Document:

Exhibit 10.2

                           SIBERIAN ENERGY GROUP, INC.

                                WARRANT AGREEMENT
                                -----------------

                                                     Date:  September  14,  2006

To  Whom  It  May  Concern:

SIBERIAN  ENERGY  GROUP,  INC. ("Company"), for value received, hereby agrees to
issue  common  stock  purchase warrants entitling KEY BROKERAGE, INC. ("Holder")
and  its  assigns  to  purchase  an aggregate of 250,000 shares of the Company's
common  stock  ("Common  Stock").  Such  warrant  is  evidenced  by  a  warrant
certificate  in  the  form  attached hereto as Schedule 1 (such instrument being
hereinafter  referred  to  as  a "Warrant," and such Warrant and all instruments
hereafter  issued  in  replacement,  substitution,  combination  or  subdivision
thereof  being  hereinafter  collectively  referred  to  as  the "Warrant"). The
Warrant  is  issued in consideration for entering into the Option agreement with
the  Company  for the purchase of 75% of the share capital of Kondaneftegaz. The
number  of  shares  of  Common Stock purchasable upon exercise of the Warrant is
subject  to  adjustment  as  provided  in  Section 5 below.  The Warrant will be
exercisable  by  the  Warrant Holder as to all or any lesser number of shares of
Common  Stock  covered  thereby, at an initial purchase price of $2.20 per share
(the  "Purchase  Price"),  subject to adjustment as provided in Section 5 below,
for  the  exercise  period  defined  in  Section  3(a) below.  The term "Warrant
Holder"  refers  to  the person whose name appears on the signature page of this
Warrant  Agreement and any transferee or transferees of any of them permitted by
Section  2(a)  below.

     1.   REPRESENTATIONS  AND  WARRANTIES.
          --------------------------------

          The  Company  represents  and  warrants  to  you  as  follows:

          (a)  CORPORATE  AND  OTHER  ACTION.  The  Company  has  all  requisite
               -----------------------------
               power  and  authority  (corporate  and  other), and has taken all
               necessary  corporate  action,  to authorize, execute, deliver and
               perform  this  Warrant  Agreement,  to  execute,  issue, sell and
               deliver  the Warrant and a certificate or certificates evidencing
               the Warrant, to authorize and reserve for issue and, upon payment
               from  time  to  time  of  the  Purchase Price, to issue, sell and
               deliver, the shares of the Common Stock issuable upon exercise of
               the  Warrant  ("Shares"),  and  to perform all of its obligations
               under  this  Warrant  Agreement and the Warrant. The Shares, when
               issued  in  accordance  with this Warrant Agreement, will be duly
               authorized  and  validly  issued  and outstanding, fully paid and
               nonassessable  and  free  of  all liens, claims, encumbrances and
               preemptive  rights. This Warrant Agreement and, when issued, each
               Warrant issued pursuant hereto, has been or will be duly executed
               and delivered by the Company and is or will be a legal, valid and
               binding  agreement of the Company, enforceable in accordance with
               its  terms. No authorization, approval, consent or other order of
               any  governmental  entity,  regulatory  authority  or other third
               party  is  required  for such authorization, execution, delivery,
               performance,  issue  or  sale.

          (b)  NO VIOLATION.  The  execution  and  delivery  of  this  Warrant
               ------------
               Agreement,  the  consummation  of  the  transactions  herein
               contemplated  and the compliance with the terms and provisions of
               this Warrant Agreement and of the Warrant will not conflict with,
               or  result  in  a  breach of, or constitute a default or an event
               permitting  acceleration  under,  any  statute,  the  articles of
               incorporation,  as  amended,  or  bylaws  of  the  Company or any
               indenture,  mortgage,  deed  of  trust,  note,  bank loan, credit
               agreement,  franchise,  license,  lease,  permit,  or  any  other
               agreement,  understanding,  instrument,  judgment, decree, order,
               statute, rule or regulation to which the Company is a party or by
               which  it  is  bound.

