Document:

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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT (the "Agreement") is made and entered into this 25th day of
July, 2000, (the "Commencement Date") by and between HARVEYS CASINO RESORTS, a
Nevada corporation, hereinafter referred to as "HARVEYS" and/or "EMPLOYER," and
EDWARD B. BARRACO, hereinafter referred to as "EMPLOYEE":

                              W I T N E S S E T H:

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

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

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

                                       I

                                  DEFINITIONS

     1.01 EMPLOYEE shall at all times mean EDWARD B. BARRACO.

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

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

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     1.04 Successor in Interest shall mean any entity which is the successor or
assign of HARVEYS, at law or at equity, and shall include without limitation,
any entity into which HARVEYS is merged or consolidated, and any entity to which
all or substantially all of the assets or businesses of HARVEYS are transferred.

                                       II

                   NATURE OF EMPLOYMENT AND DUTIES OF EMPLOYEE

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

     2.02 EMPLOYEE shall be responsible for the overall direction of the Central
City facility and shall direct all operating departments for successful
implementation of business policies and plans for the property. EMPLOYEE shall
provide support in the conceptual, strategic and policy formulation functions of
the business and shall direct and coordinate property activities to obtain
optimum efficiency and economy of operations so as to maximize profits, and such
other responsibilities or duties that HARVEYS may assign from time to time.

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

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

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

                                       III

                               TERM OF EMPLOYMENT

     3.01 EMPLOYER hereby employs EMPLOYEE, and EMPLOYEE hereby agrees to be
employed by EMPLOYER for a period of at least one (1) year commencing on the 1st
day of July, 2000, and terminating on the 30th day of June, 2001. This Agreement
may be terminated earlier as herein provided or may be extended or modified only
by written document signed by both parties specifically referencing this
instrument.

                                       IV

                     TERMINATION OF EMPLOYMENT WITHOUT CAUSE

     4.01 EMPLOYEE may be terminated at any time, without cause, or as
referenced in Paragraph 5 herein, by EMPLOYER on thirty (30) days' prior written
notice to EMPLOYEE. In the event of such

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termination without cause, EMPLOYEE shall continue to be paid EMPLOYEE's annual
salary as set forth in Paragraph 6.01, as such salary may be modified from time
to time, and continue to receive medical, vision and dental benefits as set
forth in Paragraph 7.06 for the balance of the contract term, or twelve (12)
months, whichever is lesser.

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

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

                                        V

                       TERMINATION OF EMPLOYMENT FOR CAUSE

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

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

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

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

          (d) use or impart any confidential or proprietary information of
EMPLOYER or any of its subsidiaries or affiliates in violation of EMPLOYER's
policy regarding confidentiality or any confidentiality or proprietary agreement
to which EMPLOYER is a party, which act or actions have a material adverse
affect on EMPLOYER; or

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

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

                                       VI

                            COMPENSATION OF EMPLOYEE

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

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                                       VII

                                OTHER PERQUISITES

     7.01 HARVEYS 401(k) PLAN - During the employment term, EMPLOYEE shall be
allowed to participate in HARVEYS 401(k) Plan as such plan may be in effect and
amended from time to time.

     7.02 VACATION - EMPLOYEE shall be entitled to vacation and holiday pay in
accordance with EMPLOYER's policy for EMPLOYEE's position as may be in place
from time to time, with credit being given as of EMPLOYEE's original hire date.

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

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

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

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

     7.08 GROUP LIFE INSURANCE - During the term of this Agreement, EMPLOYER
shall furnish EMPLOYEE with Group Term Life Insurance and Accidental
Death/Dismemberment Insurance with the

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maximum benefit being equal to two (2) times EMPLOYEE's annual salary, up to a
maximum of $500,000.00.

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

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

     7.11 SERP - During the employment term, EMPLOYEE shall continue to
participate in the Supplemental Executive Retirement. Plan as such Plan may be
in effect and amended from time.

                                      VIII

                                   ARBITRATION

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

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

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                                       IX

                                  MISCELLANEOUS

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

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

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

                  EMPLOYEE:

                     Edward B. Barraco
                     756 Silverberry Lane
                     Golden, CO  80401

                  EMPLOYER:

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

                  WITH A COPY TO:

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

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

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

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

     9.07 This Agreement supersedes any and all other agreements, either oral or
in writing, between the parties hereto with respect to the employment of
EMPLOYEE by EMPLOYER along with the other instruments executed concurrently
herewith, contain all of the covenants, conditions and agreements between the
parties with respect to such employment. Each party to this Agreement

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acknowledges that no representations, inducements, promises or other agreements
excepting those specifically set forth herein, oral or otherwise, have been made
by any party, or anyone acting on behalf of any party, which are not embodied
herein, and that no other agreement, statement or promise not contained in this
Agreement shall be valid or binding. Any addendum to or modification of this
Agreement shall be effective only if it is in writing and signed by the parties
to be charged.

