HEARTLAND OIL & GAS CORP
EXHIBIT 10.1
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<DESCRIPTION>EXHIBIT 10.1
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<title>THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE</title>
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<font size="2">THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR </font><br><font size="2">THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION </font><br><font size="2">UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY </font><br><font size="2">NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE </font><br><font size="2">SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT </font><br><font size="2">TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE </font><br><font size="2">STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH </font><br><font size="2">EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE </font><br><font size="2">SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN </font><br><font size="2">SECURED BY SUCH SECURITIES.</font></p>
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<font size="2">$3,635,000</font></p align="right">
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<a name="eolPage39"></a><font size="2"><b>PROMISSORY NOTE</b></font></p align="center">
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<font size="2"><b>DUE April 6, 2008</b></font></p>
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<br><font size="2">THIS NOTE is the duly authorized and issued Promissory Notes of Heartland Oil and Gas Corp., a Nevada corporation whose </font><br><font size="2">principal place of business is located at 12603 Southwest Freeway, Houston, Texas 77477. (&#8220;HTOG&#8221; or the &#8220;Company&#8221;), </font><br><font size="2">designated as its Senior Secured Promissory Note, due on April 6, 2008 (the &#8220; <u>Note</u> &#8220;).</font><br><br><font size="2">FOR VALUE RECEIVED, the Company promises to pay to Universal Property Development and Acquisition Corporation or its </font><br><font size="2">assigns (the &#8220;<u>Holder</u>&#8221;), the principal sum of $3,635,000 on the date and in the principal amount set forth below. This Note is </font><br><font size="2">subject to the following additional provisions:</font><br><br><font size="2"><u>Section 1</u> .&nbsp;&nbsp;&nbsp;<u>Definitions</u> . For the purposes hereof, in addition to the terms defined elsewhere in this Note: (a) capitalized terms </font><br><font size="2">not otherwise defined herein have the meanings given to such terms in the Loan Agreement, and (b) the following terms shall </font><br><font size="2">have the following meanings:</font><br><br><font size="2">&#8220; <u>Business Day</u> &#8220; means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States </font><br><font size="2">or a day on which banking institutions in the State of New York are authorized or required by law or other government action to </font><br><font size="2">close.</font><br><br><font size="2">&#8220; <u>Change of Control Transaction</u> &#8220; means the occurrence after the date hereof, of any of (i) an acquisition after the date hereof by </font><br><font size="2">an individual or legal entity or &#8220;group&#8221; (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective </font><br><font size="2">control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of </font><br><font size="2">50% of the voting securities of the Company, (ii) a replacement at one time or within a three year period of more than one-half of </font><br><font size="2">the members of the Company&#8217;s board of directors which is not approved by a majority of those individuals who are members of </font><br><font size="2">the board of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any </font><br><font size="2">date whose nomination to the board of directors was approved by a majority of the members of the board of directors who are </font><br><font size="2">members on the date hereof), or (iii) the execution by the Company of an agreement to which the Company is a party or by which </font><br><font size="2">it is bound, providing for any of the events set forth above in (i) or (ii).</font><br><br><font size="2">&#8220; <u>Event of Default</u> &#8220; shall have the meaning set forth in Section 5.</font><br><br><font size="2">&#8220; <u>Exchange Act</u> &#8220; means the Securities Exchange Act of 1934, as amended.</font><br><br><br></p align="right">
