Document:

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[LOGO]                                                                 EX 10.16

                                LOAN AGREEMENT

<TABLE>
<CAPTION>
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    PRINCIPAL      LOAN DATE      MATURITY       LOAN NO.      CALL      COLLATERAL      ACCOUNT       OFFICER     INITIALS
<S>                <C>            <C>            <C>           <C>       <C>            <C>            <C>         <C>
  $5,000,000.00    10-11-1999     10-14-2000                                140         5606780824      KMM36
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REFERENCES IN THE SHADED AREA ARE FOR LENDER'S USE ONLY AND DO NOT LIMIT THE APPLICABILITY OF THIS DOCUMENT TO ANY PARTICULAR
LOAN OR ITEM.
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BORROWER:  PDS FINANCIAL CORPORATION; ET.AL.      LENDER:  U.S. BANK NATIONAL ASSOCIATION
           6171 MCLEOD DRIVE                               COMMERCIAL SERVICES GROUP
           LAS VEGAS, NV 09120                             2300 W. SAHARA, SUITE 200
                                                           LAS VEGAS, NV 09102
==============================================================================================================================
</TABLE>

THIS LOAN AGREEMENT BETWEEN PDS FINANCIAL CORPORATION AND PDS FINANCIAL
NEVADA (REFERRED TO IN THIS AGREEMENT INDIVIDUALLY AND COLLECTIVELY AS
"BORROWER") AND U.S. BANK NATIONAL ASSOCIATION (REFERRED TO IN THIS AGREEMENT
AS "LENDER") IS MADE AND EXECUTED ON THE FOLLOWING TERMS AND CONDITIONS.
BORROWER HAS RECEIVED PRIOR COMMERCIAL LOANS FROM LENDER OR HAS APPLIED TO
LENDER FOR A COMMERCIAL LOAN OR LOANS AND OTHER FINANCIAL ACCOMMODATIONS,
INCLUDING THOSE WHICH MAY BE DESCRIBED ON ANY EXHIBIT OR SCHEDULE ATTACHED TO
THIS AGREEMENT. ALL SUCH LOANS AND FINANCIAL ACCOMMODATIONS, TOGETHER WITH
ALL FUTURE LOANS AND FINANCIAL ACCOMMODATIONS FROM LENDER TO BORROWER, ARE
REFERRED TO IN THIS AGREEMENT INDIVIDUALLY AS THE "LOAN" AND COLLECTIVELY AS
THE "LOANS." BORROWER UNDERSTANDS AND AGREES THAT: (a) IN GRANTING,
RENEWING, OR EXTENDING ANY LOAN, LENDER IS RELYING UPON BORROWER'S
REPRESENTATIONS, WARRANTIES, AND AGREEMENTS, AS SET FORTH IN THIS AGREEMENT;
(b) THE GRANTING, RENEWING, OR EXTENDING OF ANY LOAN BY LENDER AT ALL TIMES
SHALL BE SUBJECT TO LENDER'S SOLE JUDGMENT AND DISCRETION; AND (c) ALL SUCH
LOANS SHALL BE AND SHALL REMAIN SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS
OF THIS AGREEMENT.

TERM. This Agreement shall be effective as of October 9, 1999, and shall
continue thereafter until all indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used
in this Agreement. Terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

     AGREEMENT. The word "Agreement" means this Loan Agreement, as this Loan
     Agreement may be amended or modified from time to time, together with
     all exhibits and schedules attached to this Loan Agreement from time to
     time.

     ADVANCE. The word "Advance" means a disbursement of Loan funds under
     this Agreement.

     BORROWER. The word "Borrower" means individually and collectively PDS
     FINANCIAL CORPORATION and PDS FINANCIAL NEVADA and all other persons and
     entities signing Borrower's Note.

     BORROWING BASE. The words "Borrowing Base" mean, as determined by
     Lender from time to time, the lesser of  (a) $6,000,000.00; or  (b)
     65.000% of the aggregate amount of Eligible Inventory. In determining
     the amount of the Borrowing Base, all Eligible inventory of all
     Borrowers shall be included.

     BUSINESS DAY. The words "Business Day" mean a day on which commercial
     banks are open for business in the State of Nevada.

     CERCLA. The word "CERCLA" means the Comprehensive Environmental
     Response, Compensation, and Liability Act of 1980, as amended.

     CASH FLOW. The words "Cash Flow" mean net income after taxes, and
     exclusive of extraordinary gains and income, plus depreciation and
     amortization.

     COLLATERAL. The word "Collateral" means and includes without limitation
     all property and assets granted as collateral security for a Loan,
     whether real or personal property, whether granted directly or
     indirectly, whether granted now or in the future, and whether granted in
     the form of a security interest, mortgage, deed of trust, assignment,
     pledge, chattel mortgage, chattel trust, factor's lien, equipment trust,
     conditional sale, trust receipt, lien, charge, lien or little retention
     contract, lease or consignment intended as a security device, or any
     other security or lien interest whatsoever, whether created by law,
     contract, or otherwise. The word "Collateral" includes without
     limitation all collateral described below in the section titled
     "COLLATERAL."

     DEBT. The word "Debt" means all of Borrower's liabilities excluding
     Subordinated Debt.

     ELIGIBLE INVENTORY. The words "Eligible Inventory" mean, at any time,
     all of Borrower's Inventory as defined below except:

        (a) Inventory which is not owned by Borrower free and clear of all
        security interacts, liens, encumbrances, and claims of third parties.

        (b) Inventory which Lender, in its sole discretion, deems to be
        obsolete, unsalable, damaged, defective, or until further processing.

        (c) Eligible Inventory will be reduced by the greater of inventory
        (defined as slot machines) which has been in inventory for more than
        twenty four (24) months or PDS's inventory reserve. Exclude work in
        progress from eligible inventory except for operational inventory.

     ERISA. The word "ERISA" means the Employee Retirement Income Security
     Act of 1974, as amended.

     EVENT OF DEFAULT. The words "Event of Default" mean and include without
     limitation any of the Events of Default set forth below in the section
     billed "EVENTS OF DEFAULT."

     EXPIRATION DATE. The words "Expiration Date" mean the date of
     termination of Lender's commitment to lend under this Agreement.

     GRANTOR. The word "Grantor" means and includes without limitation each
     and all of the persons or entities granting a Security Interest in any
     Collateral for the indebtedness, including without limitation all
     Borrowers granting such a Security Interest.

     GUARANTOR:  The word "Guarantor" means and includes without limitation
     each and all of the guarantors, sureties, and accommodation parties in
     connection with indebtedness.

     INDEBTEDNESS. The word "Indebtedness" means and includes without
     limitation all Loans, together with all other obligations, debts, and
     liabilities of Borrower to Lender, or any one or more of them, as well
     as claims by Lender against Borrower, or any one or more of them;
     whether now or hereafter existing, voluntary or involuntary, due or not
     due, absolute or contingent, liquidated or unliquidated; whether
     Borrower may be liable individually or jointly with others; whether
     Borrower may be obligated as a guarantor, surety, or otherwise; whether
     recovery upon such indebtedness may be or hereafter may become barred by
     any statute of limitations; and whether such indebtedness may be or
     hereafter may become otherwise unenforceable.

     INVENTORY. The word "Inventory" means all of the Borrower's raw
     materials, work in process, finished goods, merchandise, parts and
     supplies, of every kind and description, and goods held for sale or
     lease or furnished under contracts of service in which Borrower now has
     or hereafter acquires any right, whether held by Borrower or others, and
     all documents or title, warehouse receipts, bills of lading, and all
     other documents of every type covering all or any part of the foregoing.
     Inventory includes inventory temporarily out of Borrower's custody or
     possession and all returns on Accounts.

     LENDER. The word "Lender" means U.S. BANK NATIONAL ASSOCIATION, its
     successors and assigns.

     LINE OF CREDIT. The words "Line of Credit" mean the credit facility
     described in the Section titled "LINE OF CREDIT" below.

     LIQUID ASSETS. The words "Liquid Assets" mean Borrower's each on hand
     plus Borrower's readily marketable securities.

     LOAN. The word "Loan" or "Loans" means and includes without limitation
     any and all commercial loans and financial accommodations from Lender to
     Borrower, whether now or hereafter existing, and however evidenced,
     including without limitation those loans and financial accommodations
     described herein or described on any exhibit or schedule attached to
     this Agreement from time to time.

     NOTE. The word "Note" means and includes without limitation Borrower's
     promissory note or notes, if any, evidencing Borrower's Loan obligations
     in favor of Lender, as well as any substitute, replacement or
     refinancing note or notes therefor.

     PERMITTED LIENS. The words "Permitted Liens" mean:  (a) liens and
     security interests securing indebtedness owed by Borrower to Lender;
     (b) liens for taxes, assessments, or similar charges either not yet due
     or being contested in good faith;  (c) liens of materialmen, mechanics,
     warehousemen, or carriers, or other like liens arising in the ordinary
     course of business and securing obligations which are not yet
     delinquent; (d) purchase money liens or purchase money security interests
     upon or in any properly acquired or held by Borrower in the ordinary
     course of business to secure indebtedness outstanding on the date of
     this Agreement or permitted to be incurred under the paragraph of this
     Agreement titled "Indebtedness and Liens";  (e) liens and security
     interests which, as of the date of this Agreement, have been disclosed
     to and approved by the Lender in writing: and (f) those liens and security
     interests which in the aggregate constitute an immaterial and
     insignificant monetary amount with respect to the net value of
     Borrower's assets.

     RELATED DOCUMENTS. The words "Related Documents" mean and include
     without limitation all promissory notes, credit, agreements, loan
     agreements, environmental agreements, guarantees, security agreements,
     mortgages, deeds of trust, and all other instruments, agreements and
     documents, whether now or hereafter existing, executed in connection
     with indebtedness.

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10-11-1999                      LOAN AGREEMENT                           PAGE 2
LOAN NO                           (CONTINUED)
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     SECURITY AGREEMENT. The words "Security Agreement" mean and include
     without limitation any agreements, promises, covenants, arrangements,
     understandings or other agreements, whether created by law, contract, or
     otherwise, evidencing, governing, representing, or creating a Security
     Interest.

     SECURITY INTEREST. The words "Security Interest" mean and include
     without limitation any type of collateral security, whether in the form
     of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel
     mortgage, chattel trust, factor's lien, equipment trust, conditional
     sale, trust receipt, lien or title retention contract, lease or
     consignment intended as a security device, or any other security or lien
     interest whatsoever, whether created by law, contract, or otherwise.

     SARA. The word "SARA" means the Superfund Amendments and Reauthorization
     Act of 1988 as now or hereafter amended.

     SUBORDINATED DEBT. The words "Subordinated Debt" mean indebtedness and
     liabilities of Borrower which have been subordinated by written
     agreement to indebtedness owed by Borrower to Lender in form and
     substance acceptable to Lender.

     TANGIBLE NET WORTH. The words "Tangible Net Worth" mean Borrower's total
     assets excluding all intangible assets (i.e., goodwill, trademarks,
     patents, copyrights, organizational expenses, and similar intangible
     items, but including leaseholds and leasehold improvements) less total
     Debt.

     WORKING CAPITAL. The words "Working Capital" mean Borrower's current
     assets, excluding prepaid expenses, less Borrower's current liabilities.

LINE OF CREDIT. Lender agrees to make Advances to Borrower from time to time
from the date of this Agreement to the Expiration Date, provided the
aggregate amount of such Advances outstanding at any time does not exceed the
Borrowing Base. Within the foregoing limits, Borrower may borrow, partially
or wholly prepay, and reborrow under this Agreement as follows.

     CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make any
     Advance to or for the account of Borrower under this Agreement is
     subject to the following conditions precedent, with all documents,
     instruments, opinions, reports, and other items required under this
     Agreement to be in form and substance satisfactory to Lender:

        (a) Lender shall have resolved evidence that this Agreement and
        all Related Documents have been duly authorized, executed, and
        delivered by Borrower to Lender.

        (b) Lender shall have received such opinions of counsel,
        supplemental opinions, and documents as Lender may request.

        (c) The security interests in the Collateral shall have been
        duly authorized, created, and perfected with first lien priority and
        shall be in full force and effect.

        (d) All guaranties required by Lender for the Line of Credit shall have
        been executed by each Guarantor, delivered to Lender, and be in full
        force and effect.

        (e) Lender, at its option and for its sole benefit, shall have
        conducted an audit of Borrower's inventory, books, records, and
        operations, and Lender shall be satisfied as to their condition.

        (f) Borrower shall have paid to Lender all fees, costs, and
        expenses specified in this Agreement and the Related Documents as
        are then due and payable.

        (g) There shall not exist at the time of any Advance a condition
        which would constitute an Event of Default under this Agreement, and
        Borrower shall have delivered to Lender the compliance certificate
        called for in the paragraph below titled "Compliance Certificate."

     MAKING LOAN ADVANCES. Advances under the Line of Credit may be requested
     either orally or in writing by authorized persons. Lender may, but need
     not, require that all oral requests be confirmed in writing. Each
     Advance shall be conclusively deemed to have been made at the request of
     and for the benefit of Borrower  (a) when credited to any deposit
     account of Borrower maintained with Lender or  (b) when advanced in
     accordance with the instructions of an authorized person. Lender, at its
     option, may set a cutoff time, after which all requests for Advances
     will be treated as having been requested on the next succeeding Business
     Day.

     MANDATORY LOAN REPAYMENTS. If at any time the aggregate principal amount
     of the outstanding Advances shall exceed the applicable Borrowing Base,
     Borrower, immediately upon written or oral notice from Lender, shall pay
     to Lender an amount equal to the difference between the outstanding
     principal balance of the Advances and the Borrowing Base. On the
     Expiration Date, Borrower shall pay to Lender in full the aggregate
     unpaid principal amount of all Advances then outstanding and all accrued
     unpaid interest, together with all other applicable fees, costs and
     charges, if any, not yet paid.

     LOAN ACCOUNT. Lender shall maintain on its books a record of account in
     which Lender shall make entries for each Advance and such other debits
     and credits as shall be appropriate in connection with the credit
     facility. Lender shall provide Borrower with periodic statements of
     Borrower's account, which statements shall be considered to be correct
     and conclusively binding on Borrower unless Borrower notifies Lender to
     the contrary within thirty (30) days after Borrower's receipt of any
     such statement which Borrower deems to be incorrect.

COLLATERAL. To secure payment of the Line of Credit and performance of all
other Loans, obligations and duties owed by Borrower to Lender, Borrower
(and others, if required) shall grant to Lender Security interests in such
property and assets as Lender may require (the "Collateral"), including
without limitation Borrower's present and future inventory. Lender's Security
interests in the Collateral shall be continuing liens and shall include the
proceeds and products of the Collateral, including without limitation the
proceeds of any insurance. With respect to the Collateral, Borrower agrees
and represents and warrants to Lender:

     PERFECTION OF SECURITY INTERESTS. Borrower agrees to execute such
     financing statements and to take whatever other actions are requested by
     Lender to perfect and continue Lender's Security interests in the
     Collateral. Upon request of Lender, Borrower will deliver to Lender any
     and all of the documents evidencing or constituting the Collateral, and
     Borrower will note Lender's interest upon any and all chattel paper if
     not delivered to Lender for possession by Lender. Contemporaneous with
     the execution of this Agreement, Borrower will execute one or more UCC
     financing statements and any similar statements as may be required by
     applicable law, and will file such financing statements and all such
     similar statements in the appropriate location or locations. Borrower
     hereby appoints Lender as its irrevocable attorney-in-fact for the
     purpose of executing any documents necessary to perfect or to continue
     any Security interest. Lender may at any time, and without further
     authorization from Borrower, file a carbon, photograph, facsimile, or
     other reproduction of any financing statement for use as a financing
     statement.  Borrower will reimburse Lender for all expenses for the
     perfection, termination, and the continuation of the perfection of
     Lender's security interest in the Collateral.  Borrower promptly will
     notify Lender of any change in Borrower's name including any change to
     the assumed business names of Borrower.  Borrower also promptly will
     notify Lender of any change in Borrower's Social Security Number or
     Employer Identification Number. Borrower further agrees to notify Lender
     in writing prior to any change in address or location of Borrower's
     principal governance office or should Borrower merge or consolidate with
     any other entity.

     COLLATERAL RECORDS.  Borrower does now, and at all times hereafter
     shall, keep correct and accurate records of the Collateral, all of which
     records shall be available to Lender or Lender's representative upon
     demand for inspection and copying at any reasonable time. With respect to
     the inventory, Borrower agrees to keep and maintain such records as Lender
     may require, including without limitation information concerning Eligible
     Inventory and records itemizing and describing the kind, type, quality,
     and quantity of Inventory, Borrower's inventory costs and selling prices,
     and the daily withdrawals and additions to inventory.

