Document:

ASSIGNMENT OF NOTE

ASSIGNMENT OF NOTE

THIS ASSIGNMENT is entered into effective this 18th day of March, 2008 by and between Astraea Investment Management, LP., ("Assignor") and Global Casinos, Inc., a Utah corporation ("Assignee").

WITNESSETH

WHEREAS, Casinos U.S.A. Inc executed a Promissory Note originally payable to Assignee in the principal amount of Two Hundred Forty-Nine Thousand Four Hundred Eighteen and 48/100 Dollars ($249,418.48)(“the Note”); and

WHEREAS, the Note is secured by a Deed of Trust dated January 17, 1997 and recorded April 1, 1997 in Book 617 at Page 464 in the real property records of Gilper County, Colorado, reference to which is here made; and

WHEREAS, the Note and the interests of Assignee in the above-referenced Deed of Trust were assigned to Assignor by an “Assignment of Promissory Note and Deed of Trust” made July 28, 1997; and

WHEREAS, the terms of the Note were amended by an Agreement and Amendment to Promissory Note effective September 17, 2002; and 

WHEREAS, Assignee desires to now purchase the Note and Assignor desires to sell all of its right, title and interest in and to the Note to Assignee. 

NOW THEREFORE, in consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.

Consideration for Purchase of Note.

Concurrently with the execution hereof, Assignee hereby pays to Assignor the sum of $236,685.36 which represents the total amount, both principal and interest, owing under the Note.

2.

Assignment.   As of the effective date referenced above, Assignor hereby assigns, transfers and conveys to Assignee any and all of Assignor's right, title and interest in and to the Note, and the right to collect all sums due thereunder.  Hereafter, Assignor disclaims any further interest in the Note.  In conjunction with the assignment, Assignor represents and warrants that:

 (i)

Assigner is the owner and holder of the Note; and 

(ii)

Assignor has the right, power and authority to execute this Assignment; and

(iii)

Except as reflected above, the Note has not been amended or modified; and 

(iv)

That no act or omission on the part of the Maker of the Note, Casinos U.S.A. Inc., has occurred, which would constitute a default under the Note.  

3.

Acceptance and Indemnification.  Assignee hereby accepts the foregoing assignment and transfer and promises to observe and perform all services and obligations required under the Note accruing on or after the Assignment Date or otherwise attributable to the period commencing on said date and continuing thereafter for so long as the Note remains in full force and effect.  Assignee shall indemnify, defend and hold harmless Assignor, its affiliates, agents and assigns, from any and all claims, demands, actions, causes of action, suits, proceedings, damages, liabilities, costs and expenses of every nature whatsoever, including attorneys' fees, which arise from or relate to the Note on or after the Assignment Date.

4.

Assignee’s Subordination of Rights.

The Deed of Trust referenced above also secures a Promissory Note dated January 17, 1997 payable to Assigner in the original principal amount of Seven Hundred Eighty Three Thousand One Hundred Three  and 56/100 Dollars ($783,103.56) (“Astraea Secured Note”)  Assignor and Assignee hereby agree that the rights of Assignee under the referenced Deed of Trust are subordinated to Assignor’s rights under the Deed of Trust as it relates to the Astraea Secured Note.  More specifically, the parties agree that Assignor has the first right to obtain collection of all monies due and owing under the Astraea Secured Note against the properties covered by the Deed of Trust or otherwise, before the collateral set forth in the Deed of Trust (or proceeds therefrom) is applied to the Note being assigned hereunder.

The Note may also have been secured by a Security Agreement effective September 17, 2002 between Casinos U.S.A. Inc., as debtor and Astraea Investment Management L.P. as the secured party.  The parties also agree that any rights of Assignee under the Security Agreement are subordinate to the rights of Assignor under such agreement.  In other words, Assignor is entitled to collect all Indebtedness due it from the Collateral provided in the Security Agreement before such Collateral can be applied to the Note being assigned hereunder. 

5.

Binding Effect.  This Agreement shall be binding upon the parties hereto, their successors and assigns.

2

IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written.

ASSIGNOR:

ASTRAEA INVESTMENT MANAGEMENT, LP.

By: 

/s/ Bruce Leadbetter

Its:  General Partner

ASSIGNEE:

GLOBAL CASINOS, INC.,

a Utah corporation,

By: 

/s/ Clifford L. Neuman

Its:  President

3Converted by EDGARwiz

ASSIGNMENT AND ASSUMPTION OF AGREEMENT

FOR VALUE RECEIVED, DOC HOLLIDAY CASINO LLC, DBA DOC HOLLIDAY CASINO (Assignor), hereby assigns to DOC HOLLIDAY CASINO II, LLC DBA DOC HOLLIDAY CASINO II whose mailing address is P O Box 639, Central City, CO  80427 (“Assignee”), the entire Interest of Assignor under that certain Sales Order Contract referencing Sales Order No. 216975 (“77012506”) (“Prior Agreement”), which is attached hereto and incorporated herein by reference, between Assignor and IGT whose address is 9295 Prototype Dr., Reno, NV  89511 (“IGT”).

