Document:

Exhibit 10.3

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the
“Agreement”), dated as of February 3, 2004, is made by and between
InnSuites Hospitality Trust (“Indemnitor” or “Trust”) and each of the following
Officers and Trustees of InnSuites Hospitality Trust:  James F. Wirth, Marc E. Berg, Steven S. Robson,
Stephen A. McConnell, Peter A. Thoma, Anthony B. Waters
(“Indemnitee”).   

 

WITNESSETH:

 

WHEREAS, Indemnitee is an officer
and/or a Trustee and/or a member of a committee of the Board of Indemnitor.

 

WHEREAS, in consideration of
Indemnitee serving as such officer, committee member and/or Trustee, the
Indemnitor has agreed to indemnify the Indemnitee with respect to certain
liabilities resulting from such service (the “Indemnified Obligations”).

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound hereby, Indemnitor agrees as
follows:

 

1.                                       Indemnity.

 

The Trust shall indemnify
Indemnitee against all liabilities and expenses, including amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel
fees, reasonably incurred by him in connection with the defense or disposition
of any action, suit or other proceeding by the Trust or any other person,
whether civil or criminal, in which he may be involved or with which he may be
threatened, while in office or thereafter, by reason of his being or having
been such a Trustee, officer, employee or agent, except in respect of any
matter as to which he shall have been adjudicated to have acted in bad faith or
with willful misconduct or reckless disregard of his duties or gross negligence
or not to have acted in good faith in the reasonable belief that his action was
in the best interests of the Trust; provided, however, that as to any matter
disposed of by a compromise payment by Indemnitee pursuant to a consent decree
or otherwise, no indemnification either for said payment or for any other
expenses shall be provided unless the Trust shall have received a written
opinion from counsel approved by the Trust to the effect that if the foregoing
matters had been adjudicated, they would likely have been adjudicated in favor
of Indemnitee or unless a meeting of the Trustees at which quorum consisting of
Trustees who are not parties to or threatened with such action, suit or other
proceeding shall make such a determination. 
The rights accruing to Indemnitee under this Agreement shall not exclude
any other right to which he may be lawfully entitled; provided, however, that
Indemnitee may satisfy any right of indemnity or reimbursement granted herein
or to which he may be otherwise entitled only out of the Trust property.  The Trust may make advance payments in
connection with

 

 

indemnification under this
Agreement, provided that Indemnitee shall have given a written undertaking to
reimburse the Trust in the event it is subsequently determined that he is not
entitled to such indemnification.  

 

The level of the indemnification
shall be to the full extent of the net equity based on appraised and/or market
value of the Indemnitor. 

 

2.                                       Representations
and Warranties.

 

Indemnitor hereby represents and
warrants to the Indemnitee (which representations and warranties shall survive
the execution and delivery of this Agreement) that Indemnitor has taken all
action required to make this Agreement its valid and binding obligation, and
this Agreement is the valid and binding obligation of the Indemnitor,
enforceable against the Indemnitor in accordance with its terms.

 

3.                                       Term
of Agreement:  Miscellaneous

 

A.            This Agreement shall
continue in force until the date that all Indemnified Obligations have been
paid or discharged.

 

B.            This Agreement shall
be interpreted and the rights and liabilities of the parties hereto determined
in accordance with the laws of the State of Arizona.  

 

C.            This Agreement
contains all the terms and conditions of the agreement between the Indemnitee
and Indemnitor.  The terms and
provisions of this Agreement may not be waived, altered, modified or amended
except in writing duly executed by the party to be charged thereby.

 

D.            Any notice shall be
directed to the parties at the following addresses:

 

	
  If to Indemnitor:

  	
  InnSuites Hospitality Trust 

  
	
   

  	
  1615 E. Northern Avenue

  
	
   

  	
  Suite 102

  
	
   

  	
  Phoenix, Arizona  85020

  
	
   

  	
  Attention:  President

  
	
   

  	
   

  
	
  with a copy to:

  	
  James B. Aronoff, Esq.

  
	
   

  	
  Thompson Hine & Flory LLP

  
	
   

  	
  3900 Key Center

  
	
   

  	
  127 Public Square

  
	
   

  	
  Cleveland, Ohio  44114

  
	
   

  	
   

  
	
  If to the Indemnitee:

  	
  C/O InnSuites Hospitality Trust

  
	
   

  	
   

  
	
  with a copy to:

  	
  James Reynolds, Esq.

  
	
   

  	
  Dillingham Reynolds

  
	
   

  	
  5080 N. 40th
  Street

  
	
   

  	
  Suite 335

  

 

 

	
   

  	
  Phoenix,
  AZ  85018

  

 

E.             None of the parties
to this Agreement shall have the right to assign, transfer, convey, and/or
otherwise sell (or enter into any agreement to do the same), directly or
indirectly, any interest it may have in or under this Agreement without first
having obtained the written consent of the other parties, which consent may be
withheld in such party’s sole and absolute discretion.