     COLLATERAL SCHEDULES.  Concurrently with the execution and delivery of
     this Agreement, Borrower shall execute and deliver to Lender a schedule
     of Inventory and Eligible Inventory, in form and substance satisfactory
     to the Lender.  Thereafter Borrower shall execute and deliver to Lender
     such supplemental schedules of Eligible Inventory specifying the value
     thereof, and such other matters and information relating to Borrower's
     inventory as Lender may request.  Supplemental schedules shall be
     delivered according to the following schedule: Borrower agrees to submit
     to Lender monthly Accounts Receivable Agings, Accounts Payable Listing,
     Inventory Certificate and Borrower's Certificate supported by a detailed
     inventory listing within twenty (20) days after the end of each month.

     REPRESENTATIONS AND WARRANTIES CONCERNING INVENTORY.  With respect to
     the inventory, Borrower represents and warrants to Lender (a) All
     inventory represented by Borrower to be Eligible inventory for purposes
     of this Agreement conforms to the requirements of the definition of
     Eligible inventory; (b) All inventory values listed on schedules
     delivered to Lender will be true and correct, subject to immaterial
     variance; (c) The value of the inventory will be determined on a
     consistent accounting basis; (d) Except as agreed to the contrary by
     Lender in writing, all Eligible inventory is now and at all times
     hereafter will be in Borrower's physical possession and shall not be
     held by others on consignment, sale on approval, or sale or return; (e)
     Except as reflected in the inventory schedules delivered to Lender, all
     Eligible Inventory is now and at all times hereafter will be of good and
     merchantable quality, free from defects; (f) Eligible Inventory is not
     now and will not at any time hereafter be stored with a bailee,
     warehouseman, or similar party without Lender's prior written consent,
     and, in such event, Borrower will concurrently at the time of bailment
     cause any such bailee, warehouseman, or similar party to issue and
     deliver to Lender, in form acceptable to Lender, warehouse receipts in
     Lender's name evidencing the storage of inventory; and (g) Lender, its
     assigns, or agents shall have the right at any time and at Borrower's
     expense to inspect and examine the inventory and to check and test the
     same as to quality, quantity, value, and condition.

MULTIPLE BORROWERS.  This Agreement has been executed by multiple obligors
who are referred to herein individually, collectively and interchangeably as
"Borrower."  Unless specifically stated to the contrary, the word "Borrower"
as used in this Agreement, including without limitation all representations,
warranties and covenants, shall include all Borrowers.  Borrower understands
and agrees that, with or without notice to Borrower, Lender may with respect
to any other Borrower (a) make one or more additional secured or unsecured
loans or otherwise extend additional credit; (b) alter, compromise, renew,
extend, accelerate, or otherwise change one or more times the time for
payment or other terms any indebtedness, including

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10-11-1999                      LOAN AGREEMENT                           PAGE 3
LOAN NO.                         (CONTINUED)
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increases and decreases of the rate of interest on the indebtedness; (c)
exchange, enforce, waive, subordinate, fall or decide not to perfect, and
release any security, with or without the substitution of new collateral; (d)
release, substitute, agree not to sue, or deal with any one or more of
Borrower's sureties, endorsers, or other guarantors on any terms or in any
manner Lender may choose; (e) determine how, when and what application of
payments and credits shall be made on any indebtedness; (f) apply such
security and direct the order or manner of sale thereof, including without
limitation, any nonjudicial sale permitted by the terms of the controlling
security agreement or deed of trust, as Lender in its discretion may
determine; (g) sell, transfer, assign, or grant participations in all or any
part of the indebtedness; (h) exercise or refrain from exercising any rights
against Borrower or others, or otherwise act or refrain from acting; (i)
settle or compromise any indebtedness; and (j) subordinate the payment of all
or any part of any indebtedness of Borrower to Lender to the payment of any
liabilities which may be due Lender or others.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender,
as of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any
Loan, and at all times any indebtedness exists:

     ORGANIZATION. Borrower is a corporation which is duly organized,
     validly existing, and in good standing under the laws of the State of
     Nevada and is validly existing and in good standing in all states in
     which Borrower is doing business. Borrower has the full power and
     authority to own its properties and to transact the businesses in
     which it is presently engaged or presently proposes to engage.
     Borrower also is duly qualified as a foreign corporation and is in
     good standing in all states in which the failure to so quality would
     have a material adverse effect on its businesses or financial
     condition.

     AUTHORIZATION. The execution, delivery, and performance of this
     Agreement and all Related Documents by Borrower, to the extent to be
     executed, delivered or performed by Borrower, have been duly authorized
     by all necessary action by Borrower; do not require the consent or
     approval of any other person, regulatory authority or governmental
     body; and do not conflict with, result in a violation of, or
     constitute a default under (a) any provision of its articles or
     incorporation or organization, or bylaws, or any agreement or other
     instrument binding upon Borrower or (b) any law, governmental
     regulation, court decree, or order applicable to Borrower.

     FINANCIAL INFORMATION. Each financial statement of Borrower
     supplied to Lender truly and completely disclosed Borrower's financial
     condition as of the date of the statement, and there has been no
     material adverse change in Borrower's financial condition subsequent
     to the date of the most recent financial statement supplied to Lender.
     Borrower has no material contingent obligations except as disclosed in
     such financial statements.

     LEGAL EFFECT. This Agreement constitutes, and any instrument or
     agreement required hereunder to be given by Borrower when delivered
     will constitute, legal, valid and binding obligations of Borrower
     enforceable against Borrower in accordance with their respective terms.

     PROPERTIES. Except for Permitted Liens, Borrower owns and has good
     title to all of Borrower's properties free and clear of all Security
     interests, and has not executed any security documents or financing
     statements relating to such properties. All of Borrower's properties
     are titled in Borrower's legal name, and Borrower has not used, or
     filed a financing statement under, any other name for at least the
     last five (5) years.

     HAZARDOUS SUBSTANCES. The terms "hazardous waste," "hazardous
     substance," "disposal," "release," and "threatened release," as used
     in this Agreement, shall have the same meanings as set forth in the
     "CERCLA," "SARA," the Hazardous Materials Transportation Act, 49
     U.S.C. Section 1801, et seq., the Resource Conservation and Recovery
     Act, 42 U.S.C. Section 6901, et seq., or other applicable state or
     Federal laws, rules, or regulations adopted pursuant to any of the
     foregoing. Except as disclosed to and acknowledged by Lender in
     writing, Borrower represents and warrants that: (a) During the period
     of Borrower's ownership of the properties, there has been no use,
     generation, manufacture, storage, treatment, disposal, release or
     threatened release of any hazardous waste or substance by any person
     on, under, about or from any of the properties. (b) Borrower has no
     knowledge of, or reason to believe that there has been (i) any use,
     generation, manufacture, storage, treatment, disposal, release, or
     threatened release of any hazardous waste or substance on, under or
     from the properties by any prior owners or occupants of any of the
     properties, or (ii) any actual or threatened litigation or claims of
     any kind by any person relating to such matters. (c) Neither Borrower
     nor any tenant, contractor, agent or other authorized user of any of
     the properties shall use, generate, manufacture, store, treat, dispose
     of, or release any hazardous waste or substance on, under, about or
     from any of the properties; and any such activity shall be conducted
     in compliance with all applicable federal, state, and local laws,
     regulations and ordinances, including without limitation those laws,
     regulations and ordinances described above. Borrower authorizes Lendor
     and its agents to enter upon the properties to make such inspections
     and tests as Lender may deem appropriate to determine compliance of
     the properties with this section of the Agreement. Any inspections or
     tests made by Lender shall be at Borrowers's expense and for Lender's
     purposes only and shall not be construed to create any responsibility
     or liability on the part of Lender to Borrower or to any other person.
     The representations and warranties contained herein are based on
     Borrower's due diligence in investigating the properties for hazardous
     waste and hazardous substances. Borrower hereby (a) releases and
     waives any future claims against Lender for indemnity or contribution
     in the event Borrower becomes liable for cleanup or other costs under
     any such laws, and (b) agrees to indemnity and hold harmless Lender
     against any and all claims, losses, liabilities, damages, penalties,
     and expenses which Lender may directly or indirectly sustain or suffer
     resulting from a breach of this section of the Agreement or as a
     consequence of any use, generation, manufacture, storage, disposal,
     release or threatened release of a hazardous waste or substance on the
     properties. The provisions of this section of the Agreement, including
     the obligation to indemnity, shall survive the payment of the
     indebtedness and the termination or expiration of this Agreement and
     shall not be affected by Lender's acquisition of any interest in any
     of the properties, whether by foreclosure or otherwise.

     LITIGATION AND CLAIMS. No litigation, claim, investigation,
     administrative proceeding or similar action (including those for unpaid
     taxes) against Borrower is pending or threatened, and no other event
     has occurred which may materially adversely affect Borrower's
     financial condition or properties, other than litigation, claims, or
     other events, if any, that have been disclosed to and acknowledged by
     Lender in writing.

     TAXES. To the best of Borrower's knowledge, all tax returns and
     reports of Borrower that are or were required to be filed, have been
     filed, and all taxes, assessments and other governmental charges have
     been paid in full, except those presently being or to be contested by
     Borrower in good faith in the ordinary course of business and for
     which adequate reserves have been provided.

     LIEN PROPERTY. Unless otherwise previously disclosed to Lender in
     writing, Borrower has not entered into or granted any Security
     Agreements, or permitted the filing or attachment of any Security
     interests on or affecting any of the Collateral directly or indirectly
     securing repayment of Borrower's Loan and Note, that would be prior or
     that may in any way be superior to Lender's Security interests and
     rights in and to such Collateral.

     BINDING EFFECT. This Agreement, the Note, all Security Agreements
     directly or indirectly securing repayment of Borrower's Loan and Note
     and all of the Related Documents are binding upon Borrower as well
     as upon Borrower's successors, representatives and assigns, and are
     legally enforceable in accordance with their respective terms.

     COMMERCIAL PURPOSES. Borrower intends to use the Loan proceeds solely
     for business or commercial related purposes.

     EMPLOYEE BENEFIT PLANS. Each employee benefit plan as to which
     Borrower may have any liability complies in all material respects with
     all applicable requirements of law and regulations, and (i) no
     Reportable Event nor Prohibited Transaction (as defined in ERISA) has
     occurred with respect to any such plan, (ii) Borrower has not
     withdrawn from any such plan or initiated steps to do so, (iii) no
     steps have been taken to terminate any such plan, and (iv) there are
     no unfunded liabilities other than those previously disclosed to Lender
     in writing.

     LOCATION OF BORROWER'S OFFICES AND RECORDS. Borrower's place of
     business, or Borrower's Chief executive office, if Borrower has more
     than one place of business, is located at 6171 MCLEOD DRIVE, LAS
     VEGAS, NV 89120. Unless Borrower has designated otherwise in writing
     this location is also the office or offices where Borrower keeps its
     records concerning the Collateral.

     INFORMATION. All information heretofore or contemporaneously herewith
     furnished by Borrower to Lender for the purpose of or in connection
     with this Agreement or any transaction contemplated hereby is, and all
     information hereafter furnished by or on behalf of Borrower to Lender
     will be, true and accurate in every material respect on the date as of
     which such information is dated or certified; and none of such
     information is or will be incomplete by omitting to state any material
     fact necessary to make such information not misleading.

     SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Borrower understands and
     agrees that Lender, without independent investigation, is relying upon
     the above representations and warrants in extending Loan Advances to
     Borrower. Borrower further agrees that the foregoing representations
     and warranties shall be continuing in nature and shall remain in full
     force and affect until such time as Borrower's indebtedness shall be
     paid in full, or until this Agreement shall be terminated in the
     manner provided above, whichever is the last to occur.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that,
while this Agreement is in effect, Borrower will:

     LITIGATION. Promptly inform Lender in writing of (a) all material
     adverse changes in Borrower's financial condition, and (b) all
     existing and all threatened litigation, claims, investigations,
     administrative proceedings or similar actions affecting Borrower or
     any Guarantor which could materially affect the financial condition of
     Borrower or the financial condition of any Guarantor.

     FINANCIAL RECORDS. Maintain its books and records in accordance with
     generally accepted accounting principles, applied on a consistent
     basis, and permit Lender to examine and audit Borrower's books and
     records at all reasonable times.

     FINANCIAL STATEMENTS. Furnish Lender with, as soon as available, but
     in no event later than one hundred twenty (120) days after the end of
     each fiscal year, Borrower's balance sheet and income statement for
     the year ended, audited by a certified public accountant satisfactory
     to Lender, and, as soon as available, but in no event later than fifty
     (50) days after the end of each fiscal quarter, Borrower's balance
     sheet and profit and loss statement for the period ended, prepared and
     certified as correct to the best knowledge and belief by Borrower's
     chief financial officer or other officer or person acceptable to
     Lender. All financial reports required to be provided under this
     Agreement shall be prepared in accordance with generally accepted
     accounting principles, applied on a consistent basis; and certified by
     Borrower as being true and correct.

<PAGE>

10-11-1999                      LOAN AGREEMENT                           PAGE 4
LOAN NO                          (CONTINUED)
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     ADDITIONAL INFORMATION. Furnish such additional information and
     statements, lists of assets and liabilities, agings of receivables and
     payables, inventory schedules, budgets, forecasts, tax returns, and
     other reports with respect to Borrower's financial condition and
     business operations as Lender may request from time to time.

     FINANCIAL COVENANTS AND RATIOS. Comply with the following covenants
     and ratios:

        NET WORTH RATIO. Maintain a ratio of Total Liabilities to
        Tangible Net Worth of less than 7.00 to 1.00.

        CASH FLOW REQUIREMENTS. Maintain Cash Flow at not less than
        the following level: RATIO OF 1.50 TO 1.00 DEFINED AS: EARNINGS BEFORE
        INTEREST, TAXES, DEPRECIATION AND AMORTIZATION DIVIDED BY INTEREST
        PLUS DIVIDENDS.

     The following provisions shall apply for purposes of determining
     compliance with the foregoing financial covenants and ratios:
     Quarterly. The financial covenants and ratios set forth in this
     paragraph shall be determined and calculated for all Borrowers on a
     consolidated basis and reference in this paragraph to "Borrower" shall
     mean all "Borrowers." Except as provided above, all computations made
     to determine compliance with the requirements contained in this
     paragraph shall be made in accordance with generally accepted
     accounting principles, applied on a consistent basis, and certified by
     Borrower as being true and correct.

     INSURANCE. Maintain fire and other risk insurance, public
     liability insurance, and such other insurance as Lender may require
     with respect to Borrower's properties and operations, in form,
     amounts, coverages and with insurance companies reasonably acceptable
     to Lender. Borrower, upon request of Lender, will deliver to Lender
     from time to time the policies or certificates of insurance in form
     satisfactory to Lender, including stipulations that coverages will not
     be cancelled or diminished without at least ten (10) days' prior
     written notice to Lender. Each insurance policy also shall include an
     endorsement providing that coverage in favor of Lender will not be
     impaired in any way by any act, omission or default of Borrower or any
     other person. In connection with all policies covering assets in which
     Lender holds or is offered a security interest for the Loans, Borrower
     will provide Lender with such loss payable or other endorsements as
     Lender may require.

     INSURANCE REPORTS. Furnish to Lender, upon request of Lender, reports
     on each existing insurance policy showing such information as Lender
     may reasonably request, including without limitation the following:
     (a) the name of the insurer; (b) the risks insured; (c) the amount of
     the policy; (d) the properties insured; (e) the then current property
     values on the basis of which insurance has been obtained, and the
     manner of determining those values; and (f) the expiration date of the
     policy. In addition, upon request of Lender (however not more often
     than annually), Borrower will have an independent appraiser
     satisfactory to Lender determine, as applicable, the actual cash value
     or replacement cost of any Collateral. The cost of such appraisal
     shall be paid by Borrower.

     OTHER AGREEMENTS. Comply with all terms and conditions of all other
     agreements, whether now or hereafter existing, between Borrower and any
     other party and notify Lender immediately in writing of any default in
     connection with any other such agreements.

     LOAN FEES AND CHARGES. In addition to all other agreed upon fees and
     charges, pay the following: BORROWER AGREES TO PAY LENDER, PRIOR TO OR
     CONTEMPORANEOUSLY WITH THE INITIAL ADVANCE OF LOAN PROCEEDS, A
     NONREFUNDABLE LOAN FEE IN THE AMOUNT OF $18,750.00

     LOAN PROCEEDS. Use all Loan proceeds solely for Borrower's business
     operations, unless specifically consented to the contrary by Lender in
     writing.

     TAXES, CHARGES AND LIENS. Pay and discharge when due all of its
     indebtedness and obligations, including without limitation all
     assessments, taxes, governmental charges, levies and liens, of every
     kind and nature, imposed upon Borrower or its properties, income, or
     profits, prior to the date on which penalties would attach, and all
     lawful claims that, if unpaid, might become a lien or charge upon any
     of Borrower's properties, income, or profits. Provided however,
     Borrower will not be required to pay and discharge any such
     assessment, tax, charge, levy, lien or claim so long as (a) the
     legality of the same shall be contested in good faith by appropriate
     proceedings, and (b) Borrower shall have established on its books
     adequate reserves with respect to such contested assessment, tax,
     charge, levy, lien, or claim in accordance with generally accepted
     accounting practices. Borrower, upon demand of Lender, will furnish to
     Lender evidence of payment of the assessments, taxes, charges, levies,
     liens and claims and will authorize the appropriate governmental
     official to deliver to Lender at any time a written statement of any
     assessments, taxes, charges, levies, liens and claims against
     Borrower's properties, income, or profits.

