Document:

STOCK
      PLEDGE AGREEMENT

    

     

    This
      STOCK PLEDGE AGREEMENT (this “Agreement”), dated June 16, 2006, effective as of
      March 31, 2006, is entered into between United Heritage Corporation, a Utah
      corporation (“Pledgor”) and Sterling Bank (“Secured Party”), with reference to
      the following:

     

    WHEREAS,
      Pledgor beneficially owns all the shares of common stock, as more fully
      described on Schedule
      “A”
      attached
      hereto, of the corporations (herein called the “Issuers,” whether one or more)
      identified under the column entitled “Issuer” Schedule
      “A”
(the
      “Pledged Shares”);

     

    WHEREAS,
      Pledgor, Lothian Oil Inc., Lothian Oil (USA) Inc., Lothian Oil Texas I, Inc.
      and
      UHC New Mexico Corporation, as “Borrowers,” and Secured Party, as “Lender,”
entered into that certain Amended and Restated Credit Agreement dated of even
      date herewith (“Credit Agreement”).

     

    WHEREAS,
      to induce Secured Party to grant the extensions of credit and other financial
      accommodations provided to Borrowers pursuant to the Credit Agreement, Pledgor
      desires to pledge, grant, transfer, and assign to Secured Party a security
      interest in the Collateral (as hereinafter defined) as security for the
      Obligations (as hereinafter defined); and

     

    WHEREAS,
      Pledgor will benefit directly and indirectly from extensions of credit as a
      Borrower under the Credit Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual promises, covenants, representations,
      and warranties set forth herein and for other good and valuable consideration,
      the parties hereto agree as follows:

     

    1. Definitions
      and Construction.

     

    (a) Definitions.
      As used
      in this Agreement:

     

    “Agreement”
shall
      mean this Stock Pledge Agreement.

     

    “Bankruptcy
      Code”
shall
      mean The Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 10l-1330), as
      amended or supplemented from time to time, and any successor statute, and all
      of
      the rules issued or promulgated in connection therewith.

     

    “Borrowers”
shall
      have the meaning ascribed thereto in the second recital of this
      Agreement.

     

    “Business
      Day”
      shall
      have the meaning ascribed thereto in the Credit Agreement.

     

    “Collateral”
shall
      mean the Pledged Shares, the Future Rights, and the Proceeds,
      collectively.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    “Credit
      Agreement”
shall
      have the meaning ascribed thereto in the second recital of this
      Agreement.

     

    “Event
      of Default”
shall
      have the meaning ascribed thereto in the Credit Agreement.

     

    “Future
      Rights”
shall
      mean Pledgor’s interest in: (a) all shares of, all securities convertible
      or exchangeable into, and all warrants, options or other rights to purchase
      shares of stock of any Issuer (other than the Pledged Shares), and (b) the
      certificates or instruments representing such additional shares, convertible
      or
      exchangeable securities, warrants, and other rights and all dividends, cash,
      options, warrants, rights, instruments, and other property or proceeds from
      time
      to time received, receivable, or otherwise distributed in respect of or in
      exchange for any or all of such shares.

     

    “Holder”
and
      “Holders”
shall
      have the meanings ascribed thereto in Section 3 of this
      Agreement.

     

    “Loan
      Documents”
shall
      have the meaning ascribed thereto in the Credit Agreement.

     

    “Obligations”
shall
      mean the “Obligations” as that term is defined in the Credit
      Agreement.

     

    “Person”
shall
      have the meaning ascribed thereto in the Credit Agreement.

     

    “Pledgor”
shall
      have the meaning ascribed thereto in the preamble to this
      Agreement.

     

    “Pledged
      Shares”
shall
      have the meaning ascribed thereto in the first recital of this
      Agreement.

     

    “Proceeds”
shall
      mean all proceeds (including proceeds of proceeds) of the Pledged Shares and
      Future Rights including all: (a) rights, benefits, distributions, premiums,
      profits, dividends, interest, cash, instruments, documents of title, accounts,
      contract rights, inventory, equipment, general intangibles, deposit accounts,
      chattel paper, and other property from time to time received, receivable, or
      otherwise distributed in respect of or in exchange for, or as a replacement
      of
      or a substitution for, any of the Pledged Shares, Future Rights, or proceeds
      thereof (including any cash, stock, or other securities or instruments) issued
      after any recapitalization, readjustment, reclassification, merger or
      consolidation with respect to any Issuer; (b) proceeds of any insurance,
      indemnity, warranty, or guaranty (including guaranties of delivery) payable
      from
      time to time with respect to any of the Pledged Shares, Future Rights, or
      proceeds thereof; (c) payments (in any form whatsoever) made or due and payable
      to Pledgor from time to time in connection with any requisition, confiscation,
      condemnation, seizure or forfeiture of all or any part of the Pledged Shares,
      Future Rights, or proceeds thereof; and (d) other amounts from time to time
      paid
      or payable under or in connection with any of the Pledged Shares, Future Rights,
      or proceeds thereof.

     

    
      
         

      

      
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    “Secured
      Party”
shall
      have the meaning ascribed thereto in the preamble to this
      Agreement.

     

    “Securities
      Act”
shall
      have the meaning ascribed thereto in Section 9(b) of this
      Agreement.

     

    “Security
      Interest”
shall
      mean any lien, mortgage, pledge, assignment (including any assignment of rights
      to receive payments of money), security interest, charge, or encumbrance of
      any
      kind (including any conditional sale or other title retention agreement, any
      lease in the nature thereof, or any agreement to give any security interest).
       

     

    “UCC”
means
      the Uniform Commercial Code from time to time in effect in the State of
      Texas.

     

    All
      initially capitalized terms used herein and not otherwise defined shall have
      the
      meaning ascribed thereto in the Credit Agreement.

     

    (b) Construction.

     

    (i) Unless
      the context of this Agreement clearly requires otherwise, references to the
      plural includes the singular and to the singular include the plural, the part
      include the whole, the term “including” is not limiting, and the term “or” has,
      except where otherwise indicated, the inclusive meaning represented by the
      phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and other
      similar terms in this Agreement refer to this Agreement as a whole and not
      exclusively to any particular provision of this Agreement. Article, section,
      subsection, exhibit, and schedule references are to this Agreement unless
      otherwise specified. All of the exhibits or schedules attached to this Agreement
      shall be deemed incorporated herein by reference. Any reference to any of the
      following documents includes any and all alterations, amendments, extensions,
      modifications, renewals, or supplements thereto or thereof, as applicable:
      this
      Agreement, the Credit Agreement, and any of the other Loan
      Documents.

