Document:

<PAGE>

                                                                   EXHIBIT 10.8

                                                                 AUGUST 3, 2000

James J. Rafferty
P.O. Box 518
Glenbrook, NV 89413-0518

                            EXECUTIVE RETENTION AWARD
Dear Jim:

     We are pleased to inform you that you have been selected to participate
in the executive retention program (the "Retention Program") recently
approved by the Board of Directors of Harveys Casino Resort, a Nevada
Corporation (together with any successor thereto, the "Company"). All
capitalized terms used herein shall have the meaning assigned to them in
Annex A, unless otherwise indicated.

     As you know, the Company, by and through subsidiaries, has entered into
merger agreements (as the same may be amended, supplemented or superseded
from time to time, the "Merger Agreement") pursuant to which the Company
expects to purchase 100% of the equity of Pinnacle Entertainment, Inc.,
subject to obtaining all required regulatory approvals and other consents
(the "Transaction"). The Retention Program has been implemented to provide
you with additional incentives to assist the Company in consummating the
Transaction and to otherwise perform the duties of your employment during
this period of transition. The Retention Program is also designed to provide
you with certain enhanced benefits in the event of certain terminations of
your employment, as described herein. Pursuant to the Retention Program, you
will be entitled to the following payments and benefits, on and subject to
the terms and conditions set forth below

     (1) RETENTION BONUS. You will be entitled to a special retention bonus
of $83,333.00 in addition to any other bonuses to which you are entitled
under the Company's regular incentive plans if (a) the Transaction is
consummated in accordance with the Merger Agreement and (b) you remain
continuously employed by the Company until the date the Transaction is
consummated ("Acquisition Effective Date"). The special retention bonus will
be payable to you in one lump sum cash payment as soon as reasonably
practicable, but not more than ten (10) business days following the
Acquisition Effective Date. In addition, if (a) the Transaction is
consummated in accordance

                                       1

<PAGE>

with the Merger Agreement and (b) you are terminated by the Company without
Cause (other than any such termination due to your disability) at any time
after the date hereof and prior to the Acquisition Effective Date, you will
also be entitled to the same bonus. In addition, notwithstanding any
provision of the Management Incentive Plan (MIP), you shall be entitled to
receive, as soon as reasonably practicable, in no event more than ten (10)
business days following the date you are terminated by the Company without
Cause (other than any such termination due to your disability), any Annual
Bonus accrued under the MIP but unpaid for any fiscal year of employer ending
on or prior to the date of your termination, notwithstanding Paragraph 9 of
the Plan requiring employment on the day of the actual payment of the MIP
Annual Bonus.

     (2) ACCELERATION OF EQUITY AWARDS. All of your outstanding Stock Awards
and Option Awards except your Incentive Stock Grant Shares will become fully
vested and will be cancelled in exchange for the cash payment described below
if (a) the Transaction is consummated in accordance with the Merger Agreement
and (b) your employment with the Company is terminated by the Company without
Cause (other than termination due to your disability) at any time after the
date hereof and prior to the one (1) year anniversary of the Acquisition
Effective Date. The amount of such cash payment shall equal the sum of the
amounts described in subparagraphs (A) and (B) and, if applicable, (C), (D)
and (E) below, to be paid as set forth below:

     (A)  an amount equal to the product of (i) the Transaction Share Price
          multiplied by (ii) the number of shares of Class A Common Stock and
          Class B Common Stock subject to each cancelled Stock Award;

     (B)  an amount equal to the product of (i) (x) the excess of the
          Transaction Share Price over (y) the exercise price per share of Class
          A Common Stock or Class B Common Stock, as applicable, applicable
          under each cancelled Stock Option multiplied by (B) the number of
          shares of Class A Common Stock or Class B Common Stock, as applicable,
          subject to such cancelled Stock Options immediately prior to the
          cancellation thereof;

     (C)  solely in the event your termination of employment occurs prior to the
          Acquisition Effective Date, an amount equal to the product of (i) the
          Transaction Share Price multiplied by (ii) the number of shares of
          Class A Common Stock and Class B Common Stock that were subject to
          those Stock Awards that were forfeited by you as of the date of such
          termination of your employment in accordance with your Award
          Agreement;

     (D)  solely in the event your termination of employment occurs prior to the
          Acquisition Effective Date, an amount equal to the product of (i)(x)
          the excess of the Transaction Share Price over (y) the exercise price
          per share of Class A Common Stock or Class B Common Stock, as
          applicable, subject to each Option Award that was forfeited by you as
          of the date of such termination of your employment in accordance with
          your Award Agreement

                                        2

<PAGE>

          multiplied by (ii) the number of shares of Class A Common Stock or
          Class B Common Stock, as applicable, subject to such terminated Option
          Award immediately prior to the termination thereof; and

     (E)  solely in the event your termination of employment occurs prior to the
          Acquisition Effective Date, an amount equal to the product of (i) (x)
          the excess of the Transaction Share Price over (y) the exercise price
          per share of Class A Common Stock or Class B Common Stock, as
          applicable, subject to each Option Award that remained outstanding
          following the date of such termination of your employment but expired
          prior to the Acquisition Effective Date without having been exercised
          multiplied by (ii) the number of shares of Class A Common Stock or
          Class B Common Stock, as applicable, subject to such expired Option
          Award immediately prior to the expiration thereof.

     Such payment shall be made in five installments, with the first such
installment payable as soon as reasonably practicable, but no more than ten
(10) business days, after the Acquisition Effective Date, and equal to the
greater of (i) twenty percent (20%) of the full amount of such payment and
(ii) the aggregate income taxes payable by you with respect to the
accelerated vesting of the Stock Award pursuant to this letter. The balance
of the amount payable to you pursuant to this letter shall be paid in four
(4) equal installments, with interest at an annual rate of twelve percent
(12%) on each of the first four (4) Anniversaries of the Acquisition
Effective Date.