     PERFORMANCE. Perform and comply with all terms, conditions, and
     provisions set forth in this Agreement and in the Related Documents in
     a timely manner, and promptly notify Lender if Borrower learns of the
     occurrence of any event which constitutes an Event of Default under
     this Agreement or under any of the Related Documents.

     OPERATIONS. Maintain executive and management personnel with
     substantially the same qualifications and experience as the present
     executive and management personnel; provide written notice to Lender
     of any change in executive and management personnel; conduct its
     business affairs in a reasonable and prudent manner and in compliance
     with all applicable federal, state and municipal laws, ordinances,
     rules and regulations respecting its properties, charters, businesses
     and operations, including without limitation, compliance with the
     Americans With Disabilities Act and with all minimum funding standards
     and other requirements of ERISA and other laws applicable to
     Borrower's employee benefit plans.

     INSPECTION. Permit employees or agents of Lender at any reasonable
     time to inspect any and all Collateral for the Loan of Loans and
     Borrower's other properties and to examine or audit Borrower's books,
     accounts, and records and to make copies and memoranda of Borrower's
     books, accounts, and records. If Borrower now or at any time hereafter
     maintains any records (including without limitation computer generated
     records and computer software programs for the generation of such
     records) in the possession of a third party, Borrower, upon request of
     Lender, shall notify such party to permit Lender free access to such
     records at all reasonable times and to provide Lender with copies of
     any records it may request, all at Borrower's expense.

     COMPLIANCE CERTIFICATE. Unless waived in writing by Lender, provide
     Lender at least annually and at the time of each disbursement of Loan
     proceeds with a certificate executed by Borrower's chief financial
     officer, or other officer or person acceptable to Lender, certifying
     that the representations and warranties set forth in this Agreement
     are true and correct as of the date of the certificate and further
     certifying that, as of the date of the certificate, no Event of
     Default exists under this Agreement.

     ENVIRONMENTAL COMPLIANCE AND REPORTS. Borrower shall comply in all
     respects with all environmental protection federal, state and local
     laws, statutes, regulations and ordinances; not cause or permit to
     exist, as a result of an intentional or unintentional action or
     omission on its part or on the part of any third party, on property
     owned and/or occupied by Borrower, any environmental activity where
     damage may result to the environment, unless such environmental
     activity is pursuant to and in compliance with the conditions of a
     permit issued by the appropriate federal, state or local governmental
     authorities; shall furnish to Lender promptly and in any event within
     thirty (30) days after receipt thereof a copy of any notice, summons,
     lien, citation, directive, letter or other communication from any
     governmental agency or instrumentality concerning any intentional or
     unintentional action or omission on Borrower's part in connection with
     any environmental activity whether or not there is damage to the
     environment and/or other natural resources.

     ADDITIONAL ASSURANCES. Make, execute and deliver to Lender
     such promissory notes, mortgages, deeds of trust, security agreements,
     financing statements, instruments, documents and other agreements as
     Lender or its attorneys may reasonably request to evidence and secure
     the Loans and to perfect all Security interests.

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court or administrative or governmental authority (including
any request or policy not having the force of law) shall impose, modify or
make applicable any taxes (except U.S. federal, state or local income or
franchise taxes imposed on Lender), reserve requirements, capital adequacy
requirements or other obligations which would (a) increase the cost to Lender
for extending or maintaining the credit facilities to which this Agreement
relates, (b) reduce the amounts payable to Lender under this Agreement or the
Related Documents, or (c) reduce the rate of return on Lender's capital as a
consequence of Lender's obligations with respect to the credit facilities to
which this Agreement relates, then Borrower agrees to pay Lender such
additional amounts as will compensate Lender therefor, within five (5) days
after Lender's written demand for such payment, which demand shall be
accompanied by an explanation of such imposition or charge and a calculation
in reasonable detail of the additional amounts payable by Borrower, which
explanation and calculations shall be conclusive in the absence of manifest
error.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent
of Lender:

     INDEBTEDNESS AND LIENS. (a) Except for trade debt incurred in the
     normal course of business and indebtedness to Lender contemplated by
     this Agreement, create, incur or assume indebtedness for borrowed
     money, including capital leases, (b) except as allowed as a Permitted
     Lien, sell, transfer, mortgage, assign, pledge, lease, grant a security
     interest in, or encumber any of Borrower's assets, or (c) sell with
     recourse any of Borrower's accounts, except to Lender.

     CONTINUITY OF OPERATIONS. (a) Engage in any business activities
     substantially different than those in which Borrower is presently
     engaged, (b) cease operations, liquidate, merge, transfer, acquire or
     consolidate with any other entity, change ownership, change its name,
     dissolve or transfer or sell Collateral out of the ordinary course of
     business, (c) pay any dividends on Borrower's stock (other than
     dividends payable in its stock), provided, however that notwithstanding
     the foregoing, but only so long as no Event of Default has occurred
     and is continuing or would result from the payment of dividends, if
     Borrower is a "Subchapter S Corporation" (as defined in the Internal
     Revenue Code of 1988, as amended), Borrower may pay cash dividends on
     its stock to its shareholders from time to time in amounts necessary
     to enable the shareholders to pay income taxes and make estimated
     income tax payments to satisfy their liabilities under federal and
     state law which arise solely from their status as Shareholders of a
     Subchapter S Corporation because of their ownership of shares of stock
     of Borrower, or (d) purchase or retire any of Borrower's outstanding
     shares or alter or amend Borrower's capital structure.

<PAGE>

10-11-1999                      LOAN AGREEMENT                           PAGE 5
LOAN NO                         (CONTINUED)
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     LOANS, ACQUISITIONS AND GUARANTIES. (a) Loan, invest in or advance
     money or assets, (b) purchase, create or acquire any interest in any
     other enterprise or entity, or (c) incur any obligation as surety or
     guarantor other than in the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds
if:  (a) Borrower or any Guarantor is in default under the terms of this
Agreement or any of the Related Documents or any other agreement that
Borrower or any Guarantor has with Lender; (b) Borrower or any Guarantor
becomes insolvent, files a petition in bankruptcy or similar proceedings, or
is adjudged a bankrupt; (c) there occurs a material adverse change in
Borrowers financial condition, in the financial condition of any Guarantor,
or in the value of any Collateral securing any Loan; (d) any Guarantor seeks,
claims or otherwise attempts to limit, modify or revoke such Guarantor's
guaranty of the Loan or any other loan with Lender; or (e) Lender in good
faith deems itself insecure, even though no Event of Default shall have
occurred.

ACCESS LAWS.  Without limiting the generality of any provision of this
agreement requiring Borrower to comply with applicable laws, rules, and
regulations,  Borrower agrees that it will at all times comply with the
applicable laws relating to disabled access including, but not limited to,
all applicable titles of the Americans with Disabilities Act of 1990.

YEAR 2000.  Year 2000.  Borrower has reviewed and accessed its business
operations and computer systems and applications to address the "year 2000
problem" (that is, that computer applications and equipment used by Borrower,
directly or indirectly through third parties, may be unable to properly
perform date-sensitive functions before, during and after January 1, 2000).
Borrower reasonably believes that the year 2000 problem will not result in a
material adverse change in Borrower's business condition (financial or
otherwise), operations, properties or prospects or ability to repay Lender.
Borrower agrees that this representation will be true and correct on and
shall be deemed made by Borrower on each date Borrower requests any advance
under this Agreement or Note or delivers any information to Lender, Borrower
will promptly deliver to Lender such information relating to this
representation as Lender requests from time to time.

PRIOR LOAN AGREEMENT.  This Loan Agreement shall supercede and replace the
prior Loan Agreement dated August 5, 1998.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of the security interest
would be prohibited by law.  Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts.

EVENTS OF DEFAULT.  Each of the following shall constitute an Event of
Default under this Agreement:

     DEFAULT ON INDEBTEDNESS.  Failure of Borrower to make any payment when
     due on the Loans.

     OTHER DEFAULTS.  Failure of Borrower or any Grantor to comply with or to
     perform when due any other term, obligation, covenant or condition
     contained in this Agreement or in any of the Related Documents, or
     failure of Borrower to comply with or to perform any other term,
     obligation, covenant or condition contained in any other agreement
     between Lender and Borrower.

     DEFAULT IN FAVOR OF THIRD PARTIES.  Should Borrower or any Grantor
     default under any loan, extension of credit, security agreement,
     purchase or sales agreement, or any other agreement, in favor of any
     other creditor or person that may materially affect any of Borrower's
     property or Borrower's or any Grantor's ability to repay the Loans or
     perform their respective obligations under this Agreement or any of the
     Related Documents.

     FALSE STATEMENTS.  Any warranty, representation or statement made or
     furnished to Lender by or on behalf of Borrower or any Grantor under
     this Agreement or the Related Documents is false or misleading in any
     material respect at the time made or furnished, or becomes false or
     misleading at any time thereafter.

     DEFECTIVE COLLATERALIZATION.  This Agreement or any of the Related
     Documents ceases to be in full force and effect (including failure of any
     Security Agreement to create a valid and perfected Security Interest) at
     any time and for any reason.

     INSOLVENCY.  The dissolution or termination of Borrower's existence as a
     going business, the insolvency of Borrower, the appointment of a
     receiver for any part of Borrower's property, any assignment for the
     benefit of creditors, any type of creditor workout, or the commencement
     of any proceeding under any bankruptcy or insolvency laws by or against
     Borrower.

     CREDITOR OR FORFEITURE PROCEEDINGS.  Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Borrower, any
     creditor of any Grantor against any collateral securing the
     indebtedness, or by any governmental agency.  This includes a
     garnishment, attachment, or levy on or of any of Borrower's deposit
     accounts with Lender.

     EVENTS AFFECTING GUARANTOR.  Any of the preceding events occurs with
     respect to any Guarantor of any of the indebtedness or any Guarantor
     dies or becomes incompetent, or revokes or disputes the validity of, or
     liability of, or liability under, any Guaranty of the indebtedness.

     EVENTS AFFECTING CO-BORROWERS.  Any of the preceding events occurs with
     respect to any co-borrower of any of the indebtedness or any co-borrower
     dies or becomes incompetent, or revokes or disputes the validity of, or
     liability under, any of the indebtedness.

     CHANGE IN OWNERSHIP.  Any change in ownership of twenty-five percent
     (25%) or more of the common stock of Borrower.

     ADVERSE CHANGE.  A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of
     the indebtedness is impaired.

     INSECURITY.  Lender, in good faith, deems itself insecure.

EFFECT OF AN EVENT OF DEFAULT.  If any Event of Default shall occur, except
where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will terminate (including any
obligation to make Loan Advances or disbursements), and, at Lender's option,
all indebtedness immediately will become due and payable, all without notice
of any kind to Borrower, except that in the case of an Event of Default of
the type described in the "Insolvency" subsection above, such acceleration
shall be automatic and not optional.  In addition, Lender shall have all the
rights and remedies provided in the Related Documents or available at law, in
equity, or otherwise.  Except as may be prohibited by applicable law, all of
Lender's rights and remedies shall be cumulative and may be exercised
singularly or concurrently.  Election by Lender to pursue any remedy shall
not exclude pursuit of any other remedy, and an election to make expenditures
or to take action to perform an obligation of Borrower or of any Grantor
shall not affect Lender's right to declare a default and to exercise its
rights and remedies.

MISCELLANEOUS PROVISIONS.  The following miscellaneous provisions are a part
of this Agreement:

     AMENDMENTS.  This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to
     the matters set forth in this Agreement.  No alteration of or amendment
     to this Agreement shall be effective unless given in writing and signed
     by the party or parties sought to be charged or bound by the alteration
     or amendment.

     APPLICABLE LAW.  This Agreement has been delivered to Lender and
     accepted by Lender in the State of Nevada.  If there is a lawsuit,
     Borrower agrees upon Lender's request to submit to the jurisdiction of
     the courts of Clark County, the State of Nevada (Initial Here
     ______________.).  Subject to the provisions on arbitration, this
     Agreement shall be governed by and construed in accordance with the laws
     of the State of Nevada.

     ARBITRATION.  Lender and Borrower agree that all disputes, claims and
     controversies between them, whether individual, joint, or class in
     nature, arising from this Agreement or otherwise, including without
     limitation contract and tort disputes, shall be arbitrated pursuant to
     the Rules of the American Arbitration Association, upon request of either
     party.  No act to take or dispose of any Collateral shall constitute a
     waiver of this arbitration agreement or be prohibited by this
     arbitration agreement.  This includes, without limitation, obtaining
     injunctive relief or a temporary restraining order; invoking a power of
     sale under any deed of trust or mortgage; obtaining a writ of attachment
     or imposition of a receiver; or exercising any rights relating to
     personal property, including taking or disposing of such property with
     or without judicial process pursuant to Article 9 of the Uniform
     Commercial Code.  Any disputes, claims, or controversies concerning the
     lawfulness or reasonableness of any act, or exercise of any right,
     concerning any Collateral, including any claim to rescind, reform, or
     otherwise modify any agreement relating to the Collateral, shall also be
     arbitrated, provided however that no arbitrator shall have the right or
     the power to enjoin or restrain any act of any party.  Judgment upon any
     award rendered by any arbitrator may be entered in any court having
     jurisdiction.  Nothing in this Agreement shall preclude any party from
     seeking equitable relief from a court of competent jurisdiction.  The
     statute of limitations, estoppel, waiver, laches, and similar doctrines
     which would otherwise be applicable in an action brought by a party
     shall be applicable in any arbitration proceeding, and the commencement
     of any arbitration proceeding shall be deemed the commencement of an
     action for these purposes.  The Federal Arbitration Act shall apply to
     the construction, interpretation, and enforcement of this arbitration
     provision.

     CAPTION HEADINGS.  Caption headings in this Agreement are for
     convenience purposes only and are not to be used to interpret or define
     the provisions of this Agreement.

     MULTIPLE PARTIES; CORPORATE AUTHORITY.  All obligations of Borrower
     under this Agreement shall be joint and several, and all references to
     Borrower shall mean each and every Borrower.  This means that each of
     the persons signing below is responsible for all obligations in this
     Agreement.

     CONSENT TO LOAN PARTICIPATION.  Borrower agrees and consents to Lender's
     sale or transfer, whether now or later, of one or more participation
     interests in the Loans to one or more purchasers, whether related or
     unrelated to Lender.  Lender may provide, without any limitation
     whatsoever,

<PAGE>

10-11-1999                        LOAN AGREEMENT                          PAGE 6
LOAN NO                             (CONTINUED)
--------------------------------------------------------------------------------

     to any one or more purchasers, or potential purchasers, any
     information or knowledge Lender may have about Borrower or about any
     other matter relating to the Loan, and Borrower hereby waives any rights
     to privacy it may have with respect to such matters.  Borrower
     additionally waives any and all notices of sale of participation
     interests, as well as all notices of any repurchase of such participation
     interests.  Borrower also agrees that the purchasers of any such
     participation interests will be considered as the absolute owners of
     such interests in the Loans and will have all the rights granted under
     the participation agreement or agreements governing the sale of such
     participation interests.  Borrower further waives all rights of offset or
     counterclaim that it may have now or later against Lender or against any
     purchaser of such a participation interest and unconditionally agrees
     that either Lender or such purchaser may enforce Borrower's obligation
     under the Loans irrespective of the failure or insolvency of any holder
     of any interest in the Loans.  Borrower further agrees that the purchaser
     of any such participation interests may enforce its interests
     irrespective of any personal claims or defenses that Borrower may have
     against Lender.

     COSTS AND EXPENSES.  Borrower agrees to pay upon demand all of Lender's
     expenses, including without limitation attorneys' fees, incurred in
     connection with the preparation, execution, enforcement, modification
     and collection of this Agreement or in connection with the Loans made
     pursuant to this Agreement.  Lender may pay someone else to help collect
     the Loans and to enforce this Agreement, and Borrower will pay that
     amount.  This includes, subject to any limits under applicable law,
     Lender's attorneys' fees and Lender's legal expenses, whether or not
     there is a lawsuit, including attorneys' fees for bankruptcy
     proceedings (including efforts to modify or vacate any automatic stay or
     injunction), appeals, and any anticipated post-judgment collection
     services. Borrower also will pay any court costs, in addition to all
     other sums provided by law.

