitals to this
Agreement.

            "Waldo" has the meaning set forth in the recitals to this Agreement.

            "Wholly Owned Subsidiary" means, with respect to any Person, as of
any date of determination, any other Person as to which such Person owns,
directly or indirectly, or otherwise controls, 100% of the voting shares or
other similar interests.

                                   ARTICLE 2.
                               THIRD PARTY OFFERS

            SECTION 2.1 Third Party Offers. If, prior to the tenth anniversary
of the Effective Date, KMOC becomes the subject of a Third Party Offer that is
(a) approved by a majority of the KMOC Board and (b) supported by the holders of
a majority of the KMOC Voting Securities (i) in the event of a Third Party
Offer, the consummation of which does not require action by the holders of the
KMOC Voting Securities, that have taken a position on such transaction, other
than the Shareholders, or (ii) in the event of a Third Party Offer, the
consummation of which requires action of the holders of KMOC Voting Securities,
whether at a meeting or by written consent, that have voted in favor of such
Third Party Offer, other than the Shareholders, KMOC shall deliver a written
notice to the Trust, briefly describing the material terms of such Third Party
Offer, and the Trust shall, within ten business days after receipt of such
notice, either (x) offer to acquire all or substantially all of the assets of
KMOC or the Other KMOC Shares, as the case may be, on terms at least as
favorable to the

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Other KMOC Holders as those contemplated by such Third Party Offer or (y)
confirm in writing that it will support, and at the appropriate time support,
such Third Party Offer, including by voting and causing each of the Shareholders
to vote all Shares Beneficially Owned by such Shareholder eligible to vote
thereon in favor of such Third Party Offer or, if applicable, tendering or
selling and causing each of the Shareholders to tender or sell all of the Shares
Beneficially Owned by it to the Person making such Third Party Offer. For
purposes of (b)(i) of the foregoing sentence of this Section 2.1, in order to
determine whether a Third Party Offer is supported by other holders of KMOC
Voting Securities, KMOC may use any reasonable method, taking into account
confidentiality concerns, including engaging the services of a proxy solicitor
or similar firm. The notice referred to in the first sentence of this Section
2.1 shall be delivered promptly after the approval of the Third Party Offer by
the KMOC Board and the determination of the support by the holders of a majority
of the KMOC Voting Securities who have taken a position on such transaction or
the approval by the holders of a majority of the KMOC Voting Securities that
have voted in favor of such Third Party Offer, as the case may be.

                                   ARTICLE 3.
                             TRANSFER RESTRICTIONS

            SECTION 3.1 Restrictions. Except in connection with (i) a Third
Party Offer as provided in Section 2.1 or (ii) a registered Public Offering
pursuant to Article IV, no Shareholder shall, sell, pledge, assign, grant a
participation interest in, encumber or otherwise transfer or dispose of any
Shares to any other Person, whether directly, indirectly, voluntarily,
involuntarily, by operation of law, pursuant to judicial process or otherwise (a
"Transfer") without the prior written consent of KMOC, which shall not be
unreasonably withheld, except in accordance with one of the following:

            a.    subject to compliance with the provisions of Section 3.2,
                  pursuant to a sale to any one Person or group in an amount
                  less than 5% of the outstanding securities of any class of
                  KMOC; provided, however, that the aggregate of such sales made
                  by the Shareholders as a group in any one year shall not
                  exceed 10% of the outstanding securities of any class of KMOC;

            b.    pursuant to a merger, consolidation or other business
                  combination involving the Trust, where the Trust is not the
                  surviving entity, or a sale of all or substantially all of the
                  Trusts' assets; provided, however, that the surviving or
                  purchasing entity agrees to be bound by the terms of this
                  Agreement; or

            c.    pursuant to a Transfer of Shares by the Trust to a Wholly
                  Owned Subsidiary of the Trust, from a Wholly Owned Subsidiary
                  of the Trust to the Trust or between Wholly Owned Subsidiaries
                  of the Trust (any such transferee shall be referred to herein
                  as a "Permitted Transferee"), provided that in the case of any
                  such Transfer, the Trust shall have provided KMOC with written
                  notice of such proposed Transfer at least 15 days prior to
                  consummating such Transfer stating the name and address of the
                  Permitted Transferee, the relationship between the Trust and
                  the Permitted Transferee, and the Permitted Transferee shall
                  have executed a copy of this Agreement as a shareholder of
                  KMOC. If any Permitted Transferee to whom Shares have been
                  Transferred pursuant to this Section 3.1 by the Trust ceases
                  to be a Permitted Transferee, such Shares shall be Transferred
                  back to the Trust immediately prior to the time such Person
                  ceases to be a Permitted Transferee of the Trust. The Trust
                  and such Permitted Transferee shall be jointly and severally
                  liable for any breach of this Agreement by such Permitted
                  Transferee.

            SECTION 3.2 Right of First Offer.

            a.    If a Shareholder desires to transfer any Shares to any Person
                  other than pursuant to the provisions of Sections 2.1, 3.1(b)
                  or 3.1(e) or Article IV, the Shareholder shall first give
                  written notice (a "Transfer Notice") to that effect to KMOC
                  containing (i) the number of Shares proposed to be transferred
                  (the "Offered Shares"), and (ii) the purchase price (the
                  "First Offer Price") which the Shareholder proposes to be paid
                  for the Offered Shares.

            b.    KMOC shall have a period of 30 days after the date of receipt
                  of the Transfer Notice (the "Response Period") to accept the
                  offer made pursuant to the Transfer Notice to purchase all of
                  the Offered Shares (on its own behalf or on the behalf of
                  others) at the First Offer Price by delivering written notice
                  of acceptance to the Shareholder within the Response Period.

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            c.    If KMOC elects to purchase (on its behalf or on the behalf of
                  others) all of the Offered Shares, the closing of the sale of
                  the Offered Shares will be held at KMOC's principal office in
                  New York on a date to be specified by KMOC which is not less
                  than 10 days nor more than 60 days after the end of the
                  Response Period. At the closing, KMOC will deliver the
                  consideration in accordance with the terms of the offer set
                  forth in the Transfer Notice, and the Shareholder will deliver
                  the Offered Shares to KMOC, duly endorsed for transfer, free
                  and clear of all liens, claims and encumbrances.

            d.    If, at the end of the Response Period, KMOC has not given
                  notice of its decision to purchase all of the Offered Shares,
                  then the Shareholder shall be entitled for a period of 90 days
                  beginning the day after the expiration of the Response Period
                  to sell the Offered Shares at a price not lower than the First
                  Offer Price and on terms not more favorable to the transferee
                  than were contained in the Transfer Notice. Promptly after any
                  sale pursuant to this Section 3.2, the Shareholder shall
                  notify KMOC of the consummation thereof and shall furnish such
                  evidence of the completion (including time of completion) of
                  such sale and of the terms thereof as KMOC may request.

            e.    If, at the end of any such 90-day period provided for in this
                  Section 3.2, the Shareholder has not completed the sale of the
                  Offered Shares, the Shareholder shall no longer be permitted
                  to sell any of such Offered Shares pursuant to this Section
                  3.2 without again fully complying with the provisions of this
                  Section 3.2 and all the restrictions on sale, transfer,
                  assignment or other disposition contained in this Agreement
                  shall again be in effect.

            f.    Notwithstanding the foregoing, in the event that KMOC fails to
                  close the purchase of the Offered Shares on the date specified
                  in its notice of acceptance, the Shareholder shall be
                  entitled, for a period of 120 days from the closing date
                  originally set by KMOC in its offer of acceptance, to sell the
                  Offered Shares at any reasonably negotiated price to any third
                  party without having to further comply with the provisions of
                  this Section 3.2; provided, however, that in the event that
                  KMOC's failure to close the purchase is due to an order,
                  injunction or other similar mandate from a regulatory body of
                  competent jurisdiction and KMOC is using its best efforts to
                  cause such order, injunction or mandate, as the case may be,
                  to not apply to the purchase of the Offered Shares then KMOC
                  shall have until the earlier of (i) the expiration of 30 days
                  from the closing date originally set by KMOC in its acceptance
                  or (ii) such time as the order, injunction or mandate becomes
                  final and non-appealable, in which to close the purchase of
                  the Offered Shares before the provisions of this clause (f)
                  become applicable.