     Each Incentive Stock Grant Share that has been awarded to you, with
respect to the Bluffs Run Casino Acquisition Project shall remain outstanding
following your Termination Date until the expiration of the performance
period governing the accelerated vesting of such Incentive Stock Grant Share.
If all objectives of such Incentive Stock Grant Share are achieved so that
there is no longer a risk of forfeiture on or prior to the end of such
performance period, the Company shall cancel such Incentive Stock Grant Share
in exchange for a cash payment equal to the product of the number of
Incentive Stock Grant Shares so canceled, and the Transaction Share Price.
Such payment shall be made to you in installments, with the first such
installment payable as soon as reasonably practicable, but no more than ten
(10) business days, after delivery to the Board of the Financial Statements
necessary to determine if the performance objectives have been achieved and
equal to the greater of (i) the Applicable Percentage (as defined below) of
the full amount of such payment; and (ii) the aggregate income taxes payable
by you with respect to the accelerated vesting of such Incentive Stock Grant
Shares. The balance of the amount payable to you in respect of the
cancellation of such Incentive Stock Grant Shares shall be paid in equal
installments, with interest at the annual rate of twelve percent (12%), on
each anniversary of the Termination Date thereafter, such that the total
amount so payable shall be paid in full as of the fourth anniversary of the
Termination Date. If (i) any of the objectives for accelerated vesting of
such Incentive Stock Grant Share are not achieved as of the end of such
performance period, or (ii) your employment shall have been terminated prior
to the Acquisition Effective Date by the Company without Cause, or due to
your Death or Disability and thereafter the Merger is canceled or not
consummated, all of your rights

                                       3

<PAGE>

with respect to such non-vested Incentive Stock Grant Shares shall be
forfeited and canceled immediately without payment or other consideration to
you. The term "Applicable Percentage" shall mean the quotient expressed as a
percentage of (i) the number of days from the Termination Date is the last
day of the applicable performance period divided by (ii) One Thousand Four
Hundred Sixty (1,460). The Company's obligation to make payments under this
Paragraph (2) shall be delayed to the extent that the Company is restricted
in making such payments under its financing arrangements. Any delayed
payments shall accrue interest at an annual rate of twelve percent (12%)
during the period of delay.

          (3) SEVERANCE BENEFITS. If (a) the Transaction is consummated in
     accordance with the Merger Agreement and (b) your employment with the
     Company is terminated by the Company without Cause (other than any such
     termination due to your disability) at any time after the date hereof and
     prior to the one year anniversary of the Acquisition Effective Date, you
     will be entitled to severance benefits consisting of continued payments of
     your base salary at the rate in effect at the date of your termination for
     one year and continued medical, dental and vision coverage for one year on
     substantially the same terms and conditions (including requirements
     concerning co-payments, deductibles, etc.) as immediately prior to such
     termination. The severance benefits payable under this Paragraph 3 shall be
     reduced by the amount of any severance benefits payable to you under any
     other severance or employment arrangement or agreement applicable to you.

     You hereby covenant and agree that, in consideration of the payments and
benefits described herein, during your employment with the Company and for
the one year period following the date of your termination of employment at
any time prior to the first anniversary of the Acquisition Effective Date and
for any or no reason, you shall not at any time in the Lake Tahoe Geographic
Area or for or in respect of any entity which, directly or indirectly,
including through affiliates, has operations in the Lake Tahoe Geographic
Area directly or indirectly, (i) engage in any business for your own account
that is competitive with the business of the Company, or its subsidiaries,
affiliates, or assigns, of owning, operating, managing and/or developing
hotel/casinos (the "Business"); (ii) enter the employ of, or render any
consulting services to, any entity that competes with the Company, or its
subsidiaries, affiliates, successors, or assigns, in the Business; or (iii)
become interested in any such entity in any capacity, including, without
limitation, as an individual, partner, shareholder, officer, director,
principal, agent, trustee or consultant; PROVIDED, HOWEVER, you may (A) own,
directly or indirectly, solely as a passive investment, securities of any
entity traded on any national securities exchange or market if you are not a
controlling person of, or a member of a group which controls, such entity and
does not, directly or indirectly, own 5% or more of any class of securities
of such entity, and (B) be employed by an entity which has a hotel/casino or
casino in the Lake Tahoe Geographic Area provided (i) you use no
confidential, proprietary or competitive information of the Company, and (ii)
you are not employed at or have direct supervisory responsibilities over
operations at said facility.

                                       4

<PAGE>

     You hereby further covenant and agree that, in consideration of the
payments and benefits described herein, during your employment with the
Company and thereafter, you shall not, publicly or privately, disparage or
otherwise make any derogatory statement (whether written or oral) in respect
of the Company or any of its subsidiaries or affiliates, including, without
limitation, Colony Capital, Inc., its employees, owners and affiliates, or
the conduct of any of their respective business or professional activities,
except to the extent required (i) by an order of a court having jurisdiction
or under subpoena from an appropriate government agency, in which event, you
shall use use best efforts to consult with the Board of Directors of the
Company prior to responding to any such order or subpoena, and (ii) to
litigate any claim against the Company for failure to pay any amount due to
you under the terms of this letter agreement, your employment agreement or
other agreement with the Company or a Company benefit plan in which you are a
participant.

     Your entitlement to receive any of payments or benefits under this
letter agreement is conditioned upon (i) your signing and returning to the
Company a general release of claims in form and substance substantially as
set forth on Annex B attached hereto and incorporated herein by reference, in
the case of the payments and benefits described in Paragraphs (2) and (3),
and (ii) your compliance with your covenants and agreements hereunder. In the
event of your breach of any such covenants or agreements, the Company shall
be entitled to obtain injunctive relief (without requirement of posting a
bond) in addition to any other relief to which it may be entitled.

     The Company will require any successor (by purchase, merger,
consolidation or otherwise) to all or substantially all of its business
and/or assets to assume and agree to perform this letter agreement in the
same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. During the effective period
of this letter agreement, the geographic area and other portions of your then
existing covenant not to compete will be superseded. Your confidentiality
agreement and the remaining terms of your employment agreement shall not be
superseded. This letter agreement constitutes the entire agreement between
the parties hereto with respect to the subject matter hereof, and all
promises, representations, understandings, arrangements and prior
arrangements relating to such subject matter are merged herein and superseded
hereby.

     This letter agreement shall be binding on and inure to the benefit of
the Company and its successors and permitted assigns. This letter agreement
shall also be binding on and inure to the benefit of you and your heirs,
executors, administrators and legal representatives.

