Document:

Exhibit
      10.2

    

    TERMINATION
      AGREEMENT

    

    THIS
      TERMINATION AGREEMENT
      (the
“Agreement”),
      dated
      as of August 31, 2007, is by and among OJSE
      SMOLENENERGY,
      a
      corporation formed under the laws of the Russian Federation (the
      “Company”)
      and
RUSSOIL
      CORPORATION,
      a
      Nevada corporation (“Russoil”)
      and
      the stockholders of the Company signatory hereto (the “Stockholders”).
      Each
      of the parties to this Agreement is individually referred to herein as a
“Party”
and
      collectively, as the “Parties.”

    

    BACKGROUND

    

    The
      Parties entered into that certain Share Exchange Agreement dated as of May
      31,
      2007 (the “Exchange
      Agreement”).
      The
      Parties have been unable to effect the transaction contemplated by the Exchange
      Agreement.

    

    AGREEMENT

    

    NOW
      THEREFORE,
      the
      parties agree as follows:

    

    The
      Company, the Stockholders and Russoil terminate the Exchange Agreement by mutual
      written consent.

     

    The
      Parties hereto have executed and delivered this Termination Agreement as of
      the
      date first above written.

     

    
      	 	 	 
	 	
              RUSSOIL
                CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                Silvestre Hutchinson

            
	 	
              

              
                Name:
                  Silvestre Hutchinson

              

            
	 	
              Title:
                President

            

    

     

    
      	 	 	 
	 	
              OJSE
                SMOLENENERGY

            
	 
 	 
 	 
 
	
            	By:  	
              
                /s/
                  Evgeny Bagay

              

            
	 	
              

              
                Name:
                  Evgeny
                  Bagay

              

            
	 	
              Title:
                Deputy
                of the General
                Director

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    THE
      STOCKHOLDERS:

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	
            	
            	
              
                
                  /s/
                    Elias Kamennoy

                

              

            
	 	
              

              
                
                  Elias
                    Kamennoy

                

              

            

    

     

    
      	 	 	 
	
            	
            	
              
                
                  /s/
                    Evgeny Bagay

                

              

            
	 	
              

              
                
                  
                    Evgeny
                      Bagay

                  

                

              

            

    

     

    
      	 	 	 
	
            	
            	
              
                
                  /s/
                    Evgeny Fedosov

                

              

            
	 	
              

              
                
                  
                    
                      Evgeny
                        Fedosov

                    

                  

                

              

            

    

     

    
      
         

      

      
        2Exhibit
      10.3

     

    SHARE
      EXCHANGE AGREEMENT

     

    This
      SHARE
      EXCHANGE AGREEMENT
      (the
“Agreement”),
      dated
      as of August 31, 2007, is by and among OJSE
      SMOLENERGY,
      a
      corporation formed under the laws of the Russian Federation (the
      “Company”),
      Viktor Ekimov, a citizen of the Russian Federation, (a “Gorstovoe
      Holder”) and RUSSOIL
      CORPORATION,
      a
      Nevada corporation (“Russoil”),
      filing reports pursuant to the Securities Exchange Act of 1934, as amended
      (the
“Exchange
      Act”)
      and the
      stockholders of the Company signatory hereto (the “Stockholders”).
      Each
      of the parties to this Agreement is individually referred to herein as a
“Party”
and
      collectively, as the “Parties.”

     

    BACKGROUND

    

    WHEREAS,
      the
      Company has 100,000 shares or “actions” of capital stock (the “Company
      Stock”)
      issued
      and outstanding, all of which are all held by the Stockholders. Each of the
      Stockholders is the record and beneficial owner of the number of shares of
      Company Stock set forth opposite below such Stockholder’s name on the signature
      pages to this Agreement. 

    

    WHEREAS,
      the
      Company acquired fifty-one (51%) of the membership interest of Gorstove, LLC
      from the Gorstovoe Holder and, as consideration, among other things, the Company
      is obligated to pay the Gorstovoe Holder the sum of U.S. $26,000,000 on August
      31, 2007; and 

    

    WHEREAS,
      the
      Company does not have a reasonable expectation of having the financial ability
      to pay the Gorstovoe Holder the sum of U.S. $26,000,000; and

    

    WHEREAS,
      the
      Gorstove Holder is willing to accept 110,000,000 shares of Russoil’s common
      stock in full satisfaction of the Company’s $26,000,000 indebtedness to him;
      and

    

    WHEREAS,
      Russoil
      is willing to issue 110,000,000 shares of its common stock to the Gorstovoe
      Holder in exchange for all of the issued and outstanding capital stock of the
      Company; and

    

    WHEREAS,
      said
      110,000,000 shares of Russoil’s common stock will constitute not less than 51%
      of the issued and outstanding voting capital stock of Russoil on a fully-diluted
      basis as of and immediately after the Closing, and before giving effect to
      the
      Financing (as defined in Section
      7.10
      hereof).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     The
      exchange of Company Stock for Russoil Stock is intended to constitute a
      reorganization within the meaning of Section 368(a)(1)(B) of the Internal
      Revenue Code of 1986 (the “Code”),
      as
      amended or such other tax free reorganization exemptions that may be available
      under the Code.

     

    The
      Board
      of Directors of Russoil and the stockholders of the Company have determined
      that
      it is desirable to effect this plan of reorganization and share
      exchange.

     

    AGREEMENT

    

    NOW
      THEREFORE,
      the
      parties agree as follows:

    

    ARTICLE
      I

    

    Exchange
      of Shares

    

    SECTION
      1.01 The
      above
      recitals are incorporated by reference as if fully stated herein.

     

    SECTION
      1.02.  Exchange
      by Stockholders.
      At the
      Closing (as defined in Section 1.03), each of the Stockholders shall sell,
      transfer, convey, assign and deliver to Russoil its Company Stock free and
      clear
      of all Liens (as defined below) and in exchange Russoil is issuing 110,000,000
      shares of its voting capital stock to the Gorstovoe Holder.

     

    SECTION
      1.03.  Closing.
      The
      closing (the “Closing”)
      of the
      transactions contemplated hereby (the “Transactions”)
      shall
      take place at the offices of Gusrae, Kaplan, Bruno & Nusbaum PLLC, 120 Wall
      Street, 11th
      Floor,
      New York, New York 10005, commencing at 10:00 a.m. local time on the second
      business day following the satisfaction or waiver of all conditions to the
      obligations of the parties to consummate the Transactions contemplated hereby
      (other than conditions with respect to actions the respective parties will
      take
      at the Closing itself), or such other date and time as the parties may mutually
      determine (the “Closing
      Date”).

     

    

    ARTICLE
      II

     

    Representations
      and Warranties of the Stockholders

     

    Each
      of
      the Stockholders hereby severally (and not jointly) represents and warrants
      to
      Russoil with respect to itself, as follows:

     

    SECTION
      2.01.  Good
      Title; Validity of Option; Organization.
      Except
      for the discharge of those liens, security interests, pledges, equities and
      claims effected hereby the Stockholder is the record and beneficial owner,
      and
      has good title to the Company Stock set forth below his signature at the foot
      of
      this Agreement, with the right and authority to sell and deliver such Company
      Stock. Upon delivery of any certificate or certificates duly assigned,
      representing the same as herein contemplated and/or upon registering of Russoil
      as the new owner of such Company Stock in the share register of the Company,
      Russoil will receive good title to such Company Stock, free and clear of all
      liens, security interests, pledges, equities and claims of any kind, voting
      trusts, stockholder agreements and other encumbrances (collectively,
“Liens”).
      

     

    
      
        
        

      

      
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    SECTION
      2.02.  Power
      and Authority.
      The
      Stockholder has the legal power and authority to execute and deliver this
      Agreement and to perform its obligations hereunder. All acts required to be
      taken by the Stockholder to enter into this Agreement and the Company and to
      carry out the Transactions have been properly taken. This Agreement constitutes
      a legal, valid and binding obligation of the Stockholder, enforceable against
      such Stockholder in accordance with the terms hereof.

     

    SECTION
      2.03.  No
      Conflicts.
      The
      execution and delivery of this Agreement by the Stockholder and the performance
      by the Stockholder of its obligations hereunder in accordance with the terms
      hereof: (i) will not require the consent of any third party or any federal,
      state, local or foreign government or any court of competent jurisdiction,
      administrative agency or commission or other governmental authority or
      instrumentality, domestic or foreign (“Governmental
      Entity”)
      under
      any statutes, laws, ordinances, rules, regulations, orders, writs, injunctions,
      judgments, or decrees (collectively, “Laws”);
      (ii)
      will not violate any Laws applicable to such Stockholder and (iii) will not
      violate or breach any contractual obligation to which such Stockholder is a
      party. 

     

    SECTION
      2.04.  No
      Finder’s Fee.
      The
      Stockholder has not created any obligation for any finder’s, investment banker’s
      or broker’s fee in connection with the Transactions. 

    

    ARTICLE
      II - A

    

    SECTION
      2.A.01.  Acquisition
      Entirely for Own Account.
      The
      Russoil Stock proposed to be acquired by the Gorstovoe Holder hereunder will
      be
      acquired for investment for his own account, and not with a view to the resale
      or distribution of any part thereof, and the Gorstovoe Holder has no present
      intention of selling or otherwise distributing the Russoil Stock, except in
      compliance with applicable securities laws.

     

    SECTION
      2.A.02.  Available
      Information.
      The
      Gorstovoe Holder has such knowledge and experience in financial and business
      matters that it is capable of evaluating the merits and risks of investment
      in
      Russoil, he has received all documents and information from Russoil that he
      has
      requested and been allowed the opportunity to ask questions of and receive
      answers from Russoil’s officers and directors. The Gorstovoe Holder does not
      desire to receive any further documents, information or answers.

     

    
      
        
        

      

      
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    SECTION
      2.A.03.  Non-Registration.
      The
      Gorstovoe Holder understands that Russoil Stock has not been registered under
      the Securities Act of 1933, as amended (the “Securities
      Act”)
      and,
      if issued in accordance with the provisions of this Agreement, will be issued
      by
      reason of a specific exemption from the registration provisions of the
      Securities Act which depends upon, among other things, the bona fide nature
      of
      the investment intent and the accuracy of the Gorstovoe Holder’s representations
      as expressed herein.

     

    SECTION
      2A.04.  Restricted
      Securities.
      The
      Gorstovoe Holder understands that Russoil Stock is characterized as “restricted
      securities” under the Securities Act inasmuch as this Agreement contemplates
      that, if acquired by the Gorstovoe Holder pursuant hereto, Russoil Stock would
      be acquired in a transaction not involving a public offering. The Gorstovoe
      Holder further acknowledges that if Russoil Stock is issued to the Gorstovoe
      Holder in accordance with the provisions of this Agreement, such Russoil Stock
      may not be resold without registration under the Securities Act or the existence
      of an exemption therefrom. The Gorstovoe Holder represents that it is familiar
      with Rule 144 promulgated under the Securities Act, as presently in effect,
      and
      understands the resale limitations imposed thereby and by the Securities
      Act.

