Document:

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                                                                    Exhibit 10.2

                           ONYX SOFTWARE CORPORATION

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this "Agreement") is made as of the 5th
                                               ---------
day of January, 2001, by and between Onyx Software Corporation, a Washington
corporation ("Onyx"), and Odyssey Strategic Partners, LLC, a Delaware limited
              ----
liability company (the "Holder"), the holder of Class A Units of RevenueLab,
                        ------
LLC, a Delaware limited liability company (the "Company").
                                                -------

                                   RECITALS

     A.   Onyx, the Company, and all of the members of the Company (including
the Holder) have entered into a Unit Purchase Agreement (the "Purchase
                                                              --------
Agreement"), dated January 5, 2001, pursuant to which Onyx will purchase all of
---------
the outstanding Class A and Class B Units of the Company (the "Company Units"),
                                                               -------------
and the holders of Company Units will receive shares of common stock, par value
$0.01 per share, of Onyx (the "Onyx Common Stock") in exchange for their Company
                               -----------------
Units.  Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Purchase Agreement.

     B.   As a condition to the transactions contemplated by the Purchase
Agreement (the "Transaction"), Onyx must enter into this Agreement with the
                -----------
Holder to provide certain rights to register the shares of Onyx Common Stock to
be received by the Holder in the Transaction.

     C.   Onyