Document:

RANCHER
      ENERGY CORP.

    

    December
      21, 2006

    Rancher
      Energy Corp.

    999-18th
      Street,
      Suite 1740

    Denver,
      Colorado 80202

    

    

    
      	
            	Re:	
              Rancher
                Energy Corp. - Lock-Up
                Agreement

            

    

    

    Dear
      Sirs:

    

    This
      Lock-Up Agreement is being delivered to you in connection with the Securities
      Purchase Agreement (the "Purchase
      Agreement"),
      dated
      as of December 21, 2006 by and among Rancher Energy Corp. (the
      "Company")
      and
      the investors party thereto (the "Buyers"),
      with
      respect to the issuance of (i) convertible notes of the Company (the
      "Notes")
      which
      Notes shall be convertible into the common stock, par value $0.00001 per share,
      of the Company (the "Common
      Stock")
      (ii)
      shares of Common Stock and (iii) warrants to acquire additional shares of Common
      Stock.
      Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Purchase Agreement.

    

    In
      order
      to induce you to enter into the Purchase Agreement, the undersigned agrees
      that
commencing
      on the date hereof and ending on the later of (i) the date 180 days from the
      Closing Date (as defined in the Purchase Agreement) and (ii) the
      date
      the
      Initial Registration Statement (as defined in the Registration Rights Agreement)
      filed by the Company pursuant to the Registration Rights Agreement is declared
      effective by the United States Securities and Exchange Commission,
      but in
      no event later than the one year anniversary of the Closing Date (the
      "Lock-Up
      Period"),
      the
      undersigned will not, without the written consent of the Required Holders (as
      defined in the Registration Rights Agreement), (i)
      sell,
      offer to sell, contract or agree to sell, hypothecate, hedge, pledge, grant
      any
      option to purchase,
      make any
      short sale
      or
      otherwise dispose of or agree to dispose of, directly or indirectly,
      any
      shares
      of Common Stock, owned directly by the undersigned (including holding as a
      custodian) or with respect to which the undersigned has beneficial ownership
      within the rules and regulations of the Securities and Exchange
      Commission,
      or (ii)
      enter into any swap or other arrangement that transfers to another, in whole
      or
      in part, any of the economic consequences of ownership of any
      shares of Common Stock, owned directly by the undersigned (including holding
      as
      a custodian) or with respect to which the undersigned has beneficial ownership
      within the rules and regulations of the Securities and Exchange
      Commission,
      whether
      any such transaction is to be settled by delivery of such securities, in cash
      or
      otherwise, (collectively, the "Undersigned’s
      Shares").
      This
      Lock-Up Agreement shall not apply to any shares of Common Stock acquired by
      the
      undersigned on the open market or otherwise after the Closing Date.

    

    The
      foregoing restriction is expressly agreed to preclude the undersigned or any
      affiliate of the undersigned from engaging in, without the written consent
      of
      the Required Holders, any hedging or other transaction which is designed to
      or
      which reasonably could be expected to lead to or result in a sale or disposition
      of the Undersigned’s Shares even if the Undersigned’s Shares would be disposed
      of by someone other than the undersigned. Such prohibited hedging or other
      transactions would include, without limitation, any short sale or any purchase,
      sale or grant of any right (including, without limitation, any put or call
      option) with respect to any of the Undersigned’s Shares or with respect to any
      security that includes, relates to, or derives any significant part of its
      value
      from the Undersigned’s Shares.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Notwithstanding
      the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a
bona
      fide
      gift or
      gifts, provided that the donee or donees thereof agree to be bound in writing
      by
      the restrictions set forth herein or (ii) to any trust for the direct or
      indirect benefit of the undersigned or the immediate family of the undersigned,
      provided that the trustee of the trust agrees to be bound in writing by the
      restrictions set forth herein, and provided further that any such transfer
      shall
      not involve a disposition for value. For purposes of this Lock-Up Agreement,
      “immediate family” shall mean any relationship by blood, marriage or adoption,
      not more remote than first cousin. The undersigned now has, and, except as
      contemplated by clauses (i) and (ii) above, for the duration of this Lock-Up
      Agreement will have, good and marketable title to the Undersigned’s Shares, free
      and clear of all liens, encumbrances, and claims whatsoever. The undersigned
      also agrees and consents to the entry of stop transfer instructions with the
      Company’s transfer agent and registrar against the transfer of the Undersigned’s
      Shares except in compliance with the foregoing restrictions.