            SECTION 3.3 Legend. Each certificate representing the Shares shall
be stamped or otherwise imprinted with a legend in substantially the following
form:

            RESTRICTIONS ON TRANSFER OF SECURITIES: THE SECURITIES REPRESENTED
            BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
            ACT OF 1933, AS AMENDED, OR UNDER STATE SECURITIES LAWS. THE
            TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS
            SUBJECT TO THE CONDITIONS SPECIFIED IN A SHAREHOLDER AGREEMENT DATED
            JUNE 29, 2000. A COPY OF SUCH CONDITIONS WILL BE FURNISHED BY THE
            CORPORATION TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT
            CHARGE. THESE SECURITIES MAY NOT BE RESOLD OR TRANSFERRED UNLESS
            SUCH CONDITIONS ARE COMPLIED WITH AND UNLESS REGISTERED OR EXEMPT
            FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE
            STATE SECURITIES LAWS.

            SECTION 3.4 Compliance with Applicable Law, Etc. The exercise of the
right of first offer set forth in Section 3.2 and the completion of any transfer
or sale of Shares contemplated hereunder shall be subject to compliance with
Applicable Law. KMOC and the Shareholders shall cooperate with each other and
shall take all such action, including, without limitation, obtaining all
Governmental Approvals required to comply with Applicable Law in connection with
the sale or transfer of the Shares pursuant to this Agreement. KMOC and the
transferring Shareholder shall bear its own costs and expenses in connection
with obtaining any such Governmental Approvals.

            SECTION 3.5 Effect. Any purported transfer of securities that is not
in accordance with the provisions of this Article III shall be null and void and
of no force or effect and will not be registered on the stock transfer books of
KMOC.

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                                   ARTICLE 4.
                              REGISTRATION RIGHTS

            SECTION 4.1 Eligible Shares. The Shares shall be subject to the
registration rights in this Article IV until (i) a Registration Statement
covering such Shares has been declared effective by the SEC and such Shares have
been disposed of pursuant to such effective Registration Statement, (ii) the
Shares are distributed to the public pursuant to Rule 144 (or any similar
provision then in force) under the Securities Act or (iii) the Shares have
otherwise been transferred and may be resold by such transferee without
registration under the Securities Act and without restriction under Rule 144.

            SECTION 4.2 Demand Registration.

            a.    At any time after an Initial Public Offering, the Trust shall
                  have the right to make one written request (a "Demand") on the
                  Company to cause the Company to make reasonable efforts to
                  file and cause to be declared effective a Registration
                  Statement on Form S-1 or any other appropriate form under the
                  Securities Act with respect to the Shares; provided, that the
                  expected offering price of the Shares requested to be
                  registered is the greater of at least (i) 25% of the Trust's
                  aggregate Beneficial Ownership interest in or (ii)
                  $25,000,000. This Section 4.2 (a) shall be applicable for so
                  long as the Shares cannot be freely transferred pursuant to
                  Rule 144 under the Securities Act without the imposition of
                  volume, manner of sale and holding period limitations.

            b.    The Demand will set forth the number of Shares proposed to be
                  sold by the Shareholders and the intended method of
                  distribution of such shares.

            c.    If any offering or sale of Common Stock by the Shareholders
                  pursuant to a Registration Statement is not consummated due to
                  any failure by KMOC to perform its obligations under this
                  Agreement or pursuant to Section 4.3(b) hereof, the
                  Shareholders shall not be deemed to have made a Demand in
                  accordance with Section 4.2 (a) above with respect to which
                  such Registration Statement was filed.

            SECTION 4.3 Incidental Registration. If KMOC proposes at any time to
register KMOC Common Stock under the Securities Act (other than pursuant to a
registration statement on Form S-8 or Form S-4 (or a similar successor form))
with respect to an offering of KMOC Common Stock for its own account or for the
account of any of its security holders, it will promptly give written notice
thereof to the Trust (but in no event less than fifteen days before the
anticipated filing date), and offer the Shareholders the opportunity to register
such number of Shares as the Shareholders may request. Upon the written request
of the Trust made within 10 days after the receipt of any such notice (which
request shall specify the number of Shares intended to be disposed of by each
Shareholder), KMOC will, subject to the terms of this Agreement, use its best
efforts to include the Shares which KMOC has been requested to register in such
registration.

            a.    If the proposed registration by KMOC is an underwritten Public
                  Offering of KMOC Common Stock, then KMOC will use its best
                  efforts to cause the managing underwriter or underwriters to
                  include the Shares requested to be included by the Trust
                  (including Shares to be included on behalf of other
                  Shareholders) among those securities to be distributed by or
                  through such underwriters (on the same terms and conditions as
                  the KMOC Common Stock of KMOC included therein to the extent
                  appropriate). Notwithstanding the foregoing, if in the
                  reasonable judgment of the managing underwriters or
                  underwriters, the success of the Public Offering would be
                  adversely affected by inclusion of the Shares requested to be
                  included, KMOC shall include in such registration the number
                  (if any) of Shares so requested to be included which in the
                  opinion of such underwriters can be sold, but (i) only after
                  the inclusion in such registration of KMOC Common Stock being
                  sold by KMOC and (ii) only after the inclusion in such
                  registration of KMOC Common Stock being sold by persons
                  exercising any demand registration rights they may have in
                  respect of KMOC Common Stock. If, in the opinion of such
                  underwriters, some but not all of the Shares requested to be
                  included may be included in such registration, all
                  Shareholders requested to be included therein, and any other
                  holders of KMOC Common Stock who have substantially similar
                  registration rights to the holders of Shares and have
                  requested registration of their shares, shall share pro rata
                  in the number of such shares requested to be included therein
                  based on the number of such shares so requested to be included
                  by such persons.

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            b.    If, at any time after giving written notice of its intention
                  to register KMOC Common Stock and prior to the effective date
                  of the registration statement filed in connection with such
                  registration, KMOC shall determine for any reason either not
                  to register, or to delay registration of, such securities,
                  KMOC may, at its election, give written notice of such
                  determination to the Trust and, thereupon, (i) in the case of
                  a determination not to register, shall be relieved of its
                  obligation to register any Shares in connection with such
                  registration or (ii) in the case of a determination to delay
                  registering, shall be permitted to delay registering any
                  Shares, for the same period as the delay in registering such
                  other KMOC Common Stock.

            c.    The selection of the underwriters for any such offering shall
                  be at the sole discretion of KMOC.

            d.    KMOC will pay expenses associated with the registration and
                  sale of the Shares including without limitation legal,
                  accounting, printing and distribution fees and expenses,
                  except for registration fees associated with the Shares and
                  commissions and underwriting discounts payable with respect to
                  the Shares, which shall be paid by the Trust.

            SECTION 4.4 Registration Procedures.

            a.    If and whenever KMOC is required by the provisions of Section
                  4.2 or Section 4.3 hereof to effect the registration of
                  Shares, KMOC will as promptly as practicable:

                  (1)   furnish to the Trust such number of conformed copies of
                        such registration statement and of each such amendment
                        and supplement thereto (in each case including all
                        exhibits), such number of copies of the prospectus
                        included in such registration statement (including each
                        preliminary prospectus and any summary prospectus), in
                        conformity with the requirements of the Securities Act,
                        such documents incorporated by reference in such
                        registration statement or prospectus, and such other
                        documents, as the Trust may reasonably request to
                        facilitate the disposition of the Shares included in
                        such registration by the Shareholders;

                  (2)   use its best efforts to register or qualify the
                        securities covered by such registration statement under
                        such state securities or blue sky laws of such
                        jurisdictions, if applicable, as shall be reasonably
                        appropriate for distribution of the Shares; provided,
                        however, that KMOC shall not be required, solely in
                        order to accomplish the foregoing, to qualify to do
                        business as a foreign corporation in any jurisdiction
                        where it would not otherwise be required to qualify,
                        subject itself to taxation in any such jurisdiction or
                        consent to general service of process in any such
                        jurisdiction;

                  (3)   advise the Trust, promptly after it shall receive notice
                        or obtain knowledge thereof, of the issuance of any stop
                        order by the SEC or any state securities commission or
                        agency suspending the effectiveness of such registration
                        statement or the initiation or threatening of any
                        proceeding for that purpose and use its best efforts to
                        prevent the issuance of any stop order to obtain its
                        withdrawal if such stop order should be issued;

                  (4)   notify the Trust upon KMOC's discovery that, or upon the
                        happening of any event as a result of which, any
                        prospectus included in any registration statement which
                        includes Shares, as then in effect, includes an untrue
                        statement of a material fact or omits to state any
                        material fact required to be stated therein or necessary
                        to make the statements therein not misleading in the
                        light of the circumstances then existing, and at the
                        Trust's request prepare and furnish to the Trust a
                        reasonable number of copies of a supplement to or an
                        amendment of such prospectus as may be necessary so
                        that, as thereafter delivered to the purchasers of such
                        Shares, such prospectus shall not include an untrue
                        statement of a material fact or omit to state a material
                        fact required to be stated therein necessary to make the
                        statements therein not misleading in the light of the
                        circumstances then existing;

                  (5)   use its best efforts to cause all such Shares to be
                        listed on each securities exchange or inter-dealer
                        quotation system on which the KMOC Common Stock is then
                        listed or will be listed following the Public Offering,
                        provided that the applicable listing requirements are
                        satisfied.

                                       7
<PAGE>

            b.    If any registration pursuant to this Article IV shall be in
                  connection with an underwritten Public Offering and regardless
                  of whether the Trust participates in such registration, the
                  Trust, and each of the other Shareholders, agrees not to,
                  unless agreed to in writing by the managing underwriter or
                  underwriters or KMOC, effect any public sale or distribution,
                  including any sale pursuant to Rule 144 of the Securities Act,
                  of any Shares (other than as part of such underwritten Public
                  Offering) within the period commencing on a date specified by
                  the underwriter, not to exceed 30 days prior to the effective
                  date of such registration statement, and ending on a date
                  specified by the underwriter, not to exceed 180 days after the
                  effective date of such registration statement or such shorter
                  period as any other holder of securities of KMOC being sold
                  pursuant to the registration statement has agreed not to
                  effect any public sale or distribution. The Trust, and each of
                  the other Shareholders, agrees that KMOC may instruct its
                  transfer agent to place stop transfer notations in its records
                  to enforce this Section 4.4(b).

            c.    The Trust agrees, and each of the other Shareholders included
                  in such registration shall agree, that upon receipt of any
                  notice from KMOC of the occurrence of any event of the kind
                  described in Section 4.4(a)(4), it will forthwith discontinue
                  the disposition of Shares pursuant to the registration
                  statement relating to such Shares until its receipt of a
                  supplemented or amended prospectus from KMOC and, if so
                  directed by KMOC, will deliver to KMOC all copies, other than
                  permanent file copies, then in such Shareholder's possession,
                  of the prospectus relating to such Shares at the time of
                  receipt of such notice; provided, that if the registration
                  statement is for an underwritten Public Offering, each
                  Shareholder included in such registration will use its best
                  efforts to cause the underwriters of such Public Offering to
                  discontinue the disposition of Shares.

            d.    If any Shares are included in any registration pursuant to
                  this Article IV, the Trust agrees, and each of the other
                  Shareholders selling Shares shall agree, to take such actions
                  and furnish KMOC with such information regarding itself and
                  relating to the distribution of the Shares as KMOC may from
                  time to time reasonably request and as shall be required in
                  connection with any registration, qualification or compliance
                  referred to in this Agreement, including, without limitation,
                  the following: (i) enter into an appropriate underwriting
                  agreement containing terms and provisions then customary in
                  agreements of that nature and cause each underwriter of the
                  Shares to be sold to agree in writing with KMOC to provisions
                  with respect to indemnification and contribution that are
                  substantially the same as set forth in Section 4.3 hereof;
                  (ii) enter into such custody agreements, powers of attorney
                  and related documents at such time and on such terms and
                  conditions as may then be customarily required in connection
                  with such offering; and (iii) distribute the Shares in
                  accordance with and in the manner of the distribution
                  contemplated by the applicable registration statement and
                  prospectus.

            SECTION 4.5 Indemnification.

            a.    Indemnification by KMOC. In the event of any registration of
                  Shares pursuant to Article IV, KMOC agrees to indemnify and
                  hold harmless the seller of Shares and its directors and
                  officers and each other person, if any, who controls the
                  seller (each, an "Indemnified Person") from and against any
                  and all losses, claims, damages, liabilities and expenses
                  (including reasonable attorneys' fees and costs of
                  investigation) to which such Indemnified Person becomes
                  subject under the Securities Act or otherwise, insofar as such
                  losses, claims, damages, liabilities or expenses arise out of
                  or based upon (i) any untrue statement or alleged untrue
                  statement of material fact contained in any registration
                  statement under which such securities were registered or
                  qualified under the Securities Act or otherwise, any
                  preliminary prospectus, final prospectus or summary prospectus
                  included therein, or any amendment or supplement thereto, or
                  (ii) any omission or alleged omission to state therein a
                  material fact required to be stated therein or necessary to
                  make the statements therein not misleading, provided that KMOC
                  shall not be liable to such Indemnified Person in any such
                  case to the extent that any such loss, claim, damage,
                  liability (or action or proceeding in respect thereof) or
                  expense arises out of or is based upon an untrue statement or
                  alleged untrue statement or omission or alleged omission made
                  in such registration statement, any such preliminary
                  prospectus, final prospectus, summary prospectus, amendment or
                  supplement in reliance upon and in conformity with written
                  information furnished by such seller of Shares to KMOC for
                  inclusion therein, whether directly or indirectly by
                  reference.

