Document:

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                                                                   Exhibit 10.8

FINAL EXECUTION COPY

                         DEVELOPMENT AND LOAN AGREEMENT

         This Development and Loan Agreement (the "Agreement") is entered into
as of this 26th day of August, 2001, by and between the Dry Creek Rancheria Band
of Pomo Indians, a federally-recognized Indian tribe (the "Tribe") and DRY CREEK
CASINO, LLC, a Texas limited liability company (the "Developer").

RECITALS

         A. Tribe is a federally recognized Indian tribe that occupies and
exercises Tribal governmental jurisdiction over real property held in trust for
it by the United States ("Reservation").

         B. Tribe and the State of California are parties to a Tribal-State
gaming compact pursuant to the Indian Gaming Regulatory Act ("IGRA") that has
been approved by the Secretary of the Interior and is in effect ("Compact").
Tribe has adopted an ordinance regulating gaming on the Reservation ("Gaming
Ordinance") that has been approved in accordance with IGRA by the Chairman of
the National Indian Gaming Commission ("NIGC").

         C. Tribe is governed generally by its Tribal Council, consisting of
Tribal members of voting age. The day to day administration of the Tribe is
conducted by an elected body known as the Dry Creek Board of Directors
("Board"). In accordance with the Gaming Ordinance and the Compact, Tribe has
formed a governmental agency to regulate gaming on the Reservation, known as the
Dry Creek Tribal Gaming Commission ("TGC"). Tribe has also formed a Tribal
committee to provide Tribal input into the development of economic development
projects, including any Tribal gaming projects, which the Tribe is considering
formalizing into a Tribal governmental economic development agency ("EDA").

         D. Tribe desires to construct and operate a temporary casino
("Facility") capable of being opened as soon as possible ("Commencement Date"),
to be operated pending the development and construction of a permanent casino,
hotel, and retail resort complex. Tribe intends the temporary casino to
accommodate 1600 gaming devices and ancillary facilities and services, at a
location on the top portion of the Reservation, tentatively named the "Dry Creek
Ridge Casino." Tribe lacks its own funds to construct such a Facility. Developer
has agreed, pursuant to the terms herein, to assist Tribe in the development and
financing of the temporary Dry Creek Ridge Casino, on the terms and conditions
set forth herein. Developer will have no role whatsoever in the operation of the
casino. In addition to arranging for Tribe to borrow funds for development,
Developer has agreed to make certain Development Advances to Tribe to assist it
in the administration of its government and to meet pending obligations,
including those arising out of the immediate need by certain Tribal Members for
housing assistance.

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         E. Developing the Dry Creek Ridge Casino also involves developing a
water supply and tanks, an associated fire suppression system, appropriate
sewage treatment, and the preparation of roads and parking on, and possibly off,
the Reservation (the Dry Creek Ridge Casino and said additional development is
referred to collectively herein as the "Project").

         F. In anticipation of earlier plans to construct an interim casino (the
"Sonoma Canyon casino") that were unexpectedly interrupted, residents of the Dry
Creek Reservation moved off the Reservation and are now immediately in need of
replacement housing ("Relocated Members"). A portion of the Financing proceeds
provided for herein will be used to meet the housing needs of the Relocated
Members.

         G. Prior to entering into this Agreement certain documents were
executed with third parties with respect to 1) the Sonoma Canyon casino (the
"Sonoma Canyon Documents") and 2) a permanent casino, hotel, and retail resort
complex, known as the "Sonoma Falls" project (the "Sonoma Falls Documents").
Tribe has not and does not intend to negotiate with Developer regarding a
permanent casino, hotel and retail resort complex. The parties to this Agreement
believe that the Sonoma Canyon Documents contemplate an interim casino that was
to be built prior to May 15, 2001, which casino was not constructed. Neither the
Sonoma Canyon Documents nor any other documents govern the future construction
of a temporary casino on the Dry Creek Reservation pending development of the
permanent casino complex. This Agreement and the activities contemplated under
it do not interfere in any way with the rights and duties, if any, of the
parties to the Sonoma Canyon Documents or the Sonoma Falls Documents.

         NOW THEREFORE, in consideration of the representations, warranties and
mutual promises contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
parties agree as follows:

                                    ARTICLE I
                                  DEFINITIONS

         In addition to initially capitalized terms defined elsewhere in this
Agreement, the following terms shall have the meanings set forth below:

         "Affiliate" means any person or entity directly or indirectly
controlled by or under common ownership or control with the Tribe, including,
but not limited to, all commercial or business entities, agencies, corporations,
Projects or other instrumentalities of the Tribe. The TGC and EDA are affiliates
of the Tribe.

         "Agreement" means this Development and Loan Agreement.

         "Available Cash Flow" means the Net Revenues each month remaining after
Tribe has received its Tribal Draw and Debt Service (other than interest paid as
part of the Operating Expenses) has been paid.

         "Buy-Out Option" means the option described in Section 6.9 of this
Agreement.

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         "Class II Gaming" means Class II Gaming as defined in IGRA.

         "Class III Gaming" means Class III Gaming as defined in IGRA.

         "Collateral" means all Net Revenues and all Furnishings and Equipment.

         "Commencement Date" means the date on which the Project first opens to
the public for business.

         "Commitment" has the meaning assigned to that term in Section 2.2.

         "Compact" means the Tribal-State Gaming Compact between the Tribe and
the State of California.

         "Cost Budget " means the budget attached hereto as Exhibit "A" setting
forth the approximate costs the parties anticipate will be incurred in order to
prepare the Project for the Commencement Date and including certain costs
incurred by the Tribe in connection with conducting gaming on the Reservation
prior to the execution of this Agreement. The Cost Budget is to be funded from
the Development Advances and Loan proceeds. "Credit Enhancement Fee" means
twenty percent (20%) of Net Revenues payable to Developer pursuant to this
Agreement.

         "Credit Enhancement Term" means the period beginning on (i) the Final
Completion Date, if it occurs on the first day of any calendar month, (ii) the
fifteenth day of the month in which the Final Completion Date occurs, if it
occurs on any of the second through the fifteenth day of any calendar month or
(iii) the first day of the calendar month following that during which the Final
Completion Date occurs, if the Final Completion Date occurs on any of the
sixteenth through the thirty-first day of any calendar month, and ending in all
cases 60 months thereafter, subject to adjustment for any Tolling Period
pursuant to Section 6.8.3, unless terminated earlier pursuant to the Buy-Out
Option.

         "Credit Enhancer" is defined in Section 2.2.1 of this Agreement.

         "Debt Service" means all interest and principal due under the Financing
Documents.

         "Developer" means DRY CREEK CASINO, LLC, a Texas limited liability
company.

         "Development Advances" means the advances to Tribe made pursuant to
Section 2.1 of this Agreement.

         "Final Completion Date" means the date on which not less than 1400 of
the Tribe's authorized gaming devices are placed in operation in the Project or
May 15, 2002, whichever shall first occur.

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         "Financing" means all monies lent to Tribe pursuant to this Agreement,
including the Development Advances and the Loan proceeds.

         "Financing Documents" means this Agreement, the Note, the Security
Agreement and any other agreements, documents, or instruments from time to time
evidencing, guarantying, securing, or otherwise relating to the Financing,
including such forms of loan agreement, promissory note, security agreement and
such other documents and instruments as shall be required by Lender in
connection with the Loan, as they may be amended, modified, extended, renewed,
or supplemented from time to time.

         "Furnishings and Equipment" shall mean all furniture, fixtures and
equipment required for the operation of the Project in accordance with the
standards set forth in this Agreement, including, without limitation:

                  (a)      cashier, money sorting and money counting equipment,
                           surveillance and communication equipment and security
                           equipment;

                  (b)      electronic gaming terminals and video games of
                           chance, table games, bingo blowers, electronic
                           displays, Class II Gaming pull-tab dispensers, table
                           games, and other Class II Gaming and Class III Gaming
                           equipment, as permitted pursuant to the Compact and
                           the IGRA, which are not purchased pursuant to the
                           Gaming Device Agreements;

                  (c)      office furnishings and equipment;

                  (d)      specialized equipment necessary for the operation of
                           any portion of the Project for accessory purposes,
                           including, but not limited to, equipment for
                           kitchens, laundries, dry cleaning, cocktail lounges,
                           restaurants, public rooms, commercial and parking
                           spaces, and recreational facilities; and all other
                           furnishings and equipment hereafter located and
                           installed in or about the Facility which are used in
                           the operation of the Project in accordance with the
                           standards set forth in this Agreement.

         "Gaming" means any and all activities defined as either Class II Gaming
or Class III Gaming under IGRA and the Compact.

         "Gaming Ordinance" means the Dry Creek Gaming Act, and any regulations
promulgated thereunder, which has been enacted and approved in accordance with
IGRA.

         "Gross Revenues" means all revenues of any nature derived directly or
indirectly from the Project including, without limitation, all Gaming revenue,
all food and beverage sales, all entertainment and retail sales, all parking
fees and all other rental or other receipts from lessees, sublessees, licensees
and concessionaires (but not the gross receipts of such lessees, sublessees,
licensees or concessionaires, provided that such lessees, sublessees, licensees
and concessionaires are not subsidiaries or affiliates of the Tribe).

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         "IGRA" means the Indian Gaming Regulatory Act of 1988, as amended,
codified at 25 USC 2701 et seq., and all regulations promulgated thereunder.

         "Land" means the real property located within the Reservation.

         "Legal Requirements" means any and all present and future federal,
State, local and Tribal judicial, administrative, or legislative rulings or
decisions, as well as any and all present and future federal, state, local or
Tribal laws, codes, rules, regulations, permits, licenses and certificates, in
any way applicable to the Tribe, Developer, the Land, the Facility, and the
Project, including, without limitation, the IGRA, the Compact and the Gaming
Ordinance, as then currently in effect.

         "Lender" means one or more third-party federally or state regulated
banks or savings and loan institutions that together, through Developer's
efforts and pursuant to the Commitment, agree to provide the Loan to Tribe for
the Project.

         "Loan" means the loan provided by the Lender.

         "Maturity Date" means the fifth anniversary of the Commencement Date or
the date on which all obligations under the Financing Documents have been
repaid, whichever first occurs.

         "MOU" means that certain Memorandum of Understanding being negotiated
between and among the Tribe, Sonoma County, and certain local and county
agencies, in order to mitigate possible off-reservation environmental impacts
identified through the processes required under the Compact.

         "Net Revenues" means the Gross Revenues after prizes and payouts
(including deductions for allocation of shared jackpots) to reach the "win" as
referred to by accountants familiar with the gaming industry, less Operating
Expenses.

         "Note" means that certain promissory note to be executed by Tribe in
favor of the Developer to evidence the Development Advances, substantially in
the form of Exhibit "B" attached hereto.

         "Operating Expenses" means expenses incurred in the ordinary course of
operating the interim casino as recognized under GAAP, and including but not
limited to costs associated with and payments due under the MOU, rent (and, with
respect to capital leases, interest expenses) in connection with the rental or
lease of any gaming equipment or device, including but not limited to royalties,
license fees and other costs associated with the play of such equipment or
device, including themed or progressive-style slot machines, interest paid on
the Loan, regulatory fees, costs and assessments imposed under the Legal
Requirements, and payments due under the Compact, but excluding the Credit
Enhancement Fees, principal due under the Loan, any Tribal Draws, or any amounts
paid to Indemnitees under Section 4.5 of this Agreement. For avoidance of doubt,
"Operating Expenses" shall not include (a) the repair and replacement reserve
(or expenses) described in Section 2.11 (e) of this Agreement, (b) depreciation,
or (c) any expense which is incurred for some purpose other than the generation
of income or the maintenance or protection of the Project.

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For purposes of this Agreement, Operating Expenses considered in the computation
of Net Revenues shall be limited to those expenses which are reasonable and
necessary in accordance with common business practices in the gaming industry,
giving effect to the size, location, customer base, level of competition and
Gross Revenues of the Project (hereinafter "Reasonable Expenses"). If any party
believes that Operating Expenses for any contract year are in excess of
Reasonable Expenses, the matter shall be submitted to arbitration to be resolved
by one arbitrator in accordance with the Commercial Arbitration Rules of the
American Arbitration Association then in effect unless Tribe and Developer
mutually agree otherwise. This agreement to arbitrate shall be specifically
enforceable under the prevailing arbitration law. The award rendered by the
arbitrator shall not include any award of attorneys' fees and costs to the
prevailing party, shall be final, and judgment may be entered upon it in
accordance with applicable law in any court having jurisdiction.

Notice of the demand for arbitration shall be filed in writing with the other
party to the agreement and with the American Arbitration Association. The demand
for arbitration shall be made within a reasonable time after the dispute has
arisen, and in no event shall it be made later than 60 days after the later of
(a) delivery by Tribe of Year End Operating Statements for the year in question
in accordance with the provisions of Section 2.7.3, or (b) completion of
examination by Developer of the books and records in accordance with the
provisions of Section 2.7.3.

The notice of demand for arbitration submitted by each party to the American
Arbitration Association shall request the American Arbitration Association to
provide each party with a list of arbitrators that have at least ten (10) years
experience in Indian gaming operations. From this list, each party shall strike
the names of those arbitrators that such party would prefer not to have
arbitrate the dispute and attach a brief explanation of the reasons therefor.
Each party shall then list, in priority, the remaining arbitrators and return
such list to the American Arbitration Association to select the one arbitrator
for the arbitration proceeding based on the list returned by each party to the
American Arbitration Association.

         "Project " means the temporary gaming facility on the Land, to be known
as the Dry Creek Ridge Casino, together with ancillary development and all
fixtures, Furnishings and Equipment attached to, forming a part of the Project,
or necessary or useful for the operation of the Project.

         "Qualified Costs" means (i) all costs of developing, designing,
constructing, equipping and furnishing the Project, including consulting fees,
supplies, utility costs, regulatory costs, fees and assessments under Legal
Requirements, infrastructure improvements, landscaping, parking, curb cuts,
access enhancement, off-site road improvement and other infrastructure
improvements related to or necessary for the Project, architectural, engineering
and contractors' fees and costs, construction labor and materials, finishes,
signs, Furnishings and Equipment, the initial working capital for the Facility
and the Project necessary or desirable for implementing the operation of
Project, Developer's and Tribe's attorneys' and consultant's fees and legal
costs in connection with the Project, other professional fees in connection with
the Project, all pre-opening costs, and initial operating capital, to the extent
approved by Developer and set forth in the Cost Budget, (ii) Tribal governmental
and regulatory expenses as set forth in Exhibit "C", including, but not limited
to, Tribal Gaming Commission funding, and $90,000 per month from the date on
which the Loan is funded until the Commencement Date to continue to fund Tribal
governmental, housing and operating expenses, and (iii) all financing fees and
expenses, interest payments and any scheduled principal payments, incurred prior
to the Commencement Date; provided that all Qualified Costs shall be allocated
in accordance with GAAP, consistently applied and shall not include costs
incurred prior to the date of this Agreement, unless the costs are specifically
set forth on Exhibit "C" hereto.

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         "Reservation" means the real property within Sonoma County, California
that is owned in trust by the United States for Tribe, which Tribe occupies and
over which it exercises governmental jurisdiction, and on which all gaming
conducted as part of the Project shall be conducted.

         "Security Agreement" means the Security Agreement executed by the Tribe
to secure repayment of the Development Advances, securing the Collateral for the
benefit of Developer and Lender pursuant to this Agreement, substantially in the
form of Exhibit "D" attached hereto.

         "Sonoma Canyon Documents" means the documents by that name referred to
in paragraph G of the Recitals.

         "Sonoma Falls Documents" means the documents referred to by that name
in paragraph G of the Recitals.

         "Third-Party Disputes" means all disputes or claims relating, directly
or indirectly, to any Gaming on the Reservation, the Sonoma Canyon Documents,
the Sonoma Falls Documents, any other claimed agreements between the Tribe and
any third party, Gross Revenues, the Facility or any Collateral, and brought by
a person or entity not a party to this Agreement, against the Tribe, Developer,
Lender, or the Credit Enhancer, with respect to a claim which, if successful,
would materially affect Developer's economic rights under this Agreement.

         "Tolling Period" means period of cessation of operations pursuant to
Section 6.8.3.

         "Tribal Draw" means an amount of up to $300,000 (depending on
availability) of Net Revenues to be drawn by the Tribe each month in accordance
with Section 2.11 (a).

         "Tribe" means the Dry Creek Rancheria Band of Pomo Indians, a
federally recognized Indian tribe.

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                                   ARTICLE II

                       THE LOAN AND THE PROJECT FINANCING

         2.1 Developer shall advance the following funds (the "Development
Advances") to Tribe on the dates indicated for the purpose of assisting Tribe
meet its current obligations and expenses: (a) $320,000 upon execution of this
Agreement, which shall be used for said housing relocation expenses and a
$10,000 non-refundable expense deposit payable to the placement agent named
below, and the balance of which as the Tribe shall determine to meet both Tribal
operational needs and obligations related to the Project, including prior
efforts to develop a gaming project on the Reservation; and (b) $90,000 per
month on each of 30, 60 and 90 days after execution of this Agreement, to fund
Tribal governmental, housing and regulatory expenses until such time as the Loan
is funded. For purposes of this Agreement, Development Advances shall also be
deemed to include $30,000 loaned to Tribe for governmental purposes by an
Affiliate of Developer pursuant to a Loan Agreement dated June 15, 2001, and
such other advances as may be made by or through Developer on Tribe's behalf in
furtherance of Project development or otherwise, or as made necessary, if at
all, pursuant to Section 4.4(b) hereof. Such Development Advances shall earn
interest at the rate of 12% per annum, and shall be repaid as set forth below.

                  2.1.1    Repayment. The parties intend that the Development
                           Advances shall be repaid from the Loan proceeds. In
                           the event the Loan proceeds are insufficient, the
                           balance of the unpaid Development Advances shall be
                           repaid as recoupment in accordance with the
                           provisions of Section 2.11(d). Provided, that if
                           Tribe and Credit Enhancer do not fully execute and
                           deliver the Financing Documents and this Agreement
                           terminates pursuant to Section 2.3, then all
                           principal and accrued interest in connection with the
                           Development Advances shall be repaid by Tribe on or
                           before 90 days after the terminating date pursuant to
                           Section 2.3 (the "Due Date"), provided that principal
                           and accrued interest, at 12% per annum, not paid by
                           the Due Date shall accrue additional interest thereon
                           until paid in full, and provided further that any
                           repayment due hereunder shall be paid solely from Net
                           Revenues of any gaming operation or other commercial
                           enterprises, to the extent such revenues are in
                           excess of the Tribal Draw, then or thereafter
                           operated by or on behalf of Tribe.

                  2.1.2    Security. As security for Tribe's payment obligations
                           with respect to the Development Advances, Tribe
                           grants to Developer a first lien security interest in
                           the Collateral ("Developer's Lien"), which security
                           interest shall be superior to all other claims
                           against the Collateral. Tribe will execute and
                           deliver all documents required and reasonably
                           requested by Developer to evidence such security
                           interest from time to time. It shall be Tribe's sole
                           responsibility to cause the removal of any lien,
                           encumbrance or other claim against the Collateral.
                           Developer shall sign, deliver and record such
                           instruments as are required to remove Developer's
                           Lien upon the first to occur of (a) full execution
                           and delivery of the Financing Documents by Lender,
                           Credit Enhancer and Tribe, or (b) full repayment of
                           all Development Advances. Notwithstanding anything to
                           the contrary contained in this Agreement, Developer
                           acknowledges and agrees that prior to the execution
                           of this Agreement, the Sonoma Canyon Documents, the
                           Sonoma Falls Documents, or documents related to the
                           parties therein or their principals were executed and
                           may create liens or security interests that conflict
                           with the provisions of this Section and other
                           security interests contained herein ("Third Party
                           Liens"). The existence of any enforceable Third Party
                           Liens shall not be deemed to be a violation of this
                           Section or a breach of this Agreement.

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         2.2 Loan Commitment. Developer shall use its best efforts to arrange
for the Tribe to receive Loan proceeds no later than December 15, 2001, in the
amount of Twenty Seven Million Five Hundred Thousand and No/00 Dollars
($27,500,000) less the amount of the Development Advances (in total, the "Loan")
to be disbursed for the payment of Qualified Costs to facilitate the immediate
commencement of development and construction activities with respect to the
Project. Said Loan shall be funded through the Commitment described below to the
extent such Commitment is available, provided that both parties shall cooperate
in seeking the lowest interest rate, terms and Loan fees and the most favorable
terms available through the placement agent named below, consistent with current
market conditions:

                  2.2.1    Attached hereto as Exhibit "E" is a Loan placement
                           commitment (the "Commitment") from Miller Johnson
                           Steichen Kinnard, Inc ("MJSK"), which Developer has
                           obtained on behalf of Tribe in the amount of
                           $27.5 million. Developer (or one or more of its LLC
                           Members) shall act as a guarantor (the "Credit
                           Enhancer") of the Loan covered by the Commitment, to
                           the extent a guaranty is required by the Lender.
                           Lender may substitute a third party to act as Credit
                           Enhancer provided such party meets all the Legal
                           Requirements for lending funds to the Project, agrees
                           to the terms and conditions agreed to by Developer
                           under this Agreement, and does not require any delay
                           in the commitments made by Developer herein. Tribe
                           and Developer hereby consent to the terms and
                           conditions of the Commitment. Tribe agrees to execute
                           the Financing Documents as borrower, provided they
                           conform in material part to the Commitment and this
                           Agreement and subject to Tribe's reasonable approval.
                           Developer agrees to cause the Credit Enhancer to
                           execute the Financing Documents as guarantor,
                           provided they conform in material part to the
                           Commitment and this Agreement and subject to Credit
                           Enhancer's reasonable approval.

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         2.3 Tribe shall execute all Financing Documents reasonably required,
upon commercially reasonable terms and consistent with this Agreement, to enable
Developer to timely meet the Loan funding obligations herein. In the event that
the Tribe has not timely executed the Financing Documents in accordance with
this Agreement by December 15, 2001, or Developer has not caused the Loan
described in Section 2.2 above to fund by such date, either through the
Commitment or otherwise, this Agreement shall thereupon be null and void, and
neither party shall have any further or continuing obligation to the other,
except that (a) Tribe's obligation to repay the Development Advances in
accordance with the provisions of Section 2.1.1, (b) all provisions herein
related to security granted by Tribe to secure repayment of said Development
Advances, and (c) all remedies granted to Developer hereunder to enforce Tribe's
obligations under Section 2.1.1 (including without limitation Sections 4.5, 5.2,
5.3, and 5.4) shall remain in full force and effect. Further, in the event that
the Loan is available for funding in accordance with the terms of the Commitment
by December 15, 2001, then any failure of the Tribe to accept such funding,
whether as a result of its failure to execute any of the Financing Documents
reasonably required, upon commercially reasonable terms and consistent with this
Agreement and the Commitment, or to reasonably satisfy any material condition
precedent to funding set forth in this Agreement or any of the Financing
Documents which is within the control of the Tribe, shall be deemed to be and
shall constitute an exercise by the Tribe of the Buy-Out Option provided for in
Section 6.9 of this Agreement.

                  2.3.1    Notwithstanding the provisions of Section 2.2, it is
                           mutually agreed and understood that Developer's
                           obligation to use its best efforts to cause the Loan
                           proceeds to be provided to Tribe is expressly
                           conditioned upon satisfaction of the conditions set
                           forth in Sections 2.5, 2.5.1, 2.5.2 and such other
                           conditions set forth in the Financing Documents as
                           shall be required by Lender, and delivery to
                           Developer of each of the following:

                           (1)   Resolution of the Tribal Council authorizing
                                 the execution, delivery and performance of
                                 this Agreement and the Financing Documents
                                 to which the Tribe is a party;

                           (2)   Certificates signed by the Chairman of the
                                 Board as to the incumbency and proper
                                 signature of the person or persons
                                 authorized to execute and deliver the
                                 Financing Documents and any other
                                 certificates or documents to be delivered by
                                 the Board; and

                           (3)   a certificate of the Chairman of the Board
                                 stating that, after giving effect to this
                                 Agreement or the Financing Documents, to the
                                 best of his knowledge the representations
                                 and warranties contained herein are true and
                                 accurate and no Event of Default exists as
                                 of the date hereof with respect to the
                                 Development Advances.

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         2.4 Loan. Upon satisfaction of all the conditions precedent for
obtaining the Loan, Developer agrees to make available, or cause Lender to make
available, to Tribe the Loan proceeds within five (5) days of the execution of
the Financing Documents, which shall be advanced, deposited and disbursed
pursuant to the Financing Documents and to the extent agreed by Tribe, which
agreement shall not be unreasonably withheld. Tribe agrees that the Loan funds
shall be used solely for the payment of Qualified Costs in furtherance of the
purposes set forth in this Agreement.

                  2.4.2    In addition to said principal amount of the Loan set
                           forth in the preceding subparagraph, Developer agrees
                           to make available to Tribe as and when needed, but no
                           sooner than 30 days after the Commencement Date, its
                           credit enhancement for, and its best efforts to
                           assist Tribe in obtaining, an additional loan of up
                           to Nine Million Dollars ($9,000,000) ("Stand-by
                           Loan") to be used solely for liquidating any Third
                           Party Dispute claim as Tribe, in its sole discretion,
                           deems justified.

         2.5 Conditions Precedent to Development Advances. Developer's
obligation to make Development Advances pursuant to this Agreement shall become
effective only upon satisfaction of the following conditions precedent at the
sole cost and expense of Tribe:

                  2.5.1    Representations and Warranties Accurate. The
                           representations and warranties by Tribe in Section
                           4.2 herein are correct on and as of the date of this
                           Agreement and on the date of each Development
                           Advance.

                  2.5.2    Documents. Developer shall have received the
                           following agreements, documents and instruments, each
                           duly executed by the parties thereto:

                           (i) Security Documents. The Security Agreement and
                  such other documents, agreements, and instruments as may be
                  required by Developer, securing the Collateral for the benefit
                  of Developer or perfecting such security interest;

                           (ii) Certificate. Certificates signed by the Chairman
                  of the Board as to the incumbency and proper signature of the
                  person or persons authorized to execute and deliver any such
                  documents, agreements and instruments and any other
                  certificates or documents to be delivered by the Board;

                           (iii) Tribal Documents. Copies of the following,
                  certified as to authenticity by the Secretary of the Board:

                           (1)   Resolution of the Tribal Council authorizing
                                 the execution, delivery and performance of
                                 this Agreement and other documents to which
                                 the Tribe is a party.

                           (2)   Resolution of the Tribal Council authorizing
                                 execution of the Compact.

                           (3)   the fully executed Compact.

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                           (4)   evidence of the publication of notice of the
                                 Compact in the Federal Register as required
                                 by IGRA.

                           (5)   letter from Secretary of the Interior as to
                                 effectiveness of Compact.

                           (6)   Resolution of the Tribal Council adopting
                                 Gaming Ordinance.

                           (7)   the Gaming Ordinance.

                           (8)   all Gaming regulations, if any, adopted
                                 under the Gaming Ordinance.

                           (9)   evidence that the Gaming Ordinance has been
                                 approved by the NIGC to the extent required
                                 by IGRA, or an opinion of legal counsel to
                                 the Tribe that such approval is not required
                                 for the Tribe to be in compliance with IGRA.

                           (10)  all licenses issued or required to be issued
                                 by the TGC, or any government authority to
                                 the Tribe in connection with the operation
                                 of the Project.

                           (11)  to the extent not identified above in this
                                 Section, and except as may be prohibited by
                                 law or agreement, all other agreements or
                                 contracts of the Tribe or any affiliate of
                                 the Tribe concerning the conduct of gaming
                                 activities on the Reservation or the
                                 development, financing, design,
                                 construction, installation, equipping or
                                 operation of the Project, including any
                                 off-site improvement or development
                                 contracts, any multi-game device,
                                 consulting, management, joint venture,
                                 partnership, purchase, financing, mortgage,
                                 loan or equipment transportation agreement,
                                 and any lease, franchise, licensing or
                                 easement contract.

                           (12)  to the extent not identified above in this
                                 Section, all resolutions and ordinances of
                                 the Tribe relating to the Project, this
                                 Agreement or the Development Advances,
                                 including those that relate to or may affect
                                 any action relating to:

                                       o the sovereign immunity of the Tribe;

                                       o the powers and authority of the Tribe;

                                    Page 12
<PAGE>

                                       o the development, design, financing,
                                         construction, installation, equipping,
                                         or operation of the Project;

                                       o the Land on which the Project is
                                         located;

                                       o secured financing matters, including
                                         the uniform commercial code;

                                       o other forms of borrowing or pledging of
                                         Tribe's assets;

                                       o commercial transactions;

                                       o permits and licenses relevant to the
                                         Gaming Facilities and the conduct of
                                         the operations of the Tribe at the
                                         Gaming Facilities;

                                       o investment restrictions or
                                         requirements; and

                                       o any tax imposed on the development,
                                         design, financing, construction,
                                         installation, equipping or operation of
                                         all or any portion of the Project.

                           (iv) a certificate of the Chairman of the Board
                  stating that after giving effect to this Agreement, and to the
                  best of his knowledge, the representations and warranties
                  contained herein are true and accurate and that no Event of
                  Default exists as of the date hereof hereunder;

                           (v) chattel lien searches covering the name of the
                  Tribe, the Project or any Affiliate, current within seven (7)
                  days of the effective date of this Agreement, reflecting no
                  liens or encumbrances on the Project, or the Collateral;

                           (vi) searches within seven (7) days of the effective
                  date of this Agreement evidencing no bankruptcies, tax liens,
                  or judgments relating to the Tribe, any affiliate of the Tribe
                  or any of the properties that are not consented to by
                  Developer;

                           (vii) the opinion of legal counsel for the Tribe in
                  substantially the form attached hereto as Exhibit "F";

                           (viii) evidence of the insurance coverage required by
                  Section 2.10 hereof,

                           (ix) Evidence of Completion of Filings and
                  Recordings. Evidence of completion of all recordings and
                  filings to establish and maintain perfection and priority of
                  the Collateral; and

                                     Page 13
<PAGE>

                           (x) Other Items. Such other agreements, documents,
                  and instruments as Lender or Developer may reasonably require,
                  including, without limitation, invoices and other documents
                  evidencing the Qualified Costs.

                  2.5.3    Waiver of Conditions. Delay or failure by Lender or
                           Developer to insist on satisfaction of any condition
                           of a Loan or Development Advance shall not be a
                           waiver of such condition precedent or any other
                           condition precedent. If Tribe is unable to satisfy
                           any condition precedent, the making of the Loan shall
                           not preclude Lender or Developer from thereafter
                           declaring the condition or event causing such
                           inability to be an Event of Default.

         2.6 Credit Enhancement Fee.

                  2.6.1    In addition to all other payments paid to the
                           Developer under the Financing Documents, Tribe shall
                           pay to Developer from Available Cash Flow the Credit
                           Enhancement Fee. Payment to Developer of the Credit
                           Enhancement Fee is in consideration of Developer
                           providing the Credit Enhancer and all other services
                           under this Agreement, and shall be paid to Developer
                           during the entire Credit Enhancement Term and during
                           the period between the Commencement Date and the
                           Final Completion Date (the "Pre-Completion Period"),
                           unless Tribe exercises the Buy-Out Option. The Credit
                           Enhancement Fee is considered due and payable on the
                           15th day of each month of the Credit Enhancement Term
                           and of the Pre-Completion Period.

                  2.6.2    As additional security for Tribe's payment
                           obligations with respect to the Credit Enhancement
                           Fee, Tribe grants to Developer a first lien security
                           interest in the Collateral, which security interest
                           shall be superior to all other claims against the
                           Collateral. Tribe will execute and deliver all
                           documents required and reasonably requested by
                           Developer and or the Lender to evidence such security
                           interest. It shall be Tribe's sole responsibility to
                           cause the removal of any lien, encumbrance or other
                           claim against the Collateral, including without
                           limitation any lien, encumbrance or other claim, from
                           a Third Party Dispute. Notwithstanding the foregoing
                           provisions of this Section 2.6.2, Developer agrees to
                           subordinate the foregoing lien to any lien required
                           by Lender as a condition of funding the Loan.