<PAGE>

     2.   TRANSFER.
          --------

          (a)  TRANSFERABILITY  OF  WARRANT.  You  agree  that  the  Warrant  is
               ----------------------------
               being  acquired  as  an  investment  and  not  with  a  view  to
               distribution thereof and that the Warrant may not be transferred,
               sold,  assigned  or  hypothecated  except as provided herein. The
               Holder agrees that the Warrant may only be transferred by will or
               by the laws of descent and distribution or for the benefit of one
               or  more  of  the  following  members  of  the Holder's immediate
               family:  any  child,  stepchild,  grandchild, parent, stepparent,
               grandparent,  spouse,  sibling,  mother-in-law,  father-in-law,
               son-in-law,  daughter-in-law,  brother-in-law  or  sister-in-law
               (including, without limitation, to a trust for the benefit of the
               Holder  and/or  one  or  more  of  the  foregoing  members of the
               Holder's  immediate  family  or  a  corporation,  partnership  or
               limited  liability  company  established  and  controlled  by the
               Holder  and/or  one  or  more  of  the  foregoing  members of the
               Holder's  immediate  family).  You  further  acknowledge that the
               Warrant  may  not  be transferred, sold, assigned or hypothecated
               unless  pursuant  to  a  registration  statement  that has become
               effective  under  the  Securities  Act  of  1933, as amended (the
               "Act"),  setting  forth  the  terms  of  such  offering and other
               pertinent  data with respect thereto, or unless you have provided
               the  Company  with  an acceptable opinion from acceptable counsel
               that such registration is not required. Certificates representing
               the Warrant shall bear an appropriate legend. Notwithstanding the
               foregoing,  any  request  to  transfer  the  Warrant  must  be
               accompanied  by  the  Form  of  Assignment  and Transfer attached
               hereto  as  Schedule  2  executed  by  the  Warrant  Holder.

          (b)  REGISTRATION  OF  SHARES.  You  agree  not  to  make  any sale or
               ------------------------
               other disposition of the Shares except pursuant to a registration
               statement which has become effective under the Act, setting forth
               the  terms  of  such  offering,  the  underwriting  discount  and
               commissions  and  any  other pertinent data with respect thereto,
               unless  you  have provided the Company with an acceptable opinion
               of  counsel  acceptable  to the Company that such registration is
               not required. Certificates representing the Shares, which are not
               registered  as  provided  in  this  Section  2,  shall  bear  an
               appropriate  legend  and  be  subject to a "stop-transfer" order.

          (c)  NO REGISTRATION  RIGHTS.  You  hereby  acknowledge  that  you  do
               -----------------------
               not  have  any  rights  to  require  the  Company to register the
               Warrant  or  the Shares under the Act or the laws of any State or
               other  jurisdiction,  and  you  do not have the right to have the
               Warrant  or  the  Shares  included in any registration under such
               laws  that  the  Company  is  undertaking or may undertake in the
               future.

     3.   EXERCISE  OF  WARRANT,  PARTIAL  EXERCISE.
          -----------------------------------------

          (a)  EXERCISE  PERIOD.  This  Warrant  shall  expire  and  all  rights
               ----------------
               hereunder shall be extinguished two (2) years from the date first
               set  forth  above.

          (b)  EXERCISE  IN  FULL.  Subject  to  Section  3(a), a Warrant may be
               ------------------
               exercised  in  full  by  the  Warrant  Holder by surrender of the
               Warrant,  with  the  Form  of  Subscription  attached  hereto  as
               Schedule  3  executed  by such Warrant Holder, to the Company c/o
               David  M.  Loev, Attorney at Law, 2777 Allen Parkway, Suite 1000,
               Houston,  Texas,  77019,  accompanied by payment as determined by
               3(d)  below,  in the amount obtained by multiplying the number of
               Shares  represented  by  the  respective  Warrant by the Purchase
               Price  per  share  (after  giving  effect  to  any adjustments as
               provided  in  Section  5  below).

<PAGE>

          (c)  PARTIAL  EXERCISE.  Subject  to  Section  3(a),  each Warrant may
               -----------------
               be  exercised  in  part by the Warrant Holder by surrender of the
               Warrant,  with  the  Form  of  Subscription  attached  hereto  as
               Schedule  3  at  the  end  thereof  duly executed by such Warrant
               Holder,  in  the manner and at the place provided in Section 3(b)
               above,  accompanied  by  payment  as determined by 3(d) below, in
               amount obtained by multiplying the number of Shares designated by
               the Warrant Holder in the Form of Subscription attached hereto as
               Schedule  3 to the Warrant by the Purchase Price per share (after
               giving effect to any adjustments as provided in Section 5 below).
               Upon  any  such partial exercise, the Company at its expense will
               forthwith  issue  and deliver to or upon the order of the Warrant
               Holder  a  new  Warrant of like tenor, in the name of the Warrant
               Holder  subject to Section 2(a), calling in the aggregate for the
               purchase  of  the  number  of  Shares equal to the number of such
               Shares  called  for  on the face of the respective Warrant (after
               giving  effect  to any adjustment herein as provided in Section 5
               below)  minus the number of such Shares designated by the Warrant
               Holder  in  the  aforementioned  form  of  subscription.

