Document:

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                                                                    EXHIBIT 10.7

                                 PROMISSORY NOTE

$1,000,000.00                                              Minnetonka, Minnesota
                                                           September 25, 2002

         FOR VALUE RECEIVED, the undersigned, THE CHATEAUX LLC, a Nevada limited
liability company (hereinafter "Borrower") whose address is 3745 Las Vegas Blvd.
South, Las Vegas, NV 89109, promises to pay to the order of GRAND CASINOS NEVADA
I, INC., a Minnesota corporation ("Holder") whose address is 130 Cheshire Lane,
Minnetonka, MN 55305, the principal sum of One Million and 00/100 Dollars
($1,000,000.00), or such lesser sums as may have been advanced to Borrower
hereunder, in lawful money of the United States of America, together with
interest on the unpaid principal balance, at the rates of interest hereinafter
specified to be repaid as set forth in the Loan Agreement ("Loan Agreement") of
even date herewith between the Borrower and the Holder.

         The interest due hereunder on the outstanding principal amount shall be
computed at a fixed rate of ten percent (10.0%) per annum. Interest shall be
calculated on the balances outstanding at the end of each day and on the basis
of a three hundred sixty (360) day year, but shall accrue and be payable on the
actual number of days in the month.

         All payments shall be applied first to late fees due hereunder, if any,
then to interest and then to principal, except that if any advance made by
Holder for expenses which are the responsibility of the Borrower is not promptly
repaid to Holder, any monies received, at the option of Holder, may first be
applied to repay such advances, plus interest thereon, at the rates provided
herein.

         All payments shall be made at the office of the Holder set forth above,
or at such other place as the Holder hereof may from time to time designate in
writing.

         It is hereby expressly agreed that if any default shall occur in the
payment of any installment of principal, interest or other sums when due
hereunder or any other sum when due hereunder or in the payment of any other
indebtedness owed by Borrower to Holder; and such default continues for ten (10)
days after the Holder hereof has given Borrower written notice of such default;
or if any "Event of Default" shall occur under the Loan Agreement: (a) the whole
sum of principal, accrued interest and other sums outstanding hereunder shall,
at the option of the Holder hereof, be fully accelerated and become immediately
due and payable, anything contained herein or in any instrument now or hereafter
securing this Note to the contrary notwithstanding, time being of the essence
hereof; and (b) the interest rate on this Note shall increase an additional four
percent (4%) per annum in excess of the interest rate in effect at said time
("Default Rate"). Said acceleration option and Default Rate shall continue until
all such defaults have been cured. In the event of such acceleration, the term
"Maturity Date" shall be deemed to mean the date on which this Note is due and
payable as a result of such acceleration.

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         Borrower may prepay a portion or the entire principal amount due
hereunder at any time without penalty, and such prepayment shall be applied as
hereinabove provided.

         No delay or omission on the part of the Holder of this Note in
exercising any right hereunder shall operate as a waiver of such right or of any
other remedy under this Note. A waiver on any one occasion shall not be
construed as a waiver of any such right or remedy on a future occasion.

         Borrower and all guarantors, if any, hereof hereby severally waive
presentment for payment, protest and demand, notice of protest, demand, dishonor
and nonpayment of this Note; and hereby further consent that the Holder hereof
may extend the time of payment or otherwise modify the terms of payment of any
part or the whole of the debt evidenced by this Note, or modify the Mortgage or
any other document securing this Note, or partially release or satisfy any
security furnished thereby, and such consent, release or satisfaction shall not
alter nor diminish the liability of any person liable or to become liable for
the indebtedness evidenced hereby or any portion of such indebtedness; and
hereby further consent that no act, omission or thing, except full payment of
this Note, which but for this provision could act as a release or impairment of
their liability, shall in any way release, impair or effect the liability of any
of them; and consent to the personal jurisdiction of the state and federal
courts located in the State of Nevada in connection with any controversy related
in any way to this Note or any security or guaranty for this Note, waive any
argument that venue in such forums is not convenient, and agree that any
litigation initiated by any of them against the Holder or any other holder of
this Note relating in any way to this Note or any security or guaranty for this
Note shall be venued in either the applicable state court in Clark County,
Nevada, or the United States District Court for the District of Nevada. However,
this Note shall be shall be construed according to the internal laws (other than
conflict laws) of the State of Minnesota.

         Borrower agrees to pay all costs of collection, including attorneys'
fees, in case the principal of this Note or any payment on the principal,
interest, or other sum due hereunder is not paid when due, and to pay all costs
including attorneys' fees in case it becomes necessary to protect the security
hereof, whether suit be brought or not.