    

    The
      undersigned understands and agrees that this Lock-Up Agreement is irrevocable
      and shall be binding upon the undersigned’s heirs, legal representatives,
      successors, and assigns.

    

    This
      Lock-Up Agreement may be executed in two counterparts, each of which shall
      be
      deemed an original but both of which shall be considered one and the same
      instrument.

    

    This
      Lock-Up Agreement will be governed by and construed in accordance with the
      laws
      of the State of New York, without giving effect to any choice of law or
      conflicting provision or rule (whether of the State of New York, or any other
      jurisdiction) that would cause the laws of any jurisdiction other than the
      State
      of New York to be applied. In furtherance of the foregoing, the internal laws
      of
      the State of New York will control the interpretation and construction of this
      Lock-Up Agreement, even if under such jurisdiction's choice of law or conflict
      of law analysis, the substantive law of some other jurisdiction would ordinarily
      apply.

    

    The
      Buyers shall be intended third party beneficiaries of this Agreement to the
      same
      extent as if they were parties hereto, and shall be entitled to enforce the
      provisions hereof. No provision of this Agreement may be amended or waived
      without the written consent of the Required Holders.

    

    [Signature
      Page Follows]

    
       

      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	 	
              Very
                truly yours,

               

              ________________________________________

              Exact
                Name of Stockholder

               

              ________________________________________

              Authorized
                Signature

               

              ________________________________________

              Title

            

    

    

    Agreed
      to
      and Acknowledged:

    

    RANCHER
      ENERGY CORP.

    

    

    By:
      _______________________

    Name:
      John Works

    Title:
      President and Chief Executive OfficerVOTING
      AGREEMENT

    

    VOTING
      AGREEMENT, dated as of December 13, 2006 (this "Agreement"),
      by
      and among Rancher Energy Corp., a Nevada corporation (the "Company"),
      and
      the stockholders listed on the signature pages hereto under the heading
      "Stockholders"
      (each a
      "Stockholder"
      and
      collectively, the "Stockholders").
      

    

    WHEREAS,
      the
      Company and certain investors (each, an "Investor",
      and
      collectively, the "Investors")
      have
      entered into a Securities Purchase Agreement, dated as December 13, 2006 (the
      "Securities
      Purchase Agreement"),
      pursuant to which, among other things, the Company has agreed to issue and
      sell
      to the Investors and the Investors have agreed to purchase, (i) convertible
      notes of the Company (the "Notes")
      which
      will, among other things, be convertible into shares of the Company's common
      stock, par value $.00001 value per share (the "Common
      Stock")
      in
      accordance with the terms of the Notes, (ii) shares of Common Stock and (iii)
      warrants which will be exercisable to purchase shares of Common
      Stock.

    

    WHEREAS,
      as of the date hereof, the Stockholders own collectively 8,815,000 shares of
      Common Stock, which represent in the aggregate approximately 17.8% of the total
      issued and outstanding capital stock of the Company prior to the Transaction
      (as
      defined below); and 

    

    WHEREAS,
      as a condition to the willingness of the Investors to enter into the Securities
      Purchase Agreement and to consummate the transactions contemplated thereby
      (collectively, the "Transaction"),
      the
      Investors have required that each Stockholder agree, and in order to induce
      the
      Investors to enter into the Securities Purchase Agreement, each Stockholder
      has
      agreed, to enter into this Agreement with respect to all the Common Stock now
      owned and which may hereafter be acquired by the Stockholder and any other
      securities, if any, which such Stockholder is currently entitled to vote, or
      after the date hererof becomes entitled to vote, at any meeting of stockholders
      of the Company (the "Other
      Securities").

