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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION </strong></font></div>
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      D.C. 20549 </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of the </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      Exchange Act of 1934 </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
      of report (Date of earliest event reported): </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>May
      17,</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      HERITAGE CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(Exact
      name of Company as specified in Charter) </strong></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(State
                or other jurisdiction of</strong></font></div>
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                or organization)</strong></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(Commission
                File No.)</strong></font></div>
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                Employee Identification
                No.)</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>405
      North Marienfeld, Suite 200</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Midland,
      Texas 79701</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(Address
      of Principal Executive Offices) </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>432-686-2618</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(Issuer
      Telephone number) </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Company under any of the following
      provisions (see General Instruction A.2 below).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>
      Soliciting material pursuant to Rule
      14a-12 under the Exchange Act (17 CFR240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>
      Pre-commencement communications pursuant
      to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>
      Pre-commencement communications pursuant
      to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.03</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Material
      Modification to Rights of Security Holders.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Articles of Incorporation of United Heritage Corporation (the &#8220;Company&#8221;)
      authorize it to issue 5,000,000 shares of preferred stock, $0.0001 par value
      per
      share and allow the Board of Directors, without shareholder approval and by
      resolution, to designate the preferences and rights of the preferred stock.
      On
      February 22, 2006, the Company&#8217;s Board of Directors unanimously adopted and
      approved a &#8220;Certificate of Designation, Preferences and Rights of Series A
      Preferred Stock of United Heritage Corporation&#8221; and a &#8220;Certificate of
      Designation, Preferences and Rights of Series B Preferred Stock of United
      Heritage Corporation&#8221;. Collectively, these are referred to in this Current
      Report as the &#8220;Certificates of Designation&#8221;.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Certificates of Designation create 133,334 shares of Series A Preferred Stock,
      30,303 shares of Series B-1 Preferred Stock and 45,455 shares of Series B-2
      Preferred Stock with the preferences and rights described below. The Series
      B-1
      and Series B-2 Preferred Stock is sometimes collectively referred to in this
      Current Report as the &#8220;Series B Preferred Stock&#8221;. The Certificates of
      Designation were filed with the Secretary of State of Utah on May 17, 2006.
      The
      following description is qualified in its entirety by the description of these
      securities included in Exhibits 3.1 and 3.2 attached to this Current
      Report.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reason
      for the Creation of the Preferred Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      February 22, 2006 the Company and Lothian Oil Inc. (&#8220;Lothian&#8221;) signed a Merger
      Agreement and Plan of Reorganization (the &#8220;Merger Agreement&#8221;) pursuant to which
      Lothian will be merged into the Company. The creation of the Series A and Series
      B Preferred Stock will allow the Company, in accordance with the Merger
      Agreement, to issue shares of Series A and Series B-1 Preferred Stock in
      exchange for the Series A and Series B-1 Preferred Stock held by certain Lothian
      shareholders. Lothian currently has outstanding 170,416 shares of Series A
      Preferred Stock and 50,000 shares of Series B-1 Preferred Stock. No Series
      B-2
      Preferred Stock has been issued, although Lothian has issued warrants for the
      purchase of 75,000 shares of Series B-2 Preferred Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
      of Preferred Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Series
      A Preferred Stock</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      holders of the Company&#8217;s Series A Preferred Stock are entitled to receive
      dividends at the rate of eight percent of the liquidation preference of
      $165.000165 per share per annum. The dividends are cumulative and prior and
      in
      preference to any declaration of payment of any dividend or other distribution
      (other than dividends payable in common stock) on the common stock. The
      dividends accrue from the date of issuance of each share and are payable
      quarterly. Holders of Series A Preferred Stock do not have preference over
      subsequent series of preferred stock but will be entitled to equal dividends
      or
      distributions made to holders of subsequent series of preferred
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series A Preferred Stock are entitled to vote with the common stock on an
&#8220;as
      converted&#8221; basis.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series A Preferred Stock are entitled to convert their shares into common
      stock. Commencing upon issuance, the liquidation preference (which is defined
      as
      $165.000165 per share plus any and all accrued unpaid dividends thereon) of
      each
      share of the Series A Preferred Stock may be converted into such number of
      fully
      paid and nonassessable whole shares of common stock as determined by dividing
      the liquidation preference by $1.65000165. The conversion ratio will be adjusted
      to 85% of the per share consideration received by the Company if it issues
      or
      sells (or if it is deemed to have issued or sold) any shares of its common
      stock
      for a consideration per share less than the conversion ratio in effect
      immediately prior to the time of such issue or sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series A Preferred Stock have a liquidation preference over holders of common
      stock, but are equal to holders of any subsequent series of Preferred Stock.
      The
      Company is entitled to redeem the Series A Preferred Stock for $165.000165
      per
      share plus all accrued and unpaid dividends thereon so long as it is a reporting
      company under Section 12 of the Securities Exchange Act of 1934, as amended,
      its
      common stock is traded on the Nasdaq System or in the domestic over-the-counter
      market as reported by the National Quotation Bureau, Incorporated or the
      American Stock Exchange, a registration statement under the Securities Act
      of
      1933, as amended, has been filed and is effective and covers the common stock
      issuable upon conversion of the Series A Preferred Stock and the market price
      on
      the date of the redemption notice is no less than 200% of the conversion
      ratio.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Certificate of Designation does not give holders of the Series A Preferred
      Stock
      pre-emptive rights. However, upon consummation of the merger, the Company will
      assume certain rights given to the holders of Lothian&#8217;s Series A Preferred Stock
      by virtue of a letter agreement signed by Lothian and the holders of its Series
      A Preferred Stock on November 16, 2005. Pursuant to the letter agreement, each
      holder of Series A Preferred Stock is entitled to a right of first refusal
      to
      purchase his pro-rata share of &#8220;New Securities&#8221; which Lothian may, from
      time-to-time, sell or issue after November 16, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;New
      Securities&#8221; are defined as any capital stock (including common stock and/or
      preferred stock) and any rights, convertible securities, options or warrants
      to
      purchase capital stock. New Securities does not include securities issued
      pursuant to the conversion or exercise of any outstanding convertible or
      exercisable securities on November 16, 2005, securities issued or issuable
      as a
      dividend or distribution on the Series A Preferred Stock, securities issued
      in a
      registered public offering under the Securities Act, securities issued pursuant
      to the acquisition of another corporation by Lothian or securities issued by
      the
      Company in connection with the transactions contemplated by the Merger
      Agreement. If any holder of Series A Preferred Stock fails to purchase his
      pro-rata share of New Securities, then the other holders of the Series A
      Preferred Stock may purchase his unpurchased pro-rata share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      pre-emptive rights described herein will terminate when Lothian becomes a
      reporting company under Section 12 of the Securities and Exchange Act of 1934,
      as amended.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Series
      B-1 and B-2 Preferred Stock</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of the Company&#8217;s Series B-1 Preferred Stock and Series B-2 Preferred Stock are
      entitled to receive dividends at the rate of eight percent of the liquidation
      preference of $165.000165 and $206.2502062, respectively, per annum. The
      dividends are cumulative and prior and in preference to any declaration of
      payment of any dividend or other distribution (other than dividends payable
      in
      common stock) on the common stock. The dividends accrue from the date of
      issuance of each share and will be payable quarterly. Holders of Series B
      Preferred Stock will not have preference over holders of Series A Preferred
      Stock or subsequent series of preferred stock but will be entitled to equal
      dividends or distributions made to holders of Series A Preferred Stock or
      subsequent series of preferred stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series B Preferred Stock are entitled to vote with the common stock on an
&#8220;as
      converted&#8221; basis. At each meeting or pursuant to each consent of the Company&#8217;s
      shareholders for the election of directors, the holders of Series B-1 Preferred
      Stock, voting as a separate class, shall be entitled to elect one member to
      the
      Board of Directors. Any additional members of the Company&#8217;s Board of Directors
      shall be elected by the holders of common stock and preferred stock, voting
      together as a single class. If a vacancy on the Board of Directors is to be
      filled by the Board of Directors, only directors elected by the same class
      or
      classes of shareholders as those who would be entitled to vote to fill such
      vacancy shall vote.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series B Preferred Stock are entitled to convert their shares into common
      stock. Commencing upon issuance, each share of the Series B-1 Preferred Stock
      may, at the option of the holder thereof, be converted into such number of
      fully
      paid and nonassessable whole shares of common stock as determined by dividing
      the liquidation preference by $1.65000165, and each share of the Series B-2
      Preferred Stock may, at the option of the holder thereof, be converted into
      such
      number of fully paid and nonassessable whole shares of common stock as
      determined by dividing the liquidation preference by $2.062502062. The
      conversion ratio will be adjusted to 85% of the per share consideration received
      by the Company if the Company issues or sells (or if the Company is deemed
      to