                  2.6.3    The Tribe shall pay interest on overdue Credit
                           Enhancement Fees at the rate equal to 12% per annum
                           to the extent lawful; it shall pay interest
                           (including post-petition interest in any proceeding
                           under any bankruptcy law) on overdue installments of
                           such interest (without regard to any applicable grace
                           period) at the same rate to the extent lawful. All
                           interest shall be automatically included into
                           the next month's Credit Enhancement Fee payment.
                           Insufficient Available Cash Flow from which to pay
                           any portion of the Credit Enhancement Fee shall not
                           be deemed to render payment of such fee "overdue" or
                           to constitute an event of default under this or any
                           other agreement.

                                     Page 14
<PAGE>

         2.7 Accounting and Books of Account.

                  2.7.1    Pursuant to GAAP and the Legal Requirements, the
                           Tribe shall prepare and provide access to or make
                           available to Developer:

                           (a)   Project operating statements, operating
                                 budgets, the annual business plan and the
                                 capital budget and a budget for capital
                                 replacements;

                           (b)   full and accurate books of account of the
                                 Project, located at an office in or near the
                                 Project. Developer shall have reasonable
                                 access, to be exercised during business
                                 hours on at least 24 hours notice, to the
                                 Project and its books and records for the
                                 purpose of auditing the payments and
                                 determinations thereof under this Agreement,
                                 and shall have the unlimited right to
                                 inspect, examine, and copy all such books
                                 and supporting business records. Such rights
                                 may be exercised through an agent, employee,
                                 attorney, or independent accountant acting
                                 on behalf of the Developer;

                           (c)   Project internal control systems as defined
                                 by IGRA; and

                           (d)   an annual audit of the Project by a
                                 nationally recognized independent certified
                                 public accounting firm. Such audits shall be
                                 provided by the Tribe to all applicable
                                 federal and state agencies, as required by
                                 law.

                  2.7.2    Commencing with the first month after the
                           Commencement Date, and continuing until completion of
                           the Credit Enhancement Term, within fifteen (15) days
                           of the end of each calendar month, the Tribe shall
                           provide to Developer operating statements for the
                           preceding month, which after a full year of operation
                           will include comparative statements, which set forth
                           among other things, Gross Revenues, Operating
                           Expenses, Net Revenues, cash flow from operations and
                           the amount of the Credit Enhancement Fee paid or
                           payable to Developer. Such statements shall be
                           prepared in accordance with GAAP. The Tribe will also
                           promptly provide to Developer such other information
                           concerning the business, property or financial
                           condition of the Project as Developer may reasonably
                           request.

                                     Page 15
<PAGE>

                  2.7.3    Within ninety (90) days following the end of the
                           fiscal year in which the Commencement Date occurs and
                           thereafter following the end of each fiscal year (or
                           portion thereof) until the last day of the Credit
                           Enhancement Term, the Tribe shall provide to
                           developer, operating statements derived from audited
                           financial statements (the "Year End Operating
                           Statements") for the preceding fiscal year, which
                           after a full year of operation will include
                           comparative statements, which set forth among other
                           things, Gross Revenues, Operating Expenses, Net
                           Revenues, cash flow from operations and the amount of
                           the Credit Enhancement Fee paid or payable to
                           Developer. Such statements shall be prepared in
                           accordance with GAAP and by a nationally recognized
                           certified public accounting firm with demonstrated
                           experience and expertise in the gaming industry.
                           Developer shall have the right to audit these Year
                           End Operating Statements by examination of all or any
                           part of the books and records of the Project as
                           Developer, in its sole discretion, may require,
                           provided it is exercised in accordance with Section
                           2.1(b) above. To the extent that the Year End
                           Operating Statements on Developer's audit determines
                           that the Credit Enhancement Fees paid during the
                           preceding Fiscal Year require an increase in the
                           amount due, then that increase shall be paid by the
                           Tribe within fifteen (15) days of notification by
                           Developer to the Tribe. Overpayments by Tribe to
                           Developer shall be refunded to Tribe in like fashion.

         2.8 Prepayment. Tribe may at any time prepay, in whole or part,
principal and interest due on the Development Advances or the Loan without
penalty; provided, such repayment will not relieve Tribe of paying the Credit
Enhancement Fee during the full Credit Enhancement Term, except as set forth in
Section 6.9.

         2.9 Tribal Taxes and Assessments. Except for regulatory and background
fees, costs and assessments imposed under the Legal Requirements, neither Tribe
nor any agent, agency, affiliate or representative of Tribe shall impose any
taxes, fees, assessments or other charges of any nature whatsoever on or against
Lender or the Developer relating to this Agreement, the Development Advances,
Loan, or the Financing Documents.

         2.10 Insurance. The Tribe shall arrange for, obtain and maintain, or
cause its agents to arrange for, obtain and maintain, with responsible insurance
carriers licensed to do business in the State of California, insurance in the
amounts and containing terms and conditions satisfactory to Lender, Developer,
and the Board covering the design, development and construction of the Project,
the Facility and the operations of the Project. Such insurance shall name the
Tribe, the Developer, the Credit Enhancer, and the Lender as insured.

         2.11 Payment of Fees and Tribal Disbursement. Within fifteen (15) days
after the end of each calendar month of operations, the Tribe shall calculate
Gross Revenues, Operating Expenses, Net Revenues of the Project, and Available
Cash Flow for the previous month's operations and the year's operations to date.
Except as otherwise required by the Financing Documents, Net Revenues shall be
disbursed from the Project bank account(s) to the extent available in the
following order of priority:

                                    Page 16
<PAGE>

                           (a)   the Tribal Draw;

                           (b)   current principal, interest (to the extent,
                                 if any, not paid as part of the month's
                                 Operating Expenses), and any other payments
                                 due pursuant to the Financing Documents, the
                                 Note, and principal payments on any capital
                                 leases;

                           (c)   the Credit Enhancement Fee;

                           (d)   recoupment payments to Developer for
                                 Development Advances not covered by the
                                 Loan, and any other funds advanced to the
                                 Project or the Tribe or expenses incurred by
                                 Developer pursuant to Section 2.1 or
                                 referenced in Sections 4.4(b) and 4.5 of
                                 this Agreement; and

                           (e)   a reasonable reserve for repairs and
                                 replacement of Project building, furniture
                                 and equipment.

                                 The priority of payments from available funds
                           which is described in this Section does not control
                           the calculation of the amount of each of these
                           obligations. The calculation of the amounts of these
                           obligations shall be as otherwise provided by this
                           Agreement. The Tribe agrees that it will disburse all
                           Net Revenues and pay all Operating Expenses in
                           accordance with the terms of this Agreement.

                                   ARTICLE III
                              PROJECT DEVELOPMENT

         3.1 Developer to Provide Project Development Assistance. Tribe
recognizes that Developer has substantial expertise in the development of gaming
facilities. For this reason, Tribe has sought Developer's assistance in the
development of the Project. At all times, however, Tribe has had and shall
continue to have exclusive proprietary control and absolute discretion in
Project development and operational matters. Developer has served and shall
continue to serve only at Tribe's request and solely as a pre-Commencement Date
consultant to collaborate with Tribe on all material aspects of the Project's
development, design and construction. In that capacity, Developer shall provide
advice to Tribe on the following types of issues:

                           (a)   Project Design. Developer shall provide
                                 recommendations on the selection and
                                 retention of an architect to develop a
                                 design that meets the Tribe's needs and
                                 requirements with respect to Project
                                 facilities, including but not limited to the
                                 Tribe's determinations of appropriate themes
                                 and decorative designs. During the course of
                                 construction, Developer will be available to
                                 meet with the architect to seek
                                 interpretation as to the meaning and intent
                                 of drawings and specifications and assist in
                                 the resolution of design questions that may
                                 arise.

                                     Page 17
<PAGE>

                           (b)   Project Construction. Developer shall
                                 provide recommendations on the selection and
                                 retention of a construction manager and
                                 general contractor and other construction
                                 and design professionals, and shall provide
                                 advice on methods of negotiating, bidding
                                 and awarding construction contracts.
                                 Developer shall also provide recommendations
                                 on quality control measures, such as
                                 retention of an inspecting architect to
                                 verify that construction is proceeding
                                 according to plans and specifications.
                                 Moreover, Developer shall assist Tribe in
                                 (i) preparing construction timetables and
                                 schedules, (ii) developing change orders, if
                                 any, (iii) monitoring construction and
                                 development costs, including developing cash
                                 flow reports and forecasts, (iv)
                                 implementing procedures for review and
                                 processing of construction expenditures, (v)
                                 meeting with contractors and subcontractors
                                 to resolve issues, (vi) assisting in the
                                 review and evaluation of claims arising out
                                 of construction matters, and (vii) reviewing
                                 implementation of safety programs. Developer
                                 shall not make any commitments or agreements
                                 on Tribe's behalf without specific written
                                 authorization from Tribe to do so.

                           (c)   Financial Planning. Developer shall assist
                                 Tribe in the development of preliminary
                                 design, construction and operating budgets,
                                 and shall assist Tribe in updating and
                                 refining budget figures to reflect
                                 increasing detail and refinement. Developer
                                 shall also advise Tribe on amounts of
                                 insurance coverage that are standard for the
                                 industry and as to sources for obtaining
                                 such insurance.

                           (d)   Purchasing. Developer shall advise Tribe in
                                 the purchasing of materials, furniture,
                                 furnishings and equipment for the Project.

                           (e)   Staffing. Developer shall advise Tribe in
                                 identifying experts of various aspects of
                                 Project development, including kitchen
                                 design, telephone and communications
                                 systems, sound systems, computer systems,
                                 security and surveillance systems, sign
                                 equipment, gaming equipment, uniforms and
                                 the like. Developer shall also advise Tribe
                                 on recruiting personnel, including but not
                                 limited to participation in one or more job
                                 fairs held by Tribe.

                                     Page 18
<PAGE>

                           (f)   Marketing. Developer shall assist Tribe in
                                 the development of a marketing plan for the
                                 Project, in the preparation and coordination
                                 of pre-opening advertising, public relations
                                 and other marketing activities for the
                                 Project. In addition, Developer will provide
                                 advice on developing Project logos, trade
                                 names, trade marks, copyrights and other
                                 intellectual property.

                           (g)   Records. Developer will make recommendations
                                 on establishing appropriate accounting,
                                 internal financial controls, and financial
                                 reporting systems, including the development
                                 of a system for maintaining books, records
                                 and other data relating to the Project.

         Nothing contained herein shall be construed as rendering Developer
liable or responsible for the actions or activities of Tribe or anyone else
performing services for or supplying materials to the Project, whether
recommended by Developer or not. Further, Developer shall not be responsible for
incurring any costs of construction or development of the Project, rather Tribe
shall be solely responsible for such costs. Neither shall Developer be
responsible for supervising construction or development of the Project, or for
any defect or defects therein. To the contrary, it is acknowledged that the
services rendered by Developer to Tribe are advisory in nature only, and Tribe
may accept or reject Developer's advice as Tribe so chooses.

         3.2 No Assignment. Tribe has hired Developer to provide assistance on
Project development matters based on Developer's expertise in the field. As
such, Developer may not assign or subcontract its responsibilities in that
regard without Tribe's prior written approval; provided, however, Developer may
assign this Agreement without the Tribe's approval on or after the Completion
Date.

         3.3 Exclusivity. During the Credit Enhancement Term, and until all fees
and obligations due to the Developer, together with any interest or arrearage,
are paid to Developer in full, and while any obligation of Developer under the
Financing Documents remains outstanding:

                           (a)   Developer shall be the exclusive
                                 pre-Commencement Date provider of the
                                 construction and loan assistance services
                                 described herein with respect to the Project
                                 except to the extent any court of competent
                                 jurisdiction shall finally determine that
                                 any other party has rights with respect to
                                 the Project which are superior to those of
                                 Developer.

                                     Page 19
<PAGE>

                           (b)   During the term of this Agreement, Developer
                                 will have a right of first refusal to (i) be
                                 the exclusive developer of any future
                                 developments, including but not limited to,
                                 future casinos, hotels, entertainment
                                 facilities, and gaming-related facilities
                                 for the Tribe or any of the Affiliates which
                                 are identified by Tribe or become the
                                 subject of discussions or negotiations with
                                 Developer (collectively "Future Projects"),
                                 and (ii) to provide consulting services or
                                 to serve in a similar capacity with respect
                                 to all of the Future Projects, provided that
                                 this subparagraph shall be deemed void and
                                 stricken if the NIGC determines that it in
                                 any way renders this Agreement to be a
                                 Management Contract under IGRA, and
                                 provided, further, that, as to any permanent
                                 casino project, the rights granted to
                                 Developer herein shall be subject to any
                                 enforceable rights granted in the Sonoma
                                 Falls Documents to the developer or manager
                                 therein, unless and until the parties
                                 thereto shall terminate the Sonoma Falls
                                 Documents or consent to or waive any
                                 inconsistency with this Agreement, or any
                                 court of competent jurisdiction shall
                                 finally determine that the Sonoma Falls
                                 Documents do not constitute a binding
                                 agreement of the parties thereto enforceable
                                 in accordance with its terms. If Developer
                                 desires to exercise its right of first
                                 refusal, it must do so in writing within
                                 sixty (60) days after submission by Tribe to
                                 Developer of any third party bona fide
                                 contract, consulting or similar offer
                                 regarding the Future Projects ("Future
                                 Project Documents"). This right of first
                                 refusal does not grant Developer the right
                                 to manage any other gaming operations of the
                                 Tribe. The Tribe covenants to act in good
                                 faith and negotiate all Future Project
                                 Documents accepted by Developer and in which
                                 it is a party, on a reasonable basis, and to
                                 use its best efforts to expedite seeking BIA
                                 or NIGC approval of such Future Project
                                 Documents to the extent such approval is
                                 required under the Legal Requirements.

                           (c)   Subject to the preceding subparagraph,
                                 Developer and the Tribe both agree that
                                 unless a court of competent jurisdiction
                                 finally determines that the tribe is
                                 obligated to proceed under the Sonoma Canyon
                                 Documents or the Sonoma Falls Documents,
                                 none of Developer, Tribe nor any of the
                                 Tribe's Affiliates will, directly or
                                 indirectly, by any means whatsoever, develop
                                 any Gaming facilities that will reduce the
                                 Gross Revenues or the amount of Gaming
                                 devices or machines currently located at the
                                 Facility, without the written consent of the
                                 other party; provided that nothing shall
                                 restrict Developer or its affiliates from
                                 placing games or gaming devices in or
                                 providing services related to such placement
                                 at any facility owned by an unaffiliated
                                 third party, provided such facility is
                                 outside the boundaries of Marin, Sonoma,
                                 Napa, Mendocino and Lake Counties (the
                                 "Preference Area").

                                     Page 20
<PAGE>

                                   ARTICLE IV
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

         4.1 Representations and Warranties of Developer. Developer represents
and warrants that:

                           (a)   Developer has duly authorized the execution
                                 and delivery of this Agreement and the
                                 third-party loan Commitment to Tribe on the
                                 terms described herein. No further act or
                                 approval of Developer is required as a
                                 condition for entering into or fully
                                 performing under this Agreement.

                           (b)   The execution and delivery of this Agreement
                                 and Developer's performance hereunder do not
                                 conflict with or violate any law, contract
                                 or agreement by which Developer is bound.

                           (c)   Developer knows of no reason under gaming
                                 license suitability criteria set forth in
                                 IGRA, the Compact, the Gaming Ordinance, or
                                 California law, why Developer would not be
                                 deemed suitable as a Developer or licensee.
                                 Developer shall immediately apply for,
                                 obtain and maintain any licenses, including
                                 gaming licenses, required by federal and
                                 state law, the Compact, and the Gaming
                                 Ordinance.

         4.2 Representations and Warranties of Tribe. Subject to the effect, if
any, of the Sonoma Canyon Documents and the Sonoma Falls Documents, which the
Tribe does not believe are in conflict with this Agreement, Tribe represents and
warrants that;

                           (a)   Tribe is a federally-recognized Indian
                                 tribe.

                           (b)   The execution and delivery of this Agreement
                                 and Developer's performance hereunder do not
                                 conflict with or violate any law, contract
                                 or agreement by which Tribe is bound, except
                                 as the documents referred to in Section 3.3
                                 (b) may be determined to create such
                                 conflict or violation."

                           (c)   Tribe has duly authorized the execution and
                                 delivery of this Agreement on the terms
                                 described herein. No further act or approval
                                 of Tribe, other than the TGC (as required
                                 under the Compact), is required as a
                                 condition for entering into or fully
                                 performing under this Agreement.

                                     Page 21
<PAGE>

                           (d)   The Land is "Indian lands," as defined in 25
                                 U.S.C.ss.2703(4), and the Tribe has full
                                 right, power and authority under applicable
                                 law to conduct Class II and Class III gaming
                                 on the Land.

                           (e)   The Compact and the Gaming Ordinance are in
                                 full force and effect.

                           (f)   Subject to the qualifications set forth in
                                 the opinion of legal counsel for the Tribe
                                 in the form attached hereto as Exhibit "F"
                                 and hereby incorporated by reference, Tribe
                                 has purchased sufficient Gaming Device
                                 Licenses under the Compact to enable it to
                                 operate a total of 1600 gaming devices at
                                 the Project;

                           (g)   There are no suits, actions, proceedings or
                                 investigations, pending or threatened,
                                 against or affecting the Tribe before any
                                 court or governmental agency, except as set
                                 forth in Exhibit "F-1 ";

                           (h)   To the best of Tribe's knowledge, this
                                 Agreement is not subject to approval of the
                                 NIGC, and is fully enforceable in accordance
                                 with its terms and conditions, without
                                 approval by the NIGC.

         4.3 Covenants of Tribe. The Tribe covenants as follows:

                           (a)   Prompt Payment. Tribe shall promptly pay
                                 when due all principal and interest on the
                                 Development Advances or the Loan and all
                                 Credit Enhancement Fee payments, as
                                 evidenced by the Note and the other
                                 Financing Documents.

                           (b)   Ownership. Tribe or a wholly-owned Affiliate
                                 of Tribe shall retain complete ownership and
                                 control over the Project.

                           (c)   No Amendment. That Tribe shall not act in
                                 any way whatsoever, directly or indirectly,
                                 to cause this Agreement and all other
                                 instruments and agreements executed between
                                 the parties in connection with this
                                 Agreement to be amended, modified, canceled,
                                 or terminated, except pursuant to its
                                 express terms, and shall take all actions
                                 necessary to ensure that this Agreement and
                                 all other instruments and agreements
                                 executed between the parties in connection
                                 with this Agreement shall remain in full
                                 force and effect at all times.

                                     Page 22
<PAGE>

                           (d)   No Violation. Subject to Section 3.3 (b)
                                 above, that Tribe will not proceed to
                                 develop, operate or invest in any Gaming of
                                 any kind in violation of this Agreement or
                                 any other instruments and agreements
                                 executed between the parties in connection
                                 with this Agreement. Tribe will always meet
                                 the requirements of the IGRA and the
                                 applicable regulations under the IGRA and be
                                 consistent with the provisions of this
                                 Agreement and not adversely affect the
                                 rights of Developer hereunder and
                                 thereunder.

                           (e)   Performance. Tribe agrees to enter into the
                                 Financing Agreements, and execute all
                                 documents necessary to carry out the
                                 purposes of this Agreement in accordance
                                 with the terms of the Compact, the Legal
                                 Requirements pertaining to the Project, and
                                 factual particulars for development,
                                 construction and operation of the Project
                                 for Class III Gaming, and Class II Gaming if
                                 applicable.

                           (f)   No Law Impairing Obligation. That during the
                                 Credit Enhancement Term, Tribe shall enact
                                 no law impairing the obligations entered
                                 into in this Agreement without the prior
                                 written consent of Developer.

                           (g)   Specific Enforcement. That this Agreement,
                                 the Security Agreement, and all other
                                 instruments and agreements executed between
                                 the parties in connection with this
                                 Agreement shall be specifically enforceable
                                 in accordance with their terms.

                           (h)   Compliance With Law. That in its performance
                                 of this Agreement and all other instruments
                                 and agreements executed between the parties
                                 in connection with this Agreement, Tribe
                                 shall comply with all Legal Requirements.
                                 That during the Credit Enhancement Term all
                                 Gaming at the Project and on the Property
                                 shall be conducted in accordance with the
                                 IGRA, the Compact, and the governing law of
                                 Tribe. That if the State of California or
                                 any local government attempts to impose any
                                 tax including any possessory interest tax
                                 upon any party to this Agreement or with
                                 respect to the Project, the Project or the
                                 Property, the Project and Tribe in the name
                                 of the appropriate party or parties in
                                 interest, shall resist such attempt through
                                 legal action.

                           (i)   Property. That Tribe will maintain the Land
                                 throughout the Credit Enhancement Term as
                                 land held in trust by the United States of
                                 America for the benefit of Tribe.

                             Page 23
<PAGE>

                           (j)   Access. That during the Credit Enhancement
                                 Term, that Developer shall and may peaceably
                                 have complete access to and presence in the
                                 Property and the Project in accordance with
                                 but to the extent limited by the terms of
                                 this Agreement, it being the intention of
                                 the parties that Developer shall not operate
                                 or otherwise be present at the Project
                                 except for the auditing and other limited
                                 purposes solely related to the verification
                                 of accounting records and payments due as
                                 provided in this Agreement, free from
                                 molestation, eviction and disturbance by
                                 Tribe or by any other person or entity;
                                 provided, however, that such right of access
                                 to and presence in the Project shall cease
                                 upon the termination of this Agreement
                                 pursuant to its terms.

                           (k)   State Taxes. That, if the State of
                                 California or any local government attempts
                                 to impose any tax, including any possessory
                                 interest tax upon any party to this
                                 Agreement or with respect to the Project,
                                 the Project or the Property, the Project and
                                 Tribe, in the name of the appropriate party
                                 or parties in interest, shall resist such
                                 attempt through legal action.

                           (l)   No Tribal Taxes. That neither Tribe nor any
                                 agent, agency, Affiliate or representative
                                 of Tribe will impose any taxes, fees,
                                 assessments or other charges of any nature
                                 whatsoever on payments of any debt service
                                 to Developer or to any Lender furnishing
                                 financing for the Project or for the
                                 Project, or on the Project, the Project, the
                                 revenues therefrom or on the Credit
                                 Enhancement Fee on the salaries or benefits,
                                 or dividends paid to, any of Developer's
                                 members, stockholders, officers, directors,
                                 or employees, any of the employees of the
                                 Project or any provider of goods, materials
                                 or services to the Project.

                           (m)   No Liens. That during the Credit Enhancement
                                 Term Tribe shall not act in any way
                                 whatsoever, either directly or indirectly,
                                 to cause or permit any person or entity to
                                 become a holder of an encumbrance or lien on
                                 the Property or the Project, other than
                                 Developer, or Lender, or to allow any person
                                 or entity to obtain any interest in this
                                 Agreement without the prior written consent
                                 of Developer and, where applicable, consent
                                 from the United States.

                                    Page 24
<PAGE>

                           (n)   Stay, Extension and Usury Laws. That (to
                                 the extent that it may lawfully do so) it
                                 shall not at any time insist upon, plead, or
                                 in any manner whatsoever claim or take the
                                 benefit or advantage of, any stay, extension
                                 or usury law wherever enacted, now or at any
                                 time hereafter in force, that may affect the
                                 covenants or the performance of this
                                 Agreement, and Tribe (to the extent that it
                                 may lawfully do so) hereby expressly waives
                                 all benefit or advantage of any such law,
                                 and covenants that it shall not, by resort
                                 to any such law, hinder, delay or impede the
                                 execution of any power herein granted to
                                 Developer, but shall suffer and permit the
                                 execution of every such power as though no
                                 such law has been enacted.

         4.4 Covenants of Developer. The Developer covenants as follows:

                           (a)   Compliance with Legal Requirements. That, in
                                 its performance of this Agreement and all
                                 other instruments and agreements executed
                                 between the parties in connection with this
                                 Agreement, Developer shall comply in all
                                 material respects with all Legal
                                 Requirements that are material to its
                                 performance under this Agreement.

                           (b)   Defense of Third-Party Disputes. That, in
                                 the event any Third-Party Dispute is brought
                                 against Tribe prior to the Commencement Date
                                 in at least one of the respects specified
                                 below (a "Qualifying Third-Party Dispute"),
                                 Developer shall pay, as a Development
                                 Advance, all of Tribe's legal fees and
                                 expenses reasonably and necessarily incurred
                                 (by counsel selected by Tribe and reasonably
                                 approved by Developer and pursuant to a fee
                                 arrangement approved by Developer, or, in
                                 the alternative, Developer shall have the
                                 right to assume the defense of any such
                                 Qualifying Third-Party Dispute with counsel
                                 selected by Developer and reasonably
                                 satisfactory to Tribe) in defense of or
                                 otherwise in connection with such Qualifying
                                 Third-Party Dispute. If the Loan proceeds are
                                 insufficient to repay Developer such
                                 Development Advance, repayment shall be made
                                 by Tribe in accordance with Section 2.11 (d)
                                 hereof. A Qualifying Third-Party Dispute
                                 shall be a Third-Party Dispute which
                                 involves any of the following: (i) a claim
                                 against the Developer or the Lender; (ii) a
                                 claim challenging the validity of this
                                 Agreement; (iii) a claim challenging the
                                 security interest of the Developer or the
                                 Lender in or to any of the Collateral or
                                 asserting any interest in or to the
                                 Collateral that is senior to or pari passu
                                 with the interest therein or thereto of the
                                 Developer or the Lender; (iv) a claim
                                 challenging the right of Tribe to develop
                                 and open or operate the Project; or (v) a
                                 claim challenging the Credit Enhancement
                                 Fee, any Development Advances, the Buy-Out
                                 Fee or the Loan, or the obligations of Tribe
                                 to make payments with respect thereto or the
                                 right of Developer or Lender to receive any
                                 such payment. Developer's obligation to make
                                 any payment pursuant to this Section 4.4 (b)
                                 shall terminate 60 days after the
                                 Commencement Date and shall not affect in
                                 any respect its rights or the obligations of
                                 Tribe pursuant to Section 4.5.

                                     Page 25
<PAGE>

         4.5 Hold Harmless. To the fullest extent permitted by law, the Tribe
and any Affiliate shall fully protect, reimburse, indemnify, defend and hold
harmless Developer and its respective members, partners, affiliates, officers,
directors, agents, sureties, servants and employees and successors and assigns
(hereinafter collectively "Indemnitees") for, from and against any and all
liabilities, claims, damages, demands, losses, costs or expenses (including,
without limitation, reasonable attorneys' fees for counsel of Developer's
choosing), arising out of or resulting from, either directly or indirectly, the
performance of this Agreement, or any Third Party Dispute, regardless of whether
or not arising from the negligence or any other act or omission of the
Developer, provided that the foregoing indemnity will not, as to any indemnified
person, apply to losses, claims, damages, liabilities or related expenses, to
the extent they are found by a final, non-appealable judgment of a court to
arise from the willful misconduct or gross negligence of such indemnified
person. The reasonable cost of defending a Third Party Dispute and any
liability, damages, demands, losses, costs or expenses incurred by Developer or
Tribe under this Section shall not be an Operating Expense and shall be paid by
Tribe from its share of Net Revenues when incurred.

                                    ARTICLE V
                    EVENTS OF DEFAULT AND DISPUTE RESOLUTION

         5.1 Events of Default. Each of the following events, or any Event of
Default in the Security Agreement or the Financing Documents, shall be an event
of default under this Agreement upon the giving of written notice by the party
claiming default and the continuation of such event for five (5) business days,
unless waived by the party claiming default:

                           (a)   Tribe fails to pay when due any installment
                                 of principal or interest on the Development
                                 Advances or the Loan as required by this
                                 Agreement or the Financing Documents or any
                                 installment of the Credit Enhancement Fee or
                                 the Buy-Out Fee as defined in Section 6.9 or
                                 to make any indemnity payment required by
                                 Section 4.5;

                           (b)   Tribe shall breach any of its other
                                 obligations hereunder (including without
                                 limitation, those set forth in Section 4.3
                                 hereof) or under the Security Agreement or
                                 the Financing Documents;

                           (c)   Developer fails to make any Development
                                 Advance when due as required by this
                                 Agreement, provided that Developer shall
                                 have received a Note duly executed by Tribe
                                 evidencing such Development Advance;

                                    Page 26
<PAGE>

                           (d)   Any representation or warranty that Tribe or
                                 Developer has made under this Agreement
                                 shall prove to have been untrue when made;

                           (e)   Any proceeding, judgment or order shall be
                                 instituted or entered, as applicable,
                                 against Tribe, which materially adversely
                                 impairs the ability of Tribe to perform any
                                 one of its obligations under this Agreement,
                                 the Security Agreement or the Financing
                                 Documents;

                           (f)   Tribe or any Affiliate develops or operates
                                 any casino or Gaming facility on its own or
                                 in conjunction with any third-party during
                                 the Credit Enhancement Term;

                           (g)   An event of default shall have occurred
                                 under any Financing Document evidencing the
                                 Loan; or

                           (h)   Developer places games or gaming devices or
                                 provides services related to such placement
                                 in the Preference Area during the Credit
                                 Enhancement Term other than upon terms
                                 contemplated in this Agreement.

         5.2 Rights Upon Default.

                           (a)   In an Event of Default by Tribe, Developer
                                 or the Lender may cease making Development
                                 Advances and declare all amounts outstanding
                                 thereunder immediately due and payable, and
                                 the same shall thereupon be immediately due
                                 and payable, without presentment or other
                                 notice or demand other than written notice
                                 of the breach.

                           (b)   In an Event of Default by Tribe, Developer
                                 or the Lender, may exercise or enforce any
                                 and all rights and remedies available to
                                 them under any of the Financing Documents or
                                 otherwise;

                           (c)   In an Event of Default by either party, the
                                 other party may exercise or enforce any and
                                 all other rights or remedies available by
                                 law or agreement against the other party,
                                 including but not limited to this Agreement.

                                    Page 27
<PAGE>

         5.3 Waiver of Sovereign Immunity. Tribe waives its sovereign immunity
from suit in Federal District Court in the Northern District of California, and
all appellate courts related thereto, or in the event said court lacks subject
matter jurisdiction, in the Superior Court of California for the County of
Sonoma, and all appellate courts related thereto. This waiver is provided for
the sole and limited purpose of enforcing Tribe's obligations to Developer under
this Agreement, Security Agreement, and the Financing Documents, provided
further, that Tribe's waiver shall not be construed to permit recovery against
any of Tribe's assets, other than (i) the Net Revenues, (ii) the Collateral, and
(iii) the gross revenues from any other Gaming activity conducted by Tribe or
any Affiliate (whether or not Developer is involved) after prizes and payouts
and other usual deductions (including deductions for allocation of shared
jackpots) to reach the "win" as referred to by accountants familiar with the
gaming industry, provided that any recovery permitted hereunder shall be
subordinate to Tribe's Draw each month. Nothing contained in this limited waiver
shall be construed to confer any benefit, tangible or intangible, on any person
or entity not a party to this Agreement or as a waiver with respect to any such
third person or entity, and the presence of any such third person or entity as a
party to any proceeding shall constitute a revocation and rescission of the
waiver of sovereign immunity granted herein with respect only to such third
party or entity.