     

    SECTION
      2.A.05.  Legends.
      It is
      understood that Russoil Stock will bear the following legend or one that is
      substantially similar to the following legend:

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR UNDER APPLICABLE
      STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
      OF
      UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION, PROVIDED THAT
      THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL (WHICH OPINION IS
      REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING THE AVAILABILITY OF SUCH
      EXEMPTION. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT SECURED BY SUCH SECURITIES TO THE EXTENT PERMITTED BY APPLICABLE FEDERAL
      AND STATE SECURITIES LAWS; and

    

    Any
      legend required by the “blue sky” laws of any state to the extent such laws are
      applicable to the securities represented by the certificate so
      legended.

     

    SECTION
      2.A.06. Gorstovoe
      Holder’s Investor Status.
      The
      Gorstovoe Holder is an (i) “accredited investor” within the meaning of Rule 501
      promulgated under the Securities Act; or (ii) a non-United States persons as
      defined in Regulation S of the Securities Act.

     

    
      
        
        

      

      
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    ARTICLE
      III

    

    Representations
      and Warranties of the Company

     

    In
      order
      to induce Russoil’s Stockholders and the Gorstovoe Holder to enter into this
      Agreement and to consummate the Transactions contemplated hereby, as of the
      date
      hereof and as of the Closing Date, the Company hereby represents and warrants
      to
      Russoil that the statements contained in this Article
      III
      are true
      and correct, subject to those exceptions set forth in the disclosure schedules
      attached hereto and delivered to Russoil on the date hereof (the “Company
      Disclosure Schedule”).
      The
      Company Disclosure Schedule with respect to this Article III will be arranged
      in
      paragraphs corresponding to the numbered and lettered paragraphs contained
      in
      this Article III. Any matter disclosed in a numbered and lettered section of
      the
      Company Disclosure Schedule shall be deemed to be disclosed in other locations
      throughout the Company Disclosure Schedule to the extent such disclosure is
      reasonably apparent:

     

    SECTION
      3.01.  Organization,
      Standing and Power.
      The
      Company is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction in which it is organized and possesses all governmental
      franchises, licenses, permits, authorizations and approvals necessary to enable
      it to own, lease or otherwise hold its properties and assets and to conduct
      its
      businesses as presently conducted, other than such franchises, licenses,
      permits, authorizations and approvals the lack of which, individually or in
      the
      aggregate, has not had and would not reasonably be expected to have a material
      adverse effect on the Company, a material adverse effect on the ability of
      the
      Company to perform its obligations under this Agreement or on the ability of
      the
      Company to consummate the Transactions (a “Company
      Material Adverse Effect”).
      The
      Company is duly qualified to do business in each jurisdiction where the nature
      of its business or its ownership or leasing of its properties make such
      qualification necessary except where the failure to so qualify would not
      reasonably be expected to have a Company Material Adverse Effect. The Company
      has delivered to Russoil true and complete copies of the Charter, Constituent
      Agreement, Registration Certificate, Codes of Statistics and Permit to issue
      shares or actions of the Company and such other constituent instruments of
      the
      Company as may exist, each as amended to the date of this Agreement (as so
      amended, the “Company
      Constituent Instruments”).

      

    SECTION
      3.02. No
      Company Subsidiaries; No Equity Interests.
      Except
      for owning fifty-one percent (51%) of its membership interests of Gorstovoe,
      LLC, the Company does not as of the date of this Agreement own, directly or
      indirectly, any capital stock, membership interest, partnership interest, joint
      venture interest or other equity interest in any person. 

     

    SECTION
      3.03.  Capital
      Structure.
      The
      authorized capital stock of the Company consists of 1,100,000, of which 100,000
      shares are issued and outstanding. Except as set forth above, no shares of
      capital stock or other voting securities of the Company are issued, reserved
      for
      issuance or outstanding. All outstanding shares of the capital stock of the
      Company are duly authorized, validly issued, fully paid and nonassessable and
      not subject to or issued in violation of any purchase option, call option,
      right
      of first refusal, preemptive right, subscription right or any similar right
      under any provision of the applicable corporate laws of the Russian Federation,
      the Company Constituent Instruments or any Contract (as defined in Section
      3.05)
      to
      which the Company is a party or otherwise bound. Except as set forth in this
      Section
      3.03,
      there
      are not any bonds, debentures, notes or other indebtedness of the Company having
      the right to vote (or convertible into, or exchangeable for, securities having
      the right to vote). As of the date of this Agreement, there are not any options,
      warrants, rights, convertible or exchangeable securities, “phantom” stock
      rights, stock appreciation rights, stock-based performance units, commitments,
      Contracts, arrangements or undertakings of any kind to which the Company is
      a
      party or by which it is bound (i) obligating the Company to issue, deliver
      or
      sell, or cause to be issued, delivered or sold, additional shares of capital
      stock or other equity interests in, or any security convertible or exercisable
      for or exchangeable into any capital stock of or other equity interest in,
      the
      Company, (ii) obligating the Company to issue, grant, extend or enter into
      any
      such option, warrant, call, right, security, commitment, contract, arrangement
      or undertaking or (iii) that give any person the right to receive any economic
      benefit or right similar to or derived from the economic benefits and rights
      occurring to holders of the capital stock of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
      3.04.  Authority;
      Execution and Delivery; Enforceability.
      The
      Company has all requisite corporate power and authority to execute and deliver
      this Agreement and to consummate the Transactions. The execution and delivery
      by
      the Company of this Agreement and the consummation by the Company of the
      Transactions have been duly authorized and approved by the Board of Directors
      of
      the Company and no other corporate proceedings on the part of the Company are
      necessary to authorize this Agreement and the Transactions. When executed and
      delivered, this Agreement will be enforceable against the Company in accordance
      with its terms. 

     

    SECTION
      3.05.  No
      Conflicts; Consents.
      

     

    (a) 
      The
      execution and delivery by the Company of this Agreement does not, and the
      consummation of the Transactions and compliance with the terms hereof and
      thereof will not, conflict with, or result in any violation of or default (with
      or without notice or lapse of time, or both) under, or give rise to a right
      of
      termination, cancellation or acceleration of any obligation or to loss of a
      material benefit under, or result in the creation of any Lien upon any of the
      properties or assets of the Company under, any provision of (i) the Company
      Constituent Instruments or, (ii) any material contract, lease, license,
      indenture, note, bond, agreement, permit, concession, franchise or other
      instrument (a “Contract”)
      to
      which the Company is a party or by which its properties or assets is bound
      or
      (iii) any material judgment, order or decree (“Judgment”)
      or
      material Law applicable to the Company or its properties or assets, other than,
      in the case of clauses (ii) and (iii) above, any such items that, individually
      or in the aggregate, have not had and would not reasonably be expected to have
      a
      Company Material Adverse Effect.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b) 
      Except
      for required filings with the Securities and Exchange Commission (the
“SEC”)
      and
      applicable “blue sky” or state securities commissions, no material consent,
      approval, license, permit, order or authorization (“Consent”)
      of, or
      registration, declaration or filing with, or permit from, any Governmental
      Entity is required to be obtained or made by or with respect to the Company
      in
      connection with the execution, delivery and performance of this Agreement or
      the
      consummation of the Transactions.

     

    SECTION
      3.06.  Taxes.
      

     

    (a) 
      The
      Company has timely filed, or has caused to be timely filed on its behalf, all
      Tax Returns required to be filed by it, and all such Tax Returns are true,
      complete and accurate, except to the extent any failure to file or any
      inaccuracies in any filed Tax Returns, individually or in the aggregate, have
      not had and would not reasonably be expected to have a Company Material Adverse
      Effect. All Taxes shown to be due on such Tax Returns, or otherwise owed, have
      been timely paid, except to the extent that any failure to pay, individually
      or
      in the aggregate, has not had and would not reasonably be expected to have
      a
      Company Material Adverse Effect. There are no unpaid taxes in any material
      amount claimed to be due by the taxing authority of any jurisdiction, and the
      officers of the Company know of no basis for any such claim.

     

    (b)  The
      Company Financial Statements (as defined in Section
      3.15)
      reflect
      an adequate reserve for all Taxes payable by the Company (in addition to any
      reserve for deferred Taxes to reflect timing differences between book and Tax
      items) for all Taxable periods and portions thereof through the date of such
      financial statements. No deficiency with respect to any Taxes has been proposed,
      asserted or assessed against the Company, and no requests for waivers of the
      time to assess any such Taxes are pending, except to the extent any such
      deficiency or request for waiver, individually or in the aggregate, has not
      had
      and would not reasonably be expected to have a Company Material Adverse
      Effect.

     

    (c)  For
      purposes of this Agreement:

     

    “Taxes”
      includes all forms of taxation, whenever created or imposed, and whether of
      the
      United States or elsewhere, and whether imposed by a local, municipal,
      governmental, state, foreign, federal or other Governmental Entity, or in
      connection with any agreement with respect to Taxes, including all interest,
      penalties and additions imposed with respect to such amounts.

     

    “Tax
      Return”
means
      all federal, state, local, regional, provincial and foreign Tax returns,
      declarations, statements, reports, schedules, forms and information returns
      and
      any amended Tax return relating to Taxes.

      

    SECTION
      3.07.  Benefit
      Plans.
      The
      Company does not have or maintain any collective bargaining agreement or any
      bonus, pension, profit sharing, deferred compensation, incentive compensation,
      stock ownership, stock purchase, stock option, phantom stock, retirement,
      vacation, severance, disability, death benefit, hospitalization, medical or
      other plan, arrangement or understanding (whether or not legally binding)
      providing benefits to any current or former employee, officer or director of
      the
      Company (collectively, “Company
      Benefit Plans”).
      As of
      the date of this Agreement there are not any severance or termination agreements
      or arrangements between the Company and any current or former employee, officer
      or director of the Company, nor does the Company have any general severance
      plan
      or policy.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SECTION
      3.08.  Litigation.
      There
      is no action, suit, inquiry, notice of violation, proceeding (including any
      partial proceeding such as a deposition) or investigation pending or threatened
      in writing against or affecting the Company, or any of its properties before
      or
      by any court, arbitrator, governmental or administrative agency, regulatory
      authority (“Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      this Agreement or (ii) could, if there were an unfavorable decision,
      individually or in the aggregate, have or reasonably be expected to have a
      Company Material Adverse Effect. Neither the Company, nor any director or
      officer thereof (in his or her capacity as such), is or has been the subject
      of
      any Action involving a claim or violation of or liability under any securities
      laws or a claim of breach of fiduciary duty.