     

    (ii) Neither
      this Agreement nor any uncertainty or ambiguity herein shall be construed or
      resolved against Secured Party or Pledgor, whether under any rule of
      construction or otherwise. On the contrary, this Agreement has been reviewed
      by
      both of the parties and their respective counsel and shall be construed and
      interpreted according to the ordinary meaning of the words used so as to fairly
      accomplish the purposes and intentions of the parties hereto.

     

    (iii) In
      the
      event of any direct conflict between the express terms and provisions of this
      Agreement and of the Credit Agreement, the terms and provisions of the Credit
      Agreement shall control.

     

    2. Pledge.
      As
      security for the prompt payment and performance of the Obligations in full
      when
      due, whether at stated maturity, by acceleration or otherwise (including amounts
      that would become due but for the operation of the automatic stay under
§ 362(a) of the Bankruptcy Code), Pledgor hereby pledges, grants,
      transfers, and assigns to Secured Party a Security Interest in all of Pledgor’s
      right, title, and interest in and to the Collateral.

     

    
      
         

      

      
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    3. Delivery
      and Registration of Collateral.

     

    (a) All
      certificates or instruments representing or evidencing the Collateral shall
      be
      promptly delivered by Pledgor to Secured Party or Secured Party’s designee
      pursuant hereto at a location designated by Secured Party and shall be held
      by
      or on behalf of Secured Party pursuant hereto, and shall be in suitable form
      for
      transfer by delivery, or shall be accompanied by duly executed instruments
      of
      transfer or assignment in blank, all in form and substance satisfactory to
      Secured Party.

     

    (b) After
      the
      occurrence and during the continuance of an Event of Default, Secured Party
      shall have the right, at any time in its discretion and without notice to
      Pledgor, to transfer to or to register on the books of Issuer (or of any other
      Person maintaining records with respect to the Collateral) in the name of
      Secured Party or any of its nominees any or all of the Collateral. In addition,
      Secured Party shall have the right at any time to exchange certificates or
      instruments representing or evidencing Collateral for certificates or
      instruments of smaller or larger denominations.

     

    (c) If,
      at
      any time and from time to time, any Collateral (including any certificate or
      instrument representing or evidencing any Collateral) is in the possession
      of a
      Person other than Secured Party, Secured Party’s designee pursuant hereto or
      Pledgor (a “Holder”), then Pledgor shall immediately, at Secured Party’s option,
      either cause such Collateral to be delivered into Secured Party’s possession, or
      execute and deliver to such Holder a written notification/ instruction, and
      take
      all other steps necessary to perfect the Security Interest of Secured Party
      in
      such Collateral, including obtaining from such Holder a written acknowledgment
      that such Holder holds such Collateral for Secured Party, all pursuant to the
      applicable laws governing the perfection of Secured Party’s Security Interest in
      the Collateral in the possession of such Holder. Each such
      notification/instruction and acknowledgment shall be in form and substance
      satisfactory to Secured Party.

     

    (d) Subject
      to the provisions in Section 4 hereof, any and all Collateral (including
      dividends, interest, and other cash distributions) at any time received or
      held
      by Pledgor shall be so received or held in trust for Secured Party, shall be
      segregated from other funds and property of Pledgor and shall be forthwith
      delivered to Secured Party in the same form as so received or held, with any
      necessary endorsements.

     

    (e) If
      at any
      time and from time to time any Collateral consists of an uncertificated security
      or a security in book entry form, then Pledgor shall immediately cause such
      Collateral to be registered or entered, as the case may be, in the name of
      Secured Party, or otherwise cause Secured Party’s Security Interest thereon to
      be perfected in accordance with applicable law.

     

    4. Voting
      Rights and Dividends.

     

    (a) So
      long
      as no Event of Default shall have occurred and be continuing, Pledgor shall
      be
      entitled to exercise any and all voting and other consensual rights pertaining
      to the Collateral or any part thereof for any purpose not inconsistent with
      the
      terms of the Credit Agreement and shall be entitled to receive and retain any
      cash dividends or distributions paid in respect of the Collateral as may be
      permitted under the Credit Agreement.

     

    
      
         

      

      
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    (b) Upon
      the
      occurrence and during the continuance of an Event of Default, all rights of
      Pledgor to exercise the voting and other consensual rights or receive and retain
      cash dividends or distributions which it would otherwise be entitled to exercise
      or receive and retain, as applicable pursuant to Section 4(a) shall cease,
      and
      all such rights shall thereupon become vested in Secured Party, who shall
      thereupon have the sole right to exercise such voting or other consensual rights
      and to receive and retain such cash dividends and distributions. Pledgor shall
      execute and deliver (or cause to be executed and delivered) to Secured Party
      all
      such proxies and other instruments as Secured Party may request for the purpose
      of enabling Secured Party to exercise the voting and other rights which it
      is
      entitled to exercise pursuant to this subsection (b).

     

    5. Representations
      and Warranties.
      In
      addition to the representations of Pledgor in the Credit Agreement, Pledgor
      represents, warrants, and covenants as follows:

     

    (a) Pledgor
      has taken all steps it deems necessary or appropriate to be informed on a
      continuing basis of changes or potential changes affecting the Collateral
      (including rights of conversion and exchange, rights to subscribe, payment
      of
      dividends, reorganizations or recapitalization, tender offers and voting
      rights), and Pledgor agrees that Secured Party shall have no responsibility
      or
      liability for informing Pledgor of any such changes or potential changes or
      for
      taking any action or omitting to take any action with respect
      thereto;

     

    (b) All
      information herein or hereafter supplied to Secured Party by or on behalf of
      Pledgor in writing with respect to the Collateral is, or in the case of
      information hereafter supplied will be, accurate and complete in all material
      respects;

     

    (c) Except
      as
      pledged, granted, transferred and assigned hereunder, Pledgor is and will be
      the
      sole legal and beneficial owner of the Collateral (including the Pledged Shares
      and all other Collateral acquired by Pledgor after the date hereof) free and
      clear of any adverse claim, Security Interest, or other right, title, or
      interest of any party;

     