         5.4 Waiver of Exhaustion of Tribal Remedies. Tribe hereby waives any
requirement of exhaustion of tribal remedies. Without in any way limiting the
generality of the foregoing, Tribe expressly authorizes any governmental
authorities who have the right and duty under applicable law to take any action
authorized or ordered by any court, to take such action, including, without
limitation, repossessing any cash, property and equipment subject to a security
interest or otherwise giving effect to any judgment entered; provided, however,
that in no instance shall any enforcement of any kind whatsoever be allowed
against any assets of Tribe other than the limited assets specified in Section
5.3, or against any real property.

                                   ARTICLE VI
                                 MISCELLANEOUS

         6.1 No Waiver: Remedies Cumulative. No failure on the part of the Tribe
or Developer to exercise and no delay in exercising any right, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The remedies provided herein are cumulative and not exclusive of
any remedies provided by law or in equity or by statute.

         6.2 Notice. Notices permitted or required to be given hereunder shall
be deemed sufficient if given by facsimile or by nationally recognized overnight
courier or by registered or certified mail, postage prepaid, return receipt
requested, addressed to the respective addresses of the parties or at such other
addresses as the respective parties may designate by like notice from time to
time. Notices so given shall be effective upon the earlier of (a) receipt by the
party to which notice is given, or (b) on the third (3rd) business day following
the date such notice was posted if by mail, or the first (1st) business day
following the date such notice was posted if by overnight courier. Any notice
given by facsimile pursuant to this Section shall be deemed received by the
receiving party if electronic confirmation of delivery is received by the
sending party during normal business hours, otherwise notice shall be deemed
given on the next following business day. Any notices to the Developer shall be
addressed to:

                                     Page 28
<PAGE>

                                 DRY CREEK CASINO, LLC
                                 c/o Nevada Gold & Casinos, Inc.
                                 3040 Post Oak Boulevard
                                 Suite 675
                                 Houston, Texas 77056
                                 Facsimile: 713/621-6919
                                 Attention: H. Thomas Winn

                                 and

                                 Gene A. Keluche
                                 4620 Bradford Heights
                                 Colorado Springs, CO 80906
                                 Facsimile: 719/527-1649

with copies to:                  Robert G. Berry
                                 3701 Fairview Rd
                                 Reno, NV 89511
                                 Facsimile: 775/853-3981

                                 Philip C. Tower, Esq.
                                 30 East Glendale Avenue
                                 Phoenix, AZ 85020
                                 Facsimile: 602/870-2946

                                 Thomas Pritchard, Esq.
                                 Brewer & Pritchard
                                 3 Riverway
                                 Suite 1800
                                 Houston, Texas 77056
                                 Facsimile: 713/659-5302

                                 Mark R. Moskowitz, Esq.
                                 Greenberg Traurig, LLP
                                 2450 Colorado Avenue
                                 Suite 400 E
                                 Santa Monica, California 90404
                                 Facsimile: 310/586-7800

Any notices to Tribe shall be addressed to:

                                     Page 29
<PAGE>

                                 Dry Creek Rancheria Band of Pomo Indians
                                 498 Moore Lane, #B,
                                 Healdsburg, California 95448
                                 Attn: Chairperson

with copies to:                  Jerome L. Levine, Esq.
                                 Holland & Knight LLP
                                 633 West Fifth Street, 21st Floor
                                 Los Angeles, California 90071-2040
                                 Facsimile: 213/896-2450

         6.3 Amendments. No amendment, modification or waiver of any provision
hereof, and no consent to any departure by a party therefrom, shall in any event
be effective unless the same shall be in writing and signed by the other party,
and then such amendment, modification, waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Neither this
Agreement nor any provision hereof may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against whom enforcement of the change, waiver, discharge or termination is
sought.

         6.4 Reliance. All covenants, agreements, representations and warranties
made herein by a party shall, notwithstanding any investigation by the other
party, be deemed to be material to and to have been relied upon by the other
party and shall survive the execution and delivery of this Agreement.

         6.5 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

         6.6 Relationship; No Management. The parties are not and shall not by
reason of any provision of this Agreement be deemed to be joint venturers with
or partners or agents of one another. Other than project development advice
provided by Developer, their relationship is solely that of Tribe and Developer.
Notwithstanding anything expressed or implied to the contrary, Developer shall
have no rights whatsoever to plan, organize, direct, coordinate, control,
manage, or participate in any way in the operations of Tribe's gaming facility.
After the Commencement Date, neither the Developer nor its representatives or
agents will maintain any ongoing physical presence at the Project. The parties
shall submit this Agreement to the NIGC for review and determination that it is
not a "management contract" under IGRA. If the NIGC finds that this Agreement
does constitute a management contract, then the parties shall immediately take
all necessary steps to modify the Agreement in a way that preserves the economic
benefits of the transaction without constituting a management contract.

                                     Page 30
<PAGE>

         6.7 Governing Law. This Agreement shall be governed by, and construed
in accordance with, applicable federal law and the substantive law of the State
of California (including the Compact). Whenever possible, each provision hereof
and any other statement, instrument or transaction contemplated hereby or
thereby or relating hereto or thereto shall be interpreted in such manner as to
be effective and valid under such applicable law. But, if any provision of this
Agreement or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or thereto shall be held to be prohibited or
invalid under such applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions hereof or any other statement,
instrument or transaction contemplated hereby or thereby or relating hereto or
thereto. The parties shall endeavor in good-faith negotiations to replace any
invalid, illegal or unenforceable provisions with a valid provision the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provision.

         6.8 Recommencement of Operations. If Gaming, or Gaming construction and
development on the Land is prohibited by Legal Requirements, or is otherwise
impossible or impractical, Developer shall have the option to terminate or
continue its interest in this Agreement and to commence or recommence the
construction and development, subject to the approval of the Board if, at some
point during the Credit Enhancement Term, such commencement or recommencement
shall be legally and commercially feasible (the "Recommencement").

                  6.8.1    Repair or Replacement If the Facility is damaged,
                           destroyed or condemned so that continued development
                           and construction or Gaming cannot be or can no longer
                           be continued at the Facility, the Facility shall be
                           reconstructed if the insurance or condemnation
                           proceeds are sufficient to restore or replace the
                           Facility to a condition at least comparable to that
                           before the casualty occurred. If the insurance
                           proceeds or condemnation awards are insufficient to
                           reconstruct the Facility to such condition, Developer
                           may, upon the approval of the Board, supply such
                           additional funds as are necessary to reconstruct the
                           Facility to such condition and such funds shall, with
                           the prior consent of the Tribe and the United States,
                           as appropriate, constitute a loan to the Tribe,
                           secured by the revenues from the Project and
                           repayable upon such terms as may be agreed upon by
                           the Tribe and Developer. If the insurance proceeds
                           are not sufficient and are not used to repair the
                           Facility, the Tribe and Developer shall jointly
                           adjust and settle any and all claims for such
                           insurance proceeds or condemnation awards, and such
                           proceeds or award shall be applied first, to the
                           amounts due under the Note (including principal and
                           interest); second, to any accrued Credit Enhancement
                           Fees, or any other loans; and third, any surplus
                           shall be distributed to the Tribe.

                  6.8.2    Other Business Purposes. In the event of
                           Recommencement, Developer may propose that the Tribe
                           should alter the intended use of the Facility for
                           other purposes included in the Project, provided that
                           no such plan shall be implemented unless the Board
                           has approved such purposes. For any purpose other
                           than Gaming, Developer shall obtain all approvals
                           necessary under applicable law.

                                    Page 31
<PAGE>

                  6.8.3    Tolling of the Credit Enhancement Term. If,
                           subsequent to the Commencement Date, operation of the
                           Project ceases with respect to 20% or more of the
                           Project casino, for any reason not solely
                           attributable to Developer, including but not limited
                           to a loss or suspension of the gaming facility's
                           license or any casualty loss, the period of cessation
                           shall not be deemed to have been part of the Credit
                           Enhancement Term and the date of expiration of the
                           Credit Enhancement Term shall be extended by the
                           number of days of such cessation period. Any
                           reasonable payments made to any third party to
                           eliminate rights acquired in the Land, the Facility
                           or the Project during the period of cessation shall
                           not constitute Operating Expenses of the Project, but
                           shall be the sole expense of the Tribe.

         6.9 Buy-Out Option.

         a. Following the end of the second full year of the Credit Enhancement
Term, or at any time in the event of a final judgement or good faith settlement
in any action based on a Third-Party Dispute pursuant to which Tribe is required
to grant any third party any Net Revenue participation rights in any gaming
operation on the Reservation, Tribe may terminate this Agreement with Developer,
or it shall be deemed to do so as provided in Section 2.3 ("Buy-Out Option"), by
paying, and it shall be obligated to pay (1) all amounts outstanding with
respect to the Financing, including amounts owed to the Lender with respect to
the Loan and the outstanding balance owing by Tribe to Developer under this
Agreement, including outstanding Development Advances and accrued interest, and
(2) an amount equal to the "Base Price" as defined below, adjusted, if at all,
as set forth in subparagraph d (the "Buy-Out Fee"). The Base Price shall be
determined by multiplying the average monthly Credit Enhancement Fee earned
during the 12-month period immediately preceding the month in which the Buy-Out
Option is exercised, adjusted as set forth in subparagraph d, below, by the
number of months (including partial months) remaining in the Credit Enhancement
Term ("Month Multiplier").

         b. In the event the Buy-Out Option is exercised prior to the
Commencement Date, and the Tribe engages in gaming within six years after the
Buy-Out Option is exercised, the Buy-Out Fee shall be determined and paid from
the date such gaming commences, based on the Credit Enhancement Fee that would
have been payable if the Buy-Out Option had not been exercised, subject to the
adjustments provided below in this subparagraph b and in subparagraph c, and
continuing to the end of the second full year of operation and the recomputation
of the Base Fee in accordance with subparagraph c, provided that in the event
the amount of the Financing actually funded is less than $27,500,000 due to (i)
a refusal of Lender to fund the Loan solely as a result of any failure or breach
of Developer, or any other reason not under Tribe's control, that is not cured
by Developer within 30 days after written notice to Developer, or (ii) the
development and construction of the Project being permanently enjoined as a
result of a court order arising from a Third-Party Dispute that is final and
non-appealable (the "Cessation Order"), and all amounts outstanding with respect
to the Financing, including amounts owed to the Lender with respect to the Loan
and the outstanding balance owing by Tribe to Developer under this Agreement,
including outstanding Development Advances and accrued interest, have been paid
in full no later than twelve (12) months following the entry of the Cessation
Order, then in any such event the Credit Enhancement Fee percentage (20%) shall
be reduced proportionally based on the ratio of the Financing actually funded to
$27,500,000. For example, if the amount of the Financing that is actually funded
prior to a Cessation Order is $13,750,000, the Credit Enhancement Fee percentage
of 20% would be reduced by one-half to 10%. Nothing in this Section shall be
construed as granting Developer any additional rights in the event this
Agreement is terminated pursuant to Section 2.3 hereof.

                                     Page 32
<PAGE>

         c. In the event the Buy-Out Option is exercised prior to the end of the
second full year of operations during the Credit Enhancement Term, the Buy-Out
Fee (subject to the adjustment provided in subparagraph d below) shall be
computed following the completion of the second full year of operations of the
Project or any successor to the Project to reflect the increased amount, if any,
which would have been due if the Base Fee had been calculated on the basis of
operating results for the Project or any successor Project during said second
year.

         d. Notwithstanding anything in this Section 6.9 to the contrary, if the
amount of the Financing that is actually funded exceeds $5,500,000, the Credit
Enhancement Fee shall be increased by multiplying it by 100% plus any percentage
by which the Gross Revenues for the immediately preceding 12-month period ("Base
Period") have increased when compared to the 12-month period immediately
preceding the Base Period (which total percentage multiplier shall be referred
to as the "Adjustment Multiplier"), provided that if the Buy-Out Option is
exercised before the end of the second full year of the Credit Enhancement Term,
the Adjustment Multiplier shall be deemed to be 120%, and provided further that
the Adjustment Multiplier shall not exceed 120% under any circumstances.

         e. The Buy-Out Fee shall be paid in equal monthly installments of
principal plus interest at the rate of twelve percent (12%) per annum, on the
15th day of each month, over a period of months equal to the Month Multiplier,
shall be evidenced by a promissory note in the form of Exhibit "G" hereto and,
subject to any enforceable Third Party Liens, shall be secured to the same
extent as the Note. Tribe may prepay this amount at any time without penalty. In
no event shall any payment on account of the Buy-Out Fee exceed fifty percent
(50%) of Available Cash Flow. If such limitation is applicable, any payment
actually made for such month shall first be treated as a payment of interest,
with any balance applied against the principal payment which is otherwise due
and owing, and with any unpaid interest treated as an addition to principal, as
of the payment date. Any amounts which are not paid when otherwise due as a
result of this Available Cash Flow limitation shall be paid as soon as possible
without violating such limitation, if and to the extent that 50% of Available
Cash Flow for any subsequent month exceeds the amount payable therefor on
account of the Buy-Out Fee.

                                     Page 33
<PAGE>

         6.10 No Third-Party Beneficiaries. Except as provided in Section 4.5
with respect to indemnification of Indemnitees hereunder, nothing in this
Agreement shall confer any rights or remedies upon any person other than the
parties hereto and their respective heirs, legal representatives, successors and
permitted assigns.

         IN WITNESS WHEREOF, Developer and Tribe have executed this Agreement as
of this 1st day of September, 2001, effective as of the date first written above
upon ratification by the Tribe's Tribal Council.

DRY CREEK CASINO, LLC., a                   DRY CREEK RANCHERIA BAND OF
Texas limited liability company             POMO INDIANS, a federally-recognized
                                            Indian tribe
By: Wintun Lodge, LLC, Member

   By: /s/ Gene A. Keluche                  By: /s/ Michael Racho
      ---------------------------              ----------------------------
           Gene A. Keluche                        Michael Racho, Chairman
           Manager

By: Nevada Gold & Casinos, Inc., Member

   By: /s/ H. Thomas Winn
      ---------------------------
         H. Thomas Winn
         President

By: Jenkins Entertainment, LLC, Member

   By: /s/ Jon T. Jenkins
      ---------------------------
         Jon T. Jenkins
         Manager

                                     Page 34
<PAGE>

                                   EXHIBIT A

Dry Creek Temporary Casino - Preliminary Estimated Development Costs

<PAGE>

                           Dry Creek Temporary Casino
               Preliminary Conceptual Budget of Development Costs

Tribal Revision #1

       1 Site Construction
       2 Permanent Casino Construction
       3 Site Architecture & Engineering
       4 Casino Architecture & Engineering, Temp Casino
       5 Additional Development Costs
       6 Temporary Casino Construction
       7 FF&E, Special Equipment & Services
       8 Pre-Opening Expense
       9 Working Capital & Opening Deficit
      10 Project Contingency
         Total for Temporary Casino
         Total Budget

<PAGE>

          1/10/02

   Phase 1
        3,417,597
                0
          770,000
          632,500
        2,792,986
        4,059,287
           76,500
        2,100,000
          400,000
          750,000
       14,998,869
       15,000,000

<PAGE>

                           Dry Creek Temporary Casino
                    Preliminary Estimated Development Costs

Site Construction                                                    $7,405,030

Site Architecture & Engineering                                         640,000

Casino Architecture & Engineering, Temp Casino                          697,000

Additional Development Costs                                          2,164,055

Tribal Admin & Relocation                                             1,500,000

Legal Contingency Fund                                                  350,000

Temporary Casino Construction                                         6,879,274

Parking Allowance                                                     2,000,000

FF&E, Special Equipment & Services                                    1,281,061

Pre-Opening Expense                                                   2,400,000

Working Capital & Opening Deficit                                       850,000

Project Contingency                                                   1,260,000
                                                                    -----------

                            Total Estimated Development Costs        27,426,420
                                                                    ===========

                                                 Total Budget       $27,500,000
                                                                    ===========
<PAGE>

                                   EXHIBIT B

Note in the face amount of $1,500,000 made by Dry Creek Rancheria Band of Pomo
Indians in favor of Dry Creek Casino, LLC, dated August 26, 2001

<PAGE>

                                      NOTE

              THIS NOTE IS SECURED BY PERSONAL PROPERTY COLLATERAL

$1,500,000.00                                          Sonoma County, California
                                                                 August 26, 2001

         This Note is hereby given as of the date written above by DRY CREEK
RANCHERIA BAND OF POMO INDIANS, a federally-recognized Indian tribe with an
address at 498 Moore Lane, #B, Healdsburg, Sonoma County, State of California
95448 ("Maker"), in favor of DRY CREEK CASINO, LLC, which has an address at c/o
Nevada Gold & Casinos, Inc., 3040 Post Oak Boulevard, Suite 675, Houston, Texas
77056 ("Lender").

                                    Recitals

         A. Pursuant to that certain Development and Loan Agreement dated as of
August 26, 2001 ("Loan Agreement") by and between Lender and Maker, Lender will
make certain Development Advances (as such term is defined in the Loan
Agreement) to Maker from time to time, to be evidenced by this Note; and

         B. Pursuant to that certain Security Agreement dated as of the date
hereof ("Security Agreement" and together with this Note and the Loan Agreement,
the "Loan Documents"), this Note shall be secured by the Collateral (as such
term is defined in the Security Agreement), which security interest shall be a
first priority lien on the Collateral (as such term is defined in the Security
Agreement), subject only to enforceable Third Party Liens, as set forth in the
Loan Agreement.

                                  Terms of Note

         NOW THEREFORE, Maker hereby promises to pay to the order of Lender, or
the holder-in-due-course of this Note, ("Holder") the principal sum of One
Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), or so much
thereof as may be advanced from time to time, and interest from the date hereof
on the balance of principal from time to time outstanding, in United States
currency, at 12% per annum, in accordance with the terms and conditions set
forth below.

         Payment of this Note is governed by the Loan Agreement (including
without limitation, Article II thereof), the terms of which are incorporated
herein by express reference as if fully set forth herein. Capitalized terms used
herein without a definition shall have the meanings ascribed to them in the Loan
Agreement.

         All payments on this Note shall be applied first to the payment of
accrued and unpaid interest, and the remainder thereon shall be applied to the
reduction of the unpaid principal balance of this Note. At any time when the
unpaid principal balance of this Note is equal to zero, the Holder shall cancel
this Note and redeliver it to the Maker.

<PAGE>

         All payments hereunder shall be made in lawful money of the United
States of America and shall be hand delivered or mailed by prepaid registered or
certified first class mail to the Holder at such place and in such manner as the
Holder shall specify by written notice to the Maker.

         If any payment under this Note is not made when due, the Maker, and
every entity or person who assumes the obligations of this Note, promises to pay
to the Holder all damages and costs of collection, including, without
limitation, reasonable attorney's fees, whether or not suit is filed hereon.

         Notwithstanding any provision to the contrary contained in this Note,
the Maker shall not be required to pay, and the Holder shall not be permitted to
collect, any amount of interest in excess of the maximum amount of interest
permitted by applicable law ("Excess Interest"). If any Excess Interest is
provided for or determined by a court of competent jurisdiction to have been
provided for in this Note, then in such event: (1) the provisions of this
paragraph shall govern and control; (2) the Maker shall not be obligated to pay
any Excess Interest; (3) any Excess Interest that the Holder may have received
hereunder shall be, at the Holder's option, (a) applied as a credit against the
outstanding principal balance of this Note (not to exceed the maximum amount
permitted by applicable law), (b) refunded to the party which had paid such
Excess Interest, or (c) any combination of the foregoing; and (4) the interest
rate(s) provided for herein shall be automatically reduced to the maximum lawful
rate allowed from time to time under applicable law, and this Note shall be
deemed to have been, and shall be, reformed and modified to reflect such
reduction.

         The Maker waives presentment, demand, protest, notice of protest,
notice of dishonor, notice of nonpayment, and demand and notice of any kind with
respect to this Note.

         No delay or omission on the part of the Holder or any holder hereof in
exercising any rights hereunder or under any other Loan Documents shall operate
as a waiver of any such right or of any other right under the Loan Documents. A
waiver on any one occasion shall not be construed as a bar to or a waiver of any
such right and/or remedy on any future occasion.

         Maker understands, acknowledges and agrees that Maker's obligations and
liabilities hereunder are and shall be separate and independent from, and in
addition to, those under the other Loan Documents and that Maker's obligation
and liabilities hereunder or under the Loan Agreement shall not be deemed merged
into or superseded or satisfied by foreclosure upon the Collateral (as defined
in the Security Agreement).

         Whenever in this Note reference is made to the Maker or the Holder,
such reference shall be deemed to include, as applicable, a reference to their
respective successors and assigns. The provisions of this Note shall be binding
upon and shall inure to the benefit of such successors and assigns, including,
without limitation, a receiver, trustee or debtor in possession of or for the
Maker or the Holder.

         All communications required or permitted under this Note shall be in
writing and shall be delivered in accordance with the notice provisions of the
Loan Agreement.

                                       2
<PAGE>

         This Note may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of
the Maker or Holder, but only by an agreement in writing signed by the party
against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

         This Note, made in the State of California, shall be construed and
enforced according to the laws of the State of California, and if any provision
of this Note is in conflict with the laws of the State of California or is
otherwise unenforceable for any reason, then such provision shall be deemed
separable from and shall not invalidate any other provisions of this Note.

         Maker agrees, covenants, represent and warrants that the Loan proceeds
shall be used solely as set forth in the Loan Agreement and not for personal,
family or household purposes. Maker further represents and warrants as follows:
Maker is a federally-recognized Indian tribe with full power and authority to
give this Note. This Note has been duly authorized, executed and delivered by
Maker and constitutes the valid and legally binding obligations of Maker,
enforceable in accordance with its terms against Maker. The execution and
delivery of this Note by Maker and the performance of its duties and obligations
hereunder do not result in a breach of any of the terms, conditions or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, credit agreement, note or other evidence of indebtedness, or any lease or
other agreement, or any license, permit, franchise or certificate to which Maker
is a party or by which it is bound or to which its properties are subject or
require any authorization or approval under or pursuant to any of the foregoing,
or violate any applicable laws, or require any governmental consent that Maker
has not already obtained.

         IN WITNESS WHEREOF, Maker has caused this Note to be duly executed and
delivered by its duly authorized officers as of the day first above written.

                                    DRY CREEK RANCHERIA BAND OF POMO
                                    INDIANS, a federally-recognized Indian tribe

                                    By:____________________________________

                                    Name:__________________________________

                                    Title:_________________________________

                                       3
<PAGE>

                                   EXHIBIT C

Tribal Government and Regulatory Expenses

<PAGE>

<TABLE>
  Start-up Budget                 Tribal Administration/Relocated Members/Gaming Commission                                  9/25/01
                                                        Exhibit "C"

<CAPTION>
  Relocated Members                     Budget     August  September   October  November  December  January  February    March
<S>                                   <C>        <C>         <C>      <C>        <C>       <C>      <C>       <C>      <C>
Nine Family's                           302,500   100,000     22,500    22,500    22,500    22,500   22,500    22,500   22,500
Floyd Dollar                             27,500                         10,000     2,500     2,500    2,5OO     2,500    2,500
Homer Dollar                             27,500                         10,000     2,500     2,500    2,500     2,500    2,500
Anna Lopez                              173,500                6,000   155,000     2,500     2,500    2,500     2,500    2,500
Dino Lopez                               27,500                         10,000     2,500     2,500    2,500     2,500    2,500
Tanya Lopez                              27,500                         10,000     2,500     2,500    2,500     2,500    2,500
Nadine Russ                              27,500                         10,000     2,500     2,500    2,500     2,50O    2,500
Gloria Martin                           172,500                        155,000     2,500     2,500    2,500     2,500    2,500
Karen Casillas                           27,500                         10,000     2,500      2500    2,500     2,500    2,500

      Monthly Totals                             $100,000    $28,500  $392,500   $42,500   $42,500  $42,500   $42,500  $42,500
                                                 ------------------------------------------------------------------------------

               Total                  $ 818,600
                                      =========

Tribal Administration
Staff (wages)                           101,700               11,300    11,300    11,300    11,300   11,300    11,300   11,300
Accounts Payable                         49,820               16,606    16,606    16,608        --
Payback Funds (BIA Program)             111,000               27,750    27,750    27,750    27,750       --        --       --
Past Due Professional Services           10,000               10,000                  --
*Attorney Fees (Holland & Knight)       200,000              200,000
CILS                                     40,000               10,000        --    20,000    10,000
Past Due Living Expense                  11,915               11,915
Property Taxes                           15,000                                   15,000
Phone/Communications                      4,500                  500       500       500       500      500       500      500
Travel Expense                            6,000                                    1,000     1,000    1,000     1,000    1,000
Replacement Funds (Tribal)               28,956                4,826     4,826     4,826     4,826    4,826     4,826       --
Meeting Expense                           6,300                  700       700       700       700      700       700      700
Audit Costs                               4,552                             --     4,552

      Monthly Totals                                        $293,597   $61,682  $102,236   $56,076  $18,326   $18,326  $13,500
                                                 ------------------------------------------------------------------------------

               Total                  $ 589,743
                                      =========

<CAPTION>
  Relocated Members                      April      May   June     Total Budget
<S>                                    <C>      <C>       <C>      <C>
Nine Family's                           22,500   22,500     --
Floyd Dollar                             2,500    2,500     --
Homer Dollar                             2,500    2,500     --
Anna Lopez                               2,500    2,500     --
Dino Lopez                               2,500    2,500     --
Tanya Lopez                              2,500    2,500     --
Nadine Russ                              2,500    2,500     --
Gloria Martin                            2,500    2,500     --
Karen Casillas                           2,500    2,500     --

      Monthly Totals                   $42,500  $42,500   $ --
                                      --------------------------

               Total                                                  $818,500
                                                                      ========

Tribal Administration
Staff (wages)                           11,300   11,300     --
Accounts Payable
Payback Funds (BIA Program)                 --
Past Due Professional Services
*Attorney Fees (Holland & Knight)
CILS
Past Due Living Expense
Property Taxes
Phone/Communications                       500      500
Travel Expense                           1,000
Replacement Funds (Tribal)                  --
Meeting Expense                            700      700
Audit Costs

      Monthly Totals                   $13,500  $12,500     --
                                      --------------------------

               Total                                                  $589,743
                                                                      ========

</TABLE>

<PAGE>

Start-up Budget

            Tribal Administration/Relocated Members/Gaming Commission

                                                                         9/25/01

                                   Exhibit "C"

<TABLE>
<CAPTION>
                                    Budget         August    September   October   November   December    January    February
                                    ------         ------    ---------   -------   --------   --------    -------    --------
<S>                                 <C>                    <C>        <C>       <C>        <C>         <C>         <C>
Tribal Gaming Commission
Commissioners (3)                       135,416                10,833     10,833    16,250     16,250      16,250      16,250
Secretary (1)                            20,412                                      2,916      2,916       2,916       2,916
Investigators (5)                        32,076
Compliance Agent (3)                     17,500
Auditor(1)                               12,498
Administrator(1)                          7,500
Equipment/Supplies                       85,000                                     12,142     12,142      12,142      12,142
Professional Services
Training                                 40,000                                                                        10,000
Background lnvestigations                75,000                                     10,714     10,714      10,714      10,714
Misc.                                    50,000                                                 8,333       8,333       8,333
               Monthly Totals                                  10,833     10,833    42,022     50,355      50,355      60,355
                                                             ------------------------------------------------------------------
                        Total        $  476,402
                                     ==========

         Monthly Grand Totals                     $100,000   $332,930   $465,015  $186,758   $148,931    $111,181    $121,181
                                                  ----------------------------------------------------------------------------

                 Total Budget        $1,883,645
                                     ==========

Current Funds Available
Dry Creek Casino LLC                 $  420,000              $ 90,000  $  90,000  $ 90,000

Current Expenditures
Relocated Members                                 S100,000   $ 28,500  $ 392,500  $  42,500  $  42,500    $  42,500   $  42,500
Tribal Administration                                        $293,597  $  61,682  $ 102,236  $  56,076    $  18,326   $  18,326
Gaming Commission                                                         10,833     42,022     50,355       50,355      60,355
Required C/F from Available Funds                 $320,000   $ 87,903  $(287,112) $(383,870) $(532,801)   $(643,982)  $(765,163)

<CAPTION>
                                      March       April           May
                                      -----       -----           ---
<S>           <C>                     <C>         <C>           <C>        <C>
Tribal Gaming Commission
Commissioners (3)                     16,250      16,250        16,250             --
Secretary (1)                          2,916       2,916         2,916
Investigators (5)                      2,916      14,580        14,580
Compliance Agent (3)                   2,500       7,500         7,500
Auditor(1)                             4,166       4,166         4,166
Administrator(1)                                   3,750         3,750
Equipment/Supplies                    12,142      12,142        12,142
Professional Services
Training                              15,000      15,000
Background lnvestigations             10,714      10,714        10,714
Misc.                                  8,333       8,333         8,333
               Monthly Totals         74,937      95,351         8,0351             --
                                   ------------------------------------
                        Total                                               $ 475,402
                                                                            =========

         Monthly Grand Totals        $130,937   $151,351      $135,351
                                   ------------------------------------

                 Total Budget                                        Total  $1,883,645
                                                                            =========
Current Funds Available
Dry Creek Casino LLC

Current Expenditures
Relocated Members                   $  42,500  $    42,500    $    42,500
Tribal Administration               $  13,500  $    13,500    $    12,500
Gaming Commission                      74,937       95,351         80,351
Required C/F from Available Funds   $(896,100) $(1,047,451)   $(1,182,802)

</TABLE>

* Partial payment w/ balance deferred until permanent financing.

<PAGE>

                                   EXHIBIT D

Security Agreement made by Dry Creek Rancheria Band of Pomo Indians in favor of
Dry Creek Casino, LLC, dated August 26, 2001

<PAGE>

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Agreement"), dated as of August 26,
2001, is entered into by and between DRY CREEK RANCHERIA BAND OF POMO INDIANS, a
federally-recognized Indian tribe with an address at 498 Moore Lane, #B,
Healdsburg, Sonoma County, State of California 95448 ("Debtor"), and DRY CREEK
CASINO, LLC, which has an address at c/o Nevada Gold & Casinos, Inc., 3040 Post
Oak Boulevard, Suite 675, Houston, Texas 77056 ("Secured Party"). Capitalized
terms used herein without a definition shall have the meanings ascribed to them
in that certain Development and Loan Agreement dated as of August 26, 2001
("Loan Agreement") by and between Debtor and Secured Party.

         WHEREAS, pursuant to the Loan Agreement and in connection with Debtor's
purchase of certain of the Collateral, Secured Party is and will be making the
Development Advances ("Loan") to Debtor, which Loan is evidenced by that certain
Note dated as of the date hereof ("Note" and together with the Loan Agreement
and this Agreement, the "Loan Documents"); and

         WHEREAS, it is one of the conditions precedent to Secured Party's
making of such Loan to Debtor that Debtor execute and deliver this Agreement;

         NOW, THEREFORE, in consideration of the above premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by Debtor, Debtor hereby represents, warrants and grants to and
agrees and covenants with Secured Party as follows:

                  Section 1. Grant of Security. To secure the prompt and
         complete payment, observance and performance when due (whether at
         stated maturity, by acceleration or otherwise) of all of the
         obligations ("Obligations") with respect to the Loan under the Loan
         Documents, Debtor hereby collaterally assigns and pledges to Secured
         Party, and grants to Secured Party a security interest and lien in and
         to, the Collateral.

                  Section 2. Representations and Warranties. The Debtor
         represents and warrants to Secured Party as follows:

                  (a) Name; Taxpayer ID Number. The correct and complete name of
         Debtor is set forth in the first paragraph of this Agreement, and
         Debtor does not conduct and, during the five-year period immediately
         preceding the date of this Agreement, has not conducted, business under
         any trade name or other fictitious name. The Internal Revenue Service
         taxpayer identification number, as applicable, of Debtor is 94 2422476.