    

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

    

    ARTICLE
      I

    

    VOTING
      AGREEMENT OF THE STOCKHOLDER

    

    SECTION
      1.01. Voting
      Agreement.
      Subject
      to the last sentence of this Section 1.01, each Stockholder hereby agrees
      that at any meeting of the stockholders of the Company, however called, and
      in
      any action by written consent of the Company's stockholders, each of the
      Stockholders shall vote the Common Stock and the Other Securities: (a) in favor
      of the Stockholder Approval (as defined in the Securities Purchase Agreement)
      as
      described in Section 4(p) of the Securities Purchase Agreement; and (b)
      prior to the Stockholder Approval, against any proposal or any other corporate
      action or agreement that would result in a breach of any covenant,
      representation or warranty or any other obligation or agreement of the Company
      under the Securities Purchase Agreement or which could result in any of the
      conditions to the Company's obligations under the Securities Purchase Agreement
      not being fulfilled. Each Stockholder acknowledges receipt and review of a
      copy
      of the Securities Purchase Agreement and the other Transaction Documents (as
      defined in the Securities Purchase Agreement). The obligations of the
      Stockholders under this Section 1.01 shall terminate immediately following
      the
      occurrence of the Stockholder Approval. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    ARTICLE
      II

    

    REPRESENTATIONS
      AND WARRANTIES OF THE STOCKHOLDER

    

    Each
      Stockholder hereby represents and warrants, severally but not jointly, to each
      of the Investors as follows:

    

    SECTION
      2.01. Authority
      Relative to This Agreement.
      Each
      Stockholder has all necessary power and authority to execute and deliver this
      Agreement, to perform his or its obligations hereunder and to consummate the
      transactions contemplated hereby. This Agreement has been duly executed and
      delivered by such Stockholder and constitutes a legal, valid and binding
      obligation of such Stockholder, enforceable against such Stockholder in
      accordance with its terms, except (a) as such enforceability may be limited
      by
      applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
      moratorium or similar laws now or hereafter in effect relating to, or affecting
      generally the enforcement of creditors' and other obligees' rights, (b) where
      the remedy of specific performance or other forms of equitable relief may be
      subject to certain equitable defenses and principles and to the discretion
      of
      the court before which the proceeding may be brought, and (c) where rights
      to
      indemnity and contribution thereunder may be limited by applicable law and
      public policy.

    

    SECTION
      2.02. No
      Conflict.
      i)
      The
      execution and delivery of this Agreement by such Stockholder does not, and
      the
      performance of this Agreement by such Stockholder shall not, (i) conflict with
      or violate any federal, state or local law, statute, ordinance, rule,
      regulation, order, judgment or decree applicable to any Stockholder or by which
      the Common Stock or the Other Securities owned by such Stockholder are bound
      or
      affected or (ii) result in any breach of or constitute a default (or an event
      that with notice or lapse of time or both would become a default) under, or
      give
      to others any rights of termination, amendment, acceleration or cancellation
      of,
      or result in the creation of a lien or encumbrance on any of the Common Stock
      or
      the Other Securities owned by such Stockholder pursuant to, any note, bond,
      mortgage, indenture, contract, agreement, lease, license, permit, franchise
      or
      other instrument or obligation to which such Stockholder is a party or by which
      such Stockholder or the Common Stock or Other Securities owned by such
      Stockholder are bound.

    

    (b) The
      execution and delivery of this Agreement by such Stockholder does not, and
      the
      performance of this Agreement by such Stockholder shall not, require any
      consent, approval, authorization or permit of, or filing with or notification
      to, any governmental entity or other third party by such
      Stockholder.

    

    SECTION
      2.03. Title
      to the Stock.
      As of
      the date hereof, each Stockholder is the owner of the number of shares of Common
      Stock set forth opposite its name on Appendix
      A
      attached
      hereto, entitled to vote, without restriction, on all matters brought before
      holders of capital stock of the Company, which Common Stock represent on the
      date hereof the percentage of the outstanding stock and voting power of the
      Company set forth on such Appendix. Such Common Stock are all the securities
      of
      the Company owned, either of record or beneficially, by such Stockholder. Such
      Common Stock are owned free and clear of all security interests, liens, claims,
      pledges, options, rights of first refusal, agreements, limitations on such
      Stockholder's voting rights, charges and other encumbrances of any nature
      whatsoever. No Stockholder has appointed or granted any proxy, which appointment
      or grant is still effective, with respect to the Common Stock or Other
      Securities owned by such Stockholder.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    ARTICLE
      III

    

    COVENANTS

    