         Notwithstanding any provision herein or in any instrument now or
hereafter securing this Note, the total liability for payments in the nature of
interest shall not exceed the limits now imposed by the usury laws of the State
of Minnesota.

         The rights or remedies of the Holder as provided in this Note and the
Mortgage and any other documents securing this Note shall be cumulative and
concurrent, and may be pursued singly, successively, or together against the
Mortgaged Property, any other funds, property or security held by Holder for the
payment hereof or otherwise at the sole discretion of the Holder. The failure to
exercise any such right or remedy shall in no event be construed as a waiver or
release of such rights or remedies or the right to exercise them at any later
time.

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         THE BORROWER ACKNOWLEDGES THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED AND THAT THE TIME AND EXPENSE
REQUIRED FOR TRIAL BY A JURY MAY EXCEED THE TIME AND EXPENSE REQUIRED FOR TRIAL
WITHOUT A JURY. THE BORROWER, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO
CONSULT) WITH COUNSEL OF BORROWER'S CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR
THE MUTUAL BENEFIT OF HOLDER AND BORROWER, WAIVES ANY RIGHT TO TRIAL BY JURY IN
THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY
WAY RELATED TO, THIS NOTE, ANY RELATED AGREEMENTS OR OBLIGATIONS THEREUNDER. THE
BORROWER HAS READ ALL OF THIS NOTE AND UNDERSTANDS ALL OF THE PROVISIONS OF THIS
NOTE. THE BORROWER ALSO AGREES THAT COMPLIANCE BY THE HOLDER WITH THE EXPRESS
PROVISIONS OF THIS NOTE SHALL CONSTITUTE GOOD FAITH AND SHALL BE CONSIDERED
REASONABLE FOR ALL PURPOSES.

                                            BORROWER:

                                            THE CHATEAUX, LLC

                                            By:      /s/ Stephen J. Cloobeck
                                               ---------------------------------
                                            Its:     Managing Member
                                                 -------------------------------

                                      -3-<PAGE>
                                                                   EXHIBIT 10.39

                                CONVERTIBLE NOTE

THE SECURITIES REPRESENTED HEREBY MAY NOT BE SOLD OR TRANSFERRED IN WHOLE OR IN
PART, UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), HAS BEEN DECLARED EFFECTIVE WITH RESPECT TO SUCH
SECURITIES, OR COUNSEL SATISFACTORY TO FULLNET COMMUNICATIONS, INC. HAS RENDERED
AN OPINION TO FULLNET COMMUNICATIONS, INC. IN FORM AND SUBSTANCE SATISFACTORY TO
FULLNET COMMUNICATIONS, INC. THAT THE PROPOSED TRANSFER IS EXEMPT FROM
REGISTRATION UNDER THE ACT OR THE RULES AND REGULATIONS THEREUNDER.

PRINCIPAL AMOUNT                                              No. 02-01
$5,000                                                        September 6, 2002

                                CONVERTIBLE NOTE
                              DUE SEPTEMBER 6, 2007

         FOR VALUE RECEIVED, the undersigned, FULLNET COMMUNICATIONS, INC., an
Oklahoma corporation (the "Company"), promises to pay to the order of
________________, or the permitted assigns hereof (the "Holder") at the
Company's principal executive office the principal sum of Five Thousand Dollars
($5,000) in lawful money of the United States of America on September 6, 2007
(the "Maturity Date"), together with interest on the unpaid balance of said
principal sum, subject to Section 1 or 2 hereof, at the rate of 8% per annum
(computed on the basis of a 365-day year) from the date hereof until said
principal sum is fully paid. Payment of interest under this Note, subject to
conversion in accordance with Sections 1 or 2 hereof, shall be made on the
Maturity Date in accordance with Section 4.

         1. Conversion at the Election of the Holder. Subject to the provisions
hereof, at the option of the Holder (exercisable, if at all, by written notice
to the Company delivered, together with this Note, on or before the fifth
anniversary of the date of this Note and, if required by the Company, an
instrument of transfer in form satisfactory to the Company duly executed by the
Holder and promptly delivered to the Company), the unpaid principal balance of
this Note shall be converted into shares of common stock of the Company,
$0.00001 par value per share ("Common Stock"), at a price equal to $0.15 per
share (the "Principal Conversion Price").