                                       EMPLOYEE:

                                       /s/ EDWARD B. BARRACO
                                       -----------------------------------
                                       EDWARD B. BARRACO

                                       EMPLOYER:

                                       HARVEYS CASINO RESORTS,
                                       a Nevada Corporation

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

                                       11

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                    AGREEMENT AND COVENANT NOT TO COMPETE OR
                          USE OR DISCLOSE TRADE SECRETS

     THIS AGREEMENT AND COVENANT NOT TO COMPETE OR USE OR DISCLOSE TRADE SECRETS
(the "Agreement") is made and entered into this 25th day of July, 2000, by and
between EDWARD B. BARRACO ("EMPLOYEE") and HARVEYS CASINO RESORTS, a Nevada
corporation, ("EMPLOYER"):

                                    RECITALS

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

     WHEREAS, EMPLOYEE and EMPLOYER simultaneously herewith have executed an
agreement whereby EMPLOYEE is employed by EMPLOYER as the Senior Vice President
and General Manager of HARVEYS WAGON WHEEL CASINO HOTEL in Central City,
Colorado, (as may be amended or extended, the "Employment Agreement"); and

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

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

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     1.01 NON-COMPETITION During the term of EMPLOYEE's employment with
EMPLOYER, and for any period of time thereafter during which EMPLOYEE receives
any compensation, including severance compensation, under the Employment
Agreement (the "Restricted Period"), EMPLOYEE warrants, represents and agrees
that he shall not, in any city, town, county, parish or other municipality
located within a seventy-five (75) mile radius of Harveys Wagon Wheel Hotel
Casino in Central City, Colorado, where the EMPLOYER or any of its subsidiaries,
affiliates, successors or assigns engages in the Business directly or
indirectly, do any of the following: (a) engage in the Business for EMPLOYEE's
own account; (b) enter the employ of, or render any services to or for any
entity that is engaged in the Business; and/or (c) become interested in any such
entity in any capacity, including as an employee, partner, stockholder, officer,
principal, agent, trustee or consultant; provided, however, EMPLOYEE may own,
solely as a passive investment, securities of any entity traded on any national
securities exchange or automated quotation system if the EMPLOYEE is not a
controlling person of such entity and does not beneficially own three percent
(3%) or more of any class of securities of such entity. The duration of the
covenant not to compete provided for in this Paragraph 1.01 shall be extended
for an additional period of three hundred sixty-five (365) days if EMPLOYEE
terminates the Employment Agreement pursuant to Paragraph 4.02 thereof or
EMPLOYER terminates EMPLOYEE pursuant to Paragraph 5.01 of the Employment
Agreement.

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

     1.03 NON-SOLICITATION During the Restricted Period, EMPLOYEE shall not,
directly or indirectly, solicit, induce or attempt to solicit or induce any
customers, clients, vendors, suppliers or consultants in the Business then under
contract to EMPLOYER or any of its subsidiaries, affiliates, successors or
assigns (a "Customer or Supplier") to terminate his, her, or its relationship
with EMPLOYER or any of its subsidiaries, affiliates, successors or assigns for
any purpose, including the purpose of associating with or becoming a Customer or
Supplier of or consultant to (whether or not exclusive) of EMPLOYEE or any
entity of which EMPLOYEE is or becomes an employee, partner, stockholder,
officer, director,

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principal, agent, trustee or consultant, or otherwise solicit, induce or attempt
to solicit or induce any such Customer or Supplier to terminate his, her or its
relationship with EMPLOYER or any of its subsidiaries, affiliates, successors or
assigns for any other purpose or no purpose.

     1.04 CONFIDENTIAL INFORMATION EMPLOYEE acknowledges that he will have
access to proprietary information, trade secrets and confidential material
(including, but not limited to, accounting information, business plans, lists of
key personnel, customers, clients, vendors, suppliers, distributors and
consultants) of the EMPLOYER (the "Confidential Information"), EMPLOYEE agrees
that upon termination of his employment with EMPLOYER, EMPLOYEE shall not be
entitled to keep or preserve any of EMPLOYER's records, documents or other
materials evidencing Confidential Information. EMPLOYEE further agrees, without
limitation in time or until such information shall become public other than by
the EMPLOYEE's unauthorized disclosure, to maintain the confidentiality of and
refrain from disclosure or otherwise using in any respect the Confidential
Information to the detriment of EMPLOYER.

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

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profits, monies, accruals, increments or other benefits derived or received by
EMPLOYEE by reason of such breach.

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

     1.07 ENFORCEABILITY IN ALL JURISDICTIONS The parties hereto intend to and
hereby confer jurisdiction to enforce the terms, covenants and provisions
contained herein upon the courts of any State of the United States and any other
governmental jurisdiction within the geographical scope of such covenants. If
the courts of any one or more such States or jurisdictions shall hold such
covenants wholly unenforceable by reason of the breadth of such scope or
otherwise, it is the intention of the parties hereto that such determination
shall not bar or in any way affect EMPLOYER's right to the relief provided above
in the courts of any other State or jurisdiction within the geographical scope
of such covenants, as

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to breaches of such covenants and such respective States or jurisdictions, the
above covenants as they relate to each State or jurisdiction being, for this
purpose, severable into diverse and independent covenants.

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

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

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

     1.11 ENTIRE AGREEMENT This Agreement and the Employment Agreement by and
between the EMPLOYEE and the EMPLOYER, dated as of the date hereof, represent
the entire agreement of the parties with

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respect to said subject matter hereof and shall supersede any and all
previous contracts, arrangements or understandings between the parties hereto
and with respect to said subject matter. This Agreement may not be modified
or amended except by an instrument in writing signed by each of the parties
hereto.

