|BRIDGE LOAN AGREEMENT


This
Bridge Loan Agreement dated as of March 28, 2003, is between Bank of America, N.A. (the
Bank) and Coast Hotels and Casinos, Inc. (the Borrower) with
reference to the following facts:


     A.    
          The Borrower has heretofore entered into an Amended and Restated Loan Agreement
          dated as of September 16, 1999 with a syndicate of lenders for which Bank of
          America, N.A., serves as Administrative Agent (as heretofore amended, the
          Syndicated Credit).


     B.    
          The Borrower has indicated that it will seek to refinance the Syndicated Credit
          during the period prior to June 30, 2003.


     C.    
          Pending the proposed refinancing, the Borrower has requested that the Bank
          provide the interim credit facilities described herein.


NOW, THEREFORE, the parties hereto
hereby agree as follows:


     1.    
          LINE OF CREDIT AMOUNT AND TERMS


1.1    Line of Credit Amount.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | During the availability period described below, the Bank will provide a
          revolving line of credit to the Borrower (the Facility). The amount
          of the line of credit (the Commitment) is Twenty Million Dollars
          ($20,000,000).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | This is a revolving line of credit. During the availability period, the Borrower
          may repay principal amounts and reborrow them.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Borrower agrees not to permit the principal balance outstanding to exceed
          the Commitment. If the Borrower exceeds this limit, the Borrower will
          immediately pay the excess to the Bank upon the Banks demand.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2    Availability Period. The
line of credit is available upon the fulfillment of the conditions precedent set forth in
Section 5.1 and 5.2 of this Agreement between the date of this Agreement and the
earliest of the following dates (the Expiration Date):


     (a)    
          the date which is ninety days following the date of execution of this Agreement;


     (b)    
          the date upon which the Syndicated Credit is hereafter amended to extend its
          maturity or to change the amount thereof;


     (c)    
          the date upon which the Syndicated Credit is refinanced with another credit
          facility or terminated; or


     (d)    
          any or such earlier date as the availability may terminate as provided in this
          Agreement.


1.3    Repayment Terms.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Unless the LIBOR Rate described in Section 2.1 of this Agreement is
          unavailable (or the Bank otherwise reasonably consents) each loan made pursuant
          to this Agreement shall bear interest at the LIBOR Rate (determined for each
          loan by the Bank in respect of interest periods selected by the Borrower) plus
          3.5% per annum. Any principal amount bearing interest in respect of the LIBOR
          Rate is referred to as a Portion. Any interest period for any
          Portion shall expire no later than the Expiration Date
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(b) | In the event that the LIBOR Rate is unavailable, then interest will be
          calculated with reference to the Prime Rate at a rate equal to the Banks
          Prime Rate plus 2.5% per annum. The Borrower will pay interest in respect of any
          loan bearing interest with reference to the Prime Rate on the first day of each
          calendar month and upon payment in full of any principal outstanding under this
          line of credit.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Prime Rate is the rate of interest publicly announced from time to time by
          the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various
          factors, including the Banks costs and desired return, general economic
          conditions and other factors, and is used as a reference point for pricing some
          loans. The Bank may price loans to its customers at, above, or below the Prime
          Rate. Any change in the Prime Rate shall take effect at the opening of business
          on the day specified in the public announcement of a change in the Banks
          Prime Rate.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Borrower will repay in full all principal and any unpaid interest or other
          charges outstanding under this line of credit no later than the Expiration Date.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | LIBOR PROVISIONS
|-- | ----------------

|2.1    LIBOR Rate.The
election of LIBOR Rates shall be subject to the following terms and requirements:
|-------------------------------------------------------------------------------------------------------

|(a) | The interest period during which the LIBOR Rate will be in effect will be one,
          two or three weeks, or one month, as selected by the Borrower. The first day of
          the interest period must be a day other than a Saturday or a Sunday on which the
          Bank is open for business in New York and London and dealing in offshore dollars
          (a LIBOR Banking Day). The last day of the interest period and the
          actual number of days during the interest period will be determined by the Bank
          using the practices of the London inter-bank market.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each LIBOR Rate Portion will be for an amount not less than One Hundred Thousand
          Dollars ($100,000).
|--- | --------------------------------------------------------------------------------------------------------------

