Document:

Exhibit
4.2

PROMISSORY NOTE

	
  U.S. $50,000,000 

  	
  Louisville,
  Kentucky, June 23, 2006

  

 

Kentucky Utilities
Company (“KU”), for value received, hereby promises to pay to the order of
FIDELIA Corporation (“FIDELIA”), in lawful money of the United States of
America (in freely transferable U.S. dollars and in same day funds), in
accordance with the method of payment specified in that certain KU Loan
Agreement dated as of June 23, 2006, between FIDELIA and KU (“the
Agreement”), the principal sum of $50,000,000, which amount shall be payable at
such times as provided in the Agreement.

KU
promises also to pay interest on the unpaid principal amount hereof in like
money and in like manner at the rates which shall be determined in accordance
with the provisions of the Agreement, said interest to be payable at the time
provided for in the Agreement. This Note is referred to in the Agreement and is
entitled to the benefits thereof and the security contemplated thereby. This
Note evidences a loan made by FIDELIA, during such time as such loan is being
maintained. This Note is subject to prepayment as specified in the Agreement. In
case KU defaults on the loan, the principal and accrued interest on this Note
may be declared to be due and payable in the manner and with the effect
provided in the Agreement.

KU hereby
waives presentment, demand, protest or notice of any kind in connection with
this Note.

This
Note shall be governed and construed and interpreted in accordance with the
laws of the State of Delaware.

	
  

  	
  Kentucky Utilities Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Daniel K. Arbough

  	
   

  
	
   

  	
   

  	
  Daniel K. Arbough

  
	
   

  	
   

  	
  Director of Corporate Finance & TreasurerExhibit 10.1

FIFTH MODIFICATION AGREEMENT

BY THIS FIFTH
MODIFICATION AGREEMENT, made and entered into as of the 24th day of May, 2006, STAR BUFFET, INC., a
Delaware corporation, whose address is 1312 N. Scottsdale Road, Scottsdale, AZ
85257 (hereinafter called “Borrower”), and M&I MARSHALL &
ILSLEY BANK, a banking corporation organized and existing under the laws of the
State of Wisconsin, whose address is One East Camelback Road, P.O. Box
11856, Phoenix, Arizona 85061-1856 (hereinafter called “Lender”),
confirm and agree as follows:

SECTION 1.
  RECITALS

1.1   Borrower
and Lender entered into a Loan Agreement dated October 28, 2003 (as
modified by the Prior Modifications, defined below, the “Loan Agreement”),
which provided for a revolving line of credit by Lender to Borrower in the
amount of $3,000,000.00 (the “Loan”), all upon the terms and conditions
contained therein.

1.2   The
Loan is evidenced by a Promissory Note (Revolving Note) dated October 28,
2003 executed by Borrower, payable to the order of Lender, in the principal
amount of $3,000,000.00 (as modified by the Prior Modifications, the “Note”).

1.3   Borrower
and Lender have entered into a Modification Agreement, dated October 31,
2004, and a Second Modification Agreement, dated February 1, 2005, a Third
Modification Agreement, dated July 1, 2005, and a Fourth Modification
Agreement, dated January 13, 2006 (the “Prior Modifications”).

1.4   The
Loan Agreement, the Note, the Prior Modifications, this Agreement and all other
documents and instruments evidencing or executed and delivered in connection
with the Loan, together with all modifications and amendments thereto and any
documents required herein, are hereinafter collectively called the “Loan
Documents.”

1.5   Borrower
and Lender desire to modify the Loan and the Loan Documents as set forth
herein.

SECTION 2.
  LOAN AGREEMENT

2.1   The
definition of Termination Date in Section 2.1 of the Loan Agreement is
hereby amended to read as follows:

“Termination Date shall mean June 15,
2007; provided, however, upon the request of  Borrower, such date may be
extended in writing by Lender in its sole and absolute discretion.”

2.2         The last sentence of Section 3.1
of the Loan Agreement is hereby amended to read as follows:

“The ‘Commitment’ shall be the principal sum of
$3,000,000.00.”

2.3         Section 9.8 of the
Loan Agreement is hereby amended to read as follows:

“9.8  Dividends.
Purchase, redeem, retire or otherwise acquire for value any shares of its
capital stock or declare or pay any dividend on, or make any other distribution
with respect to, whether by reduction of capital or otherwise, any shares of
its capital stock, except, provided no Event of Default exists and there exists
no event or condition which with the lapse of time or the giving of notice or both
would result in an Event of Default, (i) in the case of Borrower,
dividends that do not exceed $2,700,000.00 in any fiscal year may be paid, (ii) in
the case of the Subsidiaries, dividends and distributions to Borrower may be
paid or made, and (iii) Borrower may from time to time purchase its
capital stock provided the total amount purchased, when combined with all prior
purchases, does not exceed 250,000 shares, and provided the aggregate purchase
price, when combined with all prior purchases, does not exceed $2,000,000.00.”

2.4         Section 9.13(b) of
the Loan Agreement is hereby amended to read as follows:

 

“(b)  
Adjusted Tangible Net Worth to be less than $18,000,000.00.”

2.5         Section 9.11 of the
Loan Agreement is hereby amended to read as follows:

“9.11   Capital
Expenditures:  Incur, in any fiscal year,
Capital Expenditures in excess of $3,000,000.00 for Borrower and all
Subsidiaries; provided, however, notwithstanding the foregoing, Capital
Expenditures for the fiscal year ending January 31, 2007 may be up to
$8,000,000.00.”