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

                                       EMPLOYEE:

                                           /s/ EDWARD B. BARRACO
                                           -------------------------------
                                           EDWARD B. BARRACO

                                        EMPLOYER:

                                        HARVEYS CASINO RESORTS,
                                        a Nevada corporation

                                            By:  /s/ CHARLES W. SCHARER
                                                 -------------------------------
                                                 CHARLES W. SCHARER,
                                                 President and Chief  Executive
                                                 Officer

                                       7<PAGE>

                                                             EXHIBIT 10.17

                            EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT is entered into as of this 20th day of
November, 2000 by and between Harveys Casino Resorts, a Nevada corporation
("Employer"), and Wade Hundley ("Executive"),

                                  WITNESSETH:

     WHEREAS, Employer desires to employ Executive as its Executive Vice
President, on the terms and conditions set forth herein; and

     WHEREAS, Executive desires to accept such employment on the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual
covenants and promises contained herein and for other good and valuable
consideration, Employer and Executive hereby agree as follows:

     1.  AGREEMENT TO EMPLOY. Upon the terms and subject to the conditions of
this Agreement, Employer hereby employs Executive, and Executive hereby
accepts employment with Employer.

     2.  TERM; POSITION AND RESPONSIBILITIES.

     (a) TERM OF EMPLOYMENT. Unless Executive's employment shall sooner
terminate pursuant to Section 7, Employer shall employ Executive for a term
commencing on December 1, 2000 (the "Commencement Date") and ending on the
third anniversary of the Commencement Date (the "Initial Term"). Effective
upon the expiration of the Initial Term and of each Additional Term (as
described below), Executive's employment hereunder shall be deemed to be
automatically extended, upon the same terms and conditions, for an additional
period of one year (each, an "Additional Term"), in each such case,
commencing upon the expiration of the Initial Term or the then current
Additional Term, as the case may be, unless Employer, at least six months
prior to the expiration of the Initial Term or such Additional Term, shall
give written notice (a "Non-Extension Notice") to Executive of its intention
not to extend the Employment Period (as defined below) hereunder. The period
during which Executive is employed pursuant to this Agreement, including any
extension thereof in accordance with the preceding sentence, shall be
referred to as the "Employment Period".

     (b) POSITION AND RESPONSIBILITIES. During the Employment Period,
Executive shall serve as Executive Vice President of Employer and shall have
shall duties and responsibilities as are customarily assigned to individuals
serving in such position and such other duties consistent with Executive's
title and position as the Board of Directors of Employer (the "Board")
specifies from time to time. During the Employment Period, Executive shall
devote all of his working time to the conscientious performance of the duties
and responsibilities of such position, except for (i) vacation time as set
forth in Section 6(c) and absence for sickness or similar disability and (ii)
to the extent that it does not interfere with the performance of Executive's
duties hereunder, (A) such reasonable time as may be devoted to service on
boards of directors of other corporations and entities and the fulfillment of
civic responsibilities and (B)

<PAGE>

such reasonable time as may be necessary from time to time for personal
financial matters. During the Employment Period, Executive shall report
directly to the Chief Executive Offer of Employer and Thomas J. Barrack, Jr.
the Chairman of the Board; provided that if, during the Employment Period,
Mr. Barrack ceases for any reason to act as Chairman of the Board, Executive
shall report to the individual who succeeds to Mr. Barrack as Chairman or, if
no individual is appointed to succeed Mr. Barrack as Chairman, Executive
shall report to such other member of the Board or other individual, if any,
as Executive and Mr. Barrack shall mutually agree.

     3. BASE SALARY. As compensation for the services to be performed by
Executive during the Employment Period, Employer shall pay Executive a base
salary at an annualized rate of $400,000, payable installments of Employer's
regular payroll dates. The Board shall review Executive's base salary
annually during the period of his employment hereunder and, in its sole
discretion, the Board may increase (but may not decrease) such base salary
from time to time. The annual base salary payable to Executive under this
Section 3, as the same may be increase from time to time, shall hereinafter
be referred to as the "Base Salary".

     4. INCENTIVE COMPENSATION ARRANGEMENTS.

     (a) INCENTIVE COMPENSATION. For each fiscal year of Employer ending
during the Employment Period, Executive shall receive an annual cash bonus in
such amount as the Board shall determine, in its discretion.

     (b) OPTIONS. On the Commencement Date, Executive shall be granted stock
options (the "Class A Options") to purchase 280 shares of the Class A Common
Stock of Employer, par value $.01 per share (the "Class A Common Stock"), and
stock options (the "Class B Options" and, together with Class A Options, the
"Options") to purchase 28,000 shares of the Class B Common Stock of Employer,
par value $.01 per share (the "Class B Common Stock" and, together with the
Class A Common Stock, the "Common Stock"). Each Option shall be granted to
Executive pursuant to and in accordance with the terms of Employer's 1999
Omnibus Stock Incentive Plan (the "Stock Incentive Plan") and shall otherwise
be subject to the terms and conditions (which shall include those described
in this Section 4 (b) set forth in a separate Stock Option and Restricted
Stock Agreement, substantially in the form attached hereto as Exhibit A, to
entered into by Executive and Employer (the "Option and Restricted Stock
Agreement").

