Document:

Exhibit 10.7

                           UNITED HERITAGE CORPORATION
                            SUBSCRIPTION APPLICATION

                         (FOR ACCREDITED INVESTORS ONLY)

<TABLE>
<CAPTION>
<S>                                                    <C>
Name of Subscriber.................................   __________________________________________

Name of Co-Subscriber, if any......................   __________________________________________

Address of Subscriber(1)...........................   __________________________________________

                                                      ------------------------------------------

Address of Co-Subscriber (if different)(1).........   __________________________________________

                                                      ------------------------------------------

Aggregate principal amount of the Note subscribed     $___________________
to purchase........................................

Check enclosed (or wire transfer) in the amount of.
                                                      $------------------
</TABLE>

(1)   Permanent legal residence and domicile (other than Post Office Box) if the
      Subscriber  is an  individual,  or  permanent  principal  legal  executive
      offices  and  place  of  business  (other  than  Post  Office  Box) if the
      Subscriber is an entity.

                            PERSONAL AND CONFIDENTIAL

      The undersigned  ("Subscriber")  hereby makes application to purchase from
UNITED HERITAGE CORPORATION,  a Utah corporation (the "Company"),  a Convertible
Promissory  Note of the  Company in the form of Exhibit A attached  hereto  (the
"Subscribed Note"), in the aggregate principal amount set forth above,  pursuant
to a Note  Purchase  Agreement  in the form of  Exhibit B attached  hereto  (the
"Agreement") and a warrant to purchase __________ shares of the Company's Common
Stock  pursuant to warrant (the  "Warrant") in  substantially  the form attached
hereto as Exhibit C. The shares of common  stock of the  Company  into which the
Subscribed  Note is  convertible  and  underlying  the Warrant  are  hereinafter
referred to collectively as the "Underlying Shares". The Subscriber  understands
and agrees  that an  investment  in the  Company  is  subject to certain  risks,
including,  without limitation, the risks set forth in the Risk Factors attached
hereto as Exhibit D (the "Risk Factors").  The Subscriber understands and agrees
that this  Subscription  Application to purchase the Subscribed  Note is binding
and  irrevocable on the  Subscriber's  part, and that  acceptance by the Company
shall be in its sole  discretion and otherwise in accordance  with the terms set
forth in this  Subscription  Application,  the  Warrant and the  Agreement  (the
Agreement,  the Warrant, this Subscription  Application and the Risk Factors are
sometimes referred to collectively herein as the "Offering Materials").

                       [SUBSCRIBER QUESTIONNAIRE FOLLOWS]

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<PAGE>

<TABLE>
<CAPTION>
1. CONFIDENTIAL SUBSCRIBER INFORMATION
<S>                                                                         <C>
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Name of Subscriber

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If Subscriber is an Entity Provide Name                        Year Formed                                 State of Formation

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Street Address                                                 City                                         Zip

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Subscriber SS# or EIN/TIN               Cell Phone Number                   Work Phone Number               Home Phone Number

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Subscriber's Age          Date of Birth                  Married (Y/N)/Divorced                             # of Dependants

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Name and Address of Subscriber's Current Employer

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Type of Business of Subscriber                       Position/Title                                         Number of Years

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College/Degree                              Graduate School/Degree                                          Professional Licenses

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List Previous Investment Experience                                                                         Number of Years

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List Previous Private Placement Investments                                                                 Total Invested

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List any Securities Currently Owned                                                                         Total Value

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How does Subscriber Know the Company?

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Name of Primary Financial Institution                         Address                                       Phone Number

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Name in which Subscribed Note will be Held.  (check one below)

|_| Individually |_| A married man(woman) as his(her) separate property |_| Community property

|_| JTWROS |_| Tenants in common |_| Other (Describe):  ___________________________________________________________________________

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Aggregate Principal Amount of Subscribed Note                                              Amount Invested ($)

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Subscriber's  Signature                                                                                                   Date
</TABLE>

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<PAGE>

2 SUBSCRIBER'S ACCREDITED STATUS

      (a) ACCREDITED  INVESTOR  (REGULATION D). The Subscriber is an "Accredited
Investor" as that term is defined in Rule 501 of Regulation D promulgated  under
the  Securities  Act of 1933,  as amended (the  "Securities  Act"),  as follows:
[Please  initial  one  or  more  of  the  following  provisions  describing  the
Subscriber's accredited status as may be applicable.]

      (b) INDIVIDUALS. (CHECK ALL THAT APPLY)

      |_| The Subscriber's individual net worth* or combined net worth* with his
or her spouse exceeds $1,000,000;

      |_|  The  Subscriber's   individual  income,**  exclusive  of  any  income
attributable  to his or her spouse,  was in excess of $200,000  for the two most
recent  calendar  years  preceding  the  calendar  year  of  this   Subscription
Application, and the Subscriber reasonably expects an income,** exclusive of any
income  attributable to his or her spouse,  in excess of $200,000 in the current
calendar year;  and/or (3) the  Subscriber's  combined  income** with his or her
spouse  was in  excess  of  $300,000  for the two  most  recent  calendar  years
preceding the calendar year of this Subscription  Application and the Subscriber
and his or her  spouse  reasonably  expect a  combined  income**  in  excess  of
$300,000 in the current calendar year.

      * For purposes of this Subparagraph, the term "net worth" means the excess
of total value (including principal residence,  home furnishings and automobiles
at fair market value) over total  liabilities.  In computing net worth, the fair
market value of the  principal  residence of the  Subscriber  shall be valued at
cost,  including  cost of  improvements,  or at recently  appraised  value by an
institutional lender making a secured loan, net of encumbrances.

      ** The  Subscriber  may  determine  income by  adding  to his,  her or its
adjusted gross income any amounts  attributable  to tax exempt income  received,
losses claimed as a limited  partner in any limited  partnership,  deductions or
claims for depletion,  contributions to an IRA or Keogh retirement plan, alimony
payments and any amount by which income from  long-term  capital  gains has been
reduced in arriving at adjusted gross income.

      (c) ENTITIES (CHECK ALL THAT APPLY)

            (i) |_| ENTITY WITH VALUE EXCEEDING $5 MILLION.  The Subscriber is a
corporation,  partnership  (general  or  limited),  limited  liability  company,
limited liability  partnership or (Massachusetts)  business trust which: (1) was
not formed for the specific  purpose of acquiring the  Subscribed  Note, and (2)
has total assets in excess of $5,000,000.

            (ii) |_| ENTITY COMPRISED OF ACCREDITED INVESTORS. The Subscriber is
a corporation,  partnership  (general or limited),  limited  liability  company,
limited liability partnership or (Massachusetts)  business trust in which all of
the  Subscriber's  equity owners are "Accredited  Investors" as defined above in
subsection (i) of this section 2(c).

            (iii) |_| REVOCABLE TRUST. The Subscriber is a revocable trust (also
commonly  known as a family or  living  trust)  established  to  facilitate  the
distribution of the estate of the settlors (grantors):  (1) which may be revoked
or  amended at any time by the  settlors  (grantors);  (2) which  passes all tax
benefits of  investments  made by such trust through to the settlors  (grantors)
individually;  and (3) in which all of the settlors  (grantors)  are  Accredited
Investors as defined above in subsection (i) of this section 2(c).