WHEREAS, the parties hereto wish to confirm the assignment and assumption and further clarify their rights and obligations thereunder;

NOW, THEREFORE, IT IS AGREED, that:

1.

Assignee hereby agrees to assume all of the obligations and duties of Assignor under the terms and conditions of Sales Order Contract # 77012506 and to sign appropriate documents to perfect IGT’s security interest in the equipment.

2.

IGT hereby acknowledges and consents to the foregoing Assignment and Assumption.

3.

As of March 18, 2008, the outstanding principal balance due and owing IGT under Sales Order Contract # 77012506 is One Hundred Eighteen Thousand Eight Hundred Seventy Seven and 72/100 Dollars ($118,877.72) (the “Principal Balance”) and the outstanding interest balance accruing at the rate of eight and one half percent (8.5%) is Nine Thousand One Hundred Ninety Three and 86/100 Dollars ($9,193.86) (the “Interest Balance”).

4.

The Principal Balance and Interest Balance will be combined for a balance of One Hundred Twenty Eight Thousand Seventy One and 58/100 Dollars ($128,071.58) (the “New Principal Balance”) and shall be paid in eighteen (18) consecutive monthly principal and interest installments of Seven Thousand Six Hundred Three and 45/100 Dollars ($7,603.45) commencing April 18, 2008, and continuing on the same day of each month thereafter.  A final consecutive payment of all outstanding principal and interest shall be immediately due and payable September 18, 2009.

5.

Interest will accrue on the outstanding principal balance at a fixed rate of eight and one half percent (8.5%) per annum.  Should this contract go into default, then the terms and conditions under paragraph F of the Prior Agreement will prevail.

6.

Except as shall be inconsistent with the modification set forth herein the terms and conditions of the Prior Agreement shall remain in full force and effect, and are hereby ratified and incorporated herein by reference.

ASSIGNOR

ASSIGNEE

IGT

Doc Holliday Casino LLC

Doc Holliday Casino II, LLC

Doc Holliday Casino

Doc Holliday Casino II

By:  

/s/ Fedele V. Scutti

By: 

Clifford L. Neuman

By:

Fedele V. Scutti

Clifford L. Neuman

Managing Member

President of Global Casinos, Inc.,

Manager

March 18, 2008

March 18, 2008Converted by EDGARwiz

SECOND AMENDMENT TO PROMISSORY NOTE

THIS SECOND AMENDMENT TO PROMISSORY NOTE is effective the 18th day of March 2008 by and between Casinos U.S.A. Inc. (“Borrower”) and Astraea Investment Management, L.P. (“Note Holder”).

Recitals

1.

Borrower executed a Promissory Note dated January 17, 1997 in the original principal amount of Seven Hundred Eighty Three Thousand One Hundred Three and 56/100 Dollars ($783,103.56).

2.

The Astraea Secured Note is secured by a Deed of Trust dated January 17, 1997 and recorded April 1, 1997 in Book 617 at Page 464 in the real property records of Gilper County, Colorado.

3.

The Borrower and Note Holder entered into an Agreement and Amendment to Promissory Note effective September 17, 2002.

4.

The parties hereto, as part of a series of transactions requested by Borrower’s parent, Global Casinos, Inc. hereby agree to further amend the Astraea Secured Note without affecting the validity, enforceability or priority of the Deed of Trust or any other security documents which secure the Astraea Secured Note.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.

The interest rate in paragraph 1 of the Astraea Secured Note is changed and modified, as of March 17, 2008 from 7% to 12% and the monthly payments commencing with the payment due March 17, 2008 shall be changed and modified from $5,109.57 to $7,645.82, and the maturity date of October 17, 2009 shall be changed to September 17, 2009.

2.

The following provision shall be added to paragraph 1 of the Astraea Secured Note:

“In the event this Note is not paid in fully on or before the maturity date, the interest rate on the unpaid principal balance after the maturity date shall be twenty four percent (24%) compounded annually, or the maximum amount of interest allowed to be charged by law, whichever is lesser.”

3.

Except as otherwise amended hereby, the Astraea Secured Note remains valid and enforceable in accordance with its terms and provisions.

IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written.

BORROWER:

CASINOS U.S.A., INC.

By: 

/s/ Doug James

Its:

NOTE HOLDER:

ASTRAEA INVESTMENT MANAGEMENT, L.P.

By: 

/s/ Bruce Leadbetter

Its: 

General Partner

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