    (d) This
      Agreement, and the delivery to Secured Party of the Pledged Shares representing
      Collateral (or the delivery to all Holders of the Pledged Shares representing
      Collateral of the notification/instruction referred to in Section 3 of this
      Agreement), creates a valid, perfected, and first priority Security Interest
      in
      one hundred percent (100%) of the Pledged Shares in favor of Secured Party
      securing payment of the Obligations, and all actions necessary to achieve such
      perfection have been duly taken;

     

    (e) Schedule
      A
      to this
      Agreement is true and correct and complete in all material respects; without
      limiting the generality of the foregoing: (i) All the Pledged Shares are in
      certificated form, and, except to the extent registered in the name of Secured
      Party or its nominee pursuant to the provisions of this Agreement, are
      registered in the name of Pledgor; and (ii) the Pledged Shares constitute at
      least the percentage of all the fully diluted issued and outstanding shares
      of
      stock of each Issuer as set forth in the first recital of this
      Agreement;

     

    (f) There
      are
      no presently existing Future Rights or Proceeds owned by Pledgor;

     

    
      
         

      

      
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    (g) The
      Pledged Shares have been duly authorized and validly issued and are fully paid
      and nonassessable; and

     

    (h) Neither
      the pledge of the Collateral pursuant to this Agreement nor the extensions
      of
      credit represented by the Obligations violates Regulation T, U or X of the
      Board
      of Governors of the Federal Reserve System.

     

    6. Further
      Assurances.

     

    (a) Pledgor
      agrees that from time to time, at the expense of Pledgor, Pledgor will promptly
      execute and deliver all further instruments and documents, and take all further
      action that may be necessary or desirable, or that Secured Party may request,
      in
      order to perfect and protect any Security Interest granted or purported to
      be
      granted hereby or to enable Secured Party to exercise and enforce its rights
      and
      remedies hereunder with respect to any Collateral. Without limiting the
      generality of the foregoing, Pledgor will: (i) at the request of Secured Party,
      mark conspicuously each of its records pertaining to the Collateral with a
      legend, in form and substance satisfactory to Secured Party, indicating that
      such Collateral is subject to the Security Interest granted hereby; (ii) execute
      and file such financing or continuation statements, or amendments thereto,
      and
      such other instruments or notices, as may be necessary or desirable, or as
      Secured Party may request, in order to perfect and preserve the Security
      Interests granted or purported to be granted hereby; (iii) as more fully set
      forth in the Credit Agreement, allow inspection of the Collateral by Secured
      Party or Persons designated by Secured Party; and (iv) appear in and defend
      any
      action or proceeding that may affect Pledgor’s title to or Secured Party’s
      Security Interest in the Collateral.

     

    (b) Pledgor
      hereby authorizes Secured Party to file one or more financing or continuation
      statements, and amendments thereto, relative to all or any part of the
      Collateral without the signature of Pledgor where permitted by law and in any
      form or medium provided by law. A carbon, photographic, or other reproduction
      of
      this Agreement, and amendment thereto or any financing statement (whether
      original or amendment) covering the Collateral or any part thereof shall be
      sufficient as a financing statement where permitted by law.

     

    (c) Pledgor
      will furnish to Secured Party, upon the request of Secured Party: (1) a
      certificate executed by an authorized officer of Pledgor, and dated as of the
      date of delivery to Secured Party, itemizing in such detail as Secured Party
      may
      request, the Collateral which, as of the date of such certificate, has been
      delivered to Secured Party by Pledgor pursuant to the provisions of this
      Agreement; and (ii) such statements and schedules further identifying and
      describing the Collateral and such other reports in connection with the
      Collateral as Secured Party may request.

     

    7. Covenants
      of Pledgor.
      Pledgor
      shall:

     

    (a) Perform
      each and every covenant hereunder and in the Credit Agreement;

     

    (b) At
      all
      times keep at least one complete set of its records concerning substantially
      all
      of the Collateral at its chief executive office at 405 N. Marienfeld, Suite
      200,
      Midland, Texas 79701, and not change the location of its chief executive office
      or such records without giving Secured Party at least thirty (30) days prior
      written notice thereof;

     

    
      
         

      

      
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    (c) To
      the
      extent it may lawfully do so, use its best efforts to prevent any Issuer from
      issuing Future Rights or Proceeds; and

     

    (d) Upon
      receipt by Pledgor of any material notice, report, or other communication from
      any Issuer or any Holder relating to all or any part of the Collateral, deliver
      such notice, report or other communication to Secured Party as soon as possible,
      but in no event later than five (5) Business Days following the receipt thereof
      by Pledgor.

     

    8. Secured
      Party as Pledgor’s Attorney-in-Fact.

     

    (a) Pledgor
      hereby irrevocably appoints Secured Party as Pledgor’s attorney-in-fact, with
      full authority in the place and stead of Pledgor and in the name of Pledgor,
      Secured Party or otherwise, from time to time at Secured Party’s discretion, to
      take any action and to execute any instrument that Secured Party may deem
      necessary or advisable to accomplish the purposes of this Agreement, including:
      (i) after the occurrence and during the continuance of an Event of Default,
      to
      receive, endorse, and collect all instruments made payable to Pledgor
      representing any dividend, interest payment or other distribution in respect
      of
      the Collateral or any part thereof to the extent permitted hereunder and to
      give
      full discharge for the same and to execute and file governmental notifications
      and reporting forms; (ii) to issue any notifications/instructions Secured Party
      deems necessary pursuant to Section 3 of this Agreement; or (iii) after the
      occurrence and during the continuance of an Event of Default and subject to
      Section 3(b) hereinabove, to arrange for the transfer of the Collateral on
      the
      books of Pledgor or any other Person to the name of Secured Party or to the
      name
      of Secured Party’s nominee.

     

    (b) In
      addition to the designation of Secured Party as Pledgor’s attorney-in-fact in
      subsection (a), Pledgor hereby irrevocably appoints Secured Party as Pledgor’s
      agent and attorney-in-fact to make, execute and deliver any and all documents
      and writings which may be necessary or appropriate for approval of, or be
      required by, any regulatory authority located in any city, county, state or
      country where Pledgor or Borrower engages in business, in order to transfer
      or
      to more effectively transfer any of the Pledged Shares or otherwise enforce
      Secured Party’s rights hereunder.