                                       8
<PAGE>

            b.    Indemnification by the Shareholders. The Trust agrees, and
                  each of the other Shareholders participating in a registration
                  of shares pursuant to this Article IV shall agree, to
                  indemnify and hold harmless (in the same manner and to the
                  same extent as set forth in Section 4.5(a)), KMOC and its
                  directors and officers and each other person, if any, who
                  controls KMOC within the meaning of the Securities Act arising
                  out of or based upon (i) any untrue statement or alleged
                  untrue statement of material fact contained in any
                  registration statement under which such securities were
                  registered or qualified under the Securities Act or otherwise,
                  any preliminary prospectus, final prospectus or summary
                  prospectus included therein, or an amendment or supplement
                  thereto, or (ii) any omission or alleged omission to state
                  therein a material fact required to be stated therein or
                  necessary to make the statements therein not misleading to the
                  extent that such statement or omission or alleged statement or
                  omission was made solely in reliance upon and in conformity
                  with written information furnished to KMOC by such Shareholder
                  for use in the preparation of such registration statement,
                  preliminary prospectus, final prospectus, summary prospectus,
                  amendment or supplement.

            c.    Defense of Claim. If any action or proceeding (including any
                  governmental investigation) shall be brought or directed
                  against any party hereto (or its officers, directors or
                  agents), the party against whom indemnification is sought
                  shall be permitted to (or, if requested, shall) assume the
                  defense of such claim, including the employment of counsel and
                  the payment of all expenses, unless a conflict of interest may
                  exist with respect to such claim or differing or additional
                  defenses may be available to the other party. If defense of a
                  claim is assumed by an indemnifying party, the indemnified
                  party shall not be liable for any settlement of such action or
                  proceedings effected without their prior written consent. No
                  indemnifying party shall consent to entry of any judgment or
                  enter into any settlement, which does not include as an
                  unconditional term thereof the giving by the claimant or
                  plaintiff to the indemnified party of release from all
                  liability in respect to such claim or litigation. Any party
                  entitled to indemnification hereunder agrees to give prompt
                  written notice to the other party of any written notice of the
                  commencement of any action, suit, proceedings or investigation
                  or threat thereof for which such party may claim
                  indemnification or contribution pursuant to this Agreement;
                  provided, however; that failure to give such notice small not
                  limit any party's right to indemnification or contribution
                  hereunder except to the extent that the indemnifying party is
                  materially prejudiced thereby. Notwithstanding the foregoing,
                  an indemnified party hereunder shall always have the right to
                  employ separate counsel in any such action and to participate
                  in the defense thereof, but the fees and expenses of such
                  counsel shall be at the expense of such indemnified party.

            d.    Contribution. If the indemnification provided for in Sections
                  4.5(a) or 4.5(b) hereof is unavailable to a party that would
                  have been an indemnified party under any such Section in
                  respect of any losses, claims, damages or liabilities (or
                  actions or proceedings in respect thereof) referred to
                  therein, then each party that would have been an indemnifying
                  party thereunder shall, in lieu of indemnifying such
                  indemnified party, contribute to the amount paid or payable by
                  such indemnified party as a result of such losses, claims,
                  damages or liabilities (or actions or proceedings in respect
                  thereof) in such proportion as is appropriate to reflect the
                  relative fault of such indemnifying party on the one hand and
                  such indemnified party on the other in connection with the
                  statements or omissions or alleged statement or omission which
                  resulted in such losses, claims, damages or liabilities (or
                  actions or proceedings in respect thereof). The relative fault
                  shall be determined by reference to, among other things,
                  whether the untrue or alleged untrue statement of a material
                  fact or the omission or alleged omission to state a material
                  fact relates to information supplied by such indemnifying
                  party or such indemnified party and the parties' relative
                  intent, knowledge, access to information and opportunity to
                  correct or prevent such statement or omission. The amount paid
                  or payable by a contributing party as a result of the losses,
                  claims, damages or liabilities (or actions or proceedings in
                  respect thereof) referred to above in this Section 4.5(d)
                  shall include any legal or other expenses reasonably incurred
                  by such indemnified party in connection with investigating or
                  defending any such action or claim. No Person guilty of
                  fraudulent misrepresentation (within the meaning of Section
                  11(f) of the Securities Act) shall be entitled to contribution
                  from any Person who was not guilty of such fraudulent
                  misrepresentation.

                                       9
<PAGE>

                                   ARTICLE 5.
                   BOARD REPRESENTATION AND VOTING COVENANTS

            SECTION 5.1 Trust Nominees.

            a.    So long as the Trust holds an aggregate Beneficial Ownership
                  interest on a fully diluted basins in KMOC equal to or greater
                  than 10%, KMOC and BFTC shall exercise all authority under
                  applicable law to cause any state of directors presented to
                  the shareholders for election to the KMOC Board to consist of
                  such nominees that if elected, would result in the KMOC Board
                  consisting of one director nominated by the Trust (a "Trust
                  Director").

            b.    KMOC reserves the right to reject a request for inclusion of
                  any candidate nominated by the Trust if in the opinion of a
                  majority of the KMOC Board (excluding any Directors nominated
                  by the Trust) the appointment of such individual would not be
                  in the best interest of KMOC. In such event, the Trust will be
                  promptly notified of such rejection and the Trust shall have
                  the right to propose another nominee.

            SECTION 5.2 Removal of Trust Directors.

            a.    No Trust Director may be removed without the consent of the
                  Trust, provided, however, that the Trust agree to immediately
                  remove a Trust Director for cause as determined in good faith
                  by unanimous decision of all directors, other than the Trust
                  Director.

            b.    If at any time the Trust's aggregate percentage equity
                  ownership in KMOC decreases below 10% of the outstanding and
                  issued shares of KMOC on a fully diluted basis, within 10 days
                  thereafter, the first shall cause the Trust Director to resign
                  from the KMOC Board. Any vacancy on the KMOC Board created by
                  the resignation of the Trust Director shall be filled in
                  accordance with KMOC's Bylaws and Charter.

            SECTION 5.3 Replacement of the Trust Director. In the event that a
Trust Director shall cease to serve for reasons other than as a result of
removal pursuant to Section 8.2(b), the Trust shall have the right to nominate a
successor Trust Director; provided, however, that no director removed for cause
shall be re-nominated or reelected. KMOC shall, upon receipt of notice
identifying such nominee, promptly take all action necessary to cause the
appointment of such nominee to the KMOC Board in accordance with KMOC's Bylaws
and Charter.

            SECTION 5.4 Voting Shares. During the period commencing from the
date hereof and ending on the later to occur of (i) the sixth anniversary of the
Effective Date or (ii) the date of an initial Public Offering, each Shareholder
agrees to cause all Shares held by it to be present for quorum and other
purposes at all shareholder meetings of KMOC and to vote all Shares held by it
in favor of any director nomination recommended by the KMOC Board for approval
by shareholders of KMOC.

                                   ARTICLE 6.
                             ADDITIONAL OBLIGATIONS

            SECTION 6.1 Additional Obligations. Each Shareholder agrees to be
bound by the obligations set forth in Articles II, IV, V, VI and Section 9.1 of
the Voting and Transfer Agreement, dated as of October 15, 1997, among KMOC,
Khanty Holdings LLC, Brunswick Fitzgibbons Trust Company LLC and Waldo (the
"Transfer Agreement").

                                   ARTICLE 7.
                                  TERMINATION

            SECTION 7.1 Termination. Except with respect to Sections of this
Agreement which shall terminate on an earlier date as expressly provide herein,
this Agreement shall automatically terminate, with respect to each Shareholder,
on the date such Shareholder no longer Beneficially Owns any Shares; provided,
however, that the provisions of Section 4.3 shall survive the termination of
this Agreement with respect to each Shareholder and the Company and provided,

                                       10
<PAGE>

further, that as set forth in Section 3.1(a), the Trust shall be liable for any
breach of this Agreement by a Permitted Transferee even if at such time the
Trust does not hold any Shares.

