Document:

Exhibit 10.5

    Exhibit
      10.5

    

    PROMISSORY
      NOTE

    

    
      	
              Borrower:

            	
              RRF
                Limited Partnership

              1615
                E Northern Avenue, #102

              Phoenix,
                AZ 85020

            	
              Lender:

            	
              Rare
                Earth Financial, L.L.C.

              1615
                E Northern Avenue, #102

              Phoenix,
                AZ 85020

            

    

    

    

    PROMISE
      TO PAY: RRF Limited Partnership (“Borrower”) promises to pay Rare Earth
      Financial, L.L.C. (“Lender”), or order, the principal amount of $700,000, or so
      much as may be outstanding, together with interest on the unpaid outstanding
      principal balance of each advance. Interest shall be calculated from the date
      of
      each advance until repayment of each advance. 

    

    PAYMENT:
      Borrower will pay this loan in one payment of all outstanding principal plus
      all
      accrued unpaid interest on March 1, 2008. In addition, Borrower will pay regular
      monthly payments of all accrued unpaid interest due as of each payment date,
      beginning on April 1, 2006, with all subsequent interest payments to be due
      on
      the same day of each month thereafter. Payments shall be applied first to any
      charges or sums (other than principal and interest) due and payable by Borrower,
      second to accrued and unpaid interest on the principal balance hereof, and
      then
      to further reduce the principal balance of this promissory note
      (“note”).

    

    INTEREST
      RATE: The interest rate of this note shall be fixed at 7.0% per
      annum.

    

    INTEREST
      CALCULATION: The annual interest rate for this note is computed on a 360-day
      year.

    

    COLLATERAL:
      Borrower acknowledges that this note is secured by 49.0% of the units held
      by
      RRF Limited Partnership in Tucson Saint Mary’s Suite Hospitality
      L.L.C.

    

    LINE
      OF
      CREDIT: This note evidences a revolving line of credit. Advances under this
      note
      may be requested orally by Borrower or as provided in this paragraph. All oral
      requests shall be confirmed in writing on the day of the request. All
      communications are to be directed to the Lender’s office shown above. The
      following persons are authorized to request advances on the line of credit
      on
      behalf of the Borrower: Chief Financial Officer and Executive Vice President.
      Borrower agrees to be liable for all sums advanced in accordance with the
      instructions of the authorized persons. Lender will have no obligation to
      advance funds under this note if: (A) Borrower is in default under this note;
      or
      (B) Borrower ceases doing business or is insolvent.

    

    PREPAYMENT:
      At any time during the term of this note, Borrower may prepay all or part of
      the
      unpaid principal amount of the note, together with any accrued and unpaid
      interest thereon and any other sums or charges due hereunder without any
      prepayment premium or penalty.

    

    SUBORDINATION:
      The Lender agrees that (i) the indebtedness evidenced by this note is and shall
      be subordinated in right of payment, to the extent and in the manner provided
      herein, to the prior payment in full of any indebtedness under the Trust's
      loans
      or lines of credit, whether heretofore or hereafter made or entered into, with
      commercial banks or other entities engaged principally in the business of
      lending money (each a "Senior Lender"), and (ii) the security interest referred
      to above in the paragraph titled "Collateral" is and shall be subject and
      subordinate in all respects to any liens, terms, covenants and conditions of
      any
      secured loans or lines of credit with Senior Lenders, whether heretofore or
      hereafter made or entered into, and to all advances thereunder, whether
      heretofore or hereafter made pursuant to such loans or lines of credit. The
      Lender agrees that during the term of this note it will not commence,
      or

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    join
      with
      any other creditor in commencing any bankruptcy, reorganization, arrangement,
      insolvency or liquidation proceedings with respect to the Borrower, without
      each
      Senior Lender's prior written consent.

    

    Borrower
      hereby waives for itself and, to the fullest extent not prohibited by applicable
      law, for any subsequent lienor, any right Borrower may now or hereafter have
      under the doctrine of marshaling of assets or otherwise which would require
      Lender to proceed against certain property before proceeding against any other
      property.

