Document:

DRAFT February 24, 2003

ALLONGE AND MODIFICATION AGREEMENT

This ALLONGE AND MODIFICATION AGREEMENT ("Modification") is entered into this 25th day of March, 2010, by and among GARY L. SHUPP, P.C., for the benefit of those persons identified on Exhibit A attached hereto, or order ("Lender"); and CASINOS USA, INC. a Colorado corporation ("Borrower"); 

RECITALS

A.

Borrower executed and delivered to Lender its promissory note in the original principal amount of $237,748.91 dated as of January 17, 1997 (the “Note”).

B.

The obligations of Borrower under the Note are secured by a Deed of Trust encumbering certain real property owned by Borrower legally described as Lot 5 and the Easterly 30 feet of Lot 4 laying perpendicular to Lot 5, Block 40, City of Black Hawk, State of Colorado (the “ Deed of Trust” and “Property”,  respectively).  

C.

The Deed of Trust is junior to (i) a deed of trust granted by Borrower to Astraea Investment Management,  LP dated as of January 17, 1997 (the “Senior Deed of Trust”) securing the repayment of a promissory note in the original principal amount of $783,103.56 (the “Senior Note”) and (ii) a second deed of trust granted by Borrower to Lisa Montrose, security the repayment of a promissory note in the original principal amount of $761,202.21 dated as of January 17, 1997 (the “Second Note”)..

D.

The Senior Note and Deed of Trust have been assigned to Global Casinos, Inc. and are held by Global Casinos, Inc.   The Second Note and Deed of Trust have been modified pursuant to that certain Allonge and Modification Agreement dated December 30, 2009.

E.

The Note has currently matured and is now due and payable.

F.

The current outstanding balance of the Note is $176,540.41 (“Current Outstanding Balance”)

G.

Borrower has requested, and Lender is willing to agree to, an extension of the maturity date of the Note with modifications to its terms and subject to the conditions hereinbelow set forth.

AGREEMENT

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

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1.

Acknowledgement of Recitals.  Borrower and Lender acknowledge and agree that the foregoing Recitals are true and correct statements of fact and that as of the date of this Modification, they are indebted to Lender for the Current Outstanding Balance as set forth in the foregoing Recitals  

2.

Modification of Loan.  Effective as of the date of this Modification, the terms of the Note shall be modified as follows:

2.1

Maturity Date.  The maturity date of the Loan shall be extended to April 1, 2013  ("Maturity Date"). .

2.2

Interest Rate.  The unpaid principal balance of the Loan shall accrue interest at  the fixed rate of eight percent (8%) per annum, accruing from the date hereof until the Note is paid in full.

2.3

Payments.  Monthly payments of $1,910.97, principal and interest, shall  be due and payable on or before the first day of each month commencing April 1, 2010 and continuing on or before the first day of each month thereafter until the Maturity Date, when all outstanding principal and accrued and unpaid interest shall be paid in full.  The payments are based upon a twelve year amortization.

2.4

Collateral.   Borrower hereby acknowledges and agrees that the Property and Deed of Trust granted to Lender as security for the Loan shall continue to secure the Loan in the same priority position and is not changed or altered in any way by this Modification.      

3.

Future Defaults. Borrower acknowledges that Lender has agreed to waive the existing defaults on the Loan; however, Borrower acknowledges and agrees that such waiver does not extend to any future default under the Loan, including, without limitation, in the event additional debt is entered into by Borrower without the prior consent of Lender.

4.

Authority to Enter into this Modification.  Borrower hereby states that it has the requisite authority to enter into this Modification and hereby indemnifies Lender from any and all claims or losses which Lender may incur as a result of any party lacking the necessary requisite authority to enter into this Modification.  All parties agree to execute any additional documentation or provide any additional documentation as may be reasonably requested by Lender to properly and further effectuate the terms of this Modification.

5.

Governing Law.  This Modification shall be governed by the laws of the State of Colorado.  The prevailing party in any litigation hereunder shall be entitled to recover reasonable legal fees and costs in addition to all other damages and remedies at law.

6.

No Representations Language/No Endorsement of Success or Feasibility.  Borrower and Guarantors understand and agree that Lender's consent to this Modification is not to 

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be construed by them or any other party as an endorsement or acknowledgment by Lender, either explicitly or implicitly, of the feasibility or likelihood of success of this Modification.  Further, Lender makes no representations regarding the tax consequences of this transaction.  

7.

Successors Bound/Integration.  The provisions of this Modification shall bind the respective heirs, executors, personal representatives, administrators, successors and assigns of the parties hereto.  This Modification incorporates all prior discussions and negotiations between the parties and may not be amended except in writing duly acknowledged by the parties.

8.

Severability.  The invalidity or unenforceability of any term or provision of this Modification shall not affect the validity or enforceability of the remaining terms and provisions hereof and each provision of this Modification shall be valid and enforceable to the fullest extent permitted by law.  