          (d)  PAYMENT  OF  PURCHASE  PRICE.  Payment  of the Purchase Price may
               ----------------------------
               be  made by any of the following or a combination thereof, at the
               election  of  the  Warrant  Holder:

               (i)  In cash,  by  wire  transfer,  by  certified  or  cashier's
                    check,  or  by  money  order;  or

               (ii) By delivery  to  the  Company  of  an  exercise  notice that
                    requests the Company to issue to the Warrant Holder the full
                    number  of  shares  as  to  which  the  Warrant  is  then
                    exercisable,  less  the  number  of  shares  that  have  an
                    aggregate  Fair  Market Value at the time of exercise, equal
                    to  the aggregate Purchase Price of the Shares to which such
                    exercise  relates.  (This  method  of  exercise  allows  the
                    Warrant  Holder  to  use a portion of the Shares issuable at
                    the  time of exercise as payment for the Shares to which the
                    Warrant  relates  and  is  often  referred to as a "cashless
                    exercise."  For  example,  if  the  Warrant Holder elects to
                    exercise  1,000  Shares at an exercise price of $0.30 (or an
                    aggregate  Purchase  Price  of $300.00) and the current Fair
                    Market Value of the shares on the date of exercise is $0.60,
                    the  Warrant Holder can use 500 of the 1,000 shares at $0.60
                    per  share  to  pay  for the exercise of such portion of the
                    Warrant  (500  x  $0.60  =  $300.00)  and  receive  only the
                    remaining  500  shares.)

          For  purposes  of  this  section,  "  Fair  Market  Value"  shall  be
          defined  as  the  average closing price of the Common Stock (if actual
          sales  price  information  on  any  trading  day is not available, the
          closing  bid  price shall be used) for the five (5) trading days prior
          to  the  date  of  exercise  of this Warrant (the "Average Closing Bid
          Price"), as reported by the National Association of Securities Dealers
          Automated  Quotation  System ("NASDAQ"), or if the Common Stock is not
          traded  on  NASDAQ,  the  Average  Closing  Bid  Price  in  the
          over-the-counter  market;  provided, however, that if the Common Stock
          is  listed  on  a  stock  exchange, the Fair Market Value shall be the
          Average  Closing  Bid  Price  on such exchange; and, provided further,
          that  if the Common Stock is not quoted or listed by any organization,
          the  fair  value  of  the  Common Stock, as determined by the Board of
          Directors  of  the  Company,  whose determination shall be conclusive,
          shall be used. In no event shall the Fair Market Value of any share of
          Common  Stock  be  less  than  its  par  value.

     4.   DELIVERY  OF  STOCK  CERTIFICATES  ON  EXERCISE.
          -----------------------------------------------

          Any  exercise  of  the  Warrant  pursuant to Section 3 shall be deemed
          to  have  been  effected immediately prior to the close of business on
          the  date  on which the Warrant together with the Form of Subscription
          and  the  payment  for  the  aggregate  Purchase Price shall have been
          received  by the Company. At such time, the person or persons in whose
          name  or names any certificate or certificates representing the Shares
          or  Other  Securities  (as  defined below) shall be issuable upon such
          exercise  shall  be  deemed  to  have  become the holder or holders of
          record  of  the  Shares  or  Other Securities so purchased. As soon as
          practicable  after the exercise of any Warrant in full or in part, and
          in  any event within the (10) business days thereafter, the Company at
          its  expense  (including  the  payment  by  it of any applicable issue
          taxes)  will  cause  to be issued in the name of, and delivered to the
          purchasing  Warrant Holder, a certificate or certificates representing
          the  number  of fully paid and nonassessable shares of Common Stock or
          Other  Securities  to which such Warrant Holder shall be entitled upon
          such  exercise,  plus  in  lieu  of any fractional share to which such
          Warrant  Holder  would  otherwise  be  entitled,  cash  in  an  amount
          determined  pursuant  to  Section  6(e).  The  term "Other Securities"
          refers  to  any  stock  (other than Common Stock), other securities or
          assets  (including cash) of the Company or any other person (corporate
          or  otherwise)  which the Warrant Holder at any time shall be entitled
          to  receive, or shall have received, upon the exercise of the Warrant,
          in  lieu of or in addition to Common Stock, or which at any time shall
          be  issuable  or  shall  have  been  issued  in  exchange  for  or  in
          replacement  of Common Stock or Other Securities pursuant to Section 5
          below  or  otherwise.

     5.   ADJUSTMENT  OF  PURCHASE  PRICE  AND  NUMBER  OF  SHARES  PURCHASABLE.
          ---------------------------------------------------------------------

          The  Purchase  Price  and  the  number  of  Shares  are  subject  to
          adjustment  from  time  to  time  as  set  forth  in  this  Section 5.