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<br><br><font size="2">&#8220; <u>Late Fee</u> &#8220; shall have the meaning set forth in section 3(b) to this Note.</font><br><br><a name="eolPage40"></a><font size="2">&#8220; </font><font size="2"><u>Mandatory Repayment Amount</u> &#8220; shall equal the sum of (i) 115% of the principal&nbsp; amount of Note to be repaid and (i) all other </font><br><font size="2">amounts, costs, expenses and liquidated damages&nbsp; due in respect of the Note.</font><br><br><font size="2">&#8220; <u>Maturity Date</u> &#8220; means April 6, 2008, or such earlier date as the Note is required or permitted to be repaid as provided in this </font><br><font size="2">Note.</font><br><br><font size="2">&#8220; <u>Original Issue Date</u> &#8220; shall mean the date of the first issuance of the Note regardless of the number of transfers of the Note and </font><br><font size="2">regardless of the number of instruments which may be issued to evidence the Note.</font><br><br><font size="2">&#8220; <u>Person</u> &#8220; means a corporation, an association, a partnership, organization, a business, an individual, a government or political </font><br><font size="2">subdivision thereof or a governmental agency.</font><br><br><font size="2">&#8220; <u>Securities Act</u> &#8220; means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.</font><br><br><font size="2"><u>Section 2</u> .&nbsp;&nbsp;&nbsp;<u>Payment of Principal</u> .</font><br><br><font size="2">a)&nbsp;&nbsp;&nbsp;<u>Payment of Principal</u> . The outstanding principal under the Loan and this Note shall be due in one payment and payable on </font><br><font size="2">April 6, 2008.</font><br><br><font size="2">b)&nbsp;&nbsp;&nbsp;<u>Late Fee</u> . All overdue accrued and unpaid principal to be paid hereunder shall entail a late fee at the rate of 18% per annum </font><br><font size="2">(or such lower maximum amount of interest permitted to be charged under applicable law) (&#8220; <u>Late Fee</u> &#8220;).</font><br><br><a name="eolPage41"></a><font size="2">c)&nbsp;&nbsp;&nbsp;</font><font size="2"><u>Optional Prepayment</u> . The Company shall have the right to prepay, in cash, all, but not less than all, of the amount </font><br><font size="2">outstanding under the Note, upon not less than ten (10) Business Days written notice to the Holder by paying to the Holder, in </font><br><font size="2">immediately available funds, an amount equal to 100% of the then outstanding principal amount thereof and all other amounts, </font><br><font size="2">costs, expenses and liquidated damages due in respect of the Note.</font><br><br><font size="2"><u>Section 3</u>.&nbsp;&nbsp;&nbsp;<u>Registration of Transfers and Exchanges</u> .</font><br><br><font size="2">a)&nbsp;&nbsp;&nbsp;<u>Different Denominations</u>. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized </font><br><font size="2">denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration of transfer </font><br><font size="2">or exchange.</font><br><br><font size="2">b)&nbsp;&nbsp;&nbsp;<u>Reliance on Note Register</u>. Prior to due presentment to the Company for transfer of this Note, the Company and any agent of </font><br><font size="2">the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the </font><br><font size="2">purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the </font><br><font size="2">Company nor any such agent shall be affected by notice to the contrary.</font><br><br><font size="2"><u>Section 4</u> .&nbsp;&nbsp;&nbsp;<u>Negative Covenants</u>. Other than pursuant to the terms of any Transaction Document, so long as any portion of this </font><br><font size="2">Note is outstanding, the Company will not and will not permit any of its Subsidiaries to directly or indirectly:</font><br><br><font size="2">a)&nbsp;&nbsp;&nbsp;amend its certificate of incorporation, bylaws or its charter documents so as to adversely affect any rights of the Holder;</font><br><br><br></p align="right">
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<font size="2" color="#000080">2</font></p>
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<br><br><font size="2">b)&nbsp;&nbsp;&nbsp;repay, repurchase or offer to repay, repurchase or otherwise acquire or make any dividend or distribution in respect of any of </font><br><font size="2">its Common Stock, Preferred Stock, or other equity securities other than such repayments, repurchases, offers, acquisitions, </font><br><font size="2">dividends or distributions from the Company&#8217;s wholly-owned Subsidiaries to the Company or to joint venture partners pursuant </font><br><font size="2">to the existing Joint Ventures;</font><br><br><a name="eolPage42"></a><font size="2">c)&nbsp;&nbsp;&nbsp;dispose, in a single transaction, or in a series of transactions all or any part of its assets (other than cash) unless such disposal </font><br><font size="2">is (i) in the ordinary course of business, (ii) for fair market value, (iii) for cash, (iv) approved by the board of directors of the </font><br><font size="2">Company and (v) the proceeds received upon such sale are used to repay the Note;</font><br><br><font size="2">d)&nbsp;&nbsp;&nbsp;incur any capital expense in excess of $500,000;</font><br><br><font size="2">e)&nbsp;&nbsp;&nbsp;permit Kamal Abdallah to cease serving as Chief Executive Officer, or to otherwise cease to be the principal operating officer </font><br><font size="2">with final decision-making authority for the Company;</font><br><br><font size="2">f)&nbsp;&nbsp;&nbsp;consummate any merger or acquisition except on terms satisfactory to Lender; or</font><br><br><font size="2">g)&nbsp;&nbsp;&nbsp;enter into any agreement with respect to any of the foregoing .