            (iv) |_| TRUST WHOSE ASSETS EXCEED $5 MILLION.  The  Subscriber is a
trust that has total assets in excess of  $5,000,000,  and the person making the
investment  decision on behalf of the trust has such knowledge and experience in

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<PAGE>

financial  and business  matters that such person is capable of  evaluating  the
merits and risks of an investment in the Subscribed Note.

            (v) |_|  FINANCIAL  INSTITUTION  AS  TRUSTEE.  The  Subscriber  is a
financial  institution  which: (1) is a bank,  savings and loan association,  or
other regulated financial  institution;  (2) is acting in its fiduciary capacity
as trustee;  and (3) is subscribing  for the purchase of the Subscribed  Note on
behalf of the subscribing trust.

            (vi)  |_|  EMPLOYEE   BENEFIT  PLAN  (INCLUDING   KEOGH  PLAN)  WITH
SELF-DIRECTED INVESTMENTS AND SEGREGATED ACCOUNTS. The Subscriber is an employee
benefit plan within the meaning of the Employee  Retirement  Income Security Act
of 1974, as amended ("ERISA"),  and: (1) such plan is self directed and provides
for segregated accounts;  (2) the investment decision to purchase the Subscribed
Note is  being  made by a plan  participant  who is an  accredited  investor  as
defined above in subsection  (i) of this section 2(c); and (3) the investment in
the Subscribed Note is being made solely on behalf of such Accredited Investor.

            (vii)  |_|  EMPLOYEE   BENEFIT  PLAN  (INCLUDING  KEOGH  PLAN)  WITH
FINANCIAL  INSTITUTION AS TRUSTEE.  The  Subscriber is an employee  benefit plan
within the meaning of ERISA,  and the decision to invest in the Subscribed  Note
was made by a plan  fiduciary (as defined in Section  3(21) of ERISA),  which is
either a bank, savings and loan association,  insurance  company,  or registered
investment adviser.

            (viii) |_| EMPLOYEE  BENEFIT PLAN (INCLUDING KEOGH PLAN) WITH ASSETS
EXCEEDING  $5 MILLION.  The  Subscriber  is an employee  benefit plan within the
meaning of ERISA and has total assets in excess of $5,000,000.

            (ix) |_| TAX EXEMPT  501(C)(3)  ORGANIZATION.  The  Subscriber is an
organization  described in Section  501(c)(3)  of the  Internal  Revenue Code of
1986, as amended,  which organization was not formed for the specific purpose of
acquiring the Subscribed Note, and which organization has total assets in excess
of $5,000,000.

            (x) |_| BANK. The Subscriber is a bank as defined in Section 3(a)(2)
of the Securities Act.

            (xi) |_| SAVINGS AND LOAN  ASSOCIATION.  The Subscriber is a savings
and loan  association or other  institution as defined in Section  3(a)(5)(i) of
the Securities Act.

            (xii) |_| INSURANCE COMPANY.  The Subscriber is an insurance company
as defined in Section 2(14) of the Securities Act.

            (xiii) |_|  INVESTMENT  COMPANY.  The  Subscriber  is an  investment
company registered under the Investment Company Act of 1940.

            (xiv) |_| BUSINESS DEVELOPMENT COMPANY. The Subscriber is a business
development company as defined in Section 2(a)(48) of the Investment Company Act
of 1940.

            (xv) |_| SMALL  BUSINESS  INVESTMENT  COMPANY.  The  Subscriber is a
small  business   investment   company  licensed  by  the  U.S.  Small  Business
Administration  under Section 301(c) or (d) of the Small Business Investment Act
of 1958.

            (xvi) |_| PRIVATE BUSINESS  DEVELOPMENT COMPANY. The Subscriber is a
private  business  development  company as defined in Section  202(a)(22) of the
Investment Advisors Act of 1940.

      (xvii) |_|  REGISTERED  BROKER OR DEALER.  The  Subscriber  is a broker or
dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.

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<PAGE>

3. REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER

      The Subscriber and, if the Subscriber is an entity,  each of its officers,
directors,  partners, managers,  trustees,  beneficial owners, principals and/or
agents,  hereby represent and warrant to the Company, each of which is deemed to
be a separate representation and warranty, as follows:

      (a) RESIDENCE. The Subscriber's permanent legal residence and domicile, if
the  Subscriber  is an  individual,  or permanent  legal  executive  offices and
principal place of business,  if the Subscriber is an entity,  was and is at the
address  designated on the cover page of this  Subscription  Application at both
the time of the "offer" and the time of the "sale" of the Subscribed Note to the
Subscriber.

      (b) AGE. The  Subscriber,  if a natural  person,  is age eighteen  (18) or
over.

      (c) KNOWLEDGE AND EXPERIENCE; SOPHISTICATION (REGULATION D; BLUE SKY). The
Subscriber (together with his, her and/or its Advisors (as defined in subsection
(f) below)) has such  knowledge and  experience  in business,  financial and tax
matters including, in particular,  investing in private placements of securities
in  companies  similar  to the  Company,  so as to enable  them to  utilize  the
information  made  available to them in  connection  with this  offering to: (i)
evaluate  the merits and risks of an  investment  in the  Company and to make an
informed  investment  decision with respect  thereto;  and (ii) to reasonably be
assumed to have the  capacity  to protect  the  Subscriber's  own  interests  in
connection with the transaction contemplated by this Subscription Application.

      (d) MINIMUM NET WORTH (BLUE SKY).  An investment  in the  Subscribed  Note
will  not  exceed  ten  percent  (10%)  of the  Subscriber's  net  worth  if the
Subscriber  is an  entity,  or joint  net  worth  with his or her  spouse if the
Subscriber is a natural person.

      (e) RECEIPT  AND REVIEW OF OFFERING  MATERIALS.  The  Subscriber:  (i) has
received  the  Offering  Materials;  and  (ii)  has  read  each of the  Offering
Materials in its entirety and fully  understands the matters  discussed  therein
and the terms of thereof.

      (f) INDEPENDENT  REVIEW OF INVESTMENT  MERITS;  DUE DILIGENCE.  During the
course of the transactions  contemplated by this offering, and before purchasing
the  Subscribed  Note:  (i) the  Subscriber  had the  opportunity to engage such
investment   professionals   and   advisors   including,   without   limitation,
accountants,  appraisers,  investment, tax and legal advisors (collectively, the
"Advisors"),  each of whom are  independent  of the Company and its advisors and
agents  (including its legal counsel) to: (1) review the terms and conditions of
this  Subscription   Application,   the  Agreement,   and  the  information  and
disclosures contained in the Offering Materials;  (2) conduct such due diligence
review as the Subscriber and/or such Advisors deemed necessary or advisable, and
(3) to  provide  such  opinions  as to (A) the  investment  merits of a proposed
investment in the Subscribed  Note; (B) the tax  consequences of the purchase of
the Subscribed Note and the subsequent  disposition of the Subscribed  Note; and
(C) the effect of same upon the Subscriber's  personal financial  circumstances,
as the  Subscriber  and/or such  Advisors  may deem  advisable;  and (ii) to the
extent the Subscriber  availed himself,  herself or itself of this  opportunity,
received satisfactory information and answers from such Advisors.

