PROMISSORY
NOTE
$100,000.00
May 11, 2009
FOR VALUE
RECEIVED, the
undersigned, GLOBAL CASINOS, INC., a Utah corporation, its
successors and assigns,(the “Company” or "Maker"),
promises to pay to the order of CASINOS U.S.A., INC., a
Colorado Corporation ("Holder") at 110 Main Street, Blackhawk, CO
80422 or at such other place as Holder may from time to time
designate in writing, the principal sum of One Hundred Thousand and
no/100 Dollars ($100,000.00) in lawful money of the United States
of America, together with interest on so much thereof as is from
time to time outstanding at the rate hereinafter provided, and
payable as hereinafter provided.
1.
Interest
Rate .
The unpaid principal balance of this Note shall bear interest
commencing on the date of this Note at the rate of twelve percent
(12%) per annum.
2.
Payment/Maturity
Date .
The total outstanding principal balance hereof,
together with accrued and unpaid interest, shall be due and payable
in two installments: the first installment of $50,000, together
with accrued and unpaid interest, shall be due and payable out of,
and shall be deducted from the Net Profit distribution payable to
Maker by Holder for the three month period ended June 30, 2009; and
the second installment of $50,000, together with accrued and unpaid
interest, shall be payable out of and deducted from the Net Profit
distribution payable to Maker by Holder for the three month period
ended September 30, 2009.
3.
Default Interest and
Attorney Fees . Upon declaration of a
default hereunder, the balance of the principal remaining unpaid,
interest accrued thereon, and all other costs, and fees shall bear
interest at the rate of twelve percent (12%) per annum from the
date or default, or the date of advance, as applicable. In
the event of default, the Maker and all other parties liable hereon
agree to pay all costs of collection, including reasonable
attorneys' fees.
4.
Financing
Fee .
Concurrently with the execution hereof, the Company shall pay
Holder a loan fee in the amount of $1,000.
5.
Interest
Calculation .
Interest shall be computed using the actual number of days in
the period for which such computation is made and a per diem rate
equal to 1/365 of the rate per annum.
6.
Prepayment
. Maker may prepay
all or any portion of the principal balance of this Note with the
written consent of Holder.
7.
Costs of
Collection .
Maker agrees that if, and as often as, this Note is placed in
the hands of an attorney for collection or to defend or enforce any
of Holder's rights hereunder or under any instrument securing
payment of this Note, Maker shall pay to Holder its reasonable
attorneys' fees and all court costs and other expenses incurred in
connection therewith, regardless of whether a lawsuit is ever
commenced or whether, if commenced, the same proceeds to judgment
or not. Such costs and expenses shall include, without
limitation, all costs, reasonable attorneys' fees, and expenses
incurred by Holder in connection with any insolvency, bankruptcy,
reorganization, foreclosure, deed in lieu of foreclosure or similar
proceedings involving Maker or any endorser, surety, guarantor, or
other person liable for this Note which in any way affect the
exercise by Holder of its rights and remedies under this Note, or
any other document or instrument securing, evidencing, or relating
to the indebtedness evidenced by this Note.
8.
Default
. At the option
of Holder, the unpaid principal balance of this Note and all
accrued interest thereon shall become immediately due, payable, and
collectible, without notice or demand, upon the occurrence at any
time of any of the following events, each of which shall be deemed
to be an event of default hereunder:
a.
Maker's failure to make
any payment of principal, interest, or other charges on or before
the date on which such payment becomes due and payab
