Good Day and thank you all for coming to our shareholder meeting. As you know, we are making some changes here at Holder, Inc that we are very excited about. I’m sure you have all heard that after 24 years in operation Holder, Inc is finally going overseas—to Kazakhstan. Today we would like to tell you a little about our venture and inform you about the changes being made.

As you know, Holder, Inc is a diversified energy conglomorate whose principle activities are exploration, development, and extraction of energy resources and research and development of new technologies to do so. Holder, Inc has been steadily growing its R&D department and to date holds over 100 technology patents. We believe our R&D department is our most signifigant competitive advantadge. We currently operate mainly in Alaska, Texas, and the Gulf of Mexico. Now, with our joint venture partner, KazMunauGas, we will forge a new company in Kazakhstan.

One of our most recent successes from our R&D department is a new technology which allows us to detect and extract energy resources up to 3,000 feet deeper than methods currently on the market. Unfortunately, though our own testing has confirmed it does not harm any wildlife, it is not yet approved in the US due to such concerns and further testing is being done by the EPA. However, the Kazakhstan government has welcomed us to use our new technology to help them further develop their natural resources.

Holder, Inc. H Jennifer Austin, Michael Holder, Nebojsa Samardzija, Jennifer Wanchick, Carlene Watson Entry into Kazakhstan: Obstacles, Opportunities, and Intentions “Innovative, Reliable, Responsible: Delivering Innovation through Energy

Introduction Diversified energy conglomerate Holder Inc. Principle Activities Exploration, Development, and Extract energy resources. Research and Development of new technologies to locate and extract new energy resources Currently operates in Alaska Texas Gulf of Mexico Holder Inc. plans to open a partnership company in Kazakhstan with KazMunaiGas Exploration Production H

New Technology Our technology can detect and extract 3,000 feet deeper than other methods available US government has not approved use of it Kazakhstan government is excited to use this new technology to further develop their natural resources

Why Kazakhstan? H Tengiz World's largest and deepest operating super-giant oil field Known reservoirs up to 12,000 feet deep Other Factors: Politically Stable Steady GDP growth for past 11 years Low Corporate Tax Rates (15% in 2011), tax treaties No Restrictions or Penalties when Repatriating Profits

Kazakhstan Culture H Population 15.3 Million Primary Groups Ethnic Kazaks Russian Kazaks Spoken Languages Kazak Russian English

Business Culture Business takes longer than in most Western societies It is common to take breaks for prayers Formality and structure of greetings in Kazakhstan reflects the position a person has in society H

Kazakhstan H

Entry strategy Joint Venture will be with KazMunayGas: Locally owned and operated extraction company in Tengiz field Has several extraction and refinement operations already in place Does not have a well developed R&D department Partnership will be mutually beneficial Holder Inc will offer its research resources while KazMunayGas has access to Tengiz, operations in place (reduces necessary capital costs) H KazHolder Energy

Partnership details Equity Share Both Holder Inc. and KazMunayGas will be a 50% stakeholder This will classify KazHold Energy as a native company Kazakhstan residents are more favorable of local firms This joint venture will initiate a rapid entry into the Kazakhstan market Overcome trade barriers Lower capital costs Gain access to local manufacturers H KazHold Energy

Partnership details Organization will be lead by employees of Holder Inc. R&D and Accounting department will be headed by Holden Inc employees Other business units will be run by Kazak employees Main infrastructure of KazMunayGas will remain It will be enhanced with the research technologies of Holder Inc. H

Decision making H US Division will develop long-term goals and vision Kazakhstan unit will have large input on long-term strategies, and handle day-to-day operations, short term strategies and plans will be submitted and approved by headquarters on a regular basis measure quantitative aspects while allowing them to focus and report on, and react to unique situations present in their business environment. Decision making hierarchy will funnel up to Holder, Inc. KazMunayGas will be consulted on decisions and have significant say Decision making process, policy, and control is incorporated into our joint venture agreement and is mutually understood

KazHold Energy Hierarchy H Local job creation: Benefit community

Business environment New government has made environment a top priority, new regulations expected Foreign extractive companies often have bad image, perceived to take without giving back Holder, Inc is committed to meeting & exceeding environmental standards-- We will create a positive, long-term image by focusing on socially responsible decisions and actions, and operating transparently We will contribute to positive development in our regions by supporting healthcare, education, and other social concerns Our technologies are more environmentally friendly than those currently used in Kazakhstan Our goal is to be a leader in energy and social responsibility in our regions

Policy on corruption We will abide with Foreign Corrupt Practices Act We will not offer bribes: they would cause more demand for bribes, create a poor image of our company, and harm our bottom line. The business and social benefits we create for the region, as well as our competitive advantages are enough incentive to facilitate and work with our company. We will abide with local law We will treat our employees and partners with respect and dignity: We will go above the law in treating our employees and partners well, establishing ourselves as a desirable company to work for and with. We will uphold human rights, even if not required. Kazakhstan has high level of corruption, but situation is improving Transparency: We will operate transparently and not engage in behaviors we would not want our shareholders or stakeholders to know about Audits: Kazak unit will submit regular audits of behaviors to ensure compliance with company policies; Headquarters will review these audits and conduct their own periodically. Act & Adjust: Any suspect action will be investigated, adjustment to staffing, procedure, and policy will be made as needed. In order to achieve compliance…

Cultural Dimensions H

Leadership Dimensions H

Motivation: long-term orientation high, high contingent reward quarterly performance bonuses Security: less risk averse, focus on career stability pension, severance, Family, Emergency, and Medical Leave recruit and retain best talent by providing superior benefits Team-oriented: Higher Laissez-faire, Management by Exception, Intellectual Stimulation, Individual Consideration significant autonomy can be granted, as it will be headed by long-term, reliable Holder employee. reduce conspicuous “prestige” articles, flatter organizational structure, open door policies, regular team meetings, solicit opinions and cooperation  Management will consider employee needs and solicit their opinions, encouraging them to challenge assumptions and think creatively Addressing Cultural & Leadership Dimensions

Communication problems Language: Kazak Context & time orientation Cultural Noise English commonly spoken in large cities, such as where headquarters located English taught in university and high school translators will be retained Americans Monochronic: adhere to schedule strictly Low-Context: explicit, verbal “what was said” “how was it said?” Kazaks Polychronic: flexible with schedule High-Context: non-verbal very important instill company values over time clear, written policies reflective listening cross-cultural & communication training for both American and Kazak employees language classes as a company benefit develop strong company culture, emphasis over nationality

Control issues H Accounting: GAAP requires line by line consolidation of financial statements with parent company’s Intellectual Property: Holder, Inc’s competitive advantage is our proprietary technology & patents Risk of nationalization: present in most infrastructure & energy industries Kazak accounting division will be headed by a US employee conversions done when most profitable, not on regular intervals to mitigate currency exchange losses Kazakhstan government recognizes and is party to treaties upholding intellectual property right and patent laws. R&D department controlled by Holder, Inc Agreements: KazMunayGas does not have right to proprietary technology, can only use our technologies in joint operations or with our approval. Kazakhstan has a thriving energy industry and is stable, risk is minute Partnering with local company reduces risk further

Holder Inc. and KazMunayGas have a mutual understanding regarding control issues, hierarchy, and the decision making process detailed extensively in written agreements and contracts mutual understanding of both our companies has served to create quick and positive compromises and resolutions. Conclusion Holder, Inc is extremely optimistic about our joint venture in Kazakhstan with KazMunayGas. We anticipate KazHolder Energy to quickly become recognized in the region as a premier company to do business with. H