Document:

Increasing Master Revoloving Credit Note

    
      
        

      
Exhibit 10.5

    
 

    MASTER
      REVOLVING CREDIT NOTE

    

    

    

      
        	
                Date:
                  

              	
                January
                  1, 2007

              

      

       

      
        	
                Maker:

              	
                International
                  Test Systems, Inc.

              

      

       

      
        	
                Payee:

              	
                Carey
                  G. Birmingham.

              

      

       

      
        	
                Place
                  for Payment:
                  

              	
                20022
                  Creek Farm, San Antonio, Texas
                  78259

              

      

       

      
        	
                Principal
                  Amount:

              	
                Seventy
                  Five Thousand and No/100 Dollars
                  ($75,000.00)

              

      

       

      
        	
                Annual
                  Interest Rate on Unpaid Principal from Date:

              	
                Eight
                  percent (8%) 

              

      

       

      
        	
                Annual
                  Interest Rate on Matured, Unpaid Amounts:

              	
                Eight
                  percent (8%)

              

      

       

      Terms
        of Payment (principal and interest): 

    

    Interest,
      if any, on any unpaid principal shall be due on the fifteenth (15th)
      of each
      month. All unpaid principal and interest is due and payable on December 31,
      2007.

    

    The
      unpaid principal balance, including any unpaid and accrued interest, shall
      at no
      time exceed the sum of Seventy Five Thousand and No/100 Dollars ($75,000.00).
      The unpaid principal balance of this note at any time shall be the total amounts
      loaned or advanced hereunder by Payee, less the amount of payments or
      prepayments of principal made hereon by or for the account of Maker. It is
      contemplated that by reason of prepayments hereon, there may be times when
      no
      indebtedness is due hereunder; but notwithstanding such occurrences, this note
      shall remain valid and shall be in full force and effect as to loans or advances
      made pursuant to and under the terms of this note subsequent to each such
      occurrence.

    

    Advances
      hereunder shall be made by Payee upon the oral or written request of the
      undersigned officer of Maker or any other officer of Maker authorized to make
      such a request.

    

    Maker
      promises to pay to the order of Payee at the place for payment and according
      to
      the terms of payment the principal amount plus interest at the rates stated
      above. All unpaid amounts shall be due by December 31, 2007.

    

     On
      default in the payment of this note or in the performance of any obligation
      in
      any instrument securing or collateral to it this note and all obligations in
      all
      instruments securing or collateral to it shall become immediately due at the
      election of Payee. Maker and each surety, endorser, and guarantor waive all
      demands for payment, presentations for payment, notices of intention to
      accelerate maturity, protests, and notices of protest.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If
      this
      note or any instrument securing or collateral to it is given to an attorney
      for
      collection, or if suit is brought for collection, or if it is collected through
      probate, bankruptcy, or other judicial proceeding, then Maker shall pay Payee
      all costs of collection, including reasonable attorney's fees and court costs,
      in addition to other amounts due.

    

     Interest
      on the debt evidenced by this note shall not exceed the maximum amount of
      nonusurious interest that may be contracted for, taken, reserved, charged,
      or
      received under law; any interest in excess of that maximum amount shall be
      credited on the principal of the debt or, if that has been paid, refunded.
      On
      any acceleration or required or permitted prepayment, any such excess shall
      be
      canceled automatically as of the acceleration or prepayment or, if already
      paid,
      credited on the principal of the debt or, if the principal of the debt has
      been
      paid, refunded. This provision overrides other provisions in this and all other
      instruments concerning the debt.

    

    The
      terms
      Maker and Payee and other nouns and pronouns include the plural if more than
      one. The terms Maker and Payee also include their respective successors,
      representatives, and assigns.

    

    

    
      	 	
              Maker

            
	 	
              International
                Test Systems, Inc.

            
	 	 
	 	 
	 	
              By:
                /s/ Carey G. Birmingham

            
	 	
              Carey
                G. Birmingham

            
	 	
              President,
                CEO and Sole DirectorPromissory Note

     

      
        

      

    

     

    Exhibit 10.1

    

    

    THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      AND
      IS TRANSFERABLE ONLY UPON THE CONDITIONS SPECIFIED HEREIN.

    

    

    

    PROMISSORY
      NOTE

    

    
      	
              US
                $493,643.77

            	 	 	
                                                                                     
                                        
                October 19, 2006

            

    

    

    FOR
      VALUE RECEIVED,
      the
      undersigned, Texhoma Energy, Inc., which has a business address of Suite 340,
      2200 Post Oak Blvd., Houston, Texas 77056 ("Maker"), hereby promises to pay
      to
      the order of Jacobs Oil & Gas Limited, which has an address of Suite 2404,
      1500 Howe Street, Vancouver BC, Canada V6Z 2N1 ("Payee"), the principal sum
      of
      Four hundred ninety three thousand, six hundred forty three Dollars and seventy
      seven Cents ($493,643.77) (the “Loan Funds”), in lawful money in United States
      of America, which shall be legal tender, bearing interest and payable as
      provided herein. This Promissory Note represents indebtedness owed to Mr. Frank
      Jacobs, the Maker’s former Chief Executive Officer, in management fees and
      expenses, which are summarized on the attached timetable (the “Timetable”),
      which is attached hereto as Exhibit
      A.
      Mr.
      Jacobs has undertaken to update the Maker on a quarterly basis of the
      outstanding amount due in Loan Funds, which is secured by this Promissory
      Note.

    

    Interest
      on the unpaid principal and accrued and unpaid interest on this Note shall
      bear
      interest at the rate of 6% per annum, accruing monthly in arrears until paid
      in
      full. Interest will be computed on the basis of a 360-day year. Interest on
      the
      Loan Funds shall accrue from the date such Loan Funds are communicated to the
      Maker in the form of the Timetable to be communicated to the Maker on a
      quarterly basis as described above.

    

    The
      entire amount of the Note, including any outstanding Loan Funds and any accrued
      and unpaid interest thereon shall be due and payable by the maker on demand.
      Any
      amount of principal or interest not paid on the Note when due (defined herein
      as
      an “Event of Default”) shall accrue interest at the rate of fifteen percent
      (15%) per annum until paid. In addition to the default interest on the Note,
      the
      full repayment of the Note and any accrued and unpaid interest shall be secured
      by a Security Agreement entered into between the Payee and the Maker, attached
      hereto as Exhibit
      B.
      

    

    This
      Note
      is intended to protect Mr. Jacobs both from currency fluctuations in connection
      with the Loan Funds and costs incurred by Mr. Jacobs to secure the amounts
      loaned to the Maker in connection with the Loan Funds.

    

    This
      Note
      may be prepaid in whole or in part, at any time and from time to time, without
      premium or penalty.

     

    
      
         

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    If
      any
      payment of principal or interest on this Note shall become due on a Saturday,
      Sunday or any other day on which national banks are not open for business,
      such
      payment shall be made on the next succeeding business day. This Note shall
      be
      binding upon and inure to the benefit of the Payee named herein and Payee’s
      respective successors and assigns. Each holder of this Note, by accepting the
      same, agrees to and shall be bound by all of the provisions of this Note. Payee
      may assign this Note or any of its rights, interests or obligations to this
      Note
      without the prior written approval of Maker. 

    

    No
      provision of this Note shall alter or impair the obligation of Maker to pay
      the
      principal of and interest on this Note at the times, places and rates, and
      in
      the coin or currency, herein prescribed.

    Notwithstanding
      anything to the contrary in this Note or any other agreement entered into in
      connection herewith, whether now existing or hereafter arising and whether
      written or oral, it is agreed that the aggregate of all interest and any other
      charges constituting interest, or adjudicated as constituting interest, and
      contracted for, chargeable or receivable under this Note or otherwise in
      connection with this loan transaction, shall under no circumstances exceed
      the
      Maximum Rate. 