         2. Conversion at the Election of the Company. Notwithstanding the
foregoing, if the Company's Common Stock trades at a value equal to or greater
than $1.00 per share on any day on which any trades of the Common Stock were
made, the unpaid principal balance of this Note shall, at the discretion of the
Company at any time thereafter and with ten (10) days written

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notice to the Holder, be converted into Common Stock at the Principal Conversion
Price. Such Notice shall state the principal amount of this Note and the accrued
interest thereon to be converted. Upon any conversion, the Holder shall be
entitled to receive (i) such number of shares of Common Stock as shall equal the
unpaid amount of principal to be converted, divided by the Principal Conversion
Price; and at the Company's sole discretion either (ii) such number of shares of
Common Stock as shall equal the unpaid amount of accrued interest to be
converted, divided by the Closing price of the Common Stock on the date of
Conversion multiplied by .80 (the "Interest Conversion Price"); or (iii) a cash
payment equal to the accrued interest.

         In the event of any conversion under this Note, the Company may elect
to pay any accrued interest under this Note in cash or in additional shares of
Common Stock at the Interest Conversion Price.

         The Note may be prepaid at the Company's sole discretion at any time
after the second anniversary of the date of this Note so long as (i) prior to
the time of prepayment the Company's Common Stock has traded at a value equal to
or greater than $1.00 per share on any day on which any trades of the Common
Stock were made, (ii) the Note Holder receives twenty (20) days written notice
of the Company's intention to prepay the Note, and (iii) the Note Holder has the
right at his sole discretion to exercise his conversion rights in lieu of
prepayment. Except as set forth in this Section 2, principal and interest on
this Note may not be prepaid.

         3. Procedure for Conversion.

         A. At the Election of the Holder. In order to exercise the conversion
right hereunder, the Holder of this Note shall give written notice to the
Company at least five (5) days prior to the conversion date (the "Conversion
Date") at the Company's principal office, that the Holder elects to convert this
Note or the portion thereof specified in said notice, and shall surrender this
Note to the Company on or before the Conversion Date at such office. Such notice
shall also state the name or names, together with the address or addresses, in
which the certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued. This Note surrendered for
conversion shall, unless the shares issuable on conversion are to be issued in
the same name as the name of the original Holder, be accompanied by instruments
of transfer, in form reasonably satisfactory to the Company, duly executed by
the Holder or the Holder's duly authorized attorney.

         B. At the Election of the Company. In the case of a conversion at the
option of the Company, the Holder shall surrender this Note to the Company
within ten (10) days after the Company's notice of conversion.

         Under both A and B, above, as promptly as practicable after surrender
of this Note to the Company by the Holder, the Company shall issue and deliver
to such Holder, registered in the name of such Holder, a certificate or
certificates for the number of full shares of Common Stock issuable upon such
conversion bearing the following restrictive legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO
         AN EXEMPTION FROM REGISTRATION UNDER THE

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         SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE OFFERED
         FOR SALE, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT OR AN EXEMPTION UNDER THE ACT TO BE ESTABLISHED
         TO THE SATISFACTION OF THE COMPANY. THE SALE, IF ANY, OF THESE SHARES
         SHALL BE GOVERNED BY THE PROVISIONS OF RULE 144 OR ANY OTHER APPLICABLE
         RULE PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED.

         All shares delivered upon the conversion of this Note shall be validly
issued and outstanding and fully paid and nonassessable. At such time the rights
of the Holder of this Note as such Holder shall cease, and the Holder shall be
deemed to have become the Holder of record of the Common Stock into which this
Note shall have been converted.

         4. Payment of Accrued Interest at Maturity. At Maturity the Company
agrees to make payment to Holder for the accrued interest by either (i) issuing
to the Holder such number of shares of Common Stock as shall equal the unpaid
amount of accrued interest due, divided by the Closing price of the Common Stock
on the date of Maturity multiplied by .80; or (ii) making a cash payment to
Holder equal to the accrued interest. The method of payment shall be at the
Company's sole discretion.

         5. Fractional Shares. In case this Note is not converted, the Company
shall pay to the Holder the principal balance of this Note at the Maturity Date,
together with interest thereon in accordance with the terms of this Note. No
fractional share shall be issued upon conversion of this Note or at Maturity,
but if the conversion or Maturity results in a fraction, an amount equal to such
fraction multiplied by the Principal Conversion Price or Interest Conversion
Price, as applicable, shall be paid in cash to the Holder of this Note.