                                   ARTICLE 8.
                               DRAG ALONG RIGHTS

            SECTION 8.1 Drag Along. During the period commencing on the
Effective Date and ending on the later to occur of (i) the sixth anniversary of
the Effective Date or (ii) the date of an Initial Public Offering, the
Shareholder hereby agrees, if requested by BFTC, to participate on the same
terms as BFTC in a Transfer to a person other than BFTC or any of BFTC's
affiliates (or any person acting on behalf of such parties) (a "Drag Along
Sale") of all of the KMOC Common Stock and rights to acquire KMOC Common Stock
Beneficially Owned by BFTC and its affiliates to any Person not affiliated with
BFTC (the "Drag Along Purchaser") in the manner and on the terms set forth in
this Article 8; provided, however, that (i) the amount of KMOC Common Stock
being sold by BFTC and Other KMOC Holders (the "Drag Along Sellers") in the Drag
Along Sale must aggregate, on a fully diluted basis, more than 50% of the
outstanding KMOC Common Stock on a fully diluted basis in order to make a
request to cause a Drag Along Sale pursuant to this Article 8 and (ii) the sale
price, if the Drag Along Sale takes place prior to an Initial Public Offering,
is equal to at least US$ 700 per share of KMOC Common Stock.

            SECTION 8.2. Procedure. If BFTC elects to exercise its rights under
this Article VIII, a notice (the "Drag Along Notice") shall be furnished by BFTC
to the Shareholders. The Drag Along Notice shall set forth the principal terms
of the Drag Along Sale, the purchase price, the closing date and the name and
address of the Drag Along Purchaser. If the Drag Along Sellers consummate the
sale referred to in the Drag Along Notice, the Shareholders shall be bound and
obligated to sell all of the shares of KMOC Common Stock and rights to acquire
KMOC Common Stock held by it and its affiliates in the Drag Along Sale on the
same terms and conditions. If at the end of the 90th day following the date of
the effectiveness of the Drag Along Notice, the Drag Along Sellers have not
completed the Drag Along Sale, the Shareholders shall be released from their
obligations under the Drag Along Notice, the Drag Along Notice shall be null and
void, and it shall be necessary for a separate Drag Along Notice to have been
furnished and the terms and provisions of this Article 8 separately complied
with, in order to consummate such Drag Along Sale pursuant to this Article 8,
unless the failure to complete such sale resulted from any failure by the
Shareholders to comply in any material respect with the terms of this Article 8.

                                  ARTICLE IX.
                                TAG ALONG RIGHTS

            SECTION 9.1 Tag Along Offer. If at any time prior to the Initial
Public Offering, BFTC or the Shareholders and/or any of their respective
affiliates (collectively, the "Selling Holder") desires to sell any KMOC Common
Stock (i) representing more than 5% (Five Percent) of the outstanding shares of
KMOC Common Stock to any one person in a single transaction or in a series of
related transactions or (ii) representing more than 7.5% (Seven and One Half
Percent) of the shares of KMOC Common Stock outstanding on a cumulative basis of
all sales of KMOC Common Stock made by such Selling Holder subsequent to the
Effective Date (but excluding sales which are subject to the preceding clause
(i) above), then prior to the consummation of such sale (a "Sale"), the Selling
Holder shall provide written notice (the "Tag Along Notice") of the proposed
Sale to BFTC or the Shareholders, as the case may be (the "Tag Along Offerees")
at least 45 days prior to the proposed date of the Sale. The Tag Along Notice
shall include:

            a     The principal terms of the proposed Sale, including the number
                  of shares of KMOC Common Stock to be purchased from the
                  Selling Holder, the percentage such shares represent of the
                  total number of shares of KMOC Common Stock Beneficially Owned
                  (on a fully diluted basis) by the Selling Holder (the "Sale
                  Percentage"), the purchase price and the name and address of
                  the proposed purchaser (the "Tag Along Purchaser"); and

            b.    An offer by the Selling Holder to include, at the option of
                  each Tag Along Offeree, in the Sale to the Tag Along Purchaser
                  such number of shares of KMOC Common Stock (not in any event
                  to exceed the Sale Percentage of the total number of shares of
                  KMOC Common Stock Beneficially Owned, on a fully diluted
                  basis, by such Tag Along Offeree) owned by each Tag Along
                  Offeree, on the same terms and conditions, with respect to
                  each share sold, as the Selling Holder shall sell such of its
                  shares. In addition, the exercise by the Shareholders of tag
                  along rights hereunder in respect of a proposed Sale by BFTC
                  shall be subordinate to the rights of holders of tag along
                  rights granted by BFTC prior to the Effective Date and
                  accordingly, the total number of shares of KMOC Common

                                       11
<PAGE>

                  Stock permitted to be sold by the Shareholders in any Sale by
                  BFTC hereunder shall be calculated following the exercise of
                  any tag along rights by such parties, but prior to the
                  proposed Sale by BFTC.

            SECTION 9.2. Exercise. Each Tag Along Offeree desiring to accept the
offer contained in the Tag Along Notice shall send a written commitment to the
Selling Holder specifying the number of shares of KMOC Common Stock (not in any
event to exceed the Sale Percentage of the total number of shares of Common
Stock Beneficially Owned, on a fully diluted basis, by such Tag Along Offeree)
which such Tag Along Offeree desires to have included in the Sale within thirty
(30) days after the effectiveness of the Tag Along Notice (each a "Participating
Seller"). Each Tag Along Offeree who has not so accepted such offer shall be
deemed to have waived all of its rights with respect to the Sale, and the
Selling Holder and the Participating Sellers shall thereafter be free to sell to
the Tag Along Purchaser, at a price no greater than the purchase price set forth
in the Tag Along Notice and otherwise on terms not more favorable in any
material respect to them than those set forth in the Tag Along Notice, without
any further obligation to such non-accepting Tag Along Offerees. If, prior to
consummation, the terms of such proposed Sale shall change with the result that
the price shall be greater than the maximum price set forth in the Tag Along
Notice or the other terms of such Sale shall be more favorable to a Selling
Holder in any material respect than as set forth in the Tag Along Notice, it
shall be necessary for a separate Tag Along Notice to have been furnished, and
the terms and provisions of this Article 9 separately complied with, in order to
consummate such proposed Sale pursuant to this Article V; provided, however,
that in the case of such a separate Tag Along Notice, the applicable period
referred to in Section 9.1 shall be 20 days and the applicable period mentioned
to above in this Section 9.2 shall be 15 days.

            The acceptance of each Participating Seller shall be irrevocable
except as hereinafter provided, and each such Participating Seller shall be
bound and obligated to sell in the Sale the number of shares which it specified
in its written commitment, on the same terms and conditions specified in the Tag
Along Notice. In the event the Selling Holder shall be unable to obtain the
inclusion in the Sale of all shares of KMOC Common Stock which the Selling
Holder and each Participating Seller desire to have included in the Sale (as
evidenced in the case of the Selling Holder by the Tag Along Notice and in the
case of each Participating Seller, by its written commitment), the number of
shares to be sold in the Sale by the Selling Holder and each Participating
Seller shall be reduced on a pro rata basis according to the proportion which
the number of shares which each such seller desires to have included in the Sale
bears to the total number of shares desired by all such sellers to have included
in the Sale.

            If at the end of the ninetieth (90th) day following the date of the
effectiveness of the Tag Along Notice, the Selling Holder has not completed the
Sale as provided in the foregoing provisions of this Article 9, each
Participating Seller shall be released from its obligations under its written
commitment, the Tag Along Notice shall be null and void, and it shall be
necessary for a separate Tag Along Notice to have been furnished, and the terms
and provisions of this Article 9 separately complied with, in order to
consummate such Sale pursuant to this Article 9, unless the failure to complete
such Sale resulted from any failure by any Tag Along Offeree to comply in any
material respect with the terms of this Article 9.