9.

Counterparts.  This Modification may be separately executed, each of which shall be considered an original, and when taken together shall constitute the entire agreement between the parties. 

IN WITNESS WHEREOF, the undersigned have caused this Modification to be executed as of the day and year first above written.

CASINOS USA, INC.,  a Colorado Corporation

By:  /s/ Doug James

Doug James, President

GARY L. SHUPP, P.C., as agent for the benefit

of those persons identified on Exhibit A (intentionally omitted) attached hereto

By:  /s/ Gary L. Shupp

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STATE OF COLORADO

)

)

COUNTY OF GILPIN

)

The foregoing instrument was acknowledged before me this 22nd day of March, 2010 by Doug James, President of Casinos USA, Inc.  

Witness my hand and official seal.

[SEAL]

/s/ Mary F. Barker

Notary Public

My commission expires: 08-06-2012

STATE OF COLORADO

)

)

COUNTY OF EL PASO

)

The foregoing instrument was acknowledged before me this 25th day of March, 2010, by Gary L. Shupp, President of Gary L. Shupp, P.C., a Colorado professional corporation. 

Witness my hand and official seal.

[SEAL]

  /s/ Teresa Kay Vahsholtz

Notary Public

My commission expires:  09-01-2013

4ex102.htm

Exhibit 10.2

FOUNDERS SUBSCRIPTION AGREEMENT

HYPERSOLAR, INC.

The undersigned hereby subscribes for _____________ (the “Shares”) of HyperSolar, Inc.’s (the “Company”) common stock at a price of $0.001, representing a total purchase price of $______ (the “Subscription Price”).

The undersigned agrees to pay the aggregate Subscription Price for the Shares being purchased hereunder.  The entire purchase price is due and payable upon the submission of this Subscription Agreement and shall be payable by wire transfer or check.

 

The Company has the right to reject this subscription in whole or in part.

 

The undersigned acknowledges that the Shares being purchased hereunder and its component securities will not be registered under the Securities Act of 1933 (the "Act"), or the securities laws of any state (the “State Acts”), in reliance upon an exemption from the registration requirements of the Act and the State Acts; that absent an exemption from registration contained in the Act and the State Acts, the Shares, would require registration; and that the Company's reliance upon such exemptions is based, in material part, upon the undersigned's representations, warranties, and agreements contained in this Subscription Agreement (the "Subscription Documents").

1.           The undersigned represents, warrants, and agrees as follows:

a.           The undersigned agrees that this Subscription Agreement is and shall be irrevocable.

b.           The undersigned is involved with the Company and understands its business operations (the “Business”). The undersigned has been given the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of this Offering and the Business and to obtain such additional information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of same as the undersigned reasonably desires in order to evaluate the investment.  The undersigned understands the Business, and the undersigned has had the opportunity to discuss any questions regarding the Business with his counsel or other advisor.  The undersigned has received no representations or warranties from the Company and its Business, its employees, agents or attorneys, in making this investment decision. The undersigned does not desire to receive any further information.

c.           The undersigned is aware that the purchase of the Shares is a speculative investment involving a high degree of risk, that there is no guarantee that the undersigned will realize any gain from this investment, and that the undersigned could lose the total amount of this investment.

d.           The undersigned understands that no federal or state agency has made any finding or determination regarding the fairness of the Shares for investment, or any recommendation or endorsement of the Share.

 

  

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e.           The undersigned is purchasing the Shares for the undersigned's own account, with the intention of holding the Shares with no present intention of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly, in a distribution of the Shares, and shall not make any sale, transfer, or pledge thereof without registration under the Act and any applicable securities laws of any state or unless an exemption from registration is available under those laws.

f.           The undersigned represents that if an individual, he has adequate means of providing for his or her current needs and personal and family contingencies and has no need for liquidity in this investment in the Shares.  The undersigned has no reason to anticipate any material change in his or her personal financial condition for the foreseeable future.

g.           The undersigned is financially able to bear the economic risk of this investment, including the ability to hold the Shares indefinitely, or to afford a complete loss of his investment in the Shares.

h.           The undersigned represents that the undersigned's overall commitment to investments which are not readily marketable is not disproportionate to the undersigned's net worth, and the undersigned's investment in the Shares will not cause such overall commitment to become excessive.  The undersigned understands that the statutory basis on which the Shares are being sold to the undersigned and others would not be available if the undersigned's present intention were to hold the Shares for a fixed period or until the occurrence of a certain event.  The undersigned realizes that in the view of the Securities and Exchange Commission, a purchase now with a present intent to resell by reason of a foreseeable specific contingency or any anticipated change in the market value, or in the condition of the Company, or that of the industry in which the business of the Company is engaged or in connection with a contemplated liquidation, or settlement of any loan obtained by the undersigned for the acquisition of the Shares, and for which such Shares may be pledged as security or as donations to religious or charitable institutions for the purpose of securing a deduction on an income tax return, would, in fact, represent a purchase with an intent inconsistent with the undersigned's representations to the Company, and the Commission would then regard such sale as a sale for which the exemption from registration is not available.  The undersigned will not pledge, transfer or assign this Subscription Agreement.

