THIRD MODIFICATION AGREEMENT
BY THIS THIRD MODIFICATION AGREEMENT, made and entered into as of the 1st day of July,
2005, STAR BUFFET, INC., a Delaware corporation, whose address is 420 Lawndale Drive, Salt Lake City,
Utah 84115 (hereinafter called “ Borrower ”), and M&I MARSHALL & ILSLEY BANK, a banking
corporation organized and existing under the laws of the State of Wisconsin, whose address is One East
Camelback Road, P.O. Box 11856, Phoenix, Arizona 85061-1856 (hereinafter called “ Lender ”), confirm and
agree as follows:
SECTION 1. RECITALS
1.1 Borrower and Lender entered into a Loan Agreement dated October 28, 2003 (as modified by the
Prior Modifications, defined below, the “ Loan Agreement ”), which provided for a revolving line of credit by
Lender to Borrower in the amount of $3,000,000.00 (the “ Loan ”), all upon the terms and conditions contained
1.2 The Loan is evidenced by a Promissory Note (Revolving Note) dated October 28, 2003 executed
by Borrower, payable to the order of Lender, in the principal amount of $3,000,000.00 (as modified by the Prior
Modifications, the “ Note ”).
1.3 Borrower and Lender have entered into a Modification Agreement, dated October 31, 2004, and a
Second Modification Agreement, dated February 1, 2005 (the “Prior Modifications”).
1.4 The Loan Agreement, the Note, the Prior Modifications, this Agreement and all other documents
and instruments evidencing or executed and delivered in connection with the Loan, together with all modifications
and amendments thereto and any documents required herein, are hereinafter collectively called the “ Loan
1.5 Borrower and Lender desire to modify the Loan and the Loan Documents as set forth herein.
SECTION 2. LOAN AGREEMENT
2.1 The definition of Termination Date in Section 2.1 of the Loan Agreement is hereby amended to read
Termination Date shall mean May 31, 2006; provided, however, upon the r