<PAGE>

          (a)  In case  the  Company  shall  at  any time after the date of this
               Warrant  Agreement  (i) declare a dividend on the Common Stock in
               shares  of  its  capital  stock,  (ii)  subdivide the outstanding
               Common  Stock,  (iii) combine the outstanding Common Stock into a
               smaller  number  of Common Stock, or (iv) issue any shares of its
               capital  stock by reclassification of the Common Stock (including
               any  such  reclassification in connection with a consolidation or
               merger  in which the Company is the continuing corporation), then
               in  each  case  the  Purchase  Price,  and the number and kind of
               Shares  receivable  upon  exercise,  in effect at the time of the
               record  date  for  such dividend or of the effective date of such
               subdivision,  combination,  or  reclassification  shall  be
               proportionately  adjusted  so  that  the  holder  of  any Warrant
               exercised  after  such  time  shall  be  entitled  to receive the
               aggregate  number  and  kind of Shares which, if such Warrant had
               been  exercised  immediately  prior to such record date, he would
               have  owned  upon  such  exercise and been entitled to receive by
               virtue  of  such  dividend,  subdivision,  combination,  or
               reclassification.  Such  adjustment  shall  be  made successively
               whenever  any  event  listed  above  shall  occur.

          (b)  No adjustment  in  the  Purchase  Price  shall  be  required  if
               such  adjustment  is  less than $.05; provided, however, that any
               adjustments  which  by  reason  of  this  subsection  (b) are not
               required  to  be  made  shall  be  carried forward and taken into
               account in any subsequent adjustment. All calculations under this
               Section  5  shall  be  made to the nearest cent or to the nearest
               one-thousandth  of  a  share,  as  the  case  may  be.

          (c)  Upon each  adjustment  of  the  Purchase  Price  as  a  result of
               the  calculations  made  in subsection (a) of this Section 5, the
               Warrant  outstanding prior to the making of the adjustment in the
               Purchase  Price  shall thereafter evidence the right to purchase,
               at the adjusted Purchase Price, that number of Shares (calculated
               to the nearest thousandth) obtained by (i) multiplying the number
               of  Shares  purchasable  upon exercise of the Warrant immediately
               prior to adjustment of the number of Shares by the Purchase Price
               in  effect  prior  to  adjustment  of the Purchase Price and (ii)
               dividing  the product so obtained by the Purchase Price in effect
               immediately  after  such  adjustment  of  the  Purchase  Price.

     6.   FURTHER  COVENANTS  OF  THE  COMPANY.
          ------------------------------------

          (a)  DILUTION  OR  IMPAIRMENTS.  The  Company  will  not, by amendment
               -------------------------
               of  its  articles of incorporation or through any reorganization,
               transfer  of  assets, consolidation, merger or dissolution, avoid
               or  seek  to  avoid  the  observance or performance of any of the
               terms  of  the  Warrant or of this Warrant Agreement, but will at
               all  times  in  good faith assist in the carrying out of all such
               terms and in the taking of all such action as may be necessary or
               appropriate  in order to protect the rights of the Warrant Holder
               against  dilution  or  other  impairment.  Without  limiting  the
               generality  of  the  foregoing,  the  Company:

               (i)  shall at  all  times  reserve  and  keep  available,  solely
                    for  issuance and delivery upon the exercise of the Warrant,
                    all  shares  of Common Stock (or Other Securities) from time
                    to  time issuable upon the exercise of the Warrant and shall
                    take  all necessary actions to ensure that the par value per
                    share,  if any, of the Common Stock (or Other Securities) is
                    at  all  times  equal  to  or  less  than the then effective
                    Purchase  Price  per  share;  and

               (ii) will take  all  such  action  as  may  be  necessary  or
                    appropriate  in  order  that  the  Company  may  validly and
                    legally  issue fully paid and nonassessable shares of Common
                    Stock  or  Other Securities upon the exercise of the Warrant
                    from  time  to  time  outstanding.

          (b)  TITLE TO  STOCK.  All  Shares  delivered  upon  the  exercise  of
               ---------------
               the  Warrant  shall  be  validly  issued,  fully  paid  and
               nonassessable;  each  Warrant  Holder  shall, upon such delivery,
               receive  good  and marketable title to the Shares, free and clear
               of  all voting and other trust arrangements, liens, encumbrances,
               equities  and  claims whatsoever; and the Company shall have paid
               all  taxes,  if  any,  in  respect  of  the  issuance  thereof.

          (c)  EXCHANGE  OF  WARRANT.  Subject  to  Section  2(a)  hereof,  upon
               ---------------------
               surrender for exchange of any Warrant to the Company, the Company
               at  its  expense  will  promptly issue and deliver to or upon the
               order  of  the holder thereof a new Warrant or like tenor, in the
               name  of  such  holder  or  as  such holder (upon payment by such
               Warrant  holder  of  any  applicable  transfer taxes) may direct,

<PAGE>

               calling in the aggregate for the purchase of the number of Shares
               called  for  on  the face of the Warrant surrendered. The Warrant
               and  all  rights  thereunder are transferable in whole or in part
               upon  the  books of the Company by the registered holder thereof,
               subject  to  the provisions of Section 2(a), in person or by duly
               authorized  attorney,  upon  surrender  of  the  Warrant,  duly
               endorsed,  at  the  principal  office  of  the  Company.

