Document:

PROMISSORY NOTE

$177,380                       Salt Lake City, Utah            December 31, 1999

         FOR VALUE RECEIVED, the undersigned, AMERICAN FINANCIAL HOLDING, INC.
("Maker"), a Delaware corporation whose mailing address and principal office is
914 Rio Virgin Dr., St. George, Utah 84790, hereby promises to pay to TAMBORA
FINANCIAL CORPORATION ("Payee"), a Utah Corporation whose mailing address and
principal office is 914 Rio Virgin Dr., St. George, Utah 84790, the principal
sum of One Hundred and Seventy-Seven Thousand Three Hundred Eighty and No/100
Dollars ($177,380), in lawful money of the United States of America for payment
of private debts, together with interest (calculated on the basis of the actual
number of days elapsed but computed as if each year consisted of 360 days) on
the unpaid principal balance at a rate of eighteen percent (18%) per annum.

         1. Payments. This Note shall be due and payable from the first net
proceeds received by Maker from the sale of Maker's common stock, but in any
event no later than December 31, 2002.

         2. Time and Place of Payment. If any payment falls due on a day which
is considered a legal holiday in the state of Utah, Maker shall be entitled to
delay such payment until the next succeeding regular business day, but interest
shall continue to accrue until the payment is in fact made. Each payment or
prepayment hereon must be paid at the office of Payee set forth above, or at
such other place as the Payee or other holder hereof may from time to time
designate in writing.

         3. Prepayment. Maker reserves the right and privilege of prepaying this
Note in whole or in part at any time, or from time to time, without notice,
premium, charge, or penalty. Prepayments on this Note shall be applied first to
accrued and unpaid interest to the date of such prepayment and then to the
unpaid principal balance hereof.

         4. Default. Maker shall be determined to be in default immediately upon
the failure or refusal of Maker to pay principal of or interest on this Note
within ten (10) days of when the same becomes due in accordance with the terms
hereof. If Maker is determined to be in default, the holder of this Note may, at
its option, (a) declare the entire unpaid balance of principal and accrued
interest on this Note to be immediately due and payable without notice or
demand, (b) offset against this Note any sum or sums owed by the holder hereof
to Maker, (c) reduce any claim to judgment, (d) foreclose all liens and security
interests securing payment thereof or any part thereof, and/or (e) proceed to
protect and enforce its rights either by suit in equity and/or by action of law,
or by other appropriate proceedings, whether for the specific performance of any
covenant or agreement contained in this Note or in aid of the exercise granted
by this Note of any right, or to enforce any other legal or equitable right or
remedy of the holder of this Note.

         5. Cumulative Rights. No delay on the part of the holder of this Note
in the exercise of any power or right, or single partial exercise of any such
power or right under this Note, or under any other instrument executed pursuant
hereto shall operate as a waiver thereof. Enforcement by the holder of this Note
of any security for the payment hereof shall not constitute any election by it
of remedies so as to preclude the exercise of any other remedy available to it.

         6. Collection Costs. If this Note is placed in the hands of an attorney
for collection, or if it is collected through any legal proceeding at law or in

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equity or in bankruptcy, receivership, or other court proceedings, Maker agrees
to pay all costs of collection, including but not limited to court costs and
reasonable attorney's fees of the Payee.

         7. Waiver. Maker, and each surety, endorser, guarantor, and other party
liable for the payment of any sums of money payable on this Note, jointly and
severally waive presentment and demand for payment, protest, and notice of
protest and nonpayment, or other notice of default except as specified herein,
and agree that their liability on this Note shall not be affected by any renewal
or extension in the time of payment hereof, or in any indulgences, or by any
partial payment, any release or change in any security for the payment of this
Note, before or after maturity, regardless of the number of such renewals,
extensions, indulgences, releases, or changes.

         8. Notices. Any notice or demand given hereunder by the holder hereof
shall be deemed to have been given and received (a) when actually received by
Maker, if delivered in person, or (b) if mailed, on the earlier of the date
actually received or (whether ever received or not) two business days after
deposit in the U. S. Mail, postage prepaid, addressed to Maker at its address on
the first page.

         9. Successor and Assigns. All of the covenants, stipulations, promises,
and agreements in this Note contained by or on behalf of Maker shall bind its
successors and assigns, whether so expressed or not; provided, however, that
neither Maker nor Payee may, without the prior written consent of the other,
assign any rights, powers, duties, or obligations under this Note.

         10. Headings. The headings of the paragraphs of this Note are inserted
for convenience only and shall not be deemed to constitute a part hereof.

         11. Applicable Law. This Note is being executed and delivered, and is
intended to be performed, in the state of Utah, and the substantive laws of such
state shall govern the validity, construction, enforcement, and interpretation
of this Note except insofar as federal laws shall have application.

         EXECUTED effective the year and date first above written.

                                             AMERICAN FINANCIAL HOLDING, INC.

                                             By  /s/ Kenton L. Stanger
                                                -----------------------
                                                Kenton L. Stanger, President

                                       2ASSIGNMENT AGREEMENT

         THIS ASSIGNMENT AGREEMENT (this "Agreement") is entered into effective
this 31st day of December, 2000, by and between AMERICAN FINANCIAL HOLDING,
INC., a Delaware corporation (the "Company"), and DEBT REDUCTION TRUST, an
irrevocable trust (the "Trust").