     

    SECTION
      3.09.  Compliance
      with Applicable Laws.
      The
      Company is in compliance with all applicable Laws, including those relating
      to
      occupational health and safety and the environment, except for instances of
      noncompliance that, individually and in the aggregate, have not had and would
      not reasonably be expected to have a Company Material Adverse Effect. The
      Company has not received any written communication during the past two years
      from a Governmental Entity that alleges that the Company is not in compliance
      in
      any material respect with any applicable Law. This Section
      3.09
      does not
      relate to matters with respect to Taxes, which are the subject of Section
      3.06.

     

    SECTION
      3.10.  INTENTIONALLY OMITTED.

      

    SECTION
      3.11.  Contracts.
      Except
      as disclosed in Section
      3.11
      of the
      Company Disclosure Schedule, there are no Contracts that are material to the
      business, properties, assets, condition (financial or otherwise), results of
      operations or prospects of the Company. The Company is not in violation of
      or in
      default under (nor does there exist any condition which upon the passage of
      time
      or the giving of notice would cause such a violation of or default under) any
      Contract to which it is a party or by which it or any of its properties or
      assets is bound, except for violations or defaults that would not, individually
      or in the aggregate, reasonably be expected to result in a Company Material
      Adverse Effect.

     

    SECTION
      3.12.  Title
      to Properties.
      The
      Company does not own any real property. The Company has sufficient title to,
      or
      valid leasehold interests in, all of its properties and assets used in the
      conduct of its businesses. All such assets and properties, other than assets
      and
      properties in which the Company has leasehold interests, are free and clear
      of
      all Liens except for Liens that, in the aggregate, do not and will not
      materially interfere with the ability of the Company and the Company
      Subsidiaries to conduct business as currently conducted.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    SECTION
      3.13.  Intellectual
      Property.
      The
      Company owns, or is validly licensed or otherwise have the right to use, all
      patents, patent rights, trademarks, trademark rights, trade names, trade name
      rights, service marks, service mark rights, copyrights and other proprietary
      intellectual property rights and computer programs (collectively, “Intellectual
      Property Rights”)
      which
      are material to the conduct of the business of the Company. Section
      3.13
      of the
      Company Disclosure Schedule sets forth a description of all Intellectual
      Property Rights which are material to the conduct of the business of the
      Company. There are no claims pending or, to the knowledge of the Company,
      threatened that the Company is infringing or otherwise adversely affecting
      the
      rights of any person with regard to any Intellectual Property Right. To the
      knowledge of the Company, no person is infringing the rights of the Company
      with
      respect to any Intellectual Property Right.

     

    SECTION
      3.14.  Labor
      Matters.
      There
      are no collective bargaining or other labor union agreements to which the
      Company is a party or by which any of them is bound. No material labor dispute
      exists or, to the knowledge of the Company, is imminent with respect to any
      of
      the employees of the Company.

     

    SECTION
      3.15.  Financial
      Statements.
      Prior
      to the Closing the Company will deliver to Russoil, its audited consolidated
      financial statements for the fiscal period of time commencing with its inception
      to a date within sixty days of the closing. (collectively, the “Company
      Financial Statements”).
      Upon
      delivery, the Company Financial Statements will have been prepared in accordance
      with generally accepted accounting principles applied on a consistent basis
      throughout the periods indicated and in respect of interim periods subject
      to
      year end adjustments. The Company Financial Statements will fairly present
      in
      all material respects the financial condition and operating results of the
      Company, as of the dates, and for the periods, indicated therein. The Company
      will not have any material liabilities or obligations, contingent or otherwise,
      other than (i) liabilities incurred in the ordinary course of business
      subsequent to December 31, 2006, and (ii) obligations under contracts and
      commitments incurred in the ordinary course of business and not required under
      generally accepted accounting principles to be reflected in the Company
      Financial Statements, which, in both cases, individually and in the aggregate
      would not be reasonably expected to result in a Company Material Adverse
      Effect.

      

    SECTION
      3.16.  Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as are prudent and customary in the
      businesses in which the Company is engaged and in the geographic areas where
      it
      engages in such businesses. The Company has no reason to believe that it will
      not be able to renew its existing insurance coverage as and when such coverage
      expires or to obtain similar coverage from similar insurers as may be necessary
      to continue its business on terms consistent with market for the Company’s lines
      of business.

     

    
      
        
        

      

      
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    SECTION
      3.17.  Transactions
      With Affiliates and Employees.
      Except
      as set forth in the Company Financial Statements, none of the officers or
      directors of the Company and, to the knowledge of the Company, none of the
      employees of the Company is presently a party to any transaction with the
      Company (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, any entity in which any officer, director, or
      any
      such employee has a substantial interest or is an officer, director, trustee
      or
      partner.

     

    SECTION
      3.18.  Internal
      Accounting Controls.
      The
      Company maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles and to maintain asset accountability,
      (iii) access to assets is permitted only in accordance with management's general
      or specific authorization, and (iv) the recorded accountability for assets
      is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences. The Company has established disclosure
      controls and procedures for the Company and designed such disclosure controls
      and procedures to ensure that material information relating to the Company,
      is
      made known to the officers by others within those entities. The Company's
      officers have evaluated the effectiveness of the Company's controls and
      procedures. Since December 31, 2006, there have been no significant changes
      in
      the Company’s internal controls or, to the Company's knowledge, in other factors
      that could significantly affect the Company's internal controls.

     

    SECTION
      3.19.  Solvency.
      Based
      on the financial condition of the Company as of the Closing Date and after
      giving effect to the Closing, (i) the Company's fair saleable value of its
      assets exceeds the amount that will be required to be paid on or in respect
      of
      the Company's existing debts and other liabilities (including known contingent
      liabilities) as they mature, (ii) the Company's assets do not constitute
      unreasonably small capital to carry on its business for the current fiscal
      year
      as now conducted and as proposed to be conducted including its capital needs
      taking into account the particular capital requirements of the business
      conducted by the Company, and projected capital requirements and capital
      availability thereof, and (iii) the current cash flow of the Company, together
      with the proceeds the Company would receive, were it to liquidate all of its
      assets, after taking into account all anticipated uses of the cash, would be
      sufficient to pay all amounts on or in respect of its debt when such amounts
      are
      required to be paid. The Company does not intend to incur debts beyond its
      ability to pay such debts as they mature (taking into account the timing and
      amounts of cash to be payable on or in respect of its debt).

     

    
      
        
        

      

      
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    SECTION
      3.20.  Application
      of Takeover Protections.
      The
      Company has taken all necessary action, if any, in order to render inapplicable
      any control share acquisition, business combination, poison pill (including
      any
      distribution under a rights agreement) or other similar anti-takeover provision
      under the Company's charter documents or the laws of the jurisdiction of the
      Company’s incorporation that is or could become applicable to the Stockholders
      as a result of the Stockholders and the Company fulfilling their obligations
      or
      exercising their rights under this Agreement. 

     

    SECTION
      3.21.  No
      Additional Agreements.
      The
      Company has no agreement or understanding with any Stockholder with respect
      to
      the transactions contemplated by this Agreement other than as specified in
      this
      Agreement.

     

    SECTION
      3.22.  Investment
      Company.
      The
      Company is, and is not an affiliate of, and immediately following the Closing
      will not have become, an “investment company” within the meaning of the
      Investment Company Act of 1940, as amended.

     

    SECTION
      3.23.  Disclosure.
      All
      disclosure regarding the Company, its business and the transactions contemplated
      hereby, furnished by or on behalf of the Company (including the Company’s
      representations and warranties set forth in this Agreement) are true and correct
      and do not contain any untrue statement of a material fact or omit to state
      any
      material fact necessary in order to make the statements made therein, in light
      of the circumstances under which they were made, not misleading.

     

    SECTION
      3.24.  Information
      Supplied.
      None of
      the information supplied or to be supplied by the Company for inclusion or
      incorporation by reference in the notice that is required to be sent to the
      stockholders of Russoil pursuant to Rule 14f-1 (the “14f-1
      Notice”)
      promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange
      Act”),
      will,
      at the date it is first mailed to Russoil’s stockholders, contain any untrue
      statement of a material fact or omit to state any material fact required to
      be
      stated therein or necessary in order to make the statements therein, in light
      of
      the circumstances under which they are made, not misleading. 

      

    SECTION
      3.25.  Absence
      of Certain Changes or Events.
      Except
      as disclosed in the Company Financial Statements, from December 31, 2006 to
      the
      date of this Agreement, the Company has conducted its business only in the
      ordinary course, and during such period there has not been:

     

    (a)  any
      change in the assets, liabilities, financial condition or operating results
      of
      the Company, except changes in the ordinary course of business that have not
      caused, in the aggregate, a Company Material Adverse Effect;

     

    (b)  any
      damage, destruction or loss, whether or not covered by insurance, that would
      have a Company Material Adverse Effect;

     

    (c)  any
      waiver or compromise by the Company of a valuable right or of a material debt
      owed to it;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d)  any
      satisfaction or discharge of any lien, claim, or encumbrance or payment of
      any
      obligation by the Company, except in the ordinary course of business and the
      satisfaction or discharge of which would not have a Company Material Adverse
      Effect;

     

    (e)  any
      material change to a material Contract by which the Company or any of its
      respective assets is bound or subject;

     

    (f)  any
      mortgage, pledge, transfer of a security interest in, or lien, created by the
      Company, with respect to any of its material properties or assets, except liens
      for taxes not yet due or payable and liens that arise in the ordinary course
      of
      business and do not materially impair the Company’s ownership or use of such
      property or assets;

     

    (g)  any
      loans
      or guarantees made by the Company to or for the benefit of its employees,
      officers or directors, or any members of their immediate families, other than
      travel advances and other advances made in the ordinary course of its
      business;

     

    (h)  any
      alteration of the Company’s method of accounting or the identity of its
      auditors; 

     

    (i)  any
      declaration or payment of dividend or distribution of cash or other property
      to
      the Stockholders or any purchase, redemption or agreements to purchase or redeem
      any shares of Company Stock; 

     

    (j)  any
      issuance of equity securities to any officer, director or
      affiliate;

     

    (k)  any
      arrangement or commitment by the Company to do any of the things described
      in
      this Section 3.25.

     

    SECTION
      3.26.  No
      Undisclosed Events, Liabilities, Developments or Circumstances.
      No
      event, liability, development or circumstance has occurred or exists, or is
      contemplated to occur with respect to the Company, its respective business,
      properties, prospects, operations or financial condition, that would be required
      to be disclosed by the Company under applicable securities laws on a
      registration statement on SB-2 (or S-1 if SB-2 is unavailable to Russoil or
      any
      form substituting therefor or the equivalent thereof) filed with the SEC
      relating to an issuance and sale by the Company of its Common Stock and which
      has not been publicly announced or will not be publicly announced in the current
      report on Form 8-K that will be filed by Russoil at the Closing.

