EXHIBIT 10.1 (ii)
NON-NEGOTIABLE PROMISSORY NOTE
Principal Amount: $100,000 Date of Note: June 30, 2004
PROMISE TO PAY . Zion Oil & Gas, Inc. (the " Borrower ") promises to pay Robert E. Render Trust U/A DTD 2-15-94 ("
Lender "), or order, in lawful money of the United States of America, the principal amount of One Hundred Thousand Dollar
($100,000.00) (the " Loan ") or so much thereof as may be outstanding, together with interest on the unpaid outstanding
LOAN AGREEMENT . This Note is made pursuant to that certain Loan Agreement dated as of June 30, 2004 between Lender
and Borrower (the " Loan Agreement "). In the event of any discrepancy between this Note and the Loan Agreement, this Note
MATURITY AND PAYMENT OF PRINCIPAL . Borrower will pay the outstanding principal balance in accordance with the
following payment schedule, subject to the Extension Option as provided below:
Six (6) monthly payments (due on the first day of each month) on account of principal of One Thousand Six Hundred and Sixty
Six Dollars and 67/00 ($1,666.67) each commencing September 1, 2004 and through and including February 1, 2005, with the
remaining principal amount of Eighty-Nine Thousand Nine Hundred and Ninety-Nine and 98/00 Dollars ($89,999.98) (the "
Remaining Principal Amount ") due on March 2, 2005.
OPTION TO EXTEND PRINCIPAL REPAYMENT: Lender shall have the option (the " Extension Option ") to be exercised by
written notice to Borrower no later than February 15, 2005 to convert the Loan into a five (5) year reducing principle term loan
with final payment due on August 1, 2009. If the Extension Option is exercised, the Remaining Principal Amount shall be paid in
fifty-four (54) monthly payments on account of principal in the amount of One Thousand Six Hundred and Sixty Six and 67/00