    

    DEFAULT:
      Borrower hereby agrees that in the event part of the principal or interest
      is
      not paid when due or the entire note is not paid when due, then the rate of
      interest on this note shall, at the election of Lender upon ten (10) days prior
      written notice, be increased to nine and 00/100 percent (9.00%) per annum or
      the
      highest rate for which the parties may agree under applicable law, whichever
      is
      less (the “Default Rate”). Borrower shall be obligated thereafter to pay
      interest on the then unpaid principal balance of the note at the Default Rate,
      both before and after judgment, to be computed from the due date through and
      including the date of actual receipt of the overdue payment, whether a payment
      of interest or the entire note. Nothing herein shall be construed as an
      agreement or privilege to extend the date of the payment or any installment
      or
      the entire note, or as a wavier of any other right or remedy accruing to
      Lender.

    

    In
      the
      event that any regular monthly installment of principal and interest herein
      provided shall not be received by Lender on the date such payment is due, Lender
      shall have the right to assess Borrower a late payment charge in the amount
      of
      one-half percent (.5%) of such overdue monthly installment, which shall become
      due to Lender for the additional cost incurred by Lender by reason of such
      nonpayment. The Default Rate will only accrue for periods of delinquent
      installments except for when Lender accepts late payments of installments
      accompanied by a late payment charge as specified above.

    

    Upon
      any
      of the following Events of Default, at the election of Lender, the entire unpaid
      principal balance of the note, together with all accrued but unpaid interest
      thereon at the Default Rate and all other sums or charges due hereunder, shall
      become due and payable:

    

    
      	 	
              (a)

            	
              Borrower’s
                failure to pay when due any installment required to be paid hereunder,
                on
                or before the tenth (10th)
                day following the applicable due
                date;

            

    

    

    
      	 	
              (b)

            	
              Borrower’s
                failure to pay when due any other payment required to be paid under
                this
                note, subject to any notice and applicable grace period, if
                any;

            

    

    

    
      	 	
              (c)

            	
              Borrower’s
                breach of any other covenant or agreement herein and such breach
                remains
                uncorrected at the expiration of any applicable grace period expressly
                provided for herein;

            

    

     

    
      	 	
              (d)

            	
              Any
                creditor’s proceeding in which Borrower consents to the appointment or a
                receiver or trustee for any of its
                property;

            

    

    

    
      	 	
              (e)

            	
              If
                any order, judgment or decree shall be entered, without the consent
                of
                Borrower, upon an application of a creditor approving the appointment
                of a
                receiver or trustee for any of its property, and such order, judgment,
                decree, or appointment is not dismissed or stayed with an appropriate
                appeal bond within sixty (60) days following the entry or rendition
                thereof; or if Borrower (i) makes a general assignment for the benefit
                of
                creditors, (ii) fails to pay its debts generally as such debts become
                due,
                (iii) is found to be insolvent by a court of competent jurisdiction,
                (iv)
                voluntarily files a petition in bankruptcy or a petition or answer
                seeking
                readjustment of debts under any state or federal bankruptcy
                or

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    like
      law,
      or (v) any such petition is filed against Borrower and is not vacated or
      dismissed within sixty (60) days after filing thereof;

    

    
      	 	
              (f)

            	
              Borrower
                and Lender agree that no event of default has occurred by effect
                of (a)
                through (e) above if the event is a result of law or violates any
                other
                agreements agreed upon by Borrower and
                Lender.

            

    

    

    The
      Lender agrees to deliver a written notice of each Event of Default hereunder
      to
      each Senior Lender within five business days after the occurrence of such Event
      of Default. Each Senior Lender, individually or collectively, shall have the
      right, but not the obligation, to cure any such Event of Default within the
      same
      time period for curing a default which is given to the Borrower under this
      note,
      except that the Senior Lender's time period for cure shall begin on the date
      on
      which it receives notice of the Event of Default. All amounts advanced or
      expended by the Senior Lender to cure an Event of Default shall be deemed to
      have been advanced by the Senior Lender pursuant to the terms of its loan or
      line of credit documents. If an Event of Default occurs and is continuing,
      the
      Lender agrees that, without each Senior Lender's prior written consent, it
      will
      not exercise any rights or remedies it may have under this note, including,
      but
      not limited to accelerating this note, appointing (or seeking the appointment
      of) a receiver or exercising any other rights or remedies hereunder unless
      and
      until it has given each Senior Lender at least 30 days' prior written
      notice.

    

    Notice
      of
      election of remedies by Lender is hereby expressly waived as part of the
      consideration for this loan. Nothing contained herein shall be construed to
      restrict the exercise of any other rights or remedies granted to Lender
      hereunder upon the failure of Borrower to perform any provision
      hereof.