     

    SECTION
      3.27.  Foreign
      Corrupt Practices.
      Neither
      the Company, nor, to the Company’s knowledge, any director, officer, agent,
      employee or other person acting on behalf of the Company has, in the course
      of
      its actions for, or on behalf of, the Company (i) used any corporate funds
      for
      any unlawful contribution, gift, entertainment or other unlawful expenses
      relating to political activity; (ii) made any direct or indirect unlawful
      payment to any foreign or domestic government official or employee from
      corporate funds; (iii) violated or is in violation of any provision of the
      U.S.
      Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful
      bribe, rebate, payoff, influence payment, kickback or other unlawful payment
      to
      any foreign or domestic government official or employee.

     

    
      
        
        

      

      
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    ARTICLE
      IV

    

    Representations
      and Warranties of Russoil

     

    In
      order
      to induce the Company to enter into this Agreement and to consummate the
      transactions contemplated hereby, as of the date hereof and as of the Closing
      Date, Russoil hereby represents and warrant to each of the Stockholders, the
      Company and the Gorstovoe Holder that the statements contained in this Article
      IV are true and correct subject to those exceptions set forth in the disclosure
      schedules attached hereto and delivered to the Company on the date hereof (the
      “Russoil
      Disclosure Schedule”).
      The
      Russoil Disclosure Schedule with respect to this Article IV will be arranged
      in
      paragraphs corresponding to the numbered and lettered paragraphs contained
      in
      this Article IV. Any matter disclosed in a numbered and lettered section of
      the
      Russoil Disclosure Schedule shall be deemed to be disclosed in other locations
      throughout the Russoil Disclosure Schedule to the extent such disclosure is
      reasonably apparent: 

     

    SECTION
      4.01.  Organization,
      Standing and Power.
      Russoil
      is duly organized, validly existing and in good standing under the laws of
      the
      State of Nevada. Russoil has delivered to the Company and the Gorstovoe Holder
      (i) true and complete copies of the certificate or articles of incorporation
      of
      Russoil, as amended to the date of this Agreement (as so amended, the
“Russoil
      Charter”),
      and
      the Bylaws of Russoil, as amended to the date of this Agreement (as so amended,
      the “Russoil
      Bylaws”).
      

     

    SECTION
      4.02. No
      Subsidiaries; No Equity Interests.
      Russoil
      does not own, directly or indirectly, any capital stock, membership interest,
      partnership interest, joint venture interest or other equity interest in any
      person. 

    

    SECTION
      4.03. Capital
      Structure.
      The
      authorized capital stock of Russoil consists of 14,250,000,000 shares of Common
      Stock, $0.0001 par value per share, and 5,000,000 shares of preferred stock,
      $0.0001 par value. As of the date hereof (i) 342,000,000 shares of the Russoil
      Common Stock are issued and outstanding, (ii) no shares of preferred stock
      are
      outstanding and (iii) no shares of the Russoil Common Stock or preferred stock
      are held by Russoil in its treasury. All of said shares are fully paid and
      nonassessable and not subject to or issued in violation of any purchase option,
      call option, right of first refusal, preemptive right, subscription right or
      any
      similar right under any provision as relating to Russoil, the General
      Corporation Law of the State of Nevada, the Russoil Charter, the Russoil Bylaws
      or any Contract to which Russoil is a party or otherwise bound. As of the date
      of this Agreement, there are not any options, warrants, rights, convertible
      or
      exchangeable securities, “phantom” stock rights, stock appreciation rights,
      stock-based performance units, commitments, Contracts, arrangements or
      undertakings of any kind. The stockholder list to be provided at closing to
      the
      Company shall be a current shareholder list generated by its stock transfer
      agent, and such list shall accurately reflect all of the issued and outstanding
      shares of Russoil’s Common Stock.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

      

    SECTION
      4.04.  Authority;
      Execution and Delivery; Enforceability.
      The
      execution and delivery by Russoil of this Agreement and the consummation by
      Russoil of the Transactions have been duly authorized and approved by the Board
      of Directors and the shareholders of Russoil, as applicable, and no other
      corporate proceedings on the part of Russoil is necessary to authorize this
      Agreement and the Transactions. This Agreement constitutes a legal, valid and
      binding obligation of the Selling Parties, enforceable against them in
      accordance with the terms hereof. 

     

    SECTION
      4.05.  No
      Conflicts; Consents.
      

     

    (a)  
      The
      execution and delivery by Russoil of this Agreement, does not, and the
      consummation of the Transactions and compliance with the terms hereof and
      thereof will not, conflict with, or result in any violation of or default (with
      or without notice or lapse of time, or both) under, or give rise to a right
      of
      termination, cancellation or acceleration of any obligation or to loss of a
      material benefit under, or to increased, additional, accelerated or guaranteed
      rights or entitlements of any person under, or result in the creation of any
      Lien upon any of the properties or assets of Russoil under, any provision of
      (i)
      Russoil Charter, Russoil Bylaws, (ii) any Material Contract to Russoil is a
      party or by which any of its properties or assets is bound or (iii) subject
      to
      the filings and other matters referred to in Section
      4.05(b),
      any
      material Judgment or material Law applicable to Russoil’s properties or assets,
      other than, in the case of clauses (ii) and (iii) above, any such items that,
      individually or in the aggregate, have not had and would not reasonably be
      expected to have a Russoil Material Adverse Effect.

      

    (b)  No
      Consent of, or registration, declaration or filing with, or permit from, any
      Governmental Entity is required to be obtained or made by or with Russoil in
      connection with the execution, delivery and performance of this Agreement or
      the
      consummation of the Transactions, other than the (A) filing with the SEC of
      a
      14f-1 Notice and (B) filing with the SEC of reports under Sections 13 and 16
      of
      the Exchange Act, and (C) filings under state “blue sky” laws, as may be
      required in connection with this Agreement and the Transactions. 

     

    SECTION
      4.06.  SEC
      Documents; Undisclosed Liabilities.
      

     

    (a)  Russoil
      has filed all reports, schedules, forms, statements and other documents required
      to be filed by Russoil with the SEC since September 5, 2006, pursuant to
      Sections 13(a), 14 (a) and 15(d) of the Exchange Act (the “Russoil
      SEC Documents”).

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b)  As
      of its
      respective filing date, each Russoil SEC Document complied in all material
      respects with the requirements of the Exchange Act and the rules and regulations
      of the SEC promulgated thereunder applicable to such Russoil SEC Document,
      and
      did not contain any untrue statement of a material fact or omit 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. Except to the extent that information contained in any Russoil
      SEC Document has been revised or superseded by a later filed Russoil SEC
      Document, none of the Russoil SEC Documents contains any untrue statement of
      a
      material fact or omits to state any 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 Russoil included in the Russoil SEC Documents comply as to form
      in
      all material respects with applicable accounting requirements and the published
      rules and regulations of the SEC with respect thereto, have been prepared in
      accordance with the U.S. generally accepted accounting principals (“GAAP”)
      (except, in the case of unaudited statements, as permitted by the rules and
      regulations of the SEC) applied on a consistent basis during the periods
      involved (except as may be indicated in the notes thereto) and fairly present
      the financial position of Russoil as of the dates thereof and the results of
      its
      operations and cash flows for the periods shown (subject, in the case of
      unaudited statements, to normal year-end audit adjustments).

      

    (c)  Except
      as
      set forth in the Russoil SEC Documents, Russoil has no liabilities or
      obligations of any nature (whether accrued, absolute, contingent or otherwise)
      required by GAAP to be set forth on a balance sheet of Russoil or in the notes
      thereto. Section
      4.06(c)
      of the
      Russoil Disclosure Schedule, sets forth all financial and contractual
      obligations and liabilities (including any obligations to issue capital stock
      or
      other securities of Russoil) due after the date hereof. As of the date hereof
      Russoil has total liabilities of less than $35,000, all of which liabilities
      shall be paid off at or prior to the Closing and shall in no event remain
      liabilities of Russoil, the Company or the Stockholders following the
      Closing.

     

    (d)  Since
      the
      date of the latest audited financial statements included within the Russoil
      SEC
      Documents, except as specifically disclosed in the Russoil SEC Documents,
      Russoil has not changed its auditors and Russoil does not have pending before
      the SEC any request for confidential treatment of information.

    

    SECTION
      4.07. INTENTIONALLY
      OMITTED.

    

    SECTION
      4.08.  Absence
      of Certain Changes or Events.
      Except
      as disclosed in the Russoil SEC Documents, from the date of the most recent
      audited financial statements included in the Russoil SEC Documents to the date
      of this Agreement, Russoil, conducted its business only in the ordinary course,
      and during such period there has not been:

     

    (a)  any
      change in the assets, liabilities, financial condition or operating results
      of
      Russoil from that reflected in the Russoil SEC Documents, except changes in
      the
      ordinary course of business that have not caused, in the aggregate, a Russoil
      Material Adverse Effect;

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (b)  any
      damage, destruction or loss, whether or not covered by insurance, that would
      have a Russoil Material Adverse Effect;

     

    (c)  any
      waiver or compromise by Russoil of a valuable right or of a material debt owed
      to it;

     

    (d)  any
      satisfaction or discharge of any lien, claim, or encumbrance or payment of
      any
      obligation by Russoil, except in the ordinary course of business and the
      satisfaction or discharge of which would not have a Russoil Material Adverse
      Effect;

     

    (e)  any
      material change to a material Contract by which Russoil or any of its assets
      is
      bound or subject;

     

    (f)  any
      material change in any compensation arrangement or agreement with any employee,
      officer, director or stockholder;

     

    (g)  any
      resignation or termination of employment of any officer of Russoil;

     

    (h)  any
      mortgage, pledge, transfer of a security interest in, or lien, created by
      Russoil, with respect to any of its material properties or assets, except liens
      for taxes not yet due or payable and liens that arise in the ordinary course
      of
      business and do not materially impair Russoil’s ownership or use of such
      property or assets;

     

    (i)  any
      loans
      or guarantees made by Russoil to or for the benefit of its employees, officers
      or directors, or any members of their immediate families, other than travel
      advances and other advances made in the ordinary course of its
      business;

     

    (j)  any
      declaration, setting aside or payment or other distribution in respect of any
      of
      Russoil’s capital stock, or any direct or indirect redemption, purchase, or
      other acquisition of any of such stock by Russoil; 

     

    (k)  any
      alteration of Russoil’s method of accounting or the identity of its auditors;

     

    (l)  any
      issuance of equity securities to any officer, director or affiliate;
      or

     

    (m)  any
      arrangement or commitment by Russoil to do any of the things described in this
      Section
      4.08.

     

    SECTION
      4.09.  Taxes.
      

