Document:

STOCK
      PURCHASE AGREEMENT

    

      STOCK
        PURCHASE AGREEMENT (this “Agreement”), dated October
        6, 2006, by and among Star Energy Corporation, a Nevada
        corporation (“Buyer”),
        the
Persons
        listed
        on Exhibit A hereto (each, a “Seller”), and Volga-Neft Limited Company, a
        society with limited liability organized under the
        laws
        of
        the Russian Federation (“Company”).

    

    RECITALS:

    

    A. Sellers
      in the aggregate own one hundred percent (100%) of the issued and outstanding
      shares of capital stock of the Company (the “Seller Shares”).

    

      B. The
        parties hereto desire that Buyer acquire all
        of
        the Seller
        Shares
        upon the terms and subject to the conditions of this
        Agreement.

    

    C. The
      parties intend that the transactions contemplated by this Agreement constitute
      a
      tax-free reorganization pursuant to Section 351 and/or Section 368 of the
      Internal Revenue Code.

    

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

    

    ARTICLE
      I

    DEFINITIONS
      AND USAGE

    

    1.1
      DEFINITIONS

    

    Certain
      capitalized terms used in this Agreement are defined in Exhibit 1.1 attached
      hereto. 

    

    1.2
      USAGE

    

      (a) Interpretation.
        In this
        Agreement, unless a clear contrary intention appears: (i) the singular number
        includes the plural number and vice versa; (ii) reference to any Person includes
        such Person's successors and assigns,
        if
        applicable, unless
        prohibited by this Agreement, and reference to a Person in a particular capacity
        excludes such Person in any other capacity or in
        such
        Person’s individual capacity;
        (iii)
        reference to any gender includes each other gender; (iv) reference to any
        agreement, document or instrument means such agreement, document or instrument
        as amended or modified and in effect from time to time in accordance with
        the
        terms thereof; (v) reference to any Legal Requirement means such Legal
        Requirement as amended, modified, codified, replaced or reenacted, in whole
        or
        in part, and in effect from time to time, including rules and regulations
        promulgated thereunder, and reference to any section or other provision of
        any
        Legal Requirement means that provision of such Legal Requirement from time
        to
        time in effect and constituting the substantive amendment, modification,
        codification, replacement or reenactment of such section or other provision;
        (vi) "hereunder," "hereof," "hereto," and words of similar import shall be
        deemed references to this Agreement as a whole and not to any particular
        Article, Section or other provision hereof; (vii) "including" (and with
        correlative meaning "include") means including without limiting the generality
        of any description preceding such term; (viii) "or" is used in the inclusive
        sense of "and/or"; (ix) with respect to the determination of any period of
        time,
        "from" means "from and including" and "to" means "to but excluding"; and
        (x)
        references to documents, instruments or agreements shall be deemed to refer
        as
        well to all addenda, exhibits, schedules or amendments
        thereto.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (b) Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with GAAP.

    

    (c) Legal
      Representation of the Parties.
      The
      parties agree that each party was either represented by its own separate and
      independent counsel or had an opportunity to be so represented in connection
      with this Agreement. This Agreement was negotiated by the parties with the
      benefit of legal representation, and any rule of construction or interpretation
      otherwise requiring this Agreement to be construed or interpreted against any
      party shall not apply to any construction or interpretation hereof.

    

    ARTICLE
      II

    SALE
      OF
      SHARES; CONSIDERATION; CLOSING

    

    2.1
      THE
      SALE

    

    Upon
      the
      terms and subject to the conditions of this Agreement, at the
      Closing:

    

      (a)
        Each
        Seller shall sell, transfer and assign to Buyer, and Buyer shall purchase
        from
        each Seller, all
        of
such
        Seller’s respective Seller
        Shares
        and any and all rights in the Seller
        Shares
        to which such Seller is entitled, and by doing so Sellers shall be deemed
        to
        have assigned all of their
        rights,
        title
        and interest in and to the Seller
        Shares
        to Buyer. Such transfer
        of the
Seller
        Shares
        shall be evidenced by stock certificates, duly endorsed in blank or accompanied
        by stock powers duly executed in blank, or other instruments of transfer
        in form
        and substance satisfactory to Buyer.

    

      (b)
        In
        consideration therefor, Buyer shall issue to Sellers ten
        million
        (10,000,000) shares of common stock of Buyer
        (the “Consideration Shares”), which shall be allocated among Sellers as set
        forth on Exhibit A hereto.

    

    (c)
      The
      parties hereto intend that the transaction described herein qualify as a
      tax-free reorganization under Section 351 and/or 368 of the Code. 

    

    2.2
      CLOSING

    

      The
        closing
        of the purchase
        and sale
        transaction
        provided
        for in this Agreement (the "Closing") will take place at the offices of David
        Lubin & Associates, PLLC, 26 E. Hawthorne Avenue, Valley Stream, New York
        11580, simultaneously with the execution of this Agreement. Subject to the
        provisions of Article 9, failure to consummate the purchase and sale provided
        for in this Agreement on the date and time and at the place determined pursuant
        to this Section 2.2 will not result in the termination of this Agreement
        and
        will not relieve any party of any obligation under this Agreement. In such
        a
        situation, the Closing will occur as soon as practicable, subject to
the
        provisions of Article
        9
        hereof.

    

    
      
         

      

      
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    2.3
      CLOSING OBLIGATIONS

    

      In
        addition to any other documents to be delivered under any
        other
        provisions of this Agreement, at the Closing:

    

    (a) Sellers
      or Company, as the case may be, shall deliver to Buyer: 

    

      (i)
        stock
        certificates evidencing the Seller
        Shares,
        duly endorsed in blank or accompanied by stock powers duly executed in blank,
        with signatures guaranteed by a commercial bank, or other instruments of
        transfer in form and substance reasonably satisfactory to Buyer;

    

    (ii)
      the
      stock books, stock ledgers, minute books, and corporate seals of
      Company;

    

    (iii)
      written
      resignations of all the officers and directors of Company;

    

    (iv)
      the
      financial statements referred to in Section 3.4 hereof and other information
      required to be filed pursuant to the Exchange Act with the SEC by Buyer on
      its
      Current Report on Form 8-K in connection with the Closing;

    

    (v)
      a
      certificate executed by Seller representing and warranting to Buyer that each
      of
      Seller’s representations and warranties in this Agreement was accurate in all
      respects as of the date of this Agreement and is accurate in all respects as
      of
      the Closing Date as if made on the Closing Date (giving full effect to any
      supplements to the Schedules that were delivered by Seller to Buyer prior to
      the
      Closing Date in accordance with Section 5.5); 

    

    (vi)
      an
      opinion of Seller’s counsel in the form annexed hereto as Exhibit 2.3(a)(vi);
      and

    

    (vii)
      such other documents and other instruments of transfer and conveyance as may
      be
      requested by Buyer, each in form and substance satisfactory to Buyer and its
      legal counsel and executed by Seller, if necessary.

    

    (b) Buyer
      shall deliver to Sellers’ Agent:

    

    (i) stock
      certificates evidencing the Consideration Shares; and

    

    (ii) a
      certificate executed by Buyer as to the accuracy of its representations and
      warranties as of the date of this Agreement and as of the Closing and as to
      its
      compliance with and performance of its covenants and obligations to be performed
      or complied with at or before the Closing. 

     

    
      
         

      

      
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    2.4
       WAIVER
      OF
      RIGHT OF FIRST REFUSAL

    

    Each
      Seller hereby waives his or her right of first refusal to acquire the Seller
      Shares of the other Seller. The Company also waives its right of first refusal
      to acquire such Seller Shares from any of Sellers.

    

    2.5
       POST-CLOSING
      PRIVATE PLACEMENT

    

      As
        soon
        as practicable after the Closing, Buyer shall commence a private placement
        of
        units, each unit consisting
        of one share of common stock and one warrant entitling the holder thereof
        to
        purchase one share of common stock for $2.00, expiring three years after
        the
        date thereof
        (each,
“Unit”, collectively, the “Units”).
        The
        minimum number of Units
        offered
        for sale shall be 1,000,000 Units,
        and the
        maximum number of Units
        offered
        for sale shall be 5,000,000 Units.
        The
        purchase price of each Unit
        shall be
        $1.00. The offer and sale of such Units
        shall be
        made to “accredited investors” (as that term is defined in Rule 501 of the
        General Rules and Regulations under the Securities Act by reason of Rule
        501(a)(3)) pursuant to a private placement in accordance with Rule 506
        promulgated under the Securities Act. The private placement of the Units
        shall
        be completed no later than ninety (90) days after the Closing Date.

    

    ARTICLE
      III

      REPRESENTATIONS
        AND WARRANTIES OF SELLERS
        AND COMPANY

    

    Each
      of
      Sellers and Company,
      jointly and severally, represent and warrant to Buyer, as of the date hereof
      and
      as of the Closing Date, as follows:

    

    3.1
      ORGANIZATION
      AND GOOD STANDING

    

    (a) Schedule
      3.1(a) contains a complete and accurate list of Company's jurisdiction of
      organization and any other jurisdictions in which it is qualified to do business
      as a foreign entity. Company is a limited liability society duly organized,
      validly existing and in good standing under the laws of its jurisdiction of
      organization, with full corporate power and authority to conduct its business
      as
      it is now being conducted, to own or use the properties and assets that it
      purports to own or use, and to perform all its obligations under the Company
      Contracts. Company is duly qualified to do business as a foreign entity and
      is
      in good standing under the laws of each state or other jurisdiction in which
      either the ownership or use of the properties owned or used by it, or the nature
      of the activities conducted by it, requires such qualification.

    

    (b) Complete
      and accurate copies of the Governing Documents of Company, as currently in
      effect, are attached to Schedule 3.1(b) hereto.

    

    (c) Company
      has no subsidiaries and does not own any shares of capital stock or other
      securities of any other Person.

     

    
      
         

      

      
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    3.2
      ENFORCEABILITY; AUTHORITY; NO CONFLICT

    

      (a) This
        Agreement constitutes the legal, valid and binding obligation of each
Seller
        and
        of
        the
        Company, enforceable against each of them in accordance with its terms. Upon
        the
        execution and delivery by each of Seller and Company
        of this Agreement and each other document
        to be
        executed or delivered by Sellers at the Closing (collectively, the ‘Sellers’
        Closing Documents”), the Sellers’ Closing Documents will constitute the legal,
        valid and binding obligation of each Seller
        and of
        Company,
        enforceable against each of them in accordance with its terms. Each of Seller
        and of
        Company
        has the absolute and unrestricted right, power and authority to execute and
        deliver this Agreement and the Sellers’ Closing Documents to which it is a party
        and to perform its obligations under this Agreement and the Sellers’ Closing
        Documents, and such action has been duly authorized by all necessary action
        of
        Sellers
        and Company.
        Each of Seller and Company
        has all necessary legal capacity to enter into
        and
        deliver
        this
        Agreement and the Sellers’ Closing Documents to which it is a party and to
        perform such its obligations hereunder and thereunder. 

    

    (b) Neither
      the execution and delivery of this Agreement nor the consummation or performance
      of any of the Contemplated Transactions will, directly or indirectly (with
      or
      without notice or lapse of time):

    

      (i) breach
        (A) any
        provision of any of the Governing Documents of Company or (B) any resolution
        adopted by the board of directors or the shareholders of Company;

    

      (ii) breach
        or give
        any Governmental Body or other Person the right to challenge any of the
        Contemplated Transactions or to exercise any remedy or obtain any relief
        under
        any Legal Requirement or Order
        to
        which Company or any Seller,
        or any Assets,
        may be subject;

    

    (iii) contravene,
      conflict with or result in a violation or breach of any of the terms or
      requirements of, or give any Governmental Body the right to revoke, withdraw,
      suspend, cancel, terminate or modify, any Governmental Authorization that is
      held by Company or that otherwise relates to the Assets or to the business
      of
      Company;

    

      (iv) breach
        any
        provision of, or give any Person the right to declare a default or exercise
        any
        remedy under, or to accelerate the maturity or performance of, or payment
        under,
        or to cancel, terminate or modify, any Company Contract; or

    

      (v) result
        in
        the imposition or creation of any Encumbrance upon or with respect to any
        of the
        Assets.

    

      (c) Neither
        Company nor any Seller
        is
        required to give any notice to or obtain any Consent from any Person in
        connection with the execution and delivery of this Agreement
        or any
        of the Sellers’ Closing Documents
        or the
        consummation or performance of any of the Contemplated
        Transactions.

     

    
      
         

      

      
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    3.3
      CAPITALIZATION

    

      (a)
        Schedule 3.3(a) correctly and completely sets forth: (i) the authorized
share
        capital
        of Company;
        and (ii) the number of shares of each class of capital stock of Company
        issued and outstanding. Sellers are and will be on the Closing Date the sole
        shareholders of the Company. Each Seller is and will be on the Closing Date
        the
        record and beneficial owner of such Seller’s respective Seller
        Shares,
        free and clear of all Encumbrances. The
        Seller
        Shares
        constitute one hundred percent
        (100%)
        of
        the
        issued and outstanding shares of capital stock of the Company. The
        Seller
        Shares
        have been duly authorized and validly issued and are fully paid and
        non-assessable. All of the outstanding equity securities of Company were
        issued
        in compliance with the Securities Act of 1933, as amended (the "Securities
        Act"), any applicable securities laws, and any other Legal Requirements.

    

      (b)
        There
        are no Contracts relating to the issuance, sale or transfer of any equity
        securities or other securities of Company, including but
        not
        limited to, any
        of
        the following: options, warrants, agreements, or other rights relating
        to
        the
        acquisition of shares of Company's
        capital stock; securities or other obligations of Company convertible
        into shares of Company's
        capital stock; or sale agreements, shareholder agreements, pledges, proxies,
        voting trusts, powers of attorney, restrictions on transfer or other agreements
        or instruments binding
        up
        on
        Sellers
        (exclusive of any agreement to which Buyer
        is
        a party) and that relate to the ownership, voting or transfer of any shares
        of Company's
        capital stock. 

    

    3.4
      FINANCIAL STATEMENTS

    

      The
        financial statements previously delivered by Company to Buyer fairly present
        the
        financial condition and the results of operations, changes in shareholders'
        equity
        and cash flows of Company as at the respective dates of and for the periods
        referred to in such financial statements, all in accordance with GAAP. The
        financial statements referred to in this Section 3.4 reflect and will reflect
        the consistent application of such accounting principles throughout the periods
        involved, except as disclosed in the notes to such financial statements.
        The
        financial statements have been and will be prepared from and are in accordance
        with the accounting Records of Company. 

    

    3.5
      BOOKS
      AND RECORDS

    

      The
        books
        of account and other financial and other Records of Company, all of which
        have
        been made available to Buyer, are complete and correct,
        represent actual, bona fide transactions,
        and have
        been maintained in accordance with sound business practices. The minute books
        of
        Company, all of which have been made available to Buyer, contain accurate
        and
        complete Records of (a)
        all
        shareholder
        meetings
        held and
        all
        shareholder
        action
        taken,
        and (b)
        all meetings of Company’s
        board of
        directors and committees of Company’s
        board of
        directors,
        and no
        meeting of any such shareholders, board of directors or committees
        has been
        held for which minutes have not been prepared or are not contained in such
        minute books.

    

    
      
         

      

      
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    3.6
      TANGIBLE PERSONAL PROPERTY; SUFFICIENCY OF ASSETS

    

    (a)
       Schedule
      3.6(a) is a complete and accurate schedule describing, and specifying the
      location of, all Tangible Personal Property. Company owns good and marketable
      title to all of the Tangible Personal Property, free and clear of any
      Encumbrances, and none of the Tangible Personal Property is held under any
      lease, security agreement, conditional sales contract, license, or other title
      retention or security arrangement, or is located other than in the possession
      of
      Company.

    

    (b)
       The
      Assets (i) constitute all of the assets, tangible and intangible, of any nature
      whatsoever, necessary to operate Company's business in the manner presently
      operated by Company and (ii) include all of the operating assets of
      Company.

    

    3.7
      DESCRIPTION OF REAL PROPERTY

    

      (a)
        Schedule 3.7(a) identifies all tracts, parcels and subdivided lots of
        Real
        Property in
        which
        Company has an ownership interest.

    

      (b)
        Schedule 3.7(b) identifies all tracts, parcels and subdivided lots of
        Real
        Property in
        which
        Company has a leasehold interest and an accurate description (by location,
        name
        of lessor, effective
        date and
        term
        expiry date) of all Real
        Property Leases.

     

    3.8
      TITLE
      TO REAL PROPERTY

    

      Company
        owns good and marketable title to its respective estates in the Real Property,
        free and clear of any Encumbrances, other than: (i) liens for Taxes for the
        current tax year which are not yet due and payable; and (ii) those described
        in
        Schedule 3.8(a) ("Real Property
        Encumbrances").True and complete copies of (A) all deeds, existing title
        insurance policies and surveys of or pertaining to the Real Property and
        (B) all
        instruments, agreements and other documents evidencing, creating or constituting
        any Real Property
        Encumbrances have been delivered to Buyer. At the time of Closing, the Real
        Property
        shall be
        free and clear of all Real Property
        Encumbrances other than those identified on Schedule 3.8(a) as acceptable
        to
        Buyer ("Permitted Real Property
        Encumbrances").

    

    3.9
      CONDITION OF FACILITIES

    

      (a) Use
        of
        the Real Property for the various purposes for which it is presently being
        used
        is permitted as of right under all applicable zoning requirements
        and is not subject to "permitted nonconforming" use or structure
        classifications. All Improvements are in compliance with all applicable Legal
        Requirements, including those pertaining to zoning, building and the disabled,
        are in good repair and in good condition, ordinary wear and tear excepted,
        and
        are free from latent and patent defects. No part of any Improvement encroaches
        on any real property not included in the definition
        of Real
        Property, and there are no buildings, structures, fixtures or other Improvements
        primarily situated on adjoining real
        property
        that
        encroach
        up
        on any
        part of the Land. The Land for each owned Facility abuts on and has direct
        vehicular access to a public road or has access to a public road via a
        permanent, irrevocable, appurtenant easement benefiting such Land and comprising
        a part of the Real Property, is supplied with public or quasi-public utilities
        and other services appropriate for the operation of the Facilities located
        thereon and is not located within any flood plain or area subject to wetlands
        regulation or any similar restriction. There is no existing or proposed plan
        to
        modify or realign any street or highway or any existing or proposed eminent
        domain proceeding that would result in the taking of all or any part of any
        Facility or that would prevent or hinder the continued use of any Facility
        as
        heretofore used in the conduct of the business of Seller.

    

    
      
         

      

      
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    (b) Each
      item
      of Tangible Personal Property is in good repair and good operating condition,
      ordinary wear and tear excepted, is suitable for immediate use in the Ordinary
      Course of Business and is free from latent and patent defects. No item of
      Tangible Personal Property is in need of repair or replacement other than as
      part of routine maintenance in the Ordinary Course of Business. All Tangible
      Personal Property used in Company's business is in the possession of
      Company.

    

    3.10
      ACCOUNTS RECEIVABLE

    

    All
      Accounts Receivable that are reflected on the Balance Sheet or the Interim
      Balance Sheet or on the accounting Records of Company as of the Closing Date
      represent or will represent valid obligations arising from sales actually made
      or services actually performed by Company in the Ordinary Course of Business.
      Except to the extent paid prior to the Closing Date, such Accounts Receivable
      are or will be as of the Closing Date current and collectible net of the
      respective reserves shown on the Balance Sheet or the Interim Balance Sheet
      (which reserves are adequate and calculated consistent with past practice).
      Subject to such reserves, each of such Accounts Receivable either has been
      or
      will be collected in full, without any setoff, within ninety (90) days after
      the
      day on which it first becomes due and payable. There is no contest, claim,
      defense or right of setoff, other than returns in the Ordinary Course of
      Business of Company, under any Contract with any account debtor of an Account
      Receivable relating to the amount or validity of such Account Receivable.

    

    3.11
      INVENTORIES

    

      All
        items
        included in the Inventories consist of a quality and quantity usable and,
        with
        respect to finished goods, saleable, in the Ordinary Course of Business of
        Company. Company is not in possession of any inventory not owned by Company,
        including goods already sold, and no items included in the Inventories have
        been
        pledged as collateral or are held on consignment from others. All of the
        Inventories have been valued at the lower of cost or market value on a first
        in,
        first out basis. Inventories now on hand that were purchased after the date
        of
        the Balance Sheet or the Interim Balance Sheet were purchased in the Ordinary
        Course of Business of Company at a cost not exceeding market prices prevailing
        at the time of purchase. The quantities of each item
        falling
        within the definition
        of
        Inventories (whether raw materials, work-in-process or finished goods) are
        not
        excessive but are reasonable in the present circumstances of Company.
        Work-in-process Inventories are now valued, and will be valued on the Closing
        Date, according to GAAP.

    

    
      
         

      

      
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    3.12
      NO
      UNDISCLOSED LIABILITIES

    

      Company
        has no Liabilities, except for Liabilities reflected or reserved against
        in the
        Balance Sheet or the Interim Balance Sheet and current Liabilities
        incurred
        in the Ordinary Course of Business of Seller since the date of the Interim
        Balance Sheet.

