Document:

AGREEMENT AND AMENDMENT TO PROMISSORY NOTE

       This AGREEMENT AND AMENDMENT TO PROMISSORY NOTE (the "Agreement") is effective the 17th day of September, 2002 (the "Effective Date"), between CASINOS U.S.A., INC., a Colorado corporation (hereinafter, "Borrower"), and ASTRAEA INVESTMENT MANAGEMENT L.P., as trustee (hereinafter, "Note Holder").

W I T N E S S E T H

       WHEREAS, Borrower executed a Promissory Note dated January 17, 1997 originally payable to Global Casinos, Inc. (hereinafter, "Global"), in the principal amount of Two Hundred Forty-Nine Thousand Four Hundred Eighteen and 48/100 Dollars ($249,418.48), plus interest, a copy of which is attached hereto as Exhibit "A" (the "Global Secured Note"); and

       WHEREAS, the Global 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 Gilpin County, Colorado, a copy of which is attached hereto as Exhibit "B" (the "Deed of Trust"), which Deed of Trust covers inter alia the real property described in Exhibit B attached hereto and the other property therein described (the "Property").  The Global Secured Note and the Deed of Trust are referred to herein as the "Documents;" and

       WHEREAS, the Global Secured Note and the interests of Global in the above-referenced Deed of Trust were assigned to Note Holder by an "Assignment of Promissory Note and Deed of Trust," made July 28, 1997, a copy of which is attached hereto as Exhibit "C"; and

       WHEREAS, Note Holder is and remains the holder of the Global Secured Note and Global's rights under said Deed of Trust; and

       WHEREAS, Note Holder agrees to restructure the Global Secured Note to provide for more favorable terms to Borrower as hereinafter set forth; and

       WHEREAS, the parties agree that the restructuring of the Global Secured Note for the benefit of Borrower is not intended to affect the validity, enforceability or priority of the above-referenced Deed of Trust;

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

	 	
1.
	
Moratorium and Extension for Payments.    The Note Holder agrees to grant the Borrower a 12-month moratorium on monthly payments and agrees to extend the final payment date under the Global Secured Note.  Thus, in accordance with this agreement, Paragraph 1 of the Global Secured Note is amended as follows:

	 	 	
"1.     FOR VALUE RECEIVED, Casinos U.S.A., Inc, a Colorado corporation ("Borrower") promises to pay Astraea Investment Management L.P. (successor to Global Casinos, Inc.) or order ("Note Holder") the original principal sum of $249,418.48, with interest on the unpaid principal balance until paid at the rate of seven percent (7%) compounded annually.  Principal and interest shall be payable to Note Holder, c/o Bruce Leadbetter, at 5420 LBJ Freeway, Suite 1450, Dallas, Texas  75240, or such other place as Note Holder may designate, in monthly payments of $1,659.39 due on the 17th day of each month; provided, however, that all payments due September 17, 2002 through August 17, 2003 shall be deferred, and further that payments due on September 17, 2003 and each month thereafter shall be adjusted to $1,660.19; and if not sooner paid, the entire principal amount outstanding and accrued interest compounded annually thereon, shall be due on September 17, 2009."  Exhibit "D" attached hereto contains the amortization schedule giving effect to the foregoing provisions.

	 	
2.
	
Non-Usurious Provision.    Notwithstanding any provisions of the Global Secured Note, or any amendments thereto, Note Holder shall never be entitled to charge, receive or collect, nor shall amounts or property received hereunder be credited to Note Holder so that Note Holder shall be paid, as interest, a sum greater than the maximum interest allowed by applicable law.  It is the intention of the parties that the Global Secured Note, and all instruments securing the payment of the Global Secured Note or executed or delivered in connection therewith, shall comply with applicable law.  If Note Holder ever contracts for, charges, receives or collects anything of value which is deemed interest under applicable law and the result is that Note Holder may be deemed to have charged, received or collected an amount of interest in excess of what is permitted by applicable law, any amount which so exceeds the maximum rate allowed by law shall be applied to the reduction of the unpaid principal balance of the Global Secured Note.

	 	
3.
	