      (g)  OPPORTUNITY  TO ASK  QUESTIONS  AND TO  REVIEW  DOCUMENTS,  BOOKS AND
RECORDS;   OPPORTUNITY  TO  MEET  WITH  REPRESENTATIVES  OF  THE  COMPANY;  FULL
SATISFACTION.  Without limiting the generality of subsections (e) and (f) above,
during  the  course  of  the  transaction   contemplated  by  this  Subscription
Application,  and before  purchasing the Subscribed Note, the Subscriber  and/or
his, her or its Advisors had the  opportunity,  to the extent they determined to
be  necessary  or  relevant in order to verify the  accuracy of the  information
contained  in the  Offering  Materials  and/or  to  evaluate  the  merits  of an
investment in the  Subscribed  Note: (i) to be provided with financial and other
written  information  about the Company (in  addition to that  contained  in the
Offering  Materials)  to the  extent the  Company  has such  information  in its
possession or could acquire it without  unreasonable effort or expense;  (ii) to
meet with  representatives  of the  Company  and to ask  questions  and  receive
answers  concerning the terms and conditions of this  Subscription  Application,

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<PAGE>

the Offering  Materials,  an investment in the Subscribed Note, and the business
of the  Company  and its  finances;  (iii) to review  all  documents,  books and
records of the Company; and (iv) to the extent the Subscriber and/or his, her or
its Advisors  availed  themselves  of this  opportunity,  received  satisfactory
information and answers.

            (h) RISK FACTORS.  The Subscriber  understands and acknowledges that
the purchase of the Subscribed  Note involves a number of significant  risks and
that  the  Subscriber  may  lose  the  Subscriber's  entire  investment  in  the
Subscribed Note.

      (i)  ACCEPTANCE  OF  INVESTMENT  RISKS.  The  Subscriber  understands  and
acknowledges  that:  (i)  an  investment  in  the  Subscribed  Note:  (1)  is  a
speculative  investment  with a high  degree of risk of loss and the  Subscriber
must, therefore, be able to presently afford a complete loss of this investment;
(2) the Subscriber  must be able to hold the Subscribed  Note and any Underlying
Shares due to, among other factors,  transfer  restrictions under applicable law
or regulation  and/or  inadequate  trading volume of the Company's common stock;
and (3) it may not be possible for the  Subscriber to liquidate  the  Subscribed
Note, or any Underlying  Shares,  in the case of emergency and/or other need and
the  Subscriber  must,  therefore,  have  adequate  means of  providing  for the
Subscriber's  current and future needs and personal  contingencies,  and have no
need for liquidity in this investment; and (ii) the Subscriber has evaluated the
Subscriber's  financial  resources  and  investment  position  in  view  of  the
foregoing,  and is able to  bear  the  economic  risk  of an  investment  in the
Subscribed Note.

      (j) NOTE  PURCHASED  FOR  SUBSCRIBER'S  OWN  ACCOUNT.  The  Subscriber  is
purchasing  the  Subscribed  Note: (i) as principal and not by any other person;
(ii) with the Subscriber's own funds and not with the funds of any other person;
and (iii) for the account of the  Subscriber,  and not as a nominee or agent and
not for the  account of any other  person.  The  Subscriber  is  purchasing  the
Subscribed Note for investment  purposes only for an indefinite  period, and not
with a view to the sale or distribution of any part or all thereof, by public or
private sale or other disposition. No person other than the Subscriber will have
any  interest,  beneficial  or  otherwise,  in  the  Subscribed  Note,  and  the
Subscriber is not obligated to transfer the Subscribed  Note to any other person
nor does the  Subscriber  have any  agreement  or  understanding  to do so.  The
Subscriber  understands  that the Company is relying in  material  part upon the
Subscriber's  representations  as set  forth in the  Agreement  and  herein  for
purposes of claiming the "Federal Exemptions" or "Blue Sky Exemptions" (as those
are defined in subsection  (l) herein),  and that the basis for such  exemptions
may not be presented if, notwithstanding the Subscriber's  representations,  the
Subscriber has in mind merely  acquiring the Subscribed  Note for resale of such
Subscribed Note or any Underlying Shares upon the occurrence or nonoccurrence of
some predetermined event, and the Subscriber has no such intention.

      (k) COMPLIANCE WITH INVESTMENT  LAWS. The Subscriber has complied with all
applicable  investment laws and regulations in force relating to the legality of
an investment in the Subscribed  Note by the Subscriber in any  jurisdiction  in
which he, she or it purchases the Subscribed Note or is otherwise  subject,  and
has obtained any consent,  approval or permission required of him, her or it for
the purchase of the Subscribed Note under such investment laws and regulations.

      (l) NO  REGISTRATION  OF  UNDERLYING  SHARES;  NO  OBLIGATION  TO REGISTER
SUBSCRIBED NOTE. The Subscriber  understands and acknowledges  that: (i) neither
the Subscribed  Note nor any  Underlying  Shares have been  registered  with the
Securities and Exchange  Commission  (the  "Commission")  under Section 5 of the
Securities  Act  in  reliance  upon  one  or  more  exemptions  afforded  by the
Securities Act and/or rules promulgated by the Commission pursuant thereto which
may be  selected  by the  Company  in its  sole  discretion  including,  without
limitation (collectively and severally,  the "Federal Exemptions"):  (1) Section
4(2) of the Securities Act for private offerings; and (2) Rule 506 of Regulation
D promulgated  under Section 4(2) of the Securities  Act for private  offerings;
(ii) the Subscribed  Note and the Underlying  Shares have not been, and will not
be, registered or qualified with any applicable state or territorial  securities
regulatory  agency  in  reliance  upon  one or  more  exemptions  afforded  from
registration or  qualification  afforded under the securities laws of such state

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or  territory  (the "Blue Sky Laws")  which  exemptions  may be  selected by the
Company  in its sole  discretion  (collectively  and  severally,  the  "Blue Sky
Exemptions");  and (iii) the Company is under no obligation and has no intent to
register the Subscribed  Note or any Underlying  Shares under the Securities Act
or the Blue Sky Laws.