     NOTICES.  All notices required to be given under this Agreement shall be
     given in writing, may be sent by telefacsimile (unless otherwise
     required by law), and shall be effective when actually delivered or when
     deposited with a nationally recognized overnight courier or deposited in
     the United States mail, first class, postage prepaid, addressed to the
     party to whom the notice is to be given at the address shown above.  Any
     party may change its address for notices under this Agreement by giving
     formal written notice to the other parties, specifying that the purpose
     of the notice is to change the party's address.  To the extent permitted
     by applicable law, if there is more than one Borrower, notice to any
     Borrower will constitute notice to all Borrowers.  For notice purposes,
     Borrower will keep Lender informed at all times of Borrower's current
     address(es).

     SEVERABILITY.  If a court of competent jurisdiction finds any
     provision of this Agreement to be invalid or unenforceable as to any
     person or circumstance, such finding shall not render that provision
     invalid or unenforceable as to any other persons or circumstances.  If
     feasible, any such offending provision shall be deemed to be modified to
     be within the limits of enforceability or validity; however, if the
     offending provision cannot be so modified, it shall be stricken and all
     other provisions of this Agreement in all other respects shall remain
     valid and enforceable.

     SUCCESSORS AND ASSIGNS.  All covenants and agreements contained by or on
     behalf of Borrower shall bind its successors and assigns and shall inure
     to the benefit of Lender, its successors and assigns.  Borrower shall
     not, however, have the right to assign its rights under this Agreement or
     any interest therein, without the prior written consent of Lender.

     SURVIVAL.  All warranties, representations, and covenants made by
     Borrower in this Agreement or in any certificate or other instrument
     delivered by Borrower to Lender under this Agreement shall be considered
     to have been rolled upon by Lender and will survive the making of the
     Loan and delivery to Lender of the Related Documents, regardless of any
     investigation made by Lender or on Lender's behalf.

     TIME IS OF THE ESSENCE.  Time is of the essence in the performance of
     this Agreement.

     WAIVER.  Lender shall not be deemed to have waived any rights under this
     Agreement unless such waiver is given in writing and signed by Lender.
     No delay or omission on the part of Lender in exercising any right shall
     operate as a waiver of such right or any other right.  A waiver by
     Lender of a provision of this Agreement shall not prejudice or
     constitute a waiver of Lender's right otherwise to demand strict
     compliance with that provision or any other provision of this Agreement.
     No prior waiver by Lender, nor any course of dealing between Lender and
     Borrower, or between Lender and any Grantor, shall constitute a waiver of
     any of Lender's rights or of any obligations of Borrower or of any
     Grantor as to any future transactions.  Whenever the consent of Lender
     is required under this Agreement, the granting of such consent by Lender
     in any instance shall not constitute continuing consent in subsequent
     instances where such consent is required, and in all cases such consent
     may be granted or withheld in the sole discretion of Lender.

EACH BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS LOAN
AGREEMENT, AND EACH BORROWER AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS
OF OCTOBER 11, 1999.

BORROWER:

PDS FINANCIAL CORPORATION

/X/ /s/  [ILLEGIBLE]
        ------------------------------------
    Authorized Officer

PDS FINANCIAL NEVADA, CO-BORROWER

By: /s/  [ILLEGIBLE]
    ----------------------------------------
    Authorized Officer

LENDER:
U.S. BANK NATIONAL ASSOCIATION

By: /s/  [ILLEGIBLE]
    ----------------------------------------
    Authorized Officer

<PAGE>

[LOGO]

                               PROMISSORY NOTE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
    PRINCIPAL      LOAN DATE      MATURITY       LOAN NO.      CALL      COLLATERAL      ACCOUNT       OFFICER     INITIALS
<S>                <C>            <C>            <C>           <C>       <C>            <C>            <C>         <C>
  $5,000,000,00    10-11-1999     10-14-2000                                140         5608780924      KMM36
------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular
loan or item.
------------------------------------------------------------------------------------------------------------------------------
BORROWER:  PDS FINANCIAL CORPORATION; ET. AL.      LENDER: U.S. BANK NATIONAL ASSOCIATION
           6171 MCLEOD DRIVE                               COMMERCIAL SERVICES GROUP
           LAS VEGAS, NV 89120                             2300 W. SAHARA, SUITE 200
                                                           LAS VEGAS, NV 89102
==============================================================================================================================
</TABLE>

PRINCIPAL AMOUNT:  $5,000,000.00                DATE OF NOTE:  OCTOBER 11, 1999

PROMISE TO PAY. PDS FINANCIAL CORPORATION and PDS FINANCIAL NEVADA (referred
to in this Note individually and collectively as "Borrower") jointly and
severally promise to pay to U.S. BANK NATIONAL ASSOCIATION ("Lender"), or
order, in lawful money of the United States of America, the principal amount
of Five Million & 00/100 Dollars ($5,000,000.00) or so much as may be
outstanding, together with interest on the unpaid outstanding principal
balance of each advance. Interest shall be calculated from the date of each
advance until repayment of each advance.

PAYMENT. Borrower will pay this loan on demand, or if no demand is made, in
one payment of all outstanding principal plus all accrued unpaid interest on
October 14, 2000. In addition, Borrower will pay regular monthly payments of
accrued unpaid interest beginning October 15, 1999, and all subsequent
interest payments are due on the same day of each month after that. The
annual interest rate for this Note is computed on a 365/360 basis; that is,
by applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender
at Lender's address shown above or at such other place as Lender may
designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
from time to time based on changes in an index which is the LENDER'S PRIME
RATE. THIS IS THE RATE OF INTEREST WHICH LENDER FROM TIME TO TIME ESTABLISHES
AS ITS PRIME RATE AND IS NOT, FOR EXAMPLE, THE LOWEST RATE OF INTEREST WHICH
LENDER COLLECTS FROM ANY BORROWER OR CLASS OF BORROWERS (the "Index"). THE
INTEREST RATE SHALL BE ADJUSTED WITHOUT NOTICE EFFECTIVE ON THE DAY LENDER'S
PRIME RATE CHANGES. Lender will tell Borrower the current index rate upon
Borrower's request. Borrower understands that Lender may make loans based on
other rates as well. The interest rate change will not occur more often than
each DAY. The interest rate to be applied to the unpaid principal balance of
this Note will be at a rate of 0.750 percentage points over the Index. NOTICE:
Under no circumstances will the interest rate on this Note be more than the
maximum rate allowed by applicable law.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance
charges are earned fully as of the date of the loan and will not be subject
to refund upon early payment (whether voluntary or as a result of default),
except as otherwise required by law.

Except for the foregoing, Borrower may pay without penalty all or a portion
of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower's obligation to
continue to make payments of accrued unpaid interest. Rather, they will
reduce the principal balance due.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform
when due any other term, obligation, covenant, or condition contained in this
Note or any agreement related to this Note, or in any other agreement or loan
Borrower has with Lender. (c) Borrower defaults under any loan, extension of
credit, security agreement, purchase or sales agreement, or any other
agreement, in favor of any other creditor or person that may materially
affect any of Borrower's property or Borrower's ability to repay this Note or
perform Borrower's obligations under this Note or any of the Related
Documents. (d) Any representation or statement made or furnished to Lender by
Borrower or on Borrower's behalf is false or misleading in any material
respect either now or at the time made or furnished. (e) Borrower becomes
insolvent, a receiver is appointed for any part of Borrower's property,
Borrower makes an assignment for the benefit of creditors, or any proceeding
is commenced either by Borrower or against Borrower under any bankruptcy or
insolvency laws. (f) Borrower is in default under any other note, security
agreement, lease agreement or lease schedule, loan agreement or other
agreement, whether now existing or hereafter made, between Borrower and U.S.
Bancorp or any direct or indirect subsidiary of U.S. Bancorp. (g) Any
creditor tries to take any of Borrower's property on or in which Lender has a
lien or security interest. This includes a garnishment of any of Borrower's
accounts with Lender. (h) Any guarantor dies or any of the other events
described in this default section occurs with respect to any guarantor of
this Note. (i) A material adverse change occurs in Borrower's financial
condition, or Lender believes the prospect of payment or performance of the
indebtedness is impaired. (j) Lender in good faith deems itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid
principal balance on this Note and all accrued unpaid interest immediately
due, without notice, and then Borrower will pay that amount. Upon default,
including failure to pay upon final maturity, Lender, at its option, may
also, if permitted under applicable law, increase the variable interest rate
on this Note to 5.750 percentage points over the Index. The interest rate
will not exceed the maximum rate permitted by applicable law. Lender may hire
or pay someone else to help collect this Note if Borrower does not pay.
Borrower also will pay Lender that amount. This includes, subject to any
limits under applicable law, Lender's attorneys' fees and Lender's legal
expenses whether or not there is a lawsuit, including attorneys' fees and
legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. If not prohibited by applicable law,
Borrower also will pay any court costs, in addition to all other sums
provided by law. This Note has been delivered to Lender and accepted by
Lender in the State of Nevada. If there is a lawsuit, Borrower agrees upon
Lender's request to submit to the jurisdiction of the courts of Clark County,
the State of Nevada (Initial Here __[ILLEGIBLE]___). Subject to the
provisions on arbitration, this Note shall be governed by and construed in
accordance with the laws of the State of Nevada.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of a security interest
would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on this Note
against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested either orally or in writing by Borrower or by an
authorized person. Lender may, but need not, require that all oral requests be
confirmed in writing. All communications, instructions, or directions by
telephone or otherwise to Lender are to be directed to Lender's office shown
above. Borrower agrees to be liable for all sums either: (a) advanced in
accordance with the instructions of an authorized person or (b) credited to
any of Borrower's accounts with Lender. The unpaid principal balance owing on
this Note at any time may be evidenced by endorsements on this Note or by
Lender's internal records, including daily computer print-outs. Lender will
have no obligation to advance funds under this Note if: (a) Borrower or any
guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Note; (b) Borrower or any guarantor
ceases doing business or is insolvent; (c) any guarantor seeks, claims or
otherwise attempts to limit, modify or revoke such guarantor's guarantee of
this Note or any other loan with Lender; (d) Borrower has applied funds
provided pursuant to this Note for purposes other than those authorized by
Lender; or (e) Lender in good faith deems itself insecure under this Note or
any other agreement between Lender and Borrower.

ARBITRATION. Lender and Borrower agree that all disputes, claims and
controversies between them, whether individual, joint, or class in nature,
arising from this Note or otherwise, including without limitation contract
and tort disputes, shall be arbitrated pursuant to the Rules of the American
Arbitration Association, upon request of either party. No act to take or
dispose of any collateral securing this Note shall constitute a waiver of
this arbitration agreement or be prohibited by this arbitration agreement.
This includes, without limitation, obtaining injunctive relief or a
temporary restraining order; invoking a power of sale under any deed of trust
or mortgage; obtaining a writ of attachment or imposition of a receiver; or
exercising any rights relating to personal property, including taking or
disposing of such property with or without judicial process pursuant to
Article 9 of the Uniform Commercial Code. Any disputes, claims, or
controversies concerning the lawfulness or reasonableness of any act, or
exercise of any right, concerning any collateral securing this Note,
including any claim to rescind, reform, or otherwise modify any agreement
relating to the collateral securing this Note, shall also be arbitrated,
provided however that no arbitrator shall have the right or the power to
enjoin or restrain any act of any party. Judgment upon any award rendered by
any arbitrator may be entered in any court having jurisdiction. Nothing in
this Note shall preclude any party from seeking equitable relief from a court
of competent jurisdiction. The statute of limitations, estoppel, waiver,
laches, and similar doctrines which would otherwise be applicable in an
action brought by a party shall be applicable in any arbitration proceeding,
and the commencement of an arbitration proceeding shall be deemed the
commencement of an action for these purposes. The Federal Arbitration Act
shall apply to the construction, interpretation, and enforcement of this
arbitration provision.

LATE CHARGE. If a payment is 15 days or more past due, Borrower will be
charged a late charge of 5% of the delinquent payment.

YEAR 2000. Year 2000. Borrower has reviewed and assessed its business
operations and computer systems and applications to address the "year 2000
problem" (that is, that computer applications and equipment used by
Borrower, directly or indirectly through third parties, may be unable to
properly perform date-sensitive functions before, during and after January 1,
2000). Borrower reasonably believes that the year 2000 problem will not

<PAGE>

10-11-1999                      PROMISSORY NOTE                          PAGE 2
LOAN NO.                          (CONTINUED)
-------------------------------------------------------------------------------

result in a material adverse change in Borrower's business condition
(financial or otherwise), operations, properties or prospects or ability to
repay Lender. Borrower agrees that this representation will be true and
correct on and shall be deemed made by Borrower on each date Borrower
requests any advance under this Agreement or Note or delivers any information
to Lender. Borrower will promptly deliver to Lender such information
relating to this representation as Lender requests from time to time.

PRIOR NOTE. Promissory note from Borrower to Lender dated August 5, 1998 in
the principal amount of $4,000,000.00.

GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific
default provisions or rights of Lender shall not preclude Lender's right to
declare payment of this Note on its demand. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them.
Each Borrower understands and agrees that, with or without notice to
Borrower, Lender may with respect to any other Borrower (a) make one or more
additional secured or unsecured loans or otherwise extend additional credit;
(b) alter, compromise, renew, extend, accelerate, or otherwise change one or
more times the time for payment or other terms of any indebtedness, including
increases and decreases of the rate of interest on the indebtedness; (c)
exchange, enforce, waive, subordinate, fail or decide not to perfect, and
release any security, with or without the substitution of new collateral; (d)
apply such security and direct the order or manner of sale thereof, including
without limitation, any nonjudicial sale permitted by the terms of the
controlling security agreements, as Lender in its discretion may determine;
(e) release, substitute, agree not to sue, or deal with any one or more of
Borrower's sureties, endorsers, or other guarantors on any terms or in any
manner Lender may choose; and (f) determine how, when and what application of
payments and credits shall be made on any other indebtedness owing by such
other borrower. Borrower and any other person who signs, guarantees or
endorses this Note, to the extent allowed by law, waive presentment, demand
for payment, protest and notice of dishonor. Upon any change in the terms of
this Note, and unless otherwise expressly stated in writing, no party who
signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that
Lender may renew or extend (repeatedly and for any length of time) this loan,
or release any party or guarantor or collateral; or impair, fail to realize
upon or perfect Lender's security interest in the collateral; and take any
other action deemed necessary by Lender without the consent of or notice to
anyone. All such parties also agree that Lender may modify this loan without
the consent of or notice to anyone other than the party with whom the
modification is made. The obligations under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.
EACH BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A
COMPLETED COPY OF THE NOTE.

BORROWER:

PDS FINANCIAL CORPORATION

  /s/   [ILLEGIBLE]
----------------------------
  Authorized Officer

PDS FINANCIAL NEVADA, Co-Borrower

By:  /s/   [ILLEGIBLE]
   ----------------------------
   Authorized Officer

LENDER:
U.S. BANK NATIONAL ASSOCIATION

By:  /s/   [ILLEGIBLE]
   ----------------------------
   Authorized Officer<PAGE>

                         LOAN AND SECURITY AGREEMENT

                               (FULL RECOURSE)

This Loan and Security Agreement ("Agreement") is entered into as of
___________, 1999 between PDS Financial Corporation - Nevada a Nevada
corporation ("Borrower"), having its principal place of business at 6171 McLeod
Drive, Las Vegas, Nevada 89120, and Sun West Bank, a Nevada corporation
("Lender") having its principal place of business at 5830 W. Flamingo Road, Las
Vegas, NV 89103.

                            PRELIMINARY STATEMENT

Lender understands that Borrower is engaged in the sale or lease of various
Eligible Equipment (this and all other capitalized terms are defined in Section
1.1 below), and that Borrower may from time to time offer to Lender the
opportunity to finance leases, installment sale contracts and other chattel
paper arising out of such business. This Agreement sets forth the terms and
conditions which will be applicable to any leases, installment sale compacts and
other chattel paper that Lender may finance under an ongoing term loan facility.

                                  ARTICLE I

                                 DEFINITIONS

1.1      Definitions. As used in this Agreement and in the other Loan Documents,
unless otherwise expressly indicated herein or therein, the following terms
shall have the following meanings (such definitions to be applicable both to the
singular and plural terms defined):

         Acquisition Cost: all costs and expenses incurred by an End-User (in
the case of installment/conditional sales contracts) or by Borrower (in the case
of any Leases with Borrower as lessor) in connection with the acquisition of any
Eligible Equipment. Including, without limitation, sales or use taxes, freight
or installation costs, and license fees, but excluding any deposits (including
security deposits) or down/advance payments made by End-User, or manufacturer's
discounts.

         Advance:  a loan which is part of the Facility.

         Affiliate: any Person that directly or indirectly, through one or more
intermediaries, controls or is controlled by or is under common control with
another Person. The term "control" means possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise. For the purposes hereof, any Person which owns or controls, directly
or indirectly, 51% or more of the securities of another Person shall be deemed
to "control" such Person.

         Agreement or Loan and Security Agreement: this Loan and Security
Agreement, as amended or supplemented at any time.

         Amortization Schedule: a schedule approved by Lender for the repayment
of each Advance.

         Approved Contract Term: without the prior written approval of Lender, a
period of time not less than 6 months and not more than 48 months.