                  (b) Liens. None of the Collateral is, as of the date hereof,
         subject to any Lien other than the security interest granted herein in
         favor of Secured Party and any enforceable Third Party Liens, as set
         forth in Section 2.1.2 of the Loan Agreement. No financing statement
         (other than that in favor of Secured Party) under the Uniform
         Commercial Code of any jurisdiction which names Debtor as debtor and
         covers any of the Collateral, or any other notice, has been filed and
         is still effective in any state or other

<PAGE>

         jurisdiction, and Debtor has not signed any such financing statement or
         notice, other than in connection with the Sonoma Canyon Documents and
         the Sonoma Falls Documents.

                  (c) Tribal Administrative Office. The tribal administrative
         office and principal place of business of Debtor and its books and
         records are located at the address set forth in the first paragraph of
         this Agreement.

                  (d) Places of Business. The addresses (including the
         applicable county) of the sole place of business of Debtor are set
         forth in the first paragraph of this Agreement.

                  (e) Security Interest. Subject to subsection (b) above, it is
         the intent of Debtor that this Agreement create a valid and perfected
         first-priority security interest in the Collateral, securing the
         payment of the Obligations, and all filings and other actions necessary
         or desirable to perfect such security interest under the Uniform
         Commercial Code as enacted in any relevant jurisdiction have been duly
         taken.

                  (f) No Disputes. Except as may arise as a result of subsection
         (b) above, no dispute, right of setoff, counterclaim or defenses exist
         with respect to all or any part of the Collateral.

                  (g) Loan Proceeds. Certain of the Loan proceeds shall be used
         to purchase certain Furnishings and Equipment.

                  (h) Intended Purpose. The Collateral will be not used or
         bought for personal, family or household purposes.

                  (i) Due Authorization. Debtor is a federally-recognized Indian
         tribe with full power and authority to enter into this Agreement. This
         Agreement has been duly authorized, executed and delivered by Debtor
         and constitutes the valid and legally binding agreement of Debtor,
         enforceable in accordance with its terms against Debtor. The execution
         and delivery of this Agreement by Debtor and the performance of its
         duties and obligations hereunder do not result in a breach of any of
         the terms, conditions or provisions of, or constitute a default under,
         any indenture, mortgage, deed of trust, credit agreement, note or other
         evidence of indebtedness, or any lease or other agreement, or any
         license, permit, franchise or certificate to which Debtor is a party or
         by which it is bound or to which its properties are subject or require
         any authorization or approval under or pursuant to any of the
         foregoing, or violate any Applicable Law, or require any governmental
         consent that Debtor has not already obtained.

                  Section 3. Continued Priority of Security Interest.

                  (a) Subject to the existence of any enforceable Third Party
         Liens, the security interest granted herein shall at all times be
         valid, perfected and of first priority and enforceable against Debtor
         and all other Persons, in accordance with the terms of this Agreement,
         as security for the Obligations.

                                        2
<PAGE>

                  (b) Debtor shall, at its sole cost and expense, take all
         actions that may be necessary or desirable, or that Secured Party may
         request, so as at all times to maintain the validity, perfection,
         enforceability and priority of the Security Interest in the Collateral
         in conformity with the requirements of Section 3(a), or to enable
         Secured Party to exercise or enforce its rights hereunder, including
         without limitation:

                  (1) Paying all taxes, assessments and other claims lawfully
         levied or assessed on any of the Collateral;

                  (2) Obtaining landlords', mortgages', mechanics', bailees',
         warehousemen's or processors' releases, subordinations or waivers with
         respect to any or all of the Collateral, in form and substance
         satisfactory to Secured Party; and

                  (3) Executing and delivering financing statements, pledges,
         designations, hypothecations, notices and assignments, in each case in
         form and substance satisfactory to Secured Party, relating to the
         creation, validity, perfection, priority or continuation of the
         Security Interest under the Uniform Commercial Code.

                  (c) Secured Party is hereby authorized to execute, file and
         record in all necessary and appropriate jurisdictions (as determined
         by Secured Party) one or more financing or continuation statements (or
         any other document or instrument referred to in Section 3(b)(3) above)
         in the name of Debtor and to sign Debtor's name thereto.

                  (d) The Debtor shall mark its books and records as may be
         necessary or appropriate to evidence, protect and perfect the Security
         Interest and shall cause its financial statements to reflect the
         Security Interest.

         Section 4. Covenants Regarding Collateral Generally.

                  (a) Delivery of Instruments. In the event any of the
         Collateral becomes evidenced by a promissory note, trade acceptance or
         any other instrument, Debtor will immediately thereafter deliver such
         instrument to Secured Party, appropriately endorsed to Secured Party.

                  (b) Defense of Title. The Debtor shall at all times be the
         sole owner of the Collateral and shall defend, at its sole cost and
         expense, its title in and to, and the Security Interest in, the
         Collateral against the claims and demands of all other Persons.

                                       3
<PAGE>

                  (c) Maintenance and Service of Collateral. The Debtor shall
         maintain or cause to be maintained the Collateral in good and workable
         condition and repair (and in accordance with the maintenance schedule
         and procedure recommended by the seller of the Collateral), with
         reasonable allowance for wear and tear, and shall exercise proper
         custody over the Collateral.

                  (d) Insurance. The Debtor shall at all times maintain
         insurance covering the Collateral against such insurable losses as is
         required by the Loan Agreement and the other Financing Documents and as
         is consistent with commercially reasonable and sound business practice,
         in amounts (which shall not be less than the aggregate amount of the
         Obligations) and under policies issued by Debtor's present insurers or
         other insurers reasonably acceptable to Secured Party. All premiums on
         such insurance shall be paid by Debtor and certified copies of the
         policies, or other evidence of insurance acceptable to Secured Party,
         shall be provided to Secured Party promptly upon Secured Party's
         request. The Debtor shall not use or permit the Collateral to be used
         unlawfully or outside of any insurance coverage. All insurance policies
         required under this Section shall contain loss payable clauses on
         standard loss payee forms or other forms satisfactory to Secured Party,
         naming Secured Party as loss payee, and providing that:

                  (1) All proceeds thereunder shall be payable directly to
         Secured Party;

                  (2) No such insurance shall be affected by any act or neglect
         of the insured or owner of the property described in such policy;

                  (3) Such policies and loss payable clauses may not be
         canceled, amended or terminated with respect to Secured Party unless at
         least thirty days' prior written notice is given to Secured Party; and

                  (4) There shall be no recourse against Secured Party for
         payment of premiums or other amounts with respect thereto.

  Any proceeds of insurance referred to in this Section which are paid to
  Secured Party shall be applied to the payment or prepayment of the Obligations
  in accordance with Section 9 hereof.

                  (e) Location of Office. The Debtor's tribal administrative
         office, principal place of business, and its books and records relating
         to the Collateral shall continue to be kept at the address set forth in
         the first paragraph of this Agreement and Debtor will not change the
         location of such office and place of business or such books and records
         without giving Secured party forty five (45) days' prior written
         notice thereof.

                  (f) Change of Name, Structure, Etc. Without giving Secured
         Party sixty day's prior written notice, Debtor shall not (i) change its
         name, identity or structure or (ii) conduct business under any trade
         name or other fictitious name.

                  (g) Inspection. Secured Party (by any of its officers,
         employees, agents or representatives) shall have the right, to the
         extent that the exercise of such right shall be

                                       4
<PAGE>

         within the control of Debtor, upon 24 hours' prior written notice and
         during normal business hours, to inspect the Collateral; all records
         and files relating thereto and the premises upon which any of the
         Collateral is located.

                  (h) Merger, Consolidation and Sale of Assets. The Debtor shall
         not merge or consolidate with any other Person or sell, lease or
         transfer or otherwise dispose of the Collateral or all or a substantial
         portion of its assets to any Person other than in the ordinary course
         of business.

                  Section 5. Secured Party Appointed Attorney-in-Fact. The
         Debtor hereby irrevocably appoints Secured Party Debtor's
         attorney-in-fact, with full authority in the place and stead of Debtor
         and in the name of Debtor or otherwise, from time to time upon the
         occurrence and during the continuance of an Event of Default in Secured
         Party's discretion to take any action and to execute any instrument or
         document which Secured Party may deem necessary or advisable to
         accomplish the purposes of this Agreement or to exercise any rights and
         remedies Secured Party may have under this Agreement or Applicable Law,
         including, without limitation: (i) to obtain and adjust insurance
         required to be maintained pursuant to Section 4(d) hereof; (ii) to ask,
         demand, collect, sue for, recover, compromise, receive and give
         acquittance and receipts for moneys due and to become due in respect of
         the Collateral; and (iii) to file any claims or take any action or
         institute any proceedings which Secured Party may deem necessary or
         desirable for the foreclosure of the Collateral or otherwise to enforce
         the rights of Secured Party with respect to the Collateral. The
         power-of-attorney granted hereby shall be irrevocable and coupled with
         an interest.

                  Section 6. Secured Party May Perform. If Debtor fails to
         perform any agreement or covenant contained herein, Secured Party may,
         without notice to Debtor, itself perform, or cause the performance of,
         such agreement or covenant, and the expenses of Secured Party incurred
         in connection therewith shall be payable by Debtor under Section 11
         hereof.

                  Section 7. Secured Party's Duties. The powers conferred on
         Secured Party hereunder are solely to protect its interest in the
         Collateral and shall not impose any duty upon Secured Party to exercise
         any such powers. Except for the safe custody of the Collateral in its
         possession and the accounting for moneys actually received by it
         hereunder, Secured Party shall have no duty as to the Collateral.
         Secured Party shall be deemed to have exercised reasonable care in the
         custody of the Collateral in its possession if the Collateral is
         accorded treatment substantially equal to that which Secured Party
         accords its own property (it being understood that Secured Party shall
         be under no obligation to take any necessary steps to preserve rights
         against prior parties or any other rights pertaining to the Collateral,
         but may do so at its option, and all expenses incurred in connection
         therewith shall be for the sole account of Debtor and shall be added to
         the Obligations).

                  Section 8. Remedies. Secured Party may take any or all of the
         following actions upon the occurrence of an Event of Default hereunder.

                                       5
<PAGE>

                  (a) Acceleration.

                  (1) Automatic. Upon an Event of Default (or if the Event of
         Default is other than the failure to pay money, upon Debtor's failure
         to commence and diligently prosecute the cure of the Event of Default
         within 10 days after written notice from Secured Party), then all of
         the Obligations shall be due and payable without presentment, demand,
         protest, or other notice of any kind, all of which are expressly
         waived, anything in this Agreement or any other agreement evidencing or
         securing the Obligations to the contrary notwithstanding.

                  (2) Optional. If any other Event of Default shall have
         occurred and be continuing, Secured Party may declare all of the
         Obligations to be forthwith due and payable, whereupon the same shall
         immediately become due and payable without presentment, demand, protest
         or other notice of any kind, all of which are expressly waived,
         anything in this Agreement or any other agreement evidencing or
         securing any Obligations to the contrary notwithstanding.

                  (b) Possession.

                  (1) Entry. Secured Party may enter upon any premises on which
         the Collateral may be located and, without resistance or interference
         by Debtor, take physical possession thereof and maintain such
         possession on such premises or move the same or any part thereof to
         such other place or places as Secured Party shall choose, without being
         liable to Debtor on account of any loss, damage or depreciation that
         may occur as a result thereof, other than for actions that were not
         taken in good faith and so long as Secured Party acts in a commercially
         reasonable manner.

                  (2) Assembly. The Debtor shall, upon request of and without
         charge to Secured Party, assemble the Collateral and maintain or
         deliver it into the possession of Secured Party or any agent or
         representative of Secured Party at such place or places as Secured
         Party may designate and as are reasonably convenient to both Secured
         Party and Debtor.

                  (3) Warehousing. Secured Party may, at the expense of Debtor,
         cause the Collateral to be placed in a public or field warehouse, and
         Secured Party shall not be liable to Debtor on account of any loss,
         damage or depreciation that may occur as a result thereof, other than
         for actions that were not taken in good faith and so long as Secured
         Party acts in a commercially reasonable manner.

                  (c) Use of Premises and Patents. Secured Party may without
         notice, demand or other process, and without payment of any rent or any
         other charge enter any of Debtor's premises and, without breach of the
         peace, until Secured Party completes the enforcement of its rights in
         the Collateral and remain on such premises to prepare the Collateral
         for disposition and disposing thereof.

                                       6
<PAGE>

                  (d) Cash Collateral. Secured Party may apply any cash
         Collateral to the payment of the Obligations in any order in which
         Secured Party may elect or use such cash in connection with the
         exercise of any of its other rights hereunder.

                  (e) Rights as a Secured Creditor. Secured Party may exercise
         all of the rights and remedies of a secured party under the Uniform
         Commercial Code and under any other Applicable Law, including, without
         limitation, the right, without notice except as specified below and
         with or without taking possession thereof, to sell the Collateral or
         any part thereof in one or more public or private sales at any location
         chosen by Secured Party, for cash, on credit or for future delivery,
         and at such price or prices and upon such other terms as Secured Party
         may deem commercially reasonable. The Debtor agrees that, to the extent
         notice of sale shall be required by law, at least ten (10) days notice
         to Debtor of the time and place of any public sale or the time after
         which any private sale is to be made shall constitute reasonable
         notification. Secured Party shall not be obligated to make any sale of
         Collateral regardless of notice of sale having been given. Secured
         Party may adjourn any public or private sale from time to time by
         announcement at the time and place fixed therefor, and such sale may,
         without further notice, be made at the time and place to which it was
         so adjourned.

                  (f) Waiver of Marshaling. The Debtor hereby waives any right
         to require any marshaling of assets and any similar right.

                  (g) Appointment of Receiver. Secured Party shall be entitled
         to the appointment of a receiver, to take possession of all or any
         portion of the Collateral and to exercise such power as the court shall
         confer upon such receiver.

                  Section 9. Application of Proceeds. All proceeds from each
         sale of, or other realization upon, all or any part of the Collateral
         following an Event of Default shall be applied or paid over as follows:

                  (a) First, to the payment of all costs and expenses incurred
         in connection with such sale or other realization, including attorney's
         fees and disbursements;

                  (b) Second, to the payment of the interest due upon any of the
         Obligations in any order which Secured Party may elect;

                  (c) Third, to the payment of the principal due upon any of the
         Obligations in any order which Secured Party may elect; and

                  (d) Fourth, the balance (if any) of such proceeds shall be
         paid to Debtor or to whomsoever may be legally entitled thereto.

                  Section 10. Rights Cumulative. The rights and remedies of
         Secured Party under this Agreement and the Note (collectively, the
         "Loan Documents") shall be cumulative and not exclusive of any rights
         or remedies which it would otherwise have, including, but not limited
         to, those rights afforded by the Uniform Commercial Code and

                                       7
<PAGE>

         other Applicable Laws. In exercising its rights and remedies, Secured
         Party may be selective and no failure or delay by Secured Party in
         exercising any right shall operate as a waiver of it, nor shall any
         single or partial exercise of any power or right preclude its other or
         further exercise or the exercise of any other power or right. Any and
         all periods of notice, grace and cure contained herein and in the other
         Loan Documents shall run concurrently, and not consecutively.

                  Section 11. Expenses. The Debtor will pay, on demand, all
         out-of-pocket expenses incurred by Secured Party in connection with:
         (a) the collection or enforcement of the Obligations including fees and
         disbursements of counsel to Secured Party; and (b) the exercise by
         Secured Party of any right or remedy granted to it under this
         Agreement.

                  Section 12. Amendments, Etc. No amendment or waiver of any
         provision of this Agreement nor consent to any departure by Debtor
         herefrom shall in any event be effective unless the same shall be in
         writing and signed by the parties hereto, and then such waiver or
         consent shall be effective only in the specific instance and for the
         specific purpose for which it is given.

                  Section 13. Notices. Except as otherwise provided herein, all
         notices and communications required or permitted under this Agreement
         shall be in writing and shall be hand delivered, sent by facsimile
         transmission or nationally recognized courier service, or mailed, by
         prepaid registered or certified first class mail, return receipt
         requested, properly addressed to the respective parties, at the
         addresses set forth in the first paragraph of this Agreement (or at
         such other addresses, if any, set forth in the most recent notice of
         address change provided by the addressee party). All such notices and
         communications shall be deemed received when actually received (or
         delivery is refused) by the addressee party on a Business Day.

                  Section 14. Continuing Security Interest. This Agreement shall
         create a continuing security interest in the Collateral and shall (i)
         remain in full force and effect until indefeasible payment in full of
         the Obligations, (ii) be binding upon Debtor, its successors and
         assigns and (iii) inure to the benefit of Secured Party, and its
         successors and assigns. The Debtor's successors and assigns shall
         include, without limitation, a receiver, trustee or
         debtor-in-possession thereof or therefor.

                  Section 15. Applicable Law; Severability. This Agreement shall
         be governed by, and construed in accordance with, the laws of the State
         of California. Whenever possible, each provision of this Agreement
         shall be interpreted in such a manner as to be effective and valid
         under Applicable Law, but if any provision of this Agreement shall be
         prohibited by or invalid under Applicable Law, such provisions shall be
         ineffective only to the extent of such prohibition or invalidity,
         without invalidating the remainder of such provisions or the remaining
         provisions of this Agreement.

                  (a) Litigation/Waivers. (a) SECURED PARTY AND DEBTOR BOTH
         ACKNOWLEDGE AND AGREE THAT ANY CONTROVERSY WHICH ARISE UNDER THIS
         AGREEMENT OR THE RELATIONSHIP OF DEBTOR AND

                                       8
<PAGE>

         SECURED PARTY ESTABLISHED HEREBY AND BY THE OTHER LOAN DOCUMENTS WOULD
         BE BASED UPON DIFFICULT AND COMPLEX ISSUES. ACCORDINGLY, EACH OF
         SECURED PARTY AND DEBTOR HEREBY WAIVES ITS RESPECTIVE RIGHT TO A TRIAL
         BY JURY.

                  (b) THE FOREGOING WAIVERS HAVE BEEN MADE WITH THE ADVICE OF
         COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES
         THEREOF.

                  Section 16. Indemnification. The Debtor agrees to indemnify
         Secured Party, from and against any and all liabilities, obligations,
         losses, damages, penalties, actions, judgments, suits, costs, expenses
         or disbursements of any kind or nature whatsoever which may at any time
         be imposed on, incurred by, or asserted against Secured Party in any
         way relating to or arising out of the Debtor's business, the
         Collateral, or any action taken by Secured Party pursuant to the terms
         of this Agreement; provided, however, that Debtor shall not be liable
         to the extent such liabilities, obligations, losses, damages,
         penalties, actions, judgments, suits, costs, expenses or disbursements
         result solely from Secured Party's negligent or willful misconduct.
         Without limiting the generality of the foregoing, Debtor agrees to
         reimburse Secured Party promptly upon demand for any out-of-pocket
         expenses (including reasonable counsel fees and disbursements) incurred
         by Secured Party in connection with its enforcement of any terms and
         conditions of this Agreement. The agreements in this Section shall
         survive the termination of this Agreement. Secured Party agrees to give
         Debtor prompt notice of any suit or cause of action brought against
         Secured Party which is covered by this Section.

                  Section 17. Counterparts. This Agreement may be executed in
         counterparts, each of which shall be an original and all of which,
         taken together, shall constitute but one and the same instrument.

                  Section 18. Definitions. For the purposes of this Agreement,
         the terms listed below shall have the following meanings:

         "Applicable Law" means all applicable provisions of constitutions,
statutes, laws, rules, regulations and orders of all governmental (including
tribal) bodies and all orders, rulings and decrees of all courts and
arbitrators.

         "Business Day" means any day other than Saturday, Sunday or other day
on which banks in San Francisco, California are authorized or required to close.

         "Collateral" means all of Debtor's right, title and interest in and to
all Net Revenues and all Furnishings and Equipment (as such terms are defined in
the Loan Agreement), now or hereafter acquired, and any and all additions,
substitutions, replacements and proceeds thereto, thereof or therefrom
(including without limitation, any and all insurance proceeds).

         "Event of Default" means any of the following events, whatever the
reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to

                                       9
<PAGE>

any judgment or order of any court or any order, rule or regulation of any
government or non-governmental body:

                  (a) the occurrence of any "Event of Default" or other default
         under any of the Loan Documents.

                  (b) the failure of Debtor to perform or observe any covenant,
         obligation, agreement or undertaking under this Agreement or any other
         Loan Document; or

                  (c) a breach of any representations or warranties made by
         Debtor herein or in any of the Loan Documents.

         "Lien", as applied to the property of any Person, means any security
interest, lien, encumbrance, mortgage, deed to secure debt, deed of trust,
pledge, charge, conditional sale or other title retention agreement, or other
encumbrance of any kind, or upon the products, income or profits therefrom or
any agreement to convey any of the foregoing or any other agreement or interest
covering such property which is intended to provide collateral security for the
obligation of such Person.

         "Person" means an individual, corporation, partnership, limited
liability company, association, trust or unincorporated organization, or a
government or any agency or political subdivision thereof.

         "Security Interest" means the Lien of Secured Party upon, and the
collateral assignments to Secured Party of, the Collateral effected hereby or
pursuant to the terms hereof.

         "Uniform Commercial Code" shall mean the Uniform Commercial Code as in
effect in the State of California, as the same may be amended from time to time,
unless otherwise set forth herein to the contrary. All terms not otherwise
defined herein and which are defined in the Uniform Commercial Code are used
herein with the meanings ascribed to them in the Uniform Commercial Code.

         IN WITNESS WHEREOF, Debtor has caused this Agreement to be duly
executed and delivered by its duly authorized officers as of the day first above
written.

                                  DRY CREEK RANCHERIA BAND OF POMO
                                  INDIANS, a federally-recognized Indian tribe

                                  By:_________________________________
                                  Name:_______________________________
                                  Title:______________________________

                                       10
<PAGE>

                                   EXHIBIT E

Engagement Letter among Miller Johnson Steichen Kinnard, Inc., Dry Creek
Rancheria Band of Pomo Indians, and Dry Creek Casino, LLC, regarding placement
of Loan in the aggregate principal amount of $27,500,000

<PAGE>

                                [MJSK Letterhead]

August 22, 2001

Michael G. Racho
Dry Creek Rancheria Band of Pomo Indians
498 B Moore Lane
Healdsburg, CA 95448

RE: Temporary Casino- Engagement Letter

Dear Chairman Racho:

Miller Johnson Steichen Kinnard (the "Placement Agent"), welcomes the
opportunity to represent the Dry Creek Band of Pomo Indians (the "Borrower") in
conjunction with the placement of an aggregate amount of approximately
$27,5000,000 in debt financing (the "Debt") secured by certain gaming facilities
revenues from the Temporary Casino on Trust land located approximately one
hour's drive north of San Francisco (the "Property") and other collateral
otherwise as described in the Term Sheets attached hereto (the "Financing")
which financing shall be fully guaranteed as to the payment of principal and
interest when due by Nevada Gold and Casinos, Inc. (the "Guarantor"). Pursuant
to this Engagement Letter, we will act as agent to make an offering of the
Financing and we will work with you, your legal counsel and other outside
advisors or consultants as you may choose to employ, to structure and market the
Financing.

PLACEMENT AGENT RELATIONSHIP

Borrower hereby engages Placement Agent as the placement agent for the Debt. The
Placement Agent will perform all of its duties in accordance with the highest
professional standards and all applicable securities laws.

Placement Agent expects to perform the following explicit functions and other
appropriate services which may be necessary to assist you in carrying out the
Financing and the placement of the Debt. Assuming the full and continuing
cooperation of each of the parties, Placement Agent will:

   o  Work closely with Borrower to fully develop a financing plan generally
      described on the attached Term Sheets that best achieve the Borrower's
      goals.

   o  Assist the Borrower in retaining the professional services necessary for
      execution of all aspects of the financing plan.

   o  Advise Borrower regarding the optimal structure of all components of the
      Financing.

   o  Keep Borrower immediately advised on any unusual market generated
      opportunity to improve the performance of the Financing.

   o  Coordinate the preparation of legal documentation and disclosure materials
      by Placement Agent counsel and Borrower's counsel.

   o  Present the Financing to the marketplace in the manner which will minimize
      the cost of the Financing.

   o  Coordinate and direct all other Financing activities in order to insure an
      efficient and timely closing of the Financing.

<PAGE>

TIMING AND CLOSING CONDITIONS

Placement Agent expects to and will employ its full resources and undertakes its
best efforts to close the Financing no later than October 31, 2001. The closing
will be subject to completion of Placement Agent's due diligence review and
final approval by Placement Agent's commitment committee. This does not
constitute a legally binding commitment to close the Financing by such date.
This agreement, as represented by this Engagement Letter, will be exclusive
through the [sic] 60 days following the date of execution hereof, subject to
ratification by Borrower's Tribal Counsel, by the Borrower or such other later
date as we may mutually establish. During this exclusive period, Borrower will
not approach other lenders, securities firms or other parties to offer the Debt
or otherwise in connection with this financing.

COMPENSATION FOR PLACEMENT AGENT SERVICES

Placement Agent compensation for this Financing shall be 3.5% of the principal
amount of debt provided. It is further acknoweldged and agreed that, in the
event that all of the debt having been sold, a closing date having been set, the
placement agent fees of Miller Johnson Steichen Kinnard will have been earned at
that time. The Placement Agent fees, having been earned, are due and payable at
loan closing, expected to be no later than October 23, 2001; provided, however,
that in the event this agreement in terminated by Borrower following acceptance
by Borrower of a funding commitment from a qualified lender, the Placement Agent
fees shall be payable immediately upon such termination.

NON-CIRCUMVENTION

Should Borrower complete a financing within twelve months of the completion or
termination of this engagement with a Lender or investors introduced to the
Borrower as a result of this engagement or from whom the Placement Agent
provides loan or bond purchase commitments, without the involvement of the
Placement Agent pursuant to the terms of a separate engagement letter, then
Borrower shall Agent 2% of the par value of such financing; provided, however,
that this provision shall be of no force and effect in the event that the
Borrower is prohibited by court order from completing the Temporary Casino
contemplated to be financed hereunder.

The following procedure shall be followed as to identifying and introducing to
the Borrower potential investors and lenders. First, Placement Agent will inform
the Borrower and Borrower's counsel of the identity of the proposed investor or
lender. If the proposed investor or lender is acceptable to the Borrower and has
not been previously introduced to the Borrower, the Borrower will promptly so
notify Placement Agent in writing; thereafter Placement Agent will be protected
as to its compensation as provided above for any Financing resulting from
Placement Agent's identification of such party or parties if such transaction is
consummated within 12 months from the date of this engagement letter pursuant to
the limitations set forth in the immediately preceding paragraph.

ALLOCATION AND PAYMENT OF EXPENSES

The Placement Agent will pay any out of pocket expenses of Placement Agent.
Borrower shall pay the fees and expenses of Placement Agent's counsel. The
Borrower's responsibility for Placement Agent's counsel fees shall be capped at
a fee not to exceed $50,000 plus disbursements. In order to secure the payment
of such costs, Borrower shall deliver to Placement Agent a non-refundable
expense deposit of $10,000 at the time of execution of this engagement letter.

Borrower shall not be responsible for any other expenses of Placement Agent.

<PAGE>

In addition, Borrower expects to incur certain additional transaction costs
beyond the control of the Placement Agent and outside the scope of this
engagement letter. The Placement Agent accepts no responsibility for the payment
of such costs. Such costs may include financial advisory fees and expenses, fees
and disbursements of bond counsel, and of Tribal Counsel, fees and disbursements
of counsel, if any, to the lead bank or investor, cost of printing, copying and
distribution of loan and bond offering materials, trustee fees, any other fees
of consultants to the Borrower, out-of-pocket expenses of Borrower
representatives and other loan closing costs and filing and registration fees.

CONFIDENTIALITY

All information provided by Borrower shall be kept confidential and shall only
be furnished by Placement Agent to prospective lenders who will agree to
maintain such confidentiality.

TERMINATION

This Letter Agreement may be terminated at any time after the exclusivity period
described above, by either party by written notice to the other party, however,
such termination shall affect: (i) the obligation to pay any amounts due
Placement Agent under the sections entitled "Non-Circumvention" and "Allocation
and Payment of Expenses", and (ii) the representations and warranties regarding
confidentiality, limitation of liability, or governing law and venue. Such
termination shall also not affect the obligation to pay any amount due Placement
Agent under the section entitled "Compensation for Placement Agent Services" if
such termination occurs through no fault of Placement Agent after acceptance by
the Borrower of a funding commitment. In no event shall Placement Agent be
entitled to payment of fees under the "Non-Circumvention" provision and the
entitled "Compensation for Placement Agent Services" provision for the same
[sic] (i.e., no double payment).

LIMITED LIABILITY AND INDEMNIFICATION

The Borrower and the Guarantor each hereby represent and warrant that all
information provided to the Placement Agent pertaining to the Borrower and the
Guarantor, respectively, shall be true and correct and the Borrower and the
Guarantor, respectively, shall indemnify and hold Placement Agent free and
harmless from and any all obligations, costs, liability, expenses or claims,
judgment and reasonable attorneys' fees arising from the disclosure or use of
such information provided by such party. Placement Agent shall indemnify and
hold the Borrower free and harmless with respect to any obligations, costs,
claims, judgments or reasonable attorneys' fees based upon materials or
representations made by the Placement Agent, except where such claim or action
may arise out of materials or information provided to the Placement Agent by the
Borrower.

To the fullest extent permitted by law, the Tribe, the Guarantor and each
Affiliate of either of them shall jointly and severally fully protect,
reimburse, indemnify, defend and hold harmless Placement Agent and its
respective members, partners, affiliates, officers, directors, agents, sureties,
servants and employees and successors and assigns for, from and against any and
all liabilities, claims, damages, demands, losses, costs or expenses (including,
without limitation, reasonable attorneys' fees for counsel of Placement Agent's
choosing), arising out of or resulting from, either directly or indirectly, the
entering into or performance of this Agreement, or any Third Party Dispute
(defined below), whether or not arising from the negligence or any other act or
omission of the Placement Agent, provided that the foregoing indemnity will not,
as to any indemnified person, apply to losses, claims, damages, liabilities or
related expenses to the extent they are found by a final, non-appealable
judgment of a court to arise from the willful misconduct or gross negligence of
such indemnified person.

"Third Party Disputes" means all disputes or claims relating directly or
indirectly, to entering into or the execution of this Agreement, the Financing,
the Property or the conduct of the Borrower's gaming operations as contemplated
hereunder and brought by an entity not a party to this Agreement, against an
indemnified person.

<PAGE>

APPLICABLE LAW, DISPUTE RESOLUTION AND WAIVER OF SOVEREIGN IMMUNITY

Borrower waives its sovereign immunity from suit and specifies the Federal
District Court in the Northern District of California, and all appellate courts
related thereto, or in the event said court lacks subject matter jurisdiction,
in the Superior Court of California for the County of Sonoma, and all appellate
courts related thereto as its choice of venue and further specifically consents
to the mandatory arbitration of disputes as set forth below.

This waiver is provided for the sole and limited purpose of enforcing the
Borrower's obligations to Placement Agent and Placement Agent's rights under
this Agreement, Nothing contained in this limited waiver shall be construed to
confer any benefit, tangible or intangible, on any person or entity not a party
to this Agreement or as a waiver with respect to any such third person or
entity, and the presence of any third person or entity as a party to any
proceeding shall constitute a revocation and recission of this waiver of
sovereign immunity granted herein with respect only to such third party or
entity.