</font><br><font size="2">&nbsp;</font><br><font size="2"><u>Section 5</u> .&nbsp;&nbsp;&nbsp;<u>Other Covenants</u> . So long as any portion of this Note is outstanding, the Company will comply with the following </font><br><font size="2">covenants:</font><br><br><font size="2">a) <u>Financial Reporting</u> . The Company shall comply with the reporting requirements of the Exchange Act, shall timely file all </font><br><font size="2">annual, quarterly and other reports under the Exchange Act and shall provide such other monthly financial reporting or other </font><br><font size="2">monthly financial reports or other information as the Holder shall request.</font><br><br><font size="2">b) <u>Tangible Net Worth.</u> The difference obtained by subtracting the Company&#8217;s total assets from its current liabilities shall not be </font><br><font size="2">less than the aggregate principal, interest and other charges (including Late Fees) at any time.</font><br><br><font size="2"><u>Section 6</u> .&nbsp;&nbsp;&nbsp;<u>Events of Default</u> .</font><br><br><font size="2">a)&nbsp;&nbsp;&nbsp;&#8221; <u>Event of Default</u> &#8220;, wherever used herein, means any one of the following events (whatever the reason and whether it shall </font><br><font size="2">be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any </font><br><font size="2">order, rule or regulation of any administrative or governmental body):</font><br><br><font size="2">i.&nbsp;&nbsp;&nbsp;any default in the payment of (A) the principal of amount of the Note, or (B) interest (including Late Fees) on, the Note, as </font><br><font size="2">and when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which default, </font><br><font size="2">is not cured, within 2 Business Days;</font><br><br><font size="2">ii.&nbsp;&nbsp;&nbsp;the Company, any of its Subsidiaries shall fail to observe or perform any other covenant or agreement contained in this Note </font><br><font size="2">which failure is not cured, if possible to cure, within 2 Business Days;</font><br><br><font size="2">iii.&nbsp;&nbsp;&nbsp;a default or event of default (subject to any grace or cure period provided for in the applicable agreement, document or </font><br><font size="2">instrument) shall occur under any material agreement, lease, document or instrument to which the Company or any Subsidiary is </font><br><font size="2">bound, which default is not cured, within 2 Business Days ;</font><br><br><br></p align="right">
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<br><br><a name="eolPage43"></a><font size="2">iv.&nbsp;&nbsp;&nbsp;any representation or warranty made herein, in any written statement pursuant hereto or thereto, or in any other report, </font><br><font size="2">financial statement or certificate made or delivered to the Holder or any other holder of Notes shall be untrue or incorrect in any </font><br><font size="2">material respect as of the date when made or deemed made;</font><br><br><font size="2">v.&nbsp;&nbsp;&nbsp;(i) the Company, any of its Subsidiaries shall commence, or there shall be commenced against the Company or any such </font><br><font size="2">Subsidiary a case or other similar proceeding under any applicable bankruptcy or insolvency laws as now or hereafter in effect or </font><br><font size="2">any successor thereto which remain undismissed for a period of 60 days, or the Company or any Subsidiary commences any </font><br><font size="2">other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or </font><br><font size="2">liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any Subsidiary </font><br><font size="2">thereof; (ii) the Company or any Subsidiary thereof is adjudicated by a court of competent jurisdiction insolvent or bankrupt; or </font><br><font size="2">any order of relief or other order approving any such case or proceeding is entered; or (iii) the Company or any Subsidiary </font><br><font size="2">thereof suffers any appointment of any custodian or the like for it or any substantial part of its property which continues </font><br><font size="2">undischarged or unstayed for a period of 60 days; or (iv) the Company or any Subsidiary thereof makes a general assignment for </font><br><font size="2">the benefit of creditors; or (v) the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its </font><br><font size="2">debts generally as they become due; or (vi) the Company or any Subsidiary thereof shall call a meeting of its creditors with a </font><br><font size="2">view to arranging a composition, adjustment or restructuring of its debts; or (vii) the Company or any Subsidiary thereof shall by </font><br><font size="2">any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or viii.  any </font><br><font size="2">corporate or other action is taken by the Company or any Subsidiary thereof for the purpose of effecting any of the foregoing;</font><br><br><font size="2">vi.