|(c) | Upon the occurrence of an Event of Default, the Bank may terminate the
          availability of the LIBOR Rate. If the Borrower fails to select a new interest
          rate in respect of any expiring LIBOR Portion, the Bank may convert the expiring
          Portion to a Prime Rate based Borrowing or may select a new interest period for
          the Borrower.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The LIBOR Rate means the interest rate determined by the following
          formula, rounded upward to the nearest 1/100 of one percent. (All amounts in the
          calculation will be determined by the Bank as of the first day of the interest
          period.)
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | LIBOR Rate = | London Inter-Bank Offered Rate(1.00 - Reserve Percentage) | 
| | ------------ | --------------------------------------------------------- | 

|Where,
|------

| | (i) | London Inter-Bank Offered Rate means the interest rate at which the
               Banks London Banking Center, London, Great Britain, would offer U.S.
               dollar deposits for the applicable interest period to other major banks in the
               London inter-bank market at approximately 11:00 a.m. London time two (2) London
               Banking Days before the commencement of the interest period. A London
               Banking Day is a day on which the Banks London Banking Center is
               open for business and dealing in offshore dollars.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | Reserve Percentage means the total of the maximum reserve
               percentages for determining the reserves to be maintained by member banks of the
               Federal Reserve System for Eurocurrency Liabilities, as defined in Federal
               Reserve Board Regulation D, rounded upward to the nearest 1/100 of one percent.
               The percentage will be expressed as a decimal, and will include, but not be
               limited to, marginal, emergency, supplemental, special, and other reserve
               percentages.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(e) | The Borrower shall irrevocably request a LIBOR Rate Portion no later than 12:00
          noon Las Vegas local time on the LIBOR Banking Day preceding the day on which
          the London Inter-Bank Offered Rate will be set, as specified above. For example,
          if there are no intervening holidays or weekend days in any of the relevant
          locations, the request must be made at least three days before the LIBOR Rate
          takes effect.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The Bank will have no obligation to accept an election for a LIBOR Rate Portion
          if any of the following described events has occurred and is continuing:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | Dollar deposits in the principal amount, and for periods equal to the interest
          period, of a LIBOR Rate Portion are not available in the London inter-bank
          market; or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | the LIBOR Rate does not accurately reflect the cost of a LIBOR Rate Portion.
|---- | ----------------------------------------------------------------------------

|(g) | Each prepayment of a LIBOR Rate Portion, whether voluntary, by reason of
          acceleration or otherwise, will be accompanied by the amount of accrued interest
          on the amount prepaid and a prepayment fee as described below. A
          prepayment is a payment of an amount on a date earlier than the
          scheduled payment date for such amount as required by this Agreement.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | The prepayment fee shall be in an amount sufficient to compensate the Bank for
          any loss, cost or expense incurred by it as a result of the prepayment,
          including any loss or expense arising from the liquidation or reemployment of
          funds obtained by it to maintain such Portion or from fees payable to terminate
          the deposits from which such funds were obtained. The Borrower shall also pay
          any customary administrative fees charged by the Bank in connection with the
          foregoing. For purposes of this paragraph, the Bank shall be deemed to have
          funded each Portion by a matching deposit or other borrowing in the applicable
          interbank market, whether or not such Portion was in fact so funded.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | FEES AND EXPENSES
|-- | -----------------

|3.1    Commitment Fees. During
the Availability Period, Borrower shall pay to the Bank a commitment fee equal to .375% of
the Commitment times the average daily amount of the unused portion of the Commitment.
Commitment fees shall be payable monthly in arrears on the last day of each month, on the
date of any termination of the Commitment and on the Expiration Date.


3.2    Expenses. The Borrower
agrees to reimburse the Bank for reasonable expenses incurred to pay filing, recording and
search fees, appraisal fees, title report fees, documentation and similar fees.


