Document:

STOCK
      PURCHASE AGREEMENT

     

    THIS
      STOCK PURCHASE AGREEMENT is
      entered into as of April __, 2007 by and between HEARTLAND
      OIL AND GAS, CORP.,
      a
      Nevada
      corporation (the
      “Company”), and UNIVERSAL
      PROPERTY DEVELOPMENT & ACQUISITION CORPORATION, a
      Nevada
      corporation (the
      “Purchaser”).

     

    RECITALS

     

    WHEREAS,
      the
      Purchaser is entering into a Note Purchase Agreement dated as of the date hereof
      (the “Note Agreement”) with SDS Capital Group, Ltd. and Baystar Capital II, L.P.
      (collectively, the “Sellers”) to purchase the outstanding promissory notes of
      the Company listed on Exhibit A to the Note Agreement (collectively, the
“Notes”).

     

    WHEREAS,
      the
      Company has provided the Sellers a Consent to Assignment of the Notes in
      consideration of receipt of the Purchase Price (as defined below). 

     

    WHEREAS,
      as a
      condition of the Purchaser entering into the Note Agreement, the Purchaser
      is
      requiring that the Company enter into this Agreement for purpose of the Company
      selling to the Purchaser 50,631,764 shares of the Company’s common stock , $.001
      par value per share (the “Shares”), for an aggregate purchase price of
      $1,000,000 (the “Purchase Price”).

     

    WHEREAS,
      the
      Company desires that the Purchasers agree to amend the Notes to extend the
      Maturity Date thereunder to December 31, 2007.

     

    WHEREAS,
      the
      Company desires to sell the Shares to the Purchaser and the Purchaser desires
      to
      purchase the Shares for the Purchase Price.

     

    AGREEMENT

     

    The
      Company and the Purchaser, intending to be legally bound, agree as
      follows:

     

    SECTION 1.  SALE
      AND PURCHASE OF THE SHARES.

     

    1.1  Sale
      and Purchase of the Shares.
      The
      Company shall issue, sell and deliver the Shares to the Purchaser and the
      Purchaser shall acquire the Shares from the Company, on the terms and subject
      to
      the conditions set forth in this Agreement.

     

    1.2  Purchase
      Price.
      The
      Purchaser shall
      pay
      the Purchase Price to the Company for the Shares on the date hereof. The Company
      acknowledges that it has previously been paid $135,000 by the
      Purchaser, which will be applied to the Purchase Price.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION 2.  REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER.

     

    The
      Purchaser represents and warrants as follows:

     

    2.1  Authority,
      Approval and Enforceability.

     

    (a)  The
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Nevada and has full corporate power and authority
      to carry on its business as it is now being conducted and to own the properties
      and assets it now owns.

     

    (b)  The
      Purchaser has full power and authority to execute, deliver and perform its
      obligations under this Agreement and all agreements, instruments and documents
      contemplated hereby, and all actions of the Purchaser necessary for such
      execution, delivery and performance have been duly taken.

     

    (c)  This
      Agreement, when executed and delivered, is a legal, valid and binding obligation
      of the Purchaser, and, upon due execution and delivery by the parties thereto,
      all agreements, instruments and documents to be executed by the Purchaser in
      connection with the transactions contemplated hereby will be legal, valid and
      binding obligations of the Purchaser, each enforceable against the Purchaser
      in
      accordance with its respective terms, except as enforcement may be limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting creditors’ rights generally, and subject to general equity principles
      and to limitations on availability of equitable relief, including specific
      performance.

     

    2.2  Compliance
      with Other Instruments.
      The
      execution, delivery, and performance of and compliance with this Agreement
      and
      payment of the Purchase Price pursuant hereto, will not violate any contract
      or
      agreement to which the Purchaser is a party or by which the Purchaser is
      bound.

     

    2.3  Litigation.
      There
      is no action, suit, proceeding or investigation pending, or currently
      threatened, against the Purchaser that questions the validity of this Agreement
      or the right of the Purchaser to enter into any such agreement, or to consummate
      the transactions contemplated hereby.

     

    2.4  No
      Consent Required.
      No
      consent, authorization, approval, order, license, certificate or permit or
      act
      of or from, or declaration or filing with, any foreign, federal, state, local
      or
      other governmental authority or regulatory body or any court or other tribunal
      or any party to any contract, agreement, instrument, lease or license to which
      the Purchaser is a party, is required for the execution, delivery or performance
      by the Purchaser of this Agreement or any of the other agreements, instruments
      and documents being or to be executed and delivered hereunder or in connection
      herewith or for the consummation of the transactions contemplated
      hereby.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.5  Purchase
      Entirely for Own Account.
      This
      Agreement is made with Purchaser in reliance upon Purchaser’s representation to
      the Company that the Shares to be received by the Purchaser will be acquired
      for
      investment for such Purchaser’s own account, not as a nominee or agent, and not
      with a view to the resale or distribution of any part thereof, and that such
      Purchaser has no present intention of selling, granting any participation in,
      or
      otherwise distributing the same. By executing this Agreement, the Purchaser
      further represents that Purchaser does not have any contract, undertaking,
      agreement or arrangement with any person to sell, transfer or grant
      participations to such Person or to any third person, with respect to any of
      the
      Shares.

     

    2.6  Disclosure
      of Information.
      The
      Purchaser believes it has received all the information it considers necessary
      or
      appropriate for deciding whether to purchase the Shares. Purchaser further
      represents that it has had an opportunity to ask questions and receive answers
      from the Company regarding the terms and conditions of the offering of the
      Shares and the business, properties, prospects and financial condition of the
      Company. 

     

    2.7  Private
      Placement.
      Purchaser understands that the Shares have not been registered under the
      Securities Act of 1933, as amended (the “Securities Act”), or registered or
      qualified under any state securities laws on the grounds that such Shares are
      being issued in a transaction exempt from the registration requirements of
      the
      Securities Act and the registration or qualification requirement of applicable
      state securities laws, and that the Shares must be held indefinitely unless
      the
      Shares are subsequently registered under the Securities Act and qualified or
      registered under applicable state securities laws or an exemption from
      registration and qualification is available, and that the Company is under
      no
      obligation to register or qualify the Shares. 

     

    2.8  Accredited
      Purchaser.
      Purchaser is an “accredited Purchaser” within the meaning of Rule 501 of
      Regulation D promulgated under the Securities Act and has such knowledge and
      experience in financial and business matters that it is capable of evaluating
      the merits and risks of the investment to be made hereunder by it and it is
      able
      to bear the economic risk of its investment. 

     

    2.9  Reliance.
      Purchaser understands and acknowledges that (i) the Shares to be acquired
      by it hereunder are being offered and sold to it without registration under
      the
      Securities Act in a private placement that is exempt from the registration
      provisions of the Securities Act and (ii) the availability of such
      exemption depends in part on, and the Company will rely upon the accuracy and
      truthfulness of, the foregoing representations, and the Purchaser hereby
      consents to such reliance.

     

    SECTION 3.  REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    The
      Company represents and warrants, to and for the benefit of the Purchaser, as
      follows:

     

    3.1  Authority,
      Approval and Enforceability.

     

    (a)  The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Nevada and has full corporate power and authority
      to carry on its business as it is now being conducted and to own the properties
      and assets it now owns

     

    (b)  The
      Company has full power and authority to execute, deliver and perform its
      obligations under this Agreement and all agreements, instruments and documents
      contemplated hereby, and all actions of the Company necessary for such
      execution, delivery and performance have been duly taken.

     

    
      
        
        

      

      
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    (c)  This
      Agreement, when executed and delivered, is a legal, valid and binding obligation
      of the Company, and, upon due execution and delivery by the parties thereto,
      all
      agreements, instruments and documents to be executed by the Company in
      connection with the transactions contemplated hereby will be legal, valid and
      binding obligations of the Company, each enforceable against the Company in
      accordance with its respective terms, except as enforcement may be limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting creditors’ rights generally, and subject to general equity principles
      and to limitations on availability of equitable relief, including specific
      performance.