            (m) RESALE  RESTRICTIONS  ON SUBSCRIBED  NOTE AND UNDERLYING  SHARES
PURSUANT TO SECURITIES LAWS. The Subscriber  understands and acknowledges  that:
(i) should the Company  elect to rely upon the  exemptions  afforded by Rule 506
under  Regulation  D, the  Subscribed  Note and the  Underlying  Shares  will be
classified,  pursuant to Rule 502(d) of Regulation D of the  Securities  Act, as
"restricted  securities"  acquired in a  transaction  under  Section 4(2) of the
Securities Act, which cannot be sold without  registration  under the Securities
Act or an exemption therefrom such as, by way of example and not limitation: (1)
Section  4(1)  of the  Securities  Act;  (2) the  so-called  "Section  4(1  1/2)
Exemption"  to the  Securities  Act  which,  pursuant  to  Section  4(1)  of the
Securities Act,  exempts from the provisions of the Securities Act requiring the
registration  of securities  certain  "private sales" which are effectuated in a
manner  similar  to private  placements  by issuers  under  Section  4(2) of the
Securities Act; and (3) Rule 144 and/or Rule 144A to the Securities Act; (ii) if
the Subscriber is an "Affiliate" of the Company (as such term is defined below),
he, she or it generally will not be able to sell, transfer, assign, or otherwise
dispose of the Subscribed  Note or any  Underlying  Shares under Rule 144; (iii)
the Company has not complied  with,  and is under no  obligation to comply with,
the provisions of Rule 144(c) relative to making certain information  concerning
the Company "publicly  available," and the Subscriber  therefore  generally will
not,  assuming  he,  she or it is a  non-Affiliate,  be able to sell,  transfer,
assign or otherwise  dispose of the  Subscribed  Note or any  Underlying  Shares
under  Rule 144 for a  period  of at  least  one (1)  year  from the date of the
Subscriber's  purchase of the  Subscribed  Note (with the  exception  of certain
transfers to estates and  beneficiaries);  (iv) should the Company rely upon the
exemption  afforded  by  Section  3(a)(11)  of the  Securities  Act and Rule 147
promulgated pursuant thereto for intrastate  offerings,  the Subscriber will not
be able to sell, transfer, assign or otherwise dispose of the Subscribed Note or
any Underlying  Shares for a period of at least nine (9) months from the date of
the last sale by the Company of its securities as part of an offering, including
the  offering  of  the  Subscribed  Note   contemplated  by  this   Subscription
Application, to any person who is not a resident of the State of California; and
(v) the  Subscribed  Note and the  Underlying  Shares  will also be  subject  to
applicable state securities laws that may require  registration or qualification
of the Subscribed  Note and Underlying  Shares in connection  with their resale,
unless an exemption from such  registration or  qualification  is available (for
example,  Section  25014(a) of the  California  Securities  Act exempts from the
provisions of Section 25130 of the  California  Securities  Act (which  requires
qualification  of  securities)  any offer or sale of a security by the bona fide
owner  thereof  for  his,  her or  its  own  account  if  the  sale:  (1) is not
accompanied by the publication of any advertisement,  and (2) is not effected by
or through a broker-dealer in a public offering).  In general, an "Affiliate" is
defined as a person who is a director or officer of a company,  or who  directly
or indirectly controls a company.  As a rule of thumb,  ownership of 10% or more
of a company's  voting stock  generally  will be deemed to  constitute  control,
while  ownership of less than 5% of a company's  voting stock will generally not
be deemed to constitute control.

            (n) SATISFACTION OF COUNSEL OF COMPANY AS TO TRANSFERS OF SUBSCRIBED
NOTE AND UNDERLYING  SHARES.  The Subscriber  understands and acknowledges that:
(i) prior to any sale,  transfer,  assignment,  pledge,  hypothecation  or other
disposition of the Subscribed  Note and any  Underlying  Shares,  the Subscriber
must  either:  (1)  furnish  the  Company  with a  detailed  explanation  of the
circumstances surrounding the proposed disposition;  furnish the Company with an
opinion of legal  counsel  (which may be the  Company's),  in form and substance
reasonably satisfactory to the Company and its legal counsel, to the effect that
such  disposition  is exempted from the  registration  and  prospectus  delivery
requirements  under the Securities  Act and the securities  laws of the state in
which the Subscriber is then  resident;  and legal counsel for the Company shall
have concurred in such opinion and the Company shall have advised the Subscriber
of such concurrence; or (2) satisfy the Company that a registration statement on
Form S-1,  Form SB-1, or Form SB-2 under the  Securities  Act (or any other form
appropriate  under the Securities Act, or any form replacing any such form) with
respect  to the  Subscribed  Note or the  Underlying  Shares  proposed  to be so
disposed of shall then be effective,  and that such disposition  shall have been
appropriately qualified or registered in accordance with the applicable Blue Sky
Laws; and (ii)  notwithstanding the foregoing,  if in the opinion of counsel for
the  Company,  the  Subscriber  has  acted  in a  manner  inconsistent  with the

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<PAGE>

representations   and  warranties  in  this  Subscription   Application  or  the
Agreement,  the  Company  may refuse to  transfer  the  Subscribed  Note and any
Underlying  Shares  until such time as counsel for the Company is of the opinion
that such transfer:  (1) will not require registration of the Subscribed Note or
any  Underlying   Shares  under  the  Securities   Act,  and   registration   or
qualification  of  the  Subscribed  Note  or any  Underlying  Shares  under  the
applicable  Blue Sky Laws; or (2) will otherwise  comply with the Securities Act
or the  applicable  Blue Sky Laws with  respect to the sale or  transfer  of the
Subscribed Note and any Underlying Shares. The Subscriber understands and agrees
that the  Company may refuse to  acknowledge  or permit any  disposition  of the
Subscribed  Note  and  any  Underlying  Shares  that is not in all  respects  in
compliance with this Subscription  Application,  and the Company intends to make
an appropriate notation in its records to that effect.

            (o) LEGEND ON  CERTIFICATES  TO COMPLY  WITH  SECURITIES  LAWS.  The
Subscriber  understands  and  agrees  that  the  certificates  representing  the
Underlying Shares, if and when issued, shall bear such legend as the Company may
deem  reasonably  necessary  or  advisable  to  facilitate  compliance  with the
Securities  Act and  the  securities  laws  of the  state  or  territory  of the
Subscriber's residence, including, without limitation, the following legend:

          THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT
          BEEN  REGISTERED  WITH THE UNITED  STATES  SECURITIES  AND
          EXCHANGE  COMMISSION (THE "COMMISSION") UNDER SECTION 5 OF
          THE UNITED STATES  SECURITIES ACT OF 1933, AS AMENDED (THE
          "SECURITIES ACT"), IN RELIANCE UPON ONE OR MORE EXEMPTIONS
          FROM   REGISTRATION  OR  QUALIFICATION   AFFORDED  BY  THE
          SECURITIES ACT AND/OR RULES  PROMULGATED BY THE COMMISSION
          PURSUANT  THERETO.  THE  SECURITIES  REPRESENTED  BY  THIS
          CERTIFICATE HAVE ALSO NOT BEEN REGISTERED OR QUALIFIED (AS
          THE CASE MAY BE) UNDER THE SECURITIES LAWS OF ANY STATE OR
          TERRITORY OF THE UNITED  STATES (THE "BLUE SKY LAWS"),  IN
          RELIANCE UPON ONE OR MORE EXEMPTIONS FROM  REGISTRATION OR
          QUALIFICATION  (AS THE CASE MAY BE)  AFFORDED  UNDER  SUCH
          SECURITIES LAWS. NEITHER THE COMMISSION NOR ANY SECURITIES
          REGULATORY  AGENCY OF ANY STATE OR TERRITORY OF THE UNITED
          STATES HAS  REVIEWED OR PASSED UPON OR ENDORSED THE MERITS
          OF THE OFFERING CONTEMPLATED BY THIS CERTIFICATE,  AND ANY
          REPRESENTATION  TO THE  CONTRARY  IS A  CRIMINAL  OFFENSE.
          THESE  SECURITIES  HAVE BEEN ACQUIRED FOR THE HOLDER'S OWN
          ACCOUNT FOR  INVESTMENT  PURPOSES ONLY AND NOT WITH A VIEW
          FOR RESALE OR DISTRIBUTION.