     To the maximum extent permissible under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code"), the Options shall be granted
in the form of "incentive stock options" within the meaning of Section 422 of
the Code. The remainder of the Options shall granted in the form of
non-qualified stock options. The per share exercise price for the Common
Stock covered by the Options shall equal $43.42. The Options shall become
vested and exercisable, in general, in five equal annual installments on each
of the first five anniversaries of the Commencement Date; provided that (i)
in the event of the termination of Executive's employment with Employer by
Employer "Without Cause" (as defined below) or by Executive for "Good Reason"
(as defined below), those Options that would have become vested had
Executive's employment with Employer continued for the two year period
following such termination shall become vested as of the date of such
termination and (ii) the Options shall be

                                      2

<PAGE>

subject to the additional vesting an forfeiture provisions set forth in the
Option and Restricted Stock Agreement. Upon a termination of Executive's
employment by Employer for Cause (as defined below), all then outstanding
Options shall expire immediately upon such termination. In the event of the
termination of Executive's employment with Employer for any other reason, all
then outstanding Options that have not become vested or exercisable on or
prior to the effective date of termination shall expire on such date and all
other Options shall remain exercisable for at least 90 days following such
date. All other terms of the Options shall be contained in the Option and
Restricted Stock Agreement, including without limitation, the right of
Employer to call shares of Common Stock purchased by Executive upon exercise
of any of the Options.

     (c) RESTRICTED STOCK AWARD. On the Commencement Date, Executive shall be
granted two restricted stock awards (collectively, the "Stock Awards"): one
such such award shall consist of 210 shares of Class A Common Stock and
21,000 shares of Class B Common Stock (such shares of Class A Common Stock
and Class B Common Stock, collectively, the "Time Based Restricted Shares")
and the second such award shall consists of 151 shares of Class A Common
Stock and 15,114 shares of Class B Common Stock (such shares of Class A
Common Stock and Class B Common Stock, collectively, the "Performance Based
Restricted Shares"). The Stock Awards shall be granted to Executive pursuant
to and in accordance with the terms and conditions (which shall include those
described in this Section 4 (c) set forth in the Stock Option and Restricted
Stock Agreement.

      The Time Based Restricted Shares shall be subject to restrictions on
transfer which shall lapse, in general, in five equal annual installments on
each of the first five anniversaries of the Commencement Date, subject to
Executive's continued employment with Employer until the applicable lapse
date; provided that (i) in the event of the termination of Executive's
employment with Employer by Employer "Without Cause" or by Executive for
"Good Reason", the transfer restrictions with respect to Time Based
Restricted Shares that would have lapsed had Executive's employment with
Employer continued for the two year period following such termination shall
lapse as of the date of such termination and (ii) the Time Based Restricted
Shares shall be subject to the additional vesting and forfeiture provisions
set forth in the Option and Restricted Stock Agreement.

     The Performance Based Restricted Shares shall be subject to restrictions
on transfer which shall lapse, in general, to the extent that each of the
conditions set forth in clauses (x), (y) and (z) immediately below are
satisfied. In addition, the Performance Based Restricted Shares shall be
subject to the additional vesting and forfeiture provisions set forth in the
Opinion and Restricted Stock Agreement.

 (x) Subject to satisfaction of the conditions to the vesting of the
     Performance Based Restricted Shares set forth in clauses (y) and (z),
     the transfer restrictions applicable to the Performance Based Restricted
     Shares shall lapse (i) with respect to 40% of the Performance Based
     Restricted Shares, on the Commencement Date and (ii) with respect to the
     remaining 605 of the Performance Based Restricted Shares in three equal
     annual installments (each such installment equal to 205 of the total
     Performance Based Restricted Shares) on each February 2, 2001,

                                      3

<PAGE>

     February 2, 2002 and February 2, 2003, without regard to Executive's
     continued employment with Employer until the applicable lapse date.

 (y) Subject to satisfaction of the conditions to the vesting of the
     Performance Based Restricted Shares set forth in clause (z), 50% of the
     Performance Based Restricted Shares shall vest immediately as of the
     Commencement Date and the remaining 50% of the Performance Based
     Restricted Shares shall become vested in two equal annual increments on
     each of the December 1, 2001 and December 1, 2002, regardless of whether
     Executive is employed by Employer on any such date, PROVIDED THAT the
     applicable performance criteria described immediately below are
     satisfied:

     (1) For the fiscal year ended November 30, 2001, 1/2 of the remaining
         50% of the Performance Based Restricted Shares (25% of the total
         Performance Based Restricted Shares) shall become vested provided
         that Bluffs Run generates at least $35,000,000 of EBITDA in fiscal
         2001 Target").

     (2) For the fiscal year ended November 30, 2002, 1/2 of the remaining
         50% of the Performance Based Restricted Shares (25% of the total
         Performance Based Restricted Shares) shall become vested provided
         that the Bluffs Run generates at least $35,000,000 of EBITDA in
         fiscal 2002 (the "2002 Target" and, together with the 2001 Target,
         each a "Performance Target).

     (3) The 2002 Target shall be subject to equitable adjustment for any
         annual increase in state gaming taxes in such fiscal year and for
         revenue enhancing capital expenditures made during the preceding
         fiscal year.

     (4) In the event that Bluff's Run fails to meet a Performance Target in
         a fiscal year (a "Shortfall Year"), no portion of the Performance
         Based Restricted Shares shall vest in such Shortfall Year; PROVIDED,
         HOWEVER, that if the Performance Target for the year immediately
         following a Shortfall Year is exceeded by at least the amount of the
         shortfall in the Shortfall Year (the difference between the
         Shortfall Year's Performance Target and the EBITDA actually
         generated by Bluffs Run in such Shortfall Year), then the number of
         Performance Based Restricted Shares that would have vested in the
         Shortfall Year if the Performance Target had been satisfied, shall
         vest retroactively as if the Performance Target in the Shortfall
         Year had been satisfied.