     

    (a)  Russoil
      has timely filed, or has caused to be timely filed on its behalf, all Tax
      Returns required to be filed by it, and all such Tax Returns are true, complete
      and accurate, except to the extent any failure to file or any inaccuracies
      in
      any filed Tax Returns, individually or in the aggregate, have not had and would
      not reasonably be expected to have a Russoil Material Adverse Effect. All Taxes
      shown to be due on such Tax Returns, or otherwise owed, has been timely paid,
      except to the extent that any failure to pay, individually or in the aggregate,
      has not had and would not reasonably be expected to have a Russoil Material
      Adverse Effect.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b)  The
      most
      recent financial statements contained in the Russoil SEC Documents reflect
      an
      adequate reserve for all Taxes payable by Russoil (in addition to any reserve
      for deferred Taxes to reflect timing differences between book and Tax items)
      for
      all Taxable periods and portions thereof through the date of such financial
      statements. No deficiency with respect to any Taxes has been proposed, asserted
      or assessed against Russoil, and no requests for waivers of the time to assess
      any such Taxes are pending, except to the extent any such deficiency or request
      for waiver, individually or in the aggregate, has not had and would not
      reasonably be expected to have a Russoil Material Adverse Effect.

      

    (c)  There
      are
      no Liens for Taxes (other than for current Taxes not yet due and payable) on
      the
      assets of Russoil. Russoil is not bound by any agreement with respect to
      Taxes.

     

    SECTION
      4.10.  Absence
      of Changes in Benefit Plans.
      From
      the date of the most recent audited financial statements included in the Russoil
      SEC Documents to the date of this Agreement, there has not been any adoption
      or
      amendment in any material respect by Russoil of any collective bargaining
      agreement or any bonus, pension, profit sharing, deferred compensation,
      incentive compensation, stock ownership, stock purchase, stock option, phantom
      stock, retirement, vacation, severance, disability, death benefit,
      hospitalization, medical or other plan, arrangement or understanding (whether
      or
      not legally binding) providing benefits to any current or former employee,
      officer or director of Russoil (collectively, “Russoil
      Benefit Plans”).
      As of
      the date of this Agreement there are not any employment, consulting,
      indemnification, severance or termination agreements or arrangements between
      Russoil and any current or former employee, officer or director of Russoil,
      nor
      does Russoil have any general severance plan or policy.

     

    SECTION
      4.11.  ERISA
      Compliance; Excess Parachute Payments.
      Russoil
      has, and since its inception has never had, maintained, or contributed to any
      “employee pension benefit plans” (as defined in Section 3(2) of ERISA),
“employee welfare benefit plans” (as defined in Section 3(1) of ERISA) or any
      other Russoil Benefit Plan for the benefit of any current or former employees,
      consultants, officers or directors of Russoil. 

     

    SECTION
      4.12.  Litigation.
      Except
      as disclosed in the Russoil SEC Documents, there is no Action which (i)
      adversely affects or challenges the legality, validity or enforceability of
      any
      of this Agreement or the Shares or (ii) could, if there were an unfavorable
      decision, individually or in the aggregate, have or reasonably be expected
      to
      result in a Russoil Material Adverse Effect. There has not been, and to the
      knowledge of Russoil, there is not pending any investigation by the SEC
      involving Russoil or any current or former director or officer of Russoil (in
      his or her capacity as such). The SEC has not issued any stop order or other
      order suspending the effectiveness of any registration statement filed by
      Russoil under the Exchange Act or the Securities Act. Neither Russoil nor any
      subsidiary, nor any director or officer thereof (in his or her capacity as
      such), is or has been the subject of any Action involving a claim or violation
      of or liability under federal or state securities laws or a claim of breach
      of
      fiduciary duty.

     

    
      
        
        

      

      
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    SECTION
      4.13.  Compliance
      with Applicable Laws.
      Except
      as disclosed in the Russoil SEC Documents, Russoil is in compliance with all
      applicable Laws, including those relating to occupational health and safety
      and
      the environment, except for instances of noncompliance that, individually and
      in
      the aggregate, have not had and would not reasonably be expected to have a
      Russoil Material Adverse Effect. Except as set forth in the Russoil SEC
      Documents, Russoil has not received any written communication during the past
      two years from a Governmental Entity that alleges that such Company is not
      in
      compliance in any material respect with any applicable Law. Russoil is in
      compliance with all effective requirements of the Sarbanes-Oxley Act of 2002,
      as
      amended, and the rules and regulations thereunder, that are applicable to it,
      except where such noncompliance could not have or reasonably be expected to
      result in a Russoil Material Adverse Effect. This Section
      4.13
      does not
      relate to matters with respect to Taxes, which are the subject of Section
      4.09.

      

    SECTION
      4.14.  Contracts.
      Except
      as disclosed in the Russoil SEC Documents, there are no Contracts that are
      material to the business, properties, assets, condition (financial or
      otherwise), results of operations or prospects of Russoil. Russoil is not in
      violation of or in default under (nor does there exist any condition which
      upon
      the passage of time or the giving of notice would cause such a violation of
      or
      default under) any Contract to which it is a party or by which it or any of
      its
      properties or assets is bound, except for violations or defaults that would
      not,
      individually or in the aggregate, reasonably be expected to result in a Russoil
      Material Adverse Effect.

     

    SECTION
      4.15.  Title
      to Properties.
      Russoil
      has good title to, or valid leasehold interests in, all of its properties and
      assets used in the conduct of its businesses. All such assets and properties,
      other than assets and properties in which Russoil has leasehold interests,
      are
      free and clear of all Liens except for Liens that, in the aggregate, do not
      and
      will not materially interfere with the ability of Russoil to conduct business
      as
      currently conducted. Russoil has complied in all material respects with the
      terms of all material leases to which it is a party and under which it is in
      occupancy, and all such leases are in full force and effect. Russoil enjoys
      peaceful and undisturbed possession under all such material leases.

     

    SECTION
      4.16.  Intellectual
      Property.
      Russoil
      owns, or is validly licensed or otherwise has the right to use, all Intellectual
      Property Rights which are material to the conduct of its business taken as
      a
      whole. No claims are pending or, to the knowledge of Russoil, threatened that
      Russoil is infringing or otherwise adversely affecting the rights of any person
      with regard to any Intellectual Property Right. To the knowledge of Russoil,
      no
      person is infringing the rights of Russoil with respect to any Intellectual
      Property Right.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.17.  Labor
      Matters.
      There
      are no collective bargaining or other labor union agreements to which Russoil
      is
      a party or by which it is bound. No material labor dispute exists or, to the
      knowledge of Russoil, is imminent with respect to any of the employees of
      Russoil.

      

    SECTION
      4.18. INTENTIONALLY
      OMITTTED. 

     

    SECTION
      4.19.  Transactions
      With Affiliates and Employees.
      Except
      as set forth in the Russoil SEC Documents, none of the officers or directors
      of
      Russoil and, to the knowledge of Russoil, none of the employees of Russoil
      is
      presently a party to any transaction with Russoil (other than for services
      as
      employees, officers and directors), including any contract, agreement or other
      arrangement providing for the furnishing of services to or by, providing for
      rental of real or personal property to or from, or otherwise requiring payments
      to or from any officer, director or such employee or, to the knowledge of
      Russoil, any entity in which any officer, director, or any such employee has
      a
      substantial interest or is an officer, director, trustee or
      partner.

     

    SECTION
      4.20.  Internal
      Accounting Controls.
      Russoil
      maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles as applied in the United States and
      to
      maintain asset accountability, (iii) access to assets is permitted only in
      accordance with management's general or specific authorization, and (iv) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate action is taken with respect to any
      differences. Russoil has established disclosure controls and procedures and
      designed such disclosure controls and procedures to ensure that material
      information is made known to its officers. Russoil’s officers have evaluated the
      effectiveness of the controls and procedures. Since December 31, 2006, there
      have been no significant changes in the internal controls or, to Russoil’s
      knowledge, in other factors that could significantly affect the internal
      controls. 

     

    SECTION
      4.21.  Solvency.
      Based
      on the financial condition of Russoil as of the closing date (and assuming
      that
      the closing shall have occurred), (i) Russoil’s fair saleable value of its
      assets exceeds the amount that will be required to be paid on or in respect
      of
      such company’s existing debts and other liabilities (including known contingent
      liabilities) as they mature, (ii) Russoil’s assets do not constitute
      unreasonably small capital to carry on its business for the current fiscal
      year
      as now conducted and as proposed to be conducted including its capital needs
      taking into account the particular capital requirements of the business
      conducted by such company, and projected capital requirements and capital
      availability thereof, and (iii) Russoil’s current cash flow, together with the
      proceeds such company would receive, were it to liquidate all of its assets,
      after taking into account all anticipated uses of the cash, would be sufficient
      to pay all amounts on or in respect of its debt when such amounts are required
      to be paid. Russoil does not intend to incur debts beyond its ability to pay
      such debts as they mature (taking into account the timing and amounts of cash
      to
      be payable on or in respect of its debt).

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.22.  Application
      of Takeover Protections.
      Russoil
      has taken all necessary action, if any, in order to render inapplicable any
      control share acquisition, business combination, poison pill (including any
      distribution under a rights agreement) or other similar anti-takeover provision
      under the Russoil’s charter documents or the laws of its state of incorporation
      that is or could become applicable to the Stockholders as a result of the
      Stockholders and Russoil fulfilling their obligations or exercising their rights
      under this Agreement, including, without limitation, the issuance of the Shares
      to the Gorstovoe Holder and his ownership of the Shares.

      

    SECTION
      4.23.  No
      Additional Agreements.
      Russoil
      does not have any agreement or understanding with the Gorstove Holder with
      respect to the transactions contemplated by this Agreement other than as
      specified in this Agreement.

     

    SECTION
      4.24.  Investment
      Company.
      Russoil
      is not, and is not an affiliate of, and immediately following the Closing will
      not have become, an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended.

     

    SECTION
      4.25.  Disclosure.
      All
      disclosure provided to the Gorstovoe Holder regarding Russoil, its business
      and
      the transactions contemplated hereby, furnished by or on behalf of Russoil
      (including the their representations and warranties set forth in this Agreement)
      are true and correct and do not contain any untrue statement of a material
      fact
      or omit to state any material fact necessary in order to make the statements
      made therein, in light of the circumstances under which they were made, not
      misleading.

     

    SECTION
      4.26.  Certain
      Registration Matters.
      Except
      as specified in Russoil SEC Documents, Russoil has not granted or agreed to
      grant to any person any rights (including “piggy-back” registration rights) to
      have any securities of Russoil registered with the SEC or any other governmental
      authority that have not been satisfied.

     

    SECTION
      4.27.  Listing
      and Maintenance Requirements.
      Russoil
      is, and has no reason to believe that it will not in the foreseeable future
      continue to be, in compliance with the listing and maintenance requirements
      for
      continued listing of the Russoil Stock on the Over The Counter Bulletin Board
      (“OTCBB”).
      The
      issuance and sale of the Shares under this Agreement does not contravene the
      rules and regulations of the trading market on which Russoil Stock is currently
      eligible for listing or trading.