          THESE  SECURITIES ARE "RESTRICTED  SECURITIES"  WITHIN THE
          MEANING OF RULE 144 PROMULGATED  UNDER THE SECURITIES ACT.
          THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
          HYPOTHECATED, OR OFFERED FOR SALE, TRANSFER, ASSIGNMENT OR
          HYPOTHECATION,  WITHIN  THE  UNITED  STATES  OR ANY OF ITS
          TERRITORIES OR TO A UNITED STATES PERSON,  UNLESS: (i) THE
          SECURITIES  ARE  REGISTERED  PURSUANT  TO SECTION 5 OF THE
          SECURITIES ACT AND/OR REGISTERED OR QUALIFIED  PURSUANT TO
          ANY  APPLICABLE  BLUE  SKY  LAWS;  OR  (ii)  THE  PROPOSED
          TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
          DELIVERY  REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  THE
          REGISTRATION   AND   QUALIFICATION   PROVISIONS   OF   ANY
          APPLICABLE  BLUE SKY LAWS. AS A RESULT,  THESE  SECURITIES
          ARE SUITABLE ONLY FOR CERTAIN  SOPHISTICATED AND QUALIFIED
          INVESTORS WHO CAN BEAR THE FINANCIAL RISK OF AN INVESTMENT
          IN THESE SECURITIES FOR AN INDEFINITE PERIOD OF TIME.

                                 8
<PAGE>

            (p) COMPLETENESS AND ACCURACY OF INFORMATION.  All information which
the Subscriber has heretofore  furnished or furnishes herewith to the Company or
its agents is  complete  and  accurate  and may be relied upon by the Company in
determining the availability of an exemption from registration under Federal and
state  securities  laws in connection  with the offer and sale of the Subscribed
Note to the Subscriber in particular.

      (q) MATERIAL CHANGES IN INFORMATION. The Subscriber will notify and supply
corrective  information  to the Company  immediately  upon the occurrence of any
material change(s) in any information  provided by the Subscriber to the Company
occurring prior to the Closing,  (as defined in the Agreement),  of the purchase
by the Subscriber of the Subscribed Note.

      (r) COOPERATION.  Within five (5) days after receipt of a request from the
Company, the Subscriber will provide such information and deliver such documents
as may reasonably be necessary to comply with any and all laws and ordinances to
which the Company is subject.

      (s) OFFERING  REPRESENTATIONS  AND  COMMUNICATIONS.  With the exception of
officers,  directors and  employees of the Company,  no person (other than those
persons  described below) has provided any information  (other than the Offering
Materials) or made any oral or written  representations to the Subscriber and/or
his,  her or its  Advisors,  if any, in  connection  with this  offering,  which
information  and/or  representations  are  in  any  way  inconsistent  with  the
information and/or representations made in the Offering Materials.

      If  applicable,   describe  inconsistent  information  or  representations
provided, and identify person providing same:

      (t) RELIANCE UPON OFFERING MATERIALS AND INFORMATION  PROVIDED.  Except as
provided below, in evaluating the suitability of an investment in the Subscribed
Note, the Subscriber has not relied upon any representation or other information
(oral  or  written)  other  than as  stated  in the  Offering  Materials,  or as
contained in documents or answers to questions so furnished to the Subscriber or
his, her or its Advisors by the Company.

      If  applicable,   describe  inconsistent  representations  or  information
provided, and identify person providing same:

      (u) NO  AWARENESS  OF PUBLIC  ADVERTISING.  With the  exception  of direct
communication  to the  Subscriber  from an officer,  director or employee of the
Company and/or the provisions of the Offering Materials, and except as otherwise
provided  below,  the Subscriber is unaware of, is in no way relying on, and did
not become aware of this offering,  through or as a result of any form of public
advertising including,  without limitation, any advertisement,  article, notice,
leaflet or other communication (whether published in any newspaper, magazine, or
similar  media or broadcast  over  television or radio,  or otherwise  generally
disseminated or distributed).

      If applicable,  identify public  advertising not consistent with the above
representation:

      (v) NO GENERAL SOLICITATION. With the exception of direct communication to
the  Subscriber  by an officer,  director or employee of the Company  and/or the
provisions of the Offering  Materials,  and except as otherwise  provided below,
the  Subscriber  did not  subscribe to purchase the  Subscribed  Note, or become
aware of this  offering,  through or as the result of any public or  promotional
seminar or meeting to which the Subscriber  was invited by, or any  solicitation
of a  subscription  by, a person  not  previously  known  to the  Subscriber  in
connection with investments in securities generally.

         If applicable,  identify  general  solicitation not consistent with the
above representation:

                                       9
<PAGE>

            (w) |_| PRE-EXISTING  RELATIONSHIP WITH COMPANY. The Subscriber,  by
initialing this box,  represents that he, she or it has a pre-existing  personal
or business  relationship* with the Company or any of its managers,  officers or
controlling persons.

            * The term "pre-existing personal or business relationship" includes
any  relationship  consisting  of personal or business  contacts of a nature and
duration  which would enable a reasonably  prudent  purchaser to be aware of the
character,  business acumen and general business and financial  circumstances of
the person with whom the relationship exists.

            (x) INVESTMENT KNOWLEDGE. Does Subscriber believe that he/she/it has
sufficient  knowledge and  experience in financial and business  matters so that
he/she/it  is capable  of  evaluating  the  merits or risks of this  investment?
|_|Yes |_|No

            WHEREFORE, the Subscriber, as of the date set forth below, is deemed
to have executed this Subscription Application in the City of _________________,
County of _________________, State of ________________________.

                         SUBSCRIBER:

                         By:
                            ----------------------------------------------------
                               (Signature)

                         Print Name:
                                    --------------------------------------------

                         Print Title:
                                     -------------------------------------------

                         Date:
                              --------------------------------------------------

                                       10
<PAGE>

                                    EXHIBIT A

                           CONVERTIBLE PROMISSORY NOTE

                                       11
<PAGE>

                                    EXHIBIT B

                             NOTE PURCHASE AGREEMENT

                                       12

<PAGE>

                                    EXHIBIT C

                                     WARRANT

                                       13

<PAGE>

                                    EXHIBIT D

                                  RISK FACTORS

An investment in securities (the "Securities") of United Heritage Corporation
("Company") involves certain risks. Accordingly, prospective purchasers should
carefully consider the following:

GENERAL BUSINESS RISKS.

      Dependence on Existing Management. The success of the Company will depend
to a great extent on the efforts of Walter G. Mize, Chairman and Chief Executive
Officer, who is primarily responsible for the management of the Company's daily
operations. The loss or interruption of the services of Mr. Mize could have a
material adverse effect upon the Company's business operations and prospects.
The Company does not own any life insurance on the life of its key management
persons, nor do such persons currently have an employment agreement with the
Company.

      Licensing and Regulation. The Company's business may be subject to
licensing and regulation by numerous federal, state and local governmental
agencies. Although management believes that it is currently in compliance with
all of such licensing requirements and regulations, a finding that the Company
has failed to comply with one or more of such licensing requirements or
regulations could adversely impact the operations and future profitability of
the Company.

      Operating Losses. The Company has sustained operating losses for the past
three fiscal years of $884,898 in fiscal 2003, $1,374,313 in fiscal 2002 and
$855,325 in fiscal 2001. It has relied on cash from the sale of non-performing
assets and the sale of capital stock to continue operations. If the Company does
not become profitable, it is unlikely that it can continue to receive new
capital to continue operations.