(z)  Notwithstanding the foregoing  provisions of clauses (x) and (y), no
     Performance Based Restricted Shares shall become vested prior to Referendum
     Approval (as such term is defined in Section 2.2.1 of that certain Purchase
     and Sale Agreement and Joint Escrow Instructions dated August 31, 1999,
     by and between HBR Realty Company, Inc. and Iowa West Racing
     Association) and, in the event that Referendum Approval does not occur,
     Executive shall immediately forfeit all of

                                         4

<PAGE>

     the Performance Based Restricted Shares, except to the intent provided
     otherwise in the Option and Restricted Stock Agreement.

     All other terms of the Stock Awards shall be contained in the Option and
Restricted Stock Agreement, including without limitation, the right of
Employer to call shares of Common Stock covered by the Stock Awards.

     (d) Commencement Incentive. As an inducement to Executive to accept
employment with Employer and as consideration therefor, Employer shall pay to
Executive a special commencement incentive bonus consisting of (i) a lump sum
cash payment equal to $125,000, payable to Executive on January 2, 2001, (ii)
subject to Executive's execution of the Stockholders Agreement of the
Company, dated as of February 2, 1999 (as the same may be amended from time
to time, the "Stockholders Agreement"), a grant of 73 shares of Class A
Common Stock and 7,293 shares of Class B Common Stock (such shares of Class A
Common Stock and Class B Common Stock referred to collectively as the "Share
Grants"), the Share Grants to be transferred to Executive on the Commencement
Date, free and clear of all restrictions other than the restrictions and
other provisions of the Stockholders Agreement, and (iii) a special
restricted stock award (the "Special Stock Award") consisting of 60 shares of
Class Stock and Class B Common Stock, collectively, the "Special Restricted
Shares"). The Special Restricted Shares shall be subject to restrictions on
transfer which shall lapse in two annual installments, with the first such
installment to lapse as to the remaining 44.44% of the Special Restricted
Shares on February 2, 2002, subject in each case to Executive's continued
Employment until the applicable lapse date.

     At the request of Executive, Employer shall make one or more interest
bearing loans to Executive in an amount equal to the actual Federal, state
and local income taxes incurred by Executive in connection with the grant to
Executive of the Share Grants and/or the lapse of restrictions applicable to
all or any portion of the Special Restricted Shares, each such loan to be
made to Executive within a reasonable period of time prior to the due date
for such applicable taxes and to be secured solely by the Share Grant or the
Special Restricted Shares, as applicable. Each such loan shall (i) bear
interest at an annual rate equal to the greater (x) the rate provided in
Section 1274(b)(2)(B) of the Code as of the date of origination of such loan
and (y) 6%, (ii) provide for the term of the loan to expire and the entire
principal amount of the loan and all accrued but unpaid interest thereon to be
due and payable on the earlier of (x) the sixth anniversary of the date of
origination of the loan and (ii) the Forfeiture Provision Expiration Date
(within the meaning if the Option and Restricted Stock Agreement) and (iii)
provide for accrued interest to be due and payable annually, as of the last
day of each calendar year ending during the term of the loan; PROVIDED, the
Employer shall cause Executive's obligation to pay accrued interest that
becomes due and payable on any such loan prior to the expiration of its term
to be forgiven or satisfied as of the due date for such interest payment and
Employer shall make a cash payment to Executive in an amount equal to the net
income and employment taxes incurred by Executive as a result of such cash
payment and Employer's forgiving or otherwise causing to be satisfied such
interest payments.

                                      5

<PAGE>

     5. EMPLOYEE BENEFITS. During the Employment Period, Executive shall be
entitled to participate in all employee pension, welfare, fringe and other
benefit plans or arrangements that are made available to Employer's other
senior executives, at a level commensurate with Executive's position with
Employer and other wise on the terms and conditions then prevailing under
each such plan or arrangement.

     6. PERQUISITES AND EXPENSES.

     (a) GENERAL. During the Employment Period, Executive shall be entitled
to participate in all special benefit or perquisite programs generally
available from time to time to senior executives of Employer, at a level
commensurate with Executive's position with Employer and otherwise on the
terms and conditions then prevailing under each such program.

     (b) BUSINESS TRAVEL, LODGING, ETC. Employer shall reimburse Executive
for all reasonable travel, lodging, meal, entertainment and other reasonable
expenses incurred by him in connection with his performance of services
hereunder upon submission to Employer of evidence of the amount of each such
expense.

     (c) VACATION. During the Employment Period, Executive shall be entitled
to at least four weeks paid vacation per year.

     7.  TERMINATION OF EMPLOYMENT.

     (a) TERMINATION DUE TO DEATH OR DISABILITY. In the event that
Executive's employment hereunder terminates due to death or is terminated by
Employer due to Executive's Disability (as defined below), no termination
benefits shall be payable to or in respect of Executive except as provided
in Section 7(f)(ii). For purposes of this Agreement, "Disability" shall mean
a physical or mental disability that prevents the performance by Executive of
his duties hereunder for a continuous period of six months or longer. The
determination of Executive's Disability shall (i) be made by an independent
physician who is reasonably acceptable to Employer and Executive (or his
representative), (ii) be final and binding on the parties hereto and (iii) be
based on such competent medical evidence as shall be presented to such
independent physician by Executive and/or Employer or by any physician or
group physicians or other competent medical experts employed by Executive
and/or Employer to advise such independent physician.