    

    3.13
      TAXES

    

      (a) Tax
        Returns Filed and Taxes Paid.
        Company
        has filed or caused to be filed on a timely basis all Tax Returns and all
        reports with respect to Taxes that are or were required to be filed pursuant
        to
        all
        applicable Legal Requirements. All Tax Returns and reports filed by Company
        are
        true, correct and complete. Company has paid, or made provision for the payment
        of, all Taxes that have or may have become due for all periods covered by
        the
        Tax Returns or otherwise, or pursuant to any assessment received by Company,
        except such Taxes, if any, as are listed in Schedule 3.13(a) and are being
        contested in good faith and as to which adequate reserves (determined in
        accordance with GAAP) have been provided in the Balance Sheet and the Interim
        Balance Sheet. Except as provided in Schedule 3.13(a), Company currently
        is not
        the beneficiary of any extension of time within which to file any Tax Return.
        No
        claim has ever been made or is expected to be made by any Governmental Body
        in a
        jurisdiction where Company does not file Tax Returns that it is or may be
        subject to taxation in
        that
        jurisdiction. There are no Encumbrances on any of the Assets that arose in
        connection with any failure (or alleged failure) to pay any Tax, and Company
        has
        no Knowledge of any basis for assertion of any claims attributable to Taxes
        which, if adversely determined, would result in any such
        Encumbrance.

    

      (b) Delivery
        of Tax Returns and Information Regarding Audits and Potential
        Audits.
        Company
        has delivered or made available to Buyer copies of, and Schedule 3.13(b)
        contains a complete and accurate list of, all Tax Returns filed since January
        1,
        2005. Schedule 3.13(b)
        contains a complete and accurate list of all Tax Returns of Company that
        have
        been audited or are currently under audit and accurately describes any
        deficiencies or other amounts that were paid or are currently being contested.
        To the Knowledge of Company, no undisclosed deficiencies are expected to
        be
        asserted with respect to any such audit. All deficiencies proposed as a result
        of such audits have been paid, reserved against, settled or are being contested
        in good faith by appropriate proceedings as described in Schedule 3.13(b).
        Company has delivered, or made available to Buyer, copies of any examination
        reports, statements or deficiencies or similar items with respect to such
        audits. Except as provided in Schedule 3.13(b), Company has no Knowledge
        that
        any Governmental Body is likely to assess any additional Taxes
        for any
        period for which Tax Returns have been filed. There is no dispute or claim
        concerning any Taxes of Company either (i) claimed or raised by any Governmental
        Body in writing or (ii) as to which Company has Knowledge. Schedule 3.13(b)
        contains a list of all Tax Returns for which the applicable statute of
        limitations has not run. Except as described in Schedule 3.13(b), Company
        has
        not given or been requested to give waivers or extensions (or is or would
        be
        subject to a waiver or extension given by any other Person) of any statute
        of
        limitations relating to the payment of Taxes by
        Company
        or for which Company may be liable.

    

    
      
         

      

      
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      (c) Proper
        Accrual.
        The
        charges, accruals and reserves with respect to Taxes on the Records of Company
        are adequate (determined in accordance with GAAP) and are at least equal
        to
        Company's liability for Taxes. There exists no proposed Tax
        assessment or deficiency against Company.

    

    (d) Specific
      Potential Tax Liabilities and Tax Situations.

    

      (i) Withholding.
        All
        Taxes that Company is or was required by Legal Requirements to withhold,
        deduct
        or collect have been duly withheld, deducted or
        collected and, to the extent required, have been paid to the proper Governmental
        Body or other Person.

    

      (ii) Tax
        Sharing or Similar Agreements.
        There
        is no Tax
        sharing
        agreement, Tax
        allocation agreement, Tax
        indemnity obligation or similar written or unwritten agreement, arrangement,
        understanding or practice with respect to Taxes (including any advance pricing
        agreement, closing agreement or other arrangement relating to Taxes) that
        will
        require any payment by Company.

    

      (iii) Consolidated
        Group.
        Company
        (A) has not been a member of an affiliated group within the meaning of Code
        Section 1504(a) (or any similar group defined under a similar provision of
        state, local or foreign law) and (B) has no liability for Taxes of any
Person
        (other
        than Company and its Subsidiaries) under Treas. Reg. Section
        1.1502-6
        (or any similar provision of state, local or foreign law), as a transferee
        or
        successor by Contract
        or
        otherwise.

    

    (iv) S
      Corporation.
      Company
      is not an S corporation as defined in Code Section 1361.

    

    (v) Substantial
      Understatement Penalty.
      Company
      has disclosed on its federal income Tax Returns all positions taken therein
      that
      could give rise to a substantial understatement of federal income Tax within
      the
      meaning of Code Section 6662.

    

    3.14
      NO
      MATERIAL ADVERSE CHANGE

    

      Since
        the
        date of the Balance Sheet, there has not been any material adverse change
        in the
        business, operations, prospects, Assets,
        results
        of operations or condition (financial or otherwise)
        of
        Company, and no event has occurred or circumstance exists that may result
        in
        such a material adverse change. Since the date of the Balance Sheet,
Company
        has conducted its business only in the Ordinary Course of Business and there
        has
        not been any:

    

      (a) change
        in
        Company's authorized or issued capital stock, grant of any stock option or
        right
        to purchase shares of capital stock of Company,
        or
        issuance of any security convertible into such capital stock;

    

    (b) amendment
      to the Governing Documents of Company;

    

    (c) payment
      (except in the Ordinary Course of Business) or increase by Company of any
      bonuses, salaries or other compensation to any Seller, director, officer or
      employee or entry into any employment, severance or similar Contract with any
      director, officer or employee;

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

      (d) adoption
        of, amendment to,
        or
        increase in the payments to or benefits
        arising
        under,
        any Employee Plan;

    

    (e) damage
      to
      or destruction or loss of any Asset, whether or not covered by
      insurance;

    

    (f) entry
      into, termination of or receipt of notice of termination of (i) any license,
      distributorship, dealer, sales representative, joint venture, credit or similar
      Contract to which Company is a party, or (ii) any Contract or transaction
      involving a total remaining commitment by Company of at least
      $10,000;

    

    (g) sale
      (other than sales of Inventories in the Ordinary Course of Business), lease
      or
      other disposition of any Asset or property of Company (including the
      Intellectual Property Assets) or the creation of any Encumbrance on any
      Asset;

    

    (h) cancellation
      or waiver of any claims or rights with a value to Company in excess of
      $10,000;

    

    (i) indication
      by any customer or supplier of an intention to discontinue or change the terms
      of its relationship with Company; 

    

    (j) material
      change in the accounting methods used by Company; or

    

      (k) entry
        by
        Company
        into any
        Contract
        to do
        any of the foregoing.

    

    3.15
      PERSONNEL MATTERS

    

      (a)
        Schedule 3.15(a) sets forth a correct and complete list of each director,
        officer, employee, independent contractor, consultant and agent of Company,
        including but
        not
        limited to, each
        employee on leave of absence or layoff status. No retired employee, director,
        of
        officer of Company is receiving benefits or scheduled to receive benefits
        in the
        future.

    

    (b)
      Company
      is not a party to any employment, consulting or similar agreement, written
      or
      oral, with any Person.

    

      (c)
        No
        employees of Company
        are represented by any labor union or similar organization.  Company
        is not party to any collective bargaining or similar agreement covering any
        of
        its employees. No labor union or similar organization or group of employees
        has
        made a demand for recognition, filed a petition seeking a representation
        proceeding or given Company
        notice of any intention to hold an election of a collective bargaining
        representative at any time during the past three (3)
        years.

    

      (d) Company
        does not, and has
        never
        had,
        any
        "employee benefit plans" as defined by Section 3(3) of the Employee Retirement
        Income Security Act of 1974, pension, retirement, bonus, profit-sharing,
        stock
        option, or other such arrangements providing for employee remuneration or
        benefits (the “Employee Plans”).

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    (e)
       Company
      has complied in all respects with all Legal Requirements relating to employment
      practices, terms and conditions of employment, equal employment opportunity,
      nondiscrimination, immigration, wages, hours, benefits, collective bargaining,
      the payment of social security and similar Taxes and occupational safety and
      health. The Company is not liable for the payment of any Taxes, fines,
      penalties, or other amounts, however designated, for failure to comply with
      any
      of the foregoing Legal Requirements.

    

      (f) To
        the
        Knowledge of any Seller or Company,
        no officer, director, agent, employee, consultant, or contractor of Company
        is
        bound by any Contract that purports to limit the ability of such officer,
        director, agent, employee, consultant, or contractor to engage in or continue
        or
        perform any activity,
        duties or practice relating to the business of Company. No former or current
        employee of Company is a party to, or is otherwise bound by, any Contract
        that
        in any way
        has
        adversely affected, affects, or will affect the ability of Company or Buyer
        to
        conduct the business as heretofore carried on by Company.

    

    3.16
      COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS

    

    (a) Company
      is, and at all times has been, in full compliance with each Legal Requirement
      that is or was applicable to it or to the conduct or operation of its business
      or the ownership or use of any of its Assets.
      No event has occurred or circumstance exists that (with or without notice or
      lapse of time) may constitute or result in a violation by Company of, or a
      failure on the part of Company to comply with, any Legal Requirement or may
      give
      rise to any obligation on the part of Company to undertake, or to bear all
      or
      any portion of the cost of, any remedial action of any nature.
      Company
      has not received any notice or other communication (whether oral or written)
      from any Governmental Body or any other Person regarding any actual, alleged,
      possible or potential violation of, or failure to comply with, any Legal
      Requirement or any actual, alleged, possible or potential obligation on the
      part
      of Company to undertake, or to bear all or any portion of the cost of, any
      remedial action of any nature.

    

    (b) Schedule
      3.16(b) contains a complete and accurate list of each Governmental Authorization
      that is held by Company or that otherwise relates to Company's business or
      the
      Assets. Each Governmental Authorization listed or required to be listed in
      Schedule 3.16(b) is valid and in full force and effect. Except as set forth
      in
      Schedule 3.16(b):

    

    (i) Company
      is, and has been, in full compliance with all of the terms and requirements
      of
      each Governmental Authorization identified or required to be identified in
      Schedule 3.16(b);

    

    (ii) no
      event
      has occurred or circumstance exists that may (with or without notice or lapse
      of
      time) (A) constitute or result directly or indirectly in a violation of or
      a
      failure to comply with any term or requirement of any Governmental Authorization
      listed or required to be listed in Schedule 3.16(b) or (B) result directly
      or
      indirectly in the revocation, withdrawal, suspension, cancellation or
      termination of, or any modification to, any Governmental Authorization listed
      or
      required to be listed in Schedule 3.16(b);

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

    

    (iii) Company
      has not received any notice or other communication (whether oral or written)
      from any Governmental Body or any other Person regarding (A) any actual,
      alleged, possible or potential violation of or failure to comply with any term
      or requirement of any Governmental Authorization or (B) any actual, proposed,
      possible or potential revocation, withdrawal, suspension, cancellation,
      termination of or modification to any Governmental Authorization;
      and

    

    (iv) all
      applications required to have been filed for the renewal of the Governmental
      Authorizations listed or required to be listed in Schedule 3.16(b) have been
      duly filed on a timely basis with the appropriate Governmental Bodies, and
      all
      other filings required to have been made with respect to such Governmental
      Authorizations have been duly made on a timely basis with the appropriate
      Governmental Bodies.

    

      (v) The
        Governmental Authorizations listed in Schedule 3.16(b) collectively constitute
        all of the Governmental Authorizations necessary to permit Company to lawfully
        conduct and operate its business in the manner in which it currently conducts
        and operates such business and to permit Company to own and use its Assets
        in the
        manner in which it currently owns and uses such Assets.

    

    3.17
      LEGAL PROCEEDINGS; ORDERS

    

      (a) There
        is
        no pending or threatened Proceeding: (i) by or against Company or that otherwise
        relates to or may affect the business of, or any of the Assets
        owned or
        used by, Company; or (ii) that challenges, or that may have the effect of
        preventing, delaying, making illegal or otherwise interfering with, any of
        the
        Contemplated Transactions. To the Knowledge of Company or any Seller, no
        event
        has occurred or circumstance exists that is reasonably likely to give rise
        to or
        serve as a basis for the commencement of any such Proceeding.

    

    (b) There
      is
      no Order to which Company, its business or any of the Assets is subject. To
      the
      Knowledge of Company or any Seller, no officer, director, agent or employee
      of
      Company is subject to any Order that prohibits such officer, director, agent
      or
      employee from engaging in or continuing any conduct, activity or practice
      relating to the business of Company.

    

      (c) Company
        is
        and
        has
        at all
        times been
        in
        compliance with all of the terms and requirements of each Order to which
        it or
        any of the Assets is or has been subject. No event has occurred or circumstance
        exists that is reasonably likely to constitute or result in (with or without
        notice or lapse of time) a violation of or failure to comply with any term
        or
        requirement of any Order to which Company or any of the Assets is subject;
        and

    

    (d) Company
      has not received any notice or other communication (whether oral or written)
      from any Governmental Body or any other Person regarding any actual, alleged,
      possible or potential violation of, or failure to comply with, any term or
      requirement of any Order to which Company or any of the Assets is or has been
      subject.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    3.18
      CONTRACTS; NO DEFAULTS

    

      (a) Schedule
        3.18(a) contains an accurate and complete list
        of,
        and
        Company has delivered to Buyer
        accurate
        and complete copies of,
        each
        Company Contract. Schedule 3.18(a) contains
        a summary of all material terms of
        such
        Contracts, including the parties thereto,
        the
        amount of the remaining commitment of Company under the Contracts,
        and the
        location to
        the
        execution copies of such
        Contracts are located.

    

      (b) Except
        as
        set forth in Schedule 3.18(a), Seller has no
        rights
        and is not subject
        to any obligations
        or liabilities
        under,
        any Contract that relates to the business of Company or any of the
        Assets.

    

    (c) Except
      as
      set forth in Schedule 3.18(c):

    

    (i) each
      Contract identified or required to be identified in Schedule 3.18(a) is in
      full
      force and effect and is valid and enforceable in accordance with its
      terms;

    

      (ii) to
        the
        Knowledge of Company and
        any
        Seller, no Contract identified or required to be identified in Schedule 3.18(a)
        will,
        upon
        completion or performance thereof,
        have a
        material adverse effect
        on the
        business, Assets
        or
        condition of Company or the business to be conducted by Buyer employing
        the
        Assets.

    

    (d) Except
      as
      set forth in Schedule 3.18(d):

    

      (i) Company
        is, and at all times has been, in compliance with all applicable terms and
        requirements of each Company Contract being
        assumed by Buyer;

    

    (ii) each
      other Person that has or had any obligation or liability under any Company
      Contract is, and at all times has been, in full compliance with all applicable
      terms and requirements of such Contract;

    

      (iii) no
        event
        has occurred or circumstance exists that (with or without notice or lapse
        of
        time) may contravene, conflict with or result in a Breach of, or give Company
        or
any
        other
        Person the right to declare a default or exercise any remedy under, or to
        accelerate the maturity or performance of, or payment under, or to cancel,
        terminate or modify, any Company Contract being
        assigned to or assumed by Buyer;

    

      (iv) no
        event
        has occurred or circumstance exists under or by virtue of any Contract that
        (with or without notice or lapse of time) would trigger
        the
        creation of any Encumbrance affecting any of the Assets; and

    

    (v) Company
      has not given to or received from any other Person any notice or other
      communication (whether oral or written) regarding any actual, alleged, possible
      or potential violation or Breach of, or default under, any Contract being
      assigned to or assumed by Buyer.

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

      (e) There
        are
        no renegotiations of, attempts to renegotiate or outstanding rights to
        renegotiate any material amounts paid or payable to Company under any
        Contracts with any Person having the contractual or statutory right to demand
        or
        require such renegotiation and no such Person has made
        oral
        or
        written
        demand for such renegotiation.

    

    (f) Each
      Contract relating to the sale, design, manufacture or provision of products
      or
      services by Company has been entered into in the Ordinary Course of Business
      of
      Company and has been entered into without the commission of any act alone or
      in
      concert with any other Person, or any consideration having been paid or
      promised, that is or would be in violation of any Legal
      Requirement.

    

    3.19
      INSURANCE

    

    (a) Company
      has delivered to Buyer accurate and complete copies of all policies of insurance
      (and correspondence relating to coverage thereunder) to which Company is a
      party, a list of which is included in Schedule 3.19(a).

    

    (b) Schedule
      3.19(b) describes all obligations of Company to provide insurance coverage
      to
      Third Parties (for example, under Leases or service agreements) and identifies
      the policy under which such coverage is provided.

    

      (c) All
        policies of insurance to which Company is a party or that provide coverage
        to
        Company: (i) are valid, outstanding and enforceable; (ii) are issued by an
        insurer that is financially sound and reputable; (iii) taken together, provide
        adequate insurance coverage for the Assets and the operations of Company
        for all
        risks normally insured against by a Person carrying on the same business
        or
        businesses as Company in the same location or
        locations and
        for
        all risks to which Company is normally subject;
        and
        (iv) are sufficient for compliance with all Legal Requirements and Company
        Contracts;

    

      (d)
         Company
        has not received (i) any refusal of coverage or any notice that a defense
        will
        be afforded with reservation of rights or (ii) any notice of cancellation
        or any
        other indication that any policy of insurance is no longer in full force
        or
        effect or that the issuer of any policy of insurance is not willing or able
        to
        perform its obligations thereunder. Company has paid all insurance
        premiums
        as,
        and
        when due,
        and
        has otherwise performed all of its obligations
        under
        each policy of insurance to which it is a party or that lists
        Company
        as a
        beneficiary.
        Company
        has given notice to all
        insurers
        of
any
        claims
        that may be submitted
        under said policies of insurance.

    

    3.20
      ENVIRONMENTAL MATTERS

    

    Except
      as
      disclosed in Schedule 3.20:

    

      (a) Company
        is, and at all times has been, in full compliance with, and has not been
        and is
        not in violation of or liable under, any Environmental Law. 
        Neither
        Company
        nor any Seller has any basis to expect, nor has any of them or any other
        Person
        for whose conduct they are or may be held deemed
        responsible received
        any
        actual or threatened Order,
        notice
        or other communication from (i) any Governmental Body or private citizen
        acting
        in the public interest or (ii) the current or any
        prior
        owner or operator of any Facilities, of any actual or potential violation
        or
        failure to comply with any Environmental Law, or of any actual or potential
        liability for
        any
        Environmental, Health and Safety Liabilities with respect to any Facility
        or
        other property or Asset
        (whether
        real, personal or mixed) in which Company has or had an interest, or
at
        which
        Hazardous Materials were generated, manufactured, refined, transferred,
        imported, used or processed by Company or any other Person for whose conduct
        it
        is or may be held responsible, or from which Hazardous Materials have been
        transported, treated, stored, handled, transferred, disposed, recycled or
        received.

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

       

    

    (b) There
      are
      no pending or, to the Knowledge of Company or any Seller, threatened claims,
      Encumbrances, or other restrictions of any nature resulting from any
      Environmental, Health and Safety Liabilities or arising under or pursuant to
      any
      Environmental Law affecting
      any Facility or any other property or asset (whether real, personal or mixed)
      in
      which Company has or had an interest.

    

      (c) Neither
        of
        Company nor any Seller has any Knowledge of or any basis to expect, nor has
        any
        of them, or any other Person for whose conduct any
        of
        them
        are or
        may be held responsible, received, any citation, directive, inquiry, notice,
        Order, summons, warning or other communication that relates to Hazardous
        Activity, Hazardous Materials, or any alleged, actual, or potential violation
        or
        failure to comply with any Environmental Law, or of any alleged, actual,
        or
        potential obligation to undertake or bear the cost of any Environmental,
        Health
        and Safety Liabilities with respect to any Facility or property or Asset
        (whether
        real, personal or mixed) in which Company has or had an interest, or
at
        which
        Hazardous Materials
        were
        generated, manufactured, refined, imported,
        used or processed by Company or any other Person for whose conduct it is
        or may
        be held responsible,
        or from
        which Hazardous Materials
        have
        been transported, treated, stored, handled, transferred, disposed, recycled
        or
        received.

    

      (d) Neither
        Company nor any other Person for whose conduct it is or may be held responsible
        has any Environmental, Health and Safety Liabilities with respect to any
        Facility or, to the Knowledge of Company, with respect to any other property
        or
Asset
        (whether
        real, personal or mixed) in which Company (or any predecessor) has or had
        an
        interest or at any property geologically or hydrologically adjoining any
        Facility or any such other property or Asset.

    

      (e) There
        are
        no Hazardous Materials present on or in the Environment at any Facility or
        at
        any geologically or hydrologically adjoining property, including any Hazardous
        Materials contained in barrels, aboveground or underground storage tanks,
        landfills, land deposits, dumps, equipment (whether movable or fixed) or
        other
        containers, either temporary or permanent, and deposited or located in land,
        water, dumps,
        or any
        other part of the Facility or such adjoining property, or incorporated into
        any
        structure therein or thereon. Neither Company nor any Person for whose conduct
        it is or may be held responsible, or to the Knowledge of Company, any other
        Person, has permitted or conducted, or is aware of, any Hazardous Activity
        conducted with respect to any Facility or any other property or Assets
        (whether
        real, personal or mixed) in which Company has or had an interest except in
        full
        compliance with all applicable Environmental Laws.

