Document:

ex10-16.htm

    Exhibit
10.16

    

    ADJUSTABLE
RATE NOTE

    

    

    $100,000.00                                                                                                                                       May
11, 2001

    

    FOR VALUE RECEIVED, the undersigned,
KES, Inc., an Ohio corporation (“Maker”), having an address of 2817 Crain
Highway, Upper Marlboro, Maryland 20774, hereby promises to pay to the order of
JOHN DAVID DAVENPORT, an individual (“Payee”), at his offices at 1103 West Saint
Andrews Drive, Edmond, Oklahoma 73003, or such other place as the holder of this
Note may from time to time designate in writing, the principal sum of ONE
HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00), together with interest on the
unpaid principal balance from day to day remaining at the Applicable Interest
Rate (as hereinafter defined), as follows:

    

    1.           Definitions.  As
used herein, the following terms shall have the respective meanings
indicated:

    

    
      	
              (i)

            	
              Prime
      Rate.  The term “Prime Rate” as used herein shall mean a
      rate per annum equal to the base, prime or index commercial loan interest
      rate established and published or announced as such from time to time by
      Citibank, N.A., in New York, New York, or its successor (“Citibank”), and
      is not necessarily the lowest interest rate charged by Citibank on
      commercial loans.  If Citibank should have more than one
      established and published or announced base or prime commercial loan rate,
      the “Base Rate” herein shall mean Citibank’s highest established and
      published or announced base or prime commercial loan
      rate.  Without notice to Maker or any other party, Prime Rate
      shall automatically fluctuate upward and downward as and in the amount by
      which said base or prime commercial loan rate shall
    fluctuate.

            

    

    

    
      	
              (ii)

            	
              Maximum
      Rate.  The term “Maximum Rate” as used herein shall mean
      the maximum rate of interest permitted from time to time by applicable
      law.

            

    

    

    
      	
              (iii)

            	
              Applicable Interest
      Rate.  The term “Applicable Interest Rate” as used herein
      shall mean the rate, which shall from day to day be at the annual rate
      equal to the lesser of the
following:

            

    

    

    
      	
              (a)

            	
              the
      Maximum Rate; or

            

    

    

    
      	
              (b)

            	
              the
      sum of one percent (1%) plus the Prime
Rate;

            

    

    

    
      calculated
on the basis of actual days over a year consisting of 365 days; provided,
however, if at any time a rate of interest specified in clause (b) above would
exceed the Maximum Rate, thereby causing the interest hereon to be limited to
the Maximum Rate, then any subsequent reduction in Prime Rate shall not reduce
the rate of interest hereon below the Maximum Rate until the total amount of
interest accrued hereon equals the amount of interest which would have accrued
hereon if the rate specified in clause (b) above had at all times been in
effect.  Each change in the rate of interest charged hereunder shall
become effective on the effective date of each change in the Prime Rate or
Maximum Rate without notice to Maker.

      

      
        	
                2.

              	
                Payment.  This
      note is due and payable as follows:

              

      

      

      
        	
                (i)

              	
                Interest
      on the principal sum of this Note is due and payable annually as it
      accrues during the term hereof in annual installments commencing one year
      from the date hereof and continuing on each annual anniversary date
      thereafter.  Notwithstanding, in the event Maker does not have
      sufficient cash flow to make an interest payment under this paragraph
      2(i), Maker shall have the right to defer such payment, with interest,
      until such time as cash flow is available to make such payment, but not
      later than three (3) years from the date hereof (the "Maturity
      Date");

              

      

      

      
        	
                (ii)

              	
                All
      unpaid and outstanding principal on this Note and all accrued and unpaid
      interest on such principal amount shall be due and payable on the Maturity
      Date; and

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                The
      Note may be prepaid in whole or in part at any time during the term
      hereof.

              

      

      

      Any payment shall be applied first to
accrued interest due on the unpaid principal balance and the remainder of each
payment shall be applied to the reduction of unpaid principal.