         Assignment: the assignment of Contracts, and any Lien applicable
thereto in the form of Exhibit A executed by Borrower in favor of Lender.

         Borrower Event of Default: any of the Events of Default described in
Section 8.1.

         Borrower Lien: a Lien on Collateral granted by an End-User to Borrower,
which Lien has been assigned by Borrower to Lender pursuant to an Assignment.

                                       1

<PAGE>

         Borrower's Obligations: (i) all liabilities, obligations and covenants
imposed upon Borrower pursuant to the terms of the Loan Documents, and (ii) all
costs of litigation, collection, reasonable attorneys' fees and other costs
expended or incurred in connection with the enforcement of Lender's rights
hereunder and with respect to the Contracts and the Facility Equipment.

         Business Day: any day other than (i) a Saturday (ii) Sunday or (iii)
other day on which Lender is closed.

         Casualty: an event in which any item of Facility Equipment or any
portion thereof is lost, damaged (and such damage cannot reasonably be repaired
by Borrower or an End-User of such Facility Equipment within 60 days),
destroyed, stolen, confiscated, requisitioned or condemned regardless of cause.

         Casualty Payments: all proceeds of the Collateral which arise out of
any Casualty, including, without limitation, insurance claims, tort claims, or
reimbursement payments with respect to claims for indemnity.

         Certificate of Acceptance: a certificate of delivery and acceptance
executed by an End-User pursuant to a Contract with respect to Facility
Equipment, substantially in the form included in Schedule 1.

         Closing: the execution by Borrower and Lender of the Loan Documents.

         Closing Certificate: a certificate in the form of Exhibit C executed by
a Responsible Officer on behalf of Borrower.

         Closing Date: the date upon or as of which the Closing occurs.

         Collateral: the Property described in Section 3.2.

         Contract: (i) a lease of Eligible Equipment by and between Borrower, as
lessor, and an End-User, as lessee, or (ii) a note and security
agreement/conditional sale contract by and between Borrower, as secured party,
and an End-User, as debtor.

         Contract Event of Default: the Event of Default described in Section
8.3.1.

         Contract Funding Request: a request for an Advance in the form of
Exhibit D delivered by Borrower to Lender, with all attachments as specified
therein.

         Contract Payment Letter: a letter in the form of Exhibit E.

         Contract Proceeds: funds received by Borrower with respect to any
Facility or any Facility Equipment which is the subject of a Facility Contract.

         Default Rate: an annual rate equal to 5.00% plus the Facility Rate, as
applicable.

         Default Rate Period: a period of time commencing on the date that the
default first exists as identified by Lender in writing to Borrower, and ending
on the date that the Borrower Event of Default is cured or waived.

         Disbursement Date: any date on or after the Closing Date upon which the
proceeds of any Advance are disbursed.

         Eligible Contract: a Contract (i) as to which the applicable Facility
Funding Amount will not exceed the sum of $250,000.00 nor be less than
$25,000.00 without the prior written approval of Lender, and (ii) meets all of
the requirements set forth in Section 5.9 and all subsections thereunder.

         Eligible End-User: an End-User (i) which is not in bankruptcy or
receivership or subject to a reorganization proceeding of any kind or insolvent,
(ii) which is not in default or breach under any of the terms of the applicable
Contract, and (iii) which, Borrower has reasonably determined, is a financially
responsible and creditworthy commercial or institutional entity (other than a
Governmental Body).

         Eligible Equipment: gaming or other equipment (i) which is new or used,
(ii) which is in good condition, repair and working order, (iii) which is
insured in the manner provided in the applicable Contract, (iv) (A) which is
owned by Borrower free and clear of all Liens except a Lender Lien, or (B) in
which the End-User thereof has granted Borrower a security interest free and

                                       2

<PAGE>

clear of all Liens except Permitted Liens, (v) which is located within the
continental United States, (vi) which is subject to an Eligible Contract, and
(vii) which is not subject to a software licensing agreement for its
re-marketing.

         End-User:  the end-user under a Contract.

         Equipment: equipment which has been approved by Lender, free and clear
of all liens and encumbrances, together with all substitutions and replacements
for such equipment and all accessories, attachments, parts, upgrades, features
and peripheral equipment now or hereafter attached to or used in connection
therewith.

         Estimated Residual: as reflected on the Amortization Schedule to each
Promissory Note, Borrower's estimated value, as of the end of the related
primary Contract term, of Facility Equipment.

         Event of Default: any Borrower Event of Default or Contract Event of
Default.

         Evidence of Insurance: either (i) an original certificate of insurance.
(ii) documentation sufficient to establish coverage under a previously approved
policy of Borrower, or (iii) if approved in writing by Lender, evidence of
self-insurance by an End-User under a Facility Contract.

         Facility: the Advances to be made by Lender to Borrower pursuant to
Article II and Section 4.2.

         Facility Contract: an Eligible Contract which is subject to an Advance,
along with all applicable related documentation.

         Facility Equipment: any Eligible Equipment which is the subject of a
Facility Contract.

         Facility Funding Amount: with respect to each Facility Contract which
is proposed to be made the subject of an Advance, the lesser of:

                  (i)  100% of the Acquisition Cost for each item of Facility
                       Equipment, or

                  (ii) the present value of the remaining payments, including
                       the Estimated Residual, calculated using the implicit
                       rate of the Eligible Contract.

         Facility Note: a full recourse promissory note in the form of Exhibit F
executed by Borrower in favor of Lender in conjunction with each Advance.

         Facility Rate: with respect to each Advance interest shall accrue at a
floating rate equal to Lender's announced Base Rate plus 1.00% (Lender's Base
Rate as of the date of this Agreement is 7.75%); provided, however, that the
Facility Rate shall never be less than 8.50% per annum.

         GAAP: generally accepted accounting principles as in effect from time
to time, which shall include the official interpretations thereof by the
Financial Accounting Standards Board, consistently applied.

         Gaming Authorities: the governmental agencies and/or commissions having
jurisdiction over Borrower in the various states in which Borrower does
business.

         Gaming Laws: the statutes and regulations relating to gaming and the
operation of Gaming Device Goods promulgated by the various states and Gaming
Authorities in which Borrower does business.

         Gaming Device Goods: Equipment consisting of electronic and mechanical
gaming devices with integral attachments.

         Good Funds: United States dollars available to Lender in Federal funds
at or before 2:00 p.m. Las Vegas time on a Business Day.

         Governmental Body: any foreign, federal, state, municipal or other
government or any department, commission, board, bureau, agency, public
authority or instrumentality thereof or any court or arbitrator.

                                       3

<PAGE>

         Guaranty: the continuing guaranty to be executed and delivered by PDS
Financial Corporation, substantially in the form of Exhibit J, as amended,
supplemented or otherwise modified from time to time.

         Incipient Default: any event or condition which, with the giving of
notice or the lapse of time, or both, would become an Event of Default.

         Lease: any lease agreement or master lease agreement pertaining to
Eligible Equipment between Borrower, as lessor and another Person, as lessee.

         Lender Lien: the Lien on the Collateral granted by Borrower to Lender
pursuant to Article III of this Agreement.

         Lien: any mortgage, deed of trust, hypothecation, pledge, security
interest, encumbrance, lien or charge of any kind (including any agreement to
give any of the foregoing), any conditional sale or other title retention
agreement or any lease in the nature of any of the foregoing.

         Loan Documents: this Agreement, the Notes, the Guaranty, the
Assignments, the Contract Funding Requests, the Closing Certificate, UCC
financing statements, and all other documents, Instruments, and certificates
executed by Borrower pursuant to this Agreement.

         Loan Repayment Amount: with respect to an Advance at any time, the
aggregate unpaid principal of, and accrued interest (including any interest
accrued at the Default Rate) computed in accordance with the Simple Interest
Method on such Advance. "Simple Interest Method" as used herein is defined as
the annual interest rate for an Advance computed on a 365/360 basis; that is, by
applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding.

         Notes:  the Facility Note executed in conjunction with each Advance.

         Permitted Liens: any of the following Liens: (i) the Lender Lien; (ii)
any Borrower Lien; (iii) any Liens expressly subordinate to (i) and/or (ii)
above; and (iv) Liens for taxes or assessments and similar charges, which either
are (A) not delinquent or (B) being contested diligently and in good faith by
appropriate proceedings, and as to which Borrower has set aside adequate
reserves on its books.

         Person: any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization association, corporation,
institution, entity, party or Governmental Body.

         Property: all types of real, personal, or mixed property and all types
of tangible or intangible property.

         Residuals: all proceeds (net of refurbishment costs, if any) derived
from the Equipment as a result of (i) extended or renewal Contract payments,
(ii) exercised purchase options, and/or (iii) sale or lease of the Equipment to
third parties.

         Responsible Officer: any of the Chairman, President, Treasurer,
Secretary or Vice President of Borrower.

         UCC:  the Nevada Uniform Commercial Code, NRS 104.1101 et seq.

1.2      Time Periods. In this Agreement and the other Loan Documents, in the
computation of periods of time from a specified date to a later specified date
(i) the word "from" means "from and including," (ii) the words "to" and "until"
each mean "to, but excluding" and (iii) the words "through," "end of" and
"expiration" each mean "through and including." All references in this Agreement
and the other Loan Documents to "month," "quarter" or "year" shall be deemed to
refer to a calendar month, quarter or year.

1.3      Accounting. Unless otherwise specified in this Agreement, all
accounting terms used herein shall be construed, all accounting
determinations hereunder shall be made, and all financial statements required
to be delivered pursuant hereto shall be prepared in accordance with GAAP.

1.4      References. All references in this Agreement to an "Article,"
"Section," "subsection," "subparagraph," "clause," 'Schedule" or "Exhibit,"
unless otherwise indicated, shall be deemed to refer to an Article, Section,
subsection, subparagraph, clause, Schedule or Exhibit, as applicable, of or
to this Agreement.

                                       4

<PAGE>

1.5      Lender's Discretion. Whenever the terms "satisfactory to,"
"determined by," "acceptable to," "shall elect," "shall request," or similar
terms are used in this Agreement or any of the other Loan Documents to apply
to Lender, except as otherwise specifically provided herein or therein, such
terms shall mean satisfactory to, at the election of, determined by,
acceptable to, or requested by, Lender, in its sole, but reasonable,
discretion.

1.6      Statements as to Knowledge. Any statements, representations or
warranties which are based upon the best knowledge of Borrower shall be
deemed to have been made after due inquiry with respect to the matter in
question.

                                 ARTICLE II

                    FACILITY AND PAYMENT/PREPAYMENT TERMS

2.1      The Revolving Term Facility. The Facility is one or more full recourse
Advances made by Lender from time to time to fund Eligible Contracts, subject to
the provisions of Article II and Section 4.2. Notwithstanding anything contained
herein to the contrary, the maximum amount outstanding at any one time shall not
exceed One Million Dollars ($1,000,000.00). Notwithstanding anything contained
herein to the contrary, the Facility, and Lender's obligation to make additional
or future Advances shall terminate on a date one (1) year from the date of this
Agreement, unless previously terminated in accordance with Paragraph 2.2 below.

2.2      Voluntary Termination of Facility. Upon not less than thirty (30) days'
prior written notice, either party may notify the other of its intention, for
any reason or no reason, not to seek/provide any further financing hereunder;
provided, however, that notwithstanding the foregoing, all of Borrower's
Obligations shall survive any expiration or termination of this Agreement and/or
the termination of any Facility Contract.

2.3      Interest Rate, Computation. Each Advance shall be indicated by a
Facility Note, which shall bear interest at the Facility Rate noted thereon,
which shall be computed on the basis of a year consisting of 360 days and
charged for the actual number of days during the period for which interest is
being charged.

2.4      Servicing and Payments. Borrower, at its sole cost and expense,
shall be responsible for the billing and collecting of the payments due under
any Contract(s). BORROWER SHALL PAY TO LENDER THE AMOUNTS DUE UNDER THE
RELATED FACILITY CONTRACTS BY THE 10TH OF THE FOLLOWING MONTH, WHETHER OR NOT
SUCH AMOUNTS HAVE BEEN REMITTED BY THE RESPECTIVE END-USERS. All payments
made pursuant to this subsection 2.4 shall be applied FIRST, to accrued and
unpaid interest then due Lender calculated at the Facility Rate through the
last date of such immediately preceding month; SECOND, to principal due
Lender on the applicable Advances until paid in full;, and THIRD, to any
accrued and unpaid fees and expenses then owed by Borrower to Lender. . In
the event Borrower fails to perform the foregoing billing and collecting
duties in a manner satisfactory to Lender in its sole discretion, Lender may
terminate Borrower's authorization under this subparagraph.

2.5      Loan, Documentation and Attorney Fees. Upon the execution of this
Agreement, Borrower shall pay to Lender a Loan fee of $5,000.00, a
documentation fee of $250.00, and all fees and expenses incurred by Lender's
legal counsel in connection with this transaction. In addition, Borrower
shall pay to Lender a documentation, processing and UCC Filing/Release fee of
$135.00 for each Advance, which fee is due and payable at the time of funding
such Advance.

2.6      Prepayment.

         2.6.1    Voluntary Prepayment. Voluntary prepayment by Borrower of any
Advances shall be permitted without penalty upon ten (10) days prior written
notice to Lender.

         2.6.2    Mandatory Prepayment.

                  2.6.2.1  Termination of Contract. If an End-User voluntarily
terminates or fails to perform under a Facility Contract before its scheduled
expiration, Borrower shall prepay the associated Advance within ten (10)
Business Days of such termination or failure.

                                       5

<PAGE>

                  2.6.2.2  Casualty. If any Equipment subject to an Advance is
lost or damaged, and cannot be repaired or replaced with substantially similar
Equipment by the first due date occurring not less than sixty (60) days after
such loss or damage, Borrower shall prepay the associated Advance within ten
(10) Business Days thereafter.

                  2.6.2.3  Early Termination without End-User Buyout. If a
Facility Contract is voluntarily terminated by an End-User prior to the
scheduled expiration, without the exercise of a purchase option, Borrower shall
prepay the associated Advance within thirty (30) days of such event.

                  2.6.2.4  Upgrades and Additions. Borrower may agree with an
End-User under a Facility Contract that the Equipment subject to such Contract
shall be upgraded or that additional Eligible Equipment should be added,
resulting in a new Facility Contract or replacement Facility Contract. If
Borrower and such End-User amend such Facility Contract to increase the payments
payable thereunder in consideration of such upgrade or addition, Borrower shall
prepay the obligations relating to the Facility Contract. Borrower may request
that Lender finance the amended Contract as a new Facility Contract , subject to
the terms outlined herein.

2.7      Late Charges; Default Rate. If any payment of principal or interest
to be made by Borrower to Lender under the Facility becomes past due for a
period of 10 days, Borrower shall pay to Lender on demand a late charge of
five percent (5%) of the amount of such overdue payment. In addition, during
a Default Rate Period, Borrower's Obligations pertaining to the Facility
shall bear interest at the Default Rate.

2.8      Payment after Borrower Event of Default. Upon the occurrence and
during the continuation of a Borrower Event of Default, all Contract Proceeds
pertaining to Facility Contracts and/or Facility Equipment shall be applied
by Lender in such manner as Lender shall determine.

2.9      Maximum Interest. Notwithstanding any provision to the contrary herein
contained, Lender shall not collect a rate of interest on any obligation or
liability due and owing by Borrower to Lender in excess of the maximum contract
rate of interest permitted by applicable law. Lender and Borrower have agreed
that all laws including the interest rate laws of the State of Nevada shall
govern the relationship between them, but in the event of a final adjudication
to the contrary, Borrower shall be obligated to pay to Lender such interest as
then shall be permitted by the applicable laws of the State of Nevada. All
interest found in excess of that rate of interest allowed and collected by
Lender shall be applied to the Advances in such manner as to prevent the payment
and collection of interest in excess of the rate permitted by applicable Nevada
law.

2.10     Method of Payment; Good Funds. All payments which are to be made by
Borrower to Lender pursuant to the Loan Documents shall be made by wire transfer
to Sun West Bank, ABA #122402010, and reference the applicable note number as
designated by Lender. Payment shall not be deemed to be received until Lender is
in receipt of Good Funds.

                                 ARTICLE III

                          NOTES: SECURITY INTEREST

3.1      Notes. Borrower's Obligations described in clause (i) of the
definition of such term shall be evidenced by the Notes.

3.2      Grant of Security Interest. As security for the payment and
performance of Borrower's Obligations, Borrower hereby grants to Lender,
subject to all mandatory provisions of law, including without limitation, the
Gaming Laws, a Lien in the following described collateral (the "Collateral"),
such Lien to be superior and prior to all other Liens other than Permitted
Liens:

         (a)      Facility Equipment. All of Borrower's right, title and
interest (including any residual interest) in and to the Facility Equipment,
whatever its condition, insured status, lien status, location, or
relationship to an Eligible Contract.