    

      (f) There
        has
        been no Release or, to the Knowledge of Company, Threat of Release, of any
        Hazardous Materials at or from any Facility or at any other location where
        any
        Hazardous Materials were generated, manufactured, refined, transferred,
        produced, imported, used, or processed or
        from
        any other property or Asset
        (whether
        real, personal or mixed) in which Company has or had an interest, or to the
        Knowledge of Company any geologically or hydrologically adjoining property,
        whether by Company or any other Person.

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

       

    

    (g) Company
      has delivered to Buyer true and complete copies and results of any reports,
      studies, analyses, tests, or monitoring possessed or initiated by Company
      pertaining to Hazardous Materials or Hazardous Activities in, on, or under
      the
      Facilities, or concerning compliance, by Company or any other Person for whose
      conduct it is or may be held responsible, with Environmental Laws.

    

    3.21
      INTELLECTUAL PROPERTY ASSETS

    

      (a) The
        term
        "Intellectual Property Assets" means all intellectual property owned or licensed
        (as licensor or licensee) by or
        to
Company,
        including: (i) Company's name, all assumed fictional business names, trade
        names, registered and unregistered trademarks, service marks and applications
        (collectively, "Marks"); (ii) all patents, patent applications and inventions
        and discoveries that may be patentable (collectively, "Patents"); (iii) all
        registered and unregistered copyrights in both published works and unpublished
        works (collectively, "Copyrights"); (iv) all rights in mask works; (v) all
        know-how, trade secrets, confidential or proprietary information, customer
        lists, Software, technical information, data, process technology, plans,
        drawings and blue prints (collectively, "Trade Secrets"); and (vi) all rights
        in
        internet web sites and internet domain names presently used by Company
        (collectively "Net Names").

    

    (b) Schedule
      3.21(b) contains a complete and accurate list and summary description, including
      any royalties paid or received by Company, and Company has delivered to Buyer
      accurate and complete copies, of all Company Contracts relating to the
      Intellectual Property Assets. There are no outstanding and no threatened
      disputes or disagreements with respect to any such Contract.

    

    (c)
      The
      Intellectual Property Assets are all those necessary for the operation of
      Company's business as it is currently conducted. Company is the owner or
      licensee of all right, title and interest in and to each of the Intellectual
      Property Assets, free and clear of all Encumbrances, and has the right to use
      without payment to a Third Party all of the Intellectual Property Assets, other
      than in respect of licenses listed in Schedule 3.21(c).

    

      (d)
        All
        former and current employees of Company have executed written Contracts with
        Company assigning
        to
        Company all rights to any inventions, Improvements,
        discoveries or information relating to the business of
        Company.

    

    (e)
      Schedule 3.21(e) contains a complete and accurate list and summary description
      of all Patents. All of the issued Patents are currently in compliance with
      formal legal requirements (including payment of filing, examination and
      maintenance fees and proofs of working or use), are valid and enforceable,
      and
      are not subject to any maintenance fees or taxes or actions falling due within
      ninety (90) days after the Closing Date. No Patent has been or is now involved
      in any interference, reissue, reexamination, or opposition Proceeding. There
      is
      no potentially interfering patent or patent application of any Third
      Party.

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

       

    

    (f) Except
      as
      set forth in Schedule 3.21(e), (A) no Patent is infringed or, to the Knowledge
      of Company or any Seller, has been challenged or threatened in any way and
      (B)
      none of the products manufactured or sold, nor any process or know-how used,
      by
      Company infringes or is alleged to infringe any patent or other proprietary
      right of any other Person.

    

      (g) All
        products made, used or sold under the Patents have been marked with the proper
        Patent
        notice.

    

      (h) Schedule
        3.21(h) contains a complete and accurate list and summary description of
        all
        Marks. All Marks have been registered with the United States Patent and
        Trademark Office, are currently in compliance with all formal Legal Requirements
        (including the timely post-registration filing of affidavits of use and
        incontestability and renewal applications), are valid and enforceable and
        are
        not subject to any maintenance fees or Taxes
        or
        actions falling due within ninety (90) days after the Closing Date. No Mark
        has
        been or is now involved in any opposition, invalidation or cancellation
        Proceeding and, to the Knowledge of Company or any Seller, no such action
        is
        threatened with respect to any of the Marks. To the Knowledge of Company
        or any
        Seller, there is no potentially interfering trademark or trademark application
        of any other Person. No Mark is infringed or, to Company's Knowledge, has
        been
        challenged or threatened in any way. None of the Marks used by Company infringes
        or is alleged to infringe any trade name, trademark or service mark of any
        other
        Person. All products and materials containing a Mark bear the proper federal
        registration notice where permitted by law.

    

      (i)
        Schedule 3.21(i) contains a complete and accurate list and summary description
        of all Copyrights. All of the registered Copyrights are currently in compliance
        with formal Legal Requirements, are valid and enforceable, and are not subject
        to any maintenance fees or taxes or actions falling due within ninety (90)
        days
        after the date of Closing. No Copyright is infringed or, to the Knowledge
        of
        Company or any Seller, has been challenged or threatened in any way. None
        of the
        subject matter of any of the Copyrights infringes or is alleged to infringe
        any
        copyright of any Third Party or is a derivative work based upon the work
        of any
        other Person. All works encompassed by the Copyrights have been marked with
        the
        proper Copyright
        notice.

    

      (j) With
        respect to each Trade Secret, the documentation relating to such Trade Secret
        is
        current, accurate and sufficient in detail and content to identify and explain
        it and to allow its full and proper use without reliance on the Knowledge
        or
        memory of any individual. Company has taken all reasonable precautions to
        protect the secrecy, confidentiality and value of all Trade Secrets (including
        the enforcement by Company of a policy requiring each employee or contractor
        to
        execute proprietary information and confidentiality agreements,
        and all
        current and former employees and contractors of Company have executed such
        an
        agreement). Company has good title to and an absolute right to use the Trade
        Secrets. The Trade Secrets are not part of the public Knowledge
        or
        literature and, to the Knowledge of Company or any Seller, have not been
        used,
        divulged or appropriated either for the benefit of any Person (other than
        Company) or to the detriment of Company. No Trade Secret is subject to any
        adverse claim or has been challenged or threatened in any way or infringes
        any
        intellectual property right of any other Person.

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    (k)
       Schedule
      3.21(k) contains a complete and accurate list and summary description of all
      Net
      Names. 

    

    3.22
      RELATIONSHIPS WITH RELATED PERSONS

    

      Except
        as
        disclosed in Schedule 3.22, neither Company nor any Seller
        nor any Related Person of any of the
        aforementioned
        has any
        interest in any property (whether real, personal or mixed and whether tangible
        or intangible) used in or pertaining to Company's business. Neither Company
        nor
        any Seller
        nor any Related Person of any of the
        aforementioned
        owns
        or,
        since
        January 1, 2005, has owned, whether
        of
        record
        or as a beneficial owner, an equity interest or any other financial or profit
        interest in any Person that has (a) had business dealings or a material
        financial interest in any transaction with Company other than business dealings
        or transactions disclosed in Schedule 3.22, each of which has been conducted
        in
        the Ordinary Course of Business with Company at substantially prevailing
        market
        prices and on substantially prevailing market terms or (b) engaged in
        competition with Company with respect to any line of the products or services
        of
        Company (a "Competing Business") in any market presently served by Company,
        except for ownership of less than one percent (1%) of the outstanding capital
        stock of any Competing Business that is publicly traded on any recognized
        exchange or in the over-the-counter market. Except as set forth in Schedule
        3.22, neither Company nor any Seller
        nor any Related Person of any of the
        aforementioned
        is a
        party to any Contract with, or has any claim or right against,
        Company.

    

    3.23
      BROKERS OR FINDERS

    

      Except
        as
        disclosed in Schedule 3.23, neither
        Company,
        any Seller,
        nor any of their
        respective
        Representatives has
        or
have
        incurred any obligation or Liability,
        contingent or otherwise, for brokerage or finders' fees or agents' commissions
        or other similar payments in connection with the sale of the Seller
        Shares
        or the Company's business or the Assets or the Contemplated
        Transactions.

    

    3.24
      SECURITIES LAW MATTERS

    

      (a) Each
        Seller understands that the Consideration Shares are being offered and made
        in
        reliance on one or more exemptions from the registration requirements of
        United
        States federal and state securities laws and that Buyer
        is
        relying upon the truth and accuracy of the representations, warranties,
        agreements, acknowledgments and understandings of Sellers
        set forth herein in order to determine the applicability of such exemptions
        and
        the suitability of Sellers
        to acquire the Consideration Shares. 

    

      (b)
         Each
        Seller is acquiring the Consideration Shares for such
        Seller’s
        own account and not with a view to their
        distribution within the meaning of Section 2(11) of the Securities Act. Except
        as set forth in Schedule 3.24, no
        Seller
        is a
        U.S.
        person (as that term is defined in Regulation S Promulgated under the Securities
        Act). Except as set forth in Schedule 3.24, each Seller is an “accredited
        investor” (as that term is defined in Rule 501 of the General Rules and
        Regulations under the Securities Act by reason of Rule 501(a)(3)), and each
        Seller is (i) experienced in making investments of the kind described in
        this
        Agreement and the related documents, (ii) able, by reason of the business
        and
        financial experience of its officers (if an entity) and professional advisors
        (who are not affiliated with or compensated in any way by Buyer or any of
        its
        affiliates or selling agents), to protect its own interests in connection
        with
        the Contemplated
        Transactions,
        and
        (iii) able to afford the entire loss of its
        investment in the Consideration Shares. Each Seller has been provided an
        opportunity for a reasonable period of time prior to the date hereof to obtain
        additional information concerning the Consideration Shares, Buyer,
        and all
        other information to the extent Buyer
        possesses such information or can acquire it without unreasonable effort
        or
        expense.

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

       

    

    (c)
       Each
      Seller understands that the Consideration Shares shall be “restricted” (as that
      term is defined in Rule 144 promulgated under the Securities Act), and each
      certificate representing the Consideration Shares shall be endorsed with one
      or
      more of the following restrictive legends, in addition to any other legend
      required to be placed thereon by applicable federal or state securities
      laws:

    

    (A) “THE
      SECURITIESARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED
      IN
      REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
      ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
      UNDER THE SECURITIES ACT.”

    

    (B) “TRANSFER
      OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS
      OF
      REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT
      TO
      AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED
      UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

    

    3.25
      DISCLOSURE

    

      (a) No
        representation,
        warranty
        or other statement made by Company or any Seller
        in
        this Agreement, the Schedules, any supplement to the Schedules, or
        the
        certificates delivered pursuant to Section 2.3(a) or otherwise in connection
        with the Contemplated Transactions contains any untrue statement of
        material fact or
        omits
        to state a material fact necessary to make any of them, in light of the
        circumstances in which it was made, not misleading.

    

      (b) No
        Seller
        nor the Company has Knowledge of any fact that has specific application to
        Company (other than general economic or industry conditions) or the Seller
        Shares
        and that may materially adversely affect the Seller
        Shares
        or the Assets,
        business, prospects, financial condition or results of operations of Company
        that has not been set forth in this Agreement. No
        event,
        condition, or other matter, or any series of events, conditions or other
        matters, currently
        exists that, individually
        or in the aggregate, adversely affects
        the
Seller
        Shares
        or the Company's Assets,
        business, prospects, financial condition or results of its operations that
        has
        not been specifically disclosed to Buyer in writing by
        Company.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF BUYER

    

    Buyer
      represents and warrants to Company and Sellers, as of the date hereof and as
      of
      the Closing Date, as follows:

    

    4.1
      ORGANIZATION AND GOOD STANDING

    

      Buyer
        is
        a corporation duly organized, validly existing and in good standing under
        the
        laws of the State of Nevada
        with
        full corporate power and authority to conduct its business as it is now
        conducted.

    

    4.2
      AUTHORITY; NO CONFLICT

    

      (a) This
        Agreement constitutes the legal, valid and binding obligation of Buyer,
        enforceable against Buyer in accordance with its terms. Upon the execution
        and
        delivery by Buyer of the other documents
        to be
        executed or delivered by Buyer at Closing (collectively, the "Buyer's Closing
        Documents"), each of the Buyer's Closing Documents will constitute the legal,
        valid and binding obligation of Buyer, enforceable against Buyer in accordance
        with its respective terms. Buyer has the absolute and unrestricted right,
        power
        and authority to execute and deliver this Agreement and the Buyer's Closing
        Documents and to perform its obligations under this Agreement and the Buyer's
        Closing Documents, and such action has been duly authorized by all necessary
        corporate action.

    

    (b) Neither
      the execution and delivery of this Agreement by Buyer nor the consummation
      or
      performance of any of the Contemplated Transactions by Buyer will give any
      Person the right to prevent, delay or otherwise interfere with any of the
      Contemplated Transactions pursuant to: (i)any provision of Buyer's Governing
      Documents; (ii) any resolution adopted by the board of directors of Buyer;
      (iii)
      any Legal Requirement or Order to which Buyer may be subject; or (iv) any
      Contract to which Buyer is a party or by which Buyer may be bound. Buyer is
      not
      and will not be required to obtain any Consent from any Person in connection
      with the execution and delivery of this Agreement or the consummation or
      performance of any of the Contemplated Transactions.

    

    4.3 CAPITALIZATION

    

      Schedule
        4.3(a) correctly and completely sets forth: (i) the authorized share
        capital
        of the
        Company; and (ii) the number of shares of each class of capital stock of
        Buyer
        issued
        and outstanding.

    

    4.4 FILINGS
      WITH THE SEC

    

      To
        the
        best of Buyer's
        knowledge, the Buyer
        has not
        provided to Company
        or any Seller
        any
        information that, according to applicable law, rule or regulation, should
        not
        have
        been
        disclosed publicly prior to the date hereof by Buyer,
        but
        which has been
        so
        disclosed. As of their respective dates, the documents filed by Buyer
        with the
        SEC (the “SEC Documents”) complied in all material respects with the
        requirements of the Securities Act of or the Exchange Act, as the case may
        be,
        and other federal, state and local laws, rules and regulations applicable
        to
        such SEC Documents, and none of the SEC Documents contained any untrue statement
        of a material fact or omitted to state a material fact required to be stated
        therein or necessary in order to make the statements therein, in light of
        the
        circumstances under which they were made, not misleading. The financial
        statements of Buyer
        included
        in the SEC Documents comply as to form and substance in all material respects
        with applicable accounting requirements and the published rules and regulations
        of the SEC or other applicable rules and regulations with respect thereto.
        Such
        financial statements have been prepared in accordance with generally accepted
        accounting principles applied on a consistent basis during the periods involved
        (except (a) as may be otherwise indicated in such financial statements or
        the
        notes thereto or (b) in the case of unaudited interim statements, to the
        extent
        they may not include footnotes or may be condensed or summary statements)
        and
        fairly present in all material respects the financial position of Buyer
        as of
        the dates thereof and the results of operations and cash flows for the periods
        then ended (subject, in the case of unaudited statements, to normal year-end
        audit adjustments).

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

       

    

    4.5 VALID
      ISSUANCE

    

      The
        Consideration
        Shares, issued
        in
        accordance with the terms hereof
        and
        on
        the basis
        of the
        representations and warranties of the Seller set forth herein, may and shall
        be
        properly issued by Buyer
        to
Sellers
        pursuant
        to any applicable federal or state law. When issued and paid for as herein
        provided, the Consideration Shares shall be duly and validly issued, fully
        paid,
        and nonassessable.

    

    4.6
      CERTAIN PROCEEDINGS

    

    There
      is
      no pending Proceeding that has been commenced against Buyer that
      challenges
      or may
      have the effect of preventing, delaying, making illegal or otherwise interfering
      with, any of the Contemplated Transactions. To Buyer's Knowledge, no such
      Proceeding has been threatened.

    

    4.7
      BROKERS OR FINDERS

    

      Except
        as
        disclosed on Schedule 4.7, neither Buyer nor any of its Representatives
has
        incurred
        any obligation or Liability,
        contingent or otherwise, for brokerage or finders' fees or agents' commissions
        or other similar payments
        in
        connection with the Contemplated Transactions.

    

    ARITCLE
      V

    COVENANTS
      PRIOR TO CLOSING

    

    5.1
      ACCESS AND INVESTIGATION

    

      Between
        the date of this Agreement and the Closing Date, and upon reasonable advance
        notice, Sellers’ Agent and Company, on the one hand, and Buyer on the other
        hand, shall (a) afford the other parties
        and
        their
        respective
        Representatives full and free access, during regular business hours, to
their
        respective employees, officers, directors and agents,
        properties, Contracts, Governmental Authorizations, books and Records and
        other
        documents and data, such rights of access to be exercised in a manner that
        does
        not unreasonably interfere with their
        respective
        operations; (b) furnish the other parties
        with
        copies of all such Contracts, Governmental Authorizations, books and Records
        and
        other existing documents and data as the other parties
        may
        reasonably request; (c) furnish the other parties
        with
        such additional financial, operating and other relevant data and information
        as
        the other parties
        may
        reasonably request; and (d) otherwise cooperate and assist, to the extent
        reasonably requested by the other parties,
        with
        the other parties’
        investigation of the properties, Assets
        and
        financial condition.
        In
        addition, the other parties
        shall
        have the right to have the real property and Tangible Personal Property
        inspected by them,
        at
their
        sole
        cost and expense, for purposes of determining the physical condition and
        legal
        characteristics of the real property and Tangible Personal
        Property.

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

       

    

    5.2
      OPERATION OF THE BUSINESS AND CONDUCT OF SELLERS PRIOR TO CLOSING

    

    (a)
      Between the date of this Agreement and the Closing, Company shall (and Sellers
      shall cause Company to):

    

    (i) conduct
      its business only in the Ordinary Course of Business;

    

      (ii) except
        as
        otherwise directed by Buyer in writing, and without making any commitment
        on
        Buyer's behalf, use its Best Efforts to maintain
        its
        current business organization
        intact,
        keep
        available the services of its officers, employees and agents,
        and
        maintain its relationship
        and good
        will with suppliers, customers, landlords, creditors, employees, agents and
        others having business relationships with it;

    

    (iii) confer
      with Buyer prior to implementing operational decisions of a material
      nature;

    

    (iv) otherwise
      report periodically to Buyer concerning the status of its business, operations
      and finances;

    

      (v) make
        no
        material changes in employment
        status of employees having managerial responsibilities or officers or
        directors
        without
        prior consultation with Buyer;

    

    (vi) maintain
      the Assets in a state of repair and condition that complies with Legal
      Requirements and is consistent with the requirements and normal conduct of
      Company's business;

    

      (vii) keep
        in
        full force and effect, without amendment, all material
        contractual and other contractual and other
        rights
        relating to Company's business;

    

    (viii) comply
      with all Legal Requirements and contractual obligations applicable to the
      operations of Company's business;

    

      (ix) continue
        insurance
        coverage in
        full
        force and effect under
        the
        policies
        of
        insurance
        set
        forth in Schedule 3.19 or substantially equivalent policies;

    

      (x) cooperate
        with Buyer and assist Buyer in identifying the Governmental Authorizations
        required for
        Buyer to
        operate the business from and after the Closing Date and either transferring
        existing Governmental Authorizations of Company to Buyer, where permissible,
        or
        obtaining new Governmental Authorizations for Buyer;

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

       

    

      (xi) upon
        request of
        Buyer
from
        time
        to time, execute and deliver all documents, make all truthful oaths, testify
        in
        any Proceedings and do all other acts that may be reasonably necessary or
        desirable in the opinion of Buyer to consummate the Contemplated Transactions,
        all without further consideration; and

    

    (xii) maintain
      all books and Records of Company relating to Company's business in the Ordinary
      Course of Business.

    

      (b)
         Between
        the date of this Agreement and the Closing, no
        Seller
        shall:

       

      (i)
        sell,
        transfer or otherwise dispose of any of the Seller
        Shares
        or any interest in the Seller
        Shares
        and or
        agree to
        do any of the foregoing;

    

      (ii)
        accept
        any dividend or other distribution in respect of any of the Seller
        Shares;

       

      (iii)
        incur,
        make, assume or suffer to exist any Encumbrance or other matter affecting
        title
        to any of the Seller
        Shares;

       

      (iv)
        enter
        into any shareholder agreements, voting trusts, restrictions on transfer
        or
        other agreements or instruments that would be binding on the Buyer as the
        owner
        of the Seller
        Shares;
or

    

      (v)
        take
any
        action,
        that
        would result in any of the Seller’s representations and warranties in this
        Agreement being
        untrue and incorrect and each Seller shall use its
        best
        efforts to prevent the occurrence of any event or the existence of any
        condition.

