Document:

PROMISSORY NOTE

 

Exhibit

10.26

PROMISSORY

NOTE

 

	

  $100,000.00

  	

   

  	

  Phoenix, Arizona

  
	

   

  	

   

  	

  January 9, 2002

  
	

   

  	

   

  	

  Note Doc.010902100

  

 

FOR VALUED RECEIVED, and legally bound hereby, RRF LIMITED PARTNERSHIP

(“Maker”), a Delaware partnership, InnSuites Hospitality Trust, General

Partner, an Ohio real estate investment trust, having an office at 1615 East

Northern Avenue, Suite 102, Phoenix, Arizona 85020 hereby promises to pay to

the order of Rare Earth Development Company (“Payee”), an Arizona corporation,

1615 East Northern Avenue, Suite 102, Phoenix, Arizona 85020 or a such other

place as the holder hereof may from time to time designate in writing, the

principal sum of ONE HUNDRED THOUSAND AND 00/100 DOLLARS ($100,000.00), with

interest on the unpaid principal balance thereon from time to time outstanding,

at the rate of seven percent (7.00%) per annum, computed on a three hundred

sixty (360)-day year, to be due and payable in installments of principal and

interest as follows:

 

(A)                              Commencing on July 15, 2002, one annual

payment of accrued but unpaid interest on the outstanding principal balance

hereunder; and on July 15, 2002 (the “Maturity date”), one payment in the

amount of the then unpaid principal balance hereunder and all sums and charges

due and unpaid by Maker (collectively, the “Note”).

 

(B)                                Upon sale or refinance of hotel/s, half

of net proceeds shall be made available at option of hotel/s to prepay on this

note.

 

Payments shall be applied first to any charges or sums (other than

principal and interest) due and payable by Maker, second to accrued and unpaid

interest on the principal balance hereof, and then to further reduce the

principal balance of this Note.

 

Maker shall gave the right any time during the term of this Note to

repay all or part of the unpaid principal amount of the Note, together with any

accrued and unpaid interest thereon any other sums or charges due hereunder

without any prepayment premium or penalty.

 

Maker hereby waives for itself and, to the fullest extent not

prohibited by applicable law, for any subsequent lienor, any right Maker may

now or hereafter have under the doctrine of marshaling of assets or otherwise

which would require Payee to proceed against certain property before proceeding

against any other property.

 

Maker hereby agrees that in the event part of 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 Payee upon ten (10) days prior

written notice, each of which is hereby

 

1

 

expressly waived, 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”). Maker 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 Payee.

 

In the event that any regular payment of interest herein provided shall

not be received by Payee on the date such payment is due, Payee shall have the

right to assess Maker a late payment charge in the amount of two percent (2.0%)

of such overdue quarterly installment, which shall become immediately due to

Payee for the additional cost agreed compensation to Payee for the additional

costs and expenses reasonable expected to be incurred by Payee by reason of

such nonpayment.  Maker acknowledges

that the exact amount of such cost and expenses may be difficult, if not

impossible, to determine with certainty, and further acknowledges and confesses

the amount of such charge to be a consciously considered, good faith estimate

of the actual damage to Payee by reason of such default.  The Default Rate will only accrue for

periods of delinquent installments except for such when Payee 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 Payee,

the entire unpaid principle balance of the Note, together with all accrued but

unpaid interest thereon at the Default Rate and all other sums or changes due

hereunder, shall become due and payable:

 

(a)                                  Maker’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)                                 Maker’s failure to pay when due any other

payment required to be under this Note, subject to any notice and applicable

grace period, if any;

 

(c)                                  Maker’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 Maker

consents to the appointment or a receiver or trustee for any of its property;

 

2

 

(e)                                  if any order, judgment or decree shall be

entered, without the consent of Maker, 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

 

(f)                                    if Maker (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

like law, or (v) any such petition is filed against Maker and is not vacated or

dismissed within sixty (60) days after filling thereof.

 

Notice of such election by Payee 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 Payee hereunder upon the failure of

Maker to perform any provision hereof.