      have issued or sold) any shares of its common stock for a consideration per
      share less than the conversion ratio in effect immediately prior to the time
      of
      such issue or sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of Series B Preferred Stock have a liquidation preference over holders of common
      stock, but will be equal to holders of Series A Preferred Stock. The Company
      is
      entitled to redeem the Series B-1 Preferred Stock for $165.000165 per share
      and
      to redeem the Series B-2 Preferred Stock for $206.2502062 per share so long
      as
      it is a reporting company under Section 12 of the Securities Exchange Act of
      1934, as amended, its common stock is traded on the Nasdaq System or in the
      domestic over-the-counter market as reported by the National Quotation Bureau,
      Incorporated or the American Stock Exchange, a registration statement under
      the
      Securities Act of 1933, as amended, has been filed and is effective and covers
      the common stock issuable upon conversion of the Series B Preferred Stock and
      the market price on the date of the redemption notice is no less than 200%
      of
      the conversion ratio.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Certificate of Designation does not give holders of Series B Preferred Stock
      pre-emptive rights. However, the holders of the Company&#8217;s Series B Preferred
      Stock after the merger will have pre-emptive rights, because the Company has
      agreed to assume certain rights given to the holders of Lothian&#8217;s Series B
      Preferred Stock by virtue of a Registration Rights Agreement signed by Lothian
      and the holders of its Series B Preferred Stock on December 13, 2005. Pursuant
      to the Registration Rights Agreement, each holder of Series B Preferred Stock
      is
      entitled to a right of first refusal to purchase his pro-rata share of &#8220;New
      Securities&#8221; which Lothian may, from time-to-time, sell or issue after December
      13, 2005. The pro rata share of each holder, for purposes of this right of
      first
      refusal, is equal to the ratio of (i) the number of shares of Lothian common
      stock owned by such holder immediately prior to the issuance of New Securities
      (assuming full conversion of all preferred shares and exercise of all
      outstanding convertible securities, rights, options and warrants, directly
      or
      indirectly, into common stock held by such holder) to (ii) the total number
      of
      shares of common stock outstanding immediately prior to the issuance of New
      Securities (assuming full conversion of all outstanding preferred shares and
      exercise of all outstanding convertible securities, rights, options and
      warrants, directly or indirectly, held by all holders). If any holder of Series
      B Preferred Stock fails to purchase his pro-rata share of New Securities, then
      the other holders of the Series B Preferred Stock may purchase his unpurchased
      pro-rata share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;New
      Securities&#8221; are defined as any capital stock (including common stock and/or
      preferred stock) and any rights, convertible securities, options or warrants
      to
      purchase capital stock. New Securities does not include securities issued
      pursuant to the conversion or exercise of any outstanding convertible or
      exercisable securities on December 13, 2005, securities issued or issuable
      as a
      dividend or distribution on the Series B Preferred Stock, securities issued
      in a
      registered public offering under the Securities Act, securities issued pursuant
      to the acquisition of another corporation by Lothian or securities issued by
      the
      Company in connection with the transactions contemplated by the Merger
      Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      pre-emptive rights described herein will terminate when Lothian becomes a
      reporting company under Section 12 of the Securities and Exchange Act of 1934,
      as amended.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Effect
      of Issuance on Holders of our Common Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      holders of the Company&#8217;s common stock will be subordinate to the holders of its
      preferred stock in the distribution of dividends (other than dividends payable
      in common stock) and liquidation. Furthermore, holders of the Company&#8217;s Series A
      and Series B Preferred Stock may convert their shares of preferred stock into
      common stock at the rate of 100 shares of common stock for each share of Series
      A, Series B-1 and Series B-2 Preferred Stock (plus accrued but unpaid
      dividends). If, following the merger, all of the holders of our Series A
      Preferred Stock were to convert their shares to common stock, we would be
      required to issue an additional 10,328,838 shares of common stock and if all
      the
      holders of Series B-1 Preferred Stock were to convert their shares to common
      stock, we would be required to issue an additional 3,030,300 shares of common
      stock. If, following the merger, all of the warrants to purchase our Series
      B-2
      Preferred Stock were exercised and such shares of Series B-2 Preferred Stock
      were converted to common stock by the holders thereof, we would be required
      to