Borrower hereby waives any requirement of exhaustion of tribal remedies.
Borrower expressly agrees that Placement Agent may seek satisfaction of judgment
arising hereunder from the undistributed and/or future revenues of gaming
facilities of the Borrower (collectively, "Revenues"). These Revenues are
subject to levy, attachment and/or execution under Federal and/or California law
by any of the aforementioned Courts to satisfy any judgment obtained by
Placement Agent against Borrower pursuant to the provisions of this paragraph.
Nothing in this Engagement Letter shall be construed to permit Placement Agent
to encumber or seek satisfaction of judgment from any assets of Borrower other
than the Revenues. Moreover, no interest in land, whether tangible or
intangible, legal or beneficial, vested or contingent, or any occupancy or other
rights or entitlements therein or related thereto, shall be subject to
attachment, execution, lien, judgment or other enforcement or satisfaction of
any kind, in whole or in part, with respect to any claim of Placement Agent
against Borrower on any basis whatsoever,

DISPUTE RESOLUTION

Arbitration. Any dispute, claim or controversy arising out of or relating to
this Agreement or the breach thereof, or the making of this contract including
claims of fraud in the inducement, shall be settled within the State the
California, by arbitration under the rules of commercial arbitration of the
American Arbitration Association (the "AAA"), as modified by this Section. Any
party may, by written notice to the other parties after such a controversy has
arisen hereunder, appoint one arbitrator. The other parties to the controversy
shall, by written notice, within ten (10) days after the receipt of such notice
by the first party, appoint a second arbitrator, and in default of such
appointment, the first arbitrator appointed shall be the sole arbitrator. When
two (2) arbitrators have been appointed, as hereinabove provided, they shall, if
possible, agree on a third arbitrator who shall be appointed by written notice
signed by both of them with a copy mailed to each party hereto within ten (10)
days after such appointment. No arbitrator shall be related to or affiliated
with any party hereto.

The arbitrators shall apply California law and applicable federal law, and shall
follow such rules of discovery and evidence as they may determine. In the event
that the arbitrators are unable to agree upon the rules of discovery and
evidence to follow, they shall follow the rules of discovery and evidence to
follow, they shall follow the rules of discovery and evidence as established by
the AAA, in any, and if the AAA has not established any rules, then the
arbitrators shall follow such rules as the United States District Court for the
State of California would apply. After receiving evidence and hearing witnesses,
in any, the arbitrators shall render their award, accompanied by filings of fact
and a statement of reasons for the decision.

The arbitrators shall have the authority, subject to the limitations provided
above in respect of Borrower's limited waiver of sovereign immunity, to award
any remedy or relief that Tribal, Federal or State Court could order or grant,
including, without limitation, equitable remedies, specific performance of any
obligation created under this Agreement, and the issuance of any injunction.

<PAGE>

This Agreement is governed by and construed under the laws of the State of
California, and any action brought by either arty against the other party to
enforce or interpret this Letter Agreement shall be brought in an appropriate
court of such State. In the event of any such action, the prevailing party shall
recover all costs and expenses thereof, including reasonable attorneys' fees
from the losing party.

Respectfully submitted on behalf of

MILLER JOHNSON STEICHEN KINNARD, INC.

/s/ James P. Mayer
Vice President

This Engagement Letter is hereby agreed to and accepted on behalf of the Dry
Creek Band of Pomo Indians on this 28 day of August 2001.

                                        By  /s/ Michael G. Racho
                                        Chairman

This Engagement Letter is hereby agreed to and accepted on behalf of Nevada Gold
and Casinos, Inc. on this 28 day of August, 2001.

                                        By  /s/ H. Thomas Winn
                                        President

<PAGE>

                                   EXHIBIT F

Opinion of Legal Counsel from Holland & Knight LLP in favor of Dry Creek Casino,
LLC, dated August 26, 2001

<PAGE>

August 26, 2001                                                     213-896-2400

VIA UPS and VIA ELECTRONIC MAIL

Dry Creek Casino, LLC
4620 Bradford Heights
Colorado Springs, CO 80906

     Re: Development and Loan Agreement (the "Loan Agreement")
         Between Dry Creek Rancheria Band of Pomo Indians ("Tribe")
         and Dry Creek Casino, LLC ("Lender") dated as of August 26, 2001.

Ladies and Gentlemen:

We have acted as counsel for the Tribe and, with respect to the Loan Agreement
referred to above and in connection with the preparation, execution and delivery
of the Loan Documents described below. This letter is delivered to you pursuant
to Section 2.5.2(vii) of the Loan Agreement. Capitalized terms not defined in
this letter have the meanings ascribed to them in the Loan Agreement. For
purposes of this opinion, we have reviewed such documents and made such other
investigations as we have deemed appropriate. We have also examined, among other
documents, the following:

                  a. The Loan Agreement;

                  b. The Note dated August 26, 2001 issued under the Loan
                     Agreement to the Lender referred to therein (the "Note");

                  c. The Security Agreement dated August 26, 2001 made by the
                     Tribe in favor of the Lender;

                  d. The financing statement naming the Tribe, as Debtor, and
                     the Lender, as Secured Party, to be filed in the California
                     Office of the Secretary of State (the "Financing
                     Statement");

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 2

                  e. The Articles of Association of the Tribe;

                  f. Resolution No. 01-08-26-01, adopted by the Tribal Council
                     (as defined below) on August 26, 2001 (the "Tribal
                     Resolution");

                  g. The Dry Creek Gaming Ordinance (the "Ordinance"); and

                  h. The Compact (as defined in paragraph 9 below).

         The documents listed in items a. through c. above are referred to
herein as the "Loan Documents."

         As to matters of fact, we have relied on the representations and
warranties made by the parties in the Loan Agreement and on a certificate of a
representative of the Tribe (a copy of which is attached as Schedule I hereto).
We have made no independent investigation of the accuracy or completeness of
such matters of fact.

         In rendering the following opinions, we have, with your consent, relied
upon the following assumptions:

         (i)      each party to the Loan Documents (other than the Tribe) is
                  duly organized and is validly existing and in good standing in
                  its jurisdiction of organization;

         (ii)     each party to any Loan Document (other than the Tribe) has
                  full power and authority to execute, deliver and perform its
                  obligations under such Loan Document, and each Loan Document
                  has been duly authorized by all necessary action on such
                  party's part and has been duly executed and duly delivered by
                  it;

         (iii)    each Loan Document constitutes the valid and binding
                  obligation of each party to such Loan Document (other than the
                  Tribe), enforceable against such party in accordance with its
                  terms;

         (iv)     each natural person executing a Loan Document or any other
                  document referred to herein is legally competent to do so;

         (v)      each party to a Loan Document (other than the Tribe) has
                  complied with all legal requirements pertaining to its status
                  as such status relates to its rights to enforce such Loan
                  Document against the Tribe;

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 3

         (vi)     each document submitted to us for review is accurate and
                  complete, each such document that is an original is authentic,
                  each such document that is a copy conforms to an authentic
                  original, and all signatures on each such document are
                  genuine;

         (vii)    there has not been any mutual mistake of fact or
                  misunderstanding, fraud, duress or undue influence;

         (viii)   each Loan Document will be enforced in circumstances and in a
                  manner in which it is commercially reasonable to do so and the
                  conduct of the parties complies with any requirement of good
                  faith and fair dealing;

         (ix)     no lender or developer who is a party to the Loan Documents
                  or any of them intends such documents to confer on them the
                  power, rights or control of, and will not be engaging in
                  conduct that could be construed as constituting that of, a
                  management contractor under 25 U.S.C. ss. 2711;

         (x)      there are no agreements or understandings among the parties,
                  written or oral, and there is no usage of trade or course of
                  prior dealing among the parties that would, in either case,
                  define, supplement or qualify the terms of such Loan Document;
                  (xi) the payment of all required documentary stamps, taxes and
                  fees imposed upon the execution, delivery, filing or recording
                  of documents has been made;

         (xii)    references to the "Uniform Commercial Code" or "UCC" are to
                  the Uniform Commercial Code as adopted in California;

         (xiii)   the Lender (i) holds a validly issued license or other
                  authorization under the Compact and the Ordinance to loan
                  moneys for gaming related purposes to the Tribe, or (ii) is a
                  federally regulated or state-regulated bank or savings and
                  loan, or other federally- or state-regulated lending
                  institution within the meaning of the Compact; and

         (xiv)    the Tribe is an organization, as such term is defined in
                  Section 1201(a)(28) of the Uniform Commercial Code, and not a
                  registered organization, as such term is defined in Section
                  9102(a)(70) of the Uniform Commercial Code.
<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 4

         For purposes of this opinion letter, the term "to our knowledge" means
the conscious awareness of facts or other information, at the time of delivery
of this opinion letter, by the lawyers in our firm who have had involvement in
the negotiation and preparation of the Loan Agreement and the other Loan
Documents. Except to the extent expressly set forth herein, we have not
undertaken any independent investigation to determine the existence or absence
of any facts or other information, and no inference as to our knowledge or the
existence or absence of any such facts or other information should be drawn from
the fact of our representation of the Tribe as counsel.

         Notwithstanding our opinions expressed herein, we express no opinion
with respect to any of the following:

         (a)      Waivers of (i) legal or equitable defenses, other than as to
                  the waiver of the Tribe's sovereign immunity, as set forth in
                  paragraph 12 below, (ii) rights to damages, (iii) rights to
                  counter-claim or set-off, (iv) statutes of limitations, (v)
                  rights to notice, (vi) the benefits of statutory, regulatory,
                  or constitutional rights, unless and to the extent the
                  statute, regulation, or constitution explicitly allows waiver,
                  and (vii) other benefits to the extent they cannot be waived
                  under applicable law, including, but not limited to, Division
                  9 of the California Uniform Commercial Code (referred to
                  herein as "Article 9 of the UCC");

         (b)      Provisions providing for forfeitures or the recovery of
                  amounts deemed to constitute penalties or for liquidated
                  damages;

         (c)      Except as expressly set forth in paragraph 13 below,
                  provisions restricting access to courts; waiver of service of
                  process requirements which would otherwise be applicable; and
                  provisions otherwise purporting to affect the jurisdiction and
                  venue of courts;

         (d)      Any Federal, state or local law relating to taxation, zoning,
                  land use, the environment, antitrust, securities or ERISA;

         (e)      Usury laws;

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 5

         (f)      With respect to the opinions set forth in paragraph 13 below:
                  (i) the right, title or interest of any party in or to any
                  collateral or the description of such collateral in the Loan
                  Agreement or the Security Agreement; (ii) the laws of any
                  other state or the perfection or non-perfection of a security
                  interest in any collateral subject, whether by virtue of
                  California law or the law of another state, to the laws of any
                  state other than the State of California; (iii) the priority
                  of any security interest or, except as specifically set forth
                  in paragraph 13 below, the creation, validity, enforceability
                  or perfection of any security interest; (iv) the creation,
                  validity, perfection or enforceability of security interests
                  in fixtures, consumer goods, crops growing or to be grown,
                  timber to be cut or minerals or the like (including oil and
                  gas), accounts resulting from the sale thereof, or real
                  property held in trust by the United States of America (the
                  "United States") for the benefit of the Tribe; or (v) the
                  priority of any security interest in, or, except as provided
                  in paragraph 13 below, the creation, validity, perfection or
                  enforceability of any security interest sought to be created
                  in, any patents, trademarks, trade names, service marks,
                  copyrights, deposit accounts, insurance policies or any other
                  items of property to the extent that a security interest
                  therein is excluded from the coverage of Article 9 of the UCC,
                  including in particular those items of property set forth in
                  Sections 9109 of Article 9 of the UCC;

         (g)      We wish to point out that the security interest in the
                  collateral described in the Loan Agreement, in which the Tribe
                  acquires rights after the commencement of a case with respect
                  to the Tribe under the U.S. Federal Bankruptcy Code or within
                  the applicable preference period relating thereto may be
                  limited by Section 552 of the Bankruptcy Code;

         (h)      We wish to point out that in the case of proceeds (as defined
                  in Article 9 of the UCC), the continuation of perfection of
                  any security interest therein (i) is limited to the extent set
                  forth in Section 9315 of Article 9 of the UCC, and (ii) if
                  such proceeds consist of property in which a perfected
                  security interest cannot be obtained or maintained by the
                  filing of a financing statement in the California Secretary of
                  State Office, will require additional compliance with
                  applicable provisions of the UCC or otherwise;

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 6

         (i)      The attachment or perfection of a security interest in any
                  after acquired property in which a security interest cannot be
                  perfected by the filing of the Financing Statement;

         (j)      The attachment, execution upon, or perfection of a security
                  interest in property located other than in California, or as
                  to any real property wherever situated which is held in trust
                  by the United States;

         (k)      We wish to point out that we have assumed for purposes of the
                  opinions in paragraph 13 hereof, that the party granting a
                  security interest has received value and has rights in the
                  collateral in which it is purporting to grant a security
                  interest, and that all collateral in which possession by the
                  secured party is or may be required under Article 9 of the UCC
                  in order to perfect a lien is held by the secured party and is
                  not subject to the control by another party;

         (l)      We call to your attention the fact that, with respect to
                  financing statements filed on or after July 1, 2001, other
                  than those filed in connection with a public finance
                  transaction, (i) Article 9 of the UCC requires the filing of
                  continuation statements within the period of six months prior
                  to the expiration of each five year period from the date of
                  the original filing of financing statements in order to
                  maintain the effectiveness of the filings referred to in
                  paragraph 13 of this opinion, and (ii) additional filings may
                  be necessary if the Tribe changes its name, identity or
                  organizational structure or the jurisdictions in which its
                  places of business, its chief executive office or the
                  collateral are located;

         (m)      We call to your attention the fact that the Lender's security
                  interest in the collateral under the Loan Documents is subject
                  to: (i) the rights of a buyer, in the ordinary course of
                  business, to acquire the collateral free of the security
                  interests pursuant to Section 9320(a) of Article 9 of the UCC,
                  and (ii) the rights of a buyer other than a buyer in the
                  ordinary course of business to take free of the security
                  interests to the extent permitted pursuant to Section 9323(d)
                  of Article 9 of the UCC;

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 7

         (n)      We call to your attention the fact although the Loan Documents
                  do not purport to constitute a management contract or
                  agreements collateral thereto under 25 U.S.C. ss. 2711, the
                  National Indian Gaming Commission or its Chairman could
                  disagree with such stated intent and its or his opinion could
                  be persuasive to a court of law under rules of construction
                  which give deference to such agency determinations, and we
                  therefore render no opinion on whether or not the Loan
                  Documents or any of them constitutes a management contract or
                  requires federal approval;

         (o)      Provisions in the Loan Documents concerning a security
                  interest in any receivables that are or will be due from the
                  United States, any State, or any agency or department of the
                  United States or any State;

         (p)      Any matter referred to in Schedule III attached hereto;

         (q)      Compliance with the procedural requirements of California law
                  relating to the exercise of remedies by a secured creditor
                  (e.g. Section 9601 et seq. of Article 9 of the UCC, regarding
                  creditors' rights with respect to personal property collateral
                  upon the occurrence of a default in satisfying a secured
                  obligation);

         (r)      The enforceability of provisions of the Loan Documents where
                  circumstances have rendered performance by any party thereto
                  impossible;

         (s)      Provisions mandating contribution towards judgments or
                  settlements among various parties;

         (t)      Provisions that provide a time limitation after which a remedy
                  may not be enforced;

         (u)      Provisions that attempt to change or waive rules of evidence
                  or fix the method or quantum of proof to be applied in
                  litigation or similar proceedings; and

         (v)      The effect of California Civil Code Section 1670.5, which
                  provides that a contract may be unenforceable if any clause of
                  the contract is unconscionable at the time it is made.

         Based on and subject to the foregoing and subject to the exceptions,
qualifications and limitations hereinafter set forth, we express the following
opinions:

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 8

         1. The Tribe is a federally recognized Indian tribe, organized under
its Articles of Association.

         2. The governing body of the Tribe is its Tribal Council (the "Tribal
Council"). Subject to the Tribal Council ratification and approval required
under the Loan Documents, the Board of Directors of the Tribe has the power and
authority to bind the Tribe to the Loan Documents.

         3. The Tribe has full power and authority to enter into the Loan
Documents and to perform its obligations thereunder.

         4. Each of the Loan Documents has been duly authorized by all necessary
action of the Tribal Council, has been duly executed and delivered by the Tribe
and constitutes the valid and binding obligation of the Tribe enforceable in
accordance with its respective terms.

         5. The Tribal Resolution has been duly adopted by the Tribal Council.

         6. The execution and delivery by the Tribe of the Loan Documents, and
the performance by the Tribe of its obligations thereunder will not (a) result
in any violation of the Articles of Association of the Tribe, any laws of the
Tribe ("Dry Creek Tribal Law"), of any California State, or any Federal law, (b)
result in a breach or result in a default under any agreement, subject to the
qualifications set forth on Schedule II hereto, or (c) to our knowledge, result
in a breach of any order, writ, injunction or decree of any court,
administrative agency or governmental authority by which the Tribe, or its
properties are bound.

         7. To our knowledge and without independent investigation, there are no
claims, actions, suits, investigations or proceedings before or by any
arbitrator, court, governmental authority or instrumentality pending or
threatened against or affecting the Tribe or involving the properties of the
Tribe which might materially and adversely affect the business, properties or
financial condition of the Tribe or which might materially adversely affect the
transactions or other acts contemplated by the Loan Documents or the validity or
enforceability of the Loan Documents, except as disclosed in Schedule III
hereto.

         8. The Loan Documents state that they are to be construed in
accordance with and governed by the substantive laws of the State of California,
including the California Uniform Commercial Code. Such choice of law does not
violate or conflict with the Constitution of the Tribe or any provision of Dry
Creek Tribal Law, the Tribe's Articles of Association, and the Loan Documents
may be construed in accordance with and governed by the substantive laws of the
State of California except to the extent the documents explicitly provide
otherwise, irrespective of whether the execution and delivery of the Loan
Documents occur on the Tribe's reservation.

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 9

         9. The tribal-state gaming compact that the Tribe has entered into with
the State of California pursuant to IGRA ("Compact") has been duly and validly
authorized by the Tribe, has been approved by the United States Secretary of the
Interior (the "Secretary") as required by IGRA, notice of the Secretary's
approval has been published in the U.S. Federal Register as required by IGRA,
and the Compact is in force and effect in accordance with its terms.

         10. The Project is located on lands the fee title to which is held by
the United States in trust for the Tribe and over which the Tribe exercises
governmental power within the meaning of IGRA. Such lands have been held in
trust by the United States for the Tribe since prior to October 17, 1988 and
constitute "Indian lands" within the meaning of 25 U.S.C. 2703(4).

         11. Except as the provisions of Section 6.4.6 of the Compact may apply
to the Lender and the matters excepted and set forth on page 6, paragraph n, and
page 7, paragraph p, above, and except for the filing of the Financing
Statement, no consent, approval, authorization or order of, or declaration or
filing with, any Federal, state or Dry Creek tribal governmental authority or
any court, including specifically the Secretary, is required for the execution,
delivery, or performance by the Tribe of the Loan Documents, and the
consummation of the transactions contemplated thereby or the enforceability
thereof.

         12. The consents to suit given by the Tribe in the Loan Documents
constitute a valid and enforceable (a) waiver to the limited extent described
therein of the sovereign immunity of the Tribe and (b) consent to the
jurisdiction of the courts specified in the Loan Documents. The courts of the
State of California have personal and subject matter jurisdiction over any
action against the Tribe to enforce the obligations of the Tribe under the Loan
Documents to the extent granted by the Tribe in such documents.

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 10

         13. The Security Agreement is sufficient to create a legal, valid and
binding security interest in favor of the Lender, enforceable in accordance with
the terms of the Security Agreement, in that portion of the personal property
described therein in which a security interest may be created under Article 9 of
the UCC (the "Security Interest" and the "Collateral," respectively), for the
payment and performance of the Secured Obligations. Upon the proper filing of
the Financing Statement with the California Secretary of State, the Security
Interest will constitute a perfected security interest in that portion of the
Collateral as to which a security interest may be perfected by filing of a UCC-1
financing statement in the State of California pursuant to Article 9 of the
UCC.

Our opinions are subject to bankruptcy, insolvency, fraudulent conveyance,
fraudulent transfer, reorganization, moratorium and other laws affecting the
rights and remedies of creditors generally and to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

Our opinions are also subject to the effect of:

         (i) Rules of law that limit or affect the enforcement of provisions of
a contract that purport to waive, or to require waiver of, the obligations of
good faith, fair dealing, diligence and reasonableness;

         (ii) Rules of law that provide that forum selection clauses in
contracts are not necessarily binding on the court(s) in the forum selected;

         (iii) Rules of law that limit the availability of a remedy under
certain circumstances where another remedy has been elected;

         (iv) Rules of law that limit the enforceability of provisions
releasing, exculpating or exempting a party from, or requiring indemnification
of a party for, liability for its own action or inaction, to the extent the
action or inaction involves negligence, recklessness, willful misconduct,
unlawful conduct, violation of law or public policy or litigation against
another party determined adversely to such party;

         (v) Rules of law that may, if less than all of a contract is
unenforceable, limit the enforceability of the remainder of the contract to
circumstances in which the unenforceable portion is not an essential part of the
agreed exchange;

         (vi) Rules of law that govern and afford judicial discretion regarding
the determination of damages and entitlement to attorneys' fees and other costs;

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 11

         (vii) Rules of law that permit a party that has materially failed to
render or offer performance required by the contract to cure that failure unless
(i) permitting a cure would unreasonably hinder the aggrieved party from making
substitute arrangements for performance, or (ii) it was important in the
circumstances to the aggrieved party that performance occur by the date stated
in the contract;

         (viii) 28 U.S.C. 1360, which provides,, among other things, that such
statutory provision does not confer jurisdiction upon any State to adjudicate
the ownership or right to possession of property held in trust by the U.S.
Federal government for any federally recognized Indian tribe; and

         (ix) 25 USC ss. 2711 or 25 USC ss. 81, to the extent any approvals may
be required to be obtained thereunder.

         (x) The Prop 1A Litigation, as defined in Schedule III, attached
hereto.

         This opinion letter is based as to matters of law solely on (i) the
internal laws of the State of California (but not including any statutes,
ordinances, administrative decisions, or regulations of any political
subdivision of such state), (ii) Federal law, to the extent such laws and other
matters pertain to federally-recognized Indian tribes, and (iii) Dry Creek
Tribal Law.

         Our advice on each legal issue addressed herein represents our opinion
concerning how that issue would be resolved were it to be considered by the
highest court of the jurisdiction upon whose law our opinion on that issue is
based. The manner in which any particular issue would be treated in any actual
court case would depend in part on facts and circumstances peculiar to the case,
and our opinions are not a guaranty of an outcome of any legal dispute which may
arise with regard to the Loan Documents.

         This letter speaks as of the date hereof. We disclaim any obligation to
provide you with any subsequent opinion or advice by reason of any future
changes or events, which may affect or alter any opinion rendered herein.

<PAGE>

Dry Creek Casino, LLC
August 26, 2001
Page 12

         This opinion is rendered pursuant to your request and is intended
solely for your benefit in connection with the Loan Documents. This opinion is
not to be furnished, quoted, or referred, to any other party or to any
governmental agency or used for any other purpose without our prior written
consent.

                                             Sincerely,

                                             HOLLAND & KNIGHT LLP
<PAGE>

                                   SCHEDULE I

                             CHAIRMAN'S CERTIFICATE

                    DRY CREEK RANCHERIA BAND OF POMO INDIANS

         The undersigned, Michael Racho, hereby certifies that he is the duly
elected or appointed, qualified and incumbent Chairman of the Dry Creek
Rancheria Band of Pomo Indians, a federally recognized Indian tribe (the
"Tribe"). This certificate is given for the benefit of Holland & Knight LLP
("Counsel") in rendering its legal opinion in connection with that certain
Development and Loan Agreement dated as of August 26, 2001, by and among the
Tribe and Dry Creek Casino, LLC (the "Loan Agreement").

         Capitalized terms used and not otherwise defined herein have the
respective meanings given such terms in the Loan Agreement.

         I hereby certify as follows:

         1. The Articles of Association of the Tribe ("Articles"), a copy of
            which is attached hereto as Exhibit "A," is considered by the Tribe
            to be an integral and guiding standard by which the Tribe conducts
            its affairs under its customs and traditions, and no action has been
            taken to amend, rescind, modify or revoke the Articles as of the
            date hereof.

         2. The resolutions of the Tribe, numbered 01-08-26-01 and adopted by
            the Tribal Council as of August 26, 2001, a copy of which is
            attached hereto as Exhibit "B," are in full force and effect as of
            the date hereof, and no action has been taken to amend, rescind,
            modify or revoke such resolutions as of the date hereof.

         3. To my knowledge, there are no orders, writs, injunctions or decrees
            of any court, administrative agency or governmental authority by
            which the Tribe or its properties are bound.

         4. To my knowledge, there are no claims, actions, suits, investigations
            or proceedings before or by any arbitrator, court, administrative
            agency, governmental authority or instrumentality pending or
            threatened against or affecting the Tribe or involving the
            properties of the Tribe, except as disclosed in Schedule F-1 of the
            Loan Agreement.

<PAGE>

         The undersigned understands and acknowledges that this certificate will
be relied upon by Holland & Knight LLP in connection with its legal opinion to
be delivered pursuant to the Loan Agreement.

         IN WITNESS WHEREOF, the undersigned has hereunto set his name as of the
26th day of August, 2001.

                                                   By:
                                                      --------------------------
                                                       Michael Racho
                                                       Tribal Chairman

<PAGE>

                             ARTICLES OF ASSOCIATION
                                     OF THE
                              DRY CAREER RANCHERIA

                                    PREAMBLE

We, the Indians of the Dry Creek Rancheria, in order to establish a formal
organization and to promote the general welfare of our people in building unity,
development of tribal lands, creation of resources and other human development
as deemed necessary, do hereby adopt the following Articles of Association.

                                ARTICLE I - NAME

The name of this organization shall be the Dry Creek Rancheria Tribal Council,
hereinafter referred to as the Tribal Council.

                             ARTICLE II - TERRITORY

The jurisdiction of the Tribal Council shall extend to the land now and
hereafter comprised within the Dry Creek Rancheria.

                           ARTICLE III - MEMBERSHIP

The general membership shall consist of all those persons in the following
categories, who have completed an application for membership.

         A. Persons living on the effective day of this document whose names
         appear on the census of the Indians in, near and up Dry Creek from
         Healdsburg and on the census of Indians in and near Geyserville
         included in a letter dated June 4, 1915, from John J. Terrell, Special
         Indian Agent, to Hon. Cato Sells, Commissioner of Indian Affairs.

         B. Persons living on the effective date of this document, and those
         born thereafter whose ancestors are named on the census rolls described
         in (a) above, regardless of whether the named ancestors are living or
         deceased.

         C. Spouses of members who hold valid assignments on the rancheria,
         providing the spouse is a California Indian.

         D. Persons who meet the requirements of A, B and C above, shall be
         ineligible for membership if they have been affiliated with any other
         tribe, band or group to the extent of being included on a formal
         membership roll, have received an allotment or formal assignment of
         land or have been named as a distributee or dependent family member of
         a distributee in a reservation distribution plan.

<PAGE>

                                                                               2

         E. The board of Directors, as provided for in Article IV, shall keep
         the membership roll current by removing the names of persons who became
         ineligible for membership, or who relinquish their membership in
         writing, and by adding the names of new members.

                          ARTICLE IV - GOVERNING BODY

The governing body shall be the Tribal Council, which shall consist of all
members eighteen (18) years of age or over. Subject to any limitations imposed
by the applicable statutes of the United States or the State of California, all
powers and responsibilities shall be vested in the Tribal Council which may
delegate powers to the Board of Directors. The Tribal Council shall elect from
its membership a Board of Directors consisting of a Chairman, Vice-Chairman,
Secretary-Treasurer and two (2) delegates, and such other temporary or permanent
committees as are deemed necessary by the Tribal Council.

                              ARTICLE V - MEETINGS

Meetings of the Tribal Council will be held during the months of April and
September of each year, at times and places to be prescribed by the Chairman.
Special meetings may be called by the Chairman or by any two (2) members of the
Board of Directors, provided that seven (7) days notice be given stating the
purpose of the meeting. No business shall be conducted in the absence of a
quorum consisting of not less than fifteen (15%) percent of the voting
membership.

                     ARTICLE VI - VOTING RIGHTS & ELECTIONS

Any member of the Tribal Council, eighteen (18) years of age or older shall have
the right to vote and if duly nominated and elected may hold office. All
elections, whether for office or referendum, shall be by secret ballot. Notice
of an election shall be given in writing seven (7) days prior to the election
day. Nomination of officers shall be held each two years at the tribal council
meeting in September. The date for the election is to be selected at this
meeting. A member must be present at the site of the election to vote.

                        ARTICLE VII - BOARD OF DIRECTORS

The Board of Directors shall take such actions as are necessary to carry into
effect the ordinances, resolutions, or other directions of the Tribal Council,
represent the community in all negotiations with local, state and federal
governments and shall faithfully advise the Tribal Council of all

<PAGE>

                                                                               3

such negotiations. Members of the Board of Directors shall hold office for two
years, or until their successors are duly elected and installed. If an officer
shall die, resign, be found guilty of a felony, or be recalled from office, the
vacancy so created shall be filled by the Board of Directors at its next
meeting, and the replacement shall serve out the unexpired term of office of his
predecessor.

                 ARTICLE VIII - MEETINGS OF BOARD OF DIRECTORS

The Board of Directors shall meet once a month at a time and place set by the
Chairman. Notice of meeting shall be given at least 48 hours in advance either
by mail or verbal communication. Special meetings shall be convened on call of
the Chairman or by two (2) board members. Written notice, stating the purpose of
the meeting must be given 24 hours in advance of the meeting date. A quorum
shall consist of three (3) members, and no business shall be conducted in the
absence of a quorum.

                           ARTTICLE IX - ASSIGNMENTS

The power of the Tribal Council to make assignments of land on the Dry Creek
Rancheria shall be set forth in an assignment ordinance, passed by the Tribal
Council and approved by the Secretary of the Interior or his authorized
representative. Members who own a home or are buying a home off the rancheria
will not be eligible for an assignment on the rancheria.

                           ARTICLE X - BILL OF RIGHTS

The protection guaranteed to persons by Title II of the Civil Rights Act of 1968
(82 Stat. 73) against actions of a tribe in the exercise of its powers of
self-government shall apply to the Dry Creek Rancheria, its officers and all
persons within its jurisdiction.

                        ARTICLE XI - DUTIES OF OFFICERS

A. The chairman of the Board of Directors shall preside at all meetings of the
Tribal Council and of the Board of Directors, and shall execute on behalf of the
rancheria all contracts, leases, or other documents approved by the Tribal
Council. He shall have general supervision of all other officers, employees and
committees of the rancheria and see that their duties are properly performed.
When neither the Tribal Council nor the Board of Directors is in session, he
shall be the official representative of the rancheria.

B. The vice-chairman shall assist the chairman when called upon to do so, and in
the absence of the chairman he shall have the duties of that officer.

<PAGE>

C. The secretary-treasurer shall keep the minutes of all meetings and shall
attest to the enactment of all resolutions and ordinances. Copies of all
minutes, resolutions, and ordinances shall be submitted by him to the Bureau of
Indian Affairs as soon after enactment as possible. The secretary-treasurer
shall carry out the financial directives of the Tribal Council, receive all
local monies of the rancheria, and keep an accurate account of the receipts and
disbursements. Funds shall be deposited in the rancheria account in a local bank
selected by the Tribal Council where depositors' funds are insured by the
Federal Deposit Insurance Corporation. All disbursements shall be made by check
in accordance with resolutions of the Tribal Council and shall be co-signed by
the chairman or the vice-chairman in the absence of the chairman. The
secretary-treasurer shall file a bond satisfactory to the Tribal Council and the
Area Director, when either are of the opinion sufficient funds have accumulated
in the rancheria treasury. The Tribal Council shall authorize payment of the
annual bond premium from the local rancheria funds. The secretary-treasurer
shall give a financial report to the Tribal Council at each meeting, and all
financial records shall be available for inspection by any member of the Dry
Creek Indian Rancheria and by representatives of the Bureau of Indian Affairs.