 

If this Note is not paid when due, whether at maturity or by

acceleration, Maker promises to pay all costs incurred by Payee, 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 granted a security interest.

 

Maker hereby expressly acknowledges and represents that the

indebtedness is for a business purpose and not consumer or household purposes.

 

Maker hereby waves 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 therefore, 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 Payee 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.

 

3

 

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 the notice by personal delivery or be certified mail,

postage prepaid, return receipt requested, as follows:

 

if to Payee, then addressed to Payee 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);

 

if to Maker, then addressed to maker at 1615 East

Northern Avenue, Suite 102, Phoenix, Arizona 85020, Attn: President (Tel. (602)

944-1500, Fax (602) 678-0281), with a copy to James B. Aronoff, Esq., Thompson

Hine & Flory, 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, Payee 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 Payee under this Note, (a) Note shall be

fully satisfied, (b) Payee shall promptly mark this Note as being paid in full,

satisfied and discharged and shall return the same to Maker.

 

	

  RRF LIMITED PARTNERSHIP, a

  
	

  Delaware limited partnership,

  
	

  InnSuites Hospitality Trust, General Partner,

  an Ohio real estate investment trust

  

 

	

  By: 

  	

  /s/ Marc E. Berg

  	

   

  
	

   

  	

  Name: Marc E. Berg

  
	

   

  	

  Title:  

  Executive Vice-President

  
				

 

4MacPac 8.0 Normal template

EXHIBIT

10.12

 

TERMINATION AND RELEASE

AGREEMENT

This TERMINATION AND

RELEASE AGREEMENT (“Termination Agreement”), is made and entered into this 11th

day of April, 2002, by and among USANA Health Sciences, Inc., a Utah

corporation (“USANA”), USANA Acquisition Corp., a Utah corporation

(“Acquisition  Sub”), and Gull Holdings, Ltd., an Isle of Man corporation

and the sole shareholder of Acquisition Sub (“Gull”).  USANA, Acquisition Sub, and Gull are sometimes collectively

referred to herein as the “Parties.”  Defined

terms not otherwise defined in this Termination Agreement shall have the

meaning set forth in the Asset Purchase Agreement (as defined below).

RECITALS

WHEREAS, on March 21,

2002, USANA, Acquisition Sub, and Gull entered into that certain Asset Purchase

Agreement whereby Acquisition Sub would acquire substantially all of the

operating assets of USANA and assume substantially all of the liabilities and

contractual obligations of USANA (the “Asset Purchase Agreement”);

WHEREAS, the Parties

believe that the Asset Purchase Agreement is no longer in the bests interests

of their respective shareholders; and

WHEREAS, pursuant to

Section 7.1 of the Asset Purchase Agreement, the Asset Purchase Agreement may

be terminated at any time prior to Closing by mutual written consent of the

Parties.

NOW, THEREFORE, in

consideration of the covenants and agreements herein set forth and for other

good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the Parties do hereby agree as follows:

1.             Termination of Asset Purchase

Agreement.  Effective immediately,

the Parties hereby abandon the transactions contemplated by the Asset Purchase

Agreement and mutually terminate the Asset Purchase Agreement pursuant to

Section 7.1 thereof.  Except for

Sections 5.15, 5.16.1, 5.16.2, and 5.16.4 of the Asset Purchase Agreement, none

of the provisions of the Asset Purchase Agreement shall survive termination of

the Asset Purchase Agreement hereunder.

2.             Publicity.  The Parties shall not make any public

statement regarding this Termination Agreement until 4:00 p.m. Eastern Daylight

Time on April 11, 2002.  At that time,

USANA shall issue a press release in the form, and containing the contents, of Exhibit

A to this Termination Agreement.

3.             Fees and Expenses.  Within thirty (30) days of the date of this Agreement, to the

extent not previously paid by USANA, USANA shall reimburse Acquisition Sub and

Gull for their costs and expenses heretofore or hereafter incurred in connection

with or relating to this 

 

1

 

Termination

Agreement, the Asset Purchase Agreement, and the transactions contemplated

hereby and thereby.