      

        
          
             

          

          
            1

             

          

          
             

          

        

      

    

    3.           Default and
Remedies.  At the option of the holder of this Note, the entire
principal balance and accrued interest owing hereon shall at once become due and
payable without notice or demand upon the occurrence at any time of any of the
following events:

    

    
      	
              (i)

            	
              Default
      in the payment of any installment of principal or interest when
      due;

            

    

    

    
      	
              (ii)

            	
              Default
      in the performance of any of the covenants or provisions of, or the
      occurrence of any default or event of default under, the Pledge Agreement
      or any other deed of trust, mortgage, or other agreement securing this
      Note or evidencing the indebtedness created hereby;
  or

            

    

    
      	
              (iii)

            	
              The
      bankruptcy or insolvency of, the assignment for the benefit of creditors
      by, or the appointment of a receiver for any receiver for any property of
      any party liable for the payment of this Note, whether as maker, endorser,
      guarantor, surety, or otherwise; or

            

    

    

    With respect to the events described in
subparagraphs (ii) and (iii) above, the holder of this Note agrees to furnish
Maker ten (10) days prior written notice of the occurrence thereof before
declaring a default hereunder on account of same.

    

    All past due installments of principal
and, if permitted by applicable law, of interest, shall bear interest at the
highest lawful rate permitted by applicable law, or if no highest lawful rate is
applicable hereto, then at the rate of eighteen percent (18%) per
annum.  During the existence of any default hereunder, the entire
unpaid balance of principal shall bear interest at the highest rate permitted by
applicable law.

    

    4.           Attorney’s Fees and
Costs.  If this Note or any installment due hereunder is not
paid when due, whether at maturity or by acceleration, or if it is collected
through a bankruptcy, probate, or other Court, whether before or after maturity,
the undersigned agrees to pay all costs of collection, including, but not
limited to, reasonable attorneys’ fees incurred by the holder
hereof.

    

    5.           Governing
Law.  This Note shall be governed by, and construed in
accordance with, the laws of the State of Oklahoma, except to the extent such
laws are preempted by federal laws, in which case, this Note shall be governed
by such federal laws, as applied in the State of Oklahoma.  In the
event the enforceability or validity of any provision of this Note or of any
document evidencing or securing the indebtedness represented by this Note is
challenged or questioned, such provision shall be governed by, and shall be
construed in accordance with, whichever applicable federal or state law would
uphold or would enforce such challenged or questioned provision.

    

    
      
         

      

      
        2

         

      

      
         

      

    

    6.           Usury Savings
Clause.  All agreements between Maker and the holder hereof
whether now existing or hereafter arising and whether written or oral are hereby
expressly limited so that in no contingency or event whatsoever, whether by
reason of acceleration of the maturity hereof or otherwise, shall the amount
paid, or agreed to be paid, to the holder hereof for the use, forbearance, or
detention of the money to be loaned hereunder or otherwise or for the payment or
performance of any covenant or obligations contained herein or in any document
evidencing, securing or pertaining to the indebtedness evidenced hereby, exceed
the maximum amount permissible under applicable law.  If from any
circumstances whatsoever, fulfillment of any provision hereof or other document
at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by law, then, ipso facto, the obligation
to be fulfilled shall be reduced to the limit of such validity, and if from any
such circumstance the holder hereof should ever receive an amount deemed
interest by applicable law which shall exceed the highest lawful rate, such
amount which would be excessive interest shall be characterized as an expense,
rather than as interest, or be applied to the reduction of the principal amount
owing hereunder or on account of any other principal indebtedness of the
undersigned to the holder hereof, and not to the payment of interest or if such
excessive payment cannot be characterized as an expense, and exceeds the unpaid
balance of principal hereof and such other indebtedness, the excess shall be
refunded to Maker.  All sums paid or agreed to be paid by the
undersigned for the use, forbearance or detention of the indebtedness of the
undersigned to the holder hereof shall, to the extent permitted by applicable
law, be amortized, prorated, allocated and spread throughout the full term of
such indebtedness until payment in full.  The terms and provisions of
this paragraph shall control and supersede every other provision of all
agreements between the undersigned and holder hereof.

    

    7.           Waiver.  Except
as expressly provided herein, the Maker and any sureties, guarantors and
endorsers of this Note jointly and severally waive demand, presentment, notice
of nonpayment, notice of dishonor, notice of default and opportunity to cure,
notice of intent to accelerate, notice of acceleration, diligence in collecting,
grace, notice and protest, and consent to all extensions without notice for any
period or periods of time and partial payments, before or after maturity,
without prejudice to the holder.  The holder shall similarly have the
right to deal in any way, at any time, with one or more of the foregoing parties
without notice to any other party, and to grant any such party any extensions of
time for payment of any of said indebtedness, or to grant any other indulgences
or forbearances whatsoever, without notice to any other party and without in any
way affecting the personal liability of any party hereunder.