      issue an additional 4,545,454 shares of common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      shareholders will experience significant dilution if the holders of our
      preferred stock exercise their rights to convert and, as noted above, the
      holders of our common stock will be subordinate to certain rights of the
      preferred shareholders. Furthermore, because each share of preferred stock
      may
      be converted to 100 shares of common stock and may vote on an &#8220;as converted&#8221;
basis, the shares of preferred stock can make any attempt to gain control of
      the
      Company or remove management more difficult, costly or time consuming since
      the
      shares of preferred stock, voting on an &#8220;as converted&#8221; basis, will increase the
      number of voting shares necessary to acquire control or to meet the voting
      requirements imposed by state law with respect to corporate activities such
      as a
      merger or other business combination.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      the merger, Lothian expects to be subject to the reporting requirements of
      Section 12 of the Securities and Exchange Act of 1934, as amended, therefore,
      the pre-emptive rights discussed above are expected to terminate. If, following
      the merger, Lothian were not subject to the reporting requirements of Section
      12
      of the Securities and Exchange Act of 1934, than the holders of our common
      stock
      will experience additional dilution if holders of our Series A and Series B
      Preferred Stock exercise their pre-emptive rights when New Securities are
      issued.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      3.1 Certificate of Designation, Preferences and Rights of Series A Preferred
      Stock of United Heritage Corporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      3.2 Certificate of Designation, Preferences and Rights of Series B Preferred
      Stock of United Heritage Corporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Company has
      duly
      caused this Current Report to be signed on its behalf by the undersigned
      hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
      May 23, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">UNITED
              HERITAGE
              CORPORATION</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;C.
              Scott
              Wilson</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">C.
              Scott Wilson, Chief Executive
              Officer</font></td>
          </tr>

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{"company-data": {"conformed-name": "UNITED HERITAGE CORP", "cik": "0000354567", "assigned-sic": "1311", "irs-number": "870372826", "state-of-incorporation": "UT", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10179", "film-number": "06861280"}, "business-address": {"street1": "2 CADDO STREET", "city": "CLEBURNE", "state": "TX", "zip": "76031", "phone": "8176413681"}, "mail-address": {"street1": "2 CADDO STREET", "city": "CLEBURN", "state": "TX", "zip": "76031"}, "former-company": {"former-conformed-name": "DNA MEDICAL INC", "date-changed": "19881025"}}
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of report (Date of earliest event reported):
May
      17,
2006
UNITED
      HERITAGE CORPORATION
(Exact
      name of Company as specified in Charter)
Utah
0-9997
87-0372864
(State
                or other jurisdiction of
incorporation
                or organization)
(Commission
                File No.)
(IRS
                Employee Identification
                No.)
405
      North Marienfeld, Suite 200
Midland,
      Texas 79701
(Address
      of Principal Executive Offices)
432-686-2618
(Issuer
      Telephone number)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Company under any of the following
      provisions (see General Instruction A.2 below).
o
Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule
      14a-12 under the Exchange Act (17 CFR240.14a-12)
o
Pre-commencement communications pursuant
      to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
o
Pre-commencement communications pursuant
      to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c))
Item
      3.03
Material
      Modification to Rights of Security Holders.
The
      Articles of Incorporation of United Heritage Corporation (the "Company")
      authorize it to issue 5,000,000 shares of preferred stock, $0.0001 par value
      per
      share and allow the Board of Directors, without shareholder approval and by
      resolution, to designate the preferences and rights of the preferred stock.
      On
      February 22, 2006, the Company's Board of Directors unanimously adopted and
      approved a "Certificate of Designation, Preferences and Rights of Series A
      Preferred Stock of United Heritage Corporation" and a "Certificate of
      Designation, Preferences and Rights of Series B Preferred Stock of United
      Heritage Corporation". Collectively, these are referred to in this Current
      Report as the "Certificates of Designation".
The
      Certificates of Designation create 133,334 shares of Series A Preferred Stock,
      30,303 shares of Series B-1 Preferred Stock and 45,455 shares of Series B-2
      Preferred Stock with the preferences and rights described below. The Series
      B-1
      and Series B-2 Preferred Stock is sometimes collectively referred to in this
      Current Report as the "Series B Preferred Stock". The Certificates of
      Designation were filed with the Secretary of State of Utah on May 17, 2006.