3.3    Reimbursement Costs.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | The Borrower agrees to reimburse the Bank for any expenses it incurs in the
          preparation of this Agreement and any agreement or instrument required by this
          Agreement. Expenses include, but are not limited to, reasonable attorneys
          fees, including any allocated costs of the Banks in-house counsel to the
          extent permitted by applicable law.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower agrees to reimburse the Bank for the cost of periodic field
          examinations of the Borrowers books and records, at such intervals as the
          Bank may reasonably require. The actions described in this paragraph may be
          performed by employees of the Bank or by independent appraisers.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | DISBURSEMENTS, PAYMENTS AND COSTS
|-- | ---------------------------------

|4.1    Disbursements and
Payments.
|----------------------------------

|(a) | Each payment by the Borrower will be made in immediately available funds by
          direct debit to the Borrowers deposit account or by mail to the address
          shown on the Borrowers statement or at one of the Banks banking
          centers in the United States.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(b) | Each disbursement by the Bank and each payment by the Borrower will be evidenced
          by records kept by the Bank. In addition, the Bank may, at its discretion,
          require the Borrower to sign one or more promissory notes.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2    Telephone and Telefax
Authorization.
|-------------------------------------------

|(a) | The Bank may honor telephone or telefax instructions for advances or repayments
          given, or purported to be given, by any one of the individuals authorized to
          sign loan agreements on behalf of the Borrower, or any other individual
          designated by any one of such authorized signers.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Advances will be deposited in and repayments will be withdrawn from the
          Borrowers account number 000990114837 (Coast Hotels & Casinos Inc. dba
          The Orleans Hotel & Casino Operating Account), or such other of the
          Borrowers accounts with the Bank as designated in writing by the Borrower.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Borrower will indemnify and hold the Bank harmless from all liability, loss,
          and costs in connection with any act resulting from telephone or telefax
          instructions the Bank reasonably believes are made by any individual authorized
          by the Borrower to give such instructions. This paragraph will survive this
          Agreements termination, and will benefit the Bank and its officers,
          employees, and agents.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3    Direct Debit.
|--------------------

|(a) | The Borrower agrees that interest and principal payments and any fees will be
          deducted automatically on the due date from the Borrowers account number
          000990114837, or such other of the Borrowers accounts with the Bank as
          designated in writing by the Borrower.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower will maintain sufficient funds in the account on the dates the Bank
          enters debits authorized by this Agreement. If there are insufficient funds in
          the account on the date the Bank enters any debit authorized by this Agreement,
          the Bank may reverse the debit.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4    Banking Days. Unless
otherwise provided in this Agreement, a banking day is a day other than a Saturday, Sunday
or other day on which commercial banks are authorized to close, or are in fact closed, in
the state where the Banks lending office is located, and, if such day relates to
amounts bearing interest at an offshore rate (if any), means any such day on which
dealings in dollar deposits are conducted among banks in the offshore dollar interbank
market. All payments and disbursements which would be due on a day which is not a banking
day will be due on the next banking day. All payments received on a day which is not a
banking day will be applied to the credit on the next banking day.


4.5    Interest Calculation. All
interest and fees, if any, will be computed on the basis of a 360-day year and the actual
number of days elapsed. This results in more interest or a higher fee than if a 365-day
year is used. Installments of principal which are not paid when due under this Agreement
shall continue to bear interest until paid.


4.6    Default Rate. Upon the
occurrence of any default under this Agreement, all amounts outstanding under this
Agreement, including any interest, fees, or costs which are not paid when due, will at the
option of the Bank bear interest at a rate which is 2.0 percentage points higher than the
rate of interest otherwise provided under this Agreement. This may result in compounding
of interest. This will not constitute a waiver of any default.


5. CONDITIONS


The Bank must receive the following
items, in form and content acceptable to the Bank, before it is required to extend any
credit to the Borrower under this Agreement:


5.1    Conditions to First
Extension of Credit.Before the first extension of credit:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Authorizations. If the Borrower or any guarantor is anything other than a
          natural person, evidence that the execution, delivery and performance by the
          Borrower and/or such guarantor of this Agreement and any instrument or agreement
          required under this Agreement have been duly authorized.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Guaranty. A guaranty of the obligations of the Borrower hereunder
          executed by Coast Casinos, Inc., a Nevada corporation.
|--- | ----------------------------------------------------------------------------------------------------------------------------------

|(c) | Other Items. Any other items that the Bank reasonably requires.
|--- | ---------------------------------------------------------------

|5.2    Conditions to Each
Advance. As a condition to each extension of credit hereunder:the entire amount of the
Syndicated Credit shall have been advanced to the Borrower, and shall remain outstanding
and no default or event of default shall have occurred and remain continuing under the
terms of this Agreement or the Syndicated Credit.


6.  REPRESENTATIONS AND WARRANTIES


The Borrower makes the following
representations and warranties. Each request for an extension of credit constitutes a
renewal of these representations and warranties as of the date of the request:


6.1    Formation.Borrower is
duly formed and existing under the laws of the State of Nevada. Coast Casinos, Inc. is
duly formed and existing under the laws of the State of Nevada.


6.2    Authorization. This
Agreement, and any instrument or agreement required hereunder, are within the
Borrowers corporate powers, have been duly authorized, and do not conflict with its
Articles of Incorporation or Bylaws. The guaranty of Coast Casinos, Inc. referred to in
Section 5.1(b) is within Coast Casinos, Inc.s corporate powers, has been duly
authorized, and does not conflict with its Articles of Incorporation or Bylaws.


6.3    Enforceable Agreement.
This Agreement is a legal, valid and binding agreement of the Borrower, enforceable
against the Borrower in accordance with its terms, and any instrument or agreement
required hereunder, when executed and delivered, will be similarly legal, valid, binding
and enforceable.


6.4    Good Standing. In each
state in which the Borrower does business, it is properly licensed, in good standing, and,
where required, in compliance with fictitious name statutes.


6.5    No Conflicts.This
Agreement does not conflict with any law, agreement, or obligation by which the Borrower
is bound.


6.6    Financial Information. All
financial and other information that has been or will be supplied to the Bank is
sufficiently complete to give the Bank accurate knowledge of the Borrowers (and any
guarantors) financial condition, including all material contingent liabilities.
Since the date of the most recent financial statement provided to the Bank, there has been
no material adverse change in the financial condition , operations, properties or
prospects of the Borrower (or any guarantor).


6.7    Lawsuits. There is no
lawsuit, tax claim or other dispute pending or threatened against the Borrower which, if
lost, would impair the Borrowers ability to repay the loan or have a material
adverse effect on the Borrowers financial condition, except as have been disclosed
in writing to the Bank.


6.8    Permits, Franchises. The
Borrower possesses all permits, memberships, franchises, contracts and licenses required
and all trademark rights, trade name rights, patent rights and fictitious name rights
necessary to enable it to conduct the business in which it is now engaged except where the
failure to so possess such permits, memberships, franchises, contracts, licenses and
rights would not have a material adverse effect on the Borrower.


6.9    Other Obligations. The
Borrower is not in default on any obligation for borrowed money, any purchase money
obligation or any other material lease, commitment, contract, instrument or obligation
with respect to an obligation in excess of $5,000,000, except as have been disclosed in
writing to the Bank.



6.10    Tax Matters. The Borrower
has no knowledge of any pending assessments or adjustments of its income tax for any year
and all taxes due (other than taxes being contested in good faith) have been paid, except
as have been disclosed in writing to the Bank.


6.11    No Event of Default.
There is no event which is, or with notice or lapse of time or both would be, a default
under this Agreement.


6.12    Insurance. The Borrower
has obtained, and maintained in effect, the insurance coverage required in the
Covenants section of this Agreement.


7. COVENANTS


The Borrower agrees, so long as
credit is available under this Agreement and until the Bank is repaid in full:


7.1    Use of Proceeds.To use
the proceeds of the Facility only for general corporate purposes of the Borrower.


7.2    Financial Information. To
provide the Bank with all of the financial and other information and reports required to
be submitted to the Administrative Agent and the lenders under the Syndicated Credit,
concurrently with its submission to the Administrative Agent and the lenders thereunder,
and such additional information as requested by the Bank from time to time.


7.3    Other Debts. Not to have
outstanding or incur any direct or contingent liabilities or lease obligations which are
not permitted by the terms of the Syndicated Credit (as in effect on the date hereof) or
without the Banks written consent.


7.4    Other Liens. Not to
create, assume, or allow any security interest or lien (including judicial liens) on
property the Borrower now or later owns which are not permitted by the terms of the
Syndicated Credit (as in effect on the date hereof).


7.5    Maintenance of Assets.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Not to sell, assign, lease, transfer or otherwise dispose of any part of the
          Borrowers business or the Borrowers assets except in the ordinary
          course of the Borrowers business.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Not to sell, assign, lease, transfer or otherwise dispose of any assets for less
          than fair market value, or enter into any agreement to do so.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Not to enter into any sale and leaseback agreement covering any of its fixed
          assets.
|--- | ----------------------------------------------------------------------------------------------

|(d) | To maintain and preserve all rights, privileges, and franchises the Borrower now
          has, except for changes in the ordinary course of business.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | To make any repairs, renewals, or replacements to keep the Borrowers
          properties in good working condition.
|--- | ---------------------------------------------------------------------------------------------------------------------

|7.6    Investments. Not to have
any existing, or make any new, investments in, any individual or entity, or make any
capital contributions or other transfers of assets to any individual or entity, except
for:


     (a)    
          Existing investments disclosed to the Bank in writing.