                             ARTICLE XII - ADOPTION

The Articles of Association shall be effective upon approval of the Commissioner
of Indian Affairs. With sixty (60) days after the document has been approved,
the Tribal Council shall elect a Board of Directors, pursuant to Articles IV and
VI of these articles.

                           ARTICLE XIII - AMENDMENTS

The Articles of Association may be amended by a majority vote of the eligible
voters of the Tribal Council, provided at least fifty-one percent(51%) of the
eligible voters participate in a referendum election called for that purpose. A
referendum election to amend the Articles of Association must be preceded by a
duly called meeting of the Tribal Council at which the proposed amendment has
been explained.

                            CERTIFICATE OF ADOPTION

The undersigned certifies that the foregoing Articles of Association were
adopted at a referendum election held September 13, 1972, which election was
participated in by a majority of the adult Indians of the Dry Creek Rancheria,
resulting in a vote of 17 for, and 0 against.

                                   /s/ Otis J. Lozinto
                                   ------------------------------------
                                   Otis J. Lozinto, Chairman
                                   Dry Creek Rancheria

<PAGE>

                                    APPROVAL

The foregoing Articles of Association of the Dry Creek Rancheria, adopted
September 13, 1972, are hereby approved with the understanding that (1) Public
Law 280 is applicable to Territory; (2) that the word "ancestors" as it appears
in Section B of Article III means lineal ancestors; and (3) that the felonious
conviction justifying removal of an official from office under Article VII of
these Articles of Association must occur during the term of office from which
the official is to be removed.

                                        [Signature illegible]
                              Deputy Assistant Secretary of the Interior

Date: APR 16 1973

Washington, D.C.

<PAGE>
                                     S-1100

REFER IN REPLY TO THE FOLLOWING:                          ADDRESS ONLY THE
                                                  COMMISSIONER OF INDIAN AFFAIRS

                           DEPARTMENT OF THE INTERIOR
                            OFFICE OF INDIAN AFFAIRS

ID. ED. aLLOTMENTS
[84485] - 1915
84777 - 1915.
P.S. N. Pur. Band Calif.                         WASHINGTON: Santa Rosa, Calif.
  Hon. Cato Sells,

Commissioner Indian Affairs,
     Washington, D.C.

Dear Sir: - Herewith you will please find warranty deed properly executed by
C.H. Wilson and wife conveying to the United States of America 75 acres of land,
together with abstract of title thereto a census of the Indians of Dry Creek and
in and near Geyserville in Sonoma County, California.

         The land named in this deed is situated about 3 1/2 miles by road
southeast from Geyserville, on the east side of the Russian river and about 1/2
to 3/4 mile back in the hills approaching the valley land of that river. It is
well watered by two perpetual running streams fed by springs, one of the streams
carrying considerable water, in which the Indians may catch more or less fish in
proper season; has amply supply of fine timbers for all domestic purposes, that
is, for fuel, fencing and considerable suitable for house-building.

         In my opinion the timbers will virtually reproduce themselves about as
fast as the Indians may use same for domestic purposes.

         The 75 acres would likely cut clean produce 2,000 cords of wood.

         Most of this land is rough, there being only sufficient small spots of
land at several points of character suitable for location of houses and small
gardens, though those portions not covered with timber are well set in fine
grasses. There can be no question but that the tract is well suited for an
Indian Village, situated as it is near enough, not too near Geyserville, and the
rich valley lands

<PAGE>

Page 2

of the Russian river, all of which are in high state cultivation in grape, hops,
berries and the many fruits of this country; and therefore, the Indian is
insured plenty or work nearby during most of the year.

         The probabilities are the Indians will be able to always secure work
sufficiently near this land to go and come therefrom each day without loss of
time during working hours. They will be far enough from any town or place of
loafing or drinking, Geyserville being the closest place, to very greatly
improve their social, physical and moral conditions.

          In my efforts to secure land for a home for these Indians I was after
a general scouring of the country for many miles around Geyserville and up and
down Dry Creek and surrounding country, almost concluding I was going to fail,
when by good luck and through the persistent and untiring efforts of Wm. Tooly,
the leading Indian of the Geyserville band, we found this Wilson tract. The few
tracts suggested by the local land agents were either unsuitable, too high, too
much land, refusing to divide, and most generally did not care to have located
so near them a permanent INDIAN Village in the subdivision of so small tract of
land, etc.

         I do not in the least hesitate in the recommendation of the purchase of
this 75 acres of land for a suitable and permanent home for the two bands of
Indians named. Mr. Wilson first insisted on his selling to certain points, on
account of the topography of the land, that is, the run of the creeks, etc,
which according to our first survey embraced 89 acres, but suggesting that
the Office would hardly permit the expenditure of more than $25.00 per acre for
over 75 acres, was able at last to [xxxxxx] to cut and survey the tract to
contain the 75 acres embodied in his deed.

         On account of the small number of Indians in the Geyserville band
[xxxxxx] made an effort to induce the Cleverdale band to united with the
Geyserville [xxxxxx] and in this effort in [xxxxxxxxx] Tooley down from
Cleverdale to [xxxxxxx]

<PAGE>

on the ground during the surveying, which he did, coming down by rail from place
of employment near Cloverdale. While he expressed no objections himself, as well
as that some of the other people of his band would not object yet knew on
account of past friction with some others that it would be next to impossible to
induce several of his band to join the Geyserville band.

         In that I might cause the expenditure of the $1875-00 for the 75 acres
reach as many Indians as possible I pressed with the Geyserville Indians the
necessity of consolidating with them the Dry Creek Indians, which after hearing
the many circumstances and conditions confronting me, they very kindly consented
to do, and after supper two of them, Elgin and Tompson, accompanied Mr. Wilson
and myself in his auto 7 miles over on Dry Creek to the home of Charley Lucas.
Lucas assured us that his people were so very anxious for a home that they would
be delighted to come over and join the Geyserville people. Lucas and his big fat
young wife came over next day walking the [xxxxx] and assisted us in the
surveying the land, staying over night with the Geyserville Indians.

         By the consolidation of these two bands they will have enough of
children to justify a permanent school. This school suggestion meets the hearty
approval of most of the more intelligent Indians.

         These two bands are delighted at the prospect of at an early date being
permitted to build their homes on land from which they will never be driven off,
and from which they will be able to secure work nearby.

          It is very difficult, almost impossible with most Indians, to induce
them to go any great distance from where they have been born and raised.

          They are very shy and slow to form new acquaintances.

          If my recommendation for the purchase of this land is accepted I beg
to most earnestly urge and insist that all possible energy be at earliest date
to put behind its speedy consumation. I am forced to make this insistance for
the reason that one of the principal reasons inducing Mr. Wilson

<PAGE>
to sell so near his beautiful home this land for an Indian village was he needs
at an early date some money to meet pressing demands.

         He has said to me, and urges me to say to the Department, that if this
proposed sale is to be tied up for some 2 or 3 months before final consumation
and receipt of the consideration, that he desires all papers be returned to him
at once, as he cannot afford to tie up his land indefinitely.

         He may have been the more insistant in this regard for the reason that
some one has told him that it will take "six months or one year before he will
see a dollar for his land. Mr. Wilson has 3 quite attractive daughters, two
having but recently passed from short dresses and the other soon to follow,
besides two boys about 18 and 20, and they are burning more or less auto oil; so
you will understand the demands on "Dad" are not likely modest, few and far
between. Again in this case "Dad" is an exceedingly kind and indulgent father.
Permit me to say, in this same connection, that is, what was termed "long
tedious, long drawnout red tape route to get any thing through the departments
at Washington", Mr. McAlister, General Land Commissioner at San Francisco, when
in his office recently, on my suggestion that sales to the Government were cash,
etc., had to say "his experience with sales of Land usually "required from 1 1/2
to 4 years" to actually come in possession of the cash representing the sale",
etc. I assured him that such delay would not be permitted under present
administration of the Indian Office.

         Also another good and sufficient reason for earliest possible
consumation of these purchase of lands for the Indians is the fact the Indians
are so enthused and encouraged in the thought of a home of his own, and from
time to time, and more especially before the gathering of the fruit crops, will
have opportunity to begin the building and improving of his

<PAGE>

home at intervals, getting ready for the coming winter, all of which causes me
to indulge the conviction of speedy action in the consumation of these sales.

         I realize that I am not exactly following instructions the Office in
forwarding the enclosed deed and abstract in advance of first forwarding with my
recommendation a definite offer in writing from the presumable owner of the land
to be conveyed; however, on account of fact party so earnestly urges the
earliest possible consumation of sale, and that his warranty deed is best and
stronger evidence of his good faith than an offer in writing, have felt that
the sending in the deed and abstract, would be, so to speak, "cutting across
lots," expedite matters and really burden the Office with less labor.

         Mr. Wilson's P.O. is Geyserville, Calif.

         Just received your Mr. Hauke's favor of the 29th, ultimo, accompanied
by copy of Robert Parish's letter, requesting that at some suitable time I
investigate and report as to the conditions of the Indians at Manchester,
Mendocino County, Calif. I hope to be able to get away from here by tomorrow
afternoon for Little River in that county, stopping off at Cloverdale for one
day, possibly two; with view of finding land for the Indians in and near that
place, having heretofore failed, though I spent some 3 or 4 days there in an
effort to do so. I have a letter from Wm. Tooley, the leading Indian there
insisting "they have at last found a suitable piece of land that can be
purchased," etc.

         While in Mendocino county will carefully investigate and report on the
conditions of the indians at Manchester in that county.

         From Little River I expect to go on North to Big Lagoon in Humbolt
county, where I shall likely make my P.O. for 3,4 or 5 days.

         It now seems probably I shall go from Big Lagoon to Colfax in [Placer]
county, as I am in receipt of a recent letter from Mr. Asbury of Reno, advising
that there are a number of needy and worth indians there that should have early
attention.

         From Colfax I expect to work South, likely going through the following
places, viz: Placerville, Fairplay, Omo Ranch, Indian [Diggins, Thoepranch] and
[xxxx], counties of Eldorado, Amador and Calaveras.

         On my return from Big Lagoon through Santa Rosa will stop off for mail
or any orders that may meet me, which will likely be 10 days to two weeks from
now.

                              Very respectfully,

                              /s/ John J. Terrell
                              Special Indian Agent

<PAGE>

Census of the Indians in, near and up Dry Creek from Healesburg

in Sonoma County California.
          95        85                           42
Old man Jack Lucas, wife and 3 children, viz: Charley,             2.
   23        32
Maggie and Mary (Mary single)                                      1.
          42        40
Charley Lucas and wife                                             2.

Sam Warren and wife (Maggie Lucas)                                 2.
       48
Bill Fish                                                          1.
  13      10
Lizzie and Joe Waha- at school at Carson.                          2.
         32    27                            school at Carson
Mike Cardova, wife and 2 children, viz:Padro & Manuel in           4.

Alfred  Elgin 6 years old in local school                          1.
          19             18
Johny Mullen and Henry Arnold                                      2.

Joe Bill, Wife and 2 children, Annie Bill, single                  3.

Joe Lozinto, wife (Rosa Bill) and 8 children viz:

Louisa (Married to Albert Williams  Bell married to Greg
               17          14    12   6     3
Cardova) Joe Lozinto Jr. Pete, Emma  Lucy, Ralf & baby girl        6.

Albert Williams, wife and 2 children                               4.

Clary Bill and 2 children                                          3.

Fred Ross, wife and one child, Jose 13 years old                   3.
     20          14
Christian and Elsa Shackley                                        2.

Mary Poche- widow.                                                 1.

Charley Samuels and wife                                           2.
                                                                 --------------
                                                                  43.
        N-B: Charley Lucas is the leading Indian among the

Dry Creek band. He manifested a deep interest in securing

land for permanent homes for his people, he and his wife

walking 6 or 7 miles from their present home on Dry Creek to

East of Geyserville and assisting in the surveying of the land

named in the deed from Mr. Wilson and wife to the United States

of America for his and the Geyserville band's homes, he and his wife

staying over night with the Geyserville Indians.

               Respectfully submitted

               /s/ John J. Terrell, Special Indian Agent,

<PAGE>

        Census of the Indians in and near Geyserville

               Sonoma County California:

"Old" Jim Shin, widower, no living children                        1.
       78   75              32        12
Dick Low, wife and son Johny & his son Ora                         4.
            80                                         Indians
Geyserville Joe (wife dead) has a daughter with Cloverdale         1.
          60        65
Charley Managil, wife and 4 children                               6.

George Fish, wife and 5 children, 3 boys and 2 girls, viz:         2.
     9    7         5      3            1 1/2
  Willie, Lary, Katie,  Clide and George Jr.                       5.
       25    23          7
Tony  Jack, wife and stepson                                       3.
        50              11
Mrs. Williams and son Ike                                          2.
         19         22
Tony Tompson and wife [Laura Soma]                                 2.
     23        20                  7    4         1
Gib. Elgin,  wife and 3 children, May, Elza and Folis              5.
       52
Jack   Waha- widower.                                              1.
                                                                 --------------
                                   Dry Creek band                 32.
                                   Geyserville                    43.
                                                                 --------------
                                                                  75. Total

N-B: Gib Elgin and Tony Tompson are the leading Indians

of the Geyserville band. They each manifested much interest

in securing land for a permanent home for their people.

     They spent the better part of three days with me in my

efforts to secure land, and when found assisted in the surveying,

working as axmen. They accompanied me by night over to the Dry
Creek country to see Charley Lucas, one of the leaders of that band
to assist me and otherwise show an unmistakable evidence of welcome
to the Dry Creek Indians to join them in their contemplated new
home, etc.
                    Respectfully submitted:

                                        /s/John J. Terrell
                                        Special Indian Agent,

<PAGE>

                                                               Tribal Operations
                                                                 076.2 Dry Creek

                                          NOV 1, 1979

Ms. Amy Martin, Chairperson
Dry Creek Rancheria
P.0. Box 413
Geyserville, California 95441

Dear Ms. Martin:

The four (4) Amendments to the Article of Association that were passed at the
General Membership Meeting on September 22, 1979, are in effect.

They became in effect the day the General Membership apprpved them. In our
October 16, 1979 memo to the Area Director, we stated that in accordance with
Article XIII of the Articles of Association for Dry Creek Rancheria, that no
other approval authority is required. In the Area Director's memo of October 19,
1979, he concurred with our decision.

Should you have any questions, feel free to contact our office.

Sincerely yours,

/s/ [illegible]

Superintendent

<PAGE>

                                 CERTIFICATION

This is to certify that the above Resolution was duly adopted at a meeting of
Dry Creek Rancheria members, a quorum of 51% of the eligible voters being
present, as required by Article XIII, on September 22, 1979, by a vote of 16
ayes, 0 nays and 0 abstaining.

/s/ Amy L. Martin
----------------------------
Amy L. Martin, Chairperson

Attest: /s/ Grant Smith
       ---------------------

<PAGE>

          DRY CREEK RANCHERIA
[LOGO]
          3250 Highway 128 East
          Geyserviile, CA. 95441
          (707) 433-1209

                                   RESOLUTION

WHEREAS, these amendments to the Articles of Association of Dry Creek Rancheria
         were proppsed to the membership at the general meeting on April 29,
         1979:

         Amendment I:

         Article V of the Articles, Meetings, shall be amended by substituting
         "fifteen (15%)" in place of "twenty-five (25%)." Article V as amended
         shall read as follows:

                  Meetings of the Tribal Council will be held during the months
                  of April and September of each year, at times and places to be
                  prescribed by the Chairman. Special meetings may be called by
                  the Chairman, or by any two (2) members of the Board of
                  Directors, provided that seven (7) days notice be given
                  stating tba purpose of the meeting. No business shall be
                  conducted in the absence of a quorum consisting of not less
                  than fifteen (15%) percent of the voting membership.

         Amendment II:

         Article VII of the Articles, Board of Directors, shall be amended by
         adding (a) Procedure for Recall. Section (a) shall read as follows:

                  (a) procedure for Recall:

                  In the event of recall of a member of the Board of Directors
                  for any reason, the same shall be accomplished by majority
                  vote of duly qualified voting members of the Tribal Council,
                  at a special meeting of the Council for that purpose, written
                  notice of

<PAGE>

                  such meeting having been duly given at least seven (7) days
                  prior to the date of such special meeting.

         Amendment III:

         Article XIII of the Articles, Amendments, shall be amended by
         substituting "thirty percent (30%)" in place of "fifty-one percent
         (51%)." Article XIII as amended shall read as follows:

                  The Articles of Association may be amended by a majority vote
                  of the eligible voters of the Tribal Council, provided at
                  least thirty percent (30%) of the eligible voters participate
                  in a referendum election called for that purpose. A referendum
                  election to amend the Articles of Association must
                  be preceded by a duly called meeting of the Tribal Council at
                  which the proposed amendments has been explained.

         Amendment IV:

         By adding Article XIV to the Articles. Article XIV to read as follows

                  Articie XIV - Housing Authority:

                  Tribal Council shall have the power to enact an ordinance for
                  the purpose of establishing a housing authority or to join an
                  existing housing authority.

         and

WHEREAS, the membership reviewed and discussed these amendments at the general
         meeting of September 22, 1979, and

WHEREAS, the members feel it is within the best interest of Dry Creek Rancheria
         to incorporate these amendments into the existing Articles of
         Association.

NOW THEREFORE BE IT RESOLVED that Amendment numeral I, II, III, and IV
         respectively be approved by the Tribal Council of Dry Creek Rancheria.

<PAGE>

[LOGO]                      Dry Creek Rancheria

                              BAND OF POMO INDIANS
                     498 B MOORE LANE, HEALDSBURG, CA 95448
                      P. O. BOX 607, GEYSERVILLE, CA 95441
                      PHONE: 707-431-2388 FAX 707-431-2615
                           E-MAIL - dcradmin@sonic.net

                   RESOLUTION TO RATIFY TRANSACTION DOCUMENTS
                           FOR TRIBE'S INTERIM CASINO

                          RESOLUTION No. 01-08-26-001

WHEREAS, Dry Creek Rancheria (the Tribe) is a federally recognized Indian tribe
         organized under the tribe's Articles of Association (the Articles),
         adopted on September 13, 1972, and approved by the Deputy Assistant
         Secretary of the Interior on April 16, 1973, by virtue of powers
         inherent in tribal sovereignty and those delegated by the United States
         of America; and

WHEREAS, the General Membership shall elect from its membership a Board of
         Directors and all powers and responsibilities shall be vested in the
         General Membership which may delegate powers to the Board of Directors
         pursuant to Article IV of the Articles.

WHEREAS, The General Membership authorizes the Board of Directors to pass
         resolutions and/or ordinances so they could carry out the daily
         business of the tribe and represent the local community in all
         negotiations with the local, state and federal governments, pursuant to
         Article VII of the Articles.

NOW, THEREFORE BE IT RESOLVED, that all actions of the Board of Directors with
respect to the transactional documents, including the approval and execution of
such documents, and with respect to any documents and agreements related thereto
which are necessary for the implementation of the transaction, and any further
actions which must be taken by the Board of Directors in order to carry out the
intent of this resolution and the purpose of the transactional documents,
including but not limited to entering into such construction, consulting,
purchasing and professional agreements as may be necessary for the tribe's
construction and operation of the casino, are hereby authorized, approved and
ratified, and the Board of Directors is hereby directed to execute and implement
such documents and agreements and to construct and operate the casino as
contemplated therein.

Page 1 of 2                Resolution No. 01-08-26-001

<PAGE>

                                  CERTIFICATION

The foregoing resolution was presented at a Special Meeting of the Board of
Directors on the 26th of August, 2001 with a quorum present. Motion was made by
Aaron Silva seconded by Jimmy Silva and approved by a vote of 100 ayes, 31 noes,
and 0 abstentions.

                                              /s/ Michael Racho
                                            ----------------------------------
                                            Michael Racho, Tribal Chairman

ATTESTED

/s/ Betty J. Arterberry
----------------------------------------
Betty J. Arterberry, Secretary/Treasurer

Page 2 of 2                Resolution No. 01-08-26-001

<PAGE>

                                  SCHEDULE II

                      QUALIFICATIONS REGARDING AGREEMENTS

Item number 6 of Holland & Knight LLP's legal opinion is hereby qualified as
follows:

1. There is a claim or threatened claim by Advent Communications & Entertainment
Company and its partners, affiliates and co-ventureres (including each party
identified under "Third Party Disputes" in the Loan Agreement) that the
negotiation and execution of the Loan Agreement is an express breach of the
Sonoma Canyon Documents and/or the Sonoma Falls Documents (as such terms are
defined in the Loan Agreement) and documents related thereto, including an
"Exclusive Negotiating Agreement" dated August 7, 1999, all of which claims are
acknowledged by Developer.

<PAGE>

                                  SCHEDULE III

                                  DISCLOSURES

The following disclosures are made in connection with item number 7 of
Holland & Knight's legal opinion:

1. that certain claim made by the Alexander Valley Association against Borrower
pursuant to a letter dated September 12, 2000, alleging certain violations by
Borrower of the federal Endangered Species Act and correspondence from the
National Marine Fisheries Service regarding potential takings by the Borrower
under that Act with respect to the creek bed on the lower part of the Dry Creek
Rancheria, review of which has been acknowledged by Developer;

2. a claim or threatened claim set forth in a letter dated October 27, 1999,
from James R. Mazzoni, Jr., Esq., of PassaLacqua, Mazzoni & Gladden, as
attorneys for Carlton Proschold, the owner of the property burdened by the
access easement to the Property, to Ms. Amy Martin, that such access easement
does not permit the use of such access for utilization of the Property for
casino use, and subsequent assertions of that claim by Proschold and others
related to him, all of which claims have been acknowledge by Developer;

3. a dispute by certain voting members of the Tribe who claim they have
successfully recalled the present members of the Tribe's Board of Directors and
replaced them with an "interim board." The Bureau of Indian Affairs continues to
recognize the current board. An appeal of that recognition is pending;

4. a claim or threatened claim by Advent Communications & Entertainment Company
and its partners, affiliates and co-ventureres (including each party identified
under "Third Party Disputes" in the Loan Agreement) that the negotiation and
execution of the Loan Agreement is an express breach of the Sonoma Canyon
Documents and/or the Sonoma Falls Documents (as such terms are defined in the
Loan Agreement) and documents related thereto, including an "Exclusive
Negotiating Agreement" dated August 7, 1999, all of which claims have been
acknowledged by Developer;

5. that certain litigation entitled Artichoke Joe's, et al. v. Norton, et al.
(No. CV-S-01-248 DFL/GGH, E.D. Calif.) filed on February 7, 2001 challenging the
constitutionality of California Constitution Article IV, Section 19 (f), the
effect of which, if successful, cannot be determined but could limit the Tribe's
ability to offer certain gaming in the Tribe's gaming facility (the "Prop 1A
Litigation"); and

6. the opinion of the Attorney General of California dated February 23, 2001
that California "Compacts entered into by the State and 62 federally recognized
Tribes contemplate that the Gambling Control Commission ("GCC")

<PAGE>

will issue the licenses for gaming devices pursuant to the Compact's
provisions;" that the Tribe purchased gaming device licenses that were issued on
or about May 15, 2000 through a process established by the Compact tribes
utilizing the Michael Sides Accountancy Corporation and not by the GCC, although
the State commended the tribes on the process at the time; that gaming devices
operated pursuant to those licenses were not placed in commercial operation
within 12 months of issuance as required under the Compact; that further gaming
device license issuance and other compliance procedures may be necessary to
effectuate the Tribe's right to operate more than 350 gaming devices; and that
further licenses may not be available if and when needed. Members of the GCC
have indicated informally that it is possible that new licenses to replace those
issued through the Sides process will be issued by the GCC and that the one-year
deadline will not begin to run until then, but there has been no formal
announcement to that effect.

<PAGE>

                                  EXHIBIT F-1

Disclosures

<PAGE>

                                   EXHIBIT F-1

                                  DISCLOSURES

The following disclosures are hereby made to Developer:

1. that certain claim made by the Alexander Valley Association against Borrower
pursuant to a letter dated September 12, 2000, alleging certain violations by
Borrower of the federal Endangered Species Act and correspondence from the
National Marine Fisheries Service regarding potential takings by the Borrower
under that Act with respect to the creek bed on the lower part of the Dry Creek
Rancheria, review of which is acknowledged by Developer;

2. a claim or threatened claim set forth in a letter dated October 27, 1999,
from James R. Mazzoni, Jr., Esq., of PassaLacqua, Mazzoni & Gladden, as
attorneys for Canton Proschold, the owner of the property burdened by the access
easement to the Property, to Ms. Amy Martin, that such access easement does not
permit the use of such access for utilization of the Property for casino use,
and subsequent assertions of that claim by Proschold and others related to him,
all of which claims are acknowledge by Developer;

3. a dispute by certain voting members of the Tribe who claim they have
successfully recalled the present members of the Tribe's Board of Directors and
replaced them with an "interim board." The Bureau of Indian Affairs continues to
recognize the current board. An appeal of that recognition is pending; and

4. a claim or threatened claim by Advent Communications & Entertainment Company
and its partners, affiliates and co-ventureres (including each party identified
under "Third Party Disputes" in the Loan Agreement) that the negotiation and
execution of the Loan Agreement is an express breach of the Sonoma Canyon
Documents and/or the Sonoma Falls Documents (as such terms are defined in the
Loan Agreement) and documents related thereto, including an "Exclusive
Negotiating Agreement" dated August 7, 1999, all of which claims are
acknowledged by Developer;

5. that certain litigation entitled Artichoke Joe's, et al. v. Norton, et al.
(No. CV-S-01-248 DFL/GGH, E.D. Calif.) filed on February 7, 2001 challenging
the constitutionality of California Constitution Article IV, Section 19 (f), the
effect of which, if successful, cannot be determined but could limit the Tribe's
ability to offer certain gaming in the Tribe's gaming facility (the "Prop lA
Litigation");

6. the opinion of the Attorney General of California dated February 23, 2001
that California "Compacts entered into by the State and 62 federally recognized
Tribes contemplate that the Gambling Control Commission ("GCC") will issue the
licenses for gaming devices pursuant to the Compact's

<PAGE>

provisions;" that the Tribe purchased gaming device licenses that were issued on
or about May 15, 2000 through a process established by the Compact tribes
utilizing the Michael Sides Accountancy Corporation and not by the GCC, although
the State commended the tribes on the process at the time; that gaming devices
operated pursuant to those licenses were not placed in commercial operation
within 12 months of issuance as required under the Compact; that further gaming
device license issuance and other compliance procedures may be necessary to
effectuate the Tribe's right to operate more than 350 gaming devices; and that
further licenses may not be available if and when needed. Members of the GCC
have indicated informally that it is possible that new licenses to replace those
issued through the Sides process will be issued by the GCC and that the one-year
deadline will not begin to run until then, but there has been no formal
announcement to that effect; and

7. a claim or threatened claim by Advent Communications & Entertainment Company
and its partners, affiliates and co-venturers (including each party identified
under "Third Party Disputes" in the Loan Agreement) that the negotiation and
execution of the Loan Agreement is an express breach of the Sonoma Canyon
Documents and/or the Sonoma Falls Documents (as such terms are defined in the
Loan Agreement) and documents related thereto, including an "Exclusive
Negotiating Agreement" dated August 7, 1999, all of which claims are
acknowledged by Developer.

<PAGE>

                                   EXHIBIT G

Specimen of Buy-out Promissory Note

<PAGE>

                                      NOTE

              THIS NOTE IS SECURED BY PERSONAL PROPERTY COLLATERAL

$_______________________                               Sonoma County, California
                                                              ____________, 200_

         This Note is hereby given as of the date written above by DRY CREEK
RANCHERIA BAND OF POMO INDIANS, a federally-recognized Indian tribe with an
address at 498 Moore Lane, #B, Healdsburg, Sonoma County, State of California
95448 ("Maker"), in favor of DRY CREEK CASINO, LLC, which has an address at c/o
Nevada Gold & Casinos, Inc., 3040 Post Oak Boulevard, Suite 675, Houston, Texas
77056 ("Lender").

                                    Recitals

         A. Pursuant to that certain Development and Loan Agreement dated as of
August 26, 2001 ("Loan Agreement") by and between Lender and Maker, Lender will
make certain Development Advances (as such term is defined in the Loan
Agreement) to Maker from time to time, to be evidenced by this Note; and

         B. Pursuant to that certain Security Agreement dated as of the date
hereof ("Security Agreement" and together with this Note and the Loan Agreement,
the "Loan Documents"), this Note shall be secured by the Collateral (as such
term is defined in the Security Agreement), which security interest shall be a
first priority lien on the Collateral (as such term is defined in the Security
Agreement), subject only to enforceable Third Party Liens, as set forth in the
Loan Agreement.

                                  Terms of Note

         NOW THEREFORE, Maker hereby promises to pay to the order of Lender, or
the holder-in-due-course of this Note, ("Holder") the principal sum of
Dollars ($      ), or so much thereof as may be advanced from time to time, and
interest from the date hereof on the balance of principal from time to time
outstanding, in United States currency, at 12% per annum, in accordance with the
terms and conditions set forth below.

         Payment of this Note is governed by the Loan Agreement (including
without limitation, Paragraph 6.9 thereof), the terms of which are incorporated
herein by express reference as if fully set forth herein. Capitalized terms used
herein without a definition shall have the meanings ascribed to them in the Loan
Agreement.

         All payments on this Note shall be applied first to the payment of
accrued and unpaid interest, and the remainder thereon shall be applied to the
reduction of the unpaid principal balance of this Note. At any time when the
unpaid principal balance of this Note is equal to zero, the Holder shall cancel
this Note and redeliver it to the Maker.

<PAGE>

         All payments hereunder shall be made in lawful money of the United
States of America and shall be hand delivered or mailed by prepaid registered
or certified first class mail to the Holder at such place and in such manner as
the Holder shall specify by written notice to the Maker.

         If any payment under this Note is not made when due, the Maker, and
every entity or person who assumes the obligations of this Note, promises to pay
to the Holder all damages and costs of collection, including, without
limitation,, reasonable attorney's fees, whether or not suit is filed hereon.

         Notwithstanding any provision to the contrary contained in this Note,
the Maker shall not be required to pay, and the Holder shall not be permitted to
collect, any amount of interest in excess of the maximum amount of interest
permitted by applicable law ("Excess Interest"). If any Excess Interest is
provided for or determined by a court of competent jurisdiction to have been
provided for in this Note, then in such event: (1) the provisions of this
paragraph shall govern and control; (2) the Maker shall not be obligated to pay
any Excess Interest; (3) any Excess Interest that the Holder may have received
hereunder shall be, at the Holder's option, (a) applied as a credit against the
outstanding principal balance of this Note (not to exceed the maximum amount
permitted by applicable law), (b) refunded to the party which had paid such
Excess Interest, or (c) any combination of the foregoing; and (4) the interest
rate(s) provided for herein shall be automatically reduced to the maximum lawful
rate allowed from time to time under applicable law, and this Note shall be
deemed to have been, and shall be, reformed and modified to reflect such
reduction.

         The Maker waives presentment, demand, protest, notice of protest,
notice of dishonor, notice of nonpayment, and demand and notice of any kind with
respect to this Note.

         No delay or omission on the part of the Holder or any holder hereof in
exercising any rights hereunder or under any other Loan Documents shall operate
as a waiver of any such right or of any other right under the Loan Documents. A
waiver on any one occasion shall not be construed as a bar to or a waiver of any
such right and/or remedy on any future occasion.

         Maker understands, acknowledges and agrees that Maker's obligations and
liabilities hereunder are and shall be separate and independent from, and in
addition to, those under the other Loan Documents and that Maker's obligation
and liabilities hereunder or under the Loan Agreement shall not be deemed merged
into or superseded or satisfied by foreclosure upon the Collateral (as defined
in the Security Agreement).