         (b)      The Contracts. All chattel paper and Contracts pertaining
to any Facility Equipment, including, without limitation, all of Borrower's
right, title and interest in, to and under each Facility Contract relating to
each item of Facility Equipment and the right to receive all payments
thereunder.

         (c)      Books and Records. All of the books and records of Borrower
pertaining to the Property described in subparagraphs (a) and (b) above.

                                       6

<PAGE>

         (d)      Proceeds. All attachments, additions, accessions, upgrades,
accessories and replacements pertaining to the items described in subparagraphs
(a) through (c) above, as applicable, including all cash and non-cash proceeds
(including Casualty Payments and other insurance proceeds) pertaining thereto.

         Lender shall not be required to look to the Collateral for the payment
of Borrower's Obligations, but may proceed against Borrower in such manner as
Lender deems desirable. All of the Collateral assigned to Lender hereunder shall
secure the payment and performance of all of Borrower's Obligations, and whether
now existing or in the future, and wherever located; provided, however, that
upon the payment and performance in full of all of Borrower's Obligations with
respect to a Facility Contract, the Loan Documents applicable to such Facility
Contract and such Facility Equipment shall automatically terminate. Lender shall
execute and deliver to Borrower such UCC termination statements and other
instruments as may be necessary to release the applicable Lender Lien(s) in the
related Collateral, and shall return all items of chattel paper to Borrower with
respect thereto.

                                 ARTICLE IV

                       CONDITIONS OF CLOSING; ADVANCES

4.1      Conditions of Closing. The Closing shall not take place unless all
of the conditions set forth in this Section 4.1 have been satisfied in a
manner, form and substance satisfactory to Lender:

         4.1.1    Representations and Warranties. On the Closing Date, the
representations and warranties of Borrower set forth in the Loan Documents shall
be true and correct in all material respects.

         4.1.2    Delivery. The following shall have been delivered to
Lender, each duly authorized and executed:

                  (a) the Agreement with all Exhibits and Schedules, the
                      Guaranty; and the Closing Certificate;

                  (b) a certificate of the Secretary or an Assistant
                      Secretary of Borrower in the form of Exhibit G, with
                      all attachments noted therein;

                  (c) a certified copy of the forms of Contract used by
                      Borrower, to be attached to the Agreement as Schedule 1;

                  (d) such additional instruments, documents, certificates,
                      consents, financing statements, waivers and opinions
                      as Lender reasonably may request.

         4.1.3    Security Interests. All UCC financing statements, including
UCC-l(s) naming Borrower as debtor and Lender as secured party to be filed where
applicable, using the collateral description substantially in the form attached
hereto as Exhibit B, shall have been filed and confirmation thereof received by
Lender.

         4.1.4    Opinion of Counsel. Lender shall have received from a legal
counsel satisfactory to both Borrower and Lender, an opinion dated the Closing
Date, addressed to Lender in the form of Exhibit H.

         4.1.5    Performance; No Default. Borrower shall have performed and
complied with all agreements and conditions contained in the Loan Documents to
be performed by or complied with prior to or at the Closing Date.

         4.1.6    Approval of Loan Documents and Security Interests. The
approval and/or consent shall have been obtained from all Governmental Bodies
and all other Persons whose approval or consent is necessary or required to
enable Borrower to (i) enter into and perform its obligations under the Loan
Documents, (ii) grant to Lender the Lender Lien and (iii) consummate the
Advances.

         4.1.7    Material Adverse Change. Since the issuance of Borrower's most
recent fiscal year-end financial statements, no event shall have occurred which
has a material adverse effect on (i) the financial condition, Property,
business, operations, ownership, structure, prospects or profits of Borrower,
(ii) the ability of Borrower to perform its obligations under the Loan
Documents, or (iii) the Collateral.

                                       7

<PAGE>

4.2      Procedures for and Conditions to Advances

         4.2.1    DISCRETIONARY BORROWING/LENDING. NOTWITHSTANDING THE OTHER
PROVISIONS OF THIS AGREEMENT, ADVANCES SHALL BE MADE ONLY WHEN BOTH (I)
BORROWER, IN ITS SOLE DISCRETION, DESIRES TO BORROW MONEY FROM LENDER AND (II)
LENDER, IN ITS SOLE DISCRETION, DESIRES TO LOAN MONEY TO BORROWER; IT BEING
AGREED THAT THIS AGREEMENT SHALL NOT BE CONSTRUED AS IMPOSING ANY DUTY ON
BORROWER TO BORROW FROM LENDER NOR ANY DUTY ON LENDER TO LOAN TO BORROWER. IN
CONSTRUING THE PURPOSE AND INTENT OF THIS AGREEMENT, THIS SECTION 4.2.1 SHALL
TAKE PRECEDENCE OVER ALL OTHER PROVISIONS.

         4.2.2    Procedure for Advance(s). Subject to the satisfaction of the
terms and conditions set forth in this Section 4.2, on or after the Closing
Date, Borrower may request Lender to disburse the proceeds of any Advance as set
forth by Borrower in the related Contract Funding Request. The Contract Funding
Request shall specify: (A) the date such Advance is to be made, which shall be a
Business Day not less than 5 Business Days after the delivery to Lender of such
Contract Funding Request, and (B) the amount of Advance, which shall not exceed
the applicable Facility Funding Amount. Lender shall not be obligated to
consider making any Advance (i) if an Incipient Default or Event of Default
exists or will occur if the requested Advance is made or (ii) with respect to
any Contact which Lender determines is not an Eligible Contract or for an
End-User which Lender determines is not an Eligible End-User.

         4.2.3    Conditions of Advances. Lender shall not be obligated to
consider making any Advance(s) on or after the Closing Date unless all of the
conditions set forth in this Section 4.2 have been satisfied in a manner,
form and substance satisfactory to Lender, including the following:

                  4.2.3.1  Representations and Warranties. On the date of such
Advance, the representations and warranties of Borrower set forth in the Loan
Documents shall be true and correct in all material respects.

                  4.2.3.2  Delivery of Documents. In addition to the documents
previously delivered to Lender pursuant to Section 4.1, the following shall have
been delivered to Lender, each duly authorized and executed:

                           (a)  the Contract Funding Requests for the
Advances to be made, with all attachments noted therein:

                           (b)  such additional instruments, documents,
certificates, consents, financing statements, waivers and opinions as Lender
reasonably may request, including any opinions of outside counsel required
under Section 4.1.4 not previously received by Lender.

                  4.2.3.3  Security Interests.  All UCC financing statements,
including, but not limited to:

                           (a)  in the case of Facility Contracts under which
Borrower is the owner of the Equipment, UCC-l(s) naming Borrower as debtor,
and Lender as secured party, to be filed with the Secretary of State's office
where the Equipment is located and with the Secretary of State in which
Borrower maintains its principal place of business.

                           (b)  UCC-l(s) naming End-User as debtor or lessee,
and Borrower as secured party or lessor, to be filed in the state(s) where
the Equipment is located.

                           (c)  In the event that Lender has not been named
as assignee on the UCC-l(s) referred to in subsection 4.2.3.3(b), UCC- 2(s),
as required, naming Lender as assignee shall be filed in the jurisdiction(s)
where the UCC-1(s) referred to in subsection 4.2.3.3(b) are filed, and

                           (d)  all other filings and actions necessary to
perfect and maintain the Lender Lien as a valid and perfected Lien in the
Collateral shall have been flied and confirmation thereof received by Lender.

                                       8

<PAGE>

                                  ARTICLE V

                       REPRESENTATIONS AND WARRANTIES

Borrower hereby represents and warrants to Lender as follows:

5.1      Organization, Power, Authority, etc. Borrower (i) is duly organized,
validly existing and in good standing under the laws of the State of Nevada,
(ii) is qualified to do business in every jurisdiction in which the character
of the Property owned or leased by it or the business conducted by it makes
such qualification necessary and the failure to so qualify would permanently
preclude Borrower from enforcing its rights with respect to any Facility
Contract or Facility Equipment or would expose Borrower to any material loss
or liability, (iii) has the power and authority to carry on its business,
(iv) has the power and authority to execute and perform this Agreement and
the other Loan Documents, and (v) has duly authorized the execution, delivery
and performance of this Agreement and the other Loan Documents.

5.2      Validity, etc., of Loan Documents. This Agreement and the other Loan
Documents constitute the legal, valid and binding obligations of Borrower and
are enforceable against Borrower in accordance with their respective terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by equitable principles (whether or not any
action to enforce such document is brought at law or in equity). The execution,
delivery and performance of the Loan Documents by Borrower (i) has not violated
and will not violate any provision of law, any order of any Governmental Body,
or the Certificate of Incorporation or Bylaws of Borrower (or the equivalent of
the foregoing if Borrower is not a corporation), or any indenture, agreement or
other instrument to which Borrower is a party, (ii) is not in conflict with,
will not result in a breach of or, with the giving of notice, or the passage of
time, or both, will not constitute a default under any such indenture, agreement
or other instrument, and (iii) will not result in the creation or imposition of
any Lien of any nature whatsoever upon any of the Property of Borrower, for
Permitted Liens.

5.3      Other Agreements. Borrower is not a party to any agreement or
instrument materially adversely affecting its present or proposed business,
properties, or assets, and Borrower is not in default in the performance,
observance or fulfillment of any material obligation, covenant or condition
set forth in any agreement or instrument to which it is a party, which
default would have a material adverse effect on the ability of Borrower to
consummate any of the transactions contemplated by the Loan Documents or to
perform any of its obligations under any of the Loan Documents.

5.4      Principal Place of Business. The principal place of business of
Borrower and its chief executive office are at 6171 McLeod Drive, Las Vegas,
Nevada 89120. Borrower has not done business under any name other than PDS
Financial Corporation - Nevada.

5.5      Priority. The Lender Lien is subject to no prior Liens other than
Permitted Liens, and all Borrower Liens have been or will be assigned to
Lender pursuant to an Assignment.

5.6      Financial Statements. Borrower has delivered to Lender the financial
statements described on Schedule 2. Such financial statements present fairly the
financial condition and results of operations of Borrower as of the dates and
for the periods indicated therein. All of the foregoing financial statements,
except as otherwise indicated therein, have been prepared in accordance with
GAAP.

5.7      Litigation. Except as set forth in Schedule 3, there are no actions,
suits, arbitrations, proceedings or claims (whether or not purportedly on
behalf of Borrower) pending or to the best knowledge of Borrower, threatened,
against Borrower or maintained by Borrower, at law or in equity or before any
Governmental Body which, if adversely determined, would have a material
adverse effect on the ability of Borrower to consummate any of the
transactions contemplated by the Loan Documents or perform any of its
obligations under any of the Loan Documents.

5.8      Necessary Property. Borrower has all necessary rights in its Property
(including all patents or trademarks) which are necessary to conduct the
business of Borrower as now conducted.

5.9      Validity and Enforceability of Contracts. At the time a Contract is
assigned to Lender (and thereupon becomes a Facility Contract) and, unless
expressly limited to that point in time, at all future times with respect to
each of the Facility Contracts, all rights assigned as part of the Facility
Contracts, including without limitation all Facility Equipment covered
thereby:

                                       9

<PAGE>

         (i)      Any material modifications of a Contract from the form
approved by Lender, as attached to this Agreement as part of Schedule 1, are
identified in the related Contract Funding Request; all Contracts have been
originated by Borrower as either lessor or secured party; all Contracts arise
from a bona fide non-cancelable contract for Eligible Equipment with an
Eligible End-User for an Approved Contract Term; and all Equipment described
in the Contracts is in all respects in accord with the requirements of the
Contracts and has been delivered to and unqualifiedly accepted by the
End-User thereunder; unless specifically agreed to by Lender in writing, none
of the Equipment, after delivery and acceptance by the End-User, is a fixture
under the applicable laws of any state where such Equipment is or may be
located nor is located outside the United States;

         (ii)     All Contracts and related Equipment comply with all applicable
laws and regulations, including, without limitation, interest/usury,
truth-in-lending and disclosure laws; all Contracts are genuine, valid, binding
and enforceable in accordance with their terms, accurately describe the related
Equipment and the Payments due under the Contracts, and are in all respects what
they purport to be; all Contracts, the related Equipment and all proceeds
thereof are not subject to any lien, claim or security interest except the
interest of the End-User, which shall be assigned to Lender contemporaneously
herewith, and Permitted Liens; and all Contracts, and related rights,
agreements, documents and instruments are assignable to Lender without consent
of any person, including without limitation, any End-User or any Governmental
Body or agency and no such assignment will delegate, create or impose any duty,
obligation or liability on Lender;

         (iii)    At the time of Borrower's assignment of the Contracts,
subject to compliance with all mandatory provisions of law, including without
limitation, the Gaming Laws, Borrower has (A) good title to all of the
Contracts, including the right to receive the payments due thereunder, (B)
either good title to or a first, prior and perfected lien in all related
Equipment; (B) all legal power, right and authority to sell the Contracts and
grant the security interest described herein to Lender; (C) not sold,
transferred, encumbered, assigned or pledged any part of the Contracts or
related Equipment to any other Person; and (D) paid in full all vendors of
the Equipment subject to the Contracts, or will agree to have Lender pay such
vendors with the proceeds of the applicable Advance;

         (iv)     All counterparts of all Contracts have been clearly marked to
indicate that only one thereof is the "Original" and assignable, and such
"Original" shall be delivered to Lender at the time of Borrower's assignment of
the Contract;

         (v)      Except for any master leases, copies of which have been
provided to Lender, Borrower has provided Lender with an original of all
material agreements entered into in connection with the Contracts, and the
Equipment related to the Contracts; the Contract constitutes the entire
agreement and there are no oral representations, warranties or agreements
related thereto; the Contracts employ substantially standard pricing and
documentation (including, without limitation, provisions concerning payment
terms, assignment maintenance, termination, renewal insurance and stipulated
loss provisions); the Contracts contain no purchase option to or for the
End-User which has not been disclosed in writing to Lender;

         (vi)     Each party to each Contract has all the legal capacity,
power and right required for it to enter into such Contract and any
supplemental agreements, and to perform its obligations thereunder; all such
actions have received all corporate or governmental authorization required by
any applicable charter, by-law constitution, law, rule or regulation;

         (vii)    None of the following existed at the time of Borrower's
assignment to Lender of the Contracts: (i) any payment owing with respect to
any Contract is past due more than ten (10) days, (ii) any End-User is
otherwise in default under a Contract or (iii) any End-User has canceled or
terminated or given notice of or attempted to cancel or terminate any
Contract;

         (viii)   There exist no setoffs, abatements, recoupments, claims,
counterclaims or defenses on the part of any End-User under the Contracts to
any claims against or obligations of any End-User thereunder, nor do the
Contracts by their terms give rise to any such right of setoff, abatement,
recoupment, claims, counterclaims or defenses against Borrower or assignee of
Borrower;

         (ix)     Borrower has not done anything that might impair the value
of the Contracts or any Equipment covered by the Contracts;

                                      10

<PAGE>

         (x)      All sales, gross receipts, property or other taxes,
assessments, fines, fees and other liabilities relating to the Contracts, the
related Equipment, or the proceeds thereof have been paid when due and all
filings in respect of any such taxes, assessments, fines, fees and other
liabilities have been timely made;

         (xi)     Borrower is not in default which has continued beyond any
applicable grace periods or cure rights of any of its obligations under the
Contracts, including without limitation, any obligation to repair, maintain
or replace any Equipment or to provide service as provided in the Contracts;

         (xii)    The Contracts have not been altered, modified, changed or
amended except as such alterations, modifications, changes or amendments are
set forth in writing and provided to Lender prior to Borrower's assignment of
the Contracts; nor will Borrower agree to any alterations, modifications,
changes or amendments after Borrower's assignment without Lender's prior
written consent;

         (xiii)   At the time of Borrower's assignment of the Contracts, no
amounts have been prepaid on the Contracts except advance payments which are
required by the express written terms of the Contracts;

         (xiv)    Borrower has not withheld any information or material facts
in connection with any Contracts or Equipment which would make any
information furnished to Lender misleading and Borrower has no knowledge of
any Contract Event of Default or of any fact which may impair the validity,
value or enforceability of any Contract or Equipment;

         (xv)     To the best of Borrower's knowledge, all information
provided to Lender by Borrower with respect to any End-User is true and
correct in all material respects;

         (xvi)    All Equipment covered by the Contract (A) is in good condition
and repair and suitable for the purposes for which it is intended; (B) is
covered by comprehensive physical damage insurance for the full insurable value
thereof, unless otherwise mutually agreed to by Borrower and Lender, and, if
applicable, general public liability coverage. Borrower, its assigns and/or
collateral assigns, specifically including Lender, have been named as "Loss
Payee" and, if applicable, as "Additional Insured" on any policies procured by
the End-User. Said insurance is in full force and effect, and has not lapsed or
been cancelled by the End-User or the respective insurers;

         (xvii)   The Contract will not be canceled or terminated or
attempted to be canceled or terminated prior to the full term indicated for
such Contract;

         (xviii)  Borrower has not breached any representation, warranty or
guarantee under the Contract or any agreement document or instrument related
thereto;

         (xix)    Upon recording financing statements with respect to the
Contracts and the related Equipment and Lender's possession of the original
chattel paper with respect thereto, Lender's security interest therein shall
be perfected and shall have priority over all other liens, claims, rights of
other persons and security interests with respect thereto; and

         (xx)     Borrower has not filed any UCC-1 or other document in the
public records against any End-User or End-User guarantor concerning any
proposed Facility Contract or Equipment except those which have been
disclosed and either assigned or subordinated to Lender's interest in the
Facility Contracts and the related Equipment and Proceeds, and there are no
other UCC-1's or other public record filings concerning any part of any
Facility Contracts or Equipment whether executed by or in favor of Borrower.