    

    If
      this
      note is not paid when due, whether at maturity or by acceleration, Borrower
      promises to pay all costs incurred by Lender, including without limitation
      reasonable attorney’s fees to the fullest extent not prohibited by law, and all
      expenses incurred in connection with the protection or realization of any
      collateral, whether or not suit is filed hereon or on any instrument granting
      a
      security interest.

    

    Borrower
      hereby expressly acknowledges and represents that the indebtedness is for a
      business purpose and not consumer or household purposes.

    

    Borrower
      hereby waives demand, presentment for payment, protest, notice of protest,
      notice of non-payments and any and all lack of diligence or delays in collection
      or enforcement of this note, and expressly consents to any extension of time
      of
      payment hereof, release of any party primarily or secondarily liable hereunder
      or any of the security for this note, acceptance of other parties to be liable
      for any of the note or of other security therefor, or any other indulgence
      or
      forbearance which may be made, without notice to any party and without in any
      way affecting the liability of any party.

    

    No
      failure by Lender to exercise any right hereunder shall be construed as a waiver
      of the right to exercise the same or any other right any time or from time
      to
      time thereafter.

    

    This
      note
      shall be construed and enforced according to, and governed by, the laws of
      the
      State of Arizona. 

    

    Any
      notice required hereunder shall be in writing, and shall be given to the
      receiving party by personal delivery or certified mail, postage prepaid, return
      receipt requested, as follows:

    

    if
      to
      Lender, then addressed to Lender at 1615 East Northern Avenue, Suite 102,
      Phoenix, Arizona 85020, (Tel. (602) 944-1500, Fax (602) 678-0281, with a copy
      to
      James W. Reynolds, Esq., Dillingham Cross, P.L.C., 5080 North 40th
      Street,
      Suite 335, Phoenix, Arizona 85018, (Tel. (602) 468-1811, Fax (602)
      468-0442);

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    if
      to
      Borrower, then addressed to Borrower at 1615 East Northern Avenue, Suite 102,
      Phoenix, Arizona 85020, Attn: Chief Financial Officer (Tel. (602) 944-1500,
      Fax
      (602) 678-0281), with a copy to James B. Aronoff, Esq., Thompson Hine LLP,
      3900
      Key Center, 127 Public Square, Cleveland, Ohio 44114 (Tel. (216) 566-5500,
      Fax
      (216) 566-5800).

    

    Any
      party
      may be given notice in writing to designate another address as a place for
      service of notice. Such notices shall be deemed to be received when delivered,
      if delivered in person, or seven (7) business days after deposited in the United
      States mails, if mailed as herein above provided.

    

    By
      acceptance of this note, Lender agrees that, upon payment in full of the then
      unpaid principal balance of this note, together with all unpaid interest and
      other sums payable to Lender under this note, (a) this note shall be fully
      satisfied, and (b) Lender shall promptly mark this note as being paid in full,
      satisfied and discharged and shall return the same to Borrower.

    

    Dated: March
      1,
      2006

    

    RARE
      EARTH FINANCIAL, L.L.C., an RRF
      LIMITED PARTNERSHIP, a 

    Arizona
      limited liability company  Delaware
      limited partnership,

    By
      InnSuites Hospitality Trust, General

    Partner,
      an Ohio real estate investment trust

    

    

    

    By: /s/
      James F. Wirth   By: /s/
      Marc E. Berg   

    Name:
      James F. Wirth    Name:
      Marc E. Berg

    Title:
      Manager    Title:
      Executive Vice-President

     

     

     

     

     

    
       

      
        
          
          

        

        
          4Exhibit 10.1 Agreement

    
      

    

    AGREEMENT

    

    THIS
      AGREEMENT (“Agreement”) dated May 9, 2006, is between Uranium Power Corp., a
      British of Columbia corporation ("UPC") and U.S. Energy Corp., a Wyoming
      corporation ("USE"), and a joint venture between USE and Crested Corp., a
      Colorado corporation ("Crested"), the joint venture between USE and Crested
      is
      referred to herein as "USECC" and USE, Crested and USECC are collectively
      referred to herein as the "USE Parties".