                                  ARTICLE 10.
                                 MISCELLANEOUS

            SECTION 10.1 Effectiveness. This Agreement shall be effective as of
the Effective Date.

            SECTION 10.2 Notices. All notices, requests and other communications
hereunder shall be in writing and shall be delivered by hand, by nationally
recognized courier service, by facsimile transmission, receipt confirmed or
certified mail (postage prepaid, return receipt requested, if available):

            If to KMOC, to:

                  Khanty Mansiysk Oil Corporation
                  152 W. 57th St, 29th Floor
                  New York, New York 10017
                  Attn: Mr. John B. Fitzgibbons
                  Phone: (212) 245-5544
                  Fax: (212) 245-1932

                                       12
<PAGE>

            If to the Trust or any other Shareholder, to:

                  The Bogatchev Family 2000 Trusts
                  C/o KMOC
                  152 West 57th Street, 29th Floor
                  New York, NY 10019
                  Attn: Trustee
                  Fax: +(1) (212) 245 1932

            With a copy to:

                  Alastair Tulloch, Esq.
                  Tulloch & Co, Solicitors
                  4 Hill Street
                  London, W1X 7FU
                  United Kingdom
                  Fax: +(44) (207) 318 1150

Each such notice, request or communication shall be effective (A) if delivered
by hand or by nationally recognized courier service, when delivered at the
address specified in this Section 10.2 (or in accordance with the latest
unrevoked written direction from such party), (B) if given by fax, when such fax
is transmitted to the fax number specified in this Section 10.2 (or in
accordance with the latest unrevoked written direction from such party), and the
appropriate confirmation is received or (C) if by certified mail, upon mailing.

            SECTION 10.3 Interpretation. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words "included,"
"includes" or "including" are used in this Agreement, they shall be deemed to be
followed by the words "without limitation."

            SECTION 10.4 Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
parties shall negotiate in good faith with a view to the substitution therefor
of a suitable and equitable solution in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid provision;
provided, however, that the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be in any way impaired thereby, it being intended that all of
the rights and privileges of the parties hereto shall be enforceable to the
fullest extent permitted by law.

            SECTION 10.5 Counterparts. This Agreement may be executed in two
counterparts, each of which shall be deemed an original and all of which shall,
taken together, be considered one and the same agreement, it being understood
that both parties need not sign the same counterpart.

            SECTION 10.6 Entire Agreement; No Third Party Beneficiaries. This
Agreement (a) constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof and (b) is not intended to confer upon any
Person, other than the parties hereto, any rights or remedies hereunder.

            SECTION 10.7 Further Assurances. Each party shall execute, deliver,
acknowledge and file such other documents and take such further actions as may
be reasonably requested from time to time by the other party hereto to give
effect to and carry out the transactions contemplated herein.

            SECTION 10.8 Governing Law; Equitable Remedies. This Agreement shall
be governed by and construed in accordance with the laws of the State of
Delaware, regardless of the laws that might otherwise govern under applicable
principles of conflicts of law. The parties hereto agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties hereto shall be entitled to equitable
relief, including in the form of injunctions, in order to enforce specifically
the provisions of this Agreement, in addition to any other remedy to which they
are entitled at law or in equity.

                                       13
<PAGE>

            SECTION 10.9 Amendments; Waivers.

            a.    No provision of this Agreement may be amended or waived unless
                  such amendment or waiver is in writing and signed, in the case
                  of an amendment, by the parties hereto, or in the case of a
                  waiver, by the party against whom the waiver is to be
                  effective.

            b.    No failure or delay by any party in exercising any right,
                  power or privilege hereunder shall operate as waiver thereof
                  nor shall any single or partial exercise thereof preclude any
                  other or further exercise thereof or the exercise of any other
                  right, power or privilege. The rights and remedies herein
                  provided shall be cumulative and not exclusive of any rights
                  or remedies provided by law.

            SECTION 10.10 Assignment. Neither this Agreement nor any of the
rights or obligations hereunder shall be assigned by either of the parties
hereto without the prior written consent of the other party, except (a) in
connection with a Transfer pursuant to and in accordance with, Article 3 hereof,
and (b) that either party may assign all its rights and obligations to the
assignee of all or substantially all of the assets of such party including an
acquisition through merger, provided that such party shall in no event be
released from its obligations hereunder without the prior written consent of the
other party. Subject to the preceding sentence, this Agreement will be binding
upon, inure to the benefit of and be enforceable by the parties and their
respective successors and assigns. Any attempted assignment in contravention
hereof shall be null and void.

            IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed and delivered, all as of the date first set forth above.

                                        KHANTY MANSIYSK OIL CORPORATION

                                        By:    /s/ S. Adam Deery
                                               ---------------------------------
                                        Name:  S. Adam Deery
                                        Title: General Counsel

                                        BRUNSWICK FITZGIBBONS TRUST COMPANY LLC

                                        By:    /s/ [ILLEGIBLE]
                                               ---------------------------------
                                        Name:
                                               ---------------------------------
                                        Title:
                                               ---------------------------------

                                        THE BOGATCHEV FAMILY 2000 TRUSTS
s
                                        By:    /s/ John Fitzgibbons
                                               ---------------------------------
                                        Name:  John Fitzgibbons
                                        Title: Trustee

                                       14<PAGE>

                                                                   Exhibit 10.31

                              EMPLOYMENT AGREEMENT

            EMPLOYMENT AGREEMENT (this "Agreement"), dated as of October 3,
1997, by and between Khanty Mansiysk Oil Corporation, a Delaware corporation
(the "Company"), and John B. Fitzgibbons (the "Executive").

            WHEREAS, in recognition of the Executive's experience and abilities,
the Company desires to assure itself of the employment of the Executive in
accordance with the terms and conditions provided herein; and

            WHEREAS, the Executive wishes to perform services for the Company in
accordance with the terms and conditions provided herein.

            NOW, THEREFORE, in consideration of the premises and the respective
covenants and agreements of the parties herein contained, and intending to be
legally bound hereby, the parties hereto agree as follows:

            1. Employment. The Company hereby agrees to employ the Executive,
and the Executive hereby agrees to perform services for the Company, on the
terms and conditions set forth herein.

            2. Term. This Agreement is for the two-year period (the "Term")
commencing on October 3, 1997 (the `Commencement Date"), and terminating on the
second anniversary of the Commencement Date, or upon the Executive's earlier
death, disability or other termination of employment pursuant to Section 6
hereof; provided, however, that on the first anniversary of the Commencement
Date and on each anniversary thereafter, the Term shall automatically be
extended for one additional year unless, not later than 90 days prior to such
dates, either party hereto shall have notified the other party hereto in writing
that such extension shall not take effect.

            3. Position. During the Term, the Executive shall serve as the Chief
Executive Officer and Secretary of the Company.

            4. Duties. During the Term, the Executive shall render services to
the best of his abilities in supervising and conducting the operations of the
Company.

<PAGE>

            5. Compensation and Related Matters.

            (a) Annual Base Salary. The Company shall pay to the Executive an
annual base salary (the "Base Salary") at a rate not less than $140,000, such
salary to be paid in conformity with the Company's payroll policies relating to
its senior executive officers (which policy shall provide for payment of such
annual base salary in no fewer than 12 equal monthly installments). During the
second year of the Term, the Base Salary shall be increased in a manner intended
to compensate the Executive for his success in achieving the objectives of the
Company, as determined by the Board of Directors of the Company in its sole
discretion, acting in good faith.