         6. Antidilution Adjustments. If the Company shall (a) pay a stock
dividend or make a stock distribution payable in shares of Common Stock, (b)
subdivide its outstanding Common Stock, (c) combine its outstanding Common Stock
into a smaller number of shares, (d) issue by reclassification of its Common
Stock any shares of the Company or (e) merge, consolidate, sell, lease or
exchange all or substantially all of its assets, or have a share exchange or
engage in a similar transaction affecting its Common Stock, the Principal
Conversion Price and terms for conversion shall be adjusted so that the holder
of this Note shall be entitled to receive upon conversion thereof the same
number and kind of shares of Common Stock and the same amount of cash as the
holder would have been entitled to receive upon the happening of the above
events if immediately prior to any such event this Note shall have been
converted. For this purpose any event described in clauses (a) through (e) in
the preceding sentence shall be deemed to have occurred immediately after the
opening of business on the day following the date fixed for the determination of
the Shareholders entitled to participate in such event.

         7. Note Registry. The Company shall maintain books for the transfer and
registration of this Note. Such registers shall show the names and addresses of
the respective Holder of this Note and the principal amount thereof.

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         7.1. Transfer Restrictions. In addition to the other provisions of this
Note, any transfer of this Note shall be effected only if the Company shall have
received an opinion of counsel addressed to the Company (which opinion and
counsel shall be reasonably satisfactory to the Company), to the effect that the
proposed transfer of the Note may be effected without registration under the
Securities Act. The Holder of this Note shall not transfer or assign this Note
or any interest herein to any other party without the prior written consent of
the Company.

         7.2. Transfers and Exchanges of Notes. The Company shall transfer, from
time to time, this Note and any outstanding Notes issued in substitution for
this Note upon the books to be maintained by the Company for that purpose, upon
surrender thereof for transfer properly endorsed or accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Note shall be issued to
the transferee and the surrendered Note shall be cancelled. Notes may be
exchanged at the option of the holder thereof, when surrendered at the principal
office of the Company for another Note, or other Notes of different
denominations, of like tenor and representing in the aggregate the same
principal amount.

         7.3. Mutilated or Missing Note. In case this Note shall be mutilated or
lost, stolen or destroyed, the Company may in its discretion issue and deliver
in exchange and substitution for a mutilated Note which shall be cancelled, or
in lieu of and substitution for a lost, stolen or destroyed Note, a new Note of
like tenor and in the same principal amount; but only upon receipt of evidence
satisfactory to the Company of such loss, theft or destruction and indemnity, if
requested, also satisfactory to it. Applicants for such substitute Notes shall
also comply with such other reasonable regulations and pay such other reasonable
charges as the Company may prescribe.

         8. Reservation of Shares etc. The Company shall at all times keep
reserved out of its authorized and unissued shares and/or shares held in its
treasury a number of shares of Common Stock sufficient to provide for the
conversion of all outstanding Notes, including this Note.

         9. Default. Each of the following events or occurrences shall
constitute a "Default" under this Note: (a) the Company shall fail to pay to
Holder any interest or principal owing hereunder when it becomes due and payable
at maturity, and such default shall continue for a period of ten (10) days after
the Company has received written notice informing it of such default from
Holder; (b) the dissolution or liquidation (by operation of law or otherwise,
other than an administrative dissolution under Oklahoma law which is remedied
within thirty (30) days) of the Company; or (c) a receiver, trustee or custodian
shall be appointed for the Company or any part of its property, or any
proceeding shall be commenced by or against the Company, under any bankruptcy,
reorganization, debt arrangement or insolvency law, and, in the case of any such
proceeding commenced against the Company, such proceeding shall not be dismissed
within thirty (30) days thereafter.

         9.1. Remedy Upon Default. Upon the occurrence and during the
continuance of a Default, Holder at its option shall have all rights and
remedies of a creditor under applicable law or any other agreement or instrument
between the Company and Holder.

         10. Note Holder not Deemed a Stockholder. Nothing contained in this
Note or in any of the Notes which may be issued from time to time in
substitution for this Note shall be

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construed as conferring upon the Holder hereof the right to vote or to consent
or to receive notice as a stockholder in respect of the meetings of stockholders
for any purpose, or any other rights whatsoever, as a stockholder of the
Company.