RISKS ASSOCIATED WITH OIL AND GAS INDUSTRY

      Current Oil and Gas Markets. There is substantial uncertainty as to the
prices at which natural gas and oil produced by the Company may be sold, and it
is possible that under some market conditions the production and sale of oil and
gas from some or all of the Company's wells may not be economical. The
availability of a ready market for oil and gas and the prices obtained for oil
and gas depend upon numerous factors beyond the control of the Company,
including competition from other natural gas and oil suppliers and national and
international economic and political developments. The Company is not subject to
any gas price controls. Future changes in regulations may have an effect on the
Company's operations.

      Reliance on Estimates of Reserves and Future Net Revenues; Depletion of
Reserves; Price Volatility. There are numerous uncertainties inherent in
estimating quantities of reserves and in projecting rates of production and
timing of development expenditures, including many factors beyond the control of
the producer. For purposes of this Subscription Application, "reserves" shall
mean the estimated quantity of oil or gas that is below the surface of leases
owned by the Company and recoverable by known means. Any reference to reserves
in this Subscription Application represent only estimates. Any estimates of
future net revenues from reserves of the Company and the present value thereof
are based on certain assumptions about future production levels, prices, and
costs that may not prove to be correct over time, even if the reserves become

                                       14

<PAGE>

proved. The rate of production from oil and gas properties declines as reserves
are depleted. Except to the extent the Company acquires additional properties
containing reserves, conducts successful exploration and development activities
or, through engineering studies, identifies additional behind-pipe zones and
secondary recovery reserves, the reserves of the Company will decline as
reserves are produced. Future oil and gas production is therefore highly
dependent upon the Company's level of success in acquiring or finding additional
amounts of oil and gas. Oil and gas prices may be quite volatile, depending on
numerous factors, including steps taken by the Organization of Petroleum
Exporting Countries ("OPEC"), tensions in the Middle East and weather
conditions.

      Risks of Oil and Gas Activities. Significant risks are inherent in the oil
and gas business, including the drilling of dry and unsuccessful wells,
operating hazards and uninsured risks, intense competition for attractive
properties, governmental regulations, volatile prices and other uncontrollable
factors. Furthermore, oil and gas drilling is speculative. The possibility
always exists that wells drilled will be nonproductive. Even wells that are
completed may not produce enough natural gas or oil to pay out.

      Development Risks. Development drilling activities are subject to much
greater risks of failure than those associated with the ownership of producing
properties. The drilling of development wells, although generally consisting of
drilling in areas where there is believed to be the presence of oil and gas, may
result in dry holes or the failure to produce oil and gas in commercial
quantities. The drilling of development wells also involves the risk that
unusual or unexpected formations and pressures will be encountered, and other
conditions will exist, that could result in the Company incurring substantial
losses as well as liabilities to third parties or governmental entities.

      Operating Hazards and Uninsured Risks. The Company's operations will be
subject to all risks inherent in the development and production of oil and gas,
including such natural hazards as blowouts, cratering and fires, which could
result in damage or injury to, or destruction of, formations, producing
facilities or other property, or could result in personal injury, loss of life
or pollution of the environment. Any such event could result in substantial loss
to the Company which could have a material adverse effect upon the financial
condition of the Company. It is anticipated that the Company will be required to
pay its proportionate share of the premiums for insurance provided by the
operator and will be named as an insured under the policies. However, the
Company may not be fully insured against all risks, either because such
insurance is not available or because of premium costs. The Company has
purchased and plans to maintain additional insurance in the form of an umbrella
policy to protect it against uninsured risks or amounts in excess of the
insurance carried under its primary policies or by another operator. Although
such operational risks and hazards may be to some extent minimized, no
combination of experience, knowledge and scientific evaluation can eliminate the
risk of investment or assure a profit to any company engaged in oil and gas
operations.

      Competition and Markets. The oil and gas business is highly competitive
and has few barriers to entry. The Company will be competing with other oil and
gas companies and investment partnerships in search for, and obtaining of,
future desirable prospects, the securing of contracts with third parties for the
development of oil and gas properties, the contracting for the purchase or
rental of drilling rigs and other equipment necessary for drilling operations,

                                       15
<PAGE>

and the purchase of equipment necessary for the completion of wells, as well as
in the marketing of any oil and gas which may be discovered. Many of the
Company's competitors are larger than the Company and have substantially greater
access to capital and technical resources than does the Company and may
therefore have a significant competitive advantage. Many of the Company's
competitors are capable of making a greater investment in a given area than is
the Company, although large and small companies alike are subject to the
economics of cost effectiveness. The prices at which the Company will be able to
sell any oil or gas production will have a substantial effect on its earnings,
if any.

      Industry Conditions. In recent decades, there have been periods of
worldwide overproduction and underproduction of hydrocarbons as well as periods
of increased and relaxed energy conservation efforts. Such conditions have
resulted in periods of excess supply of, and reduced demand for, crude oil on a
worldwide basis and natural gas on a domestic basis. These periods have been
followed by periods of short supply of, and increased demand for, crude oil and,
to a lesser extent, natural gas. The excess or short supply of crude oil and
natural gas has placed pressures on prices and has resulted in dramatic price
fluctuations.

      Regulation; General. Oil and gas exploration, production and related
operations are subject to extensive rules and regulations promulgated by federal
and state agencies. Failure to comply with such rules and regulations can result
in substantial penalties. The regulatory burden on the oil and gas industry will
increase the Company's cost of doing business and will affect its profitability.
Because such rules and regulations are frequently amended or interpreted, the
Company is unable to predict the future cost or impact of complying with such
laws.

      In Texas, where the Company's oil and gas properties are located, such
regulation is by the Texas Railroad Commission. This agency has been granted
broad regulatory and enforcement powers which are likely to create additional
financial and operational burdens on gas and oil operations like those of the
Company. Texas also has in place other pollution and environmental control laws.

      The Company, to its knowledge, is currently in compliance with the
applicable regulations.

      Environmental Regulation. The Company is subject to numerous laws and
regulations governing the discharge of materials into the environment or
otherwise relating to environmental protection. These laws and regulations may
require the acquisition of a permit before drilling commences, restrict the
types, qualities and concentration of various substances that can be released
into the environment in connection with drilling and production activities,
limit or prohibit drilling activities on certain lands lying within wilderness,
wetlands and other protected areas, and impose substantial liabilities for
pollution resulting from the Company's operations. Moreover, the recent trend
toward stricter standards in environmental legislation and regulation is likely
to continue. For instance, legislation has been proposed in Congress from time
to time that would reclassify certain oil and gas production wastes as
"hazardous wastes," which reclassification would make such wastes subject to
much more stringent handling, disposal and clean-up requirements. If such
legislation were to be enacted, it could have a significant impact on the
operating costs of the Company, as well as the oil and gas industry in general.
It is not anticipated that the Company will be required in the near future to
expend amounts that are material in relation to its total capital expenditure
program by reason of environmental laws and regulations, but because such laws
and regulations are frequently changed, the Company is unable to predict the
ultimate cost of such compliance.

                                       16
<PAGE>

      The Company, to its knowledge, is currently in compliance with the
applicable environmental regulations.