            (b) Bonus and Incentive Plans. During the Term, the Executive shall
be entitled to participate in stock option, bonus, economic incentive and other
executive compensation plans, programs and arrangements that are available to
other senior executive officers of the Company (the "Incentive Plans"). The
Executive shall be provided benefits under the Incentive Plans which, as
determined by the Board of Directors of the Company, acting in good faith, are
reasonable and equitable as compared to the level of benefits provided to all
other senior executive officers of the Company, after considering the status and
responsibilities of Executive and of such other senior executive officers. Any
awards granted to the Executive under the Incentive Plans shall be evidenced by
agreements containing terms and conditions mutually acceptable to the parties
hereto.

            (e) Pension and Welfare Benefits. During the Term, the Executive
shall be eligible to participate in the pension, retirement and health and
welfare plans ("Benefit Plans") provided to other senior executive officers of
the Company. The Executive shall be provided benefits under the Benefit Plans
which, as determined by the Board of Directors of the Company in its sole
discretion, acting in good faith, are reasonable and equitable as compared to
the level of benefits provided to all other senior executive officers of the
Company, after considering the status and responsibilities of Executive and of
such other senior executive officers. The Benefit Plans shall provide, in the
aggregate, a level of benefits consistent with standards for senior executive
officers of major United States companies in the oil and gas industry. The
Executive will be entitled to five (5) weeks of paid vacation during each
calendar year.

            (d) Business Expenses. The Executive shall be reimbursed for all
ordinary and necessary business expenses incurred by him in connection with

                                        2

<PAGE>

his employment upon submission by the Executive of receipts and other
documentation in accordance with the Company's normal reimbursement procedures.

            (e) Indemnification. During the Term, the Company will, to the
extent permitted by applicable law, indemnify the Executive against any claims
arising in connection with his employment with the Company to the same extent as
such indemnification is provided to other senior executive officers of the
Company

            6. Termination. The Executive's employment hereunder may be
terminated under the following circumstances:

            (a) Death. The Executive's employment hereunder shall terminate upon
his death.

            (b) Disability. If, as a result of the Executive's incapacity due to
physical or mental illness, the Executive shall have been absent from his duties
hereunder for the entire period of three consecutive months, the Company may
terminate the Executive's employment hereunder for "Disability."

            (e) Cause. The Company may terminate the Executive's employment
hereunder for "Cause." For purposes of this Agreement, the Company shall have
"Cause" to terminate the Executive's employment hereunder (i) upon the
Executive's conviction for the commission of an act or acts constituting a
felony, or (ii) upon the Executive's willful and continued failure to
substantially perform his duties hereunder (other than any such failure
resulting from the Executive's incapacity due to physical or mental illness),
after written notice has been delivered to the Executive by the Company, which
notice specifically identifies the manner in which the Executive has not
substantially performed his duties, and the Executive's failure to substantially
perform his duties is not cured within ten business days after notice of such
failure has been given to the Executive. Such ten business day period shall be
subject to extension in the event the Executive is diligently pursuing the cure
of said failure, and such cure reasonably requires more than 10 days to cure,
provided, however, that such period shall not be extended to exceed 20 business
days. For purposes of this Section 6(c), no act, or failure to act, on the
Executive's part shall be deemed "willful" unless done, or omitted to be done,
by the Executive not in good faith and without reasonable belief that the
Executive's act, or failure to act, was in the best interest of the Company.

                                        3

<PAGE>

            (d) Termination by the Executive. The Executive may terminate his
employment hereunder for "Good Reason." "Good Reason" for termination by the
Executive of the Executive's employment shall mean the occurrence (without the
Executive's consent) of any one of the following acts by the Company, or
failures by the Company to act: (i) a material failure to comply with Section 5
of this Agreement; (ii) the assignment to the Executive of any duties materially
inconsistent with the Executive's status as a senior executive officer of the
Company or a substantial diminution in the nature or status of the Executive's
responsibilities; (iii) the relocation of the Executive's principal place of
employment to a location more than 25 miles from the Executive's principal place
of employment immediately prior to such relocation or the Company's requiring
the Executive to be based anywhere other than such principal place of employment
(or permitted relocation thereof) except for required travel on the Company's
business to an extent substantially consistent with the Executive's present
business travel obligations; or (iv) any purported termination of the
Executive's employment which is not effected pursuant to a Notice of Termination
satisfying the requirements of Section 6(e) hereof..

            (e) Notice of Termination. Any termination of the Executive's
employment by the Company or by the Executive (other than termination under
Section 6(a) hereof) shall be communicated by written Notice of Termination to
the other party hereto in accordance with Section 10 hereof. For purposes of
this Agreement, a "Notice of Termination" shall mean a notice that shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the
provision so indicated.

            (f) Date of Termination. "Date of Termination" shall mean (i) if the
Executive's employment is terminated by his death, the date of his death and
(ii) if the Executive's employment is terminated pursuant to paragraph (b), (c)
or (d) above, the date specified in the Notice of Termination.

            7. Compensation Upon Termination or During Disability.

            (a) Disability or Death. During any period in which the Executive
fails to perform his duties hereunder as a result of incapacity due to physical
or mental illness, the Executive shall continue to receive his full Base Salary,
as well as other applicable employee benefits, until his employment is
terminated pursuant to Section 6(b) hereof. In the event the Executive's
employment is terminated pursuant to Section 6(a) or 6(b) hereof, then, as soon
as

                                        4

<PAGE>

practicable thereafter, the Company shall pay the Executive or the Executive's
Beneficiary (as defined in Section 9(b) hereof), as the ease may be, (i) all
unpaid amounts, if any, to which the Executive was entitled as of the Date of
Termination under Section 5(a) hereof and (ii) all unpaid amounts to which the
Executive was then entitled under the Incentive Plans, the Benefit Plans and any
other unpaid employee benefits, perquisites, vacation pay or other
reimbursements (the amounts set forth in clauses (i) and (ii) above being
hereinafter referred to as the "Accrued Obligations").

             (b) Termination for Cause; Voluntary Termination Without Good
Reason. If the Executive's employment is terminated (i) by the Company for Cause
or (ii) by the Executive other than for Good Reason, then the Company shall pay
all unpaid amounts, if any, to which the Executive was entitled as of the Date
of Termination under Section 5(a) hereof to the Executive, within ten (10) days
after the. Date of Termination, and the Company shall have no further
obligations to the Executive under this Agreement.

            (e) Termination Without Cause; Termination for Good Reason. If (i)
the Company shall terminate the Executive's employment for any reason whatsoever
(other than for Disability or for Cause), or (ii) the Executive shall terminate
his employment for Good Reason, then the Company shall pay to the Executive (or,
in the case of Section 7(e)(2) hereof, provide to the Executive and the
Executive's dependents), as the Executive's sole and exclusive remedy hereunder,
the following (collectively, the "Severance Payment"):

            (1) within ten (10) days after the Date of Termination:

                  (A) the Accrued Obligations; and

                  (B) a lump sum cash payment equal to the sum of

                        (i)   $500,000;

                        (ii)  any unpaid incentive compensation which has been
                              allocated or awarded to the Executive for a
                              completed fiscal year or other measuring period
                              preceding the Date of Termination under any such
                              plan and which, as of the Date of Termination, is
                              contingent only upon

                                        5

<PAGE>

                              the continued employment of the Executive to a
                              subsequent date; and

                        (iii) a pro rata portion to the Date of Termination of
                              the aggregate value of all contingent incentive
                              compensation awards to the Executive for all then
                              uncompleted periods under any such plan,
                              calculated as to each such award by multiplying
                              the award that the Executive would have earned on
                              the last day of the performance award period,
                              assuming the achievement, at the target level, of
                              the individual and corporate performance goals
                              established with respect to such award, by the
                              fraction obtained by dividing the number of full
                              months and any fractional portion of a month
                              during such performance award period through the
                              Date of Termination by the total number of months
                              in such performance award period; and

             (2)  for the one-year period immediately following the Date of
                  Termination, life, disability, accident and health insurance
                  benefits substantially similar to those provided to the
                  Executive and the Executive's dependents immediately prior to
                  the Date of Termination or, if more favorable to the
                  Executive, those provided to the Executive and the Executive's
                  dependents immediately prior to the first occurrence of an
                  event or circumstance constituting Good Reason, at no greater
                  cost to the Executive than the cost to the Executive
                  immediately prior to such date or occurrence.