     

    3.2  Capitalization.
      The
      authorized capital stock of the Company consists of 100,000,000 shares of common
      stock, 47,737,013 of which are issued and outstanding as of April 10, 2007,
      and
      5,000,000 shares of preferred stock, none of which are issued and outstanding.
      Schedule 3.2 hereto contains a complete itemized list of all the outstanding
      notes, debentures and other debt securities of the Company as of April 10,
      2007,
      including the Notes, and all trade debts of the Company in excess of $10,000.
      Other than as disclosed on Schedule 3.2(a), there are currently no options
      or
      warrants outstanding which are convertible into shares of the capital stock
      of
      the Company.

     

    3.3  Offering.
      Subject
      in part to the truth and accuracy of the Purchaser’s representations set forth
      in Section 2 of this Agreement, the offer, sale and issuance of the Shares
      as
      contemplated by this Agreement are exempt from the registration requirements
      of
      the Securities Act of 1933, as amended, and state securities and “blue sky”
laws, and neither the Company nor any authorized agent acting on its behalf
      will
      take any action hereafter that would cause the loss of such
      exemption.

     

    3.4  Valid
      Issuance of Shares.
      The
      Shares when issued, sold and delivered in accordance with the terms of this
      Agreement for the consideration expressed herein, will be duly and validly
      issued, outstanding, fully paid, and nonassessable, and will be free of
      restrictions on transfer other than restrictions on transfer under this
      Agreement and under applicable state and Federal securities laws.

     

    3.5  No
      Conflict.
      The
      execution and delivery by the company of this Agreement and any other
      agreements, instruments and documents to be executed and delivered by the
      Company pursuant hereto do not, and the performance and consummation by the
      Company of the transactions contemplated hereby and thereby will not, conflict
      with or result in any breach or violation of or default, termination, forfeiture
      or lien under (or upon the failure to give notice or the lapse of time, or
      both,
      result in any conflict with, breach or violation of or default, termination,
      forfeiture or lien under) any terms or provisions of any statute, rule,
      regulation, judicial or governmental decree, order or judgment, agreement,
      lease
      or other instrument to which the Company is a party or to which the Company
      or
      its assets are subject that has or is likely to have a material adverse effect
      on the Company.

     

    3.6  Litigation.
      There
      is no action, suit, proceeding or investigation pending, or currently
      threatened, against the Company, other than as disclosed on Schedule 3.6,
      including any such action, suit, proceeding or investigation that questions
      the
      validity of this Agreement or the right of the Company to enter into any such
      agreement, or to consummate the transactions contemplated hereby.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.7  No
      Consent Required.
      No
      consent, authorization, approval, order, license, certificate or permit or
      act
      of or from, or declaration or filing with, any foreign, federal, state, local
      or
      other governmental authority or regulatory body or any court or other tribunal
      or any party to any contract, agreement, instrument, lease or license to which
      the Company is a party or to which the Company is subject that has or is likely
      to have a material adverse effect on the Company, is required for the execution,
      delivery or performance by the Company of this Agreement or any of the other
      agreements, instruments and documents being or to be executed and delivered
      hereunder or in connection herewith or for the consummation of the transactions
      Contemplated hereby.

     

    SECTION 4.  FURTHER
      AGREEMENTS.

     

    4.1  Maturity
      Date of the Notes.
      It is
      agreed that the Purchaser, as the holder of the Notes, shall amend the Notes
      to
      extend the Maturity Date to December 31, 2007 and shall use its best efforts
      after the date hereof to cause the Company to extend the Maturity Date of the
      Notes.

     

    4.2  Director
      and Officer Insurance.
      The
      Purchaser acknowledges that the Company intends to use a portion of the Purchase
      Price to purchase a “roll-off” insurance policy with a term of six years for the
      benefit of the Company’s current officers and directors. The Purchaser agrees to
      not take any action, or have the Company take any action, to cancel such policy.
      The Purchaser further acknowledges that the current directors and officers
      of
      the Company are intended third party beneficiaries of this Section
      4.2.

     

    4.3  Stock
      Option Grants.
      The
      Purchaser acknowledges the Board of Directors has granted fully-vested options
      to purchase an aggregate of 1,300,000 shares of the Company’s common stock to
      officers and directors of the Company. The options were granted at an exercise
      price per share in excess of the fair market value of the Company common stock
      on the date of grant and the term of such options is three years.

     

    4.4  Board
      Matters.
      The
      Company represents that it has obtained and is in possession of the resignations
      of Todd Mackintosh, John Martin and Robert Poley as members of the Board of
      Directors of the Company, contingent on issuance of the Shares, receipt by
      the
      Company of the Purchase Price and purchase of the Director and officer insurance
      policy. Following the actions in Sections 4.2 and without taking any further
      actions, the Company shall accept those resignations and the remaining Board
      Member, Phil Winner, shall immediately thereafter appoint Kamal Abdallah and
      Christopher McCauley to the vacancies on the Board of Directors.

     

    4.5  Use
      of Proceeds.
      The
      Company intends to use the Purchase Price for general working capital expenses,
      costs and expenses of the negotiation and completion of this Agreement and
      related transactions and as set forth in this Section 4.

     

    
      
        
        

      

      
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    SECTION 5.  MISCELLANEOUS
      PROVISIONS

     

    5.1  Governing
      Law.
      This
      Agreement shall be governed in all respects by the laws of the State of Nevada
      as such laws are applied to agreements between corporations organized and
      existing under Nevada law. 

     

    5.2  Delays
      or Omissions.
      It is
      agreed that no delay or omission to exercise any right, power or remedy accruing
      to any party, upon any breach, default or noncompliance by another party under
      this Agreement, shall impair any such right, power or remedy, nor shall it
      be
      construed to be a waiver of any such breach, default or noncompliance, or any
      acquiescence therein, or of or in any similar breach, default or noncompliance
      thereafter occurring. It is further agreed that any waiver, permit, consent
      or
      approval of any kind or character of any breach, default or noncompliance under
      this Agreement or any waiver of any provisions or conditions of the agreement
      must be in writing and shall be effective only to the extent specifically set
      forth in such writing. All remedies, either under this Agreement or otherwise
      afforded to any party, shall be cumulative and not alternative.

     

    5.3  Notices.
      All
      notices, requests, demands and other communications required or permitted under
      this Agreement and the transactions contemplated herein shall be in writing
      and
      shall be deemed to have been duly given, made and received on the date when
      delivered by hand delivery with receipt acknowledged, or upon the next business
      day following receipt of telex or telecopy transmission, or upon the third
      day
      after deposit in the United States mail, registered or certified with postage
      prepaid, return receipt requested, addressed as set forth below or at such
      other
      address as a party may designate by ten (10) days advance written notice to
      the
      other party hereto:

     

    (a)  If
      to the
      Company:

     

    Heartland
      Oil & Gas, Corp.

    1625
      Broadway, Suite 1480

    Denver,
      CO 80202

    Telephone: (303)
      405-8450

    Fax: (303)
      

    

    (b)  If
      to the
      Purchaser:

     

    Universal
      Property Development &

    Acquisition
      Corporation

    14255
      US
      Highway 1, Suite 209    

    Juno
      Beach, Florida 33408     

    Telephone: (561)
      630-2977   

    Fax: (561)
      277-2430   

    

    5.4  Assignment:
      Binding upon Successors and Assigns.
      Neither
      party hereto may assign any of its rights or obligations hereunder without
      the
      prior written consent of the other party hereto. This Agreement will be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and permitted assigns.