Validity and Priority of Liens.    All the Property shall remain in all respects subject to the lien, charge or encumbrance of the Deed of Trust and nothing herein contained and nothing done pursuant hereto shall affect or be construed to affect the lien, charge or encumbrance of the Deed of Trust or the priority thereof over any other liens, charges or encumbrances or to release or affect the liability of Borrower under or on account of the Global Secured Note or any other documents or agreements, nor shall anything herein contained or done in pursuance hereof affect or be construed to affect any other security for the Global Secured Note, if any, held by the Note Holder.  

	 	
4.
	
Documents Effective.      All other terms and conditions of the Documents, except as modified herein, shall remain in full force and effect and the parties hereby ratify and affirm all such terms and conditions.  Notwithstanding anything to the contrary contained in the Documents, the language and provisions set out herein shall control in the event of any conflict.  

	 	
5.
	
Counterparts.    This Agreement may be executed in multiple counterparts, which shall collectively constitute one instrument.

	 	
6.
	
Entire Agreement.   THIS WRITTEN AGREEMENT AND AMENDMENT TO PROMISSORY NOTE MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RESPECTING THE SUBJECT PROMISSORY NOTE.

	 	
7.
	
Assignment.    The Global Secured Note may be assigned by Note Holder and will inure to the benefit of Note Holder's successors and assigns.

EXECUTED on this ____th day of September, 2002, to be effective as of the Effective Date set forth in the first paragraph of this Agreement.

	
CASINOS U.S.A., INC.
	
ASTRAEA INVESTMENT MANAGEMENT, L.P., Trustee

	
By:/s/ Frank L. Jennings            
	
By:/s/ Bruce C. Leadbetter             

	
Printed Name:    Frank L. Jennings
	
     Bruce C. Leadbetter

	
Title:     President
	
Title:     CEOAGREEMENT AND AMENDMENT TO PROMISSORY NOTE

       This AGREEMENT AND AMENDMENT TO PROMISSORY NOTE (the "Agreement") is effective the 17th day of September, 2002 (the "Effective
Date") between GLOBAL CASINOS, INC., a Utah corporation (hereinafter, "Borrower" or "Maker"), and ASTRAEA INVESTMENT MANAGEMENT L.P., as trustee (hereinafter, "Note Holder" or "Payee").

W I T N E S S E T H

       WHEREAS, Borrower executed a Secured Convertible Promissory Note dated May 11, 1994, payable to Note Holder in the original principal amount of SEVEN HUNDRED FIFTY THOUSAND and NO/100 DOLLARS ($750,000.00), plus interest, a copy of which is attached hereto as Exhibit "A" (the "Global Note"); and

       WHEREAS, the Global Note was amended by a letter agreement, a copy of which is attached hereto as Exhibit "B"; and

       WHEREAS, Borrower is in default of payments to be made under the Global Note, and the parties have voluntarily agreed to restructure and more fully secure the Global Note as set forth herein.

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

	 	
1.
	
Stipulation.    Borrower stipulates (1) that it is delinquent in its payments under the Global Note, (2) that the current unpaid and principal balance is $500,581.52 and (3) that the accrued interest as of September 17, 2002 is approximately $214,796.32.

	 	
2.
	
Forgiveness of Past Interest.    As part of the inducement to Note Holder for the forgiveness of past accrued interest, Borrower agrees to provide additional collateral for the Global Note, as set forth in  paragraph 8 hereof.  Upon the execution of this Agreement, all accrued and unpaid interest under the Global Note due and payable as of the Effective Date shall be deemed forgiven and shall no longer be due and owing.

	 	
3.
	
Extension of Final Payment Date.  The Note Holder agrees to extend the final payment due under the Global Note.  Thus, in accordance with this Agreement, Paragraph 4(b) of the Global Note is amended to provide the following:

	 	 	
"(b)     To the extent not otherwise paid, all principal balances outstanding hereunder, together with all accrued and unpaid interest compounded annually thereon, shall be due and payable on September 17, 2009."

	 	
4.
	
Interest Rate.    The interest rate set forth in Paragraph 2(a) of the Global Note shall be reduced to four percent (4%).  The interest shall be compounded annually.

	 	
5.
	