     

    9. Remedies
      upon Default.
      Upon
      the occurrence and during the continuance of an Event of Default: 

     

    (a) The
      Secured Party may exercise, in addition to all other rights and remedies granted
      in this Agreement and in any other instrument or agreement securing, evidencing
      or relating to the Obligations, all rights and remedies of a secured party
      under
      the UCC. Without limiting the generality of the foregoing and to the extent
      permitted by applicable law, the Secured Party, without demand of performance
      or
      other demand, presentment, protest, advertisement or notice of any kind (except
      any notice required by law referred to below) to or upon the Pledgor, any
      Borrower or any other Person (all and each of which demands, defenses,
      advertisements and notices are hereby waived), may in such circumstances
      forthwith collect, receive, appropriate and realize upon the Collateral, or
      any
      part thereof, and/or may forthwith sell, assign, give option or options to
      purchase or otherwise dispose of and deliver the Collateral or any part thereof
      (or contract to do any of the foregoing), in one or more parcels at public
      or
      private sale or sales, in the over-the-counter market, at any exchange, broker’s
      board or elsewhere upon such terms and conditions as it may deem advisable
      and
      at such prices as it may deem best, for cash or on credit or for future delivery
      without assumption of any credit risk. The Secured Party shall have the right
      upon any such public sale or sales, and, to the extent permitted by law, upon
      any such private sale or sales, to purchase the whole or any part of the
      Collateral so sold, free of any right or equity of redemption in the Pledgor,
      which right or equity is hereby waived or released. The Secured Party shall
      apply any Proceeds from time to time held by it and the net proceeds of any
      such
      collection, recovery, receipt, appropriation, realization or sale, after
      deducting all reasonable costs and expenses of every kind incurred therein
      or
      incidental to the care or safekeeping of any of the Collateral or in any way
      relating to the Collateral or the rights of the Secured Party hereunder,
      including, without limitation, reasonable attorneys’ fees and disbursements, to
      the payment in whole or in part of the Obligations, in such order as the Secured
      Party may elect, and only after such application and after the payment by the
      Secured Party of any other amount required by any provision of law, including,
      without limitation, Section 9.610 of the UCC, need the Secured Party account
      for
      the surplus, if any, to the Pledgor. To the extent permitted by applicable
      law,
      the Pledgor waives all claims, damages and demands it may acquire against the
      Secured Party arising out of the exercise by the Secured Party of any of its
      rights hereunder except to the extent any thereof arise solely from the willful
      misconduct of the Secured Party. If any notice of a proposed sale or other
      disposition of Collateral shall be required by law, such notice shall be deemed
      reasonable and proper if given at least 10 days before such sale or other
      disposition.

     

    
      
         

      

      
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    (b) The
      Pledgor recognizes that the Secured Party may be unable to effect a public
      sale
      of any or all the Interests, by reason of certain prohibitions contained in
      the
      Securities Act of 1933, as now in effect or as hereafter amended, or any similar
      statute hereafter adopted with similar purpose or effect (the “Securities Act”)
      and applicable state securities laws or otherwise, and may be compelled to
      resort to one or more private sales thereof to a restricted group of purchasers
      which will be obliged to agree, among other things, to acquire such securities
      for their own account for investment and not with a view to the distribution
      or
      resale thereof. The Pledgor acknowledges and agrees that any such private sale
      may result in prices and other terms less favorable to the Secured Party than
      if
      such sale were a public sale and agrees that such circumstances shall not,
      in
      and of themselves, result in a determination that such sale was not made in
      a
      commercially reasonable manner. The Secured Party shall be under no obligation
      to delay a sale of any of the Interests for the period of time necessary to
      permit any Issuer to register such securities for public sale under the
      Securities Act, or under applicable state securities laws, even if any Issuer
      would agree to do so.

     

    (c) The
      Pledgor further agrees to use its best efforts to do or cause to be done all
      such other acts as may be necessary to make any sale or sales of all or any
      portion of the Interests pursuant to this Section valid and binding and in
      compliance with the formation and governance documents of each Issuer and any
      other applicable law, treaty, rule, or regulation or other determination of
      any
      court, board, commission, agency or instrumentality of the federal or state
      government or of any municipality or any agency or other political subdivision.
      The Pledgor further agrees that a continuing breach of any of the covenants
      contained in this Section will cause irreparable injury to the Secured Party,
      that the Secured Party has no adequate remedy at law in respect of such breach
      and, as a consequence, that each and every covenant contained in this Section
      shall be specifically enforceable against the Pledgor, and the Pledgor hereby
      waives and agrees not to assert any defenses against an action for specific
      performance of such covenants except for a defense that no Event of Default
      has
      occurred.

     

    
      
         

      

      
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    10. Secured
      Party: Duties: Standard of Care.
      The
      powers conferred on Secured Party hereunder are solely to protect its interests
      in the Collateral and shall not impose on it any duty to exercise such
      powers.

     

    11. Choice
      of Law; Consent to Jurisdiction; Waiver of Jury Trial.

     

    (a) THE
      VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT,
      AND THE RIGHTS OF THE PARTIES HERETO, SHALL BE DETERMINED UNDER, GOVERNED BY,
      AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
      TEXAS.

     

    (b) THE
      PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
      AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS
      LOCATED IN THE COUNTY OF HARRIS, STATE OF TEXAS OR, AT THE SOLE OPTION OF
      SECURED PARTY, IN ANY OTHER COURT IN WHICH SECURED PARTY SHALL INITIATE LEGAL
      OR
      EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER
      IN CONTROVERSY. PLEDGOR WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO
      OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH
      THIS
      SECTION 11.

     

    (c) WAIVER
      OF RIGHTS TO JURY TRIAL.
      THE
      PLEDGOR AND SECURED PARTY HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY,
      IRREVOCABLY, AND UNCONDITIONALLY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY
      ACTION, SUIT, PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION THAT RELATES TO
      OR
      ARISES OUT OF ANY OF THIS AGREEMENT OR THE ACTS OR OMISSIONS OF SECURED PARTY
      IN
      THE ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT LOAN
      DOCUMENT OR OTHERWISE WITH RESPECT THERETO. THE PROVISIONS OF THIS SECTION
      ARE A
      MATERIAL INDUCEMENT FOR SECURED PARTY ENTERING INTO THIS
      AGREEMENT.

