Document:

Exhibit 10.16

 

PROMISSORY NOTE

 

	
  $110,000.00

  	
   

  	
  Phoenix, Arizona

  
	
   

  	
   

  	
  December 26, 2002

  
	
   

  	
   

  	
  Note Doc. 122602122

  

 

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 Fort Worth/Dallas Suite Hospitality Partnership (“Payee”), an Arizona
partnership, 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 TEN THOUSAND AND 00/100 DOLLARS
($110,000.00), 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 February 1, 2003, one
payment of accrued but unpaid interest on the outstanding principal balance
hereunder; and 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”).

 

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 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 waiver 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 one-half
percent (.5%) of such overdue monthly installment, which shall become due to
Payee for the additional cost incurred by Payee by reason of such nonpayment.
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;

 

(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.

 

(g)                                 Maker and Payee agree
that no event of default has occurred by effect of (a) through (f) above
if the event is a result of law or violates any other agreements that Maker and
Payee as President of InnSuites Hospitality Trust, General Partner of RRF
Limited Partnership has agreed.

 

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.

 

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 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.

 

	
   

  	
  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<PAGE>

EX 4.0

SECURED PROMISSORY NOTE

U.S. ($1,120,000)                           Beverly Hills, California
                                            July 16, 2002

FOR VALUE RECEIVED, NUWAY ENERGY INC, a Delaware corporation (hereinafter
referred to as "Obligor"), promises to pay to {Summitt Ventures Inc}
(hereinafter referred to as "Holder"), the principal sum of One Million One
Hundred and Twenty Thousand Dollars ($1,120,000)}, together with interest, which
shall accrue at a rate of 10% per annum from the date hereof, on the principal
sum of this Note from time to time outstanding. This Note shall be payable on or
before the expiration of one year from the date of execution of this note. The
note shall pay interest monthly with the principle all due at the end of one
year, June 15, 2003 (the "Maturity Date"), on which date all accrued and unpaid
interest and the entire balance of the principal then outstanding shall be due
and payable. It is soley within the discretion of Holder to receive all or
partial payments during the course of the note period. Any payments received
will be credited against the outstanding balance which is due.

         All payments on this Note shall be made in lawful money of the United
States of America, and all notices by Obligor to the Holder shall be sent by
first class mail and if so sent shall be deemed received by Holder seventy-two
(72) hours after being deposited in the U.S. mails provided that it is mailed by
certified mail, return receipt requested, and postage prepaid and properly
addressed to Holder, or at such other place, in the United States, as the Holder
shall designate in writing to the Obligor from time to time hereafter.
Furthermore, It is agreed by the parties to this note, that in the event that
Holder wishes to offset any or all of the obligations which are attached to this
note to other third parties, entities which are owned or controlled by Holder,
or any law firm for collection, that this note in whole or in part is fully
assignable without the consent of the Obligor. In addition, in the event that
sums are not available to fully pay the interest, or note in full partial
payments will be accepted. Any partial payments will be offset against the
balance due on the note.

         This Note is secured by all of the assets of the obligor (the "Security
Agreement"), representing a first priority security interest (the "Security
Interest") in the assets of the obligor between Obligor and Holder dated as of
the date hereof (collectively, the Security Agreement are referred to herein as
the "SECURITY DOCUMENTS").

PARI PASSU STATUS. The payment of principal of and interest on this Note shall
rank pari passu with the other Secured Notes. All payment on this Note and the
other Secured Notes shall be made on a pro rata basis as applied to the
principal and interest under this Note and the other Secured Notes and no such
note shall be paid in full at any time prior to the payment in full of this Note
or any of the other Secured Notes.

 NATURE OF NOTE; USURY. The Obligor acknowledges that this Note evidences
purchase money indebtedness arising out of a business transaction. In no event
and upon no contingency shall Obligor be required to pay interest on this Note
in excess of the maximum rate allowed by law. It is the intention of the parties
hereto to conform strictly to the usury laws now in force that would apply to

<PAGE>

this Note. Accordingly, notwithstanding anything to the contrary in this Note or
any other agreement entered into in connection herewith, it is agreed that all
charges that constitute interest that are contracted for, chargeable or
receivable under this Note or otherwise in connection with this transaction
shall, under no circumstances, exceed the maximum amount of interest permitted
by law, and any excess shall be deemed a mistake in calculation and canceled
automatically and, if theretofore paid, shall be, at the Holder's election,
either refunded to Obligor or credited on the unpaid principal of this Note.