     This letter agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without reference to principles of
conflicts of laws which would require the application of the laws of another
jurisdiction.

                                       5

<PAGE>

     If you are in agreement with the terms and conditions set forth herein,
please indicate your agreement to be bound hereby by executing this letter
agreement in the space provided below and returning the fully executed letter
agreement by facsimile and U.S. Mail to: to Ron Alling, Scarpello & Alling,
Ltd., P.O. Box 3390, Stateline, NV 89449-3390 Fax (775) 588-4970.

                                       HARVEYS CASINO RESORTS,
                                       a Nevada corporation.

                                       By: /s/ Charles W. Scharer
                                           ---------------------------------
                                           CHARLES W. SCHARER
                                           President/Chief Executive Officer

     Accepted and agreed this 29th day of August, 2000.

     /s/ James J. Rafferty
     ---------------------
     JAMES J. RAFFERTY

                                       6

<PAGE>

                                                                        ANNEX A

     For the purposes of this letter agreement and the Retention Program, the
following terms shall have the following meanings:

     "Award Agreement" shall mean the Management Stock Option and Restricted
     Stock Agreement, dated as of February 2, 1999, between you and the Company.
     "Cause" shall mean (A) gross negligence or willful malfeasance in the
     performance of your duties to the Company (B) conviction of any felony or
     conviction of a crime involving moral turpitude; (C) dishonesty with
     respect to the Company (including, without limitation, fraud); (D) use or
     imparting of any confidential or propriety information of the Company or
     any subsidiary or affiliate in violation of the Company's policy regarding
     confidentiality or any confidentiality or proprietary agreement to which
     you are party, which act or actions have a material adverse affect on the
     Company; or (E) failure to obtain or retain any permits, licenses, or
     approvals which may be required by any state or local authorities in order
     to permit you to continue your employment with the Company.

     "Class A Common Stock" shall mean the Class A common stock, par value $.01
     per share the Company.

     "Class B Common Stock" shall mean the Class B common stock, par value $.01
     per share the Company.

     "Stock Award" shall mean the restricted stock granted to you by the Company
     pursuant to the Award Agreement.

     "Option Award" shall mean the options to purchase shares of Class A and
     Class B Common Stock granted to you by the Company pursuant to the Award
     Agreement.

     "Transaction Share Price" shall mean (i) for purposes of calculating a
     payment under clause (A) or (B) of Paragraph 2 of the letter agreement,
     $43.45 and (ii) for purposes of calculating a payment under clause (C), (D)
     or (E) of Paragraph 2 of the letter agreement, $54.12 (i.e., the per share
     value of the Class A and Class B Common Stock prior to the increase in the
     capitalization of the Company in connection with the Transaction).

                                       7

<PAGE>

                                                                        ANNEX B

                         CONFIDENTIAL RELEASE AGREEMENT

     WHEREAS, James J. Rafferty (the "Executive") is party to an Employment
Agreement, dated as of ____________________ and a Retention Agreement dated
as of ___________________, both with Harveys Casino Resorts, a Nevada
corporation (the "Company") (said Employment Agreement and the Retention
Agreement, as each may be amended from time to time, are collectively
referred to herein as the "Agreements"); and

     WHEREAS, the Executive's employment with the Company has been terminated
and, in connection therewith, the Executive is entitled to receive certain
payments and benefits pursuant to the Agreements (such payments and benefits
referred to herein as the "Termination Benefits"); and

     WHEREAS, it is a condition to the obligation of the Company to pay the
Termination Benefits to the Executive that the Executive execute and deliver
to the Company this Confidential Release Agreement (the "Release Agreement");

     NOW, THEREFORE, in consideration of the payment to the Executive of the
Termination Benefits, each of the Executive and the Company hereby agree as
follows:

     1. CERTAIN DEFINED TERMS. Capitalized terms used herein without
definition shall have meanings assigned thereto in the Agreements, as
applicable.

     2. EXECUTIVE'S RESIGNATION. The Executive's employment with the Company
is terminated [STATE TYPE OF TERMINATION] and Executive hereby resigns from
each of his

                                       8

<PAGE>

employment positions with the Company or any of its Affiliates, effective on
___________________ (the "Date of Termination"). The Executive shall execute
and deliver such documents evidencing his resignation hereunder as the
Company may reasonably request.

(3)      EXECUTIVE'S GENERAL RELEASE AND WAIVER.

         (a) THE EXECUTIVE, ON HIS OWN BEHALF AND ON BEHALF OF HIS AGENTS,
REPRESENTATIVES, ASSIGNS, HEIRS, EXECUTORS AND ADMINISTRATORS (COLLECTIVELY,
THE "EXECUTIVE RELEASORS") HEREBY RELEASES, REMISES AND ACQUITS THE COMPANY,
EACH OF ITS AFFILIATES AND EACH OF ITS AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, SHAREHOLDERS, MEMBERS, AGENTS, EMPLOYEES, CONSULTANTS, INDEPENDENT
CONTRACTORS, ATTORNEYS, ADVISERS, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE
"COMPANY RELEASEES"), JOINTLY AND SEVERALLY, FROM ANY AND ALL CLAIMS, CAUSES
OF ACTION, CHARGES, COMPLAINTS, DEMANDS, COSTS, RIGHTS, LOSSES, DAMAGES AND
OTHER LIABILITY WHATSOEVER, KNOWN OR UNKNOWN (COLLECTIVELY, THE "CLAIMS"),
WHICH THE EXECUTIVE HAS OR MAY HAVE AGAINST ANY COMPANY RELEASEE ARISING ON
OR PRIOR TO THE DATE OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, CLAIMS
IN RESPECT OF DISMISSAL, REDUNDANCY, BREACH OF CONTRACT, DISABILITY,
DISCRIMINATION, UNLAWFUL DEDUCTION FROM WAGES, BREACH OF RIGHTS OF
ENTITLEMENTS UNDER THE UNITED