     (b)    
          Investments in the Borrowers current subsidiaries.



(c)    
          Investments in Cash Equivalents (as defined in the Syndicated Credit).


     (d)       
          Investments permitted under Section 6.16 of the Syndicated Credit.


7.7     Loans. Not to make any
loans, advances or other extensions of credit to any individual or entity, except for:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Existing extensions of credit disclosed to the Bank in writing.
|--- | ---------------------------------------------------------------

|(b) | Extensions of credit to the Borrowers current subsidiaries.
|--- | ------------------------------------------------------------

|(c) | Extensions of credit in the nature of accounts receivable or notes receivable
          arising from the sale or lease of goods or services in the ordinary course of
          business to non-affiliated entities.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d)       
          Extensions of Credit permitted under Section 6.16 of the Syndicated Credit.


7.8    Additional Negative
Covenants.Not to, without the Bank's written consent:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Enter into any consolidation, merger, or other combination, or become a partner
          in a partnership, a member of a joint venture, or a member of a limited
          liability company.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Acquire or purchase a business or its assets in any manner prohibited by the
          Syndicated Credit.
|--- | ---------------------------------------------------------------------------------------------------------

|(c) | Engage in any business activities substantially different from the
          Borrowers present business.
|--- | ---------------------------------------------------------------------------------------------------------

|(d) | Liquidate or dissolve the Borrowers business.
|--- | ----------------------------------------------

|(e) | Voluntarily suspend its business for more than 2 days.
|--- | ------------------------------------------------------

|7.9    Notices to Bank.To
promptly notify the Bank in writing of:
|-----------------------------------------------------------------

|(a) | Any lawsuit over One Million Dollars ($1,000,000) filed against and served on
          the Borrower or any guarantor.
|--- | ----------------------------------------------------------------------------------------------------------------------

|(b) | Any substantial dispute between any governmental authority and the Borrower or
          any guarantor.
|--- | -------------------------------------------------------------------------------------------------------

|(c) | Any event of default under this Agreement or the Syndicated Credit, or any event
          which, with notice or lapse of time or both, would constitute an event of
          default under this Agreement or the Syndicated Credit.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any material adverse change in the Borrowers or any guarantors
          business condition (financial or otherwise), operations, properties or
          prospects, or ability to repay the credit.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Any change in the Borrowers name, legal structure, place of business, or
          chief executive office if the Borrower has more than one place of business.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Any actual contingent liabilities of the Borrower, and any such contingent
          liabilities which are reasonably foreseeable.
|--- | ----------------------------------------------------------------------------------------------------------------------------------

|7.10   Insurance.
|-----------------

|(a) | Insurance. To maintain insurance consistent with the requirements of the
          Syndicated Credit.
|--- | -----------------------------------------------------------------------------------------------------

|(b) | Evidence of Insurance. Upon the request of the Bank, to deliver to the
          Bank a copy of each insurance policy, or, if permitted by the Bank, a
          certificate of insurance listing all insurance in force.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.11   Compliance with Laws. To
comply in all material respects with the laws (including any fictitious name statute),
regulations, and orders of any government body with authority over the Borrowers
business.


7.12   Audits. To allow the Bank
and its agents to inspect the Borrowers properties and examine, audit, and make
copies of books and records at any reasonable time. If any of the Borrowers
properties, books or records are in the possession of a third party, the Borrower
authorizes that third party to permit the Bank or its agents to have access to perform
inspections or audits and to respond to the Banks requests for information
concerning such properties, books and records.


7.13   Cooperation.To take any
action reasonably requested by the Bank to carry out the intent of this Agreement.


7.14   Prepayment of
Indebtedness. Make any payment of principal with respect to any indebtedness of
Borrower (including without limitation any of the indebtedness under the Syndicated
Credit) prior to the date when due, if any amount is outstanding under this Agreement.