    

    5.3
      NEGATIVE COVENANT

    

      Except
        as
        otherwise expressly permitted herein, between the date of this Agreement
        and the
        Closing Date, Company shall not, and Seller shall not permit Company to,
        without
        the prior written Consent of Buyer, (a) take any affirmative action, or fail
        to
        take any reasonable action within its control, as a result of which any of
        the
        changes or events listed in Section 3.14 would be likely to occur; (b) make
        any
        modification to any material Contract or Governmental Authorization; (c)
        allow
        the levels of raw materials, supplies or other materials included in the
        Inventories to vary materially from the levels customarily
        maintained
        in the
        Ordinary Course of Business;
        or (d)
        enter into any compromise or settlement of any litigation, proceeding or
        governmental investigation relating to Company, its Assets, or its
        business.

    

    5.4
      REQUIRED APPROVALS

    

    As
      promptly as practicable after the date of this Agreement, Company shall make
      all
      filings required by Legal Requirements to be made by it in order to consummate
      the Contemplated Transactions. Company and Seller also shall cooperate with
      Buyer and its Representatives with respect to all filings that Buyer elects
      to
      make or, pursuant to Legal Requirements, shall be required to make in connection
      with the Contemplated Transactions. Company and Seller also shall cooperate
      with
      Buyer and its Representatives in obtaining all Material Consents.

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

       

    

    5.5
      NOTIFICATION

    

      Between
        the date of this Agreement and the Closing, each
        Seller
and
        Company
        shall promptly notify Buyer in writing upon becoming aware of (a) any fact
        or
        condition that causes or constitutes a Breach of any of Company's
        representations and warranties made as of the date of this Agreement or (b)
        the
        occurrence after the date of this Agreement of any fact or condition that
        would
        or be reasonably likely to (except as expressly contemplated by this Agreement)
        cause or constitute a Breach of any such representation or warranty had that
        representation or warranty been made as of the time of the occurrence of,
        or
        Company's or such
        Seller's
        discovery of, such fact or condition. Should any such fact or condition require
        any change to the representations an warranties made herein, the Company
        and
        the
        applicable
        Sellers
        shall promptly deliver to Buyer a supplement to the Schedules attached hereto
        specifying such change. Such delivery shall not affect any rights of Buyer
        under
        Section 9.2 and Article 11. During the same period, Company and each
        Seller shall
        also
promptly
        notify Buyer of the occurrence of any Breach of any covenant of Company or
        such
        Seller or
        of the
        occurrence of any event that may make the satisfaction of the
        conditions
        set
        forth
        in
        Article 7 impossible or unlikely.

    

    5.6
      NO
      NEGOTIATION

    

      Until
        such time as this Agreement shall have
        been
        terminated pursuant to Section 9.1, neither Company nor any Seller
        shall directly or indirectly solicit, initiate, encourage or entertain any
        inquiries or proposals from, discuss or negotiate with, provide any nonpublic
        information to or consider the merits of any inquiries or proposals from
        any
        Person (other than Buyer) relating to any business combination transaction
        involving Company, including but
        not
        limited to the
        sale
        by any Seller of Company's stock, the merger or consolidation of Company
        or the
        sale of Company's business or any of the Assets (other than in the Ordinary
        Course of Business). Company and Sellers shall notify Buyer of any such inquiry
        or proposal within twenty-four (24) hours of receipt or awareness of the
        same by
        Company or
        any
        Seller.

    

    5.7
      BEST
      EFFORTS

    

    Company
      and Sellers shall use their Best Efforts to cause the conditions in Article
      7
      and Section 8.3 to be satisfied.

    

    5.8
      PAYMENT
      OF LIABILITIES

    

    Company
      shall pay or otherwise satisfy in the Ordinary Course of Business all of its
      Liabilities and obligations. 

    

    5.9
      COOPERATION WITH RESPECT TO FINANCIAL REPORTING

    

      After
        the
        date of this Agreement, Sellers and Company shall reasonably cooperate with
        Buyer in connection with Buyer's preparation of financial statements and
        other
        information required
        for Buyer’s filings with the SEC under the Exchange Act, including
        but not
        limited to,
        Buyer’s
        Current Report on Form 8-K that is to be filed with the SEC pursuant to the
        Exchange Act in connection with the Closing.

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

       

    

    ARTICLE
      VI

    COVENANTS
      OF BUYER PRIOR TO CLOSING

    

    6.1
      BEST
      EFFORTS

    

    Buyer
      shall use its Best Efforts to cause the conditions in Article 8 and Section
      7.3
      to be satisfied.

    

    ARTICLE
      VII

    CONDITIONS
      PRECEDENT TO BUYER’S OBLIGATION TO CLOSE

    

      Buyer's
        obligation to purchase the Seller
        Shares
        and to take the other actions required to be taken by Buyer at the Closing
        is
        subject to the satisfaction, at or prior to the Closing, of each of the
        following conditions (any of which may be waived by Buyer, in whole or in
        part):

    

    7.1
      ACCURACY OF REPRESENTATIONS

    

    All
      of
      Sellers’ and Company’s representations and warranties in this Agreement
      (considered collectively), and each of these representations and warranties
      (considered individually), shall have been accurate in all material respects
      as
      of the date of this Agreement, and shall be accurate in all material respects
      as
      of the time of the Closing as if then made, without giving effect to any
      supplement to the Schedules.

    

    7.2
      COMPANY'S PERFORMANCE

    

      All
        of
        the covenants and obligations that Company and Seller are required to perform
        or
with
        which Company and Seller are required to
        comply pursuant
        to this Agreement at or prior to the Closing (considered collectively), and
        each
        of these covenants and obligations (considered individually), shall have
        been
        duly performed and complied with in all material respects.

    

    7.3
      CONSENTS

    

    Each
      of
      the Consents identified in Schedule 7.3 (the "Material Consents") shall have
      been obtained and shall be in full force and effect.

    

    7.4
      ADDITIONAL DOCUMENTS

    

    Company
      and Seller shall have caused the documents and instruments required by Section
      2.3(a) and the following documents to be delivered (or tendered subject only
      to
      Closing) to Buyer:

    

    (a) The
      articles of incorporation and all amendments thereto of Company, duly certified
      as of a recent date by the appropriate officials of the jurisdiction of
      Company's organization; 

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

       

    

    (b) If
      requested by Buyer, any Consents or other instruments that may be required
      to
      permit Buyer's qualification in each jurisdiction in which Company is licensed
      or qualified to do business as a foreign corporation under the name
      "Volga-Neft", “Volga-Oil”, or any derivative thereof;

    

    (c) Releases
      of all Encumbrances on the Assets;

    

      (d) Certificates
        dated as of a date not earlier than the third Business
        Day
        prior to
        the Closing as to the good standing of Company, executed by the appropriate
        officials in each jurisdiction in which Company is licensed or qualified
        to do
        business as a foreign corporation as specified in Schedule 3.1(a);
        and

    

      (e) Such
        other documents as Buyer may request for the purpose of: (i) evidencing the
        accuracy of any of Company's representations and warranties; (ii) evidencing
        the
        performance by Company or Sellers
        of, or
        the compliance by Company or Sellers
        with,
        any covenant or obligation required to be performed or complied with by Company
        or Sellers;
        (iii)
        evidencing the satisfaction of any condition referred to in this Article
        7; or
        (iv) otherwise facilitating the consummation or performance of any of the
        Contemplated Transactions.

    

    7.5
      NO
      PROCEEDINGS

    

    Since
      the
      date of this Agreement, there shall not have been commenced or threatened
      against Buyer, or against any Related Person of Buyer, any Proceeding (a)
      involving any challenge to, or seeking Damages or other relief in connection
      with, any of the Contemplated Transactions or (b) that may have the effect
      of
      preventing, delaying, making illegal, imposing limitations or conditions on
      or
      otherwise interfering with any of the Contemplated Transactions.

    

    7.6
      NO
      CONFLICT

    

      Neither
        the consummation nor the performance of any of the Contemplated Transactions
        will, directly or indirectly (with or without notice or lapse of time),
        contravene or conflict with or result in a violation of or cause Buyer or
        any
        Related Person of Buyer to suffer any adverse consequence under (a) any
        applicable Legal Requirement or Order or (b) any Legal Requirement or Order
        that
        has been published, introduced or otherwise proposed by or before any
        Governmental Body, excluding bulk
        sales laws.

    

    7.7
      GOVERNMENTAL AUTHORIZATIONS

     

      Buyer
        shall have received such Governmental Authorizations as are necessary or
        desirable to allow Buyer to operate the Company’s business
        from and
        after the Closing.

    

    7.8
      SATISFACTION WITH DUE DILIGENCE

    

      Buyer’s
        due diligence investigation shall not have indicated that any of the information
        provided for in the Agreement or provided
        by any Seller
        or Company
        is inaccurate, incomplete or untrue in any way, and Buyer’s due diligence
        investigation shall not have revealed any facts, circumstances, liabilities
        or
        conditions that
        Buyer
        considers,
        may
        adversely affect the value or prospects of the Seller
        Shares
        or the Company or that may expose the Company to any liability not heretofore
        fully disclosed to Buyer.

    

    
      
         

      

      
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    7.9
      FINANCIAL INFORMATION

    

    Company
      shall have prepared and delivered to Buyer the financial statements referred
      to
      in Sections 3.4 and other information required to be filed pursuant to the
      Exchange Act with the SEC by Buyer on its Current Report on Form 8-K in
      connection with the Closing.

    

    7.10
      SECURITIES LAW MATTERS

    

      Sellers
        shall be non-U.S. Persons
        (as
        defined in Regulation S promulgated under the Securities Act), except that
        not
        more than thirty-five (35) of Sellers may
        be
        non-accredited U.S. investors, and the offer and issuance of the Consideration
        Shares shall not be in violation of the applicable federal or state securities
        laws. 

    

    ARTICLE
      VIII

      CONDITIONS
        PRECEDENT TO SELLERS’ AND
        COMPANY’S OBLIGATION
        TO CLOSE

    

      Sellers’
        obligation to sell the Seller
        Shares
        and to take the other actions required to be taken by Company at the Closing
        is
        subject to the satisfaction, at or prior to the Closing, of each of the
        following conditions (any of which may be waived by
        Sellers
        and
        Company
        in whole or in part):

    

    8.1
      ACCURACY OF REPRESENTATIONS

    

    All
      of
      Buyer's representations and warranties in this Agreement (considered
      collectively), and each of these representations and warranties (considered
      individually), shall have been accurate in all material respects as of the
      date
      of this Agreement and shall be accurate in all material respects as of the
      time
      of the Closing as if then made.

    

    8.2
      BUYER'S PERFORMANCE

    

      All
        of
        the covenants and obligations that Buyer is required to perform or with
        which Buyer is required to
        comply pursuant
        to this Agreement at or prior to the Closing (considered collectively), and
        each
        of these covenants and obligations (considered individually), shall have
        been
        performed and complied with in all material respects.

    

    8.3
      CONSENTS

    

      Each
        of
        the Consents identified in Schedule
        8.3
        shall have been obtained and shall be in full force and
        effect.

    

    8.4
      ADDITIONAL DOCUMENTS

    

      Buyer
        shall have caused the documents and instruments required by Section 2.3(b)
        and
        the following documents to be delivered (or tendered subject only to Closing)
        to
        Company and Seller as
        well
        as such
        other documents as Company and
        Sellers may
        reasonably request for the purpose of (i) evidencing the accuracy of any
        representation or warranty of Buyer, (ii) evidencing the performance by Buyer
        of, or the compliance by Buyer with, any covenant or obligation required
        to be
        performed or with
        which
        Buyer
        is
        required to comply
        or (iii)
        evidencing the satisfaction of any condition referred to in this Article
        8.

    

    
      
         

      

      
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    8.5
      NO
      INJUNCTION

    

      No
        Legal
        Requirement,
        injunction or other Order
        shall be
        in effect
        that (a)
        prohibits the consummation of the Contemplated Transactions and (b) has been
        adopted or issued, or has otherwise become effective, since the date of this
        Agreement.

    

    8.6
      CAPITALIZATION; LISTING

    

    (a)
      Buyer
      shall have no more than 29,000,000 shares of common stock issued and
      outstanding, on a fully-diluted basis. 

    

    (b)
      Buyer’s common stock shall be listed and eligible for trading on the
      Over-The-Counter Bulletin Board. 

    

    8.7
      LIABILITIES

    

      Buyer’s
        Liabilities shall not exceed $50,000.00.

    

    ARTICLE
      IX

    TERMINATION

    

    9.1
      TERMINATION EVENTS

    

      By
        notice
        given prior to or at the Closing, subject to Section 9.2, this Agreement
        may be
        terminated by
        the
        party or parties referenced below as
        follows:

    

    (a) by
      Buyer,
      if a material Breach of any provision of this Agreement has been committed
      by
      Company or Seller and such Breach has not been waived by Buyer;

    

      (b)
         by
        Buyer,
        if its due diligence investigation indicates that any of the information
        provided for in the Agreement or by
        Seller
        or Company
        is inaccurate, incomplete or untrue in any way, or if such due diligence
        investigation reveals any facts, circumstances, liabilities or conditions
        that,
        in Buyer’s
        discretion, may adversely affect the value or prospects of the Seller
        Shares
        or Company
        or that may expose Company
        to any liability not heretofore fully disclosed to Buyer; or

    

      (c) by
        Seller’s
        holding a
        majority
        of the
        Sellers
        Shares,
        if a
        material Breach of any provision of this Agreement has been committed by
        Buyer
        and such Breach has not been waived by Sellers’ Agent or Company;

    

    
      
         

      

      
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    (d) by
      Buyer,
      if any condition in Article 7 has not been satisfied as of the date specified
      for Closing in the first sentence of Section 2.2 or if satisfaction of such
      a
      condition by such date is or becomes impossible (other than through the failure
      of Buyer to comply with its obligations under this Agreement), and Buyer has
      not
      waived such condition on or before such date;

    

      (e) by
        Seller’s
        holding a
        majority
        of the
        Sellers
        Shares,
        if any
        condition in Article 8 has not been satisfied as of the date specified for
        Closing in the first sentence of Section 2.2 or if satisfaction of such a
        condition by such date is or becomes impossible (other than through the failure
        of Company or Sellers
        to
        comply with their obligations under this Agreement), and Company and
        Sellers have
        not
        waived such condition on or before such date;

    

      (f) by
        mutual
        consent of Buyer, the majority of Sellers
        Shares,
        and
        Company; 

    

      (g) by
        Buyer,
        if the Closing has not occurred on or before ninety (90) days after the date
        hereof, or such later date upon
        which
        the
        parties may agree,
        unless
        the Buyer is in material Breach of this Agreement; or

    

      (h) by
        the
Seller’s
        holding a majority
        of Seller
        Shares,
        if the
        Closing has not occurred on or before ninety (90) days after the date hereof,
        or
        such later date upon
        which
        the
        parties may agree,
        unless
        any Seller
        or
        the Company is in material Breach of this Agreement.

    

    9.2
      EFFECT OF TERMINATION

    

      Each
        party's right of termination under Section 9.1 is in addition to any other
        rights it may have under this Agreement,
        at
        law
        or
in
        equity,
        and the
        exercise of such right of termination will not be an election of
        remedies
        to the
        exclusion of any others. If
        this
        Agreement is terminated pursuant to Section 9.1, all obligations of the parties
        under this Agreement will terminate, except that the obligations of the parties
        in this Section 9.2 and Articles 12 and 13 will survive;
        provided, however, that, if this Agreement is terminated because of a Breach
        of
        this Agreement by the non-terminating party or because one or more of the
        conditions to the terminating party's obligations under this Agreement is
        not
        satisfied as a result of the non-terminating party's failure to comply with
        its
        obligations under this Agreement, the terminating party's right to pursue
        all
        legal remedies will survive such termination unimpaired.

    

    ARTICLE
      X

    ADDITIONAL
      COVENANTS

    

    10.1
      CUSTOMER AND OTHER BUSINESS RELATIONSHIPS

    

      After
        the
        Closing, Sellers shall cooperate with Buyer in its efforts to maintain
        and
        continue for
        the
        benefit of Buyer those business relationships of Company that
        existed
        prior to
        the Closing and relating to the business to be operated by Buyer after the
        Closing, including relationships with lessors, employees, regulatory
        authorities, licensors, customers, suppliers and others. Sellers will refer
        to
        Buyer all inquiries relating to such business. Sellers shall not take any
        action
        that would have
        the
        effect of to diminishing
        the
        value of, or interfering
        with,
        the Company’s business after the Closing, including
        but not
        limited to,
        disparaging the name or business of Buyer.

    

    
      
         

      

      
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    10.2
      FURTHER ASSURANCES

    

      From
        and
        after the date hereof, and continuing after the Closing, the parties shall
        cooperate reasonably with each other and with their respective Representatives
        in connection with any steps required to be taken as part of their respective
        obligations under this Agreement, and shall (a) furnish upon request to each
        other any
        further
        information
        that any
        party hereto may reasonably require;
        (b)
        execute and deliver to each other party
        such
        other documents
        as such
        other parties may reasonably require;
        and (c)
        do such other acts and things
        as the
        other parties
        may
        reasonably request for the purpose of carrying out the intent of this Agreement
        and the Contemplated Transactions.

    

    10.3
      POST-CLOSING SEC FILINGS

    

    As
      soon
      as practicable following the Closing, Buyer shall cause the transactions
      contemplated hereunder to be memorialized and disclosed by making all filings
      or
      recordings required under applicable law. Sellers hereby covenant and agree
      to
      aid Buyer, as specifically requested by Buyer, in preparing and making such
      filings or recordings, at Buyer’s expense. 

    

    ARTICLE
      XI

    INDEMNIFICATION;
      REMEDIES

    

    11.1
      SURVIVAL

    

    (a)
      All
      representations, warranties, covenants and obligations in this Agreement, the
      Schedules, any supplements to the Schedules, the certificates delivered pursuant
      to Section 2.3, and any other certificate or document delivered pursuant to
      this
      Agreement shall survive the Closing and the consummation of the Contemplated
      Transactions until the expiration of their respective statutes of limitations.
      

    

      (b)
        The
        right to indemnification, reimbursement or other remedy based upon such
        representations, warranties, covenants and obligations shall not be affected
        by
        any investigation (including any environmental investigation or assessment)
        conducted with respect to, or any Knowledge acquired (or capable of being
        acquired) at any time, whether before or after the execution and delivery
        of
        this Agreement or the Closing Date, with respect to the accuracy or inaccuracy
        of or compliance with any such representation, warranty, covenant or obligation.
        The waiver of any condition based upon the accuracy of any representation
        or
        warranty, or upon
        the
        performance of or compliance with any covenant or obligation, will not affect
        the right to indemnification, reimbursement or other remedy based upon such
        representations, warranties, covenants and obligations.

    

    11.2
      INDEMNIFICATION AND REIMBURSEMENT BY SELLERS

    

      Sellers
        and Company
        shall, jointly and severally, indemnify and hold harmless Buyer, and its
        Representatives,
        shareholders, directors, officers, employees, agents, subsidiaries, and
        affiliates (collectively, the "Buyer Indemnified Persons"), and shall reimburse
        the Buyer Indemnified Persons for any loss, Liability,
        claim,
        damage, expense (including costs of investigation and defense and reasonable
        attorneys' fees and expenses) or diminution of value, whether or not involving
        a
        Third Party
        Claim (collectively, "Damages"), arising from or in connection
        with:

    

    
      
         

      

      
        31

        
          

        

      

      
         

      

       

    

      (a)
        any
        Breach of any representation or warranty made by any Seller or Company
        in this Agreement and any other certificate, document, writing or instrument
        delivered by any Seller or Company
        pursuant
        to this Agreement; 

    

      (b)
        any
        Breach of any covenant or obligation of any Seller or Company
        in this Agreement or in any other certificate, document, writing or instrument
        delivered by any Seller or Company
        pursuant to this Agreement; 

    

    (c)
      any
      Liability arising out of the operation of Company
      or its business or Assets prior to the Closing Date; 

    

      (d)
        any
        product or any services sold, included in Inventory, or otherwise provided
        by,
Company,
        in whole or in part, prior to the Closing Date, including claims for
Breach
        of
        warranty or product Liability;

    

    (e)
      any
      Liability under any Company Contract entered into prior to the Closing Date,
      including any Liability arising out of or relating to Seller's credit facilities
      or any security interest related thereto; 

    

      (f)
        any
        Liability for Taxes, including (i)
        any
        Taxes arising as a result of the Company's operation of its Business or
        ownership of its Assets prior to the Closing Date, and (ii)
        any
        Taxes that will arise as a result of the sale of the Seller
        Shares
        pursuant to this Agreement;

    

      (g)
        any
        Liability relating to payroll, vacation, sick leave, workers' compensation,
        unemployment benefits, pension benefits, employee stock option or profit-sharing
        plans, health care plans or benefits or any other employee plans or benefits
        of
        any kind for Company's
        employees or former employees or both; 

    

    (h)
      any
      Liability relating to the payment of all wages and other remuneration due to
      any
Company
      employees with respect to their services as employees of Company through the
      close of business on the Closing Date, including pro rata bonus payments and
      all
      vacation pay earned prior to the Closing Date and the payment of any termination
      or severance payments and the provision of health plan continuation coverage
      in
      accordance with the requirements of COBRA and Sections 601 through 608 of
      Employee Retirement Income Security Act of 1974.