     (b) TERMINATION BY EMPLOYER FOR CAUSE. Executive's employment may be
terminated by Employer for Cause. In the event of Executive's termination by
Employer for Cause, no termination benefits shall be payable to or in respect
of Executive except as provided in Section 7(f)(ii). Employer shall have Cause
to terminate Executive's employment in the event of Executive's (i) gross
negligence or willful malfeasance in the performance of his duties under this
Agreement, (ii) failure to obtain or retain any permits, licenses, or
approvals which may be required by any state or local authorities in order to
permit Executive to continue his employment as contemplated by this Agreement
which shall not be cured within thirty days following written notice to
Executive of such failure and a demand to cure such failure, (iii) conviction
of any felony or conviction of a crime involving moral turpitude, (iv)
dishonesty with respect to Employer (including, without limitation, fraud)
resulting in a breach of duty to

                                       6
<PAGE>

Employer involving Executive's personal gain or profit, or (v) engaging in
any activity that is in violation of the provisions of Section 8 or 9 of this
Agreement, which shall not be cured within thirty days following written
notice to Executive of such violation and a demand to cure such violation. If
Employee shall cure such failure or violation within such period, Employees'
employment hereunder shall be reinstated without prejudice.

     (c)  TERMINATION WITHOUT CAUSE. A termination "Without Cause'' shall
mean a termination of Executive's employment by Employer other than any such
termination due to Executive's Disability or for Cause. In the event of
Executive's termination by Employer Without Cause, Executive shall be
entitled to the termination benefits described in Sections 4(b) and 7(f)(ii).

     (d)  TERMINATION BY EXECUTIVE. Executive may terminate his employment
for any reason. A termination of employment by Executive for "Good Reason"
shall mean a termination by Executive of his employment with Employer if (x)
Employer shall, without Executive's prior written consent, willfully and
materially breach its obligations under this Agreement, (y) Executive
provides Employer written notice pursuant hereto stating with specificity the
respects in which Executive believes Employer to have willfully and
materially breached it obligations under this Agreement and (z) within
thirty (30) days following the date of such notice Employer shall not have
cured such breach. In the event of a termination by Executive for Good
REason, Executive shall be entitled to the termination benefits described in
Sections 4(b) and 7(f)(ii). In the event of a termination by Executive
without Good REason, no termination benefits shall be payable to or in
respect of Executive except as provided in Section 7(f)(ii).

     (e)  NOTICE OR TERMINATION. Any termination by Employer pursuant to
Section 7(a), 7(b) or 7(c), or by Executive pursuant to Section 7(d), shall
be communicated by a Written Notice of Termination addressed to the other
party to this Agreement. A "Notice of Termination" shall mean a notice
stating that Executive's employment with Employer has been or will be
terminated and the provisions hereof upon which such termination is based.

     (f)  PAYMENTS UPON CERTAIN TERMINATIONS.

     (i)  In the event of a termination of Executive's employment by Employer
Without Cause or a termination by Executive of his employment for Good
Reason, Employer shall pay to Executive (or, following his death, to
Executive's beneficiaries) a lump sum cash payment equal to the lesser of (x)
the sum of 200% of (I) Executive's Base Salary and (II) the Deemed Bonus
Amount and (y) the sum of (I) the installments of Base Salary and (II) the
installments of Base Salary that would have been payable to Executive's
termination of employment for the remaining portion of the Employment Period
but for Executive's termination of employment (the "Severance Calculation
Period") and (II) the product of the Deemed Bonus Amount (as defined below)
multiplied by the number of months in the Severance Calculation Period. Such
lump sum amount shall be payable to Executive (or his beneficiaries) within 30
days following the Date of Termination.

     The term "Deemed Bonus Amount" shall mean an annualized bonus of
$100,000.

                                       7
<PAGE>

     In the event of any such termination, Employer shall continue to provide
to Executive during the Severance Calculation Period (or for a period of two
years, if shorter) the life, medical, dental, accidental death and
dismemberment and prescription drug benefits provided to executive
immediately prior to his termination pursuant to Section 5 hereof (the
"Continued Benefits").

     Executive shall not have a duty to mitigate the costs to Employer under
this Section 7(f)(i), except that Continued Benefits shall be reduced or
canceled to the extent of any comparable benefit coverage offered to
Executive by a subsequent employer or other person for which Executive
performs services, including but not limited to consulting services, during
the period such Continued Benefits are to be provided to Executive.

     (ii)  If Executive's employment shall terminate upon his death or
Disability or in Employer shall terminate Executive's employment for Cause or
Executive shall terminate his employment without Good Reason, Employer shall
pay Executive his full Base Salary through the Date of Termination and Base
Salary in lieu of accrued but unused vacation.

     (iii) Except as specifically set forth in this Section 7(f), no benefits
payable to Executive under any otherwise applicable plan, policy, program or
practice of Employer shall be limited by this Section 7(f), PROVIDED that
the amount, if any, paid or payable to Executive under the terms of any such
plan, policy, program or practice relating to severance shall reduce the
amounts payable under Section 7(f)(i).