                                       9

<PAGE>

STATES AGE DISCRIMINATION IN EMPLOYMENT ACT, THE UNITED STATES AMERICANS WITH
DISABILITIES ACT OF 1990, THE UNITED STATES FAMILY AND MEDICAL LEAVE ACT OF
1993, TITLE VII OF THE UNITED STATES CIVIL RIGHTS ACT OF 1964,42 U.S.C.
SECTION 1981, THE LAWS OF THE STATE OF NEVADA AND ANY WORKERS COMPENSATION OR
DISABILITY CLAIMS OR ANY OTHER FEDERAL, STATE, OR LOCAL LAW, OTHER THAN THE
EXCLUDED CLAIMS (AS DEFINED BELOW). THE EXECUTIVE FURTHER AGREES THAT THE
EXECUTIVE WILL NOT FILE OR PERMIT TO BE FILED ON THE EXECUTIVE'S BEHALF ANY
SUCH CLAIM. NOTWITHSTANDING THE PRECEDING SENTENCE OR ANY OTHER PROVISION OF
THIS RELEASE AGREEMENT, THIS RELEASE IS FOR ANY RELIEF, NO MATTER HOW
DENOMINATED, INCLUDING, BUT NOT LIMITED TO, INJUNCTIVE RELIEF, WAGES, BACK
PAY, FRONT PAY, COMPENSATORY DAMAGES, AND PUNITIVE DAMAGES. NOTWITHSTANDING
ANYTHING HEREIN TO THE CONTRARY, THIS RELEASE SHALL NOT APPLY TO ANY EXCLUDED
CLAIM.

     (b) THE EXECUTIVE ACKNOWLEDGES THAT THE TERMINATION BENEFITS THE
EXECUTIVE IS RECEIVING IN CONNECTION WITH THE FOREGOING RELEASE ARE IN
ADDITION TO ANYTHING OF VALUE TO WHICH THE EXECUTIVE IS ALREADY ENTITLED FROM
THE COMPANY OR ANY OF ITS AFFILIATES OR ANY COMPANY RELEASEE.

     (c) For purposes of this Agreement, the term "Excluded Claims" means
claims

                                       10

<PAGE>

to enforce any of the Executive's rights under or pursuant to this Release
Agreement, the Agreements, the Amended Award Agreement dated the ___ day of
______________, the Incentive Stock Grant Plan dated the ____ day of
_________________, the Amended Deferred Compensation Agreement dated the ____
day of __________________, the Supplemental Executive Retirement Plan or
[the Company's D&O indemnification arrangements].

4.  KNOWING AND VOLUNTARY WAIVER BY THE EXECUTIVE. The Executive acknowledges
that, by his free and voluntary act of signing below, the Executive agrees to
all of the terms of this Release Agreement and intends to be legally bound
thereby.

5.  ACKNOWLEDGMENT BY THE EXECUTIVE OF HIS RIGHT TO CONSIDER AND REVOKE THIS
RELEASE; EFFECTIVE DATE OF THIS AGREEMENT.

    (a) The Executive understands, agrees and acknowledges that:

         A. He has been advised and encouraged by the Company to have this
Release Agreement reviewed by legal counsel of the Executive's own choosing
and that he has been given ample time to do so prior to his signing this
Release Agreement;

         B. He has been provided at least twenty-one (21) days to consider
this Release Agreement and to decide whether to agree to the terms contained
herein;

         C. He will have the right to revoke this Release Agreement during
the seven (7) day period following the date the Executive signs this Release
Agreement by giving written notice of his revocation to ________ of the
Company at [DELIVERY ADDRESS] on or prior to the seventh day after the date
the Executive signs this Release

                                       11

<PAGE>

Agreement and if the Executive exercises his right to revoke this Release
Agreement, he will forfeit his right to receive any of the Termination
Benefits;

         D. The Termination Benefits provided herein will not be paid to the
Executive until at least eight (8) days after the Executive signs this
Release Agreement and will be paid only if the Executive does not revoke this
Release Agreement pursuant to C above; and

         E. By signing this Release Agreement, the Executive represents that
he fully understands the terms and conditions of this Release Agreement and
intends to be legally bound by them.

     (b) This Release Agreement will become effective, enforceable and
irrevocable seven (7) days after the date on which it is executed by the
Executive and provided it is not revoked by the Executive during such seven
(7) day period (the "Effective Date").

6.   GOVERNING LAW. This Release Agreement shall be governed by and construed
in accordance with the laws of the State of Nevada without reference to
principles of conflicts of laws.

7.   SEVERABILITY. The parties hereto intend that the validity and
enforceability of any provision of this Release Agreement shall not affect or
render invalid any other provision hereof.

8.   BINDING AGREEMENT. This Release Agreement shall be binding on and shall
inure to the benefit of the parties hereto and their respective heirs,
administrators, representatives, executors, successors and assigns.

IN WITNESS WHEREOF, each of the Executive and the Company, by its duly

                                       12

<PAGE>

authorized representative, has caused this Release Agreement to be executed
as of this _______ day of ________________________, 2000.

                                   HARVEYS CASINO RESORTS, a Nevada corporation

                                   By:
                                       -------------------------------
                                   Title:
                                         -----------------------------

                                   EMPLOYEE

                                   -----------------------------------
                                   James J. Rafferty

                                       13<PAGE>

                                                                  EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT (the "Agreement") is made and entered into this
21 day of July, 2000, (the "Commencement Date") by and between HARVEYS CASINO
RESORTS, a Nevada corporation, hereinafter referred to as "HARVEYS" and/or
"EMPLOYER," and JAMES J. RAFFERTY, hereinafter referred to as "EMPLOYEE":

                                  WITNESSETH:
                                  -----------

     WHEREAS, HARVEYS desires to continue to secure the benefits of
EMPLOYEE's background, knowledge, experience, ability, expertise and industry
to promote and maintain HARVEYS' stability, growth, viability and
profitability; and

     WHEREAS, HARVEYS desires to continue to engage the services of EMPLOYEE
who is desirous of being employed by HARVEYS under the terms and conditions
as herein set out; and

     NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements herein contained, together with other good and valuable consideration
the receipt of which is hereby acknowledged, the parties hereto do hereby agree
as follows:
                                       I
                                  DEFINITIONS
                                  -----------

     1.01 EMPLOYEE shall at all times mean JAMES J. RAFFERTY.

     1.02 EMPLOYER shall at all times mean HARVEYS CASINO RESORTS, a
Nevada corporation, and its Successors in Interest together with its
subsidiaries.