    

    (i)
      any
      Liability arising out of any Proceeding commenced after the Closing Date and
      arising out of or relating to any occurrence or event happening prior to the
      Closing Date, and any Liability under any Company Contract that arises after
      the
      Closing but that arises out of or relates to any Breach that occurred prior
      to
      the Closing, and any such other Liability;

    

    (j)
      any
      Liability arising out of or resulting from Company's
      compliance or noncompliance with any Legal Requirement or Order of any
      Governmental Body; 

    

    
      
         

      

      
        32

        
          

        

      

      
         

      

       

    

    (k)
      any
      Liability of Company
      under this Agreement or any other document executed in connection with the
      Contemplated Transactions; and

    

      (l)
        any
        Liability of Company
        based upon any Seller’s acts or omissions occurring after the Closing
        Date.

    

    11.3
      INDEMNIFICATION AND REIMBURSEMENT BY BUYER

    

    Buyer
      will indemnify and hold harmless Sellers and Company,
      and will reimburse Sellers and Company,
      for any Damages arising from or in connection with:

    

      (a) any
        Breach of any representation or warranty made by Buyer in this Agreement
        or in
        any certificate, document, writing or instrument delivered by Buyer pursuant
        to
        this Agreement;
        or

    

    (b) any
      Breach of any covenant or obligation of Buyer in this Agreement or in any other
      certificate, document, writing or instrument delivered by Buyer pursuant to
      this
      Agreement.

    

    11.4
      THIRD-PARTY CLAIMS

    

      (a) Promptly
        after receipt by a Person entitled to indemnity under Section 11.2, 11.3
        (to the
        extent provided in the last sentence of Section 11.3) (an "Indemnified Person")
        of notice of the assertion of a Third-Party Claim against it, such Indemnified
        Person shall give notice to the Person obligated to indemnify it
        under
        such Section (an "Indemnifying Person") of the assertion of such Third-Party
        Claim, provided that the failure to notify the Indemnifying Person will not
        relieve the Indemnifying Person of any liability that it may have to any
        Indemnified Person, except to the extent that the Indemnifying Person
        demonstrates that the defense of such Third-Party Claim is prejudiced by
        the
        Indemnified Person's failure to give such notice.

    

      (b) If
        an
        Indemnified Person gives notice to the Indemnifying Person pursuant to Section
        11.4(a) of the assertion of a Third-Party Claim, the Indemnifying Person
        shall
        be entitled to participate in the defense of such Third-Party Claim and,
        to the
        extent that it wishes (unless (i) the Indemnifying Person is also a Person
        against whom the Third-Party Claim is made and the Indemnified Person determines
        in good faith that joint representation would be inappropriate or (ii) the
        Indemnifying Person fails to provide reasonable assurance to the Indemnified
        Person of its financial capacity to defend such Third-Party Claim
        and
        to
        provide
        indemnification with respect to such Third-Party Claim), to assume the defense
        of such Third-Party Claim with counsel satisfactory to the Indemnified Person.
        After notice from the Indemnifying Person to the Indemnified Person of its
        election to assume the defense of such Third-Party Claim, the Indemnifying
        Person shall not, so long as it diligently conducts such defense, be liable
        to
        the Indemnified Person under this Article 11 for any fees of other counsel
        or
        any other expenses with respect to the defense of such Third-Party Claim,
        in
        each case subsequently incurred by the Indemnified Person in connection with
        the
        defense of such Third-Party Claim, other than reasonable costs of investigation.
        If the Indemnifying Person assumes the defense of a Third-Party Claim, (i)
        such
        assumption will conclusively establish for purposes of this Agreement that
        the
        claims made in that Third-Party Claim are within the scope of and subject
        to
        indemnification, and (ii) no compromise or settlement of such Third-Party
        Claims
        may be effected by the Indemnifying Person without the Indemnified Person's
        Consent unless (A) there is no finding or admission of any violation of Legal
        Requirement or any violation of the rights of any Person; (B) the sole relief
        provided is monetary damages that are paid in full by the Indemnifying Person;
        and (C) the Indemnified Person shall have no liability with respect to any
        compromise or settlement of such Third-Party Claims effected without its
        Consent. If notice is given to an Indemnifying Person of the assertion of
        any
        Third-Party Claim and the Indemnifying Person does not, within ten (10) days
        after the Indemnified Person's notice is given, give notice to the Indemnified
        Person of its election to assume the defense of such Third-Party Claim, the
        Indemnifying Person will be bound by any determination made in such Third-Party
        Claim or any compromise or settlement effected by the Indemnified
        Person.

    

    
      
         

      

      
        33

        
          

        

      

      
         

      

       

    

    (c) Notwithstanding
      the foregoing, if an Indemnified Person determines in good faith that there
      is a
      reasonable probability that a Third-Party Claim may adversely affect it or
      its
      Related Persons other than as a result of monetary damages for which it would
      be
      entitled to indemnification under this Agreement, the Indemnified Person may,
      by
      notice to the Indemnifying Person, assume the exclusive right to defend,
      compromise or settle such Third-Party Claim, but the Indemnifying Person will
      not be bound by any determination of any Third-Party Claim so defended for
      the
      purposes of this Agreement or any compromise or settlement effected without
      its
      Consent (which may not be unreasonably withheld).

    

      (d) Notwithstanding
        the provisions of Section 13.4, Company and Sellers
        hereby
        consent to the nonexclusive jurisdiction of any court in which a Proceeding
        in
        respect of a Third-Party Claim is brought against any Buyer Indemnified Person
        for purposes of any claim that a Buyer Indemnified Person may have under
        this
        Agreement with respect to such Proceeding or the matters alleged therein
        and
        agree that process may be served on Company and Sellers
        with
        respect to such a claim anywhere in the world.

    

    (e) With
      respect to any Third-Party Claim subject to indemnification under this Article
      11: (i) both the Indemnified Person and the Indemnifying Person, as the case
      may
      be, shall keep the other Person fully informed of the status of such Third-Party
      Claim and any related Proceedings at all stages thereof where such Person is
      not
      represented by its own counsel, and (ii) the parties agree (each at its own
      expense) to render to each other such assistance as they may reasonably require
      of each other and to cooperate in good faith with each other in order to ensure
      the proper and adequate defense of any Third-Party Claim.

    

      (f) With
        respect to any Third-Party Claim subject to indemnification under this Article
        11, the parties agree to cooperate in such a manner as to preserve in full
        (to
        the extent possible) the confidentiality of all Confidential Information
        and the
        attorney-client and work-product privileges. In connection therewith, each
        party
        agrees that: (i) it will use its Best Efforts, in respect of any Third-Party
        Claim in which it has assumed or participated in a
        defense,
        to avoid production of Confidential Information (consistent with applicable
        law
        and rules of procedure), and (ii) all communications between any party hereto
        and counsel responsible for or participating in the defense of any Third-Party
        Claim shall, to the extent possible, be made so as to preserve any applicable
        attorney-client or work-product privilege.

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    11.5
      OTHER CLAIMS

    

    A
      claim
      for indemnification for any matter not involving a Third-Party Claim may be
      asserted by notice to the party from whom indemnification is sought and shall
      be
      paid promptly after such notice.

    

    11.6
      INDEMNIFICATION IN CASE OF STRICT LIABILITY OR INDEMNITEE
      NEGLIGENCE

    

      THE
        INDEMNIFICATION PROVISIONS CONTAINED
        IN
        THIS
        ARTICLE 11 SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED
        UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LEGAL REQUIREMENTS (INCLUDING
        ANY
        PAST, PRESENT OR FUTURE ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL
        SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LEGAL
        REQUIREMENT) AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM
        WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT,
        CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION
        OR
        THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON SEEKING
        INDEMNIFICATION.

    

    ARTICLE
      XII

    CONFIDENTIALITY

    

    12.1
      CONFIDENTIAL INFORMATION

    

      (a) Each
        party agrees that, unless and until the Closing has been consummated, each
        party
        will hold in strict confidence, and will not use to the detriment of any
        other
        party hereto, any data and information obtained in connection with this
        Agreement or the Contemplated Transactions, except insofar as this data and
        information may be required by law to be included in documents required to
        be
        filed by Buyer with the SEC under the Exchange Act and the rules and regulations
        promulgated thereunder.

    

    (b) "Confidential
      Information" means all items, materials and information which belong to a party
      hereto and are not generally known to the public that has been or may hereafter
      be disclosed to the other party by such party or by the directors, officers,
      employees, agents, consultants, advisors or other representatives, including
      legal counsel, accountants and financial advisors of such party, irrespective
      of
      the form of the disclosure. Confidential Information is intended to be
      interpreted broadly and includes trade secrets and other proprietary or
      confidential information concerning the business and affairs of a party hereto,
      product specifications, data, know-how, formulae, compositions, processes,
      designs, sketches, photographs, graphs, drawings, samples, inventions and ideas,
      past, current, and planned research and development, current and planned
      manufacturing or distribution methods and processes, customer lists, current
      and
      anticipated customer requirements, price lists, supplier lists, market studies,
      business plans, computer software and programs (including object code and source
      code), computer software and database technologies, systems, structures and
      architectures (and related processes, formulae, composition, improvements,
      devices, know-how, inventions, discoveries, concepts, ideas, designs, methods
      and information); financial statements, financial projections and budgets,
      historical and projected sales, capital spending budgets and plans, the names
      and backgrounds of key personnel, and personnel training techniques and
      materials. Confidential Information also includes all notes, analyses,
      compilations, studies, summaries and other material containing or based, in
      whole or in part, upon any Confidential Information.

    

    
      
         

      

      
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    ARTICLE
      XIII

    GENERAL
      PROVISIONS

    

    13.1
      EXPENSES

    

      Except
        as
        otherwise provided in this Agreement, each party to this Agreement will bear
        its
own
        fees and
        expenses incurred in connection with the preparation, negotiation, execution
        and
        performance of this Agreement and the Contemplated Transactions, including
        all
        fees and expenses
        of its
        Representatives. If this Agreement is terminated, the obligation of each
        party
        to pay its own fees and expenses will be subject to any rights of such party
        arising from a Breach of this Agreement by another party.

    

    13.2
      PUBLIC ANNOUNCEMENTS

    

      Any
        public announcement, press release or similar publicity with respect to this
        Agreement or the Contemplated Transactions will be issued, if at all, at
        such
        time and in such manner as Buyer determines. Except with the prior consent
        of
        Buyer or as permitted by this Agreement, neither Company, Sellers
        nor any
        of their Representatives shall disclose to any Person (a) the fact that any
        confidential information of Company or Sellers
        has been
        disclosed to Buyer or its Representatives, that Buyer or its Representatives
        have inspected any portion of the Confidential
        Information
        of
        Company or Sellers,
        that
        any Confidential
        Information
        of Buyer
        has been disclosed to Company, Sellers
        or their
        Representatives or that Company, Sellers
        or their
        Representatives have inspected any portion of the Confidential
        Information
        of Buyer
        or (b) any information about the Contemplated Transactions, including the
        status
        of such discussions or negotiations, the execution of any documents (including
        this Agreement) or any of the terms of the Contemplated Transactions or the
        related documents (including this Agreement). Company
        Sellers
        and
        Buyer will consult with each other concerning the means by which Company's
        employees, customers, suppliers and others having dealings with Company will
        be
        informed of the Contemplated Transactions, and Buyer will have the right
        to be
        present for any such communication.

    

    13.3
      NOTICES

    

      All
        notices, Consents, waivers and other communications required or permitted
        by
        this Agreement shall be in writing and shall be deemed given to a party when
        (a)
        delivered to the appropriate address by hand or by nationally recognized
        overnight courier service (costs prepaid); (b) sent by facsimile with
        confirmation of transmission by the transmitting equipment; or (c) sent
        to
        the
        addressee
        by
        certified mail, return receipt requested, in each case to the following
        addresses and facsimile numbers and marked to the attention of the Person
        (by name
        or title) designated below (or to such other address, facsimile number, e-mail
        address or Person
        as a
        party may designate by notice to the other parties):

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

       

    

    Company
      (prior to Closing): 

     

    
      	 	_________________ 	 	 
	 	_________________ 	 	 
	 	_________________ 	 	 
	 	Attention:___________ 	 	 
	 	Facsimile:____________ 	 	 

    

    

    Company
      (after the Closing): 

     

    
      	 	_________________ 	 	 
	 	_________________ 	 	 
	 	_________________ 	 	 
	 	Attention:___________ 	 	 
	 	Facsimile:____________ 	 	 

    

     

    Seller:
       

     

    
      	 	_________________ 	 	 
	 	_________________ 	 	 
	 	_________________ 	 	 
	 	Facsimile:____________ 	 	 

    

     

    with
      a
      mandatory copy to: 

     

    
      	 	_________________ 	 	 
	 	Attention:___________ 	 	 
	 	Fax no.:____________ 	 	 
	 	 	 	 
	Buyer: 	Star Energy Corporation 	 	 

    

     

    
      	 	_________________ 	 	 
	 	_________________ 	 	 
	 	_________________ 	 	 
	 	Facsimile:____________ 	 	 
	 	 	 	 
	with a mandatory copy
              to:  	 	 
	 	 	 	 
	 	David Lubin & Associates,
              PLLC 	 
	 	26 East Hawthorne Avenue 	 	 
	 	Valley Stream, NY 11580 	 	 
	 	Attention: David Lubin, Esq. 	 	 
	 	Fax no.: (516) 887-8250 	 	 

    

       

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

    13.4
      RESOLUTION OF DISPUTES

    

    (a) In
      the
      event that any dispute, controversy or claim arising out of or relating to
      this
      Agreement or the breach, termination or validity thereof should arise between
      the Parties (a “Dispute”), the Party wishing to declare a Dispute shall deliver
      to the other Party a written notice identifying the disputed issue.

    

    (b) Either
      Party may give the other Party written notice of any Dispute not resolved in
      the
      normal course of business. Executives of both Parties shall meet at a mutually
      acceptable time and place within ten (10) Business Days after delivery of such
      notice and thereafter as often as they reasonably deem necessary, to exchange
      relevant information and to attempt to resolve the Dispute. In such meetings
      and
      exchanges, a Party shall have the right to designate as confidential any
      information that such Party offers. No confidential information exchanged in
      such meetings for the purpose of resolving a Dispute may be used by a Party
      in
      litigation against the other Party. If the matter has not been resolved in
      the
      aforementioned manner within thirty (30) Days of the disputing Party’s notice
      having been issued, or if the Parties fail to meet within ten (10) Business
      Days
      as required above, either Party may initiate binding arbitration in New York,
      New York, as hereafter provided in clause (c) below.

    

    (c) The
      Parties agree that all disputes, controversies or claims that may arise out
      of
      the transactions contemplated by this Agreement, or the breach, termination
      or
      invalidity thereof, including any requests for emergent or equitable relief
      and/or specific performance, shall be submitted to, and determined by, binding
      arbitration in accordance with the following procedures:

    

    (i) Either
      Party may submit a dispute, controversy or claim to arbitration by giving the
      other Party written notice to such effect, which notice shall describe, in
      reasonable detail, the facts and legal grounds forming die basis for the filing
      Party’s request for relief. The arbitration shall be held before three (3)
      neutral arbitrators in New York, New York and a decision as to any matters
      submitted thereto shall be made by a vote of any two (2) of the three
      arbitrators.

    

    (ii) Within
      thirty (30) days after the other Party’s receipt of such demand, the Parties
      shall each submit a proposed arbitrator and, once each of such arbitrators
      has
      been cleared of any potential conflicts of interest, both of such arbitrators
      shall jointly select a third arbitrator. In the event of any controversy
      concerning the selection of any one (1) or more of the arbitrators, and the
      Parties cannot resolve their disagreements as to the same within thirty (30)
      days, such arbitrator(s) shall be selected by the American Arbitration
      Association (“AAA”). In any event, each of the arbitrators shall have a
      background in, and knowledge of, transactions in the energy industry and shall
      otherwise be an appropriate person based on the nature of the dispute. If a
      person with experience in such matters is not available, the arbitrator shall
      be
      chosen from the retired federal judges pool maintained by AAA.

    

    (iii) The
      arbitration shall be governed by the Commercial Arbitration Rules of the
      AAA.

    

    (iv) Discovery
      shall be limited to requests for and production of documents, depositions and
      interrogatories. All discovery shall be guided by the Federal Rules of Civil
      Procedure. All issues concerning discovery upon which the Parties cannot agree
      shall be submitted to the arbitrators for determination.

    

    
      
         

      

      
        38

        
          

        

      

      
         

      

       

    

    (v) In
      rendering an award, the arbitrators shall determine the rights and obligations
      of the Parties according to the substantive and procedural laws of the State
      of
      New York.

    

    (vi) The
      decision of, and award rendered by, the arbitrators, shall be determined no
      more
      than sixty (60) days after the submission of the case to the arbitrators and
      shall be final and binding on the Parties and shall not be subject to appeal.
      Judgment on the award may be entered in and enforced by any court of competent
      jurisdiction.

    

    (vii) Each
      Party shall bear its own costs and expenses (including filing fees) with respect
      to the arbitration, including one-half of the fees and expenses of the
      arbitrators.

    

    13.5
      ENFORCEMENT OF AGREEMENT

    

      Company
        and Sellers acknowledge and agree
        that
        Buyer will
        be
        irreparably damaged if any of the provisions of this Agreement are not performed
        in accordance with their specific terms and that any Breach of this Agreement
        by
        Company or Sellers will
        be
        incapable of being
        adequately compensated by
        monetary damages alone. Accordingly, in addition to any other right or remedy
        to
        which Buyer may be entitled
        at law
        or in equity, Buyer
        shall be
        entitled to enforce any provision of this Agreement by a decree of specific
        performance and by
        temporary, and
        permanent injunctive relief to prevent Breaches or threatened Breaches of
        any of
        the provisions of this Agreement, without posting any bond or other
        undertaking.

    

    13.6
      WAIVER; REMEDIES CUMULATIVE

    

    The
      rights and remedies of the parties to this Agreement are cumulative and not
      alternative. Neither any failure nor any delay by any party in exercising any
      right, power or privilege under this Agreement or any of the documents referred
      to in this Agreement will operate as a waiver of such right, power or privilege,
      and no single or partial exercise of any such right, power or privilege will
      preclude any other or further exercise of such right, power or privilege or
      the
      exercise of any other right, power or privilege. To the maximum extent permitted
      by applicable law, (a) no claim or right arising out of this Agreement or any
      of
      the documents referred to in this Agreement can be discharged by one party,
      in
      whole or in part, by a waiver or renunciation of the claim or right unless
      in
      writing signed by the other party; (b) no waiver that may be given by a party
      will be applicable except in the specific instance for which it is given; and
      (c) no notice to or demand on one party will be deemed to be a waiver of any
      obligation of that party or of the right of the party giving such notice or
      demand to take further action without notice or demand as provided in this
      Agreement or the documents referred to in this Agreement.

    

    13.7
      ENTIRE AGREEMENT AND MODIFICATION

    

      This
        Agreement supersedes all prior agreements, whether written or oral, between
        the
        parties with respect to its subject matter (including any letter of intent
        and
        any confidentiality agreement between Buyer, on the one hand, and Sellers
        or
        Company, on the other hand) and constitutes (along with the Schedules, Exhibits
        and other documents delivered pursuant to this Agreement) a complete and
        exclusive statement of the terms of the agreement between the parties with
        respect to its subject matter. This Agreement may not be amended, supplemented,
        or otherwise modified except by a written agreement executed by the party
        to be
        charged with the amendment.

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

       

    

    13.8
      SCHEDULES

    

      (a) The
        information contained
        in
        the
        Schedules constitutes (i) exceptions to particular representations, warranties,
        covenants and obligations of Sellers and
        Company as
        set
        forth in this Agreement or (ii) descriptions or lists of Assets
        and
Liabilities
        and
        other items referred to in this Agreement. If there is any inconsistency
        between
        the statements in this Agreement and those in the Schedules (other than an
        exception expressly set forth as such in the Schedules with respect to a
        specifically identified representation or warranty), the statements in this
        Agreement will prevail.

    

    (b) The
      statements in the Schedules, and those in any supplement thereto, relate only
      to
      the provisions in the Section of this Agreement to which they expressly relate
      and not to any other provision in this Agreement.

    

    13.9
      ASSIGNMENTS, SUCCESSORS AND NO THIRD-PARTY RIGHTS

    

    No
      party
      may assign any of its rights or delegate any of its obligations under this
      Agreement without the prior written consent of the other parties, and any such
      attempted assignment shall be null and void and of no force or effect. Subject
      to the preceding sentence, this Agreement will apply to, be binding in all
      respects upon and inure to the benefit of the successors and permitted assigns
      of the parties. Nothing expressed or referred to in this Agreement will be
      construed to give any Person other than the parties to this Agreement any legal
      or equitable right, remedy or claim under or with respect to this Agreement
      or
      any provision of this Agreement, except such rights as shall inure to a
      successor or permitted assignee pursuant to this Section 13.9.