     (g)  DATE OF TERMINATION. As used in this Agreement, the term "Date of
Termination" shall mean (i) if Executive's employment is terminated by his
death, the date of his death, (ii) if Executive's employment is terminated by
Employer for Cause, the date on which Notice of Termination is given as
contemplated by Section 7(e) or, if later, the date of termination specified
in such Notice, and (iii) if Executive's employment is terminated by Employer
Without Cause, due to Executive's Disability or by Executive for any reason,
the date that is 30 days after the date on which Notice or Termination is
given as contemplated by Section 7(e).

     8.  UNAUTHORIZED DISCLOSURE. During the period of Executive's employment
with Employer and the ten-year period following any termination of such
employment, without the prior written consent of the Board or its authorized
representative, except to the extent required by an order of a court having
jurisdiction or under subpoena from an appropriate government agency, in
which event, Executive shall use his best efforts to consult with the Board
prior to responding to any such order or subpoena, and except as required in
the performance of his duties hereunder, Executive shall use his best efforts
or consult with the Board prior to responding to any such order or subpoena,
and except as required in the performance of his duties hereunder, Executive
shall not disclose any confidential or proprietary trade secrets, customer
lists, drawings, designs, information regarding product development,
marketing plans, sales plans, manufacturing plans, management organization
information (including but not limited to data and other information relating
to members of the Board or to management of Employer or any of its
subsidiaries), operating policies or manuals, business plans, financial
records, packaging design or other financial, commercial, business or
technical information (a) relating to Employer or any of its subsidiaries or
(b) that Employer or any of its subsidiaries may receive belonging to
suppliers, customers or others who do business with Employer or any of its
subsidiaries (collectively, "Confidential Information") to any third person
unless such

                                       8
<PAGE>

Confidential Information has been previously disclosed to the public or is in
the public domain (other than by reason of Executive's breach of this Section
8).

     9.  NON-COMPETITION

     (a)  NON-COMPETE COVENANT. During the period of Executive's employment
with Employer and, following any termination of Executive's employment, the
period ending in the earliest of (x) the one year anniversary of the Date of
Termination, (y) the last day of the Employment Period (determined without
regard to any early termination of the Initial Term or any then current
Additional Term pursuant to Article 7) and (z) provided Employer provides
written notice to Executive of Employer's election to extend the period of
restriction under this Section 9(a) as permitted under Section 9(b) and pays
to Executive the Additional Payment within two days of the Date of
Termination, the last day of the Post-Termination Period of Restriction,
Executive shall not in any city, town, county, parish, other municipality in
any state of the United States or Native American territory (the names of
each such city, town, county, parish, other municipality or Native American
territory, including, without limitation, the name of each county in the
State of Nevada being expressly incorporated by reference herein), or any
other place in the world, where Employer, or its subsidiaries, affiliates,
successors, or assigns, engages in owning, operating managing and/or
developing land-based or riverboat casinos or hotels associated or
materially competitive with casinos, or any other business engaged in from
time to time by Employer or its subsidiaries, affiliates, successors or
assigns in which Executive has had significant authority and responsibility
(the "Business"), directly or indirectly, (i) engage in a competing business
for Executive's own account; (ii) enter the employ or, or render any
consulting services to, any entity that compete with Employer, or its
subsidiaries, affiliates, successors or assigns, in the Business; or (iii)
become interested in any such entity in any capacity, including, without
without limitation, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant; PROVIDED, HOWEVER,
Executive may (A) own, directly or indirectly, solely as a passive
investment, securities of any entity traded on any national securities of
such entity and does not, directly or indirectly, own 5% or more of any class
of securities of such entity, (B) make passive investment in hospitality
enterprises not materially competitive with gaming and/or enterprises which
are principally bar/restaurant enterprises containing no more than 50 gaming
positions, PROVIDED, that such investments shall not materially interfere
with the performance of Executive's interests in Colony Capital LLC or any of
its affiliates (collectively, "Colony") or otherwise as co-investor with
Colony.

     (b)  POST-TERMINATION PERIOD OF RESTRICTION. In the event of the
termination of Executive's employment by Employer Without Cause or a
termination by Executive of his employment for Good REason, if the DAte of
Termination occurs (i) within the one year period immediately preceding the
scheduled expiration date for the Initial Term of (ii) at any time during an
Additional Term, as the case may be, Employer may elect to require Executive
to comply with the non-competition covenants of Executive described in
Section 9(a) hereof  during the period (such period the "Post-Termination
Period of Restriction") ending on the earlier of (x) the six month
anniversary of the last day of the Employment Period (determined without
regard to any early termination of the Initial Term or any then current
Additional Term pursuant to

                                       9
<PAGE>

Article 7) and (y) the one year anniversary of the Date of Termination
provided that Employer pays Executive an additional severance amount ("the
Additional Payment"), in one lump sum cash payment, equal to the product of
(A) the number of months in the Post-Termination Period of Restriction
multiplied by (B) one twelfth of the sum of the Base Salary and the Deemed
Bonus Amount.

     10. RETURN OF DOCUMENTS. In the event of the termination of Executive's
employment for any reason, Executive shall deliver to Employer all of (i) the
property of each of Employer and its subsidiaries and (ii) the non-personal
documents and data of any nature and in whatever medium of each of Employer
and its subsidiaries, and he shall not take with him any such property,
documents or data or any reproduction thereof, or any documents containing or
pertaining to any Confidential Information.