     8.    
          DEFAULT AND REMEDIES


If any of the following events of
default occurs, the Bank may do one or more of the following: declare the Borrower in
default, stop making any additional credit available to the Borrower, and require the
Borrower to repay its entire debt immediately and without prior notice. In addition, if
any event of default occurs, the Bank shall have all rights, powers and remedies available
under any instruments and agreements required by or executed in connection with this
Agreement, as well as all rights and remedies available at law or in equity. If an event
of default occurs under the paragraph entitled Bankruptcy, below, with respect
to the Borrower, then the entire debt outstanding under this Agreement will automatically
be due immediately.


8.1    Failure to Pay. The
Borrower fails to make a payment under this Agreement when due, provided that the
Borrower shall not be deemed to be in default for any failure to make a payment of
interest, fees or other amounts which are not principal until two business days have
passed following a demand for that payment by the Bank.


8.2    Other Bank Agreements. The
Borrower or any guarantor fails to perform any obligation under any other agreement the
Borrower or any guarantor has with the Bank.


8.3    Cross-default. Any Event
of Default (as defined in the Syndicated Credit) occurs or any event of default under
other agreement in connection with any credit exceeding $5,000,000 the Borrower (or any
guarantor) has obtained from anyone else or which the Borrower (or any guarantor) has
guaranteed.


8.4    Change of Control.Any
Change of Control (as defined in the Syndicated Credit as of the date of this Agreement)
occurs.


8.5    Bankruptcy. The Borrower
or any guarantor files a bankruptcy petition, a bankruptcy petition is filed against any
of the foregoing parties, or the Borrower or any guarantor makes a general assignment for
the benefit of creditors.


8.6    Receivers. A receiver or
similar official is appointed for a substantial portion of the Borrowers or any
guarantors business, or the business is terminated.


8.7    Lawsuits. Any lawsuit or
lawsuits are filed on behalf of one or more trade creditors against the Borrower or any
guarantor in an aggregate amount of One Million Dollars ($1,000,000) or more in excess of
any insurance coverage.


8.8    Judgments. A final
judgment against Coast Casinos, Inc. or any of its Subsidiaries is entered for the payment
of money in excess of $5,000,000 (other than any money judgment covered in full by
insurance) and, absent procurement of a stay of execution, such judgment remains
unsatisfied for sixty calendar days after the date of entry of judgment, or in any event
later than five days prior to the date of any proposed sale thereunder; or any writ or
warrant of attachment or execution or similar process is issued or levied against all or
any part of the Property of any such Person and is not released, vacated or fully bonded
within sixty calendar days after its issue or levy.



8.9    Government Action. Any
government authority takes action that materially adversely affects the Borrowers or
any guarantors financial condition or ability to repay the loan.


8.10   Default under Related
Documents. Any default occurs under any guaranty, or other document required by or
delivered in connection with this Agreement or any such document is no longer in effect,
or any guarantor purports to revoke or disavow the guaranty.


8.11   Other Breach Under
Agreement. The Borrower fails to perform any obligation under, any term of this
Agreement not specifically referred to in this Article.


     9.    
          ENFORCING THIS AGREEMENT; MISCELLANEOUS


9.1    GAAP. Except as otherwise
stated in this Agreement, all financial information provided to the Bank and all financial
covenants will be made under generally accepted accounting principles, consistently
applied.


9.2    California Law.This
Agreement is governed by California law.


9.3    Successors and Assigns.
This Agreement is binding on the Borrowers and the Banks successors and
assignees. The Borrower agrees that it may not assign this Agreement without the
Banks prior consent. The Bank may sell participations in or assign this loan, and
may exchange financial information about the Borrower with actual or potential
participants or assignees; provided (i) that such assignee shall be approved by the
Borrower (such approval not to be unreasonably withheld or delayed) unless an event of
default or default has occurred and is continuing and (ii) such participant or assignee
shall have entered into a confidentiality agreement satisfactory to the Borrower. If a
participation is sold or the loan is assigned, the purchaser will have the right of
set-off against the Borrower.


9.4    Severability; Waivers. If
any part of this Agreement is not enforceable, the rest of the Agreement may be enforced.
The Bank retains all rights, even if it makes a loan after default. If the Bank waives a
default, it may enforce a later default. Any consent or waiver under this Agreement must
be in writing.