          (d)  REPLACEMENT  OF  WARRANT.  Upon  receipt  of  evidence reasonably
               ------------------------
               satisfactory  to  the  Company of the loss, theft, destruction or
               mutilation  of  any  Warrant  and,  in the case of any such loss,
               theft  or  destruction,  upon  delivery of an indemnity agreement
               reasonably  satisfactory in form and amount to the Company or, in
               the  case of any such mutilation, upon surrender and cancellation
               of  such  Warrant,  the  Company,  at  the expense of the Warrant
               Holder,  will execute and deliver, in lieu thereof, a new Warrant
               of  like  tenor.

          (e)  FRACTIONAL  SHARES.  No  fractional  Shares  are  to  be  issued
               ------------------
               upon the exercise of any Warrant, but the Company shall round any
               fraction  of  a  share  to  the  nearest  whole  Share.

     7.   OTHER  WARRANT  HOLDERS:  HOLDERS  OF  SHARES.
          ---------------------------------------------

          The  Warrant  is  issued  upon  the  following  terms, to all of which
          each Warrant Holder by the taking thereof consents and agrees: (a) any
          person  who  shall  become  a  transferee,  within  the limitations on
          transfer  imposed  by  Section  2(a)  hereof,  of  a  Warrant properly
          endorsed  shall take such Warrant subject to the provisions of Section
          2(a)  hereof  and  thereupon shall be authorized to represent himself,
          herself  or  itself  as  absolute  owner  thereof  and, subject to the
          restrictions  contained  in this Warrant Agreement, shall be empowered
          to  transfer  absolute  title by endorsement and delivery thereof to a
          permitted  bona  fide  purchaser  for  value; (b) any person who shall
          become  a  holder or owner of Shares shall take such shares subject to
          the  provisions  of Section 2(b) hereof; (c) each prior taker or owner
          waives and renounces all of his, her or its equities or rights in such
          Warrant  in favor of each such permitted bona fide purchaser, and each
          such  permitted  bona  fide  purchaser  shall  acquire  absolute title
          thereto  and  to all rights presented thereby; and (d) until such time
          as  the respective Warrant is transferred on the books of the Company,
          the  Company  may  treat the registered holder thereof as the absolute
          owner  thereof  for  all  purposes,  notwithstanding any notice to the
          contrary.

     8.   MISCELLANEOUS.
          -------------

          All  notices,  certificates  and  other  communications from or at the
          request  of the Company to any Warrant Holder shall be mailed by first
          class,  registered or certified mail, postage prepaid, to such address
          as  may  have been furnished to the Company in writing by such Warrant
          Holder,  or,  until  an address is so furnished, to the address of the
          last  holder  of  such  Warrant who has so furnished an address to the
          Company,  except  as otherwise provided herein. This Warrant Agreement
          and  any  of  the  terms  hereof may be changed, waived, discharged or
          terminated  only  by  an  instrument  in  writing  signed by the party
          against  which  enforcement  of  such  change,  waiver,  discharge  or
          termination  is  sought. This Warrant Agreement shall be construed and
          enforced  in  accordance with and governed by the laws of the State of
          Texas.  The  headings  in  this  Warrant Agreement are for purposes of
          reference  only  and  shall  not  limit or otherwise affect any of the
          terms  hereof.  This  Warrant  Agreement,  together  with the forms of
          instruments  annexed  hereto  as  schedules,  constitutes the full and
          complete  agreement  of the parties hereto with respect to the subject
          matter  hereof.  For  purposes  of  this  Warrant  Agreement,  a faxed
          signature  shall  constitute  an  original  signature.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant Agreement to be executed
on  this 14th day of September, 2006, by a duly authorized representative of the
Company.

                               SIBERIAN  ENERGY  GROUP,  INC.

                               By: /s/ David Zaikin
                                  ------------------------------
                                  Name: David  Zaikin
                                  Title: Chief Executive Officer

                               KEY  BROKERAGE,  INC.

                               By: /s/ Gueorgui Kolbassov
                                  ------------------------------
                                  Name:  Gueorgui  Kolbassov
                                  Title: President

<PAGE>

                                                                      SCHEDULE 1

                                     WARRANT
                                     -------

THIS  WARRANT  AND  THE  SHARES  OF  COMMON  STOCK  UNDELYING  THIS  WARRANT
(COLLECTIVELY,  THE  "SECURITIES")  HAVE  NOT  BEEN  REGISTERED  UNDER:  (A) THE
SECURITIES  ACT  OF  1933,  AS  AMENDED,  IN  RELIANCE  UPON THE EXEMPTIONS FROM
REGISTRATION  PROVIDED  IN  SECTIONS  3  AND  4  OF  SUCH  ACT  AND REGULATION D
PROMULGATED  THEREUNDER;  OR  (B)  ANY  STATE  SECURITIES  LAWS IN RELIANCE UPON
APPLICABLE  EXEMPTIONS  THEREUNDER.  THESE  SECURITIES  MUST  BE  ACQUIRED  FOR
INVESTMENT ONLY FOR THE ACCOUNT OF THE INVESTOR, AND NEITHER THE WARRANT NOR THE
UNDERLYING  COMMON  STOCK  MAY  BE  TRANSFERRED  OR, IN THE CASE OF THE WARRANT,
EXERCISED  EXCEPT  IN  COMPLIANCE WITH ALL APPLICABLE SECURITIES AND OTHER LAWS.