4.             Release of Claims.  Effective immediately, each of Gull,

Acquisition Sub, USANA, and each of their respective predecessors, successors,

subsidiaries and assigns (and any of the present and former officers, directors

and employees of each of the foregoing) (each, a “Releasing Party”),

in their capacity as such, hereby covenants not to sue and forever releases and

discharges Gull, Acquisition Sub, and USANA, respectively (and each of their

respective present and former directors, officers, representatives, advisors

(including but not limited to financial advisors), attorneys, accountants,

employees, agents, parents, subsidiaries, affiliated persons and entities,

predecessors, successors and assigns and heirs, executors and administrators

and all persons acting in concert with any such party) (each, a “Released

Party”) from all manner of claims, actions, causes of action or suits, at law

or in equity, known or unknown, which each now has or hereafter can, shall or

may have by reason of any matter, cause or thing whatsoever relating to or

arising out of the Asset Purchase Agreement or the agreements or instruments

ancillary thereto or the transactions contemplated thereby, or any action or

failure to act under the Asset Purchase Agreement or in connection therewith,

or in connection with the events leading to the abandonment of the transactions

contemplated by the Asset Purchase Agreement and the mutual termination of the

Asset Purchase Agreement, excepting only any claim, action, cause of action or

suit arising (i) out of an undertaking or promise contained in this Termination

Agreement, (ii) by virtue of obligations specifically surviving under the Asset

Purchase Agreement, or (iii) with respect to any statements made or actions

taken after the date of this Termination Agreement.

5.             Representations and Warranties.

                (a)           Gull

and Acquisition Sub represent to USANA that Gull and Acquisition Sub have all

requisite corporate power and authority to enter into this Termination

Agreement and to take the actions contemplated hereby.  The execution and delivery of this Termination

Agreement and the actions contemplated hereby have been duly authorized by all

necessary corporate action on the part of Gull and Acquisition Sub. This

Termination Agreement has been duly executed and delivered by Gull and

Acquisition Sub and constitutes a valid and binding agreement of Gull and

Acquisition Sub, enforceable against them in accordance with its terms.

                (b)           USANA

represents to Gull and Acquisition Sub that USANA has all requisite corporate

power and authority to enter into this Termination Agreement and to take the

actions contemplated hereby.  The

execution and delivery of this Termination Agreement and the actions

contemplated hereby have been duly authorized by all necessary corporate action

on the part of USANA, including approval of the USANA Special Committee of the

Board of Directors.  This Termination

Agreement has been duly executed and delivered by USANA and constitutes a valid

and binding agreement of USANA, enforceable against it in accordance with its

terms.

6.             Miscellaneous.

                                (a)           Entire

Agreement; Assignment.

 

2

 

(i)            This Termination

Agreement (including the documents and instruments referred to herein)

constitutes the entire agreement between the parties hereto in respect of the

subject matter hereof and supersedes all other prior agreements and

understandings, both written and oral, between the parties in respect of the

subject matter hereof.

(ii)           Neither this

Termination Agreement nor any of the rights, interests or obligations hereunder

shall be assigned or transferred, except by operation of law (including by

merger or consolidation), without the prior written consent of the other

parties.  Any assignment in violation of

the preceding sentence shall be null and void.

                (b)           Notices.  Any notice

or other communications pursuant to this Termination Agreement will be in

writing and will be deemed given if delivered personally, telecopied, sent by

nationally-recognized overnight courier or mailed by registered or certified

mail (return receipt requested), postage prepaid, to the Parties at the

following addresses (or at such other address for a Party as will be specified

by like notice):

                                (i)            If

to USANA:

                                USANA Health Sciences, Inc.

                                c/o

Durham Jones & Pinegar

                                111

East Broadway #900

                                Salt

Lake City, Utah 84111

                                Attention:  Kevin Pinegar

                                Telecopier:  (801) 415-3500

 

                                (ii)           If to Acquisition Sub:

                                USANA

Acquisition Corp.