    

    13.10
      SEVERABILITY

    

    If
      any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement will remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

    

    13.11
      CONSTRUCTION

    

    The
      headings of Articles and Sections in this Agreement are provided for convenience
      only and will not affect its construction or interpretation. All references
      to
      "Articles," "Sections," “Exhibits,” and "Schedules" refer to the corresponding
      Articles, Sections, Exhibits, and Schedules of this Agreement.

    

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

    13.12
      TIME OF ESSENCE

    

    With
      regard to all dates and time periods set forth or referred to in this Agreement,
      time is of the essence.

    

    13.13
      GOVERNING LAW

    

      This
        Agreement will be governed by and construed under the laws of the State of
        New
        York, without regard to conflicts-of-laws
        rules or
        any
        principles that would require the application of any other
        law.

    

    13.14
      EXECUTION OF AGREEMENT

    

      This
        Agreement may be executed in one or more counterparts, each of which will
        be
        deemed to be an original copy of this Agreement and all of which, when taken
        together, will be deemed to constitute one and the same instrument.
        The
        exchange of copies of this Agreement and of signature pages by facsimile
        transmission shall constitute effective execution and delivery of this Agreement
        as to the parties and may be used in lieu of the original Agreement for all
        purposes. Signatures of the parties transmitted by facsimile shall be deemed
        to
        be their original signatures for all purposes.

    

    13.15
      SELLER AND COMPANY LIABILITY; SELLERS’ RELEASE

    

      (a)
        The
Liability
        of each
        Seller hereunder shall be joint and several with the other Sellers. Where
        in
        this Agreement provision is made for any action to be taken or not taken
        by
        Company, Sellers jointly and severally undertake to cause Company to take
        or not
        take such action, as the case may be. Without limiting the generality of
        the
        foregoing, Sellers shall be jointly and severally liable for the indemnities
        set
        forth in Article 11.

    

      (b)
        The
Liability
        of
        Company prior to Closing shall be joint and several with Sellers.
        Upon Closing, Company shall be forever discharged and released from all
Liabilities
        hereunder, including any claims of contribution from Sellers.
        In addition, in consideration for the Contemplated
        Transactions,
        as of
        the Closing, Sellers and their respective heirs, executors, successors and
        assigns (the "Waiving Parties"), release, waive and forever discharge, in
        all
        capacities, including as stockholders of Company, from and after the Closing
        any
        and all claims, known or unknown, that the Waiving Parties ever had, now
        have or
        may have against Company and its officers, directors, employees or agents
        in
        connection with or arising out of any act or omission of Company or its
        officers, directors, employees, advisers or agents, in such capacity, at
        or
        prior to the Closing. 

    

    13.16
      REPRESENTATIVE OF SELLERS

    

    (a) Sellers
      hereby irrevocably constitute and appoint Armenak A. Safarov as their
      representative ("Sellers’ Agent") and their true and lawful attorney in fact,
      with full power and authority in each of their names and on behalf of each
      of
      them:

    

    (i) to
      act on
      behalf of each of them in the absolute discretion of the Sellers’ Agent;

    

    
      
         

      

      
        41

        
          

        

      

      
         

      

       

    

    (ii)
       to
      give
      and receive notices under this Agreement pursuant to Section 13.3;

    

      (iii)
         to
        execute and deliver all documents and instruments required to be executed
        and
        delivered by Sellers
        or any of them under this Agreement and the other Closing Documents;

    

      (iv)
         to
        receive all payments that are required to be made to Sellers
        under this Agreement.

    

    (v)
       to
      consent to the assignment of rights under this Agreement in accordance with
      Section 13.9; 

    

    (vi)
       to
      terminate this Agreement pursuant to Section 9.1 or waive any provision of
      this
      Agreement pursuant to Article 8, Section 9.1 and Section 13.6; 

    

    (vii)
       to
      accept
      service of process pursuant to Section 13.4;

    

    (viii)
       to
      act in
      connection with any matter as to which each of Sellers,
      jointly and severally, have obligations, or are Indemnified Persons, under
      Article 11; and

    

    (ix) in
      general, to do all things and to perform all acts, including executing and
      delivering all agreements, certificates, receipts, instructions and other
      instruments contemplated by or deemed advisable to effectuate the provisions
      of
      this Section 13.16.

    

      (a) This
        appointment and grant of power and authority is coupled with an
        interest,
        is in
        consideration of the mutual covenants made herein,
        pursuant to clause (a) above
        and is
        irrevocable and shall not be terminated by any act of either Sellers
        or Company or by operation of law, whether by the death or incapacity of
        any of
        Sellers or by the occurrence of any other event. Each Seller hereby consents
        to
        the taking of any and all actions and the making of any decisions required
        or
        permitted to be taken or made by the Sellers’ Agent pursuant to this Section
        13.16. Each of Sellers
        agrees that the Sellers’ Agent shall have no obligation or liability to any
        Person for any action or omission taken or omitted by the Sellers’ Agent in good
        faith hereunder, and each of Sellers
        shall, on a proportionate basis in accordance with his her
        or
        its
ownership
        interest in Company,
        indemnify and hold the Sellers’ Agent harmless from and against any and all
        loss, damage, expense or liability (including reasonable counsel fees and
        expenses) which the Sellers’ Agent may sustain as a result of any such action or
        omission by the Sellers’ Agent hereunder.

    

      (b) Buyer
        shall be entitled to rely upon any document or other paper delivered by the
        Sellers’ Agent as (i) genuine and correct and (ii) having been duly signed or
        sent by the Sellers’ Agent, and Buyer shall not be liable to of
        any
        Sellers
        or Company for any action taken or omitted to be taken by Buyer in such
        reliance.

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    

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

    

    
      	
              BUYER:

            	
              COMPANY:

            
	 	 
	
              STAR
                ENERGY CORPORATION

            	
              VOLGA-NEFT
                LIMITED COMPANY

            
	 	 
	
              By:
                 /s/
                Marcus Segal

            	
              By:
                 /s/
                Armenak A. Safarov

            
	
              Name:
                Marcus Segal

            	
              Name:
                 ____________________

            
	
              Title:
                 Chief
                Executive Officer

            	
              Title:
                 ____________________

            
	 	 
	
              SELLERS:

            	 
	 	 
	
              ARTIIR
                ANDREASOVICH DZHALOVYAN

            	 
	 	 
	
              By: 

            	
              /s/
                Armenak A. Safarov

            	 
	
              Name:

            	
              Armenak
                A. Safarov

            	 
	
              Capacity:

            	
              Attorney-In-Fact
                under the Power of Attorney dated July 31, 2006, from such Seller
                to
                Armenak A. Safarov

            	 
	 	 
	
              OLGA
                AMUOFYEVNA DUBROVSKAYA

            	 
	 	 
	
              By: 

            	
              /s/
                Armenak A. Safarov 

            	 
	
              Name:

            	
              Armenak
                A. Safarov

            	 
	
              Capacity:

            	
              Attorney-In-Fact
                under the Power of Attorney dated July 31, 2006, from such Seller
                to
                Armenak A. Safarov

            	 
	 	 

    

    

    ACCEPTANCE
      AND AGREEMENT OF SELLERS’ AGENT

    

    The
      undersigned, being the Sellers’ Agent designated in Section 13.16 of the
      foregoing Stock Purchase Agreement, agrees to serve as the Sellers’ Agent and to
      be bound by the terms of such Stock Purchase Agreement pertaining
      thereto.

    

    Dated:
      _______________, 2006

    

    /s/
      Armenak A. Safarov

    Name:
       Armenak
      A. Safarov

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    LIST
      OF
      EXHIBITS

    

    Exhibit
      A: Sellers

    Exhibit
      1.1 Definitions

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    LIST
      OF
      SCHEDULES

    

    Schedule
      3.1(a): Jurisdictions of Company 

    Schedule
      3.1(b): Governing Documents of Company

    Schedule
      3.3(a): Company’s Capitalization

    Schedule
      3.6(a): Company’s Assets

    Schedule
      3.7(a): Real Estate Owned by Company

    Schedule
      3.7(b): Real Estate Leased by Company

    Schedule
      3.8(a): Encumbrances on Real Estate of Company

    Schedule
      3.13(a): Unpaid Taxes of Company

    Schedule
      3.13(b): Company Tax Returns

    Schedule
      3.15(a): Company Personnel Matters

    Schedule
      3.16(b): Company Governmental Authorizations

    Schedule
      3.18(a): Company Contracts

    Schedule
      3.18(c): Enforceability of Company Contracts

    Schedule
      3.18(d): Compliance with Company Contracts 

    Schedule
      3.19(a): Company Insurance Policies

    Schedule
      3.19(b): Third Party Obligations of Company to Provide Insurance
      Coverage

    Schedule
      3.20: Company Environmental Liabilities

    Schedule
      3.21(b): Company Intellectual Property Matters

    Schedule
      3.21(c): Intellectual Property Licenses

    Schedule
      3.21(e): Company Patents

    Schedule
      3.21(h): Company Marks

    Schedule
      3.21(i): Company Copyrights

    Schedule
      3.21(k): Company Net Names

    Schedule
      3.22: Company Related Persons

    Schedule
      3.23: Company Brokers

    Schedule
      3.24: Company Securities Law Matters

    Schedule
      4.3(a): Buyer’s Capitalization

    Schedule
      4.7: Buyer Brokers

    Schedule
      7.3: Company Material Consents

    Schedule
      8.3: Buyer Material Consents

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    EXHIBITS

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    SELLERS

    

     

    1.    OLGA
      AMUOFYEVNA DUBROVSKAYA

    

    2.    ARTIIR
      ANDREASOVICH DZHALOVYAN

     

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    EXHIBIT
      1.1

    

    DEFINITIONS

    

    For
      purposes of this Agreement, the following terms and variations thereof have
      the
      meanings specified or referred to in this Section 1.1:

    

      "Accounts
        Receivable"
        means
(a)
        all
        trade accounts receivable and other rights to payment from customers of
Company
        and the full benefit of all security for such accounts or rights to payment,
        including all trade accounts receivable representing amounts receivable in
        respect of goods shipped or products sold or services rendered to customers
        of
Company,
        (b) all other accounts or notes receivable of Company
        and the full benefit of all security for such accounts or notes and (c) any
        claim, remedy or other right related to any of the foregoing.

     

      "Assets"
        means
        all real
        property; all Tangible Personal Property; all Inventories; all Accounts
        Receivable; all Company Contracts; all data and Records related to the
        operations of Company; and all of the intangible rights and property of Company,
        including Intellectual Property Assets, going concern value, goodwill,
        telephone, facsimile and e-mail addresses.

    

      "Balance
        Sheet"
        has the
        meaning set forth
        in
        Section 3.4.

    

      "Best
        Efforts"
        means
the
        efforts that a prudent Person desirous of achieving a result would use in
        similar circumstances to achieve that result as expeditiously as
        possible;
        provided, however, that a Person required to use Best Efforts under this
        Agreement will not be thereby required to take actions that would result
        in a
        material adverse change in the benefits to such Person of this Agreement
        and the
        Contemplated Transactions or to dispose of or make any change to its business,
        expend any material funds or incur any other material burden.

    

      "Breach"
        means
any
        breach of, or any inaccuracy in, any representation or warranty or any breach
        of, or failure to perform or comply with, any covenant or obligation, in
        or of
        this Agreement or any other Contract, or any event which,
        with the
        passing of time or the giving of notice
        or both,
        would constitute such a breach, inaccuracy or failure.

    

      "Business
        Day"
        means
any
        day
        other than (a) Saturday or Sunday or (b) any other day on which banks are
        permitted or required to be closed
        in the
        State of New York.

    

      "Buyer"
        has the
        meaning set forth
        in the
        first paragraph of this Agreement.

    

      "Buyer
        Indemnified Persons"
        has the
        meaning set forth
        in
        Section 11.2.

    

      "Closing"
        has the
        meaning set forth
        in
        Section 2.2.

    

      "Closing
        Date"
        means
the
        date
        on which the Closing actually takes place.

    

      "Code"
        means
the
        Internal Revenue Code of 1986.

    

    
      
         

      

      
        48

        
          

        

      

      
         

      

       

    

      "Company"
        has the
        meaning set forth
        in the
        first paragraph of this Agreement.

    

      "Company
        Contract"
        means
any
        Contract (a) under which Company has or may acquire any rights or benefits;
        (b)
        under which Company has or may become subject to any obligation or Liability;
        or (c)
        by which Company or any of the Assets
        owned or
        used by Company is,
        are
        or may
        become bound.

    

      "Confidential
        Information"
        has the
        meaning set forth
        in
        Section 12.1.

    

      "Consent"
        means
any
        approval, consent, ratification, waiver or other
        authorization.

    

      "Contemplated
        Transactions"
        means
all
        of
        the transactions contemplated by this Agreement.

    

      "Contract"
        means
any
        agreement, contract, Lease, consensual obligation, promise or undertaking
        (whether written or oral and whether express or implied), whether or not
        legally
        binding.

    

    “Copyright”
      has the meaning set forth in Section 3.21.

    

      "Damages"
        has the
        meaning set forth
        in
        Section 11.2.

    

      "Effective
        Time"
        means
        the time
        at which the Closing is consummated.

    

      "Employee
        Plans" has the meaning set forth in Section 3.15(d).

    

      "Encumbrance"
        means
any
        charge, claim, community or other marital property interest, condition,
        equitable interest, lien, option, pledge, security interest, mortgage, right
        of
        way, easement, encroachment, servitude, right of first option, right of first
        refusal or similar restriction, including any restriction on use, voting
        (in the
        case of any security or equity interest), transfer, receipt of income or
        exercise of any other attribute of ownership.

    

      "Environment"
        means
soil,
        land surface or subsurface strata, surface waters (including navigable waters
        and ocean waters), groundwaters, drinking water supply, stream sediments,
        ambient air (including indoor air), plant and animal life and any other
        environmental medium or natural resource.

    

      "Environmental,
        Health and Safety Liabilities"
        means
any
        cost,
        damages, expense, Liability,
        obligation or other responsibility arising from or under any Environmental
        Law
        or Occupational Safety and Health Law, including those consisting of or relating
        to:

    

    (a) any
      environmental, health or safety matter or condition (including on-site or
      off-site contamination, occupational safety and health and regulation of any
      chemical substance or product);

    

    
      
         

      

      
        49

        
          

        

      

      
         

      

       

    

    (b) any
      fine,
      penalty, judgment, award, settlement, legal or administrative proceeding,
      damages, loss, claim, demand or response, remedial or inspection cost or expense
      arising under any Environmental Law or Occupational Safety and Health
      Law;

    

    (c) financial
      responsibility under any Environmental Law or Occupational Safety and Health
      Law
      for cleanup costs or corrective action, including any cleanup, removal,
      containment or other remediation or response actions ("Cleanup") required by
      any
      Environmental Law or Occupational Safety and Health Law (whether or not such
      Cleanup has been required or requested by any Governmental Body or any other
      Person) and for any natural resource damages; or

    

    (d) any
      other
      compliance, corrective or remedial measure required under any Environmental
      Law
      or Occupational Safety and Health Law.

    

    The
      terms
      "removal," "remedial" and "response action" include the types of activities
      covered by the United States Comprehensive Environmental Response, Compensation
      and Liability Act of 1980 (CERCLA).

    

      "Environmental
        Law"
        means
any
        Legal
        Requirement that requires or relates to:

    

    (a) advising
      appropriate authorities, employees or the public of intended or actual Releases
      of pollutants or hazardous substances or materials, violations of discharge
      limits or other prohibitions and the commencement of activities, such as
      resource extraction or construction, that could have significant impact on
      the
      Environment;

    

    (b) preventing
      or reducing to acceptable levels the Release of pollutants or hazardous
      substances or materials into the Environment;

    

    (c) reducing
      the quantities, preventing the Release or minimizing the hazardous
      characteristics of wastes that are generated;

    

    (d) assuring
      that products are designed, formulated, packaged and used so that they do not
      present unreasonable risks to human health or the Environment when used or
      disposed of;

    

    (e) protecting
      resources, species or ecological amenities;

    

    (f) reducing
      to acceptable levels the risks inherent in the transportation of hazardous
      substances, pollutants, oil or other potentially harmful
      substances;

    

    (g) cleaning
      up pollutants that have been Released, preventing the Threat of Release or
      paying the costs of such clean up or prevention; or

    

    (h) making
      responsible parties pay private parties, or groups of them, for damages done
      to
      their health or the Environment or permitting self-appointed representatives
      of
      the public interest to recover for injuries done to public assets.

    

      "Exchange
        Act"
        means
the
        Securities Exchange Act of 1934.

    

    
      
         

      

      
        50

        
          

        

      

      
         

      

       

    

      "Facilities"
        means
any
        real
        property, leasehold or other interest in real property currently owned or
        operated by Company, including the Tangible Personal Property used or operated
        by Company at the respective locations of the Real Property specified herein.
        Notwithstanding the foregoing, for purposes of the definitions of "Hazardous
        Activity" and "Remedial Action", "Facilities" shall mean any real property,
        leasehold or other interest in real property currently or formerly owned
        or
        operated by Company, including the Tangible Personal Property used or operated
        by Company at the respective locations of the Real Property specified herein.
        

    

      "GAAP"
        means
generally
        accepted accounting principles for financial reporting in the United States,
        applied on a basis consistent with the basis on which the Balance Sheet and
        the
        other financial statements referred to in Section 3.4 were
        prepared.

    

      "Governing
        Documents"
        means
with
        respect to any particular entity, (a) if a corporation, the articles or
        certificate of incorporation and the bylaws; (b) if a general partnership,
        the
        partnership agreement and any statement of partnership; (c) if a limited
        partnership, the limited partnership agreement and the certificate of limited
        partnership; (d) if a limited liability company, the articles of organization
        and operating agreement; (e) if another type of Person, any other charter
        or
        similar document adopted or filed in connection with the creation, formation
        or
        organization of the Person; (f) all equityholders' agreements, voting
        agreements, voting trust agreements, joint venture agreements, registration
        rights agreements or other agreements or documents relating to the organization,
        management or operation of any Person or relating to the rights, duties and
        obligations of the equityholders of any Person; and (g) any amendment or
        supplement to any of the foregoing.

    

      "Governmental
        Authorization"
        means
any
        Consent, license, registration or permit issued, granted, given or otherwise
        made available by or under the authority of any Governmental Body or pursuant
        to
        any Legal Requirement.

    

      "Governmental
        Body"
        means
any:
        (a)
        nation, state, county, city, town, borough, village, district or other
        jurisdiction; (b) federal,
        state, local, municipal, foreign or other government; (c) governmental or
        quasi-governmental authority of any nature (including any agency, branch,
        department, board, commission, court, tribunal or other entity exercising
        governmental or quasi-governmental powers); (d) multinational organization
        or
        body; (e) body exercising, or entitled or purporting to exercise, any
        administrative, executive, judicial, legislative, police, regulatory or taxing
        authority or power; or (f) official of any of the foregoing.

    

      "Ground
        Lease"
        means
any
        long-term lease of land in which most of the rights and benefits comprising
        ownership of the land and the improvements thereon or to be constructed thereon,
        if any, are transferred to the tenant for the term thereof.

    

      "Ground
        Lease Property"
        means
any
        land,
        improvements and appurtenances subject to a Ground Lease in favor of
        Company.

    

      "Hazardous
        Activity"
        means
the
        distribution, generation, handling, importing, management, manufacturing,
        processing, production, refinement, Release, storage, transfer, transportation,
        treatment or use (including any withdrawal or other use of groundwater) of
        Hazardous Material in, on, under, about or from any of the Facilities or
        any
        part thereof into the Environment and any other act, business, operation
        or
        thing that increases the danger, or risk of danger, or poses an unreasonable
        risk of harm, to persons or property on or off the
        Facilities.

    

    
      
         

      

      
        51

        
          

        

      

      
         

      

       

    

      "Hazardous
        Material"
        means
any
        substance, material or waste which is or will foreseeably be regulated by
        any
        Governmental Body, including any material, substance or waste which is defined
        as a "hazardous waste," "hazardous material," "hazardous substance," "extremely
        hazardous waste," "restricted hazardous waste," "contaminant," "toxic waste"
        or
        "toxic substance" under any provision of Environmental Law, and including
        petroleum, petroleum products, asbestos, presumed asbestos-containing material
        or asbestos-containing material, urea formaldehyde and polychlorinated
        biphenyls.

    

      "Improvements"
        means
all
        buildings, structures, fixtures and improvements located on the Land or included
        in the Assets, including those under construction.

    

      "Intellectual
        Property Assets" has the meaning set forth in Section 3.21.

    

      "Interim
        Balance Sheet"
        has the
        meaning set forth
        in
        Section 3.4.

    

      "Inventories"
        means
all
        inventories of Company, wherever located, including all finished goods, work
        in
        process, raw materials, spare parts and all other materials and supplies
        to be
        used or consumed by Company in the production of finished
        goods.

    

      "IRS"
        means
the
        United States Internal Revenue Service and, to the extent relevant, the United
        States Department of the Treasury.