 

F.             Neither this
Agreement nor any term hereof may be changed, waived, discharged, or terminated
orally, but only by an instrument in writing signed by the party against whom
the enforcement of the change, waiver, discharge, or termination is sought or,
in the case of a default, by the non-defaulting party or parties.

 

G.            The captions and
article headings included in this Agreement are for convenience only, do not
constitute part of this Agreement, and shall not be considered or referred to
in interpreting the provisions of this Agreement.

 

H.            This Agreement may
be executed in two or more counterparts, each of which shall be deemed to be an
original, but all of which shall constitute one and the same instrument.  The submission of a signature page transmitted
by facsimile (or similar electronic transmission facility) shall be considered
as an “original” signature page for purposes of this Agreement so long as the
original signature page is thereafter transmitted by mail or by other delivery
service and the original signature page is substituted for the facsimile
signature page in the original and duplicate originals of this Agreement.

 

IN WITNESS WHEREOF, the undersigned
has duly executed this Agreement as of the 3rd day of February 2004.

 

 

	
   

  	
  INDEMNITOR:

  
	
   

  	
   

  
	
   

  	
  INNSUITES
  HOSPITALITY TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James
  Wirth

  
	
   

  	
   

  	
  James Wirth,
  President

  

 

 

	
   

  	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  James F. Wirth

  
	
   

  	
   

  	
  James F.
  Wirth

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Marc E. Berg

  
	
   

  	
   

  	
  Marc E.
  Berg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Steven S. Robson

  
	
   

  	
   

  	
  Steven S.
  Robson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Peter A. Thoma

  
	
   

  	
   

  	
  Peter A.
  Thoma

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Stephen A. McConnell

  
	
   

  	
   

  	
  Stephen A.
  McConnell

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Anthony B. Waters

  
	
   

  	
   

  	
  Anthony B.
  Waters

  

 

INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of February 3, 2004, is
made by and between InnSuites Hospitality Trust (“Indemnitor” or “Trust”) and
each of the following Officers and Trustees of InnSuites Hospitality
Trust:  James F. Wirth,
Marc E. Berg, Steven S. Robson, Peter A. Thoma, Stephen A.
McConnell, Anthony B. Waters (“Indemnitee”).

 

4Exhibit
10.6

 

PROMISSORY NOTE

 

	
  $130,582.75

  	
   

  	
  February 2, 2004

  

 

FOR VALUED
RECEIVED, and legally bound hereby, INNSUITES HOSPITALITY TRUST (“Maker”), an
Ohio real estate investment trust, having an office at 1615 East Northern
Avenue, Suite 102, Phoenix, Arizona 85020 hereby promises to pay to Pamela
Wirth Barnhill (“Note Holder”) or order and address as specified below the
principal sum of ONE HUNDRED THIRTY THOUSAND FIVE HUNDRED EIGHTY TWO AND 75/100
DOLLARS ($130,582.75), 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)                              $130,582.75
amortized over 84 months at 7% interest ($1,970.84/month). This Note is
non-recourse secured by 58,259 RRF Limited Partnership Class B units. Monthly
installments of principal and interest to begin on March 2, 2004.

 

(B)                                Payments
to be made payable to:

Pamela
Wirth Barnhill or Rare Earth Financial LLC

InnSuites
Hotel Centre Suite 102

1615
E. Northern Avenue,

Phoenix,
AZ 85020

 

The 58,259 RRF Limited
Partnership Class B units will remain as security for the unpaid balance on the
Note. Payments made under this note shall be subject to any current bank or
mortgage covenants.

 

At the option of
the Note Holder, late charges upon written notice are assessed as follows:

10 days late, $50 penalty

35 days late, $150 penalty

Over 35 days late, Note Holder could declare the note in default and
call the entire amount due.

Should default be declared, units proportionate to unpaid balance will
be returned to Note Holder.

 

Principal and
interest payable in lawful money of the United States.

 

If legal
proceedings are entered into to recover on this Note, the undersigned agree(s)
to pay such sum as the Court may fix as attorney’s fees.

 

The Makers and
endorsers hereof severally waive diligence, demand, presentment for payment and
protest, and consent to the extension or time of payment of this Note without
notice.

 

 

INNSUITES
HOSPITALITY TRUST,

an Ohio real estate
investment trust

 

 

	
   

  	
  By:

  	
  /s/ Marc Berg

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Marc E. Berg

  
	
   

  	
   

  	
   

  	
  Title: Secretary and
  Treasurer

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