      Environmental Risks and Liability. There are numerous natural hazards
involved in the drilling of wells, including unexpected or unusual formations,
pressures, blowouts involving possible damages to property and third parties,
surface damages, bodily injuries, damage to and loss of equipment, reservoir
damage and loss of oil or gas. Uninsured liabilities may result in the loss of
Company assets and may create theoretically unlimited liability for the Company.
Oil ad gas operations present risks of environmental contamination from drilling
operations and leakage from oil field storage or transportation facilities. The
Company may be subject to liability for pollution, abuses of the environment and
other, similar damages. Although the Company will maintain insurance coverage in
amounts the Company believes are adequate, it is possible that insurance
coverage may exclude risks such as environmental contamination, may be
insufficient or subject to reduction or cancellation in the future. In such
event, the Company's assets may have to be utilized to pay costs of controlling
blowouts, replacing destroyed equipment, personal injury, property damage and
environmental contamination claims.

      Furthermore, oil and gas activities can result in liability under federal,
state and local environmental regulations for activities involving, among other
things, water pollution and hazardous waste transportation, storage and
disposal. Such liability can attach not only to the operator of record of a well
but also to other parties that may be deemed to be current or prior operators or
owners of a well or the equipment involved.

                                       17Exhibit 10.8

THIS WARRANT AND THE COMMON  SHARES  ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS WARRANT
AND THE COMMON  SHARES  ISSUABLE  UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED  FOR SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE
REGISTRATION  STATEMENT  AS TO THIS  WARRANT  UNDER  SAID ACT OR AN  OPINION  OF
COUNSEL  REASONABLY  SATISFACTORY  TO  UNITED  HERITAGE  CORPORATION  THAT  SUCH
REGISTRATION IS NOT REQUIRED.

                Right to Purchase ______ Shares of Common Stock of United
                Heritage Corporation. (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. 2004-__                                         Issue Date:  March __, 2004

      UNITED HERITAGE CORPORATION, a corporation organized under the laws of the
State of Utah (the  "COMPANY"),  hereby  certifies  that,  for  value  received,
_________,  or assigns (the  "HOLDER"),  is  entitled,  subject to the terms set
forth below,  to purchase from the Company from and after the Issue Date of this
Warrant and at any time or from time to time  before  5:00 p.m.,  New York time,
through ten (10) years after such date (the "EXPIRATION  DATE"),  up to ________
fully  paid and  nonassessable  shares of Common  Stock,  no par  value,  of the
Company,  at the Exercise Price (as defined below).  The number and character of
such shares of Common Stock and the Exercise  Price are subject to adjustment as
provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

      (a) The term "Company" shall include United  Heritage  Corporation and any
corporation  which shall succeed or assume the  obligations  of United  Heritage
Corporation hereunder.

      (b) The term "Common Stock"  includes (x) the Company's  Common Stock,  no
par value per share, and (y) any other securities into which or for which any of
the securities described in (x) may be converted or exchanged pursuant to a plan
of recapitalization, reorganization, merger, sale of assets or otherwise.

      (c) The term  "Other  Securities"  refers to any stock  (other than Common
Stock) and other  securities  of the Company or any other person  (corporate  or
otherwise)  which the holder of the  Warrant at any time  shall be  entitled  to
receive,  or shall have received,  on the exercise of the Warrant, in lieu of or
in  addition  to Common  Stock,  or which at any time shall be issuable or shall
have been  issued in exchange  for or in  replacement  of Common  Stock or Other
Securities pursuant to Section 4 or otherwise.

      (d) The term "Exercise  Price" shall be as follows,  subject to adjustment
pursuant to Section 4:

      (i) ________ shares at $0.75;
      (ii) ________ shares at $1.00.

      1. EXERCISE OF WARRANT.

            1.1.  Number of Shares  Issuable upon  Exercise.  From and after the

                                       1
<PAGE>

date hereof  through and  including  the  Expiration  Date,  the Holder shall be
entitled to receive,  upon exercise of this Warrant in whole or in part,  shares
of Common Stock of the Company,  subject to adjustment pursuant to Section 4, by
delivery of an original or fax copy of the exercise  notice  attached  hereto as
Exhibit A (the  "EXERCISE  NOTICE")  along with  payment  to the  Company of the
Exercise Price.

      2. PROCEDURE FOR EXERCISE.

            2.1 Delivery of Stock  Certificates,  etc. on Exercise.  The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of  business  on the date on which  both the  Exercise  Notice  and
payment  have  been  made for such  shares.  As soon as  practicable  after  the
exercise of this Warrant in full or in part,  and in any event within 3 business
days thereafter,  the Company at its expense (including the payment by it of any
applicable  issue taxes) will cause to be issued in the name of and delivered to
the Holder,  or as such Holder  (upon  payment by such holder of any  applicable
transfer  taxes) may direct in compliance  with  applicable  securities  laws, a
certificate or  certificates  for the number of duly and validly  issued,  fully
paid and  nonassessable  shares of Common Stock (or Other  Securities)  to which
such Holder shall be entitled on such exercise.

            2.2. Exercise.

            Payment may be made either in cash or by certified or official  bank
check  payable to the order of the  Company  equal to the  applicable  aggregate
Exercise  Price for the number of Common Shares  specified in such form (as such
exercise  number shall be adjusted to reflect any adjustment in the total number
of shares of Common Stock  issuable to the holder per the terms of this Warrant)
and the  Holder  shall  thereupon  be  entitled  to  receive  the number of duly
authorized, validly issued, fully-paid and non-assessable shares of Common Stock
(or Other Securities) determined as provided herein.

      3. ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER, ETC.

            3.1. Reorganization, Consolidation, Merger, etc. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or merge into any other person or entity,  or (c) transfer all
or  substantially  all of its properties or assets to any other person or entity
under any plan or  arrangement  contemplating  the  dissolution  of the Company,
then,  in  each  such  case,  as a  condition  to  the  consummation  of  such a
transaction,  proper and adequate provision shall be made by the Company whereby
the Holder of this Warrant,  on the exercise  hereof as provided in Section 1 at
any time after the consummation of such reorganization,  consolidation or merger
or the effective date of such dissolution, as the case may be, shall receive, in
lieu of the Common Stock (or Other  Securities)  issuable on such exercise prior
to such  consummation or such effective date, the stock and other securities and
property  (including  cash) to which such Holder would have been  entitled  upon
such consummation or in connection with such dissolution, as the case may be, if
such Holder had so  exercised  this  Warrant,  immediately  prior  thereto,  all
subject to further adjustment thereafter as provided in Section 4.

            3.2.  Dissolution.  In the event of any  dissolution  of the Company
following the transfer of all or substantially  all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to
be delivered the stock and other securities and property  (including cash, where
applicable)  receivable by the Holder of the Warrant after the effective date of
such  dissolution  pursuant to Section 3.1 to a bank or trust company having its
principal office in New York, NY, as trustee for the Holder of the Warrant.

            3.3. Continuation of Terms. Upon any reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the

                                       2
<PAGE>

terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed the terms of this  Warrant as provided in Section 3.1. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions  described in this Section 3, then only in such
event  will  the  Company's  securities  and  property  (including  cash,  where
applicable) receivable by the holders of the Warrant be delivered to the Trustee
as contemplated by Section 3.2.

      4. ADJUSTMENTS FOR STOCK SPLITS, COMBINATIONS,  ETC. In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding  Common Stock,  (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Exercise  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Exercise Price then in effect.  The
Exercise Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be adjusted to a number  determined by  multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Exercise  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

      5.  CERTIFICATE  AS TO  ADJUSTMENTS.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrant,  the Company at its expense  will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

      6. RESERVATION OF STOCK ISSUABLE ON EXERCISE OF WARRANT.  The Company will
at all times reserve and keep available, solely for issuance and delivery on the
exercise of the Warrant,  shares of Common Stock (or Other Securities) from time
to time issuable on the exercise of the Warrant.