     

    SECTION
      4.28.  No
      Undisclosed Events, Liabilities, Developments or Circumstances.
      No
      event, liability, development or circumstance has occurred or exists, or is
      contemplated to occur with respect to Russoil or its business, properties,
      prospects, operations or financial condition, that would be required to be
      disclosed by Russoil under applicable securities laws on a registration
      statement on Form SB-2 filed with the SEC relating to an issuance and sale
      by
      Russoil of its Common Stock and which has not been publicly announced will
      not
      be publicly announced in the current report on Form 8-K that will be filed
      by
      the Russoil at the Closing.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.29.  Foreign
      Corrupt Practices.
      To
      Russoil’s knowledge, any director, officer, agent, employee or other person
      acting on behalf of Russoil has, in the course of its actions for, or on behalf
      of, Russoil (i) used any corporate funds for any unlawful contribution, gift,
      entertainment or other unlawful expenses relating to political activity; (ii)
      made any direct or indirect unlawful payment to any foreign or domestic
      government official or employee from corporate funds; (iii) violated or is
      in
      violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977,
      as
      amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment,
      kickback or other unlawful payment to any foreign or domestic government
      official or employee.

     

    ARTICLE
      V

    

    Deliveries

     

    SECTION
      5.01.  Deliveries
      of the Stockholders.
      

     

    (a)  Concurrently
      herewith each Stockholder is delivering to Russoil this Agreement executed
      by
      each of them.

     

    (b)  At
      or
      prior to the Closing, each Stockholder shall deliver to Russoil:

     

    (i)  certificates
      representing his Company Stock; 

     

    (ii)  duly
      executed stock powers for transfer by the Stockholder of his Company Stock
      to
      Russoil; and

    

    (iii) such
      other information and documents as Russoil or its counsel may require, in each
      of their sole discretion, to establish an exemption from registration
      requirements of the Securities Act.

     

    SECTION
      5.02.  Deliveries
      of Russoil.
      

     

    (a)  Concurrently
      herewith, Russoil is delivering to each Stockholder, the Company, and the
      Gorstovoe Holder, a copy of this Agreement and a Voting Agreement both executed
      by Russoil;

      

    (b) At
      or
      prior to the Closing, the Russoil shall deliver:

     

    (i)  to
      the
      Company, a letter of resignation of each of the executive officers and directors
      of Russoil from all offices that they hold with Russoil;

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (ii)  to
      the
      Company, certificates from Russoil, signed by its Secretary or Assistant
      Secretary certifying that the attached copies of the Russoil Charter, Russoil
      Bylaws and resolutions of the Board of Directors of Russoil approving the
      Agreement and the Transactions, are all true, complete and correct and remain
      in
      full force and effect.

     

    

    (iii)  to
      the
      Company, evidence of the election of up to (a) five persons to Russoil’s Board
      of Director’s as shall be designated in writing by the Gorstovoe Holder, one of
      said persons may be the Grostovoe Holder and (b) two persons to Russoil’s Board
      of Director’s as shall be designated in writing by Silvestre Hutchinson, one of
      said persons may be himself.

     

    (iv) 
      to
      the
      Company, such pay-off letters and releases relating to liabilities as the
      Company shall request and such pay-off letters and releases shall be in form
      and
      substance satisfactory to the Company; 

     

    (vi)  to
      the
      Company, the results of UCC, judgment lien and tax lien searches with respect
      to
      Russoil, the results of which indicate no liens on the assets of Russoil;

     

    (v) to
      the
      Company, originals or certified copies of all existing corporate records,
      accounting books and records (including without limitation, journals, schedules,
      work papers, breakdowns, software records), lists of bank accounts and
      signatories thereon, locations of safe deposit boxes with a list of signatories,
      the name, address, contact numbers and contact persons of Russoil’s current
      independent auditors and controller and chief financial officer, and all other
      administrative and financial documentation, files, records of Russoil’s;

     

    (c)  At
      or
      within 5 business days following the Closing, Russoil shall
      deliver:

     

    (i)  to
      the
      Gorstovoe Holder, certificates representing 110,000,000 shares of Russoil’s
      common stock; and

     

    (ii)  to
      the
      Company, consent letters of the accounting firms of Russoil confirming each
      such
      firm’s respective consent to the use by Russoil of reports prepared by such firm
      regarding the financial statements of Russoil in all future registration
      statements filed with the SEC.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    SECTION
      5.03.  Deliveries
      of the Company.
      

     

    (a)  Concurrently
      herewith, the Company is delivering to Russoil this Agreement and the Voting
      Agreement, executed by the Company.

      

    (b)  At
      or
      prior to the Closing, the Company shall deliver:

     

    (i)  To
      Russoil, a form of Current Report on Form 8-K, which is substantially in the
      form to be filed, which includes the financial statements and pro forma
      financial statements required by the Form 8-K for a reverse merger - shell
      transaction, together with a signed audit report of the independent accountants
      for the Company; and

     

    (ii)  a
      certificate from the Company, signed by its authorized officer certifying and
      attaching copies of the Company’s Constituent Instruments and resolutions of the
      Board of Directors of the Company approving the Agreement and the Transactions
      are all true, complete and correct and remain in full force and
      effect.

    

    SECTION
      5.04. Delivery
      by the Gorstovoe Holder.

    

    (a) At
      or
      prior to the closing, the Gorstovoe Holder shall deliver to Russoil and the
      Company, such executed documents and instruments as Russoil and the Company
      shall deem satisfactory to fully discharge the Company’s obligations to pay any
      funds to the Gorstovoe Holder, his heirs, successors and assigns; 

    

    (b) At
      or
      prior to the Closing, the Gorstovoe Holder shall deliver to Fedosov Evgeny,
      such
      executed documents and instrument as Mr. Fedosov Evgeny and Russoil shall deem
      satisfactory to discharge and release the pledge of Fedosov Evgeny of his shares
      of the Company’s Stock; and

    

    (c) At
      or
      prior to the Closing, the Gorstovoe Holder shall deliver to Russoil and
      Silvestre Hutchinson, the executed Voting Agreement.

     

    ARTICLE
      VI

    

    Conditions
      to Closing

    

    SECTION
      6.01.  Stockholder,
      Company and the Gorstovoe Holder Conditions Precedent.
      The
      obligations of the Stockholders, the Company and the Gorstovoe Holder to enter
      into and complete the Closing is subject, at the option of the Stockholders,
      the
      Company, and the Gorstovoe Holder, to the fulfillment on or prior to the Closing
      Date of the following conditions. 

     

    (a)  Representations
      and Covenants.
      The
      representations and warranties of Russoil contained in this Agreement shall
      be
      true in all material respects on and as of the Closing Date with the same force
      and effect as though made on and as of the Closing Date. Russoil shall have
      performed and complied in all material respects with all covenants and
      agreements required by this Agreement to be performed or complied with by such
      parties on or prior to the Closing Date. Russoil shall have delivered to the
      Stockholders, the Company, and the Gorstovoe Holder, a certificate, dated the
      Closing Date, to the foregoing effect. 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (b)  Litigation.
      No
      action, suit or proceeding shall have been instituted before any court or
      governmental or regulatory body or instituted or threatened by any governmental
      or regulatory body to restrain, modify or prevent the carrying out of the
      Transactions or to seek damages or a discovery order in connection with such
      Transactions, or which has or may have, in the reasonable opinion of the
      Company, a materially adverse effect on the assets, properties, business,
      operations or condition (financial or otherwise) of the Company. 

     

    (c)  No
      Material Adverse Change.
      There
      shall not have been any occurrence, event, incident, action, failure to act,
      or
      transaction since December 31, 2006 which has had or is reasonably likely to
      cause a Russoil Material Adverse Effect.

      

    (d)  Post-Closing
      Capitalization.
      At, and
      immediately after, the Closing, the authorized capitalization, and the number
      of
      issued and outstanding shares of the capital stock of the Company and Russoil,
      on a fully-diluted basis, as indicated on a schedule to be delivered by the
      Parties at or prior to the Closing, shall be acceptable to the Gorstovoe Holder
      and the Company in their sole and absolute discretion.

     

    (e)  SEC
      Reports.
      Russoil
      shall have filed all reports and other documents required to be filed by Russoil
      under the U.S. federal securities laws through the Closing Date. 

     

    (f)  OTCBB
      Quotation.
      Russoil
      shall have maintained its status as a Company whose common stock is eligible
      for
      quotation or listing on the Over-the-Counter Bulletin Board and no reason shall
      exist as to why such status shall not continue immediately following the
      Closing.

     

    (g)  Deliveries.
      The
      deliveries specified in Section
      5.02
      shall
      have been made by Russoil. 

     

    (h)  No
      Suspensions of Trading in Russoil Stock; Listing.
      Trading
      in Russoil Stock shall not have been suspended by the SEC or any trading market
      (except for any suspensions of trading of not more than one trading day solely
      to permit dissemination of material information regarding Russoil) at any time
      since the date of execution of this Agreement, and Russoil Stock shall have
      been
      at all times since such date listed for trading on a trading
      market.

     

    (i)  Satisfactory
      Completion of Due Diligence.
      The
      Company, the Stockholders, and the Gorstovoe Holder shall have completed their
      legal, accounting and business due diligence of Russoil and the results thereof
      shall be satisfactory to the Company, the Stockholders, and the Gorstovoe Holder
      in their sole and absolute discretion.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (j)  Delivery
      of Audit Report and Financial Statements.
      The
      Company shall have completed the Company Financial Statements and shall have
      received an audit report from an independent audit firm that is registered
      with
      the Public Company Accounting Oversight Board relating to the fiscal year ended
      December 31, 2006.

     

    (k)  
      Delivery of Legal Opinion.
      The
      Company shall have received an opinion from legal counsel in the Russian
      Federation that is otherwise satisfactory to the Company, the Stockholders,
      and
      the Gorstovoe Holder.

     

    (l)  Derivative
      Securities.
      Any
      issued and outstanding options, convertible notes or other securities of Russoil
      that are exercisable or exchangeable for or convertible into, Russoil Common
      Stock shall have been exercised, converted or exchanged for Russoil Common
      Stock
      in a manner satisfactory to the Company, the Stockholders, and the Gorstovoe
      Holder.

      

    (m)  Cancellation
      Agreement.
      A
      Cancellation Agreement (as defined in Section 7.13) shall have been executed
      and
      delivered by the parties thereto and all of the transactions contemplated
      thereby shall have been consummated.

     

    SECTION
      6.02.  Russoil
      Conditions Precedent.
      The
      obligations of Russoil to enter into and complete the Closing is subject, at
      the
      option of Russoil, to the fulfillment on or prior to the Closing Date of the
      following conditions, any one or more of which may be waived by Russoil in
      writing. 