    

    RECITALS

    

    WHEREAS,
      on April 15, 2006 UPC entered into an Amended and Restated Option and Joint
      Venture Agreement - Sahara Mine Property, Emery County, Utah (the “Sahara
      Agreement”), which is attached as Exhibit A, with Uranium Group LLC in an area
      called the Green River South, whereby UPC has the right to earn a 70% undivided
      participating interest in the venture and property as an initial option and
      an
      additional option to earn an additional 15% undivided participating interest
      in
      the venture and property;

    

    WHEREAS;
      the USE Parties own 10 unpatented lode mining claims in an area called the
      Green
      River North, which claims are described on Exhibit B;

    

    WHEREAS,
      UPC and the USE Parties desire to transfer 50% of their respective ownership
      in
      the Green River South and the Green River North properties to each other and
      to
      develop the properties pursuant to joint mining venture agreements;

    

    NOW,
      THEREFORE, in consideration of the covenants and agreements contained herein,
      UPC and the USE Parties agree to the following terms and
      conditions:

     

    	1.  	
            UPC
              agrees to transfer 50% of its ownership in the Sahara Agreement and
              the
              Green River South properties to the USE
              Parties.

          

    

    	2.  	
            The
              USE Parties agree to transfer 50% of its ownership in the Green River
              North properties to UPC.

          

    

    	3.  	
            UPC
              agrees to provide the first $500,000 in expenditures to the joint venture,
              USE Parties agree to provide the next $500,000 in expenditures to the
              joint venture and thereafter UPC and the USE Parties will fund all
              expenditures on a 50% UPC and 50% the USE Parties
              basis.

          

    

     

    	4.  	
            The
              UPC stock to be paid to the Uranium Group LLC pursuant to the Sahara
              Agreement as specified in Section 3.1.3 Initial Option and Section
              3.4
              Additional Option shall be valued as between UPC and the USE Parties
              as
              the actual UPC stock price at the time of payment or $1.00/share, which
              ever is less, such amount in Canadian currency. The USE Parties shall
              have
              the option to pay this amount to UPC by cash, UPC stock or USE
              stock.

          

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    	5.  	
            UPC
              and the USE Parties will form two separate joint ventures; one for
              the
              Green River South properties and one for the Green River North properties.
              The Green River South joint venture agreement shall be between the
              Uranium
              Group LLC, UPC and the U.S. Energy Parties and the terms and conditions
              shall be consistent with the Sahara Agreement. The Green River North
              joint
              venture agreement shall be between UPC and the USE Parties and the
              terms
              and condition shall be consistent with other joint venture agreements
              between UPC and the U.S. Parties. However, for purposes of calculating
              expenditure commitments, the two joint ventures shall be considered
              as
              one.

          

    

    	6.  	
            The
              joint ventures will be managed by a Management Committee with equal
              representation from each of UPC and the USE Parties.
              

          

    

    	7.  	
            The
              USE Parties will be the Operator of the joint ventures, reporting to
              the
              Management Committee and may charge a minimum of cost plus 10% for
              its
              services and materials and 2% of the direct costs associated with contract
              work related to development and mining and purchase of capital equipment
              furnished to the joint ventures as provided in joint venture agreements
              to
              be executed by UPC and the USE Parties.

          

    

    	8.  	
            The
              parties to the joint venture agreements shall contribute to the costs
              and
              expenses and share in the joint venture in proportion to their respective
              participating interests, as they may from time to time then
              appear.

          

    

    	9.  	
            This
              Agreement may be terminated at any time by the mutual written consent
              of
              parties or in accordance to the joint venture
              agreement.

          

    

    	10.  	
            The
              parties intend that neither this Agreement nor the joint venture
              agreements contemplated hereunder shall create a partnership or mining
              partnership between UPC, the USE Parties and/or the Uranium Group LLC.
              Rather their relationship is one of covenants and the liability of
              the
              parties shall be several and not joint or
              collective.

          

    

    	11.  	
            UPC
              represents that it has received approval from its Board of Directors
              prior
              to the execution of this Agreement.

          

    

    	12.  	
            The
              USE Parties represent that they have received approval from their
              respective Board of Directors prior to the execution of this
              Agreement.