     1.03 HARVEYS shall at all times mean HARVEYS CASINO RESORTS, a Nevada
corporation, and its Successors-in-Interest together with its subsidiaries.

     1.04 Successor in Interest shall mean any entity which is the successor
or assign of HARVEYS, at law or at equity, and shall include without limitation,
any entity into which

                                       1

<PAGE>

HARVEYS is merged or consolidated, and any entity to which all or
substantially all of the assets or businesses of HARVEYS are transferred.

                                     II

                 NATURE OF EMPLOYMENT AND DUTIES OF EMPLOYEE
                 -------------------------------------------

     2.01 Effective upon the Commencement Date of this Agreement, EMPLOYEE
shall remain Senior Vice-President of Corporate Marketing of HARVEYS CASINO
RESORTS, or assume such other position as determined by the President/Chief
Executive Officer of HARVEYS. EMPLOYEE shall do and perform all services, acts,
or things necessary or advisable to assist in the management and conduct of the
business of EMPLOYER, subject always to the policies as set forth by the Board
of Directors.

     2.02 EMPLOYEE shall be responsible for developing Harveys' strategic
marketing plans and focus for each property and corporate organization to ensure
achievement of market share and awareness goals, and database growth and
utilization; for product and service developments, enhancements, and alliances
in order to develop a competitive advantage in each market; create and cultivate
corporate communications systems and programs to improve communications among
customer markets, employees, senior management and the Board of Directors, and
such other responsibilities or duties that HARVEYS may assign from time to time.

     2.03 EMPLOYEE has reviewed and concurs with his responsibilities and
duties as set forth in Section 2.02 above.

     2.04 EMPLOYEE shall devote his entire productive time, ability and
attention to the business of EMPLOYER during the term of this Agreement.
EMPLOYEE shall not directly or

                                       2

<PAGE>

indirectly render any service of a business, commercial or professional nature,
to any other person or organization, whether for compensation or otherwise,
without the prior written consent of the President/Chief Executive Officer of
HARVEYS except that EMPLOYEE shall not be precluded from involvement in
charitable or civic activities or his personal financial investments provided
the same do not interfere with EMPLOYEE's time or attention to the business of
EMPLOYER.

     2.05 EMPLOYEE agrees, to the best of his ability and experience, to at
all times conscientiously perform all of the duties and obligations expressly
required of EMPLOYEE.

                                    III

                             TERM OF EMPLOYMENT
                             ------------------

     3.01 EMPLOYER hereby employs EMPLOYEE, and EMPLOYEE hereby agrees to be
employed by EMPLOYER for a period of at least one (1) year commencing on the
Commencement Date, and terminating on the 18th day of July, 2001. This Agreement
may be terminated earlier as hereinafter provided or may be extended or modified
only by written document signed by both parties hereto specifically referencing
this instrument.

                                      IV

                     TERMINATION OF EMPLOYMENT WITHOUT CAUSE
                     ---------------------------------------

     4.01 EMPLOYEE may be terminated at any time, without cause, or as
referenced in Paragraph 5 herein, by EMPLOYER on thirty (30) days' prior written
notice to EMPLOYEE. In the event of such termination without cause, EMPLOYEE
shall continue to be paid EMPLOYEE's annual salary as set forth in Paragraph
6.01, as such salary may be modified from time to time, and continue

                                       3

<PAGE>

to receive medical, vision and dental benefits as set forth in Paragraph 7.06
for the balance of the contract term, or twelve (12) months, whichever is
lesser.

     4.02 EMPLOYEE may, at EMPLOYEE's option and right, terminate this
Agreement at any time by giving HARVEYS thirty (30) days prior written notice.
Upon any such termination of this Agreement by EMPLOYEE, EMPLOYER shall be under
no obligation to EMPLOYEE except to pay EMPLOYEE's then annual salary and
perquisites for services performed up to the effective date of termination.

     4.03 If during the term hereof EMPLOYEE shall die or become disabled,
EMPLOYEE shall be entitled to such death and/or disability benefits that may be
due EMPLOYEE under any benefit plans of EMPLOYER in effect from time to time in
which EMPLOYEE is eligible to participate.

                                         V

                        TERMINATION OF EMPLOYMENT FOR CAUSE
                        -----------------------------------

     5.01 EMPLOYER may at any time, at its election, by providing written
notice to EMPLOYEE stating with specificity the reason for the termination,
immediately terminate this Agreement and the employment term should EMPLOYEE:

         (a)   be negligent or willfully malfeasant in the performance of
EMPLOYEE's duties to EMPLOYER set forth in Article II hereof;

         (b)   be convicted of any felony or a crime involving moral turpitude;

         (c)   be dishonest with respect to EMPLOYER (including without
limitation, fraud);

         (d)   use or impart any confidential or proprietary information of
EMPLOYER or any of its subsidiaries or affiliates in violation of EMPLOYER's
policy regarding confidentiality or

                                       4

<PAGE>

any confidentiality or proprietary agreement to which EMPLOYER is a party,
which act or actions have a material adverse affect on EMPLOYER; or

         (e)   fail to obtain or retain any permits, licenses, or approvals
which may be required by any state or local authorities in order to permit
EMPLOYEE to continue employment as contemplated by this Agreement.

     Upon the occurrence of any of the above, at EMPLOYER's sole option,
EMPLOYEE's employment shall immediately terminate and EMPLOYER shall be under no
further obligation to EMPLOYEE except to pay EMPLOYEE his annual salary for such
services as may have been performed up to the date of such termination.

                                       VI

                           COMPENSATION OF EMPLOYEE
                           ------------------------

     6.01 ANNUAL SALARY - EMPLOYEE shall receive an annual salary of TWO
HUNDRED TWENTY FIVE THOUSAND AND 00/100 DOLLARS ($225,000.00), payable in at
least monthly installments, less all applicable Federal, State and Local Taxes,
Social Security and any other government mandated deductions. EMPLOYEE's annual
salary shall be subject to an annual review, as determined by EMPLOYEE's direct
supervisor, and the President/Chief Executive Officer of HARVEYS within the
parameters set forth by HARVEYS Board of Directors.