      7. ASSIGNMENT;  EXCHANGE OF WARRANT. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred by any registered holder hereof (a "TRANSFEROR") with respect to any
or all of the shares  underlying this Warrant.  On the surrender for exchange of
this  Warrant,  with  the  Transferor's  endorsement  in the form of  Exhibit  B
attached hereto (the "TRANSFEROR  ENDORSEMENT  FORM") and together with evidence
reasonably satisfactory to the Company demonstrating  compliance with applicable
securities laws, which shall include,  without limitation,  a legal opinion from

                                       3
<PAGE>

the  Transferor's  counsel  that such  transfer is exempt from the  registration
requirements of applicable  securities laws, the Company at its expense but with
payment  by the  Transferor  of any  applicable  transfer  taxes  will issue and
deliver  to or on the  order of the  Transferor  thereof a new  Warrant  of like
tenor, in the name of the Transferor and/or the transferee(s)  specified in such
Transferor  Endorsement Form (each a "TRANSFEREE"),  calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant so surrendered by the Transferor.

      8. REPLACEMENT OF WARRANT. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      9.  REGISTRATION  RIGHTS.  The  Holder of this  Warrant  has been  granted
certain  registration  rights by the Company.  These registration rights are set
forth in a Note Purchase Agreement entered into by the Company and Holder of the
Company's  Common  Stock at or  prior to the  issue  date of this  Warrant  (the
"Purchase Agreement").

      10.  MAXIMUM  EXERCISE.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection  with that number of shares of Common
Stock  which would be in excess of the sum of (i) the number of shares of Common
Stock  beneficially  owned by the Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date,  which would result in beneficial  ownership by the Holder and
its affiliates of more than 4.99% of the  outstanding  shares of Common Stock of
the Company on such date.  For the  purposes  of the proviso to the  immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder.  Subject to the foregoing,  the Holder shall not be limited to
aggregate exercises which would result in the issuance of more than 4.99%.

      11.  WARRANT  AGENT.  The Company may, by written notice to each holder of
the Warrant,  appoint an agent for the purpose of issuing Common Stock (or Other
Securities)  on the exercise of this Warrant  pursuant to Section 1,  exchanging
this  Warrant  pursuant to Section 7, and  replacing  this  Warrant  pursuant to
Section 8, or any of the foregoing,  and thereafter any such issuance,  exchange
or replacement, as the case may be, shall be made at such office by such agent.

      12. TRANSFER ON THE COMPANY'S BOOKS.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      13.  NOTICES,  ETC. The terms and  provisions of Section 9 of the Purchase
Agreement are expressly incorporated into this Warrant.

      14.  VOLUNTARY  ADJUSTMENT  BY THE  COMPANY.  The  Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

      15.  MISCELLANEOUS.  This  Warrant  and any term  hereof  may be  changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  This Warrant shall be governed by and  construed in accordance  with

                                       4
<PAGE>

the laws of State of Texas  without  regard to  principles of conflicts of laws.
Any action brought  concerning  the  transactions  contemplated  by this Warrant
shall be  brought  only in the state  courts of Texas or in the  federal  courts
located in the state of Texas. The individuals  executing this Warrant on behalf
of the  Company  agree to submit to the  jurisdiction  of such  courts and waive
trial by jury. The prevailing  party shall be entitled to recover from the other
party its reasonable  attorney's fees and costs. In the event that any provision
of this Warrant is invalid or unenforceable under any applicable statute or rule
of law, then such  provision  shall be deemed  inoperative to the extent that it
may conflict therewith and shall be deemed modified to conform with such statute
or rule of law.  Any such  provision  which may prove  invalid or  unenforceable
under any law shall not  affect  the  validity  or  enforceability  of any other
provision  of this  Warrant.  The  headings in this  Warrant are for purposes of
reference only, and shall not limit or otherwise affect any of the terms hereof.
The  invalidity  or  unenforceability  of any  provision  hereof shall in no way
affect  the  validity  or  enforceability  of any other  provision.  Each  party
acknowledges  either that its legal counsel  participated  in the preparation of
this  Warrant  or that it had  sufficient  opportunity  to  have  legal  counsel
participate in the preparation of this Warrant and,  therefore,  stipulates that
the  rule of  construction  that  ambiguities  are to be  resolved  against  the
drafting  party shall not be applied in the  interpretation  of this  Warrant to
favor any party against the other party.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       5
<PAGE>

         IN WITNESS WHEREOF, the Company has executed this Warrant under seal as
of the date first written above.

                                 UNITED HERITAGE CORPORATION

                                 By:_____________________________________

                                 HOLDER

                                 By:_____________________________________

                                       6
<PAGE>

                                                                       EXHIBIT A

                                 EXERCISE NOTICE
                   (To be signed only on exercise of Warrant)

TO: United Heritage Corporation

The  undersigned,  pursuant to the provisions set forth in the attached  Warrant
(No.____), hereby irrevocably elects to purchase:

         ________ shares of the Common Stock covered by such Warrant.

The  undersigned  herewith  makes  payment of the full  Exercise  Price for such
shares  at the  price  per  share  provided  for in such  Warrant,  which  is an
aggregate of $___________.

The undersigned  requests that the certificates for such shares be issued in the
name   of,   and   delivered   to   ____________________    whose   address   is
______________________________________ ____________________________________ .

The  undersigned  represents  and  warrants  that all  offers  and  sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:___________________               _______________________________________
                                       (Signature must conform to name of holder
                                        as specified on the face of the Warrant)

                                        ---------------------------------------
                                        (Address)

                                       7
<PAGE>

                                                                       EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To be signed only on transfer of Warrant)

                  For value received, the undersigned hereby sells, assigns, and
transfers  unto the person(s)  named below under the heading  "Transferees"  the
right represented by the within Warrant to purchase the percentage and number of
shares  of Common  Stock of  United  Heritage  Corporation  to which the  within
Warrant relates specified under the headings "Percentage of Warrant Transferred"
and "Number Transferred,"  respectively,  opposite the name(s) of such person(s)
and appoints each such person  Attorney to transfer its respective  right on the
books of United  Heritage  Corporation  with full power of  substitution  in the
premises.

<TABLE>
<CAPTION>
======================================== ===================================== =====================================

                                                Percentage of Warrant                         Number
              Transferees                            Transferred                           Transferred
---------------------------------------- ------------------------------------- -------------------------------------
<S>                                      <C>                                   <C>

---------------------------------------- ------------------------------------- -------------------------------------

======================================== ===================================== =====================================

Dated:_________________ , __ ___                     ____________________________________________
                                                     (Signature must conform to name of holder as
                                                     specified on the face of the warrant)

Signed in the presence of:

-------------------------------                      --------------------------------------------
         (Name) (address)

                                                     --------------------------------------------
ACCEPTED AND AGREED:                                 (address)

[TRANSFEREE]

---------------------------------
         (Name)
</TABLE>

                                       8
<PAGE>

                                                                       EXHIBIT C

                                                      NOTE PURCHASE AGREEMENT

                                       9

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