    

    In
      the
      event the maturity of this Note is accelerated by reason of an Event of Default
      under this Note, any other agreement entered into in connection herewith or
      therewith, or by voluntary prepayment by Maker or otherwise, then earned
      interest may never include more than the Maximum Rate, computed from the dates
      of each advance of the loan proceeds outstanding until payment. If from any
      circumstance any holder of this Note shall ever receive interest or any other
      charges constituting interest, or adjudicated as constituting interest, the
      amount, if any, which would exceed the Maximum Rate shall be applied to the
      reduction of the principal amount owing on this Note, and not to the payment
      of
      interest; or if such excessive interest exceeds the unpaid balance of principal
      hereof, the amount of such excessive interest that exceeds the unpaid balance
      of
      principal hereof shall be refunded to Maker. In determining whether or not
      the
      interest paid or payable exceeds the Maximum Rate, to the extent permitted
      by
      applicable law (i) any nonprincipal payment shall be characterized as an
      expense, fee or premium rather than as interest; and (ii) all interest at any
      time contracted for, charged, received or preserved in connection herewith
      shall
      be amortized, prorated, allocated and spread in equal parts during the period
      of
      the full stated term of this Note. The term "Maximum Rate" shall mean the
      maximum rate of interest allowed by applicable federal or state
      law.

    

    Except
      as
      provided herein, Maker and any sureties, guarantors and endorsers of this Note
      jointly and severally waive demand, presentment, notice of nonpayment or
      dishonor, notice of intent to accelerate, notice of acceleration, diligence
      in
      collecting, grace, notice and protest, and consent to all extensions without
      notice for any period or periods of time and partial payments, before or after
      maturity, without prejudice to the holder. The holder shall similarly have
      the
      right to deal in any way, at any time, with one or more of the foregoing parties
      without notice to any other party, and to grant any such party any extensions
      of
      time for payment of any of said indebtedness, or to grant any other indulgences
      or forbearance whatsoever, without notice to any other party and without in
      any
      way affecting the personalliability of any party hereunder. If any efforts
      are
      made to collect or enforce this Note or any installment due hereunder, the
      undersigned agrees to pay all collection costs and fees, including reasonable
      attorney's fees. 

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    This
      Note
      shall be construed and enforced under and in accordance with the laws of the
      State of Texas.

    

    IN
      WITNESS WHEREOF, Maker has duly executed this Note as of the day and year first
      above written.

    

    Texhoma
      Energy, Inc.

     

    

    /s/
      Max Maxwell

    Max
      Maxwell

    Chief
      Executive Officer and President

     

     

     

    
      
        
           

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      Exhibit
        A

       

      Loan
        Funds Balance

       

      Capital
        Advances

       

      

        
          	
                  Jacobs
                    Oil & Gas

                	
                  US$

                

        

         

      

    

    
      
        	
                13-Mar-06
                  Electronic Payment 

              	
                $               
                   5,000.00

              	
                $                         
                  -

              	
                $             
                      5,000.00

              
	
                Luke
                  Zouvas

              	
                $                             -

              	
                $                         
                  -

              	
                $                
                               
                  -

              
	
                18-Apr-06
                  TD Bank account

              	
                $              
                  27,000.00

              	
                $                         
                  -

              	
                $              
                   32,000.00

              
	 	 	 	 
	
                Frank
                  Jacobs

              	 	 	 
	
                7-Apr-06
                  Electronic Transfer

              	
                $            
                  155,484.27

              	
                $                         
                  -

              	
                $          
                     155,484.27

              
	
                24-Apr-06
                  Electronic Transfer

              	
                $              
                  41,416.48

              	
                $            
                  3,099.25

              	
                $          
                     200,000.00  Exchange
                  losses and costs

              
	
                30-Apr-06
                  Electronic Transfer

              	
                $             
                  (41,416.48)

              	
                $                         
                  -

              	
                $           
                    158,583.52

              
	
                8-Sep-06
                  Electronic Transfer

              	
                $               88,697.54

              	
                $                    
                       -

              	
                $             
                  247,281.06  C$100,080.01

              

      

    

     

                                                                                                                                                                   
____________

      
        	
                30-Sep-06
                  Total Capital Advances

              	
                $       
                       
279,281.06

              

      

    

     

    

      Expenses

    

     

    

      
        	
                June
                  30, 2006 Balance

              	
                $              
                   29,362.71

              

      

    

     

    

      Professional
        Fees

      

        
          	
                  September
                    30, 2006 Balance

                	
                  $             
                    185,000.00

                

        

      

       

    

                                                                                                                                                                   
____________

      
        	
                Loan
                  Funds Balance

              	
                $             
                  493,643.77

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