    SECTION
      3.01. No
      Disposition or Encumbrance of Stock.
      Each
      Stockholder hereby covenants and agrees that, until the Stockholder Approval
      has
      been obtained, except as contemplated by this Agreement, such Stockholder shall
      not offer or agree to sell, transfer, tender, assign, hypothecate or otherwise
      dispose of, grant a proxy or power of attorney with respect to, or create or
      permit to exist any security interest, lien, claim, pledge, option, right of
      first refusal, agreement, limitation on such Stockholder's voting rights, charge
      or other encumbrance of any nature whatsoever ("Encumbrance")
      with
      respect to the Common Stock or Other Securities, or directly or indirectly,
      initiate, solicit or encourage any person to take actions which could reasonably
      be expected to lead to the occurrence of any of the foregoing; provided,
      however,
      that
      any such Stockholder may assign, sell or transfer any Common Stock or Other
      Securities provided that any such recipient of the Common Stock or Other
      Securities has delivered to the Company and each Investor a written agreement
      in
      a form reasonably satisfactory to the Investors that the recipient shall be
      bound by, and the Common Stock and/or Other Securities so transferred, assigned
      or sold shall remain subject to this Agreement.

    

    SECTION
      3.02. Company
      Cooperation.
      The
      Company hereby covenants and agrees that it will not, and each Stockholder
      irrevocably and unconditionally acknowledges and agrees that the Company will
      not (and waives any rights against the Company in relation thereto), recognize
      any Encumbrance or agreement on any of the Common Stock or Other Securities
      subject to this Agreement unless the provisions of Section 3.01 have been
      complied with.

    

    ARTICLE
      IV

    

    MISCELLANEOUS

    

    SECTION
      4.01. Further
      Assurances.
      Each
      Stockholder will execute and deliver such further documents and instruments
      and
      take all further action as may be reasonably necessary in order to consummate
      the transactions contemplated hereby.

    

    SECTION
      4.02. Specific
      Performance.
      The
      parties hereto agree that irreparable damage would occur in the event any
      provision of this Agreement was not performed in accordance with the terms
      hereof and that any Investor (without being joined by any other Investor) shall
      be entitled to specific performance of the terms hereof, in addition to any
      other remedy at law or in equity. Any Investor shall be entitled to its
      reasonable attorneys' fees in any action brought to enforce this Agreement
      in
      which it is the prevailing party.

    

    SECTION
      4.03. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement among the Company and the
      Stockholders (other than the Securities Purchase Agreement and the other
      Transaction Documents) with respect to the subject matter hereof and supersedes
      all prior agreements and understandings, both written and oral, among the
      Company and the Stockholders with respect to the subject matter
      hereof.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    SECTION
      4.04. Amendment.
      This
      Agreement may not be amended except by an instrument in writing signed by the
      parties hereto.

    

    SECTION
      4.05. Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any rule of law, or public policy, all other conditions and
      provisions of this Agreement shall nevertheless remain in full force and effect
      so long as the economic or legal substance of this Agreement is not affected
      in
      any manner materially adverse to any party. Upon such determination that any
      term or other provision is invalid, illegal or incapable of being enforced,
      the
      parties hereto shall negotiate in good faith to modify this Agreement so as
      to
      effect the original intent of the parties as closely as possible in a mutually
      acceptable manner in order that the terms of this Agreement remain as originally
      contemplated to the fullest extent possible.

    

    SECTION
      4.06. Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. The parties hereby agree that all actions or proceedings arising
      directly or indirectly from or in connection with this Agreement shall be
      litigated only in the Supreme Court of the State of New York or the United
      States District Court for the Southern District of New York located in New
      York
      County, New York. The parties consent to the jurisdiction and venue of the
      foregoing courts and consent that any process or notice of motion or other
      application to any of said courts or a judge thereof may be served inside or
      outside the State of New York or the Southern District of New York by registered
      mail, return receipt requested, directed to the party being served at its
      address set forth on the signature ages to this Agreement (and service so made
      shall be deemed complete three (3) days after the same has been posted as
      aforesaid) or by personal service or in such other manner as may be permissible
      under the rules of said courts. Each of the Company and each Stockholder
      irrevocably waives, to the fullest extent permitted by law, any objection which
      it may now or hereafter have to the laying of the venue of any such suit,
      action, or proceeding brought in such a court and any claim that suit, action,
      or proceeding has been brought in an inconvenient forum. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY.