     

    12. Amendments:
      etc.
      No
      amendment or waiver of any provision of this Agreement nor consent to any
      departure by Pledgor herefrom, shall in any event be effective unless the same
      shall be in writing and signed by Secured Party, and then such waiver or consent
      shall be effective only in the specific instance and for the specific purpose
      for which given. No failure on the part of Secured Party to exercise, and no
      delay in exercising any right under this Agreement, the Credit Agreement, or
      otherwise with respect to any of the Obligations, shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right under this
      Agreement, the Credit Agreement, or otherwise with respect to any of the
      Obligations preclude any other or further exercise thereof or the exercise
      of
      any other right. The remedies herein provided in this Agreement or otherwise
      with respect to any of the Obligations are cumulative and not exclusive of
      any
      remedies provided by law.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    13. Notices.
      Unless
      otherwise specifically provided herein, any notice or other communication herein
      required or permitted to be given shall be given in accordance with the terms
      of
      Section 8.3 of the Credit Agreement.

     

    14. Continuing
      Security Interest.
      This
      Agreement shall create a continuing Security Interest in the Collateral and
      shall: (i) remain in full force and effect until the indefeasible payment in
      full of the Obligations, and the full and final termination of any commitment
      to
      extend any financial accommodations under the Credit Agreement; (ii) be
      binding upon Pledgor, its successors and assigns; and (iii) inure to the
      benefit of Secured Party and its successors, transferees, and assigns. Upon
      the
      indefeasible payment in full of the Obligations, and the full and final
      termination of any commitment to extend any financial accommodations under
      the
      Credit Agreement, the Security Interests granted hereby shall automatically
      terminate and all rights to the Collateral shall revert to Pledgor. Upon any
      such termination, Secured Party will, at Pledgor’s expense, execute and deliver
      to Pledgor such documents as Pledgor shall reasonably request to evidence such
      termination and will return to Pledgor all certificates or instruments
      representing or evidencing the Collateral, then in the Secured Party’s
      possession. Such documents shall be prepared by Pledgor and shall be in form
      and
      substance satisfactory to Secured Party.

     

    15. Security
      Interest Absolute.
      To the
      maximum extent permitted by law, all rights of Secured Party and Security
      Interests hereunder, and all obligations of the Pledgor hereunder, shall be
      absolute and unconditional irrespective of:

     

    (a) any
      lack
      of validity or enforceability of any of the Obligations or any other agreement
      or instrument relating thereto, including the Credit Agreement or any of the
      other Loan Documents; or

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Obligations, or any other amendment or waiver of or any consent
      to
      any departure from the Credit Agreement or any of the other Loan Documents,
      or
      any other agreement or instrument relating thereto; or

     

    (c) any
      exchange, release or non-perfection of any other collateral, or any release
      or
      amendment or waiver of or consent to departure from any guaranty for all or
      any
      of the Obligations.

     

    To
      the
      maximum extent permitted by law, Pledgor hereby waives any right to require
      Secured Party to pursue any other remedy in Secured Party’s power
      whatsoever.

     

    16. Headings.
      Section
      and subsection headings in this Agreement are included herein for convenience
      of
      reference only and shall not constitute a part of this Agreement or be given
      any
      substantive effect.

     

    17. Severability.
      In case
      any provision in or obligation under this Agreement shall be invalid, illegal
      or
      unenforceable in any jurisdiction, the validity, legality and enforceability
      of
      the remaining provisions or obligations, or of such provision or obligation
      in
      any other jurisdiction, shall not in any way be affected or impaired
      thereby.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

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

     

    19. Waiver
      of Marshaling.
      Pledgor
      and Secured Party acknowledge and agree that in exercising any rights under
      or
      with respect to the Collateral: (i) Secured Party is under no obligation to
      marshal any collateral pledged to it; (ii) may, in its absolute discretion,
      realize upon such Collateral in any order and in any manner it so elects; and
      (iii) may, in its absolute discretion, apply the proceeds of any or all of
      such
      Collateral to the obligations secured by the Collateral in any order and in
      any
      manner it so elects.

     

    [Signature
      Page Follows]

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, Pledgor and Secured Party have caused this Agreement to be
      duly
      executed and delivered by their officers thereunto duly authorized as of the
      date first above written.

     

    
      	 	 	 
	 	PLEDGOR:
	 	 
	 	UNITED HERITAGE CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ C.
              Scott
              Wilson,
	 	
              
C.
              Scott Wilson,
	 	Chief
              Executive Officer and President

    

    

       

      
        	 	 	 
	 	SECURED
                PARTY:
	 	 
	 	STERLING BANK
	 
 	 
 	 
 
	 	By:  	/s/ Daniel
                G.
                Steele,
	 	
                
Daniel
                G. Steele,
	 	Senior
                Vice President

      

       

    

     

    

      Signature
        Page to Stock Pledge Agreement

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
      A

     

    TO

     

    STOCK
      PLEDGE AGREEMENT

     

    Pledged
      Shares

     

    
      	
               

              Issuer

            	
              Number
                of

              Shares

            	
              Class

            	
              Certificate

              Number(s)

            	
              Former
                Name, if

              any,
                in which

              Certificate
                Issued

            	
              Pledgor’s

              Percentage

              Ownership

            	
              Jurisdiction
                of

              Incorporation

            

    

     

    
      	
              UHC
                New Mexico Corporation

            	
              1000

            	
              Common

            	
              3

            	
              None

            	
              100%

            	
              New
                MexicoSUBORDINATION
      AGREEMENT

    

    THIS
      SUBORDINATION AGREEMENT (this “Agreement”)
      is
      executed by and among LOTHIAN OIL INC. (“Subordinated
      Lender”)
      and
      UNITED HERITAGE CORPORATION and UHC NEW MEXICO CORPORATION (collectively,
“Borrower”)
      and
      Sterling Bank, a Texas state chartered bank (“Senior
      Lender”),
      dated
      June 16, 2006, to be effective as of March 31, 2006.

     

    RECITALS:

     

    A.  Borrower
      executed a promissory note dated October 7, 2005, made payable to the order
      of
      Subordinated Lender in the original principal amount of $4,000,000.00 (the
      “Subordinated
      Note”).
      The
      Subordinated Note evidences a $4,000,000.00 extension of credit from
      Subordinated Lender to Borrower pursuant to that certain Secured Credit
      Agreement dated effective October 7, 2005 (the “Subordinated
      Credit Agreement”).
      