                                c/o

Snell & Wilmer LLP

                                Gateway

Tower West

                                15

West South Temple, Suite 1200

                                Salt

Lake City, UT  84101

                                Attention:  Chris Anderson

                                Telecopier:  (801) 257-1800

 

                                (iii)          If to Gull:

                                Gull

Holdings, Ltd.

                                4

Finch Road

                                Douglas,

Isle of Man

                                Attention:  Stephen Eppleston

                                Telecopier:  011 441 624 663 534

 

All such notices and

other communications will be deemed to have been received (a) in the case of

personal delivery, on the date of such delivery, (b) in the case of a telecopy,

when the Party receiving such copy will have confirmed receipt of the

communication, (c) in the case of delivery by nationally-recognized courier, on

the business day following dispatch by overnight courier service (on the third

business day following dispatch in the case of international deliveries), and

(d) in the case of mailing, on the third business day following such mailing.

 

3

 

                                (c)           Governing Law. 

This Termination Agreement shall be governed by and construed in

accordance with the laws of the State of Utah, without giving effect to the

choice of law principles thereof.

                                (d)           Descriptive

Headings.  The descriptive headings herein are

inserted for convenience of reference only and are not intended to be part of

or to affect the meaning or interpretation of this Termination Agreement.

                                (e)           Parties

in Interest.  This Termination Agreement shall be

binding upon and inure solely to the benefit of the Parties and their

successors and permitted assigns, and nothing in this Termination Agreement,

express or implied, is intended to or shall confer upon any other person any

rights, benefits or remedies of any nature whatsoever.

                                (f)            Severability.  The provisions of this Termination

Agreement shall be deemed severable and the invalidity or unenforceability of

any provision shall not affect the validity or enforceability of the other

provisions hereof.  If any provision of

this Termination Agreement, or the application thereof to any person or any

circumstance, is invalid or unenforceable, (i) a suitable and equitable

provision shall be substituted therefor in order to carry out, so far as may be

valid and enforceable, the intent and purpose of such invalid or unenforceable

provision, and (ii) the remainder of this Termination Agreement and the

application of such provision to other persons or circumstances shall not be

affected by such invalidity or unenforceability, nor shall such invalidity or

unenforceability affect the validity or enforceability of such provision, or

the application thereof, in any other jurisdiction.

                                (g)           Counterparts.  This Termination Agreement may be

executed in two or more counterparts, all of which shall be considered one and

the same agreement and shall become effective when one or more counterparts

have been signed by each of the parties and delivered to the other

parties.  The Parties agree that

delivery of executed signature pages by facsimile shall be sufficient to render

this Termination Agreement effective.

                                (h)           Joint

Drafting.  The parties have

participated jointly in the negotiation and drafting of this Termination

Agreement.  In the event an ambiguity or

question of intent or interpretation arises, this Termination Agreement shall

be construed as if drafted jointly by the parties and no presumption or burden

of proof shall arise favoring or disfavoring any party by virtue of the

authorship of any provisions of this Termination Agreement.

                (i)            Amendment and Modification.  This Termination Agreement may be amended,

modified, and supplemented only by a written document executed by the Parties

which specifically states that it is an amendment, modification or supplement

to this Termination Agreement.

 

4

 

IN

WITNESS WHEREOF, each of the parties has caused this Termination Agreement to

be duly executed on its behalf as of the date first above written.

	

   

  	

  USANA HEALTH SCIENCES, INC.,

  
	

   

  	

  a Utah corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  John B.

  McCandless

  
	

   

  	

   

  	

   John B.

  McCandless, Sr. VP and COO

  
	

   

  	

   

  	

   

  
	

   

  	

  USANA ACQUISITION CORP.,

  
	

   

  	

  a Utah corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  David

  Wentz

  
	

   

  	

   

  	

   David Wentz,

  CEO

  
	

   

  	

   

  	

   

  
	

   

  	

  GULL HOLDINGS, LTD.,

  
	

   

  	

  an Isle of Man corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  /s/  Stephen

  M. Eppleston

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Its:

  	

   

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]