                                        VII

                                 OTHER PERQUISITES
                                 -----------------

     7.01   HARVEYS 401(k) PLAN - During the employment term, EMPLOYEE shall be

                                       5

<PAGE>

allowed to participate in HARVEYS 401(k) Plan as such plan may be in effect
and amended from time to time.

     7.02 VACATION - As of the Commencement Date, EMPLOYEE'S allowable
vacation shall be increased to four (4) weeks. EMPLOYEE shall be entitled to
holiday pay in accordance with EMPLOYER's policy for EMPLOYEE's position as may
be in place from time to time, with credit being given as of EMPLOYEE's original
hire date.

     7.03 COMPLIMENTARY PRIVILEGES - EMPLOYEE shall be entitled to Level I
complimentary privileges as are afforded all other corporate employees of equal
job code.

     7.04 AUTOMOBILE - EMPLOYER shall provide EMPLOYEE with an automobile in
accordance with the Class Two category of EMPLOYER's Standard Automobile Policy
and Procedures, as from time to time amended.

     7.05 MANAGEMENT INCENTIVE PLAN (MIP) - EMPLOYEE shall be eligible to
participate in EMPLOYER's Management Incentive Plan as such plan may be in
effect or amended from time to time.

     7.06 MEDICAL, VISION AND DENTAL INSURANCE - EMPLOYER shall provide
medical, vision and dental benefits to EMPLOYEE and EMPLOYEE's spouse and
dependents in accordance with EMPLOYER's Class I coverage under EMPLOYER's
Executive Medical Plan, as such plan may be in effect or amended from time to
time.

     7.07 DEFERRED COMPENSATION PROGRAM - EMPLOYEE shall be allowed to
participate in EMPLOYER's Deferred Compensation Program as said program may be
in effect or amended from time to time.

     7.08 GROUP LIFE INSURANCE - During the term of this Agreement, EMPLOYER
shall furnish

                                       6

<PAGE>

EMPLOYEE with Group Term Life Insurance and Accidental Death/Dismemberment
Insurance with the maximum benefit being equal to two (2) times EMPLOYEE's
annual salary, up to a maximum of $500,000.00.

     7.09 GROUP LONG TERM DISABILITY - During the term of this Agreement,
EMPLOYER shall furnish EMPLOYEE with Group Term Disability insurance in
accordance with EMPLOYER's then existing policy. The maximum insurance benefit
to be paid EMPLOYEE shall be sixty percent (60%) of EMPLOYEE's annual salary to
be paid for the duration of EMPLOYEE's permanent disability.

     7.10 STOCK OPTIONS AND STOCK GRANTS - EMPLOYEE's rights to stock
options and/or stock grants, are those set forth in the Management Stock Option
and Restricted Stock Agreement, dated as of February 2, 1999, as may be amended
from time to time and as supplemented by HARVEYS' Board of Directors pursuant to
Resolution 1999-5.

     7.11 SERP - EMPLOYEE shall be allowed to participate in EMPLOYER's
Supplemental Executive Retirement Program, as the same is amended from time to
time.
                                      VIII

                                   ARBITRATION
                                   -----------

     8.01 Except as necessary for EMPLOYER and its subsidiaries, affiliates,
successors or assigns or EMPLOYEE to specifically enforce or enjoin a breach of
this Agreement (to the extent such remedies are otherwise available), the
parties agree that any and all disputes that may arise in connection with,
arising out of or relating to this Agreement, or any dispute that relates in any
way, in whole or in part, to EMPLOYEE's employment with EMPLOYER or any
subsidiary, the termination of that employment or any other dispute by and
between the parties or their subsidiaries,

                                       7

<PAGE>

affiliates, successors or assigns, shall be submitted to binding arbitration in
Douglas County, Nevada according to the National Employment Dispute Resolution
Rules and procedures of the American Arbitration Association. The parties agree
that the prevailing party in any such dispute shall be entitled to reasonable
attorneys' fees, costs and necessary disbursements in addition to any other
relief to which he or it may be entitled. This arbitration obligation extends to
any and all claims that may arise by and between the parties or their
subsidiaries, affiliates, successors or assigns and expressly extends to,
without limitation, claims or causes of action for wrongful termination,
impairment of ability to compete in the open labor market, breach of an express
or implied contract, breach of the covenant of good faith and fair dealing,
breach of fiduciary duty, fraud, misrepresentation,  defamation, slander,
infliction of emotional distress, disability, loss of future earnings and claims
under the Nevada Constitution, the United States Constitution, and applicable
state and federal fair employment laws, federal and state equal employment
opportunity laws, and federal and state labor statutes and regulations,
including, but not limited to, the Civil Rights Act of 1964, as amended, the
Fair Labor Standards Act, as amended, the Americans With Disabilities Act of
1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee
Retirement Income Security Act of 1974, as amended, the Age Discrimination in
Employment Act of 1967, as amended, and other state or federal law.

                                        IX

                                  MISCELLANEOUS
                                  -------------

     9.01   This Agreement shall be construed and governed by the laws of the
State of Nevada.

     9.02   This Agreement, shall bind and inure to the benefit of the EMPLOYER,
its successors and assigns and EMPLOYEE, his heirs, executors and
administrators. No transfer or assignment of

                                       8

<PAGE>

this Agreement shall release EMPLOYER from any obligation to EMPLOYEE hereunder.

     9.03   Notices to or for the respective parties shall be given in writing
and delivered in person or mailed by certified or registered mail, addressed to
the respective party at the address as set out below, or at such other address
as either party may elect to provide in advance in writing, to the other party:

         EMPLOYEE:

              JAMES J. RAFFERTY
              Post Office Box 516
              Glenbrook, NV 89413

         EMPLOYER:

              HARVEYS CASINO RESORTS
              Attn: CHARLES W. SCHARER
              President/Chief Executive Officer
              Highway 50 and Stateline Avenue
              Post Office Box 128
              Stateline, NV 89449

         WITH A COPY TO:

              Ronald D. Alling, Esq.
              SCARPELLO & ALLING, LTD.
              276 Kingsbury Grade, Suite 2000
              Post Office Box 3390
              Stateline, NV 89449

     9.04   Should any provision of this Agreement be held to be invalid,
illegal, or unenforceable by reason of any rule of law or public policy, all
other provisions of this Agreement shall remain in effect. No provision of this
Agreement shall be deemed dependent on any other provision unless so

                                       9

<PAGE>

expressed herein.