     

    
      
        
        

      

      
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    5.5  Amendment
      and Waivers.
      Any
      term or provision of this Agreement may be amended, and the observance of any
      term of this Agreement may be waived (either generally or in a particular
      instance and either retroactively or prospectively) only by a writing signed
      by
      the party to be bound thereby. The waiver by a party of any breach hereof or
      default in the performance hereof will not be deemed to constitute a waiver
      of
      any other default or any succeeding breach or default.

     

    5.6  Expenses.
      Each
      party will bear its respective expenses and legal fees incurred with respect
      to
      this Agreement, and the transactions contemplated hereby.

     

    5.7  Further
      Assurances.
      Each
      party agrees to cooperate fully with the other parties and to execute such
      further instruments, documents and agreements and to give such further written
      assurances as may be reasonably requested by any other party to evidence and
      reflect the transactions described herein and contemplated hereby and to carry
      into effect the intents and purposes of this Agreement.

     

    5.8  Entire
      Agreement.
      This
      Agreement and the exhibits hereto constitute the entire understanding and
      agreement of the parties hereto with respect to the subject matter hereof and
      supersede all prior and contemporaneous agreements or understandings,
      inducements or conditions, express or implied, written or oral, between the
      parties with respect hereto, which shall remain in full force and effect. The
      express terms hereof control and supersede any course of performance or usage
      of
      the trade inconsistent with any of the terms hereof.

     

    5.9  Survival.
      The
      representations, warranties, covenants and agreements made herein shall survive
      any investigation made by the Company and the closing of the transactions
      contemplated hereby. All statements as to factual matters contained in any
      certificate or other instrument delivered by or on behalf of the Purchaser
      pursuant hereto in connection with the transactions contemplated hereby shall
      be
      deemed to be representations and warranties by the Purchaser hereunder solely
      as
      of the date of such certificate or instrument.

     

    5.10  Attorneys’
      Fees.
      In the
      event that any dispute among the parties to this Agreement should result in
      litigation, the prevailing party in such dispute shall be entitled to recover
      from the losing party all fees, costs and expenses of enforcing any right of
      such prevailing party under or with respect to this Agreement, including without
      limitation, such reasonable fees and expenses of attorneys and accountants,
      which shall include, without limitation, all fees, costs and expenses of
      appeals.

     

    5.11  Titles
      and Subtitles.
      The
      titles of the sections and subsections of the Agreement are for convenience
      of
      reference only and are not to be considered in construing this
      Agreement.

     

    5.12  Severability.
      If any
      provision of this Agreement, or the application thereof, will for any reason
      and
      to any extent be invalid or unenforceable, the remainder of this Agreement
      and
      application of such provision to other persons or circumstances will be
      interpreted so as reasonably to effect the intent of the parties hereto. The
      parties further agree to replace such void or enforceable provision of this
      Agreement with a valid and enforceable provision that will achieve, to the
      greatest extent possible, the economic, business and other purposes of the
      void
      or enforceable provision.

     

    
      
        
        

      

      
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    5.13  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which together shall constitute one
      instrument.

     

    
      
        
        

      

      
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    The
      parties hereto have caused this Agreement to be executed and delivered as of
      the
      date hereof.

    
      	 	 	 
	 	
              PURCHASER:

              

              UNIVERSAL
                PROPERTY DEVELOPMENT & ACQUISITION CORPORATION

            
	 
 	 
 	 
 
	 	By:  	
            
	 	
              

              Kamal
                Abdallah

              CEO
                & Chairman of the Board

            
	 	
            

    

    
      	 	 	 
	 	
              COMPANY:

               

              HEARTLAND OIL AND GAS, CORP.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Philip
                S. Winner

              President
                & Chief Executive Officer

            
	 	
            

    
      
        
        

      

      
        9EXECUTION
      COPY

    

    NOTE
      PURCHASE AGREEMENT

    

    NOTE
      PURCHASE AGREEMENT, dated as of April 19, 2007 (this “Agreement”), by and among
      SDS Capital Group SPC, Ltd. (“SDS”, or a “Seller”), BayStar Capital II, L.P.
      (“BayStar”, or a “Seller,” together with SDS, the “Sellers”), and Universal
      Property Development & Acquisition Corporation (the
“Purchaser”).

    

    WHEREAS,
      the Sellers are the holders of the outstanding promissory notes of Heartland
      Oil
      and Gas, Inc. (the “Company”) set forth on Schedule
      2.1
      hereto
      (the “Notes”); and

    

    WHEREAS,
      the each Seller desires to sell and transfer to the Purchaser, and the Purchaser
      desires to purchase from each Seller, the outstanding promissory notes of the
      Company set forth on Schedule
      1.4
      (the
“Purchased Notes”), upon the terms and conditions set forth herein.

    

    NOW
      THEREFORE, the parties hereto agree as follows:

    

    ARTICLE
      1

     

    PURCHASE
      AND SALE OF PURCHASED NOTES

     

    Section
      1.1 Purchase
      and Sale of Purchased Notes; Assignment of Rights.
      Upon
      the following terms and conditions, and in consideration of and in express
      reliance upon such terms and conditions and the representations, warranties
      and
      covenants of this Agreement, each Seller shall, for the purchase price set
      forth
      below (the “Purchase Price”), (a) sell to the Purchaser, and the Purchaser shall
      purchase from each Seller, the Purchased Notes, (b) assign to Purchaser all
      of
      each Seller’s rights, claims, and causes of actions arising out of or relating
      to such Seller’s purchase of the Purchased Notes (including, without limitation,
      those relating to such Seller’s purchase and ownership of the Purchased Notes
      and each Seller’s right to receive any accrued but unpaid interest on the
      Purchased Notes), (c) with respect to SDS, assign to Purchaser all of SDS’
rights under the Security Agreement dated September 29, 2006 by and between
      SDS Capital Group SPC, Ltd., Heartland Oil and Gas Corp. and the Company’s
      subsidiaries (the “SDS Security Agreement”), and (d) with respect to BayStar,
      assign to Purchaser all of BayStar’s rights under that certain Security
      Agreement dated September 29, 2006 by and between BayStar Capital II, L.P.,
      BayStar Capital II, L.P., Heartland Oil and Gas Corp. and the Company’s
      subsidiaries (the “BayStar Security Agreement”). 

     

    Section
      1.2 Purchase
      Price.
      The
      aggregate consideration to be paid by the Purchaser to the Sellers (or their
      designees) in exchange for the sale, transfer and delivery of the Purchased
      Notes to the Purchaser and other obligations and covenants of Seller made herein
      shall be (i) $1,500,000 payable in cash (the “Cash Payment”) plus
      (ii) a
      number of shares of the Purchaser’s common stock calculated by dividing
      $1,250,000 by the volume weighted average price of a share of the Purchaser’s
      common stock as reported on the OTC Bulletin Board for the ten trading day
      period ending on the trading day immediately prior to the Closing Date minus
      $0.01 (the “Initial VWAP”) as set forth in Schedule
      1.4
      (the
“Purchaser Stock”) plus
      (iii)
      five percent (5%) of the outstanding common stock or membership interests,
      as
      applicable (in each case calculated on a post-issuance basis), of the Company
      and certain subsidiaries of the Company (each, a “Subsidiary”) as set forth on
Schedule
      1.2
      (the
“Company Stock”) . The Purchase Price shall be allocated between the respective
      Purchased Notes held by SDS and BayStar as set forth on Schedule
      1.2
      and
Schedule
      1.4.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Section
      1.3 Make
      Whole Provision.
      