      The
      following description is qualified in its entirety by the description of these
      securities included in Exhibits 3.1 and 3.2 attached to this Current
      Report.
Reason
      for the Creation of the Preferred Stock
On
      February 22, 2006 the Company and Lothian Oil Inc. ("Lothian") signed a Merger
      Agreement and Plan of Reorganization (the "Merger Agreement") pursuant to which
      Lothian will be merged into the Company. The creation of the Series A and Series
      B Preferred Stock will allow the Company, in accordance with the Merger
      Agreement, to issue shares of Series A and Series B-1 Preferred Stock in
      exchange for the Series A and Series B-1 Preferred Stock held by certain Lothian
      shareholders. Lothian currently has outstanding 170,416 shares of Series A
      Preferred Stock and 50,000 shares of Series B-1 Preferred Stock. No Series
      B-2
      Preferred Stock has been issued, although Lothian has issued warrants for the
      purchase of 75,000 shares of Series B-2 Preferred Stock.
Description
      of Preferred Stock
Series
      A Preferred Stock
The
      holders of the Company's Series A Preferred Stock are entitled to receive
      dividends at the rate of eight percent of the liquidation preference of
      $165.000165 per share per annum. The dividends are cumulative and prior and
      in
      preference to any declaration of payment of any dividend or other distribution
      (other than dividends payable in common stock) on the common stock. The
      dividends accrue from the date of issuance of each share and are payable
      quarterly. Holders of Series A Preferred Stock do not have preference over
      subsequent series of preferred stock but will be entitled to equal dividends
      or
      distributions made to holders of subsequent series of preferred
      stock.
Holders
      of Series A Preferred Stock are entitled to vote with the common stock on an
"as
      converted" basis.
Holders
      of Series A Preferred Stock are entitled to convert their shares into common
      stock. Commencing upon issuance, the liquidation preference (which is defined
      as
      $165.000165 per share plus any and all accrued unpaid dividends thereon) of
      each
      share of the Series A Preferred Stock may be converted into such number of
      fully
      paid and nonassessable whole shares of common stock as determined by dividing
      the liquidation preference by $1.65000165. The conversion ratio will be adjusted
      to 85% of the per share consideration received by the Company if it issues
      or
      sells (or if it is deemed to have issued or sold) any shares of its common
      stock
      for a consideration per share less than the conversion ratio in effect
      immediately prior to the time of such issue or sale.
Holders
      of Series A Preferred Stock have a liquidation preference over holders of common
      stock, but are equal to holders of any subsequent series of Preferred Stock.
      The
      Company is entitled to redeem the Series A Preferred Stock for $165.000165
      per
      share plus all accrued and unpaid dividends thereon so long as it is a reporting
      company under Section 12 of the Securities Exchange Act of 1934, as amended,
      its
      common stock is traded on the Nasdaq System or in the domestic over-the-counter
      market as reported by the National Quotation Bureau, Incorporated or the
      American Stock Exchange, a registration statement under the Securities Act
      of
      1933, as amended, has been filed and is effective and covers the common stock
      issuable upon conversion of the Series A Preferred Stock and the market price
      on
      the date of the redemption notice is no less than 200% of the conversion
      ratio.
The
      Certificate of Designation does not give holders of the Series A Preferred
      Stock
      pre-emptive rights. However, upon consummation of the merger, the Company will
      assume certain rights given to the holders of Lothian's Series A Preferred Stock
      by virtue of a letter agreement signed by Lothian and the holders of its Series
      A Preferred Stock on November 16, 2005. Pursuant to the letter agreement, each
      holder of Series A Preferred Stock is entitled to a right of first refusal
      to
      purchase his pro-rata share of "New Securities" which Lothian may, from
      time-to-time, sell or issue after November 16, 2005.
"New
      Securities" are defined as any capital stock (including common stock and/or
      preferred stock) and any rights, convertible securities, options or warrants
      to
      purchase capital stock. New Securities does not include securities issued
      pursuant to the conversion or exercise of any outstanding convertible or
      exercisable securities on November 16, 2005, securities issued or issuable
      as a
      dividend or distribution on the Series A Preferred Stock, securities issued
      in a
      registered public offering under the Securities Act, securities issued pursuant
      to the acquisition of another corporation by Lothian or securities issued by
      the
      Company in connection with the transactions contemplated by the Merger
      Agreement. If any holder of Series A Preferred Stock fails to purchase his
      pro-rata share of New Securities, then the other holders of the Series A
      Preferred Stock may purchase his unpurchased pro-rata share.