             (d) (i) Whether or not the Executive becomes entitled to the
Severance Payments, if any of the payments or benefits received or to be
received by the Executive in connection with the Executive's termination of
employment, whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement (such payments or benefits, excluding the Gross-Up
Payment, being hereinafter referred to as the "Total Payments") will be subject
to the Excise Tax, the Company shall pay to the Executive an additional amount
(the "Gross-Up Payment") such that the net amount retained by the Executive,
after deduction of

                                        6

<PAGE>

any Excise Tax on the Total Payments and any federal, state and local income and
employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to the
Total Payments.

                  (ii) For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
(i) all of the Total Payments shall be treated as "parachute payments" (within
the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax
counsel ("Tax Counsel") reasonably acceptable to the Executive and selected by
the accounting firm which was, immediately prior to Date of Termination, the
Company's independent auditor (the "Auditor"), such payments or benefits (in
whole or in part) do not constitute parachute payments, including by reason of
section 280G(b)(4)(A) of the Code, (ii) all "excess parachute payments" within
the meaning of section 280G(b)(l) of the Code shall be treated as subject to the
Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments
(in whole or in part) represent reasonable compensation for services actually
rendered (within the meaning of section 280G(b)(4)(B) of the Code) in excess of
the Base Amount allocable to such reasonable compensation, or are otherwise not
subject to the Excise Tax, and (iii) the value of any none ash benefits or any
deferred payment or benefit shall be determined by the Auditor in accordance
with the principles of sections 280G(d)(3) and (4) of the Code. For purposes of
determining the amount of the Gross-Up Payment, the Executive shall be deemed to
pay federal income tax at the highest marginal rate of federal income taxation
in the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of the Executive's residence on the Date of Termination, net of the
maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes.

                  (iii) In the event that the Excise Tax is finally determined
to be less than the amount taken into account hereunder in calculating the
Gross-Up Payment, the Executive shall repay to the Company, within five (5)
business days following the time that the amount of such reduction in the Excise
Tax is finally determined, the portion of the Gross-Up Payment attributable to
such reduction (plus that portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state and local income and employment taxes imposed on
the Gross-Up Payment being repaid by the Executive, to the extent that such
repayment results in a reduction in the Excise Tax and a dollar-for-dollar
reduction in the Executive's taxable income and wages for purposes of federal,
state and local income and employment taxes, plus interest on the amount of such
repayment at

                                        7

<PAGE>

120% of the rate provided in section 1274(b)(2)(B) of the Code. In the event
that the Excise Tax is determined to exceed the amount taken into account
hereunder in calculating the Gross-Up Payment (including by reason of any
payment the existence or amount of which cannot be (determined at the time of
the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in
respect of such excess (plus any interest, penalties or additions payable by the
Executive with respect to such excess) within five (5) business days following
the time that the amount of such excess is finally determined. The Executive and
the Company shall each reasonably cooperate with the other in connection with
any administrative or judicial proceedings concerning the existence or amount of
liability for Excise Tax with respect to the Total Payments.

                  (iv) For purposes of this Section 7(d), (A) "Base Amount"
shall have the meaning set forth in section 280G(b)(3) of the Code; (B)"Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time; (C)
"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from
time to time and (D) "Excise Tax" shall mean any excise tax imposed under
section 4999 of the Code.

            8. Non-Disclosure; Confidentiality. The parties hereto agree,
recognize and acknowledge that during the Term the Executive will obtain
knowledge of confidential information regarding the business and affairs of the
Company. It is therefore agreed that the Executive shall respect and protect the
confidentiality of all confidential information pertaining to the Company, and
shall not without the prior written consent of the Company, disclose in any
fashion such confidential information to any person at any time during the Term
unless required in the course of the Executive's employment hereunder or
required by applicable law, rules, regulations or court, governmental or
regulatory authority order or decree. This Agreement shall be confidential
between the Company and the Executive.

            9. Successors; Binding Agreement.

            (a) The Company shall require any successor (whether direct or
indirect, by asset purchase, stock purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, by
agreement in form and substance reasonably satisfactory to the Executive, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, "Company" shall mean the
Compa-

                                       8
<PAGE>

ny as hereinbefore defined and any successor to its business and/or assets as
aforesaid or that otherwise becomes bound by all the terms and provisions of
this Agreement by operation of law.

            (b) This Agreement and all rights of the Executive hereunder shall
inure to the benefit of and be enforceable by the Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive should die while any amounts would still
be payable to him hereunder if he had continued to live, all such amounts,
unless -otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to the Executive's devisee, legatee, or other designee or, if
there be no such designee, to the Executive's estate (the "Beneficiary").

            10. Notice. For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or (unless otherwise
specified) mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed as follows:

            If to the Company:

                   Khanty Mansiysk Oil Corporation
                   125 Park Avenue, Suite 800
                   New York, New York 10017-5699

            Attention: Gerard De Geer If to the Executive:

                   Khanty Mansiysk Oil Corporation
                   125 Park Avenue, Suite 800
                   New York, New York 10017-5699

                   Attention: John B. Fitzgibbons

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

                                        9

<PAGE>

            11. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this
Agreement.

            12. Governing Law; Arbitration. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the state of New York without regard to its conflicts of law principles. Any
dispute, controversy or claim arising out of or relating to this Agreement,
including the breach, validity or termination thereof, shall be finally settled
by binding arbitration in New York, New York by one arbitrator in accordance
with the International Arbitration Rules of the American Arbitration Association
then in effect. Judgment upon the award of the arbitrator may be entered in any
court of competent jurisdiction. The arbitration shall be governed by the United
States Arbitration Act, 9 U.S.C. ss. 1-16.

            13. Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

            14. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

            15. Entire Agreement. This Agreement sets forth the entire agreement
of the parties hereto in respect of the subject matter contained herein and
supersedes any and all other prior agreements, promises, covenants,
arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto; and any
prior agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and cancelled.

                                       10

<PAGE>

            16. Legal Fees. The Company shall pay to the Executive all legal
fees and expenses incurred by the Executive in disputing in good faith any issue
hereunder relating to the termination of the Executive's employment, in seeking
in good faith to obtain or enforce any benefit or right provided by this
Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Code to any payment or
benefit provided hereunder. Such payments shall be made within five (5) business
days after delivery of the Executive's written request(s) for payment
accompanied by such evidence of fees and expenses incurred as the Company
reasonably may require.

            17. No Mitigation. The Company agrees that, if the Executive's
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any amounts
payable to the Executive by the Company pursuant to this Agreement. Further, the
amount of any payment or benefit provided for in this Agreement shall not be
reduced by any compensation earned by the Executive as the result of employment
by another employer, by retirement benefits, by offset against any amount
claimed to be owed by the Executive to the Company, or otherwise.

                                       11

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