     

    (a) Make
      Whole Calculation.
      If on
      any day between the 12-month anniversary and the 28-month anniversary of the
      Closing (as defined below) (the “Make Whole Date”), (i) the volume weighted
      average price of a share of the Purchaser’s common stock as reported on the OTC
      Bulletin Board (or any other exchange or automated quotation system on which
      the
      Purchaser’s common stock may then be trading) for the 20 trading day period
      ending on the trading day immediately prior to the Make Whole Date minus $0.01
      (the “Make Whole VWAP”) is less than the Adjusted Initial VWAP (as defined in
      1.3(b) below) and (ii) a Seller continues to hold all or any portion of the
      Purchaser Stock, such Seller has the option (the “Make Whole Option”) to cause
      the Purchaser to issue to such Seller an additional number of shares of
      Purchaser’s common stock (the “Additional Stock”) calculated pursuant to the
      following formula:

     

    Amount
      of
      Purchaser * (1-(Make Whole VWAP / Initial VWAP)) = Shares of Additional Stock
      

    Stock
      held by Seller        

    exercising
      Make 

    Whole
      Option

    

    ;
      provided, however, that in lieu of issuing the Additional Shares to the Seller
      exercising the Make Whole Option, Purchaser may, at its option, pay to such
      Seller an equivalent amount in cash, which amount shall be calculated by
      multiplying the number of Additional Stock otherwise issuable by the Make Whole
      VWAP. Each Seller may exercise its Make Whole Option one time only.

    

    (b) Initial
      VWAP Adjustment.
      For
      purposes of Section 1.3(a), the Initial VWAP shall be adjusted (the “Adjusted
      Initial VWAP”) as follows: (i) the Initial VWAP per share shall be reduced by
      the amount of any cash dividend paid to the holders between the Closing and
      the
      Make Whole Date; (ii) the Initial VWAP per share shall be adjusted as
      appropriate to reflect any stock split, stock combination or dividend of
      Purchaser’s common stock occurring between the Closing and the Make Whole Date;
      and (iii) in the event a dividend or distribution of securities of any entity
      other than the Purchaser is declared on the Purchaser’s common stock, the
      Initial VWAP per share shall be reduced by an amount equal to the volume
      weighted average price of a share of such security as reported on the primary
      national securities exchange or automatic quotation system on which such
      securities are listed or quoted for the 30 trading day period ending on the
      trading day immediately prior to the date of such dividend on distribution;
      provided, however, that no adjustment to the Initial VWAP shall be made pursuant
      to this Section 1.3(b)(iii) unless (x) a registration statement under the
      Securities Act of 1933, as amended (the “Act”)shall be effective and available
      for the resale by Sellers of all of the securities issued in the dividend or
      distribution declared on Purchaser’s common stock, (y) such securities will not
      be “restricted securities” in the hands of the Sellers as defined in Rule
      144(a)(3) under the Act, and (z) such securities are, and have been for each
      day
      of the period beginning 60 trading days prior to the date of such dividend,
      listed or quoted on the Nasdaq Capital Market, the Nasdaq Global Market, the
      Nasdaq Global Select Market, the New York Stock Exchange, the American Stock
      Exchange or any other national securities exchange or automated
      quotation.

     

    
      
         

      

      
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    Section
      1.4 Purchased
      Note Exchange and Transfer.
      At the
      Closing, each Seller shall instruct the Company to accept certain of the Notes
      listed on Schedule
      2.1,
      reissue
      new promissory notes in the aggregate amount listed on Schedule
      1.4
      and
      transfer the Purchased Notes to the Purchaser in exchange for the amount of
      consideration set forth on Schedule
      1.2
      and
Schedule
      1.4.
      A form
      of the letter directing the Company to exchange and transfer the Purchased
      Notes
      (the “Letter of Direction”) is attached as Exhibit
      A.

     

    Section
      1.5 Closing.

     

    (a) The
      closing (the “Closing”) of the purchase and sale of the Purchased Notes to be
      acquired by the Purchaser from the Sellers under this Agreement and the
      assignment of rights described in Section 1.1 shall take place at the offices
      of
      Drinker Biddle & Reath LLP at 10:00 a.m., New York time on the date hereof
      or at such other time and place or on such date as the Purchaser and the Sellers
      may agree upon (such date on which the Closing occurs, the “Closing Date”).

     

    (b) At
      the
      Closing, the Purchaser shall deliver (or cause to be delivered) to each
      Seller:

     

    (i) the
      Cash
      Payment by wire transfer of immediately available funds to such account or
      accounts designated by each Seller; and

     

    (ii) share
      certificates representing the Purchaser Stock to be issued to such
      Seller.

     

    (c) Within
      ten (10) business days following the Closing, the Purchaser shall cause the
      Company and each Subsidiary to issue and deliver certificates representing
      the
      Company Stock in the amounts set forth on Schedule
      1.2.

     

    (d) At
      the
      Closing, each Seller shall deliver (or cause to be delivered) to the Purchaser:
      

     

    (i) all
      of
      the original documentation evidencing each Purchased Note being sold by such
      Seller;

     

    (ii) an
      assignment of all of each Seller’s rights, interests and title in the Purchased
      Notes and under the Security Agreement in the form attached hereto as Exhibit
      B;

     

    (iii) any
      and
      all consents of the Company, or other third parties, necessary for the valid
      assignment of the Purchased Notes by each Seller to Purchaser; and

     

    (iv) any
      and
      all consents of the Company, or other third parties, necessary for the valid
      assignment of the Security Agreement by each Seller to Purchaser.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    (e) At
      the
      Closing, each Seller shall deliver (or cause to be delivered) to the Company
      the
      Letter of Direction.

    

    ARTICLE
      2

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.1 Representations
      and Warranties of the Sellers.
      Each of
      the Sellers hereby represents and warrants to the Purchaser, severally as to
      such Seller and not as to any other Seller, as follows:

     

    (a) Valid
      Title.
      Schedule
      2.1
      sets
      forth the outstanding principal balance of each Note held by such Seller as
      of
      the date of this Agreement. Such Seller has the right to transfer good, valid
      and marketable title in and to the Notes held
      by
      such Seller,
      free
      and clear of any mortgages, pledges, charges, liens, security interests or
      other
      encumbrances. Upon transfer from such Seller in accordance with this Agreement,
      Purchaser shall have good, valid and marketable title in and to the Purchased
      Notes held by such Seller, free and clear of any mortgages, pledges, charges,
      liens, security interests or other encumbrances. 

     

    (b) Other
      Claims.
      Each
      Seller warrants and represents that, other than the Notes held by such Seller,
      the security interests evidenced by the SDS Security Agreement with respect
      to
      SDS and the security interests evidenced by the BayStar Security Agreement
      with
      respect to BayStar, there are no other promissory notes, security interests
      or
      other evidence of debt that such Seller owns or holds directly or beneficially
      relative to the Company or any of its affiliates, subsidiaries, officers or
      directors.

     

    (c) Enforceability;
      Authorization.
      This
      Agreement has been duly executed and delivered by such Seller and this Agreement
      constitutes a legal, valid and binding obligation of such Seller enforceable
      against it in accordance with the terms hereof, subject to: (i) judicial
      principles limiting the availability of specific performance, injunctive relief,
      and other equitable remedies; and (ii) bankruptcy, insolvency, reorganization,
      moratorium or other similar laws now or hereafter in effect generally relating
      to or affecting creditors’ rights generally. Such Seller has the power,
      authority and capacity to execute this Agreement and any other documentation
      relating to this Agreement, including to deliver this Agreement and any other
      documentation relating to this Agreement that it is required by this Agreement
      to deliver, and to perform its obligations under this Agreement.

     

    (d) No
      Violations of Laws or Agreements, Consents or Defaults.

     

    (i) The
      execution and delivery of this Agreement by such Seller and the consummation
      by
      it of the transactions contemplated by this Agreement will not result in any
      breach or violation of any of the terms or provisions of, or constitute a
      default under, (A) the certificate of incorporation or bylaws of such Seller
      or
      (B) any statute, order, decree, proceeding, rule, or regulation of any court
      or
      governmental agency or body, United States or foreign, having jurisdiction
      over
      such Seller or any assets of such Seller. 