&nbsp;&nbsp;&nbsp;the Company or any Subsidiary thereof shall default in any of its obligations under any mortgage, credit agreement or other </font><br><font size="2">facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may </font><br><font size="2">be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring </font><br><font size="2">arrangement of the Company in an amount exceeding $25,000, whether such indebtedness now exists or shall hereafter be </font><br><font size="2">created and such default shall result in such indebtedness becoming or being declared due and payable prior to the date on which </font><br><font size="2">it would otherwise become due and payable;</font><br><br><font size="2">vii.&nbsp;&nbsp;&nbsp;No Loan Party shall have experienced a Material Adverse Effect; or</font><br><br><font size="2">viii.&nbsp;&nbsp;&nbsp;the Company shall be a party to any Change of Control Transaction, shall agree to sell or dispose of all or in excess of 33% </font><br><font size="2">of its assets in one or more transactions (whether or not such sale would constitute a Change of Control Transaction) or shall </font><br><font size="2">redeem or repurchase more than a de minimis number of its outstanding shares of Common Stock or other equity securities of the </font><br><font size="2">Company (other than repurchases of shares of Common Stock or other equity securities of departing officers and directors of the </font><br><font size="2">Company; provided such repurchases shall not exceed $100,000, in the aggregate, for all officers and directors during the term of </font><br><font size="2">this Note).</font><br><br><a name="eolPage44"></a><font size="2">b)&nbsp;&nbsp;&nbsp;</font><font size="2"><u>Remedies Upon Event of Default</u>. If any Event of Default occurs, the full principal amount of this Note, together with interest </font><br><font size="2">and other amounts owing in respect thereof, to the date of acceleration shall become, at the Holder&#8217;s election, immediately due </font><br><font size="2">and payable in cash, and the aggregate amount payable under this Note shall be increased to the Mandatory Repayment Amount. </font><br><font size="2">Commencing 5 days after the occurrence of any Event of Default that results in the eventual acceleration of this Note, interest on </font><br><font size="2">the principal amount of this Note shall accrue at the rate of 18% per annum, or such lower maximum amount of interest permitted </font><br><font size="2">to be charged under applicable law. The Holder need not provide and the Company hereby waives any presentment, demand, </font><br><font size="2">protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and </font><br><font size="2">all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be </font><br><font size="2">rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a Note holder </font><br><font size="2">until such time, if any, as the full payment under this Section shall have been received by it. No such rescission or annulment </font><br><font size="2">shall affect any subsequent Event of Default or impair any right consequent thereon.</font><br><br><br></p align="right">
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<br><br><font size="2"><u>Section 7</u> .&nbsp;&nbsp;&nbsp;<u>Miscellaneous</u> .</font><br><br><font size="2">a)&nbsp;&nbsp;&nbsp;<u>Notices</u> . Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in </font><br><font size="2">writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service, addressed to the </font><br><font size="2">Company, at the address set forth above, facsimile number <b>&nbsp;</b> (561) 277-2430, Attn: Christopher McCauley, <b>&nbsp;</b> or such other address </font><br><font size="2">or facsimile number as the Company may specify for such purposes by notice to be delivered in accordance with this Section. </font><br><font size="2">Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and </font><br><font size="2">delivered personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to the Holder at 14255 </font><br><font size="2">US Highway 1, Suite 209, Juno Beach, Florida  33408. Any notice or other communication or deliveries hereunder shall be </font><br><font size="2">deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via </font><br><font size="2">facsimile at the facsimile telephone number specified in this Section prior to 5:30 p.m. (New York City time) on a Business Day, </font><br><font size="2">(ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone </font><br><font size="2">number specified in this Section later than 5:30 p.m. (New York City time) on such date or if the date of such transmission is not </font><br><font size="2">a Business Day, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier </font><br><font size="2">service, or (iv) upon actual receipt by the party to whom such notice is required to be given.</font><br><br><font size="2">b)&nbsp;&nbsp;&nbsp;<u>Absolute Obligation</u> . Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the </font><br><font size="2">Company, which is absolute and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Note at </font><br><font size="2">the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.