9.5    Attorneys Fees. The
Borrower shall reimburse the Bank for any reasonable costs and attorneys fees
incurred by the Bank in connection with the enforcement or preservation of any rights or
remedies under this Agreement and any other documents executed in connection with this
Agreement, and in connection with any amendment, waiver, workout or
restructuring under this Agreement. In the event of a lawsuit or arbitration proceeding,
the prevailing party is entitled to recover costs and reasonable attorneys fees
incurred in connection with the lawsuit or arbitration proceeding, as determined by the
court or arbitrator. In the event that any case is commenced by or against the Borrower
under the Bankruptcy Code (Title 11, United States Code) or any similar or successor
statute, the Bank is entitled to recover costs and reasonable attorneys fees
incurred by the Bank related to the preservation, protection, or enforcement of any rights
of the Bank in such a case. As used in this paragraph, attorneys fees
includes the allocated costs of the Banks in-house counsel.


9.6    JURY TRIAL WAIVER. EACH
PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND
EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS
AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.



9.7    One Agreement.This
Agreement and the Guaranty collectively:


     (a)    
          represent the sum of the understandings and agreements between the Bank and the
          Borrower concerning this credit;


     (b)    
          replace any prior oral or written agreements between the Bank and the Borrower
          concerning this credit; and


     (c)    
          are intended by the Bank and the Borrower as the final, complete and exclusive
          statement of the terms agreed to by them.


In the event of any conflict between
this Agreement and any other agreements required by this Agreement, this Agreement will
prevail. Any reference in any related document to a promissory note or a
note executed by the Borrower and dated as of the date of this Agreement shall
be deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed,
or restated.


9.8    Indemnification. The
Borrower will indemnify and hold the Bank harmless from any loss, liability, damages,
judgments, and costs of any kind relating to or arising directly or indirectly out of (a)
this Agreement or any document required hereunder, (b) any credit extended or committed by
the Bank to the Borrower hereunder, and (c) any litigation or proceeding related to or
arising out of this Agreement, any such document, or any such credit, except to the extent
caused by the gross negligence or willful misconduct of the Bank or other indemnified
party or as to any claim by an indemnified person to the extent the Borrower prevails on
that claim. This indemnity includes but is not limited to reasonable attorneys fees
(including the allocated cost of in-house counsel). This indemnity extends to the Bank,
its parent, subsidiaries and all of their directors, officers, employees, agents,
successors, attorneys, and assigns. This indemnity will survive repayment of the
Borrowers obligations to the Bank.


9.9    Notices. Unless otherwise
provided in this Agreement or in another agreement between the Bank and the Borrower, all
notices required under this Agreement shall be personally delivered or sent by first class
mail, postage prepaid, or by overnight courier, to the addresses on the signature page of
this Agreement, or sent by facsimile to the fax numbers listed on the signature page, or
to such other addresses as the Bank and the Borrower may specify from time to time in
writing. Notices and other communications sent by (a) first class mail shall be deemed
delivered on actual receipt, (b) overnight courier shall be deemed delivered on actual
receipt, and (c) telecopy shall be deemed delivered when transmitted, with receipt
confirmed by answerback.


9.10   Headings. Article and
paragraph headings are for reference only and shall not affect the interpretation or
meaning of any provisions of this Agreement.


9.11   Counterparts. This
Agreement may be executed in as many counterparts as necessary or convenient, and by the
different parties on separate counterparts each of which, when so executed, shall be
deemed an original but all such counterparts shall constitute but one and the same
agreement.



This Agreement is executed as of the
date stated at the top of the first page.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|BANK OF AMERICA, N.A. |                      | COAST HOTELS AND CASINOS, INC.
|--------------------- | -------------------- | ------------------------------
|By                    | /s/  Peter J. Vitale |                               
|Typed Name            | Peter J. Vitale      |                               
|Title                 | Vice President       |                               

|By         |  |  | Address where notices to the Borrower are to be sent:
|---------- |  |  | -----------------------------------------------------
|Typed Name |  |  |                                                      
|Title      |  |  |                                                      
|           |  |  |                                                      
|           |  |  |                                                      

|Address where notices to the Borrower are to be sent: |  | Borrower's place of business (or chief executive office, if more
 than one place of business), if different from address listed above:
|----------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------
|                                                      |  |                                                                                                                                       
|                                                      |  |                                                                                                                                       
|                                                      |  |                                                                                                                                       
|                                                      |  |