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    (ii) The
      delivery by such Seller of this Agreement and the consummation by such Seller
      of
      the transactions contemplated hereby will not result in a breach or violation
      of
      the term of, or constitute a default under, or require notice to any third
      party
      under, any agreement, instrument, or commitment to which such Seller is party
      or
      by which such Seller is bound, and no consent or approval is required from
      any
      third party for the transactions contemplated by this Agreement other than
      such
      consents or approvals that the failure to receive which are not reasonably
      expected to have a material adverse effect on the transactions contemplated
      by
      this Agreement.

     

    (iii) Such
      Seller is not in default under, or in violation of any provision of, its
      certificate of incorporation, bylaws, any promissory note, indenture or any
      evidence of indebtedness or security thereto, lease, purchase contract or other
      commitment, or any other agreement that is material to the business of such
      Seller.

     

    (e) Status
      of Investor.
      Such
      Seller is an “accredited investor” as such term is defined in Rule 501(a) of
      Regulation D promulgated under the Act and has such knowledge and experience
      in
      financial and business matters that it is capable of evaluating the merits
      and
      risks of its purchase of the Purchaser
      Stock and the Company Stock
      and,
      after having been furnished with or having the opportunity to access such
      information concerning the Company as it has considered necessary, has concluded
      that it is able to bear those risks associated with the Purchaser Stock and
      the
      Company Stock and an investment in the Company. Such Seller is not a
      broker-dealer.

     

    (f) Investment
      Purpose.
      Such
      Seller is acquiring the Purchaser Stock and Company Stock in the ordinary course
      of its business and for its own account and not with a view to or for
      distributing or reselling any of such Purchaser Stock or Company Stock or any
      arrangement or understanding with any other persons regarding the distribution
      of such Purchaser Stock or Company Stock. Such Seller will not, directly or
      indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
      any offers to buy, purchase or otherwise acquire or take a pledge of) any of
      the
      Purchaser Stock or the Company Stock except in compliance with the Act,
      applicable state securities laws, blue sky laws and the respective rules and
      regulations promulgated thereunder or an exemption from such registration is
      available. By making the representations in this Section 2.1(d), such Seller
      does not agree to hold either the Purchaser Stock or the Company Stock for
      any
      minimum or other specific term and reserves the right, subject to the terms
      of
      this Agreement and any other documents or agreements executed by the such Seller
      in connection with this Agreement, to dispose of either the Purchaser Stock
      or
      the Company Stock at any time pursuant to an exemption under the Act, or an
      interpretation thereof, or a registration statement filed pursuant to the Act
      registering such transfer.

     

    (g) No
      Registration.
      Such
      Seller understands and agrees that the Purchaser
      Stock and Company Stock
      have not
      been registered under the Act pursuant to an exemption under the Act, or an
      interpretation thereof, and cannot be offered for sale, sold or otherwise
      transferred unless the Purchaser Stock or Company Stock, as applicable, are
      transferred pursuant to an exemption under the Act, or an interpretation
      thereof, or a registration statement filed pursuant to the Act registering
      such
      transfer. Such Seller acknowledges that if it transfers any of the Purchaser
      Stock or Company Stock, as applicable, pursuant to an exemption under the Act,
      or an interpretation thereof, the Purchaser may require an opinion of counsel
      for such Seller satisfactory to it that any such transfer is being made pursuant
      to an exemption from registration.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (h) General
      Solicitation.
      Such
      Seller is neither acquiring the Purchaser Stock nor the Company Stock as a
      result of or subsequent to any advertisement, article, notice or other
      communication regarding the Purchaser Stock or the Company Stock published
      in
      any newspaper, magazine or similar media or broadcast over television or radio
      or presented at any seminar or any other general solicitation or general
      advertisement.

     

    (i) Brokers
      and Finders.
      Such
      Seller has no knowledge of any person who will be entitled to or make a claim
      for payment of any finder fee or other compensation as a result of the
      consummation of the transactions contemplated by this Agreement.

     

    (j) Legend.
      Such
      Seller understands and agrees that until such time as (i) it provides to the
      Purchaser or its transfer agent, as required, an opinion of counsel to the
      effect that a transfer of all or some of the Purchaser Stock or all or some
      of
      the Subsidiary Stock, as applicable, may be made without registration under
      the
      Act, (ii) the Purchaser Stock or the Subsidiary Stock, as applicable, may be
      transferred by the Purchaser pursuant to Rule 144(k) of the Act, or (iii) the
      resale of the Purchaser Stock or the Subsidiary Stock, as applicable, is
      registered under the Act, the certificate for the Purchaser Stock and the
      Subsidiary Stock, as applicable, or any substitution therefor, will bear a
      restrictive legend (the “Legend”)
      in
      substantially the following form:

     

    THIS
      COMMON STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE
      144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR
      AN
      OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER
      FROM
      THE SECURITIES AND EXCHANGE COMMISSION.

    

    Section
      2.2 Representations
      and Warranties of the Purchaser.
      

     

    (a) Enforceability;
      Authorization.
      This
      Agreement has been duly executed and delivered by the Purchaser and this
      Agreement constitutes a legal, valid and binding obligation of the Purchaser
      enforceable against the Purchaser in accordance with the terms hereof, subject
      to: (i) judicial principles limiting the availability of specific performance,
      injunctive relief, and other equitable remedies; and (ii) bankruptcy,
      insolvency, reorganization, moratorium or other similar laws now or hereafter
      in
      effect generally relating to or affecting creditors’ rights generally. The
      Purchaser has the power, authority and capacity to execute this Agreement and
      any other documentation relating to this Agreement, including to deliver this
      Agreement and any other documentation relating to this Agreement that it is
      required by this Agreement to deliver, and to perform its obligations under
      this
      Agreement, including issuing the Purchaser Stock and causing the issuance of
      the
      Company Stock, and has taken all necessary action to authorize such execution,
      delivery and performance.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    (b) No
      Violations of Laws or Agreements, Consents or Defaults.

     

    (i) The
      execution and delivery of this Agreement by Purchaser and the consummation
      by
      Purchaser of the transactions contemplated by this Agreement will not result
      in
      any breach or violation of any of the terms or provisions of, or constitute
      a
      default under, (A) the certificate of incorporation or bylaws of Purchaser
      or
      (B) any statute, order, decree, proceeding, rule, or regulation of any court
      or
      governmental agency or body, United States or foreign, having jurisdiction
      over
      Purchaser or any assets of Purchaser. 

     

    (ii) The
      delivery by Purchaser of this Agreement and the consummation by Purchaser of
      the
      transactions contemplated hereby will not result in a breach or violation of
      the
      term of, or constitute a default under, or require notice to any third party
      under, any agreement, instrument, or commitment to which Purchaser is party,
      by
      which Purchaser is bound, or to which any of Purchaser’s assets are subject, and
      no consent or approval is required from any third party for the transactions
      contemplated by this Agreement other than such consents or approvals that the
      failure to receive which are not reasonably expected to have a material adverse
      effect on the transactions contemplated by this Agreement or the Purchaser’s
      business, or the assets of Purchaser.

     

    (iii) Purchaser
      is not in default under, or in violation of any provision of, its certificate
      of
      incorporation, bylaws, any promissory note, indenture or any evidence of
      indebtedness or security thereto, lease, purchase contract or other commitment,
      or any other agreement that is material to the business of
      Purchaser.

     

    (c) Status
      of Investor.
      The
      Purchaser is an “accredited
      investor” as such term is defined in Rule 501(a) of Regulation D promulgated
      under the Act and
      has
      such knowledge and experience in financial and business matters that it is
      capable of evaluating the merits and risks of its purchase of the Purchased
      Notes and, after having been furnished with or having the opportunity to access
      such information concerning the Company as it has considered necessary, has
      concluded that it is able to bear those risks associated with the Purchased
      Notes and an investment in the Company. The Purchaser is not a
      broker-dealer.