         11. Representations and Warranties by Holder. Holder understands and
acknowledges that acquisition of this Note is intended to be exempt from
registration under the Securities Act of 1933, as amended (the "Securities
Act"), by virtue of the provisions of Section 4(2) of the Securities Act and
Regulation D promulgated under the Securities Act, as amended ("Regulation D"),
and there is no existing public or other market for this Note (this Note and any
Common Stock to which it may be converted are collectively referred to herein as
the "Securities") and there can be no assurance that Holder will be able to sell
or dispose of the Securities. Holder represents and warrants to the Company
that:

         (a) Securities acquired are being acquired for its own account and
         without a view to the distribution or resale of such Securities or any
         interest therein in violation of the Securities Act;

         (b) Holder can bear the economic risk of this investment and can afford
         a complete loss thereof. Holder has (i) sufficient liquid assets to pay
         the full purchase for the Securities, (ii) adequate means of providing
         for the Holder's current and foreseeable future financial needs, and
         (iii) no need for liquidity of the investment in the Securities;

         (c) Holder has such experience in business and financial matters as to
         be fully capable of evaluating the substantial risks inherent in an
         investment in the Securities,;

         (d) Holder has reviewed information relating to the Company and its
         subsidiaries and the value of the Securities and has had the
         opportunity to ask questions and request additional relevant documents
         from the Company concerning the foregoing, which questions have been
         answered to Holder's full satisfaction. Holder is familiar with the
         affairs, financial condition and prospects of the Company and its
         subsidiaries and has acquired sufficient information to reach an
         informed and knowledgeable decision to acquire the Securities. Holder
         further understands that the Company makes no representations as to the
         current or any future value of the Securities or the value of the
         Company. Holder has consulted, or has had the opportunity to consult,
         with counsel, accountants and other professionals as to all matters
         covered by this Note and has not relied upon the advice of the Company
         or its officers or directors for investment, tax, legal or other advice
         with respect to this Note or the Common Stock;

         (e) Holder understands that the Securities have not been and will not
         be registered under the Securities Act or under any state securities
         laws, and further understands that the Securities and the acquisition
         hereunder have not been approved or disapproved by the SEC or any other
         federal or state agency;

         (f) Holder understands that the Securities cannot be resold unless
         registered under the Securities Act and under applicable state
         securities laws or unless an exemption from such registration is
         available. Holder further understands that any resale is also subject
         to the terms of this Note; and

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         (g) Neither this Note nor any other document or representations made by
         the Holder in connection with the Securities contains any untrue
         statement of a material fact or omit to state any material fact
         required to be stated herein or necessary in order to make the
         statements made not misleading.

         12. Agreement of Holder. The Holder of this Note by accepting the same
consents and agrees with the Company that:

         (a) This Note is transferable only on the registry books of the Company
         by the registered Holder hereof in person or by such Holder's attorney
         duly authorized in writing, and only if surrendered at the principal
         executive office of the Company, duly endorsed, or accompanied by a
         proper instrument of transfer satisfactory to the Company in its sole
         discretion; and

         (b) The Company may deem and treat the person in whose name this Note
         is registered as the absolute owner for all purposes whatever and the
         Company shall not be affected by any notice to the contrary.

         13. Successors and Assigns. This Note and the agreements made herein
shall inure to the benefit of and be binding upon the Company, the Holder hereof
and their respective successors and permitted assigns.

         14. General. This Note shall be deemed to be a contract made under the
laws the State of Oklahoma and for all purposes shall be construed in accordance
with the laws of said State, without regard to the conflicts of laws principles
thereof. If any part of this Note is unenforceable, that will not make any other
part unenforceable. The section headings herein are for convenience only and
shall not affect the interpretation of any of the provisions hereof.

         15. Amendment: Modification. This Note may not be amended or modified
except by an agreement in writing signed by the party to be charged.

         16. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by telecopy,
or by registered or certified mail (postage prepaid, return receipt requested)
to the respective parties at the following addresses (or at such other address
for a party as shall be specified by like notice):

                           if to Holder:

                                  at Holder's last known address
                                  as shown on the Register

                           with a copy to:

                           if to the Company:

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                                    FullNet Communications, Inc.
                                    201 Robert S. Kerr Avenue, Suite 210
                                    Oklahoma City, Oklahoma 73102

         All such notice and communications shall be deemed to have been given:
(a) when delivered, if personally delivered, (b) one business day after being
sent if sent by confirmed telecopy, and (c) two business days after being
deposited in the mail, postage prepaid, if by registered or certified mail.

                                              FULLNET COMMUNICATIONS, INC.

                                              By:
                                                   ----------------------------
                                                   Timothy J. Kilkenny,
                                                   President and CEO

         (Corporate Seal)
         ATTEST:

         -----------------------------
         Roger P. Baresel, Secretary

         HOLDER

         -----------------------------

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