         Whenever in this Note reference is made to the Maker or the Holder,
such reference shall be deemed to include, as applicable, a reference to their
respective successors and assigns. The provisions of this Note shall be binding
upon and shall inure to the benefit of such successors and assigns, including,
without limitation, a receiver, trustee or debtor in possession of or for the
Maker or the Holder.

         All communications required or permitted under this Note shall be in
writing and shall be delivered in accordance with the notice provisions of the
Loan Agreement.

                                       2
<PAGE>

         This Note may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of
the Maker or Holder, but only by an agreement in writing signed by the party
against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

         This Note, made in the State of California, shall be construed and
enforced according to the laws of the State of California, and if any provision
of this Note is in conflict with the laws of the State of California or is
otherwise unenforceable for any reason, then such provision shall be deemed
separable from and shall not invalidate any other provisions of this Note.

         Maker agrees, covenants, represent and warrants that the Loan proceeds
shall be used solely as set forth in the Loan Agreement and not for personal,
family or household purposes. Maker further represents and warrants as follows:
Maker is a federally-recognized Indian tribe with full power and authority to
give this Note. This Note has been duly authorized, executed and delivered by
Maker and constitutes the valid and legally binding obligations of Maker,
enforceable in accordance with its terms against Maker. The execution and
delivery of this Note by Maker and the performance of its duties and obligations
hereunder do not result in a breach of any of the terms, conditions or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, credit agreement, note or other evidence of indebtedness, or any lease or
other agreement, or any license, permit, franchise or certificate to which Maker
is a party or by which it is bound or to which its properties are subject or
require any authorization or approval under or pursuant to any of the foregoing,
or violate any applicable laws, or require any governmental consent that Maker
has not already obtained.

         IN WITNESS WHEREOF, Maker has caused this Note to be duly executed and
delivered by its duly authorized officers as of the day first above written.

                                  DRY CREEK RANCHERIA BAND OF POMO
                                  INDIANS, a federally-recognized Indian tribe

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

                                       3<PAGE>
                                                                   EXHIBIT 10.9

Final Execution Copy

                 AMENDMENT TO THE DEVELOPMENT AND LOAN AGREEMENT

         This Amendment to the Development and Loan Agreement (the original
agreement referred to herein as the "Agreement") dated as of April 29, 2002 (the
amendment referred to herein as the "Amendment"), is made between the Dry Creek
Rancheria Band of Pomo Indians, a federally-recognized Indian tribe (the
"Tribe") and Dry Creek Casino, LLC, a Texas limited liability company (the
"Developer").

RECITALS

         A. Tribe and Developer entered into the Agreement pursuant to which
Developer agreed to assist Tribe in the development and financing of a temporary
casino ("Facility") capable of being opened as soon as possible ("Commencement
Date"), on the terms and conditions set forth in the Agreement, as amended
herein.

         B. Subsequent to execution of the Agreement, Tribe and Developer
determined that the original Project plan should be revised to reflect certain
changed circumstances.

         C. This Amendment modifies the Agreement to reflect the current needs
of Tribe related to development of the Project.

         NOW THEREFORE, in consideration of the representations, warranties and
mutual promises contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows

         1. Definitions; Terms defined in the Agreement. All capitalized terms
used in this Amendment and not otherwise defined herein shall have the meanings
assigned to them in the Agreement.

         2. Amendments to the Agreement. The Agreement shall be amended as
follows:

         (a) Exhibit "A" of the Agreement is deleted and replaced with Exhibit
"A-1" to this Amendment, and the definition of "Cost Budget" is deleted and
replaced with the following:

         "Cost Budget" means the budget attached hereto as Exhibit "A-1" setting
    forth the approximate costs the parties anticipate will be incurred in order
    to prepare the Project for the Commencement Date and for Project completion,
    and including certain costs incurred by the Tribe in connection with
    conducting gaming on the Reservation prior to the execution of this
    Agreement. The Cost Budget is to be funded from the Development Advances,
    Loan proceeds, purchase money and/or third party financing as contemplated
    in the Cost Budget and, to the extent required, cash flow from the Facility.

                                       1
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         (b) The definition of "Final Completion Date" is deleted and replaced
with the following:

         "Final Completion Date" means the date on which the Facility is opened
    to the public, which date shall be 210 days after execution of this
    Agreement (unless the contractor can complete construction sooner within the
    approved budget), subject to the terms set forth in Section 2.13 hereof.

         (c) The definition of "Lender" is deleted and replaced with the
following:

         "Lender" means one or more parties which may be third-party federally
    or state regulated banks or savings and loan institutions subject to
    exemption from the licensing requirements of the Compact, or any other
    individual or entity that is found suitable for licensing by the TGC, that
    alone or together, through Developer's efforts and pursuant to the
    Commitment, agree to provide the Loan to Tribe for the Project. Developer
    may act as Lender.

         (d) Exhibit "C" of the Agreement is deleted and replaced with Exhibit
"C-la" to this Amendment.

         (e) Exhibit "E" of the Agreement is deleted and replaced with Exhibit
"E-1" to this Amendment. The definition of "Commitment" is deleted and replaced
with the following:

         "Commitment" means the Loan placement commitment letter attached as
    Exhibit E-1 from Developer, which Developer has obtained on behalf of Tribe
    in the amount of $15 million; provided that the Lender (as set forth in
    Exhibit E-1) may be Developer or Nevada Gold & Casinos, Inc.

         (f) The definition of "Net Revenues" is deleted and replaced with the
following:

         "Net Revenues" means the Gross Revenues less Operating Expenses,
    provided that in the case of Gross Revenues derived from gaming, such
    revenues shall be net of prizes and payouts (including jackpots) so as to
    represent the "win" as referred to by accountants familiar with the gaming
    industry.

         (g) The following definition is added to the Agreement:

         "Proschold-Cadd Matter" means the dispute alleged in the matter
    stylized Terrance C. Proschold et al. v. United States Of America, U.S.D.C.
    (ND Cal), No. 01-2390 SBA, the legal cost of participating in which by the
    Tribe, as an intervenor or otherwise, shall be advanced by Developer as
    Qualified Costs as incurred, subject to receipt of a written budget and
    Developer's prior written approval of same, and

                                       2
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     the meaningful participation of Developer in an advisory role in all legal
     strategy and settlement discussions. All reasonable costs of defending this
     Third Party Dispute and any liability, damages, demands, losses, costs or
     expenses incurred by Developer or Tribe shall not be an Operating Expense
     and shall be paid by the Tribe from its share of Net Revenues when
     incurred.

         (h) The definition of "Third-Party Disputes" is deleted and replaced
with the following:

         "Third-Party Disputes" means all disputes or claims relating, directly
    or indirectly, to any Gaming on the Reservation, the Sonoma Canyon
    Documents, the Sonoma Falls Documents, the Proschold-Cadd Matter, failure of
    tribal members to relocate from the Site, any claimed agreements between the
    Tribe and any third party, Gross Revenues, the Facility or any Collateral,
    and brought by a person or entity not a party to this Agreement, against the
    Tribe, Developer, Lender, or the Credit Enhancer, with respect to a claim
    which, if successful, would materially affect Developer's economic rights
    under this Agreement.

         (i) Sections 2.2 and 2.2.1 are deleted and replaced with the
following Section 2.2:

         2.2 Loan Commitment. Developer shall use its best efforts to arrange
    for the Tribe to receive Loan proceeds, per the terms and conditions of the
    Financing Documents, which shall be executed as soon as practicable, in the
    amount of Fifteen Million and No/00 Dollars ($15,000,000), a portion of
    which shall be used to pay Developer all amounts advanced as Development
    Advances (in total, the "Loan") to be disbursed for the payment of Qualified
    Costs to facilitate the immediate commencement of development and
    construction activities with respect to the Project. Developer (or one or
    more of its LLC Members) may act as lender or guarantor (in either case
    referred to as the "Credit Enhancer") of the Loan, in case of a guaranty to
    the extent a guaranty is required by the Lender. Lender may substitute a
    third party to act as Credit Enhancer provided such party meets all the
    Legal Requirements for lending funds to the Project, agrees to the terms and
    conditions agreed to by Developer under this Agreement, and does not require
    any delay in the commitments made by Developer herein. Tribe and Developer
    hereby consent to the terms and conditions of the Commitment. Tribe agrees
    to execute the Financing Documents as borrower, provided they conform in
    material part to the Commitment and this Agreement and subject to Tribe's
    reasonable approval. Developer agrees to execute the Financing Documents as
    lender or guarantor, provided they conform in material part to the
    Commitment and this Agreement and subject to Credit Enhancer's reasonable
    approval.

         (j) Section 2.3 is deleted and replaced with the following Section 2.3:

                                       3
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         2.3 Tribe shall execute all Financing Documents reasonably required,
    upon commercially reasonable terms and consistent with this Agreement, to
    enable Developer to timely meet the Loan funding obligations herein. In the
    event that the Tribe has not timely executed the Financing Documents in
    accordance with this Agreement by May 1, 2002, or Developer has not caused
    the Loan described in Section 2.2 above to fund by such date, either through
    the Commitment or otherwise, this Agreement shall thereupon be null and
    void, and neither party shall have any further or continuing obligation to
    the other, except that (a) Tribe's obligation to repay the Development
    Advances in accordance with the provisions of Section 2.1.1, (b) all
    provisions herein related to security granted by Tribe to secure repayment
    of said Development Advances, and (c) all remedies granted to Developer
    hereunder to enforce Tribe's obligations under Section 2.1.1 (including
    without limitation Sections 4.5, 5.2, 5.3, and 5.4) shall remain in full
    force and effect. Further, in the event that the Loan is available for
    funding in accordance with the terms of the Commitment by May 1, 2002, then
    any failure of the Tribe to accept such funding, whether as a result of its
    failure to execute any of the Financing Documents reasonably required, upon
    commercially reasonable terms, and consistent with this Agreement and the
    Commitment, or to reasonably satisfy any material condition precedent to
    funding set forth in this Agreement or any of the Financing Documents which
    is within the control of the Tribe, shall be deemed to be and shall
    constitute an exercise by the Tribe of the Buy-Out Option provided for in
    Section 6.9 of this Agreement.

         (k) Section 2.3.1 (4) is added to the Agreement as follows:

             (4)  a certificate from the Secretary of the Board of Directors,
                  duly elected by the Tribal Council that the Tribe has approved
                  the Agreement, this Amendment, and the Financing Documents, at
                  a duly authorized meeting conducted in accordance with all
                  Tribe governing instruments.

         (1) Section 2.11(b) is deleted and replaced with the following Section
             2.11(b):

             (b)  current principal, interest (to the extent, if any, not paid
                  as part of the month's Operating Expenses, which interest will
                  include interest payments on the amounts received pursuant to
                  the Financing Documents, and which will paid prior to any
                  payments under this Section 2.11), and any other payments due
                  pursuant to the Financing Documents, the Note, and principal
                  payments on any capital leases.

                                       4
<PAGE>

Final Execution Copy

         (m) Section 2.12 is added to the Agreement as follows:

         2.12 Tribe and Developer acknowledge that Developer and/or Lender may
    be required to subordinate any security interests it may have in the
    Collateral to a third-party, in connection with the Tribe's purchase or
    lease of Furnishings and Equipment or in connection with the Tribe's efforts
    to obtain alternate financing for the Project in the event the Lender ceases
    funding as provided herein and in the Financing Documents. Each of Tribe and
    Developer agrees to execute all documentation required to effect such
    subordination.

         (n) Section 2.13 is added to the Agreement as follows:

         2.13 The Final Completion Date, as defined herein, will be tolled for
    any period(s) during which construction of the Facility or Project is
    prevented through equitable court orders entered in any existing Third Party
    Dispute. In addition to the foregoing, the Final Completion Date may be
    tolled by mutual agreement of the parties working in a close and cooperative
    manner, which agreement shall not be unreasonably withheld, based on a
    commercially reasonable conclusion that ingress and egress to the Facility
    or the Project will be insufficient to serve the public in a manner that
    renders the Project economically feasible. Notwithstanding anything in this
    Agreement to the contrary, in the event any tolling period herein exceeds
    two (2) years or in the event the parties cannot reach mutual agreement as
    discussed above, neither party shall have any further or continuing
    obligation to the other except as follows: (a) Tribe's obligations to repay
    any outstanding Loan Proceeds as provided hereunder on a pari passu basis
    with any other party(ies) that provide financing to the Tribe to complete,
    in whole or in part, the Facility or the Project, (b) Tribe's obligations to
    repay any outstanding Development Advances in accordance with the provisions
    of Section 2.1.1 hereof, the repayment of which shall be made on a pari
    passu basis with any other party(ies) that provide financing to the Tribe to
    complete, in whole or in part, the Facility or the Project (c) the Tribe's
    right to obtain additional financing to complete the Facility or the
    Project, (d) the Developer's right to cease funding the Facility or the
    Project, and (e) Developer's and Tribe's agreement that Developer's Credit
    Enhancement Fee will be reduced to the product resulting from multiplying
    the Credit Enhancement Fee by a fraction, the numerator of which will equal
    to the total amount of the outstanding Financing plus the amount of any
    guaranties made by Developer related to the Project (reduced to the extent
    of any release of such guaranties that the Tribe obtains following
    Developer's election to cease funding), and the denominator of which will
    equal the total cost of the Project per the attached Cost Budget, and that
    such Credit Enhancement Fee will be paid on a pari passu basis with any
    other party(ies) that provide financing to the Tribe to complete, in
    whole or in part, the Facility or the Project. The foregoing (a) - (e) of
    the above sentence represents the exclusive rights and remedies of the
    parties in the event any tolling period herein exceeds two (2) years or in
    the event the parties cannot reach mutual agreement.

         (o) Section 4.2(c) is deleted and replaced with the following Section
2.11(b):

                                        5

<PAGE>

Final Execution Copy

         (c) Tribe has duly authorized the execution and delivery of this
    Agreement on the terms described herein. No further act or approval of
    Tribe, other than the TGC (as required under the Compact), is required as a
    condition for entering into or fully performing under this Agreement. This
    Agreement, as amended, has been ratified and approved by the Tribe, in
    accordance with all applicable laws, rules, or regulations of the Tribe.

         (p) Section 4.6 is added to the Agreement as follows:

         4.6 It is anticipated that Developer (or one or more of its LLC
    Members) will be required to provide guaranties to various vendors and/or
    financial institutions related to development of the Project (including,
    without limitation, with relation to the Furnishings and Equipment). Tribe
    agrees to pay to the guarantor, as described in the preceding sentence, upon
    demand, any and all amounts that shall hereafter be paid by such guarantor
    to any vendor or financial institution under any guaranties, together with
    interest on such amounts at the rate of 12% per annum from the date so paid
    by guarantor until such amounts are reimbursed to guarantor hereunder. To
    secure its obligations under this section, Tribe agrees that its
    obligations under this section are considered "Obligations" secured as set
    forth in the Security Agreement dated August 26, 2001, as amended.

         (q) Section 4.7 is added to the Agreement as follows:

         4.7 Within five (5) business days of execution of this Amendment, Tribe
    agrees to submit this Amendment, the Financing Documents, and all exhibits
    to such documents (collectively, the "Transaction Documents") to the NIGC
    for review and request a letter of declination confirming that the
    Transaction Documents will not be deemed to constitute management contracts
    as described in 25 U.S.C. ss. 2711. If the NIGC has any comments to such
    submission, or any prior submission, both parties agree to work in good
    faith to resolve any such comments, on an expedited basis, and to retain, as
    nearly as possible, the business terms of this Agreement. In no event shall
    Lender's obligations to fund the Loan pursuant to the terms hereof and the
    Financing Documents be delayed by the provisions of this Section 4.7. Tribe
    represents that it has submitted its request for a letter of declination to
    the NIGC in January 2002 and resubmitted same in February 2002 but has not
    heard back either orally or in writing from the NIGC other than with respect
    to the resubmission.

         (r) Section 6.9(b) of the Agreement is deleted and replaced in its
    entirety with the following:

                                       6
<PAGE>

Final Execution Copy

         b. In the event the Buy-Out Option is exercised prior to the
         Commencement Date, and the Tribe engages in gaming within six years
         after the Buy-Out Option is exercised, the Buy-Out Fee shall be
         determined and paid from the date such gaming commences, based on the
         Credit Enhancement Fee that would have been payable if the Buy-Out
         Option had not been exercised, subject to the adjustments provided
         below in this subparagraph b and in subparagraph c, and continuing to
         the end of the second full year of operation and the recomputation of
         the Base Fee in accordance with subparagraph c, provided that in the
         event the aggregate amount of the Financing actually funded plus all
         guaranties of Developer in respect of the Project are less than the
         aggregate of $15,000,000 plus all guaranties of Developer as
         contemplated in the approved Cost Budget, attached hereto at Exhibit
         A-1, due to (i) a refusal of Lender to fund the Loan solely as a result
         of any failure or breach of Developer, or any other reason not under
         Tribe's control, that is not cured by Developer within 30 days after
         written notice to Developer, or (ii) the development and construction
         of the Project being permanently enjoined as a result of a court order
         arising from a Third-Party Dispute that is final and non-appealable
         (the "Cessation Order"), and all amounts outstanding with respect to
         the Financing, including amounts owed to the Lender with respect to the
         Loan and the outstanding balance owing by Tribe to Developer under this
         Agreement, including outstanding Development Advances and accrued
         interest, have been paid in full no later than twelve (12) months
         following the entry of the Cessation Order, then in any such event the
         Credit Enhancement Fee percentage (20%) shall be reduced proportionally
         based on the same ratio set forth in subsection (e) of Section 2.13.
         Nothing in this Section shall be construed as granting Developer any
         additional rights in the event this Agreement is terminated pursuant to
         Section 2.3 hereof.

         (s) Section 6.9.f. is added to the Agreement as follows:

         f. It is anticipated that Developer (or one or more of its LLC Members)
         will be required to provide guaranties to various vendors and/or
         financial institutions related to development of the Project
         (including, without limitation, with relation to the Furnishings and
         Equipment). Tribe agrees that prior to execution of the Buy-Out Option,
         it will use its best efforts to negotiate and obtain an unconditional
         and absolute release of all guaranties made by Developer (or one or
         more of its LLC Members).

                                       7
<PAGE>

Final Execution Copy

         3. Miscellaneous

            (a) Authority. Tribe has taken all action required by Tribe's laws,
its Articles of Association and the laws of the United States and all other
applicable laws to authorize the execution, delivery and performance of this
Amendment. Tribe and Tribe's Board of Directors represent and warrant that
Tribe's resolution, dated August 26, 2001 (Resolution No. 01-08-026-001)
provides the specific authority to enter into this Amendment and the Financing
Documents.

            (b) Agreement Otherwise Not Effective. Except as expressly amended
hereto, the Agreement shall remain unchanged and in full force and effect
(including, without limitation, Section 5.4 of the Agreement, which is
applicable to this Amendment) and is hereby ratified and confirmed in all
respects.

            (c) Reference within the Agreement. Each reference in the Agreement
to "this Agreement" and the words "hereof," "herein," "hereunder," or words of
like import, shall mean and be a reference to the Agreement as amended by this
Amendment. For the avoidance of doubt, this shall include, without limitation,
Section 5.3 of the Agreement.

            (d) Complete Agreement; Amendments. This Amendment together with the
Agreement and any attachments hereto (including the schedules, exhibits and
annexes hereto and thereto), and the documents delivered pursuant to the
Agreement or Amendment constitute the entire agreement and understanding among
the parties and supersede any prior written agreement and understanding relating
to the subject matter thereto. This Amendment may not be modified, amended or
otherwise altered except in accordance with the terms of the Agreement.

            (e) Reformation and Severability. In case any provision of this
Amendment shall be invalid, illegal, unenforceable, it shall, to the extent
possible, be modified in such manner as to be valid, legal, and enforceable but
so as to most nearly retain the intent of the parties, and if such modification
is not possible, such revision shall be severed from this Amendment and in
either case the validity, legality, and enforceability of the remaining
provisions of this Amendment shall not be in any way affected or impaired
hereby.

            (f) Counterparts. This Amendment may be executed simultaneously in
counterparts, each of which shall be deemed an original and all of which
together shall constitute but one and the same instrument.

            (g) Release of Claims. Tribe has heretofore asserted that Developer
has or may have breached its obligations to Tribe under the Agreement,
including, without limitation, the failure of Developer or its affiliates to
fulfill its obligations under the Commitment. Developer has disputed these
assertions and maintained that the Tribe did not furnish complete and accurate
disclosures concerning access to the Project. Notwithstanding these various
assertions between the parties, Tribe and Developer have determined to resolve
their contentions and assertions by this Amendment, and to describe and limit
the rights and remedies of the parties regarding such

                                       8
<PAGE>

Final Execution Copy

execution of this Amendment, Tribe has not breached its obligations under the
Agreement (and Developer presently knows of no facts that would or could give
rise to any claim against Tribe), nor has Tribe committed an event of default
pursuant to Section 5.1 of the Agreement (and Developer presently knows of no
facts that would represent such an event of default). Tribe acknowledges and
agrees that as of the date of execution of this Amendment, Developer (including
its affiliates) has not breached its obligations under the Agreement (and Tribe
presently knows of no facts that would or could give rise to any claim against
Developer or its affiliates), nor has Developer (including its affiliates)
committed an event of default pursuant to Section 5.1 of the Agreement (and
Tribe presently knows of no facts that would represent such an event of
default). To the extent that any such claims presently exist between the
parties, Tribe and Developer hereby waive and release one another from all such
claims and causes of action of any type whatsoever, including, without
limitation, those arising out of or relating to the various assertions and
contentions between the parties discussed in this paragraph, whether known or
unknown. The term "affiliates" means the limited liability company members of
Developer.

            (h) Additional Representations and Warranties.

                (i) Both parties represent and warrant that neither party has
        made any representations to the other party concerning the matters
        addressed in the Agreement and this Amendment, except as expressly set
        forth in such documents.

                (ii) Both parties represent and warrant that neither party has
        relied upon any statements not expressly set forth in the Agreement and
        this Amendment, in entering into this Amendment.

                (iii) Both parties represent and warrant that they have entered
        into this Amendment on their own free will, without compulsion or
        duress, and after consultation with their legal counsel.

         (i) Exhibit F-1 of the Agreement is deleted and replaced in its
entirety with Exhibit F-la to this Amendment, attached hereto.

                (Remainder of this page intentionally left blank)

                                       9
<PAGE>

Final Execution Copy

         IN WITNESS WHEREOF, Developer and Tribe have executed this Agreement as
of this 30th day of April, 2002, effective as of the date first written above
upon approval of the Tribe's Tribal Council, and ratification of such approval
by the Tribe.

DRY CREEK CASINO, LLC                        DRY CREEK RANCHERIA BAND
                                             OF POMO INDIANS

By: /s/ H. Thomas Winn                       By: /s/ Elizabeth Elgin DeRouen
   -------------------------------              -------------------------------

Title: Manager                               Title: Chairperson
      ----------------------------                 ----------------------------

                         [Signature page to Amendment]

                                       10
<PAGE>

Final Execution Copy                  Exhibit Index
Cost Budget............................................................. A-1
Expense Budget...........................................................C-1
Commitment Letter........................................................E-1
Disclosures.............................................................F-la

                                       11
<PAGE>

                                  EXHIBIT A-1

Cost Budget

<PAGE>

                          River Rock Temporary Casino
    Preliminary Conceptual Budget of Development costs & Protection of Costs
                               through 5/31/2002
Based on Tribal Budget Revision #1a
                        4/30/2002  Revision 1
    Phase 1 Costs Only
    ------------------

<TABLE>
<CAPTION>

                                                                                  Phase 1a     Phase 1a    Phase 1b  Phase 1a+1b
                                                                                  Incurred     Pending     Pending     Pending
                                      LLC      Deferred     PDS         Total     Changes       Total       Total      Total
<S>   <C>                          <C>         <C>        <C>         <C>         <C>         <C>         <C>        <C>
 1.0  Site Construction            1,417,597    200,000   1,130,005   5,447,601   1,500,000   6,941,601   1,000,000   7,947,601
 2.0  Permanent Casino
      Construction                         -          -           -           -           -           -           -           -
 3.0  Site Architecture
      & Engineering                  770,000    145,000           -  915,000,00     185,000   1,100,000      89,000   1,169,000
 4.0  Casino Architecture
      & Engineering,
      Temp Casino                    632,500     76,500           -     711,000     40,000      751,000           -     751,000
 5.0  Additional
      Development Costs            2,792,988    505,791           -   3,298,777  1,422,423    4,721,200           -   4,721,200
 6.0  Temporary Casino
      Construction                 1,059,267     45,000   2,418,271   6,522,558  1,678,640    8,401,398     931,000   9,332,398
 7.0  FF&E, Special
      Equipment &
      Services                        76,500          -  20,746,724  20,823,224 (1,059,274)  18,863,950   1,148,000  20,011,950
 8.0  Pro-Opening
      Expense                      1,100,000    300,000           -   2,400,000          -    2,400,000           -   2,400,000
 9.0  Working Capital &
      Opening Deficit                400,000          -           -     400,000          -      400,000           -     400,000
10.0  Project Contingency            750,000          -           -     750,000          -      750,000           -     750,000
                                 -------------------------------------------------------------------------------------------------
       Total for
        Temporary
         Casino                   11,999 869  1,274.291  24,905 000  41,268,160  3,066,969   44,335,150   3,146,000  47,483,150
                                 -------------------------------------------------------------------------------------------------
          Total
          Budget                  11,000,000                         41,268,160              44,335,150
                                 -------------------------------------------------------------------------------------------------

           Phase
           1+0.
           F. P. Costs                       16,273,160

 1.0  On & Off Site
      Construction
      (12 Acres)                   1,417,597    200,000   1,830,005   5,447,601  1,500,000    6,947,601   1,000,000   7,947,601
10.7  Marquee & On-Site Signage
      Subtotal 1.01-1.09                   -                      -
1.10  Traffic Signaling                    -                      -
      & Controls                           -                      -
      Subtotal
       1.10 -1.12                          -                      -
      Subtotal
       1.13-1.15                   1,417,597    200,000   1,830,005   5,447,601  1,500,000    6,947,601   1,000,000   7,947,601
                                 -------------------------------------------------------------------------------------------------
      Total Site
       Development                 1,417,597    200,000   1,830,005   5,447,601  1,500,000    6,947,601   1,000,000   7,947,601
       (1.01-1.16)

3.0   Architecte, Enginnrs
      & Design Services
      for Site &
      Related Construction
3.01  Land Planning
      & Expenses                      50,000          -                  50,000                  50,000                  50,000
3.02 Site Engineering
     & Expenses                      530,000     35,000                 565,000    185,000      750,000      39,000     789,000
3.03 Environmental
      Revisions                       80,000                             80,000                  80,000                  80,000
3.04 SWPP Revision                     5,000                              5,000                   5,000                   5,000
3.05 Geotechnical
     Consultant                       10,000                             10,000      5,000       15,000                  15,000
3.06 Hydrology &
     Well Analysis                    15,000                             15,000                  15,000                  15,000
3.07 Municipality
     Approvals &
     Fees (Deferred)                       -    100,000                 100,000                 100,000                 100,000
3.08 Landscape
     Architecture
     & Expenses                       60,000     10,000                  70,000    (30,000)      40,000      30,000      70,000
3.09 Site Related
     Structural &
     Engineering                      10,000                             10,000      25,000      35,000                  35,000
3.10 Sight Lighting,
      Electrical
      Engineering                     10,000          -           -      10,000          -       10,000           -      10,000
                                 -------------------------------------------------------------------------------------------------
      Subtotal
       3.01-3.05                     770,000    145,000           -     915,000    185,000    1,100,000      69,000   1,160,000

4.0  Architecture,
     Engineers &
     Casino Design
4.01 Architecture
     Engineering &
     Expenses,
     (MEPS in                        477,500     52,500                 530,000                 530,000           -     530,000
4.02 MEPS Consultant                  40,000    11,000                   61,000     10,000       61,000                  61,000
4.03 Plan Check &
     Inspections
     Consultant to
     Tribe                            85,000     15,000                  80,000     30,000      110,000                 110,000
4.04 Food Service
     Design                           10,000                             10,000                  10,000                  10,000
4.05 Corporate Identity
     & Graphic Design
     & Expenses                       40,000                             40,000                  40,000                  40,000
4.06 Interior Architecture
     & Theme Design
     & Expenses                            -         -         -               -         -            -           -           -
                                 -------------------------------------------------------------------------------------------------
     Subtotal
      4.01-4.04                      632,501    78,500         -         711,000    40,000      751,000           -     751,000

5.0  Additional
     Development
     Costs
5.01 Legal
     Contingency                     150,007   200,000                   350,000   233,000      583,000                 583,000
5.02 Accounting                            -                                   -   200,000      200,000                 200.000
5.03 Insurance                        25,000                              25,000    18,000       43,000                  43,000
5.04 Finance
     Placement Fees                  410,000   170,440                   580,440                580,440                 580,440
5.05 Construction
     Interest
     POS Lease
     Payments                        489,760                             489,760                489,760                 489,760
5.06 Tribal
     Relocation and
     G & A Fund                    1,693,228   135,351                 1,828,577   871,423    2,700,000               2,700,000  2
5.07 Market
     Feasibility
     Study(s)                         25,000                              25,000                 25,000                  25,000
5.08 Environmental
     Assessment                            -                                   -                      -                       -
5.09 Traffic Study                         -                                   -                      -                       -
5.10 Generator Deposit                     -                                   -   100,000      100,000                 100,000
5.11 Consulting &
     Technical Services
     Fee                                   -         -         -               -         -            -           -           -
                                 -------------------------------------------------------------------------------------------------
     Subtotal
     5.01-5.11                     7,792,916   505,791         -       3,298,777 1,422,423    4,721,200           -   4,721,200  3

6.0  Temporary
     Casino
     Construction
6.00 Construction
     Management Fee
     & Expenses                      282,505    45,000                   327,595   121,405      449,000      31,000     480,000
6.01 Temp Construction
     (See Attached
     Detail)                       3,776,682         - 2,418,271       6,141,963 1,757,438    7,952,399     900,000   8,852,399
6.02 Architecture &
     Engineering,
     (See 4.01)                            -         -         -               -         -            -           -           -
                                 -------------------------------------------------------------------------------------------------
     Subtotal
     6.01-6.10                     4,059,207    45,000 2,418,271       6,522,558 1,878,640    8,401,391     931,000   9,332,391

7.0  FF&E, Special
     Equipment &
     Sarvices
7.01 Testing
     Allowance                        40,000                              40,000                 40,000                  40,000
7.02 Casino FF&E,
     Office Furniture
     & Cubicles
     (partial Lease)                   6,500             645,924         652,424   379,576    1,032,000     213,000   1,245,000
7.03 Computers                     Lease-Pur            Included               -   120,000      120,000                 120,000
7.04 Slot Repair
     Equip                         Lease-Pur            Included               -    10,000       10,000                  10,000

<CAPTION>

                                   Min to
                                   5/31/02                                                                 Casino
                                   w Cons-                                                                  Opens
                                  truction      Jun         Jul          Aug         Sep         Oct         Nov         Dec
<S>   <C>                         <C>        <C>         <C>         <C>         <C>        <C>         <C>           <C>
 1.0  Silo Construction            716,547   1,677,919   1,888,952     719,911     700,000     600,000     600,000     744,265
 2.0  Permanent Casino
      Construction                       -           -           -           -           -           -           -           -
 3.0  Site Architecture
      & Engineering                903,650      45,000      42,500      33,640      22,500      25,060      27,500           -
 4.0  Casino Architecture
      & Engineering,
      Temp Casino                  495,407      50,000     125,000      12,500      12,500      20,000      20,000      15,593
 5.0  Additional
      Development Costs          3,029,163     547,573     274,014     410,619     275,887     164,438     108,000           -
 6.0  Temporary Casino
      Construction                 527,707     575,847     764,319   1,119,261   1,316,364  1,497,948   1,3509,664   1,249,209
 7.0  FF&E, Special
      Equipment &
      Services                     505,000      20,000       5,000   1,050,000     400,000  11,115,000   3,753,950   2,015,000
 8.0  Pro-Opening
      Expense                      610,271     200,000     225,000     225,000     265,564     326,584     527,869           -
 9.0  Working Capital &
      Opening Deficit                    -           -           -           -           -     150,000     250,900           -
10.0  Project Contl                      -           -           -           -           -     300,000     450,000           -
                                ------------------------------------------------------------------------------------------------
       Total for
        Temporary
         Casino                  6,787,955   1,116,339   2,624,845  3,571,138    3,012,855  14,185,860   7,087,983   4,024,067
                                ------------------------------------------------------------------------------------------------
          Total
          Budget
                                ------------------------------------------------------------------------------------------------