          

    

    	13.  	
            Any
              notice, consent, authorization or other communication to be given
              hereunder shall be in writing and shall be deemed duly given and received
              when delivered personally, when transmitted by fax, three days after
              being
              mailed by first class mail, or one day after being sent by a nationally
              recognized overnight delivery service, charges and postage prepaid,
              properly addressed to the party to receive such notice, at the following
              address or fax number for such party (or at such
              

          

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    other
      address or fax number as shall hereafter be specified by such party by like
      notice):

    

    (a) If
      to the
      USE Parties

    

    Mark
      J.
      Larsen,

    President
      

    877
      North
      8th West

    Riverton,
      WY 82501

    Phone: (307)
      856-9271

    Fax: (307)
      857-3050

    E-Mail:
      mark@usnrg.com

    

    (b) If
      to
      UPC

    

    Rahoul
      Sharan,

    President

    3rd
      Floor -
      Bellevue Centre

    235
      -
      15th
      Street

    West
      Vancouver, BC

    CANADA
      V7T 2X1

    Phone: (604)
      921-1810

    Fax: (604)
      921-1898

    E-Mail:
      rahoul@axion.net

    

    15.
      Miscellaneous.

    

    (a) This
      Agreement shall constitute the whole agreement and understanding between UPC
      and
      the USE Parties as to the subject matter of this Agreement and supersedes any
      other prior agreements or understandings whether written or oral between UPC
      and
      the USE Parties.

    

    (b) This
      Agreement may be modified only by an agreement in writing signed by the party
      against whom enforcement of any waiver, change, modification, extension or
      discharge is sought.

    

    (c) The
      waiver by either UPC or the USE Parties of a breach of any provision of this
      Agreement by the other shall neither operate as nor be construed as a waiver
      of
      any subsequent breach.

    

    (d) In
      the
      event that any condition or other provision of this Agreement is held to be
      invalid or void by any court of competent jurisdiction, the same shall be deemed
      severable from the remainder of this Agreement and shall in no way affect any
      other covenant or condition. If such condition, covenant or other provision
      shall be deemed invalid due to its scope or breadth, such provision shall be
      deemed valid to the extent of the scope or breadth permitted by
      law.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e) This
      Agreement may be executed in a number of identical counterparts, each of which
      for all purposes is to be deemed an original, and all of which constitute,
      collectively, one agreement. 

    

    (f) This
      Agreement shall be interpreted in accordance with the laws of the State of
      Wyoming.

    

    (g) The
      terms
      and provisions hereof shall inure to the benefit of and shall be binding upon
      the permitted successors and assigns of the parties.

    

    

    (h) In
      the
      event either party to this Agreement shall be required to institute any suit
      or
      legal action to enforce any of the provisions of this Agreement, then the
      prevailing party shall be allowed, in addition to such relief as awarded by
      the
      court, reasonable attorney's fees and court costs in prosecuting that
      action.

    

    (i) This
      agreement is subject to filing with the TSX Venture Exchange and UPC receiving
      confirmation that it has been accepted for filing.

    

    

    

    

    (Remainder
      of the page intentionally blank.)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    This
      Agreement is executed to be effective on the date first shown
      above.

    

    

    URANIUM
      POWER GROUP

    

    

    By
       Rahoul
      Sharan    

    

    Its
       President    

    

    

    U.S.
      ENERGY CORP.

    

    

    By
       Mark
      J. Larsen   

    

    Its
       President    

    

    

    U.S.
      ENERGY CORP. and CRESTED CORP. dba as USECC, a JOINT
      VENTURE

    

    U.S.
      ENERGY CORP.

    

    

    By
       Mark
      J. Larsen   

    

    Its
       President    

    

    

    CRESTED
      CORP.

    

    

    By
       /s/
      Harold F. Herron   

    

    Its
       President    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	 	 	 	
              EXHIBIT
                "B"

            	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              State

            	
              Name

            	
              No.

            	
              Sect

            	
              Twp

            	
              Rge

            	
              County

            	
              Book/Page

            	
              Serial
                #

            
	
              UT

            	
              Hollie

            	
              1

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/799

            	
              UMC373945

            
	
              UT

            	
              Hollie

            	
              2

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/800

            	
              UMC373946

            
	
              UT

            	
              Hollie

            	
              3

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/801

            	
              UMC373947

            
	
              UT

            	
              Hollie

            	
              4

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/802

            	
              UMC373948

            
	
              UT

            	
              Hollie

            	
              5

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/803

            	
              UMC373949

            
	
              UT

            	
              Hollie

            	
              6

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/804

            	
              UMC373950

            
	
              UT

            	
              Hollie

            	
              7

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/805

            	
              UMC373951

            
	
              UT

            	
              Hollie

            	
              8

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/806

            	
              UMC373952

            
	
              UT

            	
              Hollie

            	
              9

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/807

            	
              UMC373953

            
	
              UT

            	
              Hollie

            	
              10

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/808

            	
              UMC373954

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]