     

    (a)  Representations
      and Covenants.
      The
      representations and warranties of the Stockholders, the Company, and the
      Gorstovoe Holder contained in this Agreement shall be true in all material
      respects on and as of the Closing Date with the same force and effect as though
      made on and as of the Closing Date. The Stockholders, the Company, and the
      Gorstovoe Holder shall have performed and complied in all material respects
      with
      all covenants and agreements required by this Agreement to be performed or
      complied with by the Stockholders, the Company, and the Gorstovoe Holder on
      or
      prior to the Closing Date. The Company, the Stockholder and the Gorstovoe
      Holder, shall have delivered to Russoil, a certificate, dated the Closing Date,
      to the foregoing effect. 

     

    (b)  Litigation.
      No
      action, suit or proceeding shall have been instituted before any court or
      governmental or regulatory body or instituted or threatened by any governmental
      or regulatory body to restrain, modify or prevent the carrying out of the
      Transactions or to seek damages or a discovery order in connection with such
      Transactions, or which has or may have, in the reasonable opinion of Russoil,
      a
      materially adverse effect on the assets, properties, business, operations or
      condition (financial or otherwise) of Russoil.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (c)  No
      Material Adverse Change.
      There
      shall not have been any occurrence, event, incident, action, failure to act,
      or
      transaction since December 31, 2006 which has had or is reasonably likely to
      cause a Company Material Adverse Effect. 

     

    (d)  Deliveries.
      The
      deliveries specified in Section 5.01, Section 5.03 and 5.04 shall have been
      made
      by the Stockholders and the Company, respectively. 

     

    (e)  Audited
      Financial Statements.
      The
      Company shall have provided Russoil and the Stockholders with reasonable
      assurances that Russoil will be able to comply with its obligation to file
      a
      current report on Form 8-K within four (4) business days following the Closing
      containing the requisite audited consolidated financial statements of the
      Company and the requisite disclosure regarding the Company. 

      

    (f)  Post-Closing
      Capitalization.
      At, and
      immediately after, the Closing, the authorized capitalization, and the number
      of
      issued and outstanding shares of the capital stock of the Company and Russoil,
      on a fully-diluted basis, as indicated on a schedule to be delivered by the
      Parties at or prior to the Closing, shall be acceptable to Russoil in its sole
      and absolute discretion.

     

    (g)  Satisfactory
      Completion of Due Diligence.
      Russoil
      shall have completed its legal, accounting and business due diligence of the
      Company, the Stockholders, the Gorstovoe Holder and the results thereof shall
      be
      satisfactory to Russoil in its sole and absolute discretion.

     

    (h)  Delivery
      of Audit Report and Financial Statements.
      The
      Company shall have completed the Company Financial Statements and shall have
      received an audit report from an independent audit firm that is registered
      with
      the Public Company Accounting Oversight Board relating to the fiscal year ended
      December 31, 2006 and, in form and substance, the Financial Statements shall
      be
      satisfactory to Russoil in its sole and absolute discretion.

     

    (i)  Delivery
      of Legal Opinion.
      Russoil
      shall have received an opinion from the Company’s legal counsel in the
      jurisdiction of its formation that is otherwise satisfactory to the Company,
      the
      Stockholders and the Gorstovoe Holder.

     

    (j)  Derivative
      Securities.
      Any
      issued and outstanding options, convertible notes or other securities of Russoil
      that are exercisable or exchangeable for or convertible into, Russoil Common
      Stock shall have been exercised, converted or exchanged for Russoil Common
      Stock
      in a manner satisfactory to Russoil.

     

    (k)  Cancellation
      Agreement.
      A
      Cancellation Agreement (as defined in Section
      7.13)
      shall
      have been executed and delivered by the parties thereto and all of the
      transactions contemplated thereby shall have been consummated.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VII

    

    Covenants

    

    SECTION
      7.01.  Preparation
      of the 14f-1 Notice; Blue Sky Laws 

     

    (a)  As
      soon
      as possible following the Closing, the Company and Russoil shall prepare and
      file with the SEC the 14f-1 Notice in connection with the consummation of this
      Agreement. Russoil shall cause the 14f-1 Notice to be mailed to Russoil’s
      stockholders as promptly as practicable thereafter. 

     

    (b)  Russoil
      shall take any action (other than qualifying to do business in any jurisdiction
      in which it is not now so qualified) required to be taken under any applicable
      state securities laws, if any, in connection with the issuance of Russoil Stock
      in connection with this Agreement.

     

    SECTION
      7.02.  Public
      Announcements.
      Russoil, the Gorstovoe Holder and the Company will consult with each other
      before issuing, and provide each other the opportunity to review and comment
      upon, any press release or other public statements with respect to the Agreement
      and the Transactions and shall not issue any such press release or make any
      such
      public statement prior to such consultation, except as may be required by
      applicable Law, court process or by obligations pursuant to any listing
      agreement with any national securities exchange.

     

    SECTION
      7.03.  Fees
      and Expenses.
      All
      fees and expenses incurred in connection with this Agreement shall be paid
      by
      the Party incurring such fees or expenses, whether or not this Agreement is
      consummated. 

     

    SECTION
      7.04.  Continued
      Efforts.
      Each
      Party shall use commercially reasonable efforts to (a) take all action
      reasonably necessary to consummate the Transactions, and (b) take such
      steps and do such acts as may be necessary to keep all of its representations
      and warranties true and correct as of the Closing Date with the same effect
      as
      if the same had been made, and this Agreement had been dated, as of the Closing
      Date. 

      

    SECTION
      7.05.  Exclusivity.
      Russoil
      shall not (i) solicit, initiate, or encourage the submission of any proposal
      or
      offer from any person relating to the acquisition of any capital stock or other
      voting securities of Russoil, or any assets of Russoil (including any
      acquisition structured as a merger, consolidation, share exchange or other
      business combination), (ii) participate in any discussions or negotiations
      regarding, furnish any information with respect to, assist or participate in,
      or
      facilitate in any other manner any effort or attempt by any person to do or
      seek
      any of the foregoing, or (iii) take any other action that is inconsistent with
      the Transactions and that has the effect of avoiding the Closing contemplated
      hereby. Russoil shall notify the Company immediately if any person makes any
      proposal, offer, inquiry, or contact with respect to any of the
      foregoing.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    SECTION
      7.06.  Filing
      of 8-K and Press Release.
      Russoil
      shall file, as soon as is practicable after the Closing Date, a current report
      on Form 8-K and attach as exhibits all relevant agreements with the SEC, as
      soon
      as is practicable disclosing the terms of this Agreement and other requisite
      disclosure regarding the Transactions and including the requisite audited
      consolidated financial statements of the Company. In addition, Russoil shall
      issue a press release prior to 9:30 a.m. (New York Time) on the business day
      following the Closing Date, announcing the closing of the
      transaction.

     

    SECTION
      7.07.  Furnishing
      of Information.
      As long
      as the Gorstovoe Holder owns the Shares, Russoil covenants to timely file (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by Russoil after the date hereof
      pursuant to the Exchange Act and in the event Russoil is not required to file
      reports pursuant to such laws, it will prepare and furnish to the Gorstovoe
      Holder and make publicly available in accordance with Rule 144(c) promulgated
      by
      the SEC pursuant to the Securities Act, such information as is required for
      the
      Gorstovoe Holder to sell the Shares under Rule 144. Russoil further covenants
      that it will take such further action as any holder of Shares may reasonably
      request, all to the extent required from time to time to enable such person
      to
      sell the Shares without registration under the Securities Act within the
      limitation of the exemptions provided by Rule 144.

     

    SECTION
      7.08.  Access.
      Each
      Party shall permit representatives of each other Party to have full access
      to
      all premises, properties, personnel, books, records (including Tax records),
      contracts, and documents of or pertaining to such Party.

     

    SECTION
      7.09.  Preservation
      of Business.
      From
      the date of this Agreement until the Closing Date, each of the Company and
      Russoil shall operate only in the ordinary and usual course of business
      consistent with past practice (provided, however, that Russoil shall not issue
      any securities without the prior written consent of the Company), and shall
      use
      reasonable commercial efforts to (a) preserve intact its respective business
      organization, (b) preserve the good will and advantageous relationships with
      customers, suppliers, independent contractors, employees and other Persons
      material to the operation of its respective business, and (c) not permit any
      action or omission which would cause any of its respective representations
      or
      warranties contained herein to become inaccurate or any of its respective
      covenants to be breached in any material respect. 

     

    SECTION
      7.10. In the event that the Company and the Gorstovoe Holder , before the first
      anniversary of the Closing are
      able
      to secure private equity financing for Russoil, pursuant to which Russoil
      receives not less than $100,000,000 in gross proceeds, then the Gorstovoe Holder
      will be entitled to receive, on a pro rata basis, shares aggregating twenty
      (20%) percent of the Company’s issued and outstanding capital of the
      Company. 

    

    SECTIONS
      7.11 and 7.12. INTENTIONALLY
      OMITTED 

     

    SECTION
      7.13.  Cancellation
      of Certain Shares.
      A total
      of 242,000,000 shares of Russoil Common Stock, in the aggregate, held by
      Silvestre Hutchinson (“Hutchinson”)
      shall
      have been cancelled and Hutchinson shall have delivered to Russoil a
      Cancellation Agreement (the “Cancellation
      Agreement”)
      containing a release and such other provisions as are satisfactory to Russoil,
      and the Company.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VIII

    

    Indemnification

     

    SECTION
      8.01.  General
      Indemnification Provision.
      Each of
      the Stockholders, the Gorstovoe Holder and the Company (each an “Indemnifying
      Party”)
      shall
      indemnify, defend and hold Russoil, its affiliates, officers, directors,
      partners (general and limited), employees, agents, attorneys successors and
      assigns (each an “Indemnified
      Party”)
      harmless from and against all Losses incurred or suffered by a Indemnified
      Party
      as a result of the breach of any of the respective Indemnifying Parties
      representations, warranties, covenants or agreements made by the respective
      Indemnifying Parties in this Agreement.

     

    SECTION
      8.02.  Indemnification
      Principles.
      For
      purposes of this Article VIII, “Losses”
shall
      mean each and all of the following items: claims, losses (including, without
      limitation, losses of earnings), liabilities, obligations, payments, damages
      (actual, punitive or consequential), charges, judgments, fines, penalties,
      amounts paid in settlement, costs and expenses (including, without limitation,
      interest which may be imposed in connection therewith, costs and expenses of
      investigation, actions, suits, proceedings, demands, assessments and reasonable
      fees, expenses and disbursements of counsel, consultants and other experts).
      