i.           The undersigned represents that the funds provided for this investment are either separate property of the undersigned, community property over which the undersigned has the right of control, or are otherwise funds as to which the undersigned has the sole right of management.  The undersigned is purchasing the Shares with the funds of the undersigned and not with the funds of any other person, firm, or entity and is acquiring the Shares for the undersigned's account.  No person other than the undersigned has any beneficial interest in the Shares being purchased hereunder.

j.           The address shown under the undersigned's signature at the end of this Subscription Agreement is the undersigned's principal residence if he or she is an individual, or its principal business address if it is a corporation or other entity.

l.           The undersigned has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Shares.

m.           The undersigned acknowledges that the certificates for the Shares which the undersigned will receive will contain a legend substantially as follows:

	
  

	
THE SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").  THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, TRANSFERRED, MADE SUBJECT TO A SECURITY INTEREST, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS AND UNTIL REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AS AMENDED, OR EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.

	 

 

The undersigned further acknowledges that a stop transfer order will be placed upon the certificates for the securities in accordance with the Act.  The undersigned further acknowledges that the Company is under no obligation to aid the undersigned in obtaining any exemption from registration requirements.

  

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n.           The undersigned understands that, the Company intends to offer additional shares of common stock in one or more private offerings (the Private Offerings”).  As inducement to the purchasers of the Private Offerings to purchase common stock, the undersigned hereby agrees that from the date hereof and until three (3) years after any of the following events: (i) a public market for the Company’s common stock has been established, or (ii) the Shares acquired herein are exchanged for shares of a publicly traded company as a result of a merger or acquisition of the Company (collective the “Lock-up Term”), the Undersigned will not sell or offer to sell any unregistered shares of the Company’s common stock which the Undersigned owns as may be permitted pursuant to Rule 144 promulgated under the Act.

In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to remove restrictive legends from any share certificates held by the undersigned if such removal would constitute a violation or breach of this Agreement.  An appropriate restrictive legend describing the Lock-up Term and this Agreement may be affixed to the certificate representing the Shares.

2.           The undersigned expressly acknowledges and agrees that the Company is relying upon the undersigned's representations contained in the Subscription Documents.

3.           The Company has been duly and validly incorporated and is validly existing and in good standing as a corporation under the laws of the State of Nevada.  The Company represents that it has all requisite power and authority, and all necessary authorizations, approvals and orders required as of the date hereof to enter into this Subscription Agreement and to be bound by the provisions and conditions hereof.

4.           Except as otherwise specifically provided for hereunder, no party shall be deemed to have waived any of his or its rights hereunder or under any other agreement, instrument or papers signed by any of them with respect to the subject matter hereof unless such waiver is in writing and signed by the party waiving said right.  Except as otherwise specifically provided for hereunder, no delay or omission by any party in exercising any right with respect to the subject matter hereof shall operate as a waiver of such right or of any such other right.  A waiver on any one occasion with respect to the subject matter hereof shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.  All rights and remedies with respect to the subject matter hereof, whether evidenced hereby or by any other agreement, instrument, or paper, will be cumulative, and may be exercised separately or concurrently.

5.           The parties have not made any representations or warranties with respect to the subject matter hereof not set forth herein, and this Subscription Agreement, together with any instruments or documents executed simultaneously herewith in connection with this offering, constitutes the entire agreement between them with respect to the subject matter hereof.  All understandings and agreements heretofore had between the parties with respect to the subject matter hereof are merged in this Subscription Agreement and any such instruments and documents, which alone fully and completely expresses their agreement.

6.           This Subscription Agreement may not be changed, modified, extended, terminated or discharged orally, but only by an agreement in writing, which is signed by all of the parties to this Subscription Agreement.

7.           The parties agree to execute any and all such other further instruments and documents, and to take any and all such further actions reasonably required to effectuate this Subscription Agreement and the intent and purposes hereof.

8.           This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of California and the undersigned hereby consents to the jurisdiction of the courts of the State of California and the United States District Courts situated therein.

 

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EXECUTION BY SUBSCRIBER

 

 

	shares x $0.001 per share = $
	
 

 

	Exact Name in Which Title is to be Held
	
 

 

	(Signature)
	
 

 

	Name and Title (if applicable)
	
 

 

	Address:  Number and Street
	
 

 

	City                                                      State                                           Zip Code
	
 

 

	Telephone
	
 

 

	Email
	
 

 

	Social Security Number or Tax Identification Number
	 

 

Accepted this 10th day of April 2009 on behalf of HyperSolar, Inc.

 

	 	 	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

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