           Phase 1+0.
           F. P. Costs           6,787,955   8,036,721   9,490,052  10,829,231  12,345,615 13,943,615   15,000,000

 1.0  On 6 Off Silo
      Construction
      (12 Acres)                   716,547   1,677,919   1,188,952     719,918     700,000     600,000     600,000     600,000
10.7  Subtotal 1.01-1.09
1.10  Traffic Signaling
      & Controls
      Subtotal
       1.10 -1.12
      Subtotal
       1.13-1.15                   716,547   1,677,919   1,188,952     719,918     700,000     600,000     600,000     600,000
                                ------------------------------------------------------------------------------------------------
      Total Site
       Development                 716,547   1,677,919   1,188,952     719,918     700,000     600,000     600,000     600,000
       (1.01-1.16)

3.0   Architecte, Enginnrs
      & Design Services
      for Site &
      Related Construction
3.01  Land Planning
      & Expenses                    28,660      15,000       5.000       1.140
3.02 Site Engineering
     & Expenses                    700,000      25,000      15,000      10,000
3.03 Environmental
      Revisions                     80,000
3.04 SWPP Revision                   5,000
3.05 Georechnical
     Consultant                     15,000
3.06 Hydrology &
     Well Analysis                  15,000
3.07 Municipality
     Approvals &
     Fees (Deferred)                     -                  20,000      20,000      20,000      20,000      20,000
3.08 Landscape
     Architecture
     & Expenses                     15,000       5,000       2,500       2,500       2,500       5,000       7,600
3.09 Site Related
     Structural &
     Engineering                     35,000
3.10 Sight Lighting,
      Electrical
      Engineering                    10,000          -           -           -           -           -           -           -
                                ------------------------------------------------------------------------------------------------
      Subtotal
       3.01-3.05                   903,660      45,000      42,500      33,640      22,500      25,000      27,500           -

4.0  Architecture,
     Engineers &
     Casino Design
4.01 Architecture
     Engineering &
     Expenses,
     (MEPS in                      434,407                  90,000                                                       5,593
4.02 MEPS Consultant                36,000       5,000       5,000       2,500       2,500       5,000       5,000
4.03 Plan Check &
     Inspections
     Consultant to
     Tribe                          25,000      15,000      10,000      10,000      10,000      15,000      15,000      10,000
4.04 Food Service
     Design                                     10,000
4.05 Corporate Identity
     & Graphic Design
     & Expenses                                 20,000      20,000
4.06 Interior Architecture
     & Theme Design
     & Expenses                                      -           _           -           -           -           -           -
                                ------------------------------------------------------------------------------------------------
     Subtotal
      4.01-4.04                    495,407      50,000     125,000       12,500     12,500      20,000      20,000      15,583

5.0  Additional
     Development
     Costs
5.01 Legal
     Contingency                   450,000      25,000      25,000       25,000      25,000     25,000       8,000
5.02 Accounting                                      -           -      100,000                            100.000
5.03 Insurance                      43,000
5.04 Finance
     Placement Fees                350,000     230,440
5.05 Construction
     Interest
     POS Lease
     Payments                       32,000      80,387      94,901      108,292     123,458 139,435.63
5.06 Tribal
     Relocation and
     G & A Fund                  2,129,183     111,766     154,113      177,527     127,431
5.07 Market
     Feasibility
     Study(s)                       25,000
5.08 Environmental
     Assessment
5.09 Traffic Study
5.10 Generator Deposit                         100,000
5.11 Consulting &
     Technical Services
     Fee                                             -           _           -           -           -           -           -
                                ------------------------------------------------------------------------------------------------
     Subtotal
     5.01-5.11                   3,029,163     547,573     274,014     410,619     275,887     164,436     108,000           -

6.0  Temporary
     Casino
     Construction
6.00 Construction
     Management Fee
     & Expenses                    148,336      35,000      40,000      40,000      40,000      50,000      50,664      45,000
6.01 Temp Construction
     (See Attached
     Detail)                       379,371     540,847     724,379   1,079,261   1,276,364   1,447,948   1,300,000   1,204,209
6.02 Architecture &
     Engineering,
     (See 4.01)                          -           -           -           -           -           -           -           -
                                ------------------------------------------------------------------------------------------------
     Subtotal
     6.01-6.10                     527,707     575,647     764,379   1,119,261   1,316,384   1,497,948   1,350,664   1,249,209

7.0  FF&E, Special
     Equipment &
     Sarvices
7.01 Testing
     Allowance                      25,000      10,000       5,000
7.02 Casino FF&E,
     Office Furniture
     & Cubicles
     (partial Lease)                     -           -           -     100,000     200,000     300,000     232,000     200,000
7.03 Computers                           -           -           -           -           -      40,000      40,000      40,000
7.04 Slot Repair
     Equip                               -           -           -           -           -      10,000           -           -

<CAPTION>

                                      Total
<S>   <C>                          <C>           <C>
 1.0  Silo Construction             6,947,601           0
 2.0  Permanent Casino
      Construction                          -           -
 3.0  Site Architecture
      & Engineering                 1,100,000           -
 4.0  Casino Architecture
      & Engineering,
      Temp Casino                     751,000           -
 5.0  Additional
      Development Costs             4,809,892     (88,692)
 6.0  Temporary Casino
      Construction                  8,401,399          (1)
 7.0  FF&E, Special
      Equipment &
      Services                     18,863,950          (1)
 8.0  Pro-Opening
      Expense                       2,400,000           -
 9.0  Working Capital &
      Opening Deficit                 400,000           -
10.0  Project Contl                   750,000           -
                                 -----------------------
       Total for
        Temporary
         Casino                    44,423,842           -
                                 -----------------------
          Total
          Budget
                                 -----------------------

           Phase 1+0.
           F. P. Costs

 1.0  On 6 Off Silo
      Construction
      (12 Acres)                      744,265   6,947,601
10.7  Subtotal 1.01-1.09
1.10  Traffic Signaling
      & Controls
      Subtotal
       1.10 -1.12
      Subtotal
       1.13-1.15                      744,285   6,347,601
                                 -----------------------
      Total Site
       Development                    744,285   6,347,601
       (1.01-1.16)

3.0   Architecte, Enginnrs
      & Design Services
      for Site &
      Related Construction
3.01  Land Planning
      & Expenses                                   50,000
3.02 Site Engineering
     & Expenses                                   750,000
3.03 Environmental
      Revisions                                    80,000
3.04 SWPP Revision                                  5,000
3.05 Georechnical
     Consultant                                    15,000
3.06 Hydrology &
     Well Analysis                                 15,000
3.07 Municipality
     Approvals &
     Fees (Deferred)                  100,000           -
3.08 Landscape
     Architecture
     & Expenses                         7,500           -
3.09 Site Related
     Structural &
     Engineering                       35,000           -
3.10 Sight Lighting,
      Electrical
      Engineering                      10,000           -
                                 -----------------------
      Subtotal
       3.01-3.05                    1,100,000           -

4.0  Architecture,
     Engineers &
     Casino Design
4.01 Architecture
     Engineering &
     Expenses,
     (MEPS in                         530,000           -
4.02 MEPS Consultant                    61,00           -
4.03 Plan Check &
     Inspections
     Consultant to
     Tribe                            110,000           -
4.04 Food Service
     Design                            10,000           -
4.05 Corporate Identity
     & Graphic Design
     & Expenses                        40,000           -
4.06 Interior Architecture
     & Theme Design
     & Expenses                             -           -
                                 -----------------------
     Subtotal
      4.01-4.04                       751,000           -

5.0  Additional
     Development
     Costs
5.01 Legal
     Contingency                       583000           -
5.02 Accounting                       200,000           -
5.03 Insurance                         43,000           -
5.04 Finance
     Placement Fees                   580,440           -
5.05 Construction
     Interest
     POS Lease
     Payments                         578,452     (88,691)
5.06 Tribal
     Relocation and
     G & A Fund                     2,100,000           -
5.07 Market
     Feasibility
     Study(s)                          25,000           -
5.08 Environmental
     Assessment                             -           -
5.09 Traffic Study                          -           -
5.10 Generator Deposit                100,000           -
5.11 Consulting &
     Technical Services
     Fee                                    -           -
                                 -----------------------
     Subtotal
     5.01-5.11                      4,809,892

6.0  Temporary
     Casino
     Construction
6.00 Construction
     Management Fee
     & Expenses                       449,000          (0)
6.01 Temp Construction
     (See Attached
     Detail)                        7,952,399          (0)
6.02 Architecture &
     Engineering,
     (See 4.01)                             -           -
                                 -----------------------
     Subtotal
     6.01-6.10                     8 ,401,399

7.0  FF&E, Special
     Equipment &
     Sarvices
7.01 Testing
     Allowance                         40,000           -
7.02 Casino FF&E,
     Office Furniture
     & Cubicles
     (partial Lease)               1,032,000            -
7.03 Computers                       120.000            -
7.04 Slot Repair
     Equip                            10,000            -

</TABLE>

<PAGE>

<TABLE>
<S>                        <C>            <C>        <C>           <C>           <C>            <C>          <C>          <C>
7.05 Office Equip            Lease-Pur                  Included            -       40,000         40,000                   40,000
7.00 Cabling & Non-
      Leasehold Slot
      Machine Items            30,000                                  30,000                      30,000                   30,000
7.06 Gaming Devices,
     Equipment &
     Furniture               Lease-Pur.               18,167,000   18,167,000   (4,467,000)    13,700,000               13,700,000
     Slot Bases              Lease-Pur.                                             80,000         80,000                   80,000
                             Lease-Pur.
     Locks & Parts           Lease-Pur.                                             10,000         10,000                   10,000
7.06 Soft & Hard
     Count Equip             Lease-Pur.                 included            -       75,000         75,000                   75,000
7.07 Cage Equip                                                             -      205,000        205,000                  205,000
7.08 Lockers                                                                -       20,000         20,000                   20,000
7.09 Kitchen Equip.
     Small Wares, China,     Lease-Pur.                1,309,800    1,308,800   (1,308,800)             -     935,000      935,000
     Glass Silver
7.10 Restaurant FF&E                                     275,000      275,000     (275,000)             -                        -
7.11 First Aid Equip                                                                 1,950          1,950                    1,950
7.12 SOS                     Lease-Pur.                                     -    2,400,000      2,400,000                2,400,000
7.13 Surveillance
     System/POS/Access       Lease-Pur.                 Included            -       954000        950,000                  950,000
     System/Telephone
     interior Signs          Lease-Pur.                                     -      150,000        150,000                  150,000
7.14 Themed Finishes,
     Lighting & Theatrical   Lease-Pur.            -     350,000      350,000     (350,000)             -           -            -
                             ------------  ---------    --------   ----------   ----------     ----------  ----------    ---------
      Subtotal 7.01-7.14           76,500          -  20,746,724   20,823,224    (1,959,274)   18,563,950   1,143,000   20,011,950

8.0 Pre-Opening                 2,100,000    300,000           -    2,400,000    2,400,000      2,400,000     610,271      200,000

9.0 Working Capital &
    Opening Deficit               400,000                      -      400,000      400,000        400,000

9.0 Project Contingency           750,000                      -      750,000      750,000        150,000
<CAPTION>
<S>                        <C>            <C>        <C>           <C>           <C>            <C>          <C>          <C>
7.05 Office Equip                                                                                               10,000      20,000
7.00 Cabling & Non-
      Leasehold Slot
      Machine Items                20,000     10,000
7.06 Gaming Devices,
     Equipment &
     Furniture                 460,000.00                                                                   10,000,000   2,240,000
     Slot Bases                                                                                                 40,000      40,000

     Locks & Parts                                                                                              10,000
7.06 Soft & Hard
     Count Equip                                                                                                            35,000
7.07 Cage Equip                                                                                                105,000      50,000
7.08 Lockers                                                                                                                20,000
7.09 Kitchen Equip.
     Small Wares, China,               -
     Glass Silver
7.10 Restaurant FF&E                   -
7.11 First Aid Equip                                                                                                         1,950
7.12 SOS                                                                           800,000                     400,000     800,000
7.13 Surveillance
     System/POS/Access                                                             150,000       200,000       200,000     200,000
     System/Telephone
     interior Signs                                                                                                         75,000
7.14 Themed Finishes,
     Lighting & Theatrical              -          -           -            -           -              -            -            -
                               ----------   --------    --------    ---------    --------     ----------    ---------    ---------
      Subtotal 7.01-7.14          505,000     20,000       5,000    1,050,000     400,000     11,115,000    3,753,950    2,015,000

8.0 Pre-Opening                   225,000    225,000     285,584      326,278     527,869     2,400,000

9.0 Working Capital &
    Opening Deficit                                                               150,000       250,000      400,000

9.0 Project Contingency                                                           300,000       450,000      750,000
<CAPTION>
<S>                                  <C>         <C>
7.05 Office Equip                       10,000       40,000
7.00 Cabling & Non-
      Leashold Slot
      Machine Items                     30,000
7.06 Gaming Devices,
     Equipment &
     Furniture                       1,000,000   13,700,000
     Slot Bases                                      80,000

     Locks & Parts                                   10,000
7.06 Soft & Hard
     Count Equip                        40,000       75,000
7.07 Cage Equip                         50,000      205,000
7.08 Lockers                                         20,000
7.09 Kitchen Equip.
     Small Wares, China,
     Glass Silver
7.10 Restaurant FF&E
7.11 First Aid Equip                                  1,950
7.12 SOS                               400,000    2,400,000
7.13 Surveillance
     System/POS/Access                 200,000      950,000
     System/Telephone
     interior Signs                     75,000      150,000
7.14 Themed Finishes,
     Lighting & Theatrical                   -            -
                                    ----------    ---------
      Subtotal 7.01-7.14            16,663,950

8.0 Pre-Opening

9.0 Working Capital &
    Opening Deficit

9.0 Project Contingency
</TABLE>

Notes   Phase 1 costs include design for the whole Project. Phase 1 does not
        include construction for the Kitchen, Bar, Buffet, Restaurant, Wine Room
        or Boulevard Lighting. Underground construction only in the Kitchen,
        Bar, Buffet, Restaurant and Wine Room is included in Phase 1.

     1  The above Budget is conceptual and very preliminary based on limited
        documentation and verbal explanations from others.

     2  All contracts for services will be contracted directly with N Dry Creek
        Rancheria.

     3  SWPP mitigation requirements at lower site are assumed XXX.

     4  Items indicated as Lease may be leased or secured through alternate
        financing.

     5  This Conceptual Budget is for Phase 1 only, and includes:
        Temp Structure is 40,000 SF +/- with 800 coinless Gaming Machines &
        16 Table Games.
        A second tent, (the Slot Tent) is used to warehouse a second 300 gaming
        machine and public restrooms for the main tent.
        Restaurant is in Phase 1b and has 125 seats & Bar has 75.
        200 +/- paved Parking Space at upper Site and 3000 +/- enpaved Parking
        Spaces at Lower and Peripheral areas.
        No Bingo, Poker, Sports Book or Gift Shop.
        3,000 SF of executive office are on the Sprung Structure, balance is
        in adjacent modular buildings.
        Some admin functions may be off-site.
        There will be an 8,000 SF +/- separate Warehouse/Receiving Sprung
        Structure to be located on site in Phase 1b.
        Some off-site roadwork on BIA 93 is included in Phase 1b, but no work on
        SR 128 is included.
        There is a total of $583,000 for legal costs allowed in this Budget.

     6  There are no costs In the 8udget for the following Items, which are
        assumed to be due after opening:
        Proschold/Cadd issues
        MOA, Emergency Services and related costs
        County Utility Costs
        Advent lawsuit and related issues beyond Legal Contingency.

     7  There are no costs in the Budget for the following items, which may be
        in a future Phase or not done at all.
        Parking Garage
        Off-site work on SR 128
        Construction at areas which receive run-off to the stream during the
        rainy season.

     8  This Conceptual Budget Total is the same as the one approved by the
        Tribe and forwarded to the LLC 1/12/2002 by D. Searle.

     9  It is the intent of the Dry Creek Casino LLC to guarantee the Sprung
        Structures and PDS Leases that are part of the Phase la Budget.

<PAGE>

                                  EXHIBIT C-1

Expense Budget

<PAGE>

Start-up Budget                                                          8/13/02
           Tribal Administration/Relocated Members/Gaming Commission
<TABLE>
<CAPTION>
                                                            Exhibit "C" Revision 1a
Relocated Members              Budget     Aug/Sept          Oct          Nov          Dec          Jan          Feb        March
-----------------              ------   ----------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                        <C>         <C>           <C>          <C>          <C>          <C>          <C>          <C>

Nine Family's                 392,500      122,500       22,500       22,500       22,500       22,500       22,500       22,500
Floyd Dollar                   27,500                                                   -        7,500        2,500        2,500
Homer Dollar                   15,000                                                   -            -            -            -
AnnaLopez                     193,500        6,000                                 10,000      157,500        2,500        2,500
Dino Lopez                    101,006                                                   -       81,006        2,500        2,500
Tanya Lopez                    25,000                                                   -            -        2,500        2,500
Nadine Russ                    20,000                                                   -            -        1,000            -
Gloria Martin                  19,750                                                   -            -        4,750            -
Karen Casillas                 20,000                                                   -            -            -            -
Four Prefabricated Homes      484,800

Monthly Totals                          $  128,500   $   22,500   $   22,500   $   32,500   $  268,506   $   38,250   $   32,500
                                        ----------   ----------   ----------   ----------   ----------   ----------   ----------
Total                      $1,299,056
                           ==========

Tribal Administration
Staff (wages)                  146,900       11,300       11,300       11,300       11,300       11,300       11,300       11,300
Accounts Payable                49,820       16,606       16,606       16,608            -
Payback Funds (BIA
  Program)                     111,000       27,750       27,750       27,750       27,750            -            -            -
Past Due Professional
  Services                      10,000       10,000                         -
Consultant                     550,000      200,000                                                                       200,000
CILS                            40,000       10,000            -       20,000       10,000
Past Due Living Expense         11,915       11,915
Property Taxes                  15,000                                 15,000
Phone/Communications             6,500          500          500          500          500          500          500          500
Travel Expense                   6,000                                  1,000        1,000        1,000        1,000        1,000
Replacement Funds (Tribal)      28,956        4,826        4,826        4,826        4,826        4,826        4,826            -
Meeting Expense                  9,100          700          700          700          700          700          700          700
Audit Costs                      4,552                         -        4,552

Monthly Totals                             $293,597      $61,682     $102,236      $56,076     $ 18,326     $ 18,326     $213,500
                                        -----------  -----------  -----------  -----------  -----------  -----------  -----------
Total                        $ 989,743
                             =========

</TABLE>

<TABLE>
<CAPTION>
Relocated Members               April          May         June         July          Aug         Sept       Tot Budget
-----------------          ----------   ----------   ----------   ----------   ----------   ----------       ----------
<S>                        <C>          <C>          <C>          <C>          <C>          <C>              <C>

Nine Family's                  22,500       22,500       22,500       22,500       22,500       22,500
Floyd Dollar                    2,500        2,500        2,500        2,500        2,500        2,500
Homer Dollar                    2,500        2,500        2,500        2,500        2,500        2,500
AnnaLopez                       2,500        2,500        2,500        2,500        2,500        2,500
Dino Lopez                      2,500        2,500        2,500        2,500        2,500        2,500
Tanya Lopez                     7,500        2,500        2,500        2,500        2,500        2,500
Nadine Russ                     6,500        2,500        2,500        2,500        2,500        2,500
Gloria Martin                   2,500        2,500        2,500        2,500        2,500        2,500
Karen Casillas                  7,500        2,500        2,500        2,500        2,500        2,500
Four Prefabricated Homes      484,800

Monthly Totals             $  541,300   $   42,500   $   42,500   $   42,500   $   42,500   $   42,500
                           ----------   ----------   ----------   ----------   ----------   ----------       ----------
Total                                                                                                        $1,299,056
                                                                                                             ==========

Tribal Administration
Staff (wages)                   11,300       11,300       11,300       11,300       11,300       11,300
Accounts Payable
Payback Funds (BIA
  Program)                           -
Past Due Professional
  Services
Consultant                      25,000       25,000       25,000       25,000       25,000       25,000
CILS
Past Due Living Expense
Property Taxes
Phone/Communications               500          500          500          500          500          500
Travel Expense                   1,000
Replacement Funds (Tribal)           -
Meeting Expense                    700          700          700          700          700          700
Audit Costs

Monthly Totals                $ 38,500     $ 37,500     $ 37,500     $ 37,500      $37,500     $ 37,500
                           -----------  -----------  -----------  -----------  -----------  -----------      ----------
Total                                                                                                        $  989,743
                                                                                                             ==========

</TABLE>

<PAGE>

   Start-up Budget                                                  8/13/02
            Tribal Administration/Relocated Members/Gaming Commission
                             Exhibit "C" Revision 1a

<TABLE>
<CAPTION>
                                   Budget     Aug/Sept      Oct      Nov       Dec       Jan       Feb       March      April
                                  -------     --------    -------  --------  --------  --------  --------  ---------  ---------
<S>                             <C>         <C>         <C>      <C>       <C>       <C>       <C>        <C>        <C>
Tribal Gaming Commission
Commissioners (3)                 124,937            -      1,965     2,352     3,627     4,111     4,548     10,834     16,250
Secretary(1)                       20,412                                           -         -         -      2,916      2,916
Investigators (5)                  32,076                                                                          -          -
Compliance Agent (3)               17,500                                                                          -          -
Auditor(1)                         12,498                                                                          -          -
Administrator (1)                   7,500                                                                                     -
Equipment/Supplies                 86,619                                         319     2,623       377     50,000        500
Consultant                          7,000                                                                      1,000      1,000
Training/Travel                    37,169                               704       568       148     1,740      3,000      3,000
Background Investigations          99,995                                 -     2,000     1,000       500      3,500      1,000
Utilities                           8,100                                                                      4,500        600
Misc.                              10,500                                           -         -         -      1,500      1,500

Monthly Totals                                       -      1,965     3,056     6,514     7,882     7,165     77,250     26,766
                                              --------    -------  --------  --------  --------  --------  ---------  ---------
Total                          $  464,297
                               ==========
Monthly Grand Totals                          $422,097    $86,147  $127,792  $ 95,090  $294,714  $ 63,741  $ 323,250  $ 606,566
                                              ========    =======  ========  ========  ========  ========  =========  =========
Total Budget                   $2,753,096
                               ==========

Current Funds Available
Dry Creek Casino LLC            $ 420,000     $      -   $101,000  $ 90,000  $780,000  $ 90,000  $ 90,000  $  90,000  $  90,000
Tribe's Contribution                                                                                                  $ 200,151
Additional LLC Contributions
  Req.                                                                                                                $  68,246
Current Expenditures
Relocated Members                             $ 128,500   $ 22,500 $ 22,500  $ 32,500  $268,506  $ 38,250  $  32,500  $ 541,300
Tribal Administration                         $ 293,597   $ 61,682 $102,236  $ 56,076  $ 18,326  $ 18,326  $ 213,500  $  38,500
Gaming Commission                                            1,965    3,056     6,514     7,882     7,165     77,250     26,766

Required C/F from Available
  Funds                                       $  (2,097)  $ 12,756 $(25,036) $659,874  $455,160  $481,419  $ 248,169  $       -

</TABLE>

<TABLE>
<CAPTION>
                                   May       June      July      Aug      Sept
                                ---------  --------  --------  -------- --------
<S>                           <C>        <C>       <C>       <C>       <C>        <C>
Tribal Gaming Commission
Commissioners (3)                  16,250    16,250    16,250    16,250   16,250
Secretary(1)                        2,916     2,916     2,916     2,916    2,916
Investigators (5)                       -               2,916    14,580   14,580
Compliance Agent (3)                    -               2,500     7,500    7,500
Auditor(1)                              -               4,166     4,166    4,166
Administrator (1)                       -                         3,750    3,750
Equipment/Supplies                    500       500    10,600    10,600   10,600
Consultant                          1,000     1,000     1,000     1,000    1,000
Training/Travel                     3,000     4,000     4,000     7,000   10,000
Background Investigations           4,000     5,000    27,665    27,665   27,665
Utilities                             600       600       600       600      600
Misc.                               1,500     1,500     1,500     1,500    1,500

Monthly Totals                     29,766    31,766    74,113    97,527  100,527
                                ---------  --------  --------  -------- --------
Total                                                                              $  464,297
                                                                                   ==========
Monthly Grand Totals            $ 109,766  $111,766  $154,113  $177,527 $180,527
                                =========  ========  ========  ======== ========
Total Budget                                                               Total   $2,753,096
                                                                                   ==========

Current Funds Available
Dry Creek Casino LLC            $  90,000  $ 90,000  $ 90,000  $ 90,000 $ 90,000
Tribe's Contribution
Additional LLC Contributions
  Req.                          $  19,766  $ 21,766  $ 64,113  $ 87,527 $ 90,527   $  351,945
Current Expenditures
Relocated Members               $  42,500  $ 42,500  $ 42,500  $ 42,500 $ 42,500
Tribal Administration           $  37,500  $ 37,500  $ 37,500  $ 37,500 $ 37,500
Gaming Commission                  29,766    31,766    74,113    97,527  100,527

Required C/F from Available
  Funds                         $       -  $      -  $      -  $      - $      -

</TABLE>

<PAGE>

                                  EXHIBIT E-1

Commitment Letter

<PAGE>

                    [NEVADA GOLD & CASINOS, INC. LETTERHEAD]

                                                              December 13, 2001

Ms. Liz Elgin DeRouen, Chairperson
Dry Creek Rancheria Band of Pomo Indians
4988 Moore St.
Healdsburg, CA 95448

Re: Financing for the Dry Creek Rancheria Band of Pomo Indians
    Temporary Casino Project

Dear Madame Chair,

         The purpose of this letter is outline the terms to fund the
development and construction of a temporary casino ("Casino"} on the Dry Creek
Rancheria Hand of Pomo Indians reservation. The terms and conditions of the
financing are described as follows:

SUMMARY

Lender:                  Nevada Gold and Casinos, Inc. on behalf of the Dry
                         Creek Casino, LLC.

Borrower:                The Dry Creek Band of Pomo Indians (the "Borrower").

Amount:                  $15,000,000 (the "Financing").

Advancer:                The Financing will be available to be advanced in
                         increments of not less than Five Hundred Thousand and
                         no/100 Dollars ($500,000) upon written request by the
                         Borrower to the Lender.

Interest Rate:           The Financing shall bear an interest rate of 12% per
                         annum.

Placement Fee:           3.5% of the principal amount of the financing.

Term:                    Five years.

Payment Terms:           Payment of interest only for the first year, payable
                         monthly, beginning one month following the initial
                         advance. Thereafter, the

<PAGE>

                         principal amount advanced and accrued interest thereon
                         shall be payable monthly over a four-year period.

Collateral:              The collateral for the Financing will be a security
                         interest in the revenues of the casino. Additional
                         collateral will be a security interest in the
                         furniture, fixtures, equipment and slot machines
                         utilized in the Casino provided, however, that the
                         Borrower may incur purchase money loans secured by such
                         gaming equipment, furniture, fixtures and equipment,
                         lender shall subordinate its interest to such purchase
                         money lenders.

Documentation:           The Financing will be made pursuant to transaction
                         documents reasonably satisfactory to the Borrower and
                         the Lender, which will be drafted by counsel to the
                         lender, at cost of the Borrower. The documentation
                         shall include the terms set forth herein and any
                         additional terms agreed to by Borrower and Lender.

Please confirm your agreement to the foregoing by signing below.

                                        Very truly yours,

                                        /s/ H. Thomas Winn

                                        H. Thomas Winn

AGREED AND ACCEPTED:

/s/ Liz Elgin DeRouen
----------------------------------
Ms. Liz Elgin DeRouen, Chairperson

<PAGE>

                                  EXHIBIT F-la

Disclosure

<PAGE>

                                  EXHIBIT F-la

                                   DISCLOSURES

1. That certain claim made by the Alexander Valley Association against the Tribe
pursuant to letters dated September 12, 2000, and April 15, 2002, and alleging
certain violations by the Tribe of the federal Endangered Species Act and
correspondence from the National Marine Fisheries Service regarding potential
takings by the Tribe under that Act with respect to the creek bed on the lower
part of the Dry Creek Rancheria, review of which has been acknowledged by
Lender;

2. That certain claim styled Terrance C. Proschold et al. v. United States of
America, U.S.D.C. (ND Cal), No. 01-2390 SBA, pursuant to which the claimants
seek declaratory and injunctive relief relating to property held by claimants
and burdened by an access easement to such property, that such access easement
does not permit the use of such access for utilization of the property for
casino use, which claim has been acknowledged by Lender;

3. A dispute by certain voting members of the Tribe who claim they have
successfully recalled the present members of the Tribe's Board of Directors and
replaced them with an "interim board." The Bureau of Indian Affairs continues to
recognize the current board. An appeal of that recognition is pending;

4. A claim by Advent Communications & Entertainment Company and its partners,
affiliates and co-venturers (including each party identified under "Third Party
Disputes" in the Loan Agreement) that the negotiation and execution of the Loan
Agreement is an express breach of the Sonoma Canyon Documents and/or the Sonoma
Falls Documents (as such terms are defined in the Loan Agreement) and documents
related thereto, including an "Exclusive Negotiating Agreement" dated August 7,
1999, all of which claims have been acknowledged by Lender;

5. That certain litigation entitled Artichoke Joe's, et al. v. Norton, et al.
(No. CV-S-01-248 DFL/GGH. E.D. Calif.) filed on February 7, 2001 challenging the
constitutionality of California Constitution Article IV, Section 19 (f), the
effect of which, if successful, cannot be determined but could limit the Tribe's
ability to offer certain gaming in the Tribe's gaming facility (the "Prop 1 A
Litigation"); and

6. The opinion of the Attorney General of California dated February 23, 2001
that California "Compacts entered into by the State and 62 federally recognized
Tribes contemplate that the Gambling Control Commission ("GCC") will issue the
licenses for gaming devices pursuant to the Compact's provisions;" that the
Tribe purchased gaming device licenses that were issued on or about May 15, 2000
through a process established by the Compact tribes utilizing the Michael Sides
Accountancy Corporation and not by the GCC, although the State commended the
tribes on the process at the time; that gaming devices operated pursuant to
those licenses were not placed in commercial operation within 12 months of
issuance as required under the Compact; that further gaming device license
issuance and other compliance procedures may

<PAGE>

be necessary to effectuate the Tribe's right to operate more than 350 gaming
devices; and that further licenses may not be available if and when needed.
Members of the GCC have indicated informally that it is possible that new
licenses to replace those issued through the Sides process will be issued by the
GCC and that the one-year deadline will not begin to run until then, but there
has been no formal announcement to that effect.

         7. A contention by various parties that, because the Rancheria property
is held in fee by the United States of America in a Deed dated June 1, 1915 that
does not expressly state that it is held "in trust" for the Tribe, the Rancheria
is in fact not held in trust, and does not constitute a reservation or other
"Indian land" that is eligible for gaming activities under the Indian Gaming
Regulatory Act.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]