2.6  Notwithstanding any prohibition contained in Section 9
of the Loan Agreement to the contrary, provided there exists no Event of
Default, and no event or condition which, with the lapse of time or the giving
of notice or both, would result in an Event of Default, Borrower and the
Subsidiaries may from time to time finance commercial real estate owned by
Borrower or its Subsidiaries and used by restaurants acquired by Borrower,
provided:  (i) the amount of the
financing cannot exceed $5,000,000.00 in any fiscal year, (ii) the loan to
value ratio for any financing cannot exceed 80%, and (iii) Lender shall
have the right of first refusal to match the terms of any proposed financing.

SECTION 3.
  LOAN FEE

3.1   Upon
the execution of this Agreement, Borrower shall pay to Lender a non-refundable
fully earned loan fee in the amount of $10,000.00.

SECTION 4.
  OTHER MODIFICATIONS, RATIFICATIONS AND AGREEMENTS

4.1   All
references to the Loan Agreement in the other Loan Documents are hereby amended
to refer to the Loan Agreement as hereby amended.

4.2   All
references to any Loan Document in the other Loan Documents are hereby amended
to refer to that Loan Document as hereby amended.

4.3   Borrower
acknowledges that the indebtedness evidenced by the Loan Documents is just and
owing, that the balance thereof is correctly shown in the records of Lender as
of the date hereof, and Borrower agrees to pay the indebtedness evidenced and
secured by the Loan Documents, according to the terms thereof, as herein
modified.

4.4   Borrower
hereby reaffirms to Lender each of the representations, warranties, covenants
and agreements of Borrower set forth in the Loan Documents, with the same force
and effect as if each were separately stated herein and made as of the date
hereof.

4.5   All
terms, conditions and provisions of the Loan Documents are continued in full
force and effect and shall remain unaffected and unchanged except as
specifically amended hereby. Borrower hereby ratifies, reaffirms, acknowledges,
and agrees that the Loan Documents, as amended hereby, represent valid,
enforceable and collectible obligations of Borrower, and that there are no
existing claims, defenses, personal or otherwise, or rights of setoff
whatsoever with respect to any of these documents or instruments. Borrower
further acknowledges and represents that no event has occurred and no condition
exists that, after notice or lapse of time, or both, would constitute a default
under this Agreement or any Loan Document.

4.6   The
Loan Documents, as amended hereby, are hereby ratified and reaffirmed by
Borrower, and Borrower specifically acknowledges the validity and
enforceability thereof.

SECTION 5.
  GENERAL

5.1   The
modifications contained herein shall not be binding upon Lender until Lender
shall have received all of the following:

(a)   An original of this Agreement
fully executed by the Borrower;

 

(b)   If Borrower is a corporation,
partnership or trust, such resolutions or authorizations and such other
documents as Lender may require relating to the existence and good standing of
that corporation, partnership or trust, and the authority of any person
executing this Agreement or other documents on behalf of that corporation,
partnership or trust.

(c)   Receipt by Lender of the loan fee
required by this Agreement.

5.2   Borrower
shall execute and deliver such additional documents and do such other acts as
Lender may reasonably require to fully implement the intent of this Agreement.

5.3   Borrower
shall pay all costs and expenses, including, but not limited to, attorneys’
fees incurred by Lender in connection herewith, whether or not all of the
conditions described in Paragraph 4.1 above are satisfied. Lender, at its
option, but without any obligation to do so, may advance funds to pay any such
costs and expenses that are the obligation of the Borrower, and all such funds
advanced shall bear interest at the highest rate provided in the Note, shall be
due and payable upon demand and shall be secured by all of the Loan Documents.

5.4   Notwithstanding
anything to the contrary contained herein or in any other instrument executed
by Borrower or Lender, or in any other action or conduct undertaken by Borrower
or Lender on or before the date hereof, the agreements, covenants and
provisions contained herein shall constitute the only evidence of Lender’s
consent to modify the terms and provisions of the Loan Documents. Accordingly,
no express or implied consent to any further modifications involving any of the
matters set forth in this Agreement or otherwise shall be inferred or implied
by Lender’s execution of this Agreement. Further, Lender’s execution of this
Agreement shall not constitute a waiver (either express or implied) of the
requirement that any further modification of the Loan or of the Loan Document
shall require the express written approval of Lender; no such approval (either
express or implied) has been given as of the date hereof.

5.5   Notwithstanding
this or any prior forbearance, actual or implied, of any nature by Lender, time
is hereby declared to be of the essence hereof, of the Loan, of all Loan
Documents, and Lender requires, and Borrower agrees to, strict performance of
each and every covenant, condition, provision and agreement hereof and of all
Loan Documents.

5.6   This
Agreement shall be binding upon, and shall inure to the benefit of, the parties
hereto and their heirs, personal representatives, successors and assigns.

5.7   This
Agreement is made for the sole protection and benefit of the parties hereto,
and no other person or entity shall have any right of action hereon.

5.8   This
Agreement shall be governed by and construed according to the laws of the State
of Arizona.

IN WITNESS
WHEREOF, these presents are executed as of the date indicated above.

 

	
  

  	
   

  	
   

  	
   

  	
  STAR BUFFET, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/  ROBERT E. WHEATON

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Robert E. Wheaton

  
	
   

  	
   

  	
  Title:

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  M&I MARSHALL & ILSLEY BANK, a banking
  corporation organized and existing under the laws of the State of Wisconsin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/  GREGORY C. RECKER

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Gregory C.Recker

  
	
   

  	
   

  	
  Title:

  	
   

  	
  SVP

  

 

 

 

	
  

  	
   

  	
  By:

  	
   

  	
  /s/  WILLIAM D. CRISP

  
	
   

  	
   

  	
  Name:

  	
   

  	
  William D. Crisp

  
	
   

  	
   

  	
  Title:

  	
   

  	
  SVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LENDER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]