    

      "Knowledge"
        means
        that an
        individual will be deemed to have Knowledge of a particular fact or other
        matter
        if: (a) that
        individual is actually aware of that fact or matter; or (b) a prudent individual
        could be expected to discover or otherwise become aware of that fact or matter
        in the course of conducting a reasonably comprehensive investigation regarding
        the accuracy of any representation or warranty contained in this Agreement.
        A
        Person (other than an individual) will be deemed to have Knowledge of a
        particular fact or other matter if any individual who is serving, or who
        has at
        any time served, as a director, officer, partner, executor or trustee of
        that
        Person (or in any similar capacity) has, or at any time had, Knowledge of
        that
        fact or other matter (as set forth in (a) and (b) above), and any such
        individual (and any individual party to this Agreement) will be deemed to
        have
        conducted a reasonably comprehensive investigation regarding the accuracy
        of the
        representations and warranties made herein by that Person or
        individual.

    

      "Land"
        means
all
        parcels and tracts of land in which Company has an ownership
        interest.

    

      "Lease"
        means
any
        Real
        Property Lease or any lease or rental agreement, license, right to use or
        installment and conditional sale agreement to which Company is a party and
        any
        other Company Contract pertaining to the leasing or use of any Tangible Personal
        Property.

    

    
      
         

      

      
        52

        
          

        

      

      
         

      

       

    

    "Legal
      Requirement"--any federal, state, local, municipal, foreign, international,
      multinational or other constitution, law, ordinance, principle of common law,
      code, regulation, statute or treaty.

    

      "Liability"
        means
with
        respect to any Person, any liability or obligation of such Person of any
        kind,
        character or description, whether known or unknown, absolute or contingent,
        accrued or unaccrued, disputed or undisputed, liquidated or unliquidated,
        secured or unsecured, joint or several, due or to become due, vested or
        unvested, executory, determined, determinable or otherwise, and whether or
        not
        the same is required to be accrued on the financial statements of such
        Person.

     

    “Marl”
      has the meaning set forth in Section 3.21.

    

      "Material
        Consents" has the meaning set forth in Section 7.3.

    

    “Net
      Name” has the meaning set forth in Section 3.21.

    

      "Order"
        means
any
        order, injunction, judgment, decree, ruling, assessment or arbitration award
        of
        any Governmental Body or arbitrator.

    

      "Ordinary
        Course of Business"
        means
an
        action
        taken by a Person will be deemed to have been taken in the Ordinary Course
        of
        Business only if that action:

    

    (a) is
      consistent in nature, scope and magnitude with the past practices of such Person
      and is taken in the ordinary course of the normal, day-to-day operations of
      such
      Person;

    

    (b) does
      not
      require authorization by the board of directors or shareholders of such Person
      (or by any Person or group of Persons exercising similar authority) and does
      not
      require any other separate or special authorization of any nature;
      and

    

    (c) is
      similar in nature, scope and magnitude to actions customarily taken, without
      any
      separate or special authorization, in the ordinary course of the normal,
      day-to-day operations of other Persons that are in the same line of business
      as
      such Person.

    

    “Patent”
      has the meaning set forth in Section 3.21.

    

      "Person"
        means
an
        individual, partnership, corporation, business trust, limited liability company,
        limited liability partnership, joint stock company, trust, unincorporated
        association, joint venture or other entity or a Governmental
        Body.

    

      "Proceeding"
        means
any
        action, arbitration, audit, hearing, investigation, litigation or suit (whether
        civil, criminal, administrative, judicial or investigative, whether formal
        or
        informal, whether public or private) commenced, brought, conducted or heard
        by
        or before, or otherwise involving, any Governmental Body or
        arbitrator.

    

    
      
         

      

      
        53

        
          

        

      

      
         

      

       

    

      "Real
        Property"
        means
the
        Land
        and Improvements and all Appurtenances thereto and any Ground Lease
        Property.

    

      "Real
        Property Lease"
        means
any
        Ground Lease or Space Lease.

    

      "Record"
        means
information
        that is inscribed on a tangible medium or that is stored in an electronic
        or
        other medium and is retrievable in perceivable form.

    

      "Related
        Person"
        means,:

    

      (a) with
        respect
        to a particular individual: (i)
        each
        other member of such individual's Family; (ii)
        any
        Person that is directly or indirectly controlled by any one or more members
        of
        such individual's Family; (iii)
        any
        Person in which members of such individual's Family hold (individually or
        in the
        aggregate) a Material Interest; and (iv)
        any
        Person with respect to which one or more members of such individual's Family
        serves as a director, officer, partner, executor or trustee (or in a similar
        capacity);
        and

    

      (b) with
        respect
        to a specified Person other than an individual: (i)
        any
        Person that directly or indirectly controls, is directly or indirectly
        controlled by or is directly or indirectly under common control with such
        specified Person; (ii)
        any
        Person that holds a Material Interest in such specified Person; (iii)
        each
        Person that serves as a director, officer, partner, executor or trustee of
        such
        specified Person (or in a similar capacity); (iv)
        any
        Person in which such specified Person holds a Material Interest; and
        (v)
        any
        Person with respect to which such specified Person serves as a general partner
        or a trustee (or in a similar capacity).

    

    For
      purposes of this definition, (a) "control" (including "controlling," "controlled
      by," and "under common control with") means the possession, direct or indirect,
      of the power to direct or cause the direction of the management and policies
      of
      a Person, whether through the ownership of voting securities, by contract or
      otherwise, and shall be construed as such term is used in the rules promulgated
      under the Securities Act; (b) the "Family" of an individual includes (i) the
      individual, (ii) the individual's spouse, (iii) any other natural person who
      is
      related to the individual or the individual's spouse within the second degree
      and (iv) any other natural person who resides with such individual; and (c)
      "Material Interest" means direct or indirect beneficial ownership (as defined
      in
      Rule 13d-3 under the Exchange Act) of voting securities or other voting
      interests representing at least ten percent (10%) of the outstanding voting
      power of a Person or equity securities or other equity interests representing
      at
      least ten percent (10%) of the outstanding equity securities or equity interests
      in a Person.

    

      "Release"
        means
any
        release, spill, emission, leaking, pumping, pouring, dumping, emptying,
        injection, deposit, disposal, discharge, dispersal, leaching or migration
        on or
        into the Environment or into or out of any property.

    

      "Remedial
        Action"
        means
all
        actions, including any capital expenditures, required or voluntarily undertaken
        (a) to clean up, remove, treat or in any other way address any Hazardous
        Material or other substance; (b) to prevent the Release or Threat of Release
        or
        to minimize the further Release of any Hazardous Material or other substance
        so
        it does not migrate or endanger or threaten to endanger public health or
        welfare
        or the Environment; (c) to perform pre-remedial studies and investigations
        or
        post-remedial monitoring and care; or (d) to bring all Facilities and the
        operations conducted thereon into compliance with Environmental Laws and
        environmental Governmental Authorizations.

    

    
      
         

      

      
        54

        
          

        

      

      
         

      

       

    

      "Representative"
        means
with
        respect to a particular Person, any director, officer, manager, employee,
        agent,
        consultant, advisor, accountant, financial advisor, legal counsel or other
        representative of that Person.

    

      "SEC"
        means
the
        United States Securities and Exchange Commission.

    

      "SEC
        Documents" has the meaning set forth in Section 4.4.

    

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

    

      "Seller"
        has the
        meaning set forth
        in the
        first paragraph of this Agreement.

    

      “Sellers’
        Agent” has
        the
        meaning set forth
        in
        Section 13.16.

    

      "Tangible
        Personal Property"
        means
all
        machinery, equipment, tools, furniture, office equipment, computer hardware,
        supplies, materials, vehicles and other items of tangible personal property
        (other than Inventories) of every kind owned or leased by Company (wherever
        located and whether or not carried on Company's books).

    

      "Tax"
        means
any
        income, gross receipts, license, payroll, employment, excise, severance,
        stamp,
        occupation, premium, property, environmental, windfall profit, customs, vehicle,
        airplane, boat, vessel or other title or registration, capital stock, franchise,
        employees' income withholding, foreign or domestic withholding, social security,
        unemployment, disability, real property, personal property, sales, use,
        transfer, value added, alternative, add-on minimum and other tax, fee,
        assessment, levy, tariff, charge or duty of any kind whatsoever and any
        interest, penalty, addition or additional amount thereon imposed, assessed
        or
        collected by or under the authority of any Governmental Body or payable under
        any tax-sharing agreement or any other Contract.

    

      "Tax
        Return"
        means
any
        return (including any information return), report, statement, schedule, notice,
        form, declaration, claim for refund or other document or information filed
        with
        or submitted to, or required to be filed with or submitted to, any Governmental
        Body in connection with the determination, assessment, collection or payment
        of
        any Tax or in connection with the administration, implementation or enforcement
        of or compliance with any Legal Requirement relating to any
        Tax.

    

      "Third
        Party"
        means
a
        Person
        that is not a party to this Agreement.

    

      "Third-Party
        Claim"
        means
any
        claim
        against any Indemnified Person by a Third Party, whether or not involving
        a
        Proceeding.

    

      "Threat
        of Release"
        means
a
        reasonable likelihood of a Release that may require action in order to prevent
        or mitigate damage to the Environment that may result from such
        Release.

    

    “Trade
      Secret” has the meaning set forth in Section 3.21.

    

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    SCHEDULES

    

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    Schedule
      3.1(a):

    

    Jurisdictions
      of Company

    

    

    1.    Russian
      Federation

    

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    Schedule
      3.1(b):

    

    

    Governing
      Documents of Company

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    Schedule
      3.3(a):

    

    Company’s
      Capitalization

    

    

    100%
      of
      the issued and outstanding shares of the Company are owned in the aggregate
      by
      Sellers

     

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    Schedule
      3.6(a):

    

    Company’s
      Assets

    

    Cargo
      -
      traction motor YÇÌ64220850003629
      Ì
      611 ,
      asset number 1:
      000126

    Cargo
      -
      traction motor YÇÌ64220850003665
      Ì
      670 ,
      asset number 1:
      000117

    Cargo
      -
      traction motor YÇÌ64220850003700
      Ì
      680 ,
      asset number 1:
      000119

    Cargo
      -
      traction motor YÇÌ64220850003718
      Ì
      699 ,
      asset number 1:
      000123

    Cargo
      -
      traction motor YÇÌ64220850003740
      Ì
      684 ,
      asset number 1:
      000122

    Cargo
      -
      traction motor YÇÌ64220850003753
      Ì
      682 ,
      asset number 1:
      000121

    Cargo
      -
      traction motor YÇÌ64220850003840
      Ì
      683 ,
      asset number 1:
      000120

    Cargo
      -
      traction motor YÇÌ64220850003848
      Ì
      671 ,
      asset number 1:
      000111

    Cargo
      -
      traction motor YÇÌ64220850003920
      Ì
      675 ,
      asset number 1:
      000112

    Cargo
      -
      traction motor YÇÌ64220850003925
      Ì
      672 ,
      asset number 1:
      000109

    Cargo
      -
      traction motor YÇÌ64220850003929
      Ì
      681 ,
      asset number 1:
      000115

    Cargo
      -
      traction motor YÇÌ64220850003930
      Ì
      679 ,
      asset number 1:
      000118

    Cargo
      -
      traction motor YÇÌ64220850003933
      Ì
      677 ,
      asset number 1:
      000116

    Cargo
      -
      traction motor YÇÌ64220850003938
      Ì
      673 ,
      asset number 1:
      000110

    Cargo
      -
      traction motor YÇÌ64220850003940
      Ì
      674 ,
      asset number 1:
      000113

    Cargo
      -
      traction motor YÇÌ64220850003941
      Ì
      678 ,
      asset number 1:
      000114

    Cargo
      -
      traction motor YÇÌ64220850003943
      Ì
      613 ,
      asset number 1:
      000127

    Cargo
      -
      traction motor YÇÌ64220850003978
      Ì
      698 ,
      asset number 1:
      000124

    Cargo
      -
      traction motor YÇÌ64220850004014
      Ì
      660 ,
      asset number 1:
      000125

    Cargo
      -
      traction motor YÇÌ64220850004077
      Í
      612 ,
      asset number 1:
      000108

    The
      doorphone with videomonitor KVM - 624 , asset number 1:
      00000012

    The
      capacity 50 m3
      , asset
      number 1:
      000026

    The
      capacity (á/ó)
      60 m3
ì3
      , asset
      number 1:
      000022

    The
      capacity (á/ó)
      60
      m3
      asset
      number 1:
      000023

    The
      capacity (á/ó)
      60
      m3,
      asset
      number 1:
      000024

    The
      capacity (á/ó)
      60
      m3,
      asset
      number 1:
      000025

    The
      capacity (á/ó)
      72
      m3
      , asset
      number1: 000020

    The
      capacity (á/ó)
      72
      m3
      , asset
      number 1:
      000021

    The
      square of ground area 3000,00 m2
      , asset
      number 1:
      000012

    The
      complete of cabinet furniture 11
      ,
asset
      number 1:
      000100

    The
      complete of cabinet furniture 12
      ,
asset
      number 1:
      000101

    The
      complete of cabinet furniture 13
      , asset
      number 1:
      000102

    The
      complete of cabinet furniture 14
      ,
asset
      number 1:
      000103

    The
      complete of cabinet furniture 15
      ,
asset
      number 1:
      000104

    The
      computer
      - package 12 , asset
      number 1:
      000002

    The
      computer
      - package 13 , asset
      number 1:
      000003

    The
      computer
      - package 14 , asset
      number 1:
      000009

    The
      computer
      - package 16 , asset
      number 1:
      000074

    The
      computer
      - package 17 , asset
      number 1:
      000148

    The
      computer
      - package 18 , asset
      number 1:
      000216

    The
      computer
      - package 19 , asset
      number 1:
      000217

    The
      computer
      - package 11 , asset
      number 1:
      000001

     

    
      
         

      

      
        60

        
          

        

      

      
         

      

       

    

    The
      computer
      - package 15 , asset
      number 1:
      00000011

    The
      conference - adaptor (100*118*72) Îðåõ
      210 SN -
      815 , asset number 1:
      000058

    Zerox.
      Canon , asset number 1:
      000225

    The
      chair
      ASTRA OFFICE Batick biack/ 10. P40 , asset number 1:
      000055

    The
      chair
Ê-01
      Como/PL , asset number 1:
      000215

    The
      modem
      D-Link , asset number 1:
      000224

    The
      motor
      pulser ñ ÄÂÑ
      for
      dirty water ÊÒÍ
      50Õ
      , asset
      number 1:
      000072

    The
      pump
      4 ÍÊ-5õ1
      (á/ó)
      , asset
      number 1:
      000027

    The
      pump
      4 ÍÊ-5õ1
      (á/ó)
      , asset
      number 1:
      000028

    The
      notebook computer À2500Í
      , asset
      number 1:
      000051

    The
      shelf
      for book166/25
      ,
asset
      number 1:
      000197

    The
      shelf
      for book166/25
      ,
asset
      number 1:
      000198

    The
      shelf
      for book166/25
      ,
asset
      number 1:
      000199

    The
      semitrailer - tank car X1F96930Í
      5
      0000162 , asset number 1:
      000129

    The
      semitrailer - tank car X1F96930Í
      5
      0000163 , asset number 1:
      000130

    The
      semitrailer - tank car X1F96930Í
      5
      0000164 , asset number 1:
      000131

    The
      semitrailer - tank car X1F96930Í
      5
      0000165 , asset number 1:
      000132

    The
      semitrailer - tank car X1F96930Í
      5
      0000166 , asset number 1:
      000133

    The
      semitrailer - tank car X1F96930Í
      5
      0000167 , asset number 1:
      000134

    The
      semitrailer - tank car X1F96930Í
      5
      0000168 , asset number 1:
      000135

    The
      semitrailer - tank car X1F96930Í
      5
      0000169 , asset number 1:
      000136

    The
      semitrailer - tank car X1F96930Í
      5
      0000171 , asset number 1:
      000137

    The
      semitrailer - tank car X1F96930Í
      5
      0000173 , asset number 1:
      000138

    The
      semitrailer - tank car X1F96930Í
      5
      0000174 , asset number 1:
      000139

    The
      semitrailer - tank car X1F96930Í
      5
      0000175 , asset number 1:
      000140

    The
      semitrailer - tank car X1F96930Í
      5
      0000176 , asset number 1:
      000141

    The
      semitrailer - tank car X1F96930Í
      5
      0000177 , asset number 1:
      000142

    The
      semitrailer - tank car X1F96930Í
      5
      0000178 , asset number 1:
      000143

    The
      semitrailer - tank car X1F96930Í
      5
      0000180 , asset number 1:
      000144

    The
      semitrailer - tank car X1F96930Í
      5
      0000182 , asset number 1:
      000145

    The
      semitrailer - tank car X1F96930Í
      5
      0000183 , asset number 1:
      000128

    The
      semitrailer - tank car X1F96930Í
      5
      0000184 , asset number 1:
      000146

    The
      semitrailer - tank car X1F96930Í
      5
      0000185 , asset number 1:
      000147

    The
      semitrailer ÒÇ-22
      ,
      asset number 1:
      000162

    The
      Fire
      prevention rules, asset number 1:
      000228

    The
      printer ÍÐ
      laser ,
      asset number 1:
      000071

    The
      printer ÍÐ
      laser,
      asset number 1:
      000050

    The
      semitrailer - tank car 96742 , èíâ.1:
      000161

    The
      section Ä-03/10
      ,
      asset number 1:
      000170

    The
      section Ä-03/10
      ,
      asset number 1:
      000171

    The
      section Ä-03/10
      ,
      asset number 1:
      000172

    The
      section Ä-03/10
      ,
      asset number 1:
      000173

    The
      section Ä-03/10
      ,
      asset number 1:
      000174

    The
      petrol supply depot, asset number 1:
      0000015

    The
      core
      rack Ã-01/25
      ,
      asset number 1:
      000203

    The
      table
      (200*90*72) NS Îðåõ
      210
      SN-804/SC , asset number 1:
      000056

     

    
      
         

      

      
        61

        
          

        

      

      
         

      

       

    

    The
      computer table Å-30/25
      ,
      asset number 1:
      000165

    The
      computer table Å-30/25
      ,
      asset number 1:
      000166

    The
      computer table Å-30/25
      ,
      asset number 1:
      000167

    The
      computer table Å-30/25
      ,
      asset number 1:
      000168

    The
      computer table Å-30/25
      ,
      asset number 1:
      000169

    The
      table
      office (250*110*72) NC Îðåõ
      210 SN
      -810 , asset number 1:
      000066

    The
      writing table Å-48/25
      ,
      asset number 1:
      000175

    The
      writing table Å-48/25
      ,
      asset number 1:
      000176

    The
      writing table Å-48/25
      ,
      asset number 1:
      000177

    The
      writing table Å-48/25
      ,
      asset number 1:
      000178

    The
      writing table Å-48/25
      ,
      asset number 1:
      000179

    The
      writing table Å-48/25
      ,
      asset number 1:
      000180

    The
      writing table Å-48/25
      ,
      asset number 1:
      000181

    The
      writing table Å-48/25
      ,
      asset number 1:
      000182

    The
      writing table Å-49/25
      ,
      asset number 1:
      000194

    The
      writing table Å-49/25
      ,
      asset number 1:
      000195

    The
      writing table Å-49/25
      ,
      asset number 1:
      000196

    The
      chair
      ISO (ñ-11)/18êì
      - black
      , asset number 1:
      000204

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000205

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000206

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000207

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000208

    The
      chair
      ISO (ñ-11)/18êì
      - black.
      , asset number 1:
      000209

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000210

    The
      chair
      ISO (ñ-11)/18êì
      - black.
      , asset number 1:
      000211

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000212

    The
      chair
      ISO (ñ-11)/18êì
      - black,
      asset number 1:
      000213

    Phone
      fax
      Panaconik , asset number 1:
      000226

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000183

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000184

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000185

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000186

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000187

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000188

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000189

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000190

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000191

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000192

    The
      pull-out stand Ò-08/25
      ,
      asset number 1:
      000193

    Òhe
      stand
      for zerox.Ò-09/25
      ,
      asset number 1:
      000200

    The
      service stand (125*52*65) Îðåõ
      210 SN -
      818/ MS , asset number 1:
      000059

    Fax
      Panasonik KX-FC962 RU-T , asset number 1:
      000163

    The
      case
      for book Ñ-75/25
      ,
      asset number 1:
      000202

    The
      case
Ñ-71/25
      ,
      asset number 1:
      000201

    The
      element of negotiating table (55*110*72) Îðåõ 210 SN , asset number 1:
      000067

    The
      list
      3.6 (bookkeeper account 08)

     

    
      
         

      

      
        62

        
          

        

      

      
         

      

       

    

    The
      list
      of property of limited liability company " Volga-oil " 

    -
      Building of office symbol K;

    -
      Building of foundry symbol A;

    -
      Building of mechanical shop symbol M;

    -
      Building of shop on repair of water-irrigation technics symbol
      B1;

    -
      The
      ground area of square 3000,0 m2;

    -
      The
      ground area of square 9475,0 m2;

    The
      cage
      for storage of formes;

    The
      vaporous boiler; 

    The
      workshop - warehouse symbol À
      19

    The
      grinding car;

    The
      stove
ÔÒË

    The
      stove
ÔÒË

    The
      stove
ÔÒË

    The
      stove
ÔÒË

    The
      device for definition of humidity of food raw material;

    The
      industrial building symbol
      À

    The
      industrial building symbol
      À
      1

    The
      industrial building symbol
      À
      10

    The
      industrial building symbol
      À
      11

    The
      industrial building symbol
      À
      12

    The
      industrial building symbol
      À
      13

    The
      industrial building symbol
      À
      14

    The
      industrial building symbol
      À
      15

    The
      industrial building symbol
      À
      16

    The
      industrial building symbol
      À
      17

    The
      industrial building symbol
      À
      2

    The
      industrial building symbol
      À
      23

    The
      industrial building symbol
      À
      3

    The
      industrial building symbol
      À
      4

    The
      industrial building symbol
      À
      5

    The
      industrial building symbol
      À
      6

    The
      industrial building symbol
      À
      7

    The
      industrial building symbol
      À
      8

    The
      industrial building symbol
      À
      9

    The
      bolting machine Ï2Ï
      Pioneer;

    The
      guard
      desk symbol À21

    The
      acetylene welding outfit ÄÓÃÀ
      - 318
Ì1
      220
      V

    The
      section Ä-03/10

    The
      warehouse symbol À20

    The
      stand
Ã-01/25

    the
      thermostat

    The
      dough
      dividing machine "Êuzbass"-
      68-2ì

    The
      dough
      dividing machine "Êuzbass"-
      68-2ì

    The
      dough
      dividing machine "Êuzbass"-
      68-2ì

    The
      dividing machine À2
      ÕÒÁ

    The
      dividing machine À2
      ÕÒÁ

    The
      dividing machine À2
      ÕÒÍ

    The
      hander-up À2-
      ÕÏÎ/6

    The
      conveyor

    The
      conveyor

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    

    Schedule
      3.7(a):

    

    Real
      Estate Owned by Company

    

    1.    445551,
      the Samara region, Privolzhsky federal district, village Obsharovka, st. ,
      st.Shors,h.1; 

    

    2.    Tchapaevsk,
      st. Artillery, 1.11 - the square of the ground area being the property, makes
      more than 30.000 m2,
      the
      area of building - garages, covered warehouses, shops and subsidiary
      premises-more than 2.500 m2.