                                                      To Purchase 250,000 Shares
                                                                 of Common Stock

                           SIBERIAN ENERGY GROUP, INC.

This certifies that, for value received, the hereafter named registered owner is
entitled,  subject  to  the  terms  and  conditions  of  this Warrant, until the
expiration date, to purchase the number of shares (the "Shares") set forth above
of  the  common  stock  ("Common  Stock"),  of  SIBERIAN ENERGY GROUP, INC. (the
"Company")  from the Company at the purchase price per share hereafter set forth
below,  on  delivery  of this Warrant to the Company with the exercise form duly
executed  and  payment  of  the  purchase  price  (in cash, by certified or bank
cashier's  check  payable  to  the order of the Company or by wire transfer) for
each  Share  purchased.  This  Warrant  is  subject  to the terms of the Warrant
Agreement  between  the  parties  thereto dated September 14, 2006, the terms of
which  are  hereby incorporated herein. Reference is hereby made to such Warrant
Agreement  for  a further statement of the rights of the holder of this Warrant.

Registered  Owner:  KEY  BROKERAGE,  INC.            Date:  September  14,  2006

Purchase  Price
  Per  Share:      $2.20

Expiration  Date:     September  14,  2008,  5:00  p.m.  Eastern  Time.

WITNESS  the  signature  of  the  Company's  duly  authorized  representative:

                               SIBERIAN ENERGY GROUP, INC.

                               By: /s/ David Zaikin
                                  ---------------------------
                               Name: David  Zaikin
                               Title: Chief Executive Officer

                               KEY BROKERAGE, INC.

                               By: /s/ Guergui Kolbassov
                                  ---------------------------
                                  Name: Gueorgui Kolbassov
                                     Title: President

<PAGE>

                                    SCHEDULE 2

                         FORM OF ASSIGNMENT AND TRANSFER
                         -------------------------------

For  value  received,  the  undersigned hereby sells, assigns and transfers unto
__________________________________ the right represented by the enclosed Warrant
to  purchase           shares  of Common Stock of SIBERIAN ENERGY GROUP, INC. to
which the enclosed Warrant relates, and appoints                     Attorney to
transfer  such right on the books of SIBERIAN ENERGY GROUP, INC. with full power
of  substitution  in  the  premises.

The  undersigned  represents  and  warrants  that  the  transfer of the enclosed
Warrant is permitted by the terms of the Warrant Agreement pursuant to which the
enclosed  Warrant has been issued, and the transferee hereof, by his, her or its
acceptance  of  this  Agreement,  represents  and warrants that he, she or it is
familiar  with the terms of said Warrant Agreement and agrees to be bound by the
terms  thereof  with  the  same  force  and  effect  as  if a signatory thereto.

Dated:______________

                        ____________________________________________
                (Signature and must conform in all respects to name of holder
                  as  specified  on  the  face  of  the  enclosed  Warrant)

                        ____________________________________________
                                           (Address)

Signed  in  the  presence  of:

____________________________________

<PAGE>

                                                                      SCHEDULE 3

                              FORM OF SUBSCRIPTION
                              --------------------
     (To  be  signed  only  upon  exercise  of  Warrant)

To  SIBERIAN  ENERGY  GROUP,  INC.:

The  undersigned,  the holder of the enclosed Warrant, hereby irrevocably elects
to  exercise the purchase right represented by such Warrant for, and to purchase
thereunder,               *  shares  of  Common  Stock of SIBERIAN ENERGY GROUP,
INC. and herewith makes payment of $_______________ therefore, and requests that
the  certificate  or  certificates  for such shares be issued in the name of and
delivered  to  the  undersigned.

Dated:______________

                            ____________________________________________
              (Signature  must  conform  in  all  respects  to  name  of  holder
                    as  specified  on  the  face  of  the  enclosed  Warrant)

                           ____________________________________________
                                              (Address)

___________________________

(*)     Insert  here  the number of shares called for on the face of the Warrant
or,  in  the  case  of  a  partial exercise, the portion thereof as to which the
Warrant  is  being  exercised,  in either case without making any adjustment for
additional  Common  Stock  or  any  other  stock or other securities or property
which,  pursuant  to the adjustment provisions of the Warrant Agreement pursuant
to  which  the  Warrant  was  granted,  may  be  delivered  upon  exercise.