The
      pre-emptive rights described herein will terminate when Lothian becomes a
      reporting company under Section 12 of the Securities and Exchange Act of 1934,
      as amended.
Series
      B-1 and B-2 Preferred Stock
Holders
      of the Company's Series B-1 Preferred Stock and Series B-2 Preferred Stock are
      entitled to receive dividends at the rate of eight percent of the liquidation
      preference of $165.000165 and $206.2502062, respectively, per annum. The
      dividends are cumulative and prior and in preference to any declaration of
      payment of any dividend or other distribution (other than dividends payable
      in
      common stock) on the common stock. The dividends accrue from the date of
      issuance of each share and will be payable quarterly. Holders of Series B
      Preferred Stock will not have preference over holders of Series A Preferred
      Stock or subsequent series of preferred stock but will be entitled to equal
      dividends or distributions made to holders of Series A Preferred Stock or
      subsequent series of preferred stock.
Holders
      of Series B Preferred Stock are entitled to vote with the common stock on an
"as
      converted" basis. At each meeting or pursuant to each consent of the Company's
      shareholders for the election of directors, the holders of Series B-1 Preferred
      Stock, voting as a separate class, shall be entitled to elect one member to
      the
      Board of Directors. Any additional members of the Company's Board of Directors
      shall be elected by the holders of common stock and preferred stock, voting
      together as a single class. If a vacancy on the Board of Directors is to be
      filled by the Board of Directors, only directors elected by the same class
      or
      classes of shareholders as those who would be entitled to vote to fill such
      vacancy shall vote.
Holders
      of Series B Preferred Stock are entitled to convert their shares into common
      stock. Commencing upon issuance, each share of the Series B-1 Preferred Stock
      may, at the option of the holder thereof, be converted into such number of
      fully
      paid and nonassessable whole shares of common stock as determined by dividing
      the liquidation preference by $1.65000165, and each share of the Series B-2
      Preferred Stock may, at the option of the holder thereof, be converted into
      such
      number of fully paid and nonassessable whole shares of common stock as
      determined by dividing the liquidation preference by $2.062502062. The
      conversion ratio will be adjusted to 85% of the per share consideration received
      by the Company if the Company issues or sells (or if the Company is deemed
      to
      have issued or sold) any shares of its common stock for a consideration per
      share less than the conversion ratio in effect immediately prior to the time
      of
      such issue or sale.
Holders
      of Series B Preferred Stock have a liquidation preference over holders of common
      stock, but will be equal to holders of Series A Preferred Stock. The Company
      is
      entitled to redeem the Series B-1 Preferred Stock for $165.000165 per share
      and
      to redeem the Series B-2 Preferred Stock for $206.2502062 per share so long
      as
      it is a reporting company under Section 12 of the Securities Exchange Act of
      1934, as amended, its common stock is traded on the Nasdaq System or in the
      domestic over-the-counter market as reported by the National Quotation Bureau,
      Incorporated or the American Stock Exchange, a registration statement under
      the
      Securities Act of 1933, as amended, has been filed and is effective and covers
      the common stock issuable upon conversion of the Series B Preferred Stock and
      the market price on the date of the redemption notice is no less than 200%
      of
      the conversion ratio.
The
      Certificate of Designation does not give holders of Series B Preferred Stock
      pre-emptive rights. However, the holders of the Company's Series B Preferred
      Stock after the merger will have pre-emptive rights, because the Company has
      agreed to assume certain rights given to the holders of Lothian's Series B
      Preferred Stock by virtue of a Registration Rights Agreement signed by Lothian
      and the holders of its Series B Preferred Stock on December 13, 2005. Pursuant
      to the Registration Rights Agreement, each holder of Series B Preferred Stock
      is
      entitled to a right of first refusal to purchase his pro-rata share of "New
      Securities" which Lothian may, from time-to-time, sell or issue after December
      13, 2005. The pro rata share of each holder, for purposes of this right of
      first
      refusal, is equal to the ratio of (i) the number of shares of Lothian common
      stock owned by such holder immediately prior to the issuance of New Securities
      (assuming full conversion of all preferred shares and exercise of all
      outstanding convertible securities, rights, options and warrants, directly
      or
      indirectly, into common stock held by such holder) to (ii) the total number
      of
      shares of common stock outstanding immediately prior to the issuance of New
      Securities (assuming full conversion of all outstanding preferred shares and
      exercise of all outstanding convertible securities, rights, options and
      warrants, directly or indirectly, held by all holders). If any holder of Series
      B Preferred Stock fails to purchase his pro-rata share of New Securities, then
      the other holders of the Series B Preferred Stock may purchase his unpurchased
      pro-rata share.