Interest and Principal Payments.    The Note Holder agrees to restructure Borrower's interest and principal payments.  Thus, in accordance with this Agreement, Paragraph 4(a) of the Global Note is amended to provide the following:

	 	 	
"(a)     Interest and Principal.  On February 17, 2003, and on February 17 of each year thereafter, Borrower shall pay Note Holder 75% of the Surplus Cash Flow of Casinos U.S.A., Inc. ("Casinos") for the previous calendar year.  "Surplus Cash Flow," as used in this Promissory Note shall mean all revenue of Casinos derived from any source whatsoever, less operating expenses incurred in connection therewith (including payments for accounting services to Borrower pursuant to a Services Agreement), reasonable expenditures for necessary or desirable capital improvements to the Bull Durham Saloon and Casino, amounts necessary for reserves, taxes and all amounts due and payable on all secured and unsecured promissory notes of Casinos and debt on gaming machines duly owed by Casinos to IGT Commercial Corporation/IGT Colorado Corporation and Aristocrat Technologies, Inc. or other equipment vendors by Casinos U.S.A., Inc.  All payments of Surplus Cash Flow should first be applied to accrued and unpaid interest and thereafter to principal.  Any principal and interest not paid by the Surplus Cash Flow payments required in this paragraph shall be due and payable in the final balloon payment on September 17, 2009."

	 	
6.
	
Non-Usurious Provision.    Notwithstanding any provisions of the Global Note, or any amendments thereto, Note Holder shall never be entitled to charge, receive or collect, nor shall amounts or property received hereunder be credited to Note Holder so that Note Holder shall be paid, as interest, a sum greater than the maximum interest allowed by applicable law.  It is the intention of the parties that the Global Note, and all instruments securing the payment of the Global Note or executed or delivered in connection therewith, shall comply with applicable law.  If Note Holder ever contracts for, charges, receives or collects anything of value which is deemed interest under applicable law and the result is that Note Holder may be deemed to have charged, received or collected an amount of interest in excess of what is permitted by applicable law, any amount which so exceeds the maximum rate allowed by law shall be applied to the reduction of the unpaid principal balance of the Global Note.

	 	
7.
	
Conversion Rights.    The conversion rights set forth in the Global Note, which give Note Holder the right to convert the indebtedness under said note for equity in Global, are hereby voided and cancelled.

	 	
8.
	
Stock Pledge Agreement.

	 	 	
Collateral For Note.    Contemporaneously with the execution of this Agreement the parties are also executing a "Stock Pledge Agreement" pursuant to which the Borrower has pledged all of the outstanding shares of Casinos U.S.A., Inc., as collateral for payment of the Global Note.

	 	
9.
	
Additional Events of Default.  Paragraph 7 of the Global Note is revised to add the following Paragraph 7(g):

	 	 	
"(g)     Maker breaches or fails to duly observe or timely perform any of their respective obligations, covenants or agreements to others or as contained in that (i) one certain "Agreement" of even date herewith between Maker, Note Holder and Casinos USA, Inc, or the (ii) Stock Pledge Agreement referenced in Paragraph 9, above.

	 	
10.
	
Assignment.    The Global Note may be assigned by Note Holder and will inure to the benefit of Note Holder's successors and assigns.

	 	
11.
	
Entire Agreement.    THIS WRITTEN AGREEMENT AND AMENDMENT TO PROMISSORY NOTE MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RESPECTING THE SUBJECT PROMISSORY NOTE.

	 	
12.
	
Counterparts.    This Agreement may be executed in multiple counterparts, which collectively constitute one instrument.  

		
13.
	
No Other Modifications.    All other terms and conditions of the Global Note except as modified herein, shall remain in full force and effect and the parties hereby ratify and affirm all such terms and conditions.

       EXECUTED
 on this ___ day of September, 2002, to be effective as of the Effective Date set forth on the first paragraph of this Agreement.

	
GLOBAL CASINOS, INC.
	
ASTRAEA INVESTMENT MANAGEMENT, L.P., Trustee

	
By:/s/ Frank L. Jennings                  
	
By: /s/ Bruce C. Leadbetter             

	
Title:  President
	
      Bruce C. Leadbetter

	 	
Title: CEO

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