     

    B.  Borrower,
      Subordinated Lender, and certain other affiliates of Borrower and Senior Lender
      entered into an Amended and Restated Credit Agreement dated the same date as
      this Agreement (as amended, restated, or supplemented, the “Credit
      Agreement”)
      under
      which Senior Lender has agreed to extend credit to Borrower and certain other
      affiliates of Borrower in the form of a revolving credit facility.

     

    C.  As
      an
      inducement and a condition to Senior Lender extending credit to Borrower, Senior
      Lender has required that Subordinated Lender agrees to the terms and conditions
      of and execute and deliver, this Agreement.

     

    AGREEMENTS:

     

    In
      consideration of the mutual covenants and promises of this Agreement, and for
      other consideration, the receipt and adequacy of which are hereby acknowledged,
      Borrower, Subordinated Lender and Senior Lender agree as follows:

     

    1.  Definitions.
      Unless
      otherwise defined in this Agreement or unless the context requires otherwise,
      each capitalized term used in this Agreement has the meaning given such term
      in
      the Credit Agreement. As used in this Agreement:

     

    Debt
      means
      (without duplication), for any Person, (a) all obligations required by GAAP
      to be classified upon such Person’s balance sheet as liabilities,
      (b) liabilities to the extent secured (or for which and to the extent the
      holder of the Debt has an existing right, contingent or otherwise, to be so
      secured) by any Lien existing on property owned or acquired by that Person,
      (c) capital leases and other obligations that have been (or under GAAP
      should be) capitalized for financial reporting purposes, and (d) all
      guaranties, endorsements, letters of credit, and other contingent liabilities
      with respect to Debt or obligations of others. For purposes hereof, the Debt
      of
      any Person shall include the Debt of any partnership or joint venture (other
      than a joint venture that is itself a corporation or limited liability company)
      in which such Person is a general partner or a joint venturer, unless such
      Debt
      is expressly made non-recourse to such Person.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Debtor
      Relief Laws
      means
      Title 11 of the United States Code, as amended from time to time, and any and
      all applicable laws regarding liquidation, conservatorship, bankruptcy,
      assignment for the benefit of creditors, moratorium, rearrangement,
      receivership, suspension of payments, insolvency, reorganization, or similar
      laws affecting the rights of creditors generally, as in effect from time to
      time
      and as hereafter amended.

     

    Event
      of Default
      means an
“Event of Default” under and as defined in the Credit Agreement.

     

    GAAP
      means
      generally accepted accounting principles of the Accounting Principles Board
      of
      the American Institute of Certified Public Accountants and the Financial
      Accounting Standards Board that are applicable from time to time.

     

    Governmental
      Authority
      means
      nation or government, any state or other political subdivision thereof, any
      agency, authority, instrumentality, regulatory body, court, administrative
      tribunal, central bank or other entity exercising executive, legislative,
      judicial, taxing, regulatory or administrative powers or functions of, or
      pertaining to, government.

     

    Person
      means
      any individual, partnership, limited partnership, corporation, limited liability
      company, business trust, joint stock company, trust, unincorporated association,
      joint venture, syndicate, Governmental Authority or other entity or organization
      of whatever nature.

     

    Senior
      Debt
      means
      the “Obligations” under and as defined in the Credit Agreement.

     

    Senior
      Loan Documents
      means
      the Credit Agreement, the Senior Security Documents, the promissory note
      evidencing the Senior Debt, and all related agreements, documents and
      instruments.

     

    Senior
      Security Documents
      is
      defined in Section
      2.

     

    Subordinated
      Debt
      means
      the principal of and interest on the Subordinated Note and all other Debt of
      Borrower to Subordinated Lender, whether direct, indirect, fixed, contingent,
      liquidated, unliquidated, joint, several, or joint and several, now or hereafter
      existing, due or to become due whether evidenced in writing or not, together
      with all costs, expenses, and attorneys’ fees incurred in the enforcement or
      collection thereof, and including, without limitation, interest thereon after
      the commencement of any proceedings under any Debtor Relief Laws.

     

    Subordinated
      Loan Documents
      means
      the Subordinated Credit Agreement, the Subordinated Note and the Subordinated
      Security Documents.

     

    Subordinated
      Note
      means
      that certain promissory described in the first recital above.

     

    Subordinated
      Security Documents
      is
      defined in Section
      2.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    2.  Subordination.
      Until
      the Senior Debt is paid in full and the Credit Agreement has been irrevocably
      terminated, (a) any payment or distribution in respect of the Subordinated
      Debt
      is and shall be expressly junior and subordinated in right of payment to all
      amounts due and owing upon all Senior Debt outstanding from time to time, (b)
      except as expressly provided in Section
      3
      hereof,
      Subordinated Lender may not receive or accept any payment in any form with
      respect to the Subordinated Debt and (c) any liens or security interests now
      or
      hereafter securing payment of any and all Subordinated Debt, including, without
      limitation, in connection with those certain security instruments securing
      the
      Subordinated Debt described on Exhibit B attached hereto (collectively the
      “Subordinated
      Security Documents”),
      are
      expressly subordinated to the liens and security interests now or hereafter
      securing the Senior Debt, including, without limitation, in connection with
      that
      certain Deed of Trust and other security instruments securing the Senior Debt
      described on Exhibit A attached hereto (collectively the “Senior
      Security Documents”),
      which
      Senior Security Documents cover all assets now owned and hereafter-acquired
      of
      Borrower; in each case, including all other notes and security instruments
      executed in connection therewith, and each amendment, extension, refinancing,
      restatement or other modification thereof. The Subordinated Lender hereby agrees
      that they will not obtain additional liens or security interests on assets
      of
      any Borrower to secure the Subordinated Debt other than pursuant to the
      Subordinated Security Documents described on Exhibit B attached hereto. The
      scheduled maturity date under the Subordinated Note may not be sooner than
      three
      (3) months after the maturity date of the Senior Debt.