                                 ARTICLE VI

                            AFFIRMATIVE COVENANTS

Borrower covenants and agrees with Lender as follows:

6.1      Payment of Borrower's Obligations. Borrower shall pay and perform
all of Borrower's Obligations as and when the same become due, payable and/or
performable, as applicable.

6.2      Preservation of Existence. Borrower shall maintain its existence and
rights in full force and effect to the extent necessary to perform its
obligations under the Loan Documents.

                                      11

<PAGE>

6.3      Legal Requirements. Borrower (i) promptly and faithfully shall
comply with, conform to and obey all applicable present and future laws,
ordinances, rules, regulations and other requirements that could materially
adversely affect the conduct of its operations, including, but not limited
to, maintain its gaming licenses in the States where it is currently
operating its business, and (ii) shall use or cause the portion of the
Collateral consisting of Facility Equipment to be used in a manner and for
the use contemplated by the manufacturer thereof, and in material compliance
with all laws, rules and regulations of every Governmental Body having
jurisdiction over such Facility Equipment.

6.4      Financial Covenants, Statements and Other Reports.

         6.4.1    Financial Statements and Other Reports. Borrower shall
         maintain full and complete books of account and other records
         reflecting the results of Borrower's operations, all in accordance
         with GAAP, and shall furnish or cause to be furnished to Lender the
         following:

              (a) within 30 days after the end of each month: (i) a
                  delinquency report in the form attached hereto as Exhibit
                  I, (ii) a report setting forth leasing, remarketing
                  activities and insurance settlements with respect to
                  Facility Equipment, and (iii) a report identifying the
                  Facility Contracts which terminated during the previous
                  thirty (30) days. All reports shall be certified by a
                  Responsible Officer.

              (b) Within 90 days after Borrower's fiscal year end, an audited
                  financial statement;

              (c) Within 30 days of each quarter, Borrower's updated
                  financial statement.

         6.4.2    Financial Covenants. Borrower shall maintain the same
measures of financial performance and condition as detailed for other lenders
with whom Borrower has a committed lending arrangement in an aggregate amount
in excess of $1,000,000 (the "Financial Performance and Conditions").
Borrower acknowledges and agrees that any default in the covenants set forth
in any agreement executed by Borrower in connection with a committed lending
arrangement with any other lender shall constitute a Borrower Event of
Default hereunder, entitling Lender to avail itself of any and all remedies
set forth in this Agreement, and any other documents or instruments executed
in connection herewith.

6.5      Removal of Facility Equipment. Promptly after a Responsible Officer
learns that any Facility Equipment has been moved by a End-User from one
location to another, Borrower will inform Lender or will cause such End-User
to inform Lender of such move and will execute such additional financing
statements as Lender reasonably may request.

6.6      Damage to Equipment. Promptly after a Responsible Officer learns
that any Facility Equipment is damaged, and if such Facility' Equipment can
be repaired in accordance with the terms of the applicable Facility Contract
so as to restore the same to good and working order, Borrower shall cause
such repairs to be made in accordance with the terms of such Facility
Contract.

6.7      Books and Records; Inspections.

         6.7.1    Books and Records. Borrower shall keep and maintain, or
cause to be kept and maintained, complete and accurate books and records and
make all necessary entries therein to reflect the transactions contemplated
hereby and all payments, credits, adjustments and calculations relative
thereto.

         6.7.2    Inspections/Audits. Upon reasonable prior notice, Lender
shall have full and complete access to the books and records of Borrower
pertaining to the Collateral. In addition, from time to time, but not more
often than twice each year (and upon the occurrence and during the
continuation of a Borrower Event of Default as often as Lender in its sole
discretion deems necessary in order to monitor the business activities of
Borrower), representatives of Lender shall have the right to conduct an audit
of the books and records of Borrower. Borrower shall pay to Lender on demand
the actual, reasonable, out-of-pocket travel expenses incurred by Lender for
any employee of Lender who may conduct or assist in conducting any such audit.

6.8      Maintenance. Borrower, pursuant to the applicable Facility Contracts
shall cause all Facility Equipment to be maintained and serviced so as to
keep such Facility Equipment in good operating condition, ordinary wear and
tear from normal use excepted.

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<PAGE>

6.9      Notice of Defaults; Change in Business and Adverse Events. Borrower,
immediately after any Responsible Officer becomes aware thereof, shall give
Lender written notice of the occurrence of (i) any Event of Default or any
Incipient Default, accompanied by a statement of such Responsible Officer
setting forth what action Borrower proposes to take in respect thereof, (ii)
any change in the (A) executive officers or key employees of Borrower, or (B)
location of the chief place of business of Borrower or any sale or purchase
outside the regular course of business of Borrower, (iii) any event which may
have a material adverse effect on the (A) enforceability of the Lender Lien
or (B) ability of Borrower to perform any of its obligations under any of the
Loan Documents, (iv) any material default in payment or performance by
Borrower or any End-User under any Facility Contract or (v) any material
damage to or irreparable malfunction of any Facility Equipment.

6.10     Insurance/Maintenance. All Facility Equipment shall be covered by
comprehensive physical damage insurance for the full insurable value thereof
unless otherwise mutually agreed to by Borrower and Lender, and general public
liability, coverage, and Borrower and/or its assigns, including collateral
assigns, shall be named and continue to be named as "Loss Payee" and "Additional
Insured" as its interests may appear. Said insurance shall continue to be in
full force and effect, and shall not lapse or be cancelled by the End-Users.
Borrower, pursuant to the applicable Facility Contract, will cause the End-User
under each Facility Contract to maintain all Facility Equipment in accordance
with the terms of all insurance policies which are or may be in effect with
respect thereto so as not to alter or impair any of the benefits or coverage to
which Borrower or the applicable End-User is entitled under any such insurance
policies.

6.11     Taxes. Borrower shall pay or, pursuant to each Contract, shall cause
the End-User thereunder to pay promptly when due all taxes, levies, and
governmental charges upon or relating to Facility Equipment for which
Borrower or the applicable End-User is or may be liable.

6.12     Contracts. With respect to each of the Contracts, Borrower shall:
(i) perform all acts necessary to preserve the validity and enforceability of
each such Contract; (ii) take all actions reasonably necessary to assist
Lender in collecting when due all amounts owing to Borrower with respect to
each such Contract; (iii) at all times keep accurate and complete records of
performance by Borrower and the End-User under each such Contract; and (iv)
upon request of Lender verify with the End-User under each Facility Contract
the payments due to Borrower under such Facility Contract except that (A)
prior to the occurrence of a Borrower Event of Default or Incipient Default
such requests shall not occur any more frequently than once each year and (B)
after the occurrence and during the continuation of an Incipient Default or a
Borrower Event of Default such requests may occur as often as Lender shall
require.

                                 ARTICLE VII

                             NEGATIVE COVENANTS

Until Borrower's Obligations are paid and performed in full, Borrower shall not:

7.1      Liens. Create or incur or suffer to exist any Lien on the Collateral
other than Permitted Liens.

7.2      Borrowing. Create, incur, assume or suffer to exist any indebtedness
which is secured by Liens on the Collateral other than the Advances or
Permitted Liens.

7.3      Modifications of Facility Contracts. Without the prior, written
consent of Lender; amend, supplement, modify, compromise or waive any of the
terms of any Facility Contract if the effect of such amendment, supplement,
modification, compromise or waiver is to (A) reduce or waive the amount of
any payment thereunder, (B) extend the term thereof or (C) waive any
provisions thereof with respect to taxes, insurance or maintenance.

7.4      Maintenance of Perfected Lender Lien. Change the location of its
chief executive office or principal place of business, except if Borrower has
(i) given Lender at least 30 days prior written notice thereof and (ii)
caused to be filed all UCC financing statements which in the opinion of
Lender are necessary or advisable to maintain the perfection of the
applicable Lender Lien.

7.5      Merger and Acquisition. Without the prior, written consent of
Lender, which consent will not be unreasonably withheld or delayed,
consolidate with or merge into any Person, or acquire all or substantially
all of the stock or Property of any Person.

                                      13

<PAGE>

7.7      Sale or Transfer of Assets. Sell, lease, assign, exchange, transfer or
otherwise dispose of any Property except (i) dispositions of Property (other
than Equipment), which is not necessary to the continued operation of the
business of Borrower, (ii) disposition of the real estate now owned or hereafter
acquired by Borrower, provided no Incipient Default or Event of Default is in
existence or will occur as a result of the consummation of any such sale, (iii)
the leasing of real property, (iv) dispositions of Property in the ordinary
course of Borrowers business, or (v) disposition of any obsolete or unusable
Property, provided that if such Property is necessary to the continued operation
of the business of Borrower, such Property promptly is replaced with Property of
like function and value to such Property when the same was not obsolete or
unusable, as applicable.

7.8     Delinquency Covenant. Allow Facility Contract Total Delinquency to be
greater than twelve percent (12%) of the Aggregate Portfolio Outstandings, i.e.
at the end of any calendar month, the total outstanding balances to Borrower of
all Facility Contracts that have outstanding payments 30 days or more past due,
divided by the total outstanding balances on all Facility Contracts.

7.9      Transactions with Affiliates. Except for (i) transactions in the normal
course of business, which transactions comply with the provisions of clauses (y)
and (z) of this Section 7.9, and (ii) purchases of Equipment from PDS Financial
Corporation, which purchases shall comply with the provisions of clauses (y) and
(z) of this Section 7.9, Borrower shall not sell, lease, assign, transfer or
otherwise dispose of any Property to any Affiliate or lease Property, render or
receive services or purchase assets from any Affiliate, except with the prior
written consent of Lender, which consent shall not unreasonably be withheld or
delayed, and except that Borrower may enter into any such transaction with any
such Affiliate in the ordinary course of business if (y) the monetary or
business consideration arising therefrom would be substantially as advantageous
to Borrower as the monetary or business consideration which could be obtained by
Borrower in a comparable arm's-length transaction with a Person which is not an
Affiliate and (z) no other provision of this Agreement would be violated as a
result thereof.

                                ARTICLE VIII

     BORROWER AND CONTRACT EVENTS OF DEFAULT - DEFINITIONS AND REMEDIES

8.1      Borrower Events of Default - Definition. The occurrence of any of the
following shall constitute a Borrower Event of Default hereunder:

         (a)      Default in Payment. (i) If Borrower shall fail to remit to
Lender when due any payment that Borrower is required to make hereunder when
and as the same shall become due and payable, and such failure shall continue
for a period of 10 days after such payment becomes due; and (ii) if at any
time during the term of a Facility Note the scheduled payment amount due from
the End-User under the respective Contract is less than the payment amount
due from the Borrower under the Facility Note.

         (b)      Breach of Representation or Warranty. If any representation
made by Borrower to Lender in any Loan Document or in any report,
certificate, opinion, financial statement (other than those financial
statements provided by and pertaining to any End-User) or other document or
statement furnished pursuant thereto shall be false or misleading in any
material respect when made, or any warranty given by Borrower shall be
breached by Borrower, unless (i) the fact, circumstance or condition is made
true within ten (10) Business Days after notice thereof is given to Borrower
by Lender, and (ii) in Lender's judgment, such cure removes any adverse
effect on Lender.

         (c)      Breach of Covenant. If Borrower shall fail to duly observe or
perform any covenant condition or agreement set forth in Articles VI or VII of
the Agreement on its part to be performed or observed for ten (10) Business Days
after a Responsible Officer has knowledge thereof.

         (d)      Bankruptcy, Receivership, Insolvency, etc.

                  (i)      If Borrower or Guarantor shall (A) apply for or
consent to the appointment of a receiver, trustee or liquidator for it or any
of its Property, (B) be unable to pay its debts as they mature, (C) make a
general assignment for the benefit of creditors, (D) be adjudicated a
bankrupt or insolvent or (E) file a voluntary petition in bankruptcy, or a
petition or an answer seeking reorganization or an arrangement with creditors
or to take advantage of any bankruptcy, reorganization, insolvency,
readjustment of debt dissolution or liquidation law or statute, or file an
answer admitting the material allegations

                                      14

<PAGE>

of a petition filed against it in any proceeding under any such law, or if
action shall be taken by Borrower or Guarantor for the purpose of effecting
any of the foregoing, or

                  (ii)     If any Governmental Body of competent jurisdiction
shall enter an order appointing, without consent of Borrower or Guarantor, a
custodian, receiver, trustee or other officer with similar powers with
respect to Borrower or Guarantor, or with respect to any substantial part of
the Property belonging to Borrower or Guarantor, or if an order for relief
shall be entered in any case or proceeding for liquidation or reorganization
or otherwise to take advantage of any bankruptcy or insolvency law of any
jurisdiction, or ordering the dissolution, winding-up or liquidation of'
Borrower or Guarantor, or if any petition for any such relief shall be filed
against Borrower or Guarantor, and such petition shall not be dismissed
within 45 days.

         (e)      Non-Payment of Other Indebtedness. Default by Borrower or
Guarantor (other than in payment of Borrower's Obligations) in the (i)
payment when due (subject to any applicable grace period or cure period),
whether by acceleration or otherwise, of any indebtedness, where the amount
thereof is in excess of $500,000 or (ii) performance or observance of any
obligation or condition with respect to any indebtedness of Borrower or
Guarantor, where the amount of such indebtedness is in excess of $500,000
(other than in payment of Borrower's Obligations) if the effect of such
default is to accelerate the maturity of any such indebtedness or to permit
the holder thereof to cause such indebtedness to become due and payable prior
to its expressed maturity.

         (f)      Other Material Obligations. Default in the payment when
due, or in the performance or observance of any material obligation of, or
condition agreed to by, Borrower or Guarantor with respect to any purchase or
lease of goods or services, where (i) the amount with respect to any such
purchase or lease of goods or services is in excess of $500,000 and (ii) any
grace period or cure period with respect to any such payment performance or
observance has lapsed (except such default in payment performance or
observance shall not be deemed to constitute a default hereunder if the
existence of any such default is being contested by Borrower or Guarantor in
good faith and by appropriate proceedings diligently pursued).

         (g)      Guaranty/Guarantor. If a Default or an Event of Default
shall occur under the Guaranty.

         In any such event in addition to Lender's other remedies under this
Agreement, Lender may , by notice to Borrower, Immediately cease making further
Advances.

8.2      Borrower Events of Default - Remedies. If a Borrower Event of
Default shall have occurred, and has not been cured by Borrower (or by
Lender, at its option) within an applicable cure period, or a Material
Adverse Change occurs of the type set forth in Section 4.1.7 (i) or (ii),
then Lender shall have the right to do any or all of the following:

         (a)      If Lender has not already done so pursuant to Section 2.4,
complete and deliver to the End-Users the Contract Payment Letters to
commence direct billing and collection with respect to the Facility
Contracts, and deduct from such receipts and remittances a fee equal to five
percent (5%) of the aggregate monthly receipts ("Administration Fee") from
the payment on the Facility Contracts as compensation for the additional
administrative burden;

         (b)      (i) exercise of any of Borrower's rights under any of the
Facility Contracts, or (ii) by written notice, require Borrower to exercise
on behalf of Lender as secured party under this Agreement any and all of the
rights available to Borrower under any Facility Contract to the extent not
already exercised by Borrower, whereupon Borrower shall immediately take all
requested action;

         (c)      proceed against Borrower and/or Guarantor for all rights and
remedies Lender may have in law or in equity under the Loan Documents;

         (d)      declare the entire amount of Borrower's Obligations and
Administration Fee due and payable immediately, and exercise in respect of the
Facility Equipment all the rights and remedies of a secured party upon default
under the UCC, including, at any reasonable time, to enter Borrower's premises
and take physical possession of any master leases to which the related Facility
Contracts pertain.

         Provided the End User is not in default under a Facility Contract,
Lender shall not take any action or exercise any right that would disturb any
End-User's full and quiet enjoyment of all of such End-User's rights under that
Facility Contract. Lender will give Borrower reasonable notice of the time and
place of any public sale of any Collateral or of the time after which any public
or private sale of such Collateral or any other intended disposition thereof is
to be made. Unless otherwise

                                      15

<PAGE>

provided by law, the requirement of reasonable notice shall be met if such
notice is delivered at least ten (10) days before, or mailed, postage
prepaid, to Borrower, at least twenty (20) days before the time of such sale
or disposition.