     

    (d) Investment
      Purpose.
      The
      Purchaser is acquiring the Purchased Notes in the ordinary course of its
      business and for its own account and not with a view to or for distributing
      or
      reselling any of such Purchased Notes or any arrangement or understanding with
      any other persons regarding the distribution of such Purchased Notes. The
      Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or
      otherwise dispose of (or solicit any offers to buy, purchase or otherwise
      acquire or take a pledge of) any of the Purchased Notes except in compliance
      with the Act, applicable state securities laws, blue sky laws and the respective
      rules and regulations promulgated thereunder or an exemption from such
      registration is available. By making the representations in this Section 2.2(c),
      the Purchaser does not agree to hold the Purchased Notes for any minimum or
      other specific term and reserves the right, subject to the terms of this
      Agreement and any other documents or agreements executed by the Purchaser in
      connection with this Agreement, to dispose of the Purchased Notes at any time
      pursuant to an exemption under the Act, or an interpretation thereof, or a
      Registration Statement filed pursuant to the Act registering such transfer.
      

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    (e) No
      Registration.
      The
      Purchaser understands and agrees that the Purchased Notes have not been
      registered under the Act pursuant to an exemption under the Act, or an
      interpretation thereof, and cannot be offered for sale, sold or otherwise
      transferred unless the Purchased Notes are transferred pursuant to an exemption
      under the Act, or an interpretation thereof, or a registration statement filed
      pursuant to the Act registering such transfer. The Purchaser acknowledges that
      if it transfers any of the Purchased Notes pursuant to an exemption under the
      Act, or an interpretation thereof, the Company may require an opinion of counsel
      for the Purchaser satisfactory to it that any such transfer is being made
      pursuant to an exemption from registration. 

     

    (f) General
      Solicitation.
      The
      Purchaser is not acquiring the Purchased Notes as a result of or subsequent
      to
      any advertisement, article, notice or other communication regarding the
      Purchased Notes published in any newspaper, magazine or similar media or
      broadcast over television or radio or presented at any seminar or any other
      general solicitation or general advertisement.

     

    (g) Brokers
      and Finders.
      The
      Purchaser has no knowledge of any person who will be entitled to or make a
      claim
      for payment of any finder fee or other compensation as a result of the
      consummation of the transactions contemplated by this Agreement.

     

    (h) Legend.
      The
      Purchaser understands and agrees that until such time as (i) the Purchaser
      provides to Company, as required, an opinion of counsel to the effect that
      a
      transfer of all or some or all of the Purchased Notes may be made without
      registration under the Act, (ii) the Purchased Notes may be transferred by
      the
      Purchaser pursuant to Rule 144(k) of the Act, or (iii) the resale of the
      Purchased Notes is registered under the Act, the certificate for the Purchased
      Notes or any substitution therefor, will bear a restrictive legend (the
“Notes
      Legend”)
      in
      substantially the following form:

     

    THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
      NO
      SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER
      SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION
      OF
      COUNSEL FOR THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
      NOT
      REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES
      AND
      EXCHANGE COMMISSION.

    

    (i) No
      Seller Representation.
      Purchaser agrees and acknowledges that the Sellers have not made and make no
      representation regarding the Company, the Company’s business, the Company’s
      assets (including the assets subject to the SDS Security Agreement and the
      BayStar Security Agreement) or the ability of the Company to satisfy any of
      its
      obligations under the Purchased Notes.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    ARTICLE
      3

     

    COVENANTS
      OF THE PARTIES

    

    Section
      3.1 Mutual
      Covenants.
      The
      parties hereto hereby covenant with each other as follows, which covenants
      are
      for the benefit of such parties and their respective permitted
      assigns:

     

    (a) Further
      Assurances.
      From
      and after the Closing Date, upon the request the Purchaser or either Seller,
      the
      Sellers and the Purchaser shall execute and deliver such instruments, documents
      and other writings as may be reasonably necessary or desirable to confirm and
      carry out and to effectuate fully the intent and purposes of this
      Agreement.

     

    (b) Commercially
      Reasonable Efforts.
      Each
      party hereto will use commercially reasonable efforts to take, or cause to
      be
      taken, all action, and to do, or cause to be done, all things necessary, proper
      or advisable, consistent with applicable law, to consummate and make effective
      in the most expeditious manner practicable the transactions contemplated hereby,
      including without limitation, making all regulatory and other filings required
      by applicable law as promptly as practicable after the date hereof.

     

    Section
      3.2 Covenants
      of Purchaser.
      

     

    (a) Piggy-Back
      Registrations.
      If, at
      any time prior to the fifth anniversary of the Closing, the Purchaser shall
      file
      with the SEC a registration statement relating to an offering for its own
      account or the account of others under the Act of any of its equity securities
      (other than on Form S-4 or Form S-8 or their then equivalents relating to equity
      securities to be issued solely in connection with any acquisition of any entity
      or business or equity securities issuable in connection with stock option or
      other employee benefit plans) (a “Registration Statement”), the Purchaser shall
      send to the Sellers written notice of such filing, and if, within 15 days after
      the date of such notice, either Seller shall so request in writing, the
      Purchaser shall include in such Registration Statement all or any part of the
      Purchaser Stock that such Seller requests to be registered. Notwithstanding
      the
      foregoing, in the event that, in connection with any underwritten public
      offering, the managing underwriter(s) thereof shall impose a limitation on
      the
      number of shares of Purchaser Stock that may be included in the Registration
      Statement because, in such underwriter(s)’ judgment, marketing or other factors
      dictate such limitation is necessary to facilitate public distribution, then
      the
      Purchaser shall be obligated to include in such Registration Statement only
      such
      limited portion of the Purchaser Stock with respect to which either Seller
      has
      requested inclusion hereunder as the underwriter shall permit; provided,
      however, that (i) the Purchaser shall not exclude any Purchaser Stock unless
      the
      Purchaser has first excluded all outstanding securities the holders of which
      are
      not contractually entitled to inclusion of such securities in such Registration
      Statement or are not contractually entitled to pro rata inclusion with the
      Purchaser Stock (ii) after giving effect to the immediately preceding proviso,
      any such exclusion of Purchaser Stock shall be made pro rata among the Sellers
      seeking to include Purchaser Stock and the holders of other securities having
      the contractual right to inclusion of their securities in such Registration
      Statement by reason of demand registration rights, in proportion to the number
      of shares of Purchaser Stock or other securities, as applicable, sought to
      be
      included by the Sellers or each such other holder, and (iii) no such reduction
      shall reduce the amount of Purchaser Stock included in the registration below
      twenty-five (25%) of the total amount of securities included in such
      registration. No right to registration of Purchaser Stock under this Section
      3.2(a) shall be construed to limit any registration required under Section
      3.2(a) hereof. If an offering in connection with which the Sellers are entitled
      to registration under this Section 3.2(a) is an underwritten offering, then
      if
      any of the Purchaser Stock owned by the Sellers is included in such Registration
      Statement, each Seller shall, unless otherwise agreed by the Purchaser, offer
      and sell such Purchaser Stock in an underwritten offering using the same
      underwriter or underwriters and, subject to the provisions of this Agreement,
      on
      the same terms and conditions as other shares of Purchaser Stock included in
      such underwritten offering.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    (b) Indemnification
      Relating to Registration Statement.
      In the
      event any Purchaser Stock is included in a Registration Statement pursuant
      to
      Section 3(a) of this Agreement:

     