    

    SECTION
      4.07. Third-Party
      Beneficiaries.
      The
      Investors shall be intended third party beneficiaries of this Agreement to
      the
      same extent as if they were parties hereto, and shall be entitled to enforce
      the
      provisions hereof.

    

    SECTION
      4.08. Termination.
      This
      Agreement shall terminate immediately upon the earlier to occur of (i) the
      Stockholder Approval or (ii) upon the mutual consent of each Stockholder and
      the
      Investors.

    

    [Signature
      Page Follows]

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

    IN
      WITNESS WHEREOF, each Stockholder and the Company has duly executed this
      Agreement.

     

    
      	 	 	
              THE
                COMPANY:

            
	 	 	 
	 	 	
              RANCHER
                ENERGY CORP.

            
	 	 	 	 
	 	 	 	 
	 	 	
              By:

            	 
	 	 	 	
              Name:
                John Works

            
	 	 	 	
              Title:
                President and CEO

            
	
              Dated:
                December 12, 2006

            	 	 	 
	 	 	
              Address:

            	
              999-18th
                Street, Suite 1740

              Denver,
                Colorado 80202

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	 	 	
               

              STOCKHOLDER:

            
	 	 	 
	 	 	 
	 	 	[INSERT
              NAME]
	 	 	 
	 	 	 
	 	
              By:

            	
               

            
	 	 	
              Name:

            
	 	 	
              Title:

            
	
              Dated:
                December ___, 2006

            	 	 
	 	 	
              Address:

            	 
	 	 	 	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
      A

    

    
      	
              Stockholder

            	
              Common
                Stock 

              Owned

            	
              Percentage
                of Stock Outstanding

            	
              Voting
                Percentage 

              of
                Stock

              Outstanding

            
	
              VP
                Bank (Switzerland) LTD.

            	
              1,000,000

            	
              2.43%

            	
              2.43%

            
	
              Capital
                Investment & Business

            	
              1,560,000

            	
              3.80%

            	
              3.80%

            
	
              Black
                Sea Trading

            	
              2,312,500

            	
              5.63%

            	
              5.63%

            
	
              Bank
                Sal. Oppenheimer

            	
              1,000,000

            	
              2.43%

            	
              2.43%

            
	
              Affaires
                Financieres

            	
              1,400,000

            	
              3.41%

            	
              3.41%

            
	
              Andrei
                Stytsenko

            	
              815,000

            	
              1.98%

            	
              1.98%

            
	
              Schwab
                Mahnegani

            	
              24,500

            	
              0.06%

            	
              0.06%

            
	
              Hassan
                Kardan

            	
              20,000

            	
              0.05%

            	
              0.05%

            
	
              Jackie
                Chang

            	
              38,500

            	
              0.09%

            	
              0.09%

            
	
              Pablo
                Salvia

            	
              23,000

            	
              0.06%

            	
              0.06%

            
	
              Matthew
                Senk

            	
              26,500

            	
              0.06%

            	
              0.06%

            
	
              Ann
                Ewe

            	
              180,000

            	
              0.44%

            	
              0.44%

            
	
              Nick
                Dietrich

            	
              23,000

            	
              0.06%

            	
              0.06%

            
	
              John
                Bossell

            	
              35,000

            	
              0.09%

            	
              0.09%

            
	
              PanAmerica
                Capital Group Inc.

            	
              1,983,125

            	
              4.82%

            	
              4.82%

            
	
              Athena
                Balogh

            	
              25,000

            	
              0.06%

            	
              0.06%

            
	
              Sergei
                Stetsenko

            	
              94,900

            	
              0.23%

            	
              0.23%

            
	
              Venture
                Capital First, LLC

            	
              1,006,905

            	
              2.45%

            	
              2.45%

            
	
              John
                I Mathews Trust

            	
              1,260,000

            	
              3.07%

            	
              3.07%

            
	
              Giltspur
                Nominees

            	
              600,000

            	
              1.46%

            	
              1.46%

            
	
               

            	 	 	 
	
               

            	 	 	 
	 	
              13,427,930

            	
              32.67%

            	
              32.67%

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