    

    3.    Îbsharovka:
      warehouse of combustive-lubricating materials: the square of building - 33,00
      m2,
      total
      square borrowed under the equipment - 1685,2 m2, the square of the ground area -
      3000,00 m2.

    

    4.    The
      object of the real estate in v.Bogatoye, st. Anniversary, h.3: (i) The building
      of foundry shop,square 1038,4 m2, being to the address of: the Samara region,
      village Bogatoye, st.Anniversary, h. 9, conditional number of object; (ii)
      The
      building of shop on repair of water-irrigation technics, the square 1240,10
      m2;
      (iii) the building of office square 480,80 m2; and (iv) the building of
      mechanical shop, the square 1245,00 m2.

    

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    Schedule
      3.7(b):

    

    Real
      Estate Leased by Company

    

    

    None

     

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    Schedule
      3.8(a):

    

    Encumbrances
      on Real Estate of Company

    

    

    None

     

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    Schedule
      3.13(a):

    

    Unpaid
      Taxes of Company

    

    

    None

     

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    Schedule
      3.13(b):

    

    Company
      Tax Returns and Audits Thereof

    

    1.
      The
      tax declaration under the uniform social tax for the tax bearers making payments
      to physical persons: 

    -3
      months
      2005 year;

    -6
      months
      2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    2.
      The
      tax declaration under the ground tax: 2005

    3.
      The
      declaration on insurance payments on obligatory pension insurance for the
      persons making payments to physical persons:

    -3
      months
      2005 year;

    -6
      months
      2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    4.
      The
      tax declaration under the profit tax of the organizations:

    -
      3
      months 2005 year;

    -6
      months
      2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    5.
      The
      tax declaration under the transport tax:

    -
      6
      months 2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    6.
      The
      tax declaration under the tax to property of the organizations

    -
      3
      months 2005 year;

    -6
      months
      2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    7.
      The
      tax declaration under the tax to the added cost:

    -
      3
      months 2005 year;

    -6
      months
      2005;

    -9
      months
      2005;

    -
      2005;

    -3
      months
      2006;

    -6
      months
      2006.

    8.
      The
      certificate 1
388
      from July,28,.2006
      about absence of not executed duties on payment of taxes, gathering, penalty
      interest and the tax sanctions which are a subject payment according to norms
      of
      the legislation of the Russian Federation.

     

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    

    Schedule
      3.15(a):

    

    Company
      Personnel Matters

    

    1.    Rjabkov
      Igor Fedorovich - the main geologist, passport 36 02 772246 is given out DIA
      of
      Buzenchuk district of Samara region, November, 08,2001 , code 632-023, the
      Diplom of the Samara State technical University, ÁÂÑ 0529328 is given out
      June,20,2001 , 1 97549, qualification: development and operation of oil and gas
      deposits

    

    2.    Mjachin
      Oleg Viktorovich - technical director, passport 36 04 905343, is given out
      DIA,c. Otradnoye the Samara region, May, 11,2004 , code 632-036. The
      Diploma
      of
      Kuibyshev polytechnical institute it Â.Â. Kuibyshev, series ÇÂ 1 659761, number
      64009, it is given out Lune,12,1984 ã, the qualification: technology and complex
      mechanization of development of oil and gas deposits;

    

    3.    Chichaeva
      Zynaida Mihajlovna - the Deputy director on economy and finance,
      September,26,1959, the passport: series 36 05, number 108006, November,02,2004,
      the code of division 732-003 living to the address of is given out DIA Railway
      district: Samara, st. Vladimir, h.41,fl.7;

    

    4.    Antonova
      Nina
      Afanasevna - the chief accountantð-the passport of a series 36 01 1 859727, is
      given out to the Department of Internal Affairs of the Kirov êregion. The Samara
      on January, 23, 2002 ã, is registered to the address of: Samara, street Yenisei,
      h.58, fl.
      56;

    

    5.    Moiseyev
      Tatyana Viktorovna - the chief legal adviser June,28,1960, the passport of
      series 36 04 1 641400, is given out Industrial DIA
      of
      Samara on December, 26th 2003 ã, is registered to the address of: Samara, street
      Sports h.96,fl.33.

    

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    Schedule
      3.16(b):

    

    Company
      Governmental Authorizations

    

    

    Work
      on
      reception of the license for planned kind of activity " on storage of oil,
      gas
      and products of their processing " which has been received in the Ministry
      of
      power of the Russian Federation from 10.08.2004,the form
1
Ö
      0006899, registration number 30026700, an INN 6312054806 was in parallel
      conducted.

     

    
      	 	
              ·

            	
              The
                Sanitary-and-epidemiologic conclusion 1 1314873 state
                sanitary-and-epidemiologic services of Russian Federation " The
                Kuibyshev road center of the state sanitary-and-epidemiologic supervision
                " 63.ÆÄ.03.027.Ï.000717.03.05
                from 04.03.2005 on condensate gas
                unstable;

            

    

    
      	 	
              ·

            	
              The
                Sanitary-and-epidemiologic conclusion 1 431904 state
                sanitary-and-epidemiologic services of Russian Federation " The Kuibyshev
                road center of the state sanitary-and-epidemiologic supervision "
                63.ÆÄ.03.027.Ò.000021.03.05
                from 04.03.2005 on condensate gas astable. The technical
                conditions;

            

    

    
      	 	
              ·

            	
              The
                Certificate of conformity on condensate gas unstable1
                ÐÎÑÑ
                RU.ÀÅ56.Í04018
                for the term of from 21.03.2005 on
                20.03.2008;

            

    

    
      	 	
              ·

            	
              The
                Contract of insurance of civil liability caused by destructions or
                damages
                ÎÏÎ
                1 ÃÎÏ-06/63-000/1361/152(ÂÍ)-06
                from 23.12.2006 ã on 2.000.000 roubles

            

    

     

    Is
      concluded.;

     

    
      	 	
              ·

            	
              The
                License for operation of the explosive industrial objects, given
                out
                by Federal service on ecological, technological and nuclear supervision
                for 1 ÝÂ-53-001603
                (ÆÍ)
                from 26.02.2006 for the term of till 26.12.2010æ

            

    

    
      	 	
              ·

            	
              The
                Certificate on registration of two divisions (namely, a site of
                transportation of dangerous substances and
                a platform of a tank farm on storage and ïåðåâàëêå oil and mineral oil)
                object " the Warehouse of the PETROLEUM PRODUCTS in v.
                Îbsharovka
                " in the State Register of dangerous industrial objects - -1 À
                53-02889, given out till
                15.02.2011;

            

    

    
      	 	
              ·

            	
              The
                Registration number appropriated by LLC «ÖÅËÝÊÑ»
                of LLC " Volga-Oil " 1 1
                53-ÈÄ-02424-2006
                on the basis of the Judgement of industrial safety of documents,
                explosive
                objects of Îbsharovka
                of
                warehouse of the PETROLEUM PRODUCTS of a society regulating safe
                operation
                with limited liability "Volga-oil" - registration number
                07-06;

            

    

    

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    Schedule
      3.18(a):

    

    Company
      Contracts

    

    

    None

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    Schedule
      3.18I:

    

    Enforceability
      of Company Contracts

    

    

    None

     

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    Schedule
      3.18(d):

    

    Compliance
      with Company Contracts

    

    

    None

     

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    Schedule
      3.19(a):

    

    Company
      Insurance Policies

    

    

    1.
      LLC "
      Insurance company " Svytogor " - insurance of a civil liability of the
      organizations maintaining dangerous industrial objects, for causing of harm
      of a
      life, to health or property of the third parties and a surrounding environment
      as a result of failure on dangerous industrial object - an insurance policy
1
ÃÎÏ-05/63-000/1361.

    

    2.
      The
      joint-stock companyGSK " Ugoria " - obligatory insurance of a civil liability
      of
      owners of vehicles:

     

    
      	 	
              ·

            	
              ÀÀÀ
                0269416347

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416346

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416345

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416343

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416344

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416342

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418399

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418400

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418392

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418393

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418386

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418388

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418387

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418389

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418385

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0238533606

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416380

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909063

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909065

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909064

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416348

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416349

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416352

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416353

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416351

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416350

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418394

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418395

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418391

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418390

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269416341

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418397

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418398

            

    

    
    

     

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

     

    
      	 	
              ·

            	
              ÀÀÀ
                0269418396

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418383

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418384

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0269418379

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909066

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909067

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909068

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941087

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941079

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941086

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941080

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941088

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941078

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941090

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941082

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941090

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941081

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941089

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272942360

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941095

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272942361

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909077

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941093

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909073

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272942356

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909074

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272942358

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909075

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272941094

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272909076

            

    

    
      	 	
              ·

            	
              ÀÀÀ
                0272942357

            

    

     

    3.
      LLC "
      Insurance company " FJORD " - voluntary insurance of means of ground transport
      (damage, loss)
      - the
      contract 122-Ä4-2/79(ÂÍ)-05
      from 21.09.05 - insurance policies 1 1-40.

    

    4.
      LLC
      "
      Insurance company " FJORD " - voluntary medical insurances of citizens
      (employees of firm) - the contract 1 21-Ä14-2/108(ÂÍ)-05
      from
      24.10.05.

    

    The
      society has a motor-vehicle pool of special equipment for transportation of
      combustible and explosive cargoes in quantity of 40 units: models Urals
      Mountains, ÌAZ,
      PPC
      Nefaz.

     

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    Schedule
      3.19(b):

    

    Third
      Party Obligations of Company to Provide Insurance Coverage

    

    

    None

     

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

    Schedule
      3.20:

    

    Company
      Environmental Liabilities

    

    

    None

     

    
      
         

      

      
        77

        
          

        

      

      
         

      

    

    Schedule
      3.21(b):

    

    Company
      Intellectual Property Matters

    

    

    None

     

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

    Schedule
      3.21I:

    

    Intellectual
      Property Licenses

    

    

    None

     

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

    Schedule
      3.21(e):

    

    Company
      Patents

    

    

    None

     

    
      
         

      

      
        80

        
          

        

      

      
         

      

    

    Schedule
      3.21(h):

    

    Company
      Marks

    

    

    None

     

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

    Schedule
      3.21(i):

    

    Company
      Copyrights

    

    

    None

     

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

    Schedule
      3.21(k):

    

    Company
      Net Names

    

    

    www.starvolga.net

    

    www.star-volga.net

    

    
      
         

      

      
        83

        
          

        

      

      
         

      

    

    Schedule
      3.22:

    

    Company
      Related Persons

    

    

    None

     

    
      
         

      

      
        84

        
          

        

      

      
         

      

    

    Schedule
      3.23:

    

    Company
      Brokers

    

    

    None

     

    
      
         

      

      
        85

        
          

        

      

      
         

      

    

    Schedule
      3.24:

    

    Company
      Securities Law Matters

    

    

    None

     

    
      
         

      

      
        86

        
          

        

      

      
         

      

    

    Schedule
      4.3(a):

    

    Buyer’s
      Capitalization

    

    Authorized
      Capital Stock: 225,000,000 shares of common stock, par value $0.001; 5,000,000
      shares of preferred stock, par value $0.001.

    

    Total
      Number of Issued and Outstanding Shares: 28,312,000 shares of common stock;
      no
      shares of preferred stock

    

    
      
         

      

      
        87

        
          

        

      

      
         

      

    

    Schedule
      4.7:

    

    Buyer
      Brokers

    

    

    None

     

    
      
         

      

      
        88

        
          

        

      

      
         

      

    

    Schedule
      7.3:

    

    Company
      Material Consents

    

    

    None

     

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    Schedule
      8.3:

    

    Buyer
      Material Consents

    

    

    None

     

    
      
         

      

      
        90AGREEMENT

    

      This
        Agreement (this “Agreement”) is made as of the 6th day of October, 2006, among
        Star Energy Corporation, a Nevada corporation ("Star"), IAB Island Ventures
        SA,
        a company incorporated in the Republic of Panama (“IAB”), and Volga-Neft Limited
        Company, a society with limited liability organized under the
        laws
        of
        the Russian Federation (the “Company”).

    

    RECITALS

    

    WHEREAS,
      Star is consummating a transaction with the Company whereby the Company will
      become a wholly-owned subsidiary of Star; and 

    

    WHEREAS,
      the parties desire to enter into this Agreement setting forth certain rights
      of
      IAB upon consummation of the aforementioned transaction; 

    

    NOW,
      THEREFORE, in consideration of the introduction made by IAB between the Company
      and Star and other good and valuable consideration, the adequacy of which is
      hereby affirmed, the parties hereby agree as follows:

    

    
      	
            	1.	
              Effectiveness. 
                This Agreement shall be effective upon the consummation of the
                transactions contemplated by the Stock Purchase Agreement (the “Closing”)
                among Star, the Company and the stockholders
                thereof.

            

    

    

    
      	 	
              2.

            	
              Board
                Representation.
                

            

    

    

    
      	 	
              a.

            	
              Both
                the Company and Star agree that for 12 months after the Closing,
                neither
                company shall have more than 5 individuals on the Board of Directors
                of
                each respective company. For 12 months after the Closing, IAB shall
                have
                the right to appoint 2 nominees to the Board of Directors of each
                of the
                Company and Star. Each of the Company and Star agree to take all
                actions
                power necessary or desirable (including, without limitation, calling
                special board and stockholder meetings), to
                ensure the election to the Board of the 2 candidates nominated by
                IAB to
                each of the Company and Star (all such actions being “Necessary
                Action”).
                Such candidate may be removed at the request of IAB, and each of
                the
                Company and Star shall take all Necessary Action to facilitate such
                removal at the request of IAB.

            

    

    

    
      	 	
              b.

            	
              In
                the event that any vacancy is created on the Board by reason of the
                death,
                resignation or removal of any director designated by IAB, IAB shall
                take
                all Necessary Action to fill such vacancy with a substitute director
                designated by IAB.

            

    

    

    
      	 	
              3.

            	
              IAB
                Approval.
                Neither the Company nor Star shall, without the prior written consent
                of
                IAB (which consent shall not be unreasonably withheld) declare or
                pay out
                any dividend or make any distribution on any equity securities of
                either
                company, as the case may be, or purchase, redeem (by direct payment,
                sinking fund or otherwise) or otherwise acquire or retire for value
                any
                equity securities, or issue any equity securities or other securities
                of
                either company, including without limitation, any options, warrants,
                convertible debentures, agreements, or other rights for the acquisition
                of
                shares of such company's capital stock, securities or other obligations
                which are convertible into shares of either the Company's or Star’s
                capital stock.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.

            	
              IAB
                Compensation.
                The Company and Star each acknowledge that IAB will introduce them
                to
                certain of its contacts (collectively, "Contacts") for the purpose
                of
                financing either the Company or Star. Each of the Company and Star
                agree
                that without the prior written consent of IAB, it shall not directly
                or
                indirectly conduct any business discussions with any Contact or any
                representative thereof or any person or entity introduced to the
                Company,
                Star or any of its officers, directors, employees, stockholders,
                agents or
                representatives by a Contact or any of his representatives. In addition,
                once discussions have been held, the Company nor Star, as the case
                may be,
                shall not attempt to circumvent or negotiate directly or indirectly
                with a
                Contact for the purpose of excluding Consultant and depriving Consultant
                of the fee described below. 

            

    

    

    If
      there
      is no Closing, the abovementioned provision shall be effective for 1 year
      following the notice from either Star or the Company, as the case may be, to
      either Star or the Company, as the case may be, that there shall be no Closing.
      

    

    For
      providing services as set forth herein, at the closing of any financing the
      Company and Star shall pay IAB 10% of the aggregate value of the transaction
      consummated with one of the Contacts or a person or group introduced by a
      Contact. The value of the transaction shall be equal to the gross cash proceeds
      plus the fair market value of any securities or other property received or
      to be
      received in the transaction. For purposes of computing the value of a
      transaction, any amounts payable in installments shall be deemed paid in full
      at
      the consummation of the transaction. IAB shall be entitled to the fees
      enumerated herein if, within two years after the termination of this Agreement,
      any transaction is consummated with any person or group of persons or any
      affiliate of any such persons or their affiliates which are identified to either
      Star or the Company or its respective officers, directors, stockholders or
      representatives by IAB. 

    

    
      	 	
              5.

            	
              Amendment;
                Waiver.
                The provisions of this Agreement may not be amended, modified or
                waived,
                except by a written instrument executed by IAB. No failure on the
                part of
                any party to exercise any right, power or privilege granted hereunder
                shall operate as a 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 granted hereunder.
                

            

    

    
    

     

    
      	 	
              6.

            	
              General
                Provisions.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              a.

            	
              All
                of the covenants and agreements contained in this Agreement shall
                be
                binding upon, and inure to the benefit of, the respective parties
                and
                their successors, assigns, heirs, executors, administrators and other
                legal representatives, as the case may
                be.

            

    

    
    

     

    
      	 	
              b.

            	
              This
                Agreement, and the rights of the parties hereto, shall be governed
                by and
                construed in accordance with the laws of the State of New York applicable
                to a contract made and to be performed in New
                York.

            

    

    
    

     

    
      	 	
              c.

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

            

    

    
    

     

    
      	 	
              d.

            	
              All
                communications, notices, requests, consents or demands given or required
                under this Agreement shall be in writing and shall be deemed to have
                been
                duly given when delivered to, or received by prepaid registered or
                certified mail or recognized overnight courier addressed to, or upon
                receipt of a facsimile sent to, the party for whom intended, as follows,
                or to such other address or facsimile number as may be furnished
                by such
                party by notice in the manner provided
                herein:

            

    

     

    If
      to
      Company:

     

    If
      to
      Star:

     

    
      	
            	If
              to IAB:	
              IAB
                Island Ventures SA

            

    

    PO
      Box
      1290

    Zone
      9A

    Panama
      City, Republic of Panama

    Facsimile:
      011-507-263-9810

    

    
      	 	
              e.

            	
              If
                any provision of this Agreement shall be declared void or unenforceable
                by
                any court or administrative board of competent jurisdiction, such
                provision shall be deemed to have been severed from the remainder
                of the
                Agreement, and this Agreement shall continue in all respects to be
                valid
                and enforceable.

            

    

    

    [Signature
      page follows]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

    
      	 	 	 
	 	BUYER:
	 	 
	 	STAR ENERGY CORPORATION 
	 
 	 
 	 
 
	 	By:  	/s/
              Marcus
              Segal
	 	Name:  Marcus
              Segal 
	 	Title:  Chief
              Executive Office 

    

     

    
      	 	 	 
	 	VOLGA-NEFT
              LIMITED
              COMPANY
	 
 	 
 	 
 
	 	By:  	/s/
              Armenak A.
              Safarov
	 	Name:  Armenak
              A. Safarov 
	 	Title:  Attorney-in-fact
              under the Power of Attorney dated July 31,
              2006

    

     

    
      	 	 	 
	 	IAB
              ISLAND
              VENTURES SA
	 
 	 
 	 
 
	 	By:  	/s/
              Margot Hutchinson
	 	Name:___________________ 
	 	Title:____________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]