    (i) To
      the
      extent permitted by law, the Purchaser shall indemnify, hold harmless and defend
      (A) each Seller and (B) the directors, officers, partners, members, employees
      and agents of each Seller and each person, if any, who controls each Seller
      within the meaning of Section 15 of the Act or Section 20 of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) (each, an “Seller
      Indemnified Person”), against any joint or several losses, claims, damages,
      liabilities or expenses (collectively, together with actions, proceedings or
      inquiries by any regulatory or self-regulatory organization, whether commenced
      or threatened, in respect thereof, “Claims”) to which any of them may become
      subject insofar as such Claims arise out of or are based upon: (1) any untrue
      statement or alleged untrue statement of a material fact in a Registration
      Statement or the omission or alleged omission to state therein a material fact
      required to be stated or necessary to make the statements therein not
      misleading, (2) any untrue statement or alleged untrue statement of a material
      fact contained in any preliminary prospectus if used prior to the effective
      date
      of such Registration Statement, or contained in the final prospectus (as amended
      or supplemented, if the Purchaser files any amendment thereof or supplement
      thereto with the SEC) or the omission or alleged omission to state therein
      any
      material fact necessary to make the statements made therein, in light of the
      circumstances under which the statements therein were made, not misleading,
      or
      (3) any violation or alleged violation by the Purchaser of the Act, the Exchange
      Act or any other law (including, without limitation, any state securities law),
      rule or regulation relating to the offer or sale of the Purchaser Stock (the
      matters in the foregoing clauses (1) through (3), collectively, “Violations”).
      Subject to the restrictions set forth in Section 3.2(b)(ii) with respect to
      the
      number of legal counsel, the Purchaser shall reimburse Seller and each other
      Seller Indemnified Person, promptly as such expenses are incurred and are due
      and payable, for any reasonable legal fees or other reasonable expenses incurred
      by them in connection with investigating or defending any such Claim.
      Notwithstanding anything to the contrary contained herein, the indemnification
      agreement contained in this Section 3.2(b)(i) shall not apply to a Claim arising
      out of or based upon a Violation which occurs in reliance upon and in express
      conformity with information furnished in writing to the Purchaser by such Seller
      Indemnified Person expressly for use in the Registration Statement or any such
      amendment thereof or supplement thereto. Such indemnity shall remain in full
      force and effect regardless of any investigation made by or on behalf of the
      Seller Indemnified Person and shall survive the transfer of the Purchaser Stock
      by the Sellers.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    (ii) Promptly
      after receipt by any party entitled to indemnification under this Section 3.2(b)
      of notice of the commencement of any action (including any governmental action),
      such Seller Indemnified Person shall, if a Claim in respect thereof is made
      against Purchaser under this Section 3.2(b), deliver to the Purchaser a written
      notice of the commencement thereof, and the Purchaser shall have the right
      to
      participate in, and, to the extent the Purchaser so desires, to assume control
      of the defense thereof with counsel mutually satisfactory to the Purchaser
      and
      the Seller Indemnified Person; provided, however, that Purchaser shall not
      be
      entitled to assume such defense and an Seller Indemnified Person shall have
      the
      right to retain its own counsel with the fees and expenses to be paid by the
      Purchaser, if, in the reasonable opinion of counsel retained by the Purchaser,
      the representation by such counsel of the Seller Indemnified Person and the
      Purchaser would be inappropriate due to actual or potential conflicts of
      interest between such Seller Indemnified Person and any other party represented
      by such counsel in such proceeding or the actual or potential defendants in,
      or
      targets of, any such action include both the Seller Indemnified Person and
      the
      Purchaser and any such Seller Indemnified Person reasonably determines that
      there may be legal defenses available to such Seller Indemnified Person that
      are
      in conflict with those available to Purchaser. The Purchaser shall pay for
      only
      one separate legal counsel selected by such Seller Indemnified Person. The
      failure to deliver written notice to the Purchaser within a reasonable time
      of
      the commencement of any such action shall not relieve such Purchaser of any
      liability to the Seller Indemnified Person under this Section 3.2(b), except
      to
      the extent that the Purchaser is actually prejudiced in its ability to defend
      such action. The indemnification required by this Section 3.2(b) shall be made
      by periodic payments of the amount thereof during the course of the
      investigation or defense, as such expense, loss, damage or liability is incurred
      and is due and payable.

     

    (iii) If
      and to
      the extent the indemnification provided for in this Section 3.2(b) is held
      by a
      court of competent jurisdiction to be unavailable to a Seller Indemnified Person
      with respect to any losses, claims, damages or liabilities referred to herein,
      the Purchaser, in lieu of indemnifying such Seller Indemnified Person
      thereunder, shall contribute to the amount paid or payable by such Seller
      Indemnified Person as a result of such loss, claim, damage or liability in
      such
      proportion as is appropriate to reflect the relative fault of the Purchaser
      on
      the one hand and of the Seller Indemnified Person on the other in connection
      with the circumstances that resulted in such loss, claim, damage or liability,
      as well as any other relevant equitable considerations. The relative fault
      of
      the Purchaser and of the Seller Indemnified Person shall be determined by a
      court of law by reference to, among other things, whether the untrue or alleged
      untrue statement of a material fact or the omission to state a material fact
      relates to information supplied by the Purchaser or by the Seller Indemnified
      Person and the parties’ relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission; provided, however,
      that (a) the relative fault of the Company and any Seller Indemnified Person
      shall be determined without regard to (i) any duty or alleged duty of any Seller
      Indemnified Person to identify or describe any Seller Indemnified Person as
      an
      underwriter with respect to the registration for sale, offer for sale or sale
      of
      the Purchaser Stock or Company Stock, as applicable, (ii) any allegation or
      determination that any Seller Indemnified Person acted as an underwriter (within
      the meaning of Section 2(a)(11) of the Act) or (iii) any duty or alleged duty
      of
      any of the Seller Indemnified Person to investigate or otherwise verify the
      accuracy or sufficiency of information relating to the Company in the
      Registration Statement (or in any preliminary or final prospectus included
      therein) or any amendment thereof or supplement thereto, and (b) in no event
      shall the aggregate contribution obligation by any Seller hereunder exceed
      the
      net proceeds from the offering received by such Seller. The parties hereto
      agree
      that it would not be just and equitable if contribution pursuant to this Section
      3.2(b)(iii) were determined by pro rata allocation or any other method of
      allocation that does not take into account the equitable considerations referred
      to in this Section 3.2(b)(iii).

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (c) Registrable
      Securities.
      Purchaser hereby acknowledges and agrees that the common stock of the Company
      included in the Company Stock shall be “Registrable Securities” pursuant to that
      certain Registration Rights Agreement dated April 6, 2007 (the “UPDA
      Registration Rights Agreement”) between Universal Property Development and
      Acquisition Corporation and Sheridan Asset Management, LLC (“Sheridan”).
      Following the Closing, each Seller shall be entitled to all the same rights
      and
      privileges granted to Sheridan as a holder of Registrable Securities under
      the
      UPDA Registration Rights Agreement.

     

    (d) No
      Transfer of Subsidiary Assets.
      Following the Closing, the Purchaser shall not, and shall not permit any
      Subsidiary to, without the prior written consent of each of the Sellers, sell,
      transfer or otherwise dispose of any of the assets of such
      Subsidiary.

     

    ARTICLE
      4

     

    MISCELLANEOUS

     

    Section
      4.1 Fees
      and Expenses.
      Each
      party hereto shall pay the fees and expenses of its advisors, counsel,
      accountants and other experts, if any, and all other expenses, incurred by
      such
      party incident to the negotiation, preparation, execution, delivery and
      performance of this Agreement and the transactions contemplated
      hereby.

     

    Section
      4.2 Entire
      Agreement; Amendment.
      This
      Agreement contains the entire understanding and agreement (written or oral)
      of
      the parties hereto with respect to the subject matter hereof and, except as
      specifically set forth herein, neither the Sellers nor the Purchaser make any
      representation, warranty, covenant or undertaking with respect to such matters,
      and they supersede all prior understandings and agreements with respect to
      said
      subject matter, all of which are merged herein. No provision of this Agreement
      may be waived or amended other than by a written instrument signed by each
      party
      hereto. Any amendment or waiver effected in accordance with this Section 4.2
      shall be binding upon each such party and its permitted assigns.