     9.05   Nothing contained in this Agreement shall be construed to require
the commencement of any act contrary to law. Should any conflict between any
provision of this Agreement and any statute, law, ordinance, or regulation,
contrary to which the parties have no legal right to contract arise or exist,
then the latter shall prevail; but in such event, the provisions of this
Agreement so affected shall be curtailed and limited only to the extent
necessary to bring it within the legal requirements.

     9.06   The several rights and remedies provided for in this Agreement
shall be construed as being cumulative, and no one of them shall be deemed to
be exclusive of the others or of any right or remedy allowed by law. No
waiver by EMPLOYER or EMPLOYEE of any failure by EMPLOYEE or EMPLOYER,
respectively, to keep or perform any provision of this Agreement shall be
deemed to be a waiver of any preceding or succeeding breach of the same or
other provision.

     This Agreement supersedes any and all other agreements, either oral or
in writing, between the parties hereto with respect to the employment of
EMPLOYEE by EMPLOYER and, along with the other instruments executed concurrently
herewith, contain all of the covenants, conditions and agreements between the
parties with respect to such employment. Each party hereto acknowledges that no
representations, inducements, promises or other agreements excepting those
specifically set forth herein, oral or otherwise, have been made by any party,
or anyone acting on behalf of any party, which are not embodied herein, and that
no other agreement, statement or promise not contained in this Agreement shall
be valid or binding. Any addendum to or modification of this Agreement shall be
effective only if it is in writing and signed by the parties to be charged.

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

                                       10

<PAGE>

                  EMPLOYEE:

                       /s/ James J. Rafferty
                      ---------------------------------
                      JAMES J. RAFFERTY

                  EMPLOYER:

                      HARVEYS CASINO RESORTS, a Nevada
                      corporation

                      By:    /s/ Charles W. Scharer
                           -------------------------------
                           CHARLES W. SCHARER
                           President/Chief Executive Officer

                                       11

<PAGE>

                      AGREEMENT AND COVENANT NOT TO COMPETE OR
                      ----------------------------------------

                          USE OR DISCLOSE TRADE SECRETS
                          -----------------------------

    THIS AGREEMENT AND COVENANT NOT TO COMPETE OR USE OR DISCLOSE TRADE
SECRETS (the "Agreement") is made and entered into this 30th day of June
2000, by and between GARY ARMENTROUT ("EMPLOYEE") and HARVEYS CASINO RESORTS,
a Nevada corporation ("EMPLOYER"):

                                       RECITALS

    WHEREAS, EMPLOYER is one of the limited entities engaged in the hotel and
gaming establishment business in Lake Tahoe, Nevada holding a "Non-restricted
License" as defined in Nevada Revised Statute Section 463.0177; (the
"Business") and

    WHEREAS, EMPLOYEE and EMPLOYER  simultaneously herewith have executed an
employment agreement whereby EMPLOYEE is employed by EMPLOYER as the Senior
Vice-President Business Development and Government Relations of HARVEYS
CASINO RESORTS (along with any addition or extension thereof, the "Employment
Agreement"); and

    WHEREAS, EMPLOYEE acknowledges and agrees that EMPLOYER was induced into
executing the Employment Agreement with EMPLOYEE in material reliance upon
EMPLOYEE's executing and being bound by this  Agreement.

    NOW, THEREFORE, in consideration of the mutual representations,
warranties, covenants and agreements set forth herein and in the Employment
Agreement, and for other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged the parties hereto intending to be legally
bound hereby, agree as follows:

    1.01 During the term of EMPLOYEE'S employment with EMPLOYER, and for any
period of time thereafter during which EMPLOYEE  receives any compensation
under the Employment

                                       1

<PAGE>

Agreement (the "Restricted Period"), EMPLOYEE warrants, represents and agrees
that he shall not, in any city, town, county, parish or other municipality
located within a seventy-five (75) mile radius of Harveys Resort Hotel &
Casino located at Lake Tahoe, Nevada, where the EMPLOYER or any of its
subsidiaries, affiliates, successors or assigns engages in the Business
directly or indirectly, do any of the following: (A) engage in the Business
for EMPLOYEE's own account; (B) enter the employ of, or render any services
to or for any entity that is engaged in the Business; and/or (C) become
interested in any such entity in any capacity, including as an employee,
partner, stockholder, officer, principal, agent, trustee or consultant;
provided, however, EMPLOYEE may own solely as a passive investment,
securities of any entity traded on any national securities exchange or
automated quotation system if EMPLOYEE is not a controlling person of such
entity and does not beneficially own three percent (3%) or more of any class
of securities of such entity.  The duration of the non-competition as defined
in this Paragraph 1.01 shall be extended for an additional period of three
hundred sixty-five (365) days if EMPLOYEE terminates the Employment Agreement
pursuant to Paragraph 4.02 thereof or EMPLOYER terminates EMPLOYEE pursuant
to Paragraph 5.01 of the Employment Agreement.

    1.02.  NONINTERFERENCE.  During the Restricted Period, EMPLOYEE shall not
directly or indirectly (i) solicit, induce or attempt to solicit or induce
any person known to EMPLOYEE to be an employee of EMPLOYER or any of its
subsidiaries, affiliates, successors or assigns, that is involved in the
Business to terminate his or her employment or other relationship with
EMPLOYER or any of its subsidiaries, affiliates, successors or assigns for
the purpose of associating with (A) any entity of which EMPLOYEE is or
becomes an employee, officer, director, partner, stockholder, agent, trustee
or consultant or (B) any competitor of EMPLOYER or any of its subsidiaries,
affiliates, successors or assigns in the Business; or (C) otherwise encourage
any person to terminate his or her employment or other relationship with
EMPLOYER or any of its subsidiaries, affiliates, successors or assigns for
any other purpose or no purpose.