     

    
      8.           Notices.  Any
notice or demand required hereunder shall be deemed to be delivered when
deposited in the United States mail, postage prepaid, certified mail, return
receipt requested, addressed to Maker or Payee, as the case may be, at the
address set out hereinbelow, or at such other address as such party may
hereafter deliver in accordance herewith.  Any other method of
delivery of notice or demand shall be effective only when actually received by
the recipient thereof.  If and when included within the term “Maker”
or “Payee” there are more than one person, all shall jointly arrange among
themselves for their joint execution and delivery of a notice to the other
specifying some person at some specific address for the receipt of all notices,
demands, payment or other documents.  All persons included within the
terms “Maker” or “Payee” respectively, shall be bound by notices, demands,
payments and documents given in accordance with the provisions of this paragraph
to the same extent as if each had received such notice, demand, payment or
document.

      

      9.           Successors and
Assigns.  This Note and all covenants, promises and agreements
contained herein shall be binding upon and shall inure to the benefit of Maker
and Payee, and their respective successors and assigns.

      

      10.           Joint and Several
Liability.  Should this Note be signed or endorsed by more than
one person and/or entity, all of the obligations herein contained shall be
considered the joint and several obligations of each maker and endorser
hereof.

      

      11.           Termination.  This
Note may not be terminated orally, but only by a discharge in writing by the
holder of this Note at the time such discharge is sought.

      

        
          
             

          

          
            3

             

          

          
             

          

        

    

    EXECUTED IN Upper Marlboro, Maryland,
as of the day and year first above written.

    

    MAKER:

    

    KES,
INC., an Ohio corporation

    

    

    

    By:           /s/ Gerald G.
Barton                                                      

    Gerald G. Barton,
President

    

    ADDRESSES FOR
NOTICES

    

    
      
        	
                PAYEE:

              	 
      	
                MAKER:

              
	 
      	 
      	 
      
	
                John
      David Davenport

              	 
      	
                KES,
      Inc.

              
	
                1103
      W. Saint Andrews Drive

              	 
      	
                c/o
      Landmark National

              
	
                Edmond,
      Oklahoma 73003

              	 
      	
                2817
      Crain Highway

              
	 
      	 
      	
                Upper
      Marlboro, MD 20774

              

      

    

    

     

     

     

    4ex10-17.htm

    Exhibit
10.17

    

    PROMISSORY
NOTE

    

    

    $600,000.00                                                                                                                                   December
16, 2002

    

    

    

    FOR VALUE RECEIVED, the undersigned,
DPMG, INC., a Delaware corporation (the “Maker”), hereby promises to pay, upon
demand, to the order of GRG Corp., an Oklahoma corporation (“Payee”), at its
offices at 16 South Pennsylvania Avenue, Oklahoma City, Oklahoma 73106 in lawful
money of the United States of America, the principal sum of Six Hundred Thousand
Dollars and 00/100 Dollars ($600,000.00) or so much thereof as may be advanced
from time to time hereunder, together with interest on such principal amount as
herein specified.

    

    As used in this Note, the following
terms shall have the respective meanings indicated below:

    

    
      	
               
      

            	
              “Loan
      Interest Rate” means 2% per annum above the Prime Rate (as hereinafter
      defined), compounded semi-annually and based on a 360 day
      year.

            

    

    

    
      	
               
      

            	
              “Maturity
      Date” means the date upon which Payee demands payment of all principal and
      accrued interest hereunder.

            

    

    

    
      	
               
      

            	
              “Maximum
      Rate” means the maximum rate of non-usurious interest permitted by
      applicable law and calculated after taking into account any and all
      relevant fees, payments, and other charges in respect of this Note which
      are deemed to be interest under applicable law; provided
      however, in no event shall the Maximum Rate exceed 18% per
      annum.

            

    

    

    
      	
               
      

            	
              "Prime
      Rate" means the annual lending rate of interest announced from time to
      time by J.P. Morgan Chase and Co., New York, New York, as its prime
      rate.

            

    

    

    The outstanding principal balance
hereunder shall bear interest at a rate per annum which shall be equal to the
lesser of (a) the Maximum Rate, or (b) the Loan Interest Rate.  All
payments made pursuant to this Note shall be applied to the payment of accrued
interest before being applied to the payment of principal.