     

    Section
      4.3 Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telecopy or facsimile at the address or number designated below
      (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business day during normal business hours where such notice
      is
      to be received) or (b) on the second business day following the date of mailing
      by express courier service, fully prepaid, addressed to such address, or upon
      actual receipt of such mailing, whichever shall first occur. The addresses
      for
      such communications shall be:

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    If
      to the
      SDS:

    

    SDS
      Capital Group

    c/o
      Ogier
      Fiduciary Services (Cayman) Ltd.

    113
      South
      Church Street, PO Box 1234GT

    George
      Town, Grand Cayman

    

    with
      a
      copy to:

    

    SDS
      Management, LLC

    53
      Forest
      Avenue, 2nd
      Floor

    Old
      Greenwich, CT 0870 

    

    If
      to
      BayStar:

    

    BayStar
      Capital II, L.P.

    c/o
      LRG
      Capital Group, LLC

    80
      E. Sir
      Francis Drake Blvd. 

    Suite
      2B

    Larkspur,
      CA 94939

    Attention:
      Mike Randall

    

    If
      to the
      Purchaser: 

    

    Universal
      Property Development & Acquisition Corporation

    14255
      U.S. Highway 1

    Suite
      209

    Juno
      Beach, FL 33408

    

    Either
      party hereto may from time to time change its address for notices by giving
      written notice of such changed address to the other party hereto.

    

    Section
      4.4 Waivers.
      No
      waiver by either party of any default with respect to any provision, condition
      or requirement of this Agreement shall be deemed to be a continuing waiver
      in
      the future or a waiver of any other provision, condition or requirement hereof,
      nor shall any delay or omission of any party to exercise any right hereunder
      in
      any manner impair the exercise of any such right accruing to it
      thereafter.

     

    Section
      4.5 Headings.
      The
      article, section and subsection headings in this Agreement are for convenience
      only and shall not constitute a part of this Agreement for any other purpose
      and
      shall not be deemed to limit or affect any of the provisions
      hereof.

     

    Section
      4.6 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns. Neither party hereto may assign its rights or
      obligations under this Agreement (by operation of law or otherwise) without
      the
      prior written consent of each other party hereto, and any attempted assignment
      without such consent shall be void ab initio.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    Section
      4.7 No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person or entity.

     

    Section
      4.8 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of Delaware, without giving effect to the choice of law
      provisions thereof. This Agreement shall not be interpreted or construed with
      any presumption against the party causing this Agreement to be
      drafted.

     

    Section
      4.9 Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument and shall become effective
      when counterparts have been signed by each party and delivered to the other
      parties hereto, it being understood that all parties need not sign the same
      counterpart. 

     

    Section
      4.10 Severability.
      The
      provisions of this Agreement are severable and, in the event that any court
      of
      competent jurisdiction shall determine that any one or more of the provisions
      or
      part of the provisions contained in this Agreement shall, for any reason, be
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provision or part
      of a
      provision of this Agreement and this Agreement shall be reformed and construed
      as if such invalid or illegal or unenforceable provision, or part of such
      provision, had never been contained herein, so that such provisions would be
      valid, legal and enforceable to the maximum extent possible.

     

    Section
      4.11 Survival.
      The
      representations and warranties contained herein shall survive so long as the
      Purchaser Stock and Purchased Notes are outstanding, notwithstanding any due
      diligence investigation conducted by or on behalf of any Purchaser. The
      agreements and covenants contained herein shall survive the
      Closing.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Share Purchase Agreement
      to
      be duly executed by their respective authorized officers as of the date first
      above written.

    
      	 	 	 
	 	
              PURCHASER

              

              UNIVERSAL
                PROPERTY DEVELOPMENT & ACQUISITION
                CORPORATION

            
	 
 	 
 	 
 
	 	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

      	 	 	 
	 	
              SELLERS

              

              SDS
                CAPITAL GROUP SPC, LTD.

            
	 
 	 
 	 
 
	 	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

      	 	 	 
	 	
              BAYSTAR

               

              BAYSTAR CAPITAL II, L.P.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            
	 	
            

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
      1.2

    

    List
      of each Subsidiary of the Company

    

    
      	
              Subsidiary

            	 	
              Total
                Percentage of outstanding stock or outstanding membership interests
                after
                giving effect to any UPDA purchase

            
	 	 	 
	
              Heartland
                Oil and Gas Corporation

            	 	
              5%1

            
	 	 	 
	
              Heartland
                Oil and Gas Incorporation

            	 	
              5%1

            
	 	 	 
	
              Heartland
                Gas Gathering, LLC

            	 	
              5%1

            
	 	 	 

    

     

    1 
      With 26.24% of the shares
      to be issued in the name of SDS
      Capital Group SPC, Ltd. Class B, 42.56% of the shares to be issued in the name
      of SDS Capital Group SPC, Ltd. Class D and 31.20% of the shares to be issued
      in
      the name of BayStar Capital II, LP.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
      1.4

    

    Purchased
      Notes held by SDS Capital Group SPC and Transferred to United Property
      Development and Acquisition Corporation Pursuant to this
      Agreement 

    

    
      	
              Principal
                Sum

            	 	
              Cash
                Payment

            	 	
              Amount
                of Purchaser Stock

            
	 	 	 	 	 
	
              $
                3,272,000.00

            	 	
              $
                1,031,935.972 

            	 	
              18,066,106
                shares3 

            
	 	 	 	 	 

    

     

    Purchased
      Notes held by BayStar Capital II, LP and Transferred to United Property
      Development and Acquisition Corporation Pursuant to this
      Agreement

    

    
      	
              Principal
                Sum

            	 	
              Cash
                Payment

            	 	
              Amount
                of Purchaser Stock

            
	 	 	 	 	 
	
              $
                1,484,000.00

            	 	
              $
                468,064.03

            	 	
              8,194,398
                shares

            
	 	 	 	 	 

    

    

    
      
        

      

       

      
        	2	
                With
                  $393,613.98 to be wired to SDS Capital Group SPC, Ltd. Class B
                  and
                  $638,321.99 to be wired to SDS Capital Group SPC, Ltd. Class
                  D.

              

      

       

      
        
          	3	
                  With
                    6,891,001 shares to be issued in the name of SDS Capital Group
                    SPC, Ltd.
                    Class B and 11,175,105 shares to be issued in the name of SDS
                    Capital
                    Group SPC, Ltd. Class D.

                

        

         

        
          
            
               

            

            
              
              

              
                

              

            

            
               

            

          

        

         

      

    

    Schedule
      2.1

    

    Heartland
      Oil and Gas Company Convertible Senior Secured Promissory Notes held by SDS
      Capital Group SPC 

    

    
      	
              Issuance
                Date

            	 	
              Maturity

            	 	
              Principal
                Sum

            	 
	 	 	 	 	 	 
	
              9/29/2006

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              1,653,124.70

            	 
	 	 	 	 	 	 	 	 
	
              9/29/2006

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              2,680,778.90

            	 
	 	 	 	 	 	 	 	 
	
              2/6/2007

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              48,600.00

            	 
	 	 	 	 	 	 	 	 
	
              2/6/2007

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              78,900.00

            	 

    

    

    Heartland
      Oil and Gas Company Convertible Senior Secured Promissory Notes held by BayStar
      Capital II, LP

    

    
      	
              Issuance
                Date

            	 	
              Maturity

            	 	
              Principal
                Sum

            	 
	 	 	 	 	 	 
	
              9/29/2006

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              1,966,097.00

            	 
	 	 	 	 	 	 	 	 
	
              2/6/2007

            	 	 	
              Earlier
                of 3/28/07 or closing of a subsequent equity financing

            	 	
              $

            	
              57,500.00

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