                                   AGREEMENT:

         FOR AND IN CONSIDERATION of the mutual promises and covenants
hereinafter set forth, it is hereby agreed as follows:

         1. The Company does hereby bargain, sell, convey, assign, set over, and
transfer to the Trust all of the principal amount and accrued interest on those
certain obligations owed by the persons identified on Exhibit A attached hereto
and incorporated herein by reference, as evidenced by one or more promissory
notes signed by such individuals as maker and payable to the Company as payee,
subject to the liabilities set forth therein, all as more particularly set forth
on said exhibit opposite each name of the respective persons named therein. In
addition to this assignment, the Company shall endorse each of the notes
evidencing the obligations referred to herein and deliver the same to the Trust.

         2. The Trust acknowledges that the obligations assigned pursuant hereto
are subject to those certain liabilities set forth on Exhibit A, which may be
set off against payment of such obligations, and hereby assumes and agrees to
pay such offsetting liabilities and to indemnify the Company and hold it
harmless from and against any loss, cost, or damage arising therefrom.

         3. The Trust hereby assumes and agrees to pay and discharge any and all
liability or responsibility for any withholding, payroll, or similar taxes or
employer burdens that may be due and payable to any federal or state taxing or
other authority relating to the assigned notes or any related characterization
of the amounts advanced to any person listed on Exhibit A as compensation and
agrees to indemnify the Company and hold it harmless from and against any loss,
cost, or damage, including the legal and other costs of investigating or
defending the same, incurred by the Company in connection therewith.

         4. Each of the parties hereby covenant and agree to execute,
acknowledge, and deliver such further instruments and documents as may be
necessary, appropriate, or convenient in order to effectuate the transactions
herein contemplated.

         5. This Agreement shall be governed by, enforced, and construed under
and in accordance with the laws of the United States of America and, with
respect to matters of state law, with the laws of the state of Utah.

         6. In the event that any party institutes any action or suit to enforce
this Agreement or to secure relief from any default hereunder or breach hereof,
the breaching party shall reimburse the nonbreaching party for all costs,
including reasonable attorneys' fees, incurred in connection therewith and in
enforcing or collecting any judgment rendered therein, including such costs
which are incurred in any bankruptcy or appellate proceeding.

         7. The failure of any party to exercise its rights in the event of a
breach of any of the terms and provisions of this Agreement by the other party
shall not constitute a waiver of any damages attributable to such breach nor a
waiver of any such rights with respect to future, similar breaches.

         8. This Agreement constitutes the entire agreement and understanding
between the parties pertaining to the subject matter of this Agreement. This
Agreement supersedes all prior agreements, if any, any understandings,
negotiations, courses of dealing, and discussions, whether oral or written,

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between the parties hereto, including any subsidiary of the Company. No
supplement, modification, waiver, or termination of this Agreement shall be
binding unless executed in writing by the party to be bound thereby.

         9. All notices, demands, requests, or other communications required or
authorized hereunder shall be in writing and shall be deemed to have been given
on the date of service if personally served or by facsimile transmission (if
receipt is confirmed by the facsimile operator of the recipient), or on the
following day if delivered by overnight courier service, or on the fifth day
after mailing if mailed by certified mail, return receipt requested, addressed
as follows:

         If to the Company, to:             American Financial Holding, Inc.
                                            914 Rio Virgin Drive
                                            St. George  UT  84790
                                            Telecopy No.: 435-674-1183

         If to the Trust, to:               Debt Reduction Trust
                                            c/o Chelton S. Feeny
                                            1315 Cordova, #301
                                            Anchorage  AL  99508
                                            Telecopy No.:  907-279-1932

or such other addresses and facsimile numbers as shall be furnished by any party
in the manner for giving notices hereunder, and any such notice, demand,
request, or other communication shall be deemed to have been given as of the
date so delivered or sent by facsimile transmission, five business days after
the date so mailed, or one day after the date so sent by overnight delivery.

         10. A valid and binding signature hereto or any notice or demand
hereunder may be in the form of a manual execution or a true copy made by
photographic, xerographic, or other electronic process that provides similar
copy accuracy of a document that has been executed. This Agreement may be
executed in multiple counterparts, each of which shall be deemed an original and
all of which taken together shall be but a single instrument.

         11. All representations and warranties contained herein or made in
writing by any party in connection herewith will survive the execution and
delivery of this Agreement.

         IN WITNESS WHEREOF, the parties have signed this Agreement on the day
and year first written above.

                                              AMERICAN FINANCIAL HOLDING, INC.

                                              By:  /s/ Kenton L. Stanger
                                                   ---------------------
                                                   Kenton L. Stanger, President
                                                   Date:  January 11, 2001

                                              DEBT REDUCTION TRUST

                                              By:  /s/ Chelton S. Feeny
                                                   --------------------
                                                   Chelton S. Feeny, Its Trustee
                                                   Date:  January 11, 2001

                                       2

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