                                       2

<PAGE>

    1.03.  NONSOLICITATION.  During the Restricted Period, EMPLOYEE shall
not, directly or indirectly, solicit, induce or attempt to  solicit or induce
any customers, clients, vendors, suppliers or consultants in the Business
then under contract to EMPLOYER or any of its subsidiaries, affiliates,
successors or assigns (a "Customer or Supplier") to terminate his, her, or
its relationship with EMPLOYER or any of its subsidiaries, affiliates,
successors or assigns for any purpose, including the purpose of associating
with or becoming a Customer or Supplier of or consultant to (whether or not
exclusive) of EMPLOYEE or any entity of which EMPLOYEE is or becomes an
employee, partner, stockholder, officer, director, principal, agent, trustee
or consultant, or otherwise solicit, induce or attempt to solicit or induce
any such Customer or Supplier to terminate his, her or its relationship with
EMPLOYER or any of its subsidiaries, affiliates, successors or assigns for
any other purpose or no purpose.

    1.04.  CONFIDENTIAL INFORMATION.  EMPLOYEE acknowledges that he will have
access to proprietary information, trade secrets and confidential material
(including, but not limited to, accounting information, business plans, lists
of key personnel, customers, clients, vendors, suppliers, distributors and
consultants) of EMPLOYER (the "Confidential Information"), EMPLOYEE agrees
that upon termination of his employment with EMPLOYER, EMPLOYEE shall not be
entitled to keep or preserve any of EMPLOYER's records,  documents or other
materials evidencing Confidential Information.

    EMPLOYEE further agrees, without limitation in time or until such
information shall become public other than by the EMPLOYEE's unauthorized
disclosure, to maintain the confidentiality of and refrain from disclosure or
otherwise using in any respect the Confidential Information to the detriment
of EMPLOYER.

    EMPLOYER acknowledges that EMPLOYEE has in the past lectured, given other

                                       3

<PAGE>

presentations and prepared written material on topics related to casino
marketing utilizing information regarding EMPLOYER's operations.
Notwithstanding any provision herein, EMPLOYER shall allow EMPLOYEE to
continue to lecture, make oral presentations and write on topics related to
casino marketing using such information so long as EMPLOYEE first submits the
information intended to be used to EMPLOYER for approval and thereafter agrees
not to use any information so submitted that the EMPLOYER deems confidential
or proprietary. EMPLOYER's approval of the submitted information shall not be
unreasonably withheld so long as no Confidential Information will be
disclosed by EMPLOYEE. EMPLOYER acknowledges that certain information
entitled "Marketing Strategies for the Gaming Industry" dated December 6,
1999 and previously submitted to EMPLOYER has been approved.

    1.05   REMEDIES UPON BREACH.  If EMPLOYEE breaches or threatens to breach
 any term, covenant, or provision of this Agreement, EMPLOYEE agrees that
EMPLOYER shall be entitled to injunctive relief, both PENDENTE LITE and
permanently without the requirement of the posting of a bond since the remedy
at law would be inadequate or insufficient. In addition, EMPLOYER shall be
entitled to require EMPLOYEE to account for and pay to EMPLOYER all
compensation, profits, monies, accruals, increments or other benefits derived
or received by EMPLOYEE by reason of such breach.

    1.06   SEVERABILITY OF COVENANTS. If any provision of this Agreement, as
applied to any part or to any circumstances, shall be adjudged by a court to
be invalid or unenforceable, the same shall in no way affect any other
provision of this Agreement, the application of such provision in any other
circumstances, or the validity or enforceability of this Agreement.  If any
provision, or any part hereof, is held to be unenforceable because of the
duration of such provision or the area covered hereby, the parties hereto
agree that the court making such determination shall have the power to reduce
the duration and/or area of such provisions, and/or to delete specific words
or phrases ("blue-penciling"),

                                       4

<PAGE>

and in its reduced or blue-penciled form, such provision shall then be
enforceable and shall be enforced.

   1.07    ENFORCEABILITY IN ALL JURISDICTIONS. The parties hereto intend to
and hereby confer jurisdiction to enforce the terms, covenants and provisions
contained herein upon the courts of any state of the United States and any
other governmental jurisdiction within the geographical scope of such
covenants.  If the courts of any one or more such states or jurisdictions
shall hold such covenants wholly unenforceable by reason of the breadth of
such scope or otherwise, it is the intention of the parties hereto that such
determination shall not bar or in any way affect EMPLOYER'S right to the
relief provided above in the courts of any other state or jurisdiction within
the geographical scope of such covenants, as to breaches of such covenants
and such respective states or jurisdictions, the above covenants as they
relate to each state or jurisdiction being, for this purpose, severable into
diverse and independent covenants.

    1.08   ATTORNEYS' FEES. In the event that action, either legal or
equitable, is instituted by EMPLOYER to enforce and/or interpret this
Agreement, the prevailing party shall be entitled to reimbursement from the
other party hereto of court costs, reasonable attorneys' fees and
accountants' fees incurred in connection therewith.

    1.09   ASSIGNMENT.  Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned in whole or
in part, by EMPLOYEE without the prior written consent of EMPLOYER. EMPLOYER
and any of its subsidiaries, affiliates, and successors may sell, assign, or
otherwise transfer any or all of its or their right and interest in the
Business, whether by operation of law or otherwise, and in this Agreement, in
which case this Agreement shall remain in full force after such sale,
assignment or other transfer.

    1.10   GOVERNING LAW.  This Agreement shall be construed, interpreted and
governed in accordance with the laws of the State of Nevada, regardless of
the laws that might otherwise govern

                                       5

<PAGE>

under applicable principles of conflicts of laws thereof.

    1.11.  ENTIRE AGREEMENT.  This Agreement and the Employment Agreement by
and between EMPLOYEE and EMPLOYER, dated as of the date hereof, represent the
entire agreement of the parties with respect to the subject matter hereof and
shall supersede any and all previous contracts, arrangements or
understandings between the parties hereto and with respect to the subject
matter hereof.  This Agreement may not be modified or amended except by an
instrument in writing signed by each of the parties hereto.

    IN WITNESS WHEREOF, the undersigned have executed this Agreement the day
and date first set forth above.

                                           EMPLOYEE:

                                           /s/ James J. Rafferty
                                           -----------------------
                                           JAMES J. RAFFERTY

                                           EMPLOYER:

                                           HARVEYS CASINO RESORTS,
                                           a Nevada corporation

                                           By /s/ Charles W. Scharer
                                             -------------------------------
                                             CHARLES W. SCHARER, President/
                                             Chief Executive Officer

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]