<PAGE>THIS SURRENDER AND RELEASE  AGREEMENT  dated as of September 19, 2006, made
by and between 760-24 WESTCHESTER AVENUE, LLC and 800-60 WESTCHESTER AVENUE, LLC
both having an office in care of RPW Group,  Inc., 800 Westchester  Avenue,  Rye
Brook,  New York 10573  (hereinafter  referred to  collectively as "Lessor") and
TRIARC COMPANIES,  INC., having an office at 280 Park Avenue, New York, New York
10017 (hereinafter referred to as "Lessee");

                               W I T N E S S E T H

     WHEREAS,  Lessor is the owner of the  building and real  property  commonly
known as and located at 800 Westchester  Avenue,  Rye Brook, New York 10573 (the
"Building");

     WHEREAS,  Lessor and Lessee  entered into that certain lease dated December
22, 2004 (the  "Lease"),  for the entire Seventh (7th) floor in the Building and
consisting  of  Fifty-Two  Thousand,  Nine Hundred and Sixty  (52,960)  rentable
square feet (hereinafter referred to as the "Demised Premises") for a term which
expires on December 31, 2015;

     WHEREAS,  Lessee has never taken occupancy of the Demised  Premises for the
conduct of its  business  and  desires to  surrender  all of its right title and
interest in and to the Lease and Demised  Premises  and has agreed to vacate the
Demised  Premises and tender  possession  thereof to Lessor as of the  Surrender
Date (as  hereinafter  defined) and Lessor has agreed to release Lessee from all
of its  covenants  and  obligations  under the Lease with respect to the Demised
Premises as of the Surrender Date,  subject however to the strict  compliance by
Lessee of the terms hereinafter  specifically set forth and provided that Lessee
pays Lessor an early  termination  fee in the sum of Four Million,  Four Hundred
and  Thirty-One  Thousand,  Forty-Two  and 00/100  ($4,431,042.00)  Dollars (the
"Termination Fee");

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

        ARTICLE-1 SURRENDER AND RELEASE OF THE DEMISED PREMISES

     SECTION 1.01.A.  Commencing on the Surrender Date, Lessee hereby surrenders
all of its right title and interest in and to the Lease and the Demised Premises
together with the leasehold estate thereof and agrees that Lessor shall have the
right to possession of the Demised  Premises,  from and after the Surrender Date
and the Lease is hereby  terminated,  null and void and of no further  force and
effect.  Provided that Lessee has paid Lessor the  Termination Fee by bank check
or wire  transfer  on or before the  Surrender  Date and Lessee has  vacated and
surrendered  possession of the Demised  Premises on or before the Surrender Date
and except for those matters with respect to the Demised Premises which pursuant
to the Lease  expressly  survive its  expiration or sooner  termination,  Lessor
hereby releases and discharges Lessee from each and every covenant,  duty, debt,
liability and obligation on Lessee's part to be performed, pursuant to the Lease
with respect to the Demised  Premises,  that may accrue and become  performable,
due or owing from and after the Surrender Date,  except for the those covenants,
duties, debts, liabilities and obligations which pursuant to the Lease expressly
survive the expiration or sooner termination thereof.

     B.  Commencing  on the  Surrender  Date,  and except for those matters with
respect to the Demised  Premises which pursuant to the Lease  expressly  survive
its  expiration or sooner  termination,  Lessee hereby  releases and  discharges
Lessor from each and every  covenant,  duty,  debt,  liability and obligation on
Lessor's part to be performed, pursuant to the Lease with respect to the Demised
Premises from and after the Surrender Date,  including,  but not limited to, and
without  limiting the  generality of the foregoing,  Lessor's  obligation to pay
Lessee the Alteration Fund and Supplemental  Alteration Fund (as those terms are
defined in the Lease).

     SECTION 1.02. As used herein the term "Surrender  Date" shall mean the date
hereof.

                            ARTICLE-2 REPRESENTATIONS

     SECTION 2.01. Lessee, for itself and its legal representatives,  successors
and assigns, covenants and represents to Lessor as follows:

          (a)  Lessee has full right,  authority  and power to surrender  all of
               its right, title and interest in and to the Lease and the Demised
               Premises; and

          (b)  The Lease is in full force and effect, and has not been modified,
               supplemented,  canceled or amended in any respect, and Lessee has
               not assigned, transferred, pledged or otherwise encumbered all or
               any part of its right, title and interest in and to the Lease and
               the Demised Premises,  and the Lease and Demised Premises are now
               and will,  on the  Surrender  Date be free and clear of any liens
               and encumbrances made by Lessee; and

          (c)  Lessee  represents  that  it is  not on the  date  hereof,  be in
               default under any of the terms of the Lease, having performed all
               of the obligations imposed upon it thereunder; and

          (d)  Lessee has no  knowledge  of any default in the  performance  and
               observance of any obligations contained in the Lease, to be kept,
               observed and performed by Lessee,  or any  condition,  which with
               the  giving  of  notice  or  passage  of  time,  or  both,  would
               constitute a default under the Lease.