PREPAYMENTS AND APPLICATION OF PAYMENTS. This Note July be prepaid in whole or
in part without notice, premium or penalty. Partial prepayments shall be applied
to the installment payments of principal and interest hereunder in the
chronological order in which they come due until this Note is paid in full. All
monthly installments of principal and interest paid hereunder, and any
prepayments made hereunder, shall be credited first to accrued and unpaid
interest payable on the principal balance of this Note from time to time
outstanding and then to the reduction of principal.

EVENTS OF DEFAULT. Upon the occurrence and during the continuance of an Event of
Default (as hereinafter defined), the Holders of this Note shall be entitled, by
written notice to the Obligor, to declare this Note to be, and upon such
declaration this Note shall be and become immediately due and payable, in
addition to any other rights or remedies they July have under the laws of the
State of Nevada. The occurrence of any of the following events shall constitute
an "Event of Default":

                  (a) PAYMENT OF NOTE. Obligor shall fail to pay any principal
of or interest owing on this Note within ten (10) days after the due date of
such payment.

                  (b) BREACH OF COVENANTS. Obligor shall fail or neglect to
perform, keep or observe any covenant or obligation of Obligor contained in this
Note (other than failure to pay principal of or interest on this Note which is
dealt with specifically in Paragraph 5(a) above), the Security Documents, the
Stock Purchase Agreement or the Loan Agreement and the breach of any such
covenant or obligation is not cured within forty-five (45) days after Obligor's
receipt of notice of such breach from Holder.

                  (c) INSOLVENCY, ETC. Obligor shall suffer the appointment of a
receiver, trustee, custodian or similar fiduciary for all or substantially all
of its assets, or any petition for an order for relief shall be filed by or
against Obligor under any applicable bankruptcy law, and such appointment or
proceeding, as the case July be, is not controverted within thirty (30) days, or
is not dismissed within sixty (60) days, after such appointment or the
commencement of such proceeding (as the case July be).

COSTS AND EXPENSES OF COLLECTION. If this Note is collected by or through an
attorney at law, Obligor shall pay all of the Holder's reasonably incurred costs
of collection, including, without limitation, Holder's reasonable attorneys'
fees.

WAIVERS BY OBLIGOR. Except as otherwise provided elsewhere in this Note, Obligor
waives presentment for payment, protest, notice of dishonor and protest and
consents to any extensions of time with respect to any payment due under this
Note, and to the addition or release of any party. No waiver of any payment
under this Note shall operate as a waiver of any other payment.

<PAGE>

EFFECT OF DELAY OR WAIVER BY HOLDER. No delay or failure of the Holder of this
Note in the exercise of any rights or remedy provided for hereunder shall be
deemed a waiver of any other right or remedy which the Holder July have.

NOTICES TO OBLIGOR. Any notice or demand to the Obligor shall be by First Class
Mail, addressed to Obligor, Med Wireless Inc Attention: President, or such other
address as July be designated in writing by Obligor to the Holder and shall be
deemed to have been received seventy-two (72) hours after its deposit,
postage-prepaid, with the United States Postal Service.

         GOVERNING LAW/HEADINGS. Obligor and Holder have agreed that,
notwithstanding any laws to the contrary of any jurisdiction in which this Note
is sought to be construed or enforced, this Note shall be governed by, construed
according to and enforced under the internal laws of the state of Nevada,
without regard to its choice of laws, to the same extent as if this Note had
been made, the obligations of the Obligor hereunder were to be performed, and
Holder received the payments due it hereunder, entirely in the state of Nevada.
The Paragraph headings in this Note are for convenience of reference only and
shall not be considered in, nor shall they affect, the interpretation or
application of any of the provisions of this Note.

OBLIGOR:

NUWAY ENERGY, INC.
a Delaware Corporation

/s/ Dennis Calvert
-------------------------
By:

Accepted and Agreed

<PAGE>

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