     

    
      Notwithstanding anything to the
contrary contained herein, no provisions of this Note shall require the payment
or permit the collection of interest in excess of the Maximum
Rate.  If any excess of interest in such respect is herein provided
for, or shall be adjudicated to be so provided, in this Note or otherwise in
connection with this loan transaction, the provisions of this paragraph shall
govern and prevail, and neither Maker nor the sureties, guarantors, successors
or assigns of Maker shall be obligated to pay the excess amount of such
interest, or any other excess sum paid for the use, forbearance or detention of
sums loaned pursuant hereto.  If, for any reason, interest in excess
of the Maximum Rate shall be deemed charged, required or permitted by any court
of competent jurisdiction, any such excess shall be applied as a payment and
reduction of the principal of indebtedness evidenced by this Note; and, if the
principal amount hereof has been paid in full, any remaining excess shall
forthwith be paid to Maker.  In determining whether or not the
interest paid or payable exceeds the Maximum Rate, Maker and Payee shall, to the
extent permitted by applicable law, (i) characterize any non-principal payment
as an expense, fee, or premium rater than as interest, (ii) exclude voluntary
prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
entire contemplated term of the indebtedness evidenced by this Note so that the
interest for the entire term does not exceed the Maximum Rate.

      

      An Event of Default shall be (1) a
default in the payment of any payment of principal or interest when due
hereunder, or (2) the filing by or against Maker of any petition or similar
instrument for the commencement of any proceeding under any bankruptcy,
reorganization, insolvency or liquidation law of any jurisdiction and the
failure by Maker to have same dismissed within 45 days after such
filing.

      

        
          
             

          

          
            1

             

          

          
             

          

        

      

    

     

    Upon the occurrence of any Event of
Default: A) the holder hereof may, at its option, declare the entire unpaid
principal and, to the extent such exists, accrued interest due under this Note
immediately due and payable without additional notice, demand or presentment,
all of which are hereby waived, and upon such declaration, the same shall become
and shall be immediately due and payable; and B) the principal, and to the
extent such exists, any interest due hereunder, shall bear interest at the
Maximum Rate until such Event of Default is cured.  Failure of the
holder hereof to exercise this option shall not constitute a waiver of the right
to exercise the same upon the occurrence of a subsequent Event of
Default.

    

    In the event (i) the holder hereof
expends any effort in any attempt to enforce payment of all or any part of any
sum due the holder hereunder, (ii) this Note is placed in the hands of an
attorney for collection, or an attorney is used by a holder hereof in any
bankruptcy  proceeding of Maker, or (iii) this Note is collected
through any legal proceedings, Maker agrees to pay all collection costs and fees
actually incurred by the holder, including reasonable attorney’s
fees.

    

    The remedies of the holder hereof, as
provided herein: 1) are cumulative and concurrent, 2) are in addition to those
remedies available under applicable law, 3) may be pursued singularly,
successively or together, at the sole discretion of the holder hereof, and 4)
may be exercised as often as occasion therefore shall arise.   No
act of, omission or commission of the holder, including, but not limited to, any
failure to exercise any right, remedy or recourse, shall be deemed to be a
waiver or release of the same, such waiver or release to be effected only
through a written document executed by the holder hereof and then only to the
extent specifically recited therein.   A waiver or release with
reference to any one event shall not be construed as continuing, as a bar to, or
as a waiver or release of any subsequent right, remedy or recourse as to a
subsequent event.

    

    This Note shall be governed by and
construed in accordance with the laws of the State of Delaware and the
applicable laws of the United States of America.

    

    Maker and each surety, guarantor,
endorser, and other party ever liable for payment of any sums of money payable
on this Note jointly and severally waive notice, presentment, demand for
payment, protest, notice of protest and non-payment or dishonor, notice of
acceleration, notice of intent to accelerate, notice of intent to demand,
diligence in collecting, grace, and all other formalities of any kind, and
consent to all extensions, renewals, and modifications without notice for any
period or periods of time and partial payments, before or after maturity,
without prejudice to the holder.  The holder shall similarly have the
right to deal in any way, at any time, with one or more of the foregoing parties
without notice to any other party, and to grant any such party any extensions of
time for payment of any of said indebtedness, or to grant any other indulgences
or forbearances whatsoever, without notice to any party and without in any way
affecting the liability of Maker hereunder.

    

    This Note shall be binding upon the
Maker, any surety and/or guarantor hereunder, and their heirs, legal
representatives, successors and assigns respectively and the terms hereof shall
inure to the benefit of the holder, its heirs, legal representatives, successors
and assigns.

    

    

    MAKER:

    

    DPMG, Inc., a Delaware
corporation

    

    

    

    By:           /s/ JOE
OLREE                                                      

    Joe Olree

    Treasurer

     

     

     

    2

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