     

    3.  Payment
      on Subordinated Debt.
      

     

    (a)  If,
      but
      only if, the Interest Payment Conditions (as hereinafter defined in this
Section
      3)
      are
      satisfied, Borrower may pay Subordinated Lender accrued interest payments (but
      not payments of principal) on the Subordinated Note pursuant to the terms
      thereof (the “Permitted
      Interest Payments”).
      The
      term, “Interest
      Payment Conditions,”
as
      used herein, means that: (i) no Default or Event of Default (as such terms
      are
      defined in the Credit Agreement) has occurred and is continuing, and (ii) no
      Default or Event of Default would result from the making of any such Permitted
      Interest Payment. If the Interest Payment Conditions are not satisfied with
      respect to any calendar month, such that the Permitted Interest Payments
      attributable to such calendar month may not be made pursuant to this Agreement,
      then such Permitted Interest Payments shall continue to be an obligation of
      Borrower to Subordinated Lender subject to the terms of this Agreement. If
      the
      Interest Payment Conditions are not satisfied with respect to any calendar
      month, resulting in the Permitted Interest Payments for that month not being
      made, then at the end of any subsequent calendar month, if the Interest Payment
      Conditions are satisfied based on a cumulative calculation that includes all
      unpaid Permitted Interest Payments, then the sum of the unpaid Permitted
      Interest Payments for all such previous calendar months may be paid. Principal
      payments may not be made until the Senior Debt is paid in full and the Senior
      Credit Agreement has been irrevocably terminated.

     

    (b)  If
      Subordinated Lender receives any payment or distribution in respect of the
      Subordinated Debt, or any part thereof, in violation of this Agreement,
      Subordinated Lender shall hold any amount so received in trust for Senior Lender
      and will promptly turn over such payment to Senior Lender, in the form received
      (with any necessary endorsements), to be applied to the Senior
      Debt.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.  Proceedings
      Against Borrower or any Guarantor.
      Until
      the Senior Debt is paid in full and the Credit Agreement irrevocably terminated,
      Subordinated Lender may not, without the consent of the Senior Lender (which
      consent will not reasonable withheld),

     

    (a)  exercise
      any remedies, or commence any action or proceeding (or join with any other
      creditor in commencing any action or proceeding, including an action or
      proceeding under any Debtor Relief Law) to recover all or any part of the
      Subordinated Debt from Borrower or from any guarantor of the Subordinated Debt
      or any Subsidiary of Borrower or

     

    (b)  exercise
      any remedies, or
      commence
      any action or proceeding against Borrower
      or any
      assets of Borrower
      to
      foreclose, levy or realize against any assets of Borrower,
      including, without limitation, pursuant to the Subordinated Security Documents,
      or otherwise take any action or pursue any remedies which are available to
      the
      Senior Lender under Senior Security Documents.

     

    5.  Waiver
      and Subrogation.
      Subordinated Lender hereby waives and agrees not to assert against Senior Lender
      any rights which a guarantor or surety of Debt of any Borrower could assert.
      Notwithstanding the immediately preceding sentence, nothing in this Agreement
      shall cause Subordinated Lender to be deemed or treated as a guarantor or
      surety. Subordinated Lender shall be subrogated, to the extent of any amounts
      required to be paid over to Senior Lender pursuant to the terms of this
      Agreement, to all rights of Senior Lender to receive any payments or
      distributions applicable to the Senior Debt; provided,
      however,
      that
      Subordinated Lender may not enforce such rights until all of the Senior Debt
      has
      been paid in full and the Credit Agreement has been irrevocably
      terminated.

     

    6.  Debtor
      Relief Laws.
      In the
      event of any proceedings under any Debtor Relief Laws involving Borrower (other
      than in the capacity of a creditor), Subordinated Lender may, to the extent
      applicable, and at Senior Lender’s request shall, file any claims, proofs of
      claim, or other instruments of similar character necessary to (a) have its
      claim
      allowed, or (b) enforce the obligation of Borrower, in each case with respect
      to
      the Subordinated Debt. If Subordinated Lender does not file such claim, proof
      of
      claim or other instrument of similar character within 20 days prior to the
      bar
      date or other deadline for filing such claim, proof of claim, or instrument,
      Senior Lender may, as attorney-in-fact for Subordinated Lender, with full power
      of substitution, and Subordinated Lender hereby appoints Senior Lender
      attorney-in-fact for Subordinated Lender, file any such claim, proof of claim,
      or other instrument of similar character on behalf of Subordinated Lender.
      

     

    7.  Acceleration.
      Without
      limiting in any manner the subordination as set forth in Section
      2,
      if any
      Senior Debt becomes due and payable by acceleration or upon its final maturity,
      no payment or distribution shall thereafter be made on account of the
      Subordinated Debt until all Senior Debt has been paid in full and the Credit
      Agreement has been irrevocably terminated.

     

    8.  No
      Impairment.
      Senior
      Lender may, at any time and from time to time, without the consent of or notice
      to Subordinated Lender, without incurring responsibility to Subordinated Lender,
      and without impairing or releasing any of Senior Lender’s rights, or any of the
      obligations of Subordinated Lender under this Agreement:

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (a)  change
      the amount, manner, place, or terms of payment, or change or extend the time
      of
      payment of or renew or alter all or any part of the Senior Debt or amend,
      modify, supplement, or restate, any of the Loan Documents in any manner
      whatsoever;

     

    (b)  sell,
      exchange, release, or otherwise deal with all or any part of any property
      pledged or mortgaged to secure all or any part of the Senior Debt;

     

    (c)  release
      anyone liable in any manner for the payment or collection of all or any part
      of
      the Senior Debt;

     

    (d)  exercise
      or refrain from exercising any rights against the Borrower, any of it
      Subsidiaries and others; and

     

    (e)  apply
      any
      sums, by whomsoever paid or however realized, to the Senior Debt.

     

    Subordinated
      Lender agrees that if Senior Lender agrees to any sale, exchange, release,
      or
      transfer of all or any part of any property pledged or mortgaged to secure
      all
      or any part of the Senior Debt, such sale, exchange, release, or transfer shall
      be made free of any liens or security interests securing the Subordinated Debt.
      Subordinated Lender further agrees to execute any and all documents or
      instruments requested by Borrower or Senior Lender to evidence the release
      of
      any such liens and security interests of Subordinated Lender. 