"New
      Securities" are defined as any capital stock (including common stock and/or
      preferred stock) and any rights, convertible securities, options or warrants
      to
      purchase capital stock. New Securities does not include securities issued
      pursuant to the conversion or exercise of any outstanding convertible or
      exercisable securities on December 13, 2005, securities issued or issuable
      as a
      dividend or distribution on the Series B Preferred Stock, securities issued
      in a
      registered public offering under the Securities Act, securities issued pursuant
      to the acquisition of another corporation by Lothian or securities issued by
      the
      Company in connection with the transactions contemplated by the Merger
      Agreement.
The
      pre-emptive rights described herein will terminate when Lothian becomes a
      reporting company under Section 12 of the Securities and Exchange Act of 1934,
      as amended.
Effect
      of Issuance on Holders of our Common Stock
The
      holders of the Company's common stock will be subordinate to the holders of its
      preferred stock in the distribution of dividends (other than dividends payable
      in common stock) and liquidation. Furthermore, holders of the Company's Series A
      and Series B Preferred Stock may convert their shares of preferred stock into
      common stock at the rate of 100 shares of common stock for each share of Series
      A, Series B-1 and Series B-2 Preferred Stock (plus accrued but unpaid
      dividends). If, following the merger, all of the holders of our Series A
      Preferred Stock were to convert their shares to common stock, we would be
      required to issue an additional 10,328,838 shares of common stock and if all
      the
      holders of Series B-1 Preferred Stock were to convert their shares to common
      stock, we would be required to issue an additional 3,030,300 shares of common
      stock. If, following the merger, all of the warrants to purchase our Series
      B-2
      Preferred Stock were exercised and such shares of Series B-2 Preferred Stock
      were converted to common stock by the holders thereof, we would be required
      to
      issue an additional 4,545,454 shares of common stock.
Our
      shareholders will experience significant dilution if the holders of our
      preferred stock exercise their rights to convert and, as noted above, the
      holders of our common stock will be subordinate to certain rights of the
      preferred shareholders. Furthermore, because each share of preferred stock
      may
      be converted to 100 shares of common stock and may vote on an "as converted"
basis, the shares of preferred stock can make any attempt to gain control of
      the
      Company or remove management more difficult, costly or time consuming since
      the
      shares of preferred stock, voting on an "as converted" basis, will increase the
      number of voting shares necessary to acquire control or to meet the voting
      requirements imposed by state law with respect to corporate activities such
      as a
      merger or other business combination.
Following
      the merger, Lothian expects to be subject to the reporting requirements of
      Section 12 of the Securities and Exchange Act of 1934, as amended, therefore,
      the pre-emptive rights discussed above are expected to terminate. If, following
      the merger, Lothian were not subject to the reporting requirements of Section
      12
      of the Securities and Exchange Act of 1934, than the holders of our common
      stock
      will experience additional dilution if holders of our Series A and Series B
      Preferred Stock exercise their pre-emptive rights when New Securities are
      issued.
Item
      9.01
Financial
      Statements and Exhibits
Exhibit
      3.1 Certificate of Designation, Preferences and Rights of Series A Preferred
      Stock of United Heritage Corporation.
Exhibit
      3.2 Certificate of Designation, Preferences and Rights of Series B Preferred
      Stock of United Heritage Corporation.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Company has
      duly
      caused this Current Report to be signed on its behalf by the undersigned
      hereunto duly authorized.
Dated:
      May 23, 2006
UNITED
              HERITAGE
              CORPORATION
By:
/s/ C.
              Scott
              Wilson
C.
              Scott Wilson, Chief Executive
              Officer