     

    SECTION
      8.03.  Claim
      Notice; Right to Defend.
      An
      Indemnified Party shall promptly upon becoming aware of the facts indicating
      that a claim for indemnification may be warranted, give to the Indemnifying
      Party a claim notice relating to such Loss (a “Claim
      Notice”).
      Each
      Claim Notice shall specify the nature of the claim and, if possible, the amount
      or the estimated amount thereof. No failure or delay in giving a Claim Notice
      and no failure to include any specific information relating to the claim (such
      as the amount or estimated amount thereof) shall affect the obligation of the
      Indemnifying Party unless such failure materially and adversely prejudices
      the
      Indemnifying Party. If such Loss relates to the commencement of any action
      or
      proceeding by a third person, the Indemnified Party shall give a Claim Notice
      to
      the Indemnifying Party regarding such action or proceeding and the Indemnifying
      Party shall be entitled to participate therein to assume the defense thereof
      with counsel reasonably satisfactory to the Indemnified Party. After the
      delivery of notice from the Indemnifying Party to the Indemnified Party of
      its
      election to assume the defense of such action or proceeding, the Indemnifying
      Party shall not be liable (except to the extent the proviso to this sentence
      is
      applicable, in which event it will be so liable) to the Indemnified Party under
      this Article VIII for any legal or other expenses subsequently incurred by
      the
      Indemnified Party in connection with the defense thereof other than reasonable
      costs of investigation, provided
      that
      each Indemnified Party shall have the right to employ separate counsel to
      represent it and assume its defense (in which case, the Indemnifying Party
      shall
      not represent it) if (i) upon the advice of counsel, the representation of
      both
      parties by the same counsel would be inappropriate due to actual or potential
      differing interests between them, (ii) in the event the Indemnifying Party
      has
      not assumed the defense thereof within 10 days of receipt of notice of such
      claim or commencement of action, and in which case the fees and expenses of
      one
      such separate counsel shall be paid by the Indemnifying Party or (iii) if such
      Indemnified Party who is a defendant in any action or proceeding which is also
      brought against the Indemnifying Party reasonably shall have concluded that
      there may be one or more legal defenses available to such Indemnified Party
      which are not available to the Indemnifying Party. If the Indemnifying Party
      so
      assumes the defense thereof, it may not agree to any settlement of any such
      claim or action as the result of which any remedy or relief, other than monetary
      damages for which the Indemnifying Party shall be responsible hereunder, shall
      be applied to or against the Indemnified Party, without the prior written
      consent of the Indemnified Party. In any action hereunder as to which the
      Indemnifying Party has assumed the defense thereof with counsel reasonably
      satisfactory to the Indemnified Party, the Indemnified Party shall continue
      to
      be entitled to participate in the defense thereof, with counsel of its own
      choice, but, except as set forth above, the Indemnifying Party shall not be
      obligated hereunder to reimburse the Indemnified Party for the costs
      thereof.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IX

    

    Miscellaneous

    

    SECTION
      9.01.  Notices.
      All
      notices, requests, claims, demands and other communications under this Agreement
      shall be in writing and shall be deemed given upon receipt by the Parties at
      the
      following addresses (or at such other address for a Party as shall be specified
      by like notice):

     

    If
      to
      Russoil, to:

    

    415
      Madison Avenue

    15th
      Floor

    New
      York,
      New York 10017

    

    If
      to the
      Company or each Stockholder, to:

     

    121059

    Russian
      Federation

    Moscow,
      Ab No. 27

    Russia

    

    If
      to the
      Gorstovoe Holder, to:

    

    636850

    Tomsk
      Region,

    Area
      Zyrjansky, with. Zyrjansky,

    Street
      Chapaeva, h. 15

    Russia

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.02.  Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company, Russoil, the Gorstovoe Holder and the
      Stockholders. No waiver of any default with respect to any provision, condition
      or requirement of this Agreement shall be deemed to be a continuing waiver
      in
      the future or a waiver of any subsequent default or a waiver of any other
      provision, condition or requirement hereof, nor shall any delay or omission
      of
      either Party to exercise any right hereunder in any manner impair the exercise
      of any such right. No consideration shall be offered or paid to any Stockholder
      to amend or consent to a waiver or modification of any provision of any
      transaction document unless the same consideration is also offered and paid
      to
      all Stockholders who then hold Shares (or are entitled to receive Shares
      hereunder).

     

    SECTION
      9.03.  Termination.

     

    (a)  Termination
      of Agreement.
      The
      Parties may terminate this Agreement as provided below:

     

    (i)  All
      of
      the parties may terminate this Agreement by mutual written consent at any time
      prior to the Closing;

     

    (ii)  Russoil
      may terminate this Agreement by giving written notice to the Company, the
      Gorstovoe Holder, and the Stockholders at any time prior to the Closing (A)
      in
      the event the Company, the Gorstovoe Holder or the Stockholders have breached
      any material representation, warranty, or covenant contained in this Agreement
      in any material respect, Russoil has notified the Company, the Gorstovoe Holder
      and the Stockholders of the breach, and the breach has continued without cure
      for a period of twenty days after the notice of breach, or (B) if the Closing
      shall not have occurred on or before sixty days after the date of this Agreement
      by reason of the failure of any condition precedent under Section
      6.02
      hereof
      (unless the failure results primarily from Russoil itself breaching any
      representation, warranty, or covenant contained in this Agreement);
      and

     

    (iii)  The
      Company, the Stockholders, or the Gorstovoe Holder may terminate this Agreement
      by giving written notice to Russoil at any time prior to the Closing (A) in
      the
      event Russoil has breached any material representation, warranty, or covenant
      contained in this Agreement in any material respect, the Company, the
      Stockholders, or the Gorstovoe Holder has notified Russoil of the breach, and
      the breach has continued without cure for a period of twenty days after the
      notice of breach or (B) if the Closing shall not have occurred on or before
      sixty days after the date of this Agreement, by reason of the failure of any
      condition precedent under Section
      6.01
      hereof
      (unless the failure results primarily from the Company, the Stockholders or
      the
      Gorstovoe Holder themselves breaching any representation, warranty, or covenant
      contained in this Agreement).

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

      

    (b)  Effect
      of Termination.
      If any
      Party terminates this Agreement pursuant to Section
      8.03(a)
      above,
      all rights and obligations of the Parties hereunder shall terminate without
      any
      Liability of any Party to any other Party. 

     

    SECTION
      9.04.  Replacement
      of Securities.
      If any
      certificate or instrument evidencing any Shares is mutilated, lost, stolen
      or
      destroyed, Russoil shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to Russoil of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement Shares.
      If a
      replacement certificate or instrument evidencing any Shares is requested due
      to
      a mutilation thereof, Russoil may require delivery of such mutilated certificate
      or instrument as a condition precedent to any issuance of a
      replacement.

     

    SECTION
      9.05.  Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Stockholders, Russoil, the
      Gorstovoe Holder and the Company will be entitled to specific performance under
      this Agreement. The Parties agree that monetary damages may not be adequate
      compensation for any loss incurred by reason of any breach of obligations
      described in the foregoing sentence and hereby agrees to waive in any action
      for
      specific performance of any such obligation the defense that a remedy at law
      would be adequate.

     

    SECTION
      9.06.  INTENTIONALLY
      OMITTED

      

    SECTION
      9.07.  Limitation
      of Liability.
      Notwithstanding anything herein to the contrary, each of Russoil and the Company
      acknowledge and agree that the liability of a Stockholder or the Gorstovoe
      Holder, as the case may be arising directly or indirectly, under any transaction
      document of any and every nature whatsoever shall be satisfied solely out of
      the
      assets of such Stockholder or the Gorstovoe Holder, as the case may be and
      that
      no trustee, officer, other investment vehicle or any other affiliate of such
      Stockholder, the Gorstovoe Holder, as the case may be or any investor,
      stockholder or holder of shares of beneficial interest of such Stockholder
      or
      the Gorstovoe Holder, as the case may be shall be personally liable for any
      liabilities of such Stockholder or the Gorstovoe Holder, as the case may
      be.

     

    SECTION
      9.08.  Interpretation.
      When a
      reference is made in this Agreement to a Section, such reference shall be to
      a
      Section of this Agreement unless otherwise indicated. Whenever the words
“include”, “includes” or “including” are used in this Agreement, they shall be
      deemed to be followed by the words “without limitation”. 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.09.  Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any rule or 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 the Transactions contemplated
      hereby 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 shall negotiate in good faith to modify this
      Agreement so as to effect the original intent of the Parties as closely as
      possible in an acceptable manner to the end that Transactions contemplated
      hereby are fulfilled to the extent possible.

     

    SECTION
      9.10.  Counterparts;
      Facsimile Execution.
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement and shall become effective when one or
      more counterparts have been signed by each of the Parties and delivered to
      the
      other Parties. Facsimile execution and delivery of this Agreement is legal,
      valid and binding for all purposes.

     

    SECTION
      9.11.  Entire
      Agreement; Third Party Beneficiaries.
      This
      Agreement, taken together with the Company Disclosure Schedule and Russoil
      Disclosure Schedule, (a) constitute the entire agreement, and supersede all
      prior agreements and understandings, both written and oral, among the Parties
      with respect to the Transactions and (b) are not intended to confer upon any
      person other than the Parties any rights or remedies.

     

    SECTION
      9.12.  Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York, regardless of the laws that might otherwise govern under
      applicable principles of conflicts of laws thereof, except to the extent the
      laws of Nevada are mandatorily applicable to the Transactions.

     

    SECTION
      9.13.  Assignment.
      Neither
      this Agreement nor any of the rights, interests or obligations under this
      Agreement shall be assigned, in whole or in part, by operation of law or
      otherwise by any of the Parties without the prior written consent of the other
      Parties. Any purported assignment without such consent shall be void. Subject
      to
      the preceding sentences, this Agreement will be binding upon, inure to the
      benefit of, and be enforceable by, the Parties and their respective successors
      and assigns.

     

    [The
      Remainder of Page Intentionally Kept Blank]

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    The
      Parties hereto have executed and delivered this Share Exchange Agreement as
      of
      the date first above written.

    
      	 	 	 
	 	
              RUSSOIL
                CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                Silvestre Hutchinson

            
	 	
              

              Name:
                Silvestre
                Hutchinson 
                Title:
                  President

              

            

    

     

      	 	 	 
	 	
              OJSE
                SMOLENERGY

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Evgeny Bagay
	 	
              

              Name:
                Evgeny
                Bagay 
                Title:
                  Deputy
                  of the General Director

              

            

    

     

    
      	 	 	 
	 	 	
              THE
                STOCKHOLDERS:

            
	 
 	 
 	 
 
	
            	        
              	
              /s/
                Elias Kamennoy

            
	 	
              

              Elias
                Kamennoy 
                Number
                  of shares the Company owned:
                  500

              

            

    

     

      	 	 	 
	
            	        	
              /s/
                Evgeny Bagay

            
	 	
              

              Evgeny
                Bagay

              Number
                of shares the Company owned: 2,500

            

    

     

    
      	 	 	 
	
            	        	
              
                /s/
                  Evgeny Fedosov

              

            
	 	
              

              
                Evgeny
                  Fedosov

                Number
                  of shares the Company owned: 7,000

              

            

      

        	 	 	 
	 	 	
                THE
                  GORSTOVOYE HOLDER

              
	 
 	 
 	 
 
	
              	        	
                /s/
                  Viktor Ekimov

              
	 	
                

                Viktor
                  Ekimov

              

      
        
          
          

        

        
          34

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