     SECTION 2.02. Lessor, for itself and its legal representatives,  successors
and assigns, covenants and represents to Lessee as follows:

          (a)  Lessor  has full  right,  authority  and power to enter into this
               Agreement; and

          (b)  The Lease is in full force and effect, and has not been modified,
               supplemented, canceled or amended in any respect; and

          (c)  To  the  best  of   Lessor's   knowledge,   without   independent
               investigation,  Lessee is not on the date hereof in default under
               any of  the  terms  of the  Lease,  having  performed  all of the
               obligations imposed upon it thereunder.

          (d)  Lessor  has  obtained  all  third  party  consents  necessary  in
               connection with entering into this Agreement.

                           ARTICLE 3 - BINDING EFFECT

     SECTION 3.01. This Agreement shall be binding upon and inure to the benefit
of the successors, assigns and heirs of each party.

                           ARTICLE 4 -ATTORNEYS' FEES

     SECTION 4.01.  Should any party to this Agreement bring suit to enforce the
terms of this  Agreement,  the  prevailing  party in any  such  action  shall be
entitled to its reasonable attorneys' fees, including costs of litigation.  Each
party hereto shall bear its own costs and expenses (including legal) incurred in
connection with preparing and negotiating this Agreement.

                            ARTICLE 5 -MISCELLANEOUS

     SECTION 5.01.  This Agreement shall be governed in accordance with the laws
of the State of New York. Any action  concerning any of the matters set forth in
this agreement shall be tried in the State of New York, County of Westchester.

     SECTION  5.02.  This  Agreement   represents  the  entire  agreement,   and
supercedes all prior  agreements,  arrangements and  understandings  between the
parties with respect to the subject  matter  hereof.  Neither this Agreement nor
any provision hereof may be waived, amended,  supplemented or otherwise modified
without the written agreement of both parties.

     SECTION  5.03.   Simultaneously  with  the  execution  hereof,  Lessor  has
delivered  to Lessee The Union Labor Life  Insurance  Company's  consent to this
Agreement.

     IN WITNESS WHEREOF,  this Surrender and Release Agreement has been executed
by the duly authorized representatives of Lessor and Lessee as of the date first
above written.
                        760-24 WESTCHESTER AVENUE, LLC, (Lessor)
                        By: 24 South Third Avenue Corp., its sole member

                        By:  ROBERT P. WEISZ
                             ---------------------------------------------------
                             Name:  Robert P. Weisz
                             Title: President

                        800-60 WESTCHESTER AVENUE, LLC, (Lessor)
                        By: 60-3RD Ave. Corp., its sole member

                        By:  ROBERT P. WEISZ
                             ---------------------------------------------------
                             Name:  Robert P. Weisz
                             Title: President

                        TRIARC COMPANIES, INC.,  (Lessee)

                        By: FRANCIS T. MCCARRON
                            ----------------------------------------------------
                            Name:   Francis T. McCarron
                            Title:  Executive Vice President & Chief
                                    Financial Officer

<PAGE>

STATE OF NEW YORK      )
                       )ss.:
COUNTY OF WESTCHESTER  )

               On this 19th day of September, 2006, before me, the  undersigned,
personally  appeared ROBERT P. WEISZ,  personally known to me or proved to me on
the basis of  satisfactory  evidence to be the  individual(s)  whose  name(s) is
(are)  subscribed  to  the  within   instrument  and  acknowledged  to  me  that
he/she/they  executed  the  same in  his/her/their  capacity(ies),  and  that by
his/her/their signature(s) on the instrument,  the individual(s),  or the person
on behalf of which the individual(s) acted, executed the instrument.

                          JANET A. ENRIGHT
                          ----------------

                           Notary Public

STATE OF NEW YORK      )
                       )ss.:
COUNTY OF NEW YORK     )

               On this 19th day of  September, 2006, before me, the undersigned,
personally appeared Francis T. McCarron , personally known to me or proved to me
on the basis of satisfactory  evidence to be the individual(s)  whose name(s) is
(are)  subscribed  to  the  within   instrument  and  acknowledged  to  me  that
he/she/they  executed  the  same in  his/her/their  capacity(ies),  and  that by
his/her/their signature(s) on the instrument,  the individual(s),  or the person
on behalf of which the individual(s) acted, executed the instrument.

                           DEBORAH Y. WOLF
                           ---------------

                           Notary Public

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