</font><br><br><font size="2">c)&nbsp;&nbsp;&nbsp;<u>Lost or Mutilated Note</u> . If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in </font><br><font size="2">exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or </font><br><font size="2">destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of </font><br><font size="2">evidence of such loss, theft or destruction of such Note, and of the ownership hereof, and indemnity, if requested, all reasonably </font><br><font size="2">satisfactory to the Company.</font><br><br><a name="eolPage45"></a><font size="2">d)&nbsp;&nbsp;&nbsp;</font><font size="2"><u>Governing Law</u> . All questions concerning the construction, validity, enforcement and interpretation of this Note shall be </font><br><font size="2">governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the </font><br><font size="2">principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and </font><br><font size="2">defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its </font><br><font size="2">respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts </font><br><font size="2">sitting in the City of New York, Borough of Manhattan (the &#8220; <u>New York Courts</u> &#8220;). Each party hereto hereby irrevocably submits </font><br><font size="2">to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or </font><br><font size="2">with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the </font><br><font size="2">Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that </font><br><font size="2">it is not personally subject to the jurisdiction of any such court, or such New York Courts are improper or inconvenient venue for </font><br><font size="2">such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any </font><br><font size="2">such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of </font><br><font size="2">delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good </font><br><font size="2">and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to </font><br><font size="2">serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by </font><br><font size="2">applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions </font><br><font size="2">contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Note, then the </font><br><font size="2">prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney&#8217;s fees and other costs and </font><br><font size="2">expenses incurred with the investigation, preparation and prosecution of such action or proceeding.</font><br><br><br></p align="right">
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<br><br><font size="2">e)&nbsp;&nbsp;&nbsp;<u>Waiver</u> . Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be </font><br><font size="2">construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of </font><br><font size="2">the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be </font><br><font size="2">considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of </font><br><font size="2">this Note. Any waiver must be in writing.</font><br><br><font size="2">f)&nbsp;&nbsp;&nbsp;<u>Severability</u> . If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, </font><br><font size="2">and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and </font><br><font size="2">circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws </font><br><font size="2">governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted </font><br><font size="2">rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, </font><br><font size="2">or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or applicable usury law or other law </font><br><font size="2">which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as </font><br><font size="2">contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the </font><br><font size="2">performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or </font><br><font size="2">advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of </font><br><font size="2">any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been </font><br><font size="2">enacted.</font><br><br><a name="eolPage46"></a><font size="2">g)&nbsp;&nbsp;&nbsp;</font><font size="2"><u>Next Business Day</u> . Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, </font><br><font size="2">such payment shall be made on the next succeeding Business Day.</font><br><br><font size="2">h)&nbsp;&nbsp;&nbsp;<u>Headings</u> . The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be </font><br><font size="2">deemed to limit or affect any of the provisions hereof.</font><br><br><font size="2">IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first </font><br><font size="2">above indicated.</font><br></p>
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<font size="2">HEARTLAND OIL AND GAS CORP.</font></p>
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<font size="2">/s/ Kamal Abdallah</font></p>
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<font size="2">Kamal Abdallah</font></p>
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<font size="2">Chief Executive Officer</font></p>
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<font size="2" color="#000080">6</font></p>
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