     11.  INJUNCTIVE RELIEF WITH RESPECT TO COVENANTS; FORUM, VENUE AND
JURISDICTION. Executive acknowledges and agrees that the covenants,
obligations and agreements of Executive contained in Sections 8,9,10 and 11
relate to special, unique and extraordinary matters and that a violation of
any of the terms of such covenants, obligations or agreements will cause
Employer irreparable injury for which adequate remedies are not available at
law. Therefore, Executive agrees that Employer shall be entitled to an
injunction, restraining order or such other equitable relief (without the
requirement to post bond) as a court of competent jurisdiction may deem
necessary or appropriate to restrain Executive from committing any violation
of such covenants, obligations or agreements. These injunctive remedies are
cumulative and in addition or any other rights and remedies Employer may have.

     12.  ASSUMPTION OF AGREEMENT. Employer shall require any successor
thereto, by agreement in form and substance reasonable satisfactory to
Executive, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that Employer would be required to
perform it if no such succession had taken place. Failure of Employer to
obtain such agreement prior to the effectiveness of any such succession shall
be a breach of this Agreement and shall entitled Executive to compensation
from Employer in the amount and on the same terms as Executive would be
entitled hereunder if Employer had terminated Executive's employment Without
Cause as described in Section 7, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination.

     13.  ENTIRE AGREEMENT. This Agreement (including the Exhibit hereto_
constitutes the entire agreement among the parties hereto with respect to
the subject matter hereof. All prior correspondence and proposals (including
but not limited to summaries of proposed terms) and all prior promises,
representations, understandings, arrangements and agreements relating to such
subject matter (including but not limited to those made to or with Executive
by any other person and those contained in any prior employment, consulting or
similar agreement entered into by Executive and Employer or any predecessor
thereto or affiliate thereof) are merged herein and superseded hereby.

     14.  MISCELLANEOUS.

                                       10

<PAGE>

      (a) BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding on and
inure to the benefit of Employer and its successors and permitted assigns.
This Agreement shall also be binding on and inure to the benefit of Executive
and his heirs, executors, administrators and legal representatives. This
Agreement shall not be assignable by any party hereto without the prior
written consent of the other parties hereto, except as provided pursuant to
this Section 14(a). Employer may effect such an assignment without prior
written approval of Executive upon the transfer of all or substantially all
of its business and/or assets (by whatever means), PROVIDED that the
successor to Employer shall expressly assume and agree to perform this
Agreement in accordance with the provisions of Section 12.

      (b) ARBITRATION. Any dispute or controversy arising under or in
connection with this Agreement (except in connection with any request or
application for injunctive relief in accordance with Section 13) shall be
resolved by binding arbitration. The arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association then in effect at the time of the arbitration, and otherwise in
accordance with principles which would be applied by a court of law or
equity. The arbitrator shall be acceptable to both Employer and Executive.
If the parties cannot agree on an acceptable arbitrator, the dispute shall be
heard by a panel of three arbitrators, one appointed by Employer, one
appointed by Executive, and the third appointed by the other two
arbitrators. All expenses of arbitration shall be borne by the party who
incurs the expense, or, in the case of joint expenses, by both parties in
equal portions, except that, in the event Executive prevails on the principal
issues of such dispute or controversy, all such expenses shall be borne by
Employer.

      (c) GOVERNING LAW. This Agreement shall be government by and construed
in accordance with the laws of Nevada, without reference to principles of
conflicts of laws.

      (d) TAXES. Employer may withhold from any payments made under this
Agreement all applicable taxes, including but not limited to income,
employment and social insurance taxes, as shall be require by law.

      (e) AMENDMENTS. No provision of this Agreement may be modified, waived
or discharged unless such modification, waiver or discharge is approved by
the Board or a person authorized thereby and is agreed to in writing by
Executive. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No or among the parties hereto or from any failure by any
party hereto to assert its right hereunder on any occasion or series of
occasions.

      (f) SEVERABILITY. In the event that any one or more of the provisions
of this Agreement shall be or become invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not be affected thereby.

                                      11
<PAGE>

      (g) NOTICES. Any notice or other communication required or permitted to
be delivered under this Agreement shall be (i) in writing, (ii) delivered
personally, by courier service or by certified or registered mail,
first-class postage prepaid and return receipt requested, (iii) deemed to
have been received on the date of delivery or, if so mailed, on the third
business day after the mailing thereof, and (iv) addressed as follows (or to
such other address as the party entitled to notice shall hereafter designated
in accordance with the terms hereof):

      (A) If to Employer, to it at:

          Attention:   General Counsel

      (B) if to Executive, to him at his residential address as currently on
          file with Employer.

      Copies of any notices or other communications given under this
Agreement shall also be given to:

          Colony Capital, Inc.

          ATTENTION:  General Counsel

      (h) COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall be deemed an original and all of which together shall
constitute one and the same instrument.

      (i) HEADINGS. The section and other headings contained in this
Agreement are for the convenience of the parties only and are not intended to
be a part hereof or to affect the meaning or interpretation thereof.

                                      12

<PAGE>

     IN WITNESS WHEREOF, Employer has duly executed this Agreement by its
authorized representative, and Executive has hereunto set his hand, in each
case effective as of the date first above written.

                                         HARVEYS CASINO RESORTS

                                         By: /s/ CHARLES W. SCHARER
                                             -----------------------------
                                             Name:  Charles W. Scharer
                                             Title: Pres/CEO

                                         Executive:

                                             /s/ WADE HUNDLEY
                                             -----------------------------
                                             Name: Wade Hundley

                                          13

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