         All actual costs and expenses incurred by Lender in connection with the
enforcement and/or exercise of any of its rights or remedies (including, without
limitation, reasonable attorneys fees) hereunder shall (i) be payable by
Borrower to Lender immediately upon demand, (ii) constitute a portion of
Borrower's Obligations and (iii) be secured by the Lender Lien.

8.3      Contract Events of Default.

         8.3.1    Definition. The occurrence of a default by any End-User
pursuant to the terms of a Facility Contract which default entitles Borrower
to accelerate or terminate such Facility Contract or to repossess the related
Facility Equipment shall constitute a Contract Event of Default.

         8.3.2    Acceleration. Upon the occurrence of a Contract Event of
Default, Borrower, at any time (unless such Contract Event of Default shall
have been cured), at its option, by notice to End-User, may terminate such
Facility Contract and accelerate all payments due thereunder.

         8.3.3    Contract Event of Default -- Remedies. Upon the occurrence
of a Contract Event of Default, Borrower shall, if known to Borrower,
immediately deliver to Lender written notice thereof which notice shall
identify the Facility Contract which is in default and the applicable
Advance, and describe the nature of such default and the actions Borrower
proposes to undertake with respect to such default. If any payment(s) under a
Facility Contract becomes 120 calendar days past due, whether or not such
payment(s) have been cured by Borrower, then Borrower shall prepay in full
the unpaid portion of the Advance pertaining to such Facility Contract.

                  Lender, with respect to the Facility Equipment subject to such
Facility Contract, shall have and may exercise against Borrower all the rights
and remedies of a secured party under the Nevada UCC and/or the UCC applicable
to the location of the related Facility Equipment, and any other applicable
laws, subject to all mandatory provisions of law, including without limitation,
the Gaming Laws. Lender will give Borrower reasonable notice of the time and
place of any public sale of any Collateral or of the time after which any public
or private sale of such Collateral or any other intended disposition thereof is
to be made. Furthermore:

                  (i)      Lender only shall be entitled to exercise the
rights and remedies set forth in this Section 8.3.3 with respect to the
Facility Contract, the End-User and the Facility Equipment which are the
subject of such Contract Event of Default, unless a Borrower Event of Default
also exists with respect to said Facility Contract.

                  (ii)     upon payment and performance in full of all of
Borrower's Obligations pertaining to the Facility Contract which is the
subject of such Contract Event of Default, both (A) the Contract Event of
Default with respect to such Facility Contract, and (B) any related Borrower
Event of Default shall be deemed to be cured.

8.4      Power of Attorney. In order to permit Lender to exercise the rights
and remedies set forth herein, Borrower hereby irrevocably appoints Lender as
its attorney-in-fact and agent with full power of substitution, in the name
of Lender or in the name of Borrower, to perform any of the following acts
upon the occurrence of a Borrower Event of Default, subject to all mandatory
provisions of law, including without limitation, the Gaming Laws: (i)
receive, open and examine all mail addressed to Borrower and retain any such
mail relating to the Collateral and return to Borrower only that mail which
is not so related; (ii) endorse the name of Borrower on any checks or other
instruments or evidences of payment or other documents, drafts, or
instruments arising in connection with or pertaining to the Collateral, to
the extent that any such items come into the possession of Lender;
(iii) compromise, prosecute or defend any action, claim, or proceeding
concerning the Collateral; (iv) perform any and all acts which Borrower is
obligated to perform under the Loan Documents; (v) exercise such rights as
Borrower might exercise with respect to the Collateral, including, without
limitation, the leasing or other utilization thereof and the collection of
any such rents or other payments applicable thereto; (vi) give notice of the
existence of the Lender's Lien, including, without limitation, notification
to End-Users and/or other account debtors of the existence of such Lender's
Lien with respect to the rents and other payments due to Borrower relative to
the Collateral; or (vii) execute in Borrower's name and file any notices,
financing statements and other documents or instruments Lender determines are
necessary or required to carry out fully the intent and purpose of the Loan
Documents or to perfect the Lender Lien. Borrower hereby ratifies and
approves all that Lender shall do or cause to be done by virtue of the power
of attorney granted herein and agrees that neither Lender nor any of Lenders
employees, agents, officers, or its attorneys will be liable for any acts or
omissions or for any error of judgment or mistake of fact or law made while
acting in good faith pursuant to the provisions of this

                                      16

<PAGE>

subparagraph, unless such act, omission, error of judgment or mistake of fact
or law is determined by a court of competent jurisdiction in a decision which
no longer is subject to appeal to be the result of the gross negligence or
the willful or wanton misconduct of Lender or any such employees, agents,
officers or attorneys of Lender. The appointment of Lender as Borrower's
attorney-in-fact is a power coupled with an interest, and therefore shall
remain irrevocable until all of Borrower's Obligations have been paid and
performed in full.

8.5      Expenses. All actual costs and expenses incurred by Lender in
connection with the enforcement and/or exercise of any of its rights or
remedies (including, without limitation, reasonable attorneys fees) hereunder
shall (i) be payable by Borrower to Lender immediately upon demand, (ii)
constitute a portion of Borrower's Obligations and (iii) be secured by the
Lender Lien.

8.6      Application of Funds. Any funds received by Lender pursuant to the
exercise of any rights accorded to Lender pursuant to or by the operation of
any of the terms of any of the Loan Documents shall be applied by Lender in
the following order of priority:

          (i)     Expenses. First to the payment of all (A) actual fees and
expenses, including, without limitation, court costs, fees of appraisers, title
charges, costs of maintaining and preserving the Collateral, costs of sale,
reasonable attorneys' fees, and all other costs incurred by Lender in exercising
any rights accorded to Lender pursuant to the Loan Documents or by applicable
law;

          (ii)    Borrower's Obligations. Next, to the payment of Borrower's
Obligations, in such order as Lender may determine; and

          (iii)   Surplus. Any surplus, to the Person or Persons legally
entitled thereto.

                                 ARTICLE IX

                                MISCELLANEOUS

9.1      Rights, Remedies and Powers. Each and every right, remedy and power
granted to Lender hereunder shall be cumulative and in addition to any other
right, remedy or power not specifically granted herein or now or hereafter
existing in equity, at law, by virtue of statute or otherwise and may be
exercised by Lender from time to time concurrently or independently as open
and in such order as Lender may deem expedient. Any failure or delay on the
part of Lender in exercising any such right, remedy or power, or abandonment
or discontinuance of steps to enforce the same, shall not operate as a waiver
thereof or affect Lender's right thereafter to exercise the same, and any
single or partial exercise of any such right, remedy or power shall not
preclude any other or further exercise thereof or the exercise of any other
right, remedy or power. Acceptance of payments in arrears shall not waive or
affect any right to accelerate Borrower's Obligations.

9.2      Modifications. Waivers and Consents. Any modification or waiver of any
provision of this Agreement, or any consent to any departure by Borrower
therefrom, shall not be effective in any event unless the same is in writing and
signed by Lender, and then such modification, waiver or consent shall be
effective only in the specific instance and for the specific purpose given. Any
notice to or demand on Borrower in any event not specifically required of Lender
hereunder shall not entitle Borrower to any other or further notice or demand in
the same, similar or other circumstances unless specifically required hereunder.

9.3      Communications. All notices, consents, approvals and other
communications under the Loan Documents shall be in writing and shall be (i)
delivered in person, (ii) sent by telephonic facsimile ("FAX") or (iii)
mailed, postage prepaid, either by (A) registered or certified mail, return
receipt requested, or (B) overnight express carrier, addressed in each case
as follows:

         To Lender:        Sun West Bank
                           Attention: Carla Jewell, Vice President
                           5830 West Flamingo
                           P.O. Box 81710
                           Las Vegas, NV 89180-1710
                           FAX No.:  (702) 949-2299

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<PAGE>

         To Borrower:      PDS Financial Corporation - Nevada
                           Attention: Johan Finley, CEO and President
                           6171 McLeod Drive
                           Las Vegas, Nevada 89120
                           FAX No.: (702) 736-0700

         with a copy to:   Jones-Vargas
                           Attention: Mike Alonso, Esq.
                           201 W. Liberty Street
                           P.O. Box 281
                           Reno, Nevada 89504
                           FAX No.: (775) 786-1177

or to such other address, as to either of the parties hereto, as such party
shall designate in a written notice to the other party, hereto. All notices sent
pursuant to the terms of this Section 9.3 shall be deemed received (i) if sent
by FAX during regular business hours on the day sent if a Business Day, or if
such day is not a Business Day (or a Business Day after regular business hours),
then on the next Business Day, (ii) if sent by overnight, express carrier, on
the next Business Day immediately following the day sent, or (iii) if sent by
registered or certified mail, on the fifth Business Day following the day sent.

9.4      Severability. If any provision of this Agreement is prohibited by, or
is unlawful or unenforceable under, any applicable law of any jurisdiction,
such provision, as to such jurisdiction, shall be ineffective to the extent of
such prohibition without invalidating the remaining provisions hereof;
provided, however, that where the provisions of any such applicable law may be
waived, they hereby are waived by Borrower to the full extent permitted by law
so that this Agreement shall be deemed to be an agreement which is valid and
binding in accordance with its terms.

9.5      Survival. The warranties, representations, covenants and agreements set
forth herein shall survive the making of the Advances and the execution and
delivery of the Loan Documents and shall continue in full force and effect until
Borrower's Obligations have been paid and performed in full.

9.6      Attorneys' Fees and Other Expenses. Borrower agrees to pay to Lender on
demand any actual out-of-pocket costs or expenses, together with reasonable
attorneys' fees, incurred by Lender in connection with the enforcement or
collection against Borrower of any provision of any of the Loan Documents,
whether or not suit is instituted, including, but not limited to, such actual
costs or expenses arising from the enforcement or collection against Borrower of
any provision of any of the Loan Documents in any state or Federal bankruptcy or
reorganization proceeding.

9.7      Indemnity. Borrower agrees to indemnity and save Lender and its
successors, assigns, agents and servants harmless of and from any claims,
actions, suits, losses, costs, liabilities, damages or expenses including
actual expenses and reasonable attorneys' fees) incurred by Lender in
connection with the transactions contemplated by this Agreement, including
without limitation: (i) any loss, cost, liability, damage or expense
(including actual expenses and reasonable attorneys' fees) incurred in
connection with the Facility Contracts; (ii) the delivery, ownership,
alteration, operation, maintenance, return or other disposition of the
Collateral; (iii) from any documentation deficiencies or changes to the basic
format of the Facility Contract; (iv) from the existence of any party having
an interest, lien or claim in the Facility Contract(s), and/or the Facility
Equipment covered thereby, and/or the proceeds thereof which interest, lien
or claim is prior to the interest therein assigned to Lender hereby; (v) the
construction of Lender and Borrower as having the relationship of joint
venturers or partners, or (vi) the determination that Lender or Borrower has
acted as agent for the other Borrower's obligations with respect to the
indemnity set forth in this Section 9.7 shall survive repayment of all
amounts due pursuant to the Loan Documents, the cancellation of the Notes and
the release and/or cancellation of any and all of the Loan Documents, Lender
agrees to promptly notify Borrower of any matters in respect of which this
indemnity may apply. If notified in writing of any action or claim brought or
threatened against Lender based on a claim for which Borrower is to provide
indemnity and given full authority, information, and assistance for the
defense of same by Lender, Borrower shall, without limitation, defend those
actions or claims at its expense and pay the costs and damages and attorneys'
fees awarded in any such action or arising from any such claim, provided that
Borrower shall have the right to control the defense and settlement of all
such actions and claims Lender will take all such actions (at the expense of
Borrower) as may be reasonably requested by Borrower to assist Borrower in
connection with such defense or settlement.

                                      18

<PAGE>

9.8      Binding Effect. This Agreement shall be binding upon the successors and
assigns of Borrower and shall inure to the benefit of the successors and assigns
of Lender.

9.9      Assignments: Participations. Lender shall be entitled to sell,
assign or transfer any portion of its interest in the Facility, provided,
however, Lender hereby agrees to deliver to Borrower notice of such proposed
sale, assignment or transfer not less than 30 days prior to the proposed date
for the consummation thereof, which notice shall include a description of the
financial institution to which such sale, assignment or transfer is proposed
to be made. In connection with any such sale, assignment or transfer, Lender
may disclose such information with respect to Borrower, its business and
financial affairs and the Facility as Lender reasonably deems necessary,
unless any such information which has been provided by Borrower to Lender is
confidential in nature, in which case such confidential information shall not
be disclosed without the prior written consent of Borrower, which consent
shall not unreasonably be withheld or delayed.

9.10     Further Assurances. Each of Borrower and Lender agrees that upon the
request of the other party hereto at any time and from time to time after the
execution of this Agreement it shall execute and deliver such further
instructions, documents, and certificates and take such further actions as such
party reasonably may request

9.11     GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS.
EXCEPT WITH RESPECT TO ENFORCEMENT OF SECURITY INTERESTS IN GAMING DEVICE
GOODS (WHICH SHALL BE GOVERNED BY THE STATE IN WHICH SUCH GAMING DEVICE GOODS
ARE SITUATED), THIS AGREEMENT, EACH OF THE OTHER LOAN DOCUMENTS, AND ANY
ASSIGNMENT EXECUTED IN CONNECTION THEREWITH SHALL BE A CONTRACT MADE UNDER
AND GOVERNED BY THE LAWS OF THE STATE OF NEVADA APPLICABLE TO CONTRACTS MADE
AND PERFORMED ENTIRELY WITHIN THE STATE OF NEVADA. BORROWER DOES HEREBY
SUBMIT, AT LENDER'S ELECTION, TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY
COURTS (FEDERAL, STATE OR LOCAL) HAVING A SITUS WITHIN THE COUNTY OF CLARK
AND THE STATE OF NEVADA WITH RESPECT TO ANY DISPUTE, CLAIM, OR SUIT, WHETHER
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY
RELATED NOTE OR ANY OF BORROWER'S OBLIGATIONS OR INDEBTEDNESS HEREUNDER,
BORROWER EXPRESSLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO SERVICE
BY CERTIFIED MAIL, POSTAGE PREPAID, DIRECTED TO THE LAST KNOWN ADDRESS OF
BORROWER, WHICH SERVICE SHALL BE DEEMED COMPLETED WITHIN TEN (10) DAYS AFTER
THE DATE OF MAILING THEREOF. BORROWER HEREBY IRREVOCABLY WAIVES ANY CLAIM
THAT THE COUNTY OF CLARK, STATE OF NEVADA IS AN INCONVENIENT FORUM OR AN
IMPROPER FORUM BASED ON LACK OF VENUE AS WELL AS ANY RIGHT IT MAY NOW OR
HEREAFTER HAVE TO REMOVE ANY SUCH ACTION OR PROCEEDING, ONCE COMMENCED, TO
ANOTHER COURT ON THE GROUNDS OF FORUM NON CONVENIENS OR OTHERWISE THE
EXCLUSIVE CHOICE OF FORUM SET FORTH HEREIN SHALL NOT BE DEEMED TO PRECLUDE
THE ENFORCEMENT BY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM OR THE
TAKING OF ANY ACTION BY LENDER TO ENFORCE THE SAME IN ANY OTHER APPROPRIATE
JURISDICTION.

9.12     WAIVER OF JURY TRIAL. BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. THIS WAIVER IS
INTENDED TO BE EFFECTIVE WITH RESPECT TO ALL DISPUTES WHICH ARISE OUT OF ANY OF
THE LOAN DOCUMENTS OR PERTAIN TO THE TRANSACTIONS CONTEMPLATED THEREBY. THIS
WAIVER IS IRREVOCABLE, AND MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND
SUCH WAIVER SET FORTH HEREIN SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

                                      19

<PAGE>

This Agreement has been executed and delivered by each of the parties hereto by
a duly authorized officer of each such party on the date first set forth above.

SUN WEST BANK                             PDS FINANCIAL CORPORATION - NEVADA

By:                                       By:
    ---------------------------               ---------------------------------

Its:                                      Its:
    ---------------------------               ---------------------------------

                                      20

<PAGE>

<TABLE>
EXHIBITS
<S>           <C>
Exhibit A     Assignment
Exhibit B     Collateral Description
Exhibit C     Closing Certificate
Exhibit D     Contract Funding Request
Exhibit E     Contract Payment Letter
Exhibit F     Facility Note
Exhibit G     Secretary's Certificate
Exhibit H     Opinion of Counsel
Exhibit I     Delinquency Report
Exhibit J     Guaranty

<CAPTION>
SCHEDULES
<S>           <C>
Schedule 1    Form of Contracts
Schedule 2    Financial Statements (Assignments greater than $100,000 or as requested by Lender)
Schedule 3    Litigation
</TABLE>

                                      21

<PAGE>

Schedule 1
Form of Contracts

1)   Master Lease Agreement
2)   Guaranty
3)   Lease Schedule to Master Lease
4)   Secretary's Certificate
5)   Confidential Sales and Security Agreement
6)   Exhibit A
7)   Promissory Note
8)   Security Agreement

                                      22

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