     

    9.  Evidence
      of Subordination.
      The
      Subordinated Lender will:

     

    (a)  cause
      all
      Subordinated Debt to be evidenced by a note, debenture or other instrument
      evidencing the Subordinated Debt;

     

    (b)  cause
      any
      such note, debenture, or instrument evidencing the Subordinated Debt to include
      a conspicuous written statement or legend to the effect that such note,
      debenture, or other instrument is subordinated to the Senior Debt in favor
      of
      Senior Lender in the manner and to the extent set forth in this
      Agreement;

     

    (c)  any
      and
      all security instruments securing the Subordinated Debt to include a conspicuous
      written statement or legend to the effect that such security instrument is
      subordinated to the Senior Security Documents in favor of Senior Lender in
      the
      manner and to the extent set forth in this Agreement; and

     

    (d)  mark
      the
      books of Subordinated Lender to show that the Subordinated Debt is subordinated
      to the Senior Debt in the manner and to the extent set forth in this Agreement.
      The Subordinated Lender and Borrower may not amend, extend, refinance or
      otherwise modify the Subordinated Note without Senior Lender’s prior written
      consent and will execute any and all other instruments necessary as required
      by
      the Senior Lender to subordinate the Subordinated Debt to the Senior Debt as
      herein provided.

     

    10.  Other
      Agreement.
      Notwithstanding anything to the contrary set forth in this Agreement, the
      Subordinated Security Instruments or in the Senior Loan Documents, the junior
      liens and security interests evidenced by the Subordinated Security Documents
      are hereby approved by Senior Lender as a “Permitted Lien” under the Credit
      Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    11.  Attorneys’
      Fees.
      If
      either Subordinated Lender or Senior Lender employs an attorney or attorneys
      to
      enforce or defend its rights under this Agreement, such Lender shall be entitled
      to recover from Borrower its court costs, reasonable attorneys’ fees, and other
      costs of enforcement.

     

    12.  Acceptance
      Waiver.
      Notice
      of acceptance of this Agreement is hereby waived.

     

    13.  Amendment.
      Neither
      the Subordinated Note, Subordinated Credit Agreement nor the Subordinated
      Security Documents may be amended, extended, renewed, or replaced without the
      prior written consent of the Senior Lender. 

     

    14.  Counterparts.
      This
      Agreement may be executed in any number of counterparts with the same effect
      as
      if all signatories had signed the same document. All counterparts must be
      construed together to constitute one and the same instrument. This Agreement
      may
      be transmitted and signed by facsimile and shall have the same effect as
      manually-signed originals and shall be binding on all parties. In making proof
      of this Agreement, it shall not be necessary to produce or account for more
      than
      one such counterpart.

     

    15.  Binding
      Effect.
      This
      Agreement is binding upon Senior Lender and Subordinated Lender and their
      respective successors and assigns.

     

    16.  Assignment.
      Until
      all the Senior Debt is paid in full and the Credit Agreement irrevocably
      terminated, Subordinated Lender covenants and agrees that it will not sell,
      assign, or otherwise transfer its security interests under the Subordinated
      Security Documents executed in favor of Subordinated Lender nor sell, assign
      or
      otherwise transfer or further encumber the Subordinated Debt, any part thereof,
      or any interest therein unless the assignee agrees to be bound by this
      Agreement. Senior Lender’s rights under this Agreement may be assigned in whole
      or in part in connection with any partial or complete assignment or transfer
      of
      the Senior Debt.

     

    17.  Choice
      of Law.
      THIS
      AGREEMENT MUST BE CONSTRUED, AND ITS PERFORMANCE ENFORCED, UNDER TEXAS
      LAW.

     

    [Signatures
      appear on the following page.]

     

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    EXECUTED
      as of the date set out in the Preamble.

     

    
      	 	 	 
	 	
              STERLING
                BANK, 

              a
                Texas state chartered bank

            
	 	 	 
	 	By:  	/s/
              Daniel
              G. Steele
	 	
              
Daniel
              G. Steele
	 	
              Senior
                Vice President

            

    

     

    
      
        	
                 

              	
                 

              	
                 

              
	
                 

              	
                LOTHIAN
                  OIL INC.

              
	 	 	 
	 	
                By:  

              	
                /s/
                  C.
                  Scott Wilson 

              
	
                 

              	
                
                  

                

                C.
                  Scott Wilson 

              
	
                 

              	Chief
                Financial Officer

      

    

     

    
      
        	 	 	 
	 	
                
                  UNITED
                    HERITAGE CORPORATION

                

              
	 	 	 
	 	
                By:
                  

              	
                /s/
                  C. Scott Wilson 

              
	 	 	
                
                  

                

                C.
                  Scott Wilson 

              
	 	 	
                
                  Chief
                    Executive Officer and
                    President

                

              

      

       

      
        
          	
                   

                	
                   

                	
                   

                
	
                   

                	
                  UHC
                    NEW MEXICO CORPORATION

                
	 	 	 
	 	
                  By:  

                	
                  /s/
                    C.
                    Scott Wilson

                
	
                   

                	
                  
                    

                  

                  C.
                    Scott Wilson

                
	
                   

                	
                  Chief
                    Executive Officer and
                    President

                

        

      

         

    

    
      
        
          Signature
            Page to Subordination Agreement

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      A

    

    

    Amended
      and Restated Credit Agreement dated June 16, 2006, effective as of March 31,
      2006

    

    Revolving
      Note in the amount of $20,000,000 dated June 16, 2006, effective as of March
      31,
      2006

    

    Security
      Agreement, Pledge and Financing Statement dated June 16, 2006, effective as
      of
      March 31, 2006

    

    Amendment
      to and Ratification of Security Agreement, Pledge and Financing Statement dated
      June 16, 2006, effective as of March 31, 2006

    

    Deed
      of
      Trust, Mortgage, Assignment of Production, Security Agreement and Financing
      Statement dated June 16, 2006, effective as of March 31, 2006

    

    Ratification
      of and Amendment to Deed of Trust, Mortgage, Assignment of Production, Security
      Agreement and Financing Statement dated June 16, 2006, effective as of March
      31,
      2006

    

    Stock
      Pledge Agreement from United Heritage Corporation dated June 16, 2006, effective
      as of March 31, 2006

    

    Stock
      Pledge Agreement from Lothian Oil (USA) Inc. dated June 16, 2006, effective
      as
      of March 31, 2006

    

    Amendment
      and Ratification to Stock Pledge Agreement from Lothian Oil Inc. dated June
      16,
      2006, effective as of March 31, 2006

    

     

    
      
        
          Exhibit
            A

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      B

     

    

     

    Secured
      Credit Agreement dated October 7, 2005

     

    Term
      Note
      in the face amount of $4,000,000 dated October 7, 2005

     

    Deed
      of
      Trust, Mortgage, Assignment of Production, Security Agreement and Financing
      Statement dated October 7, 2005

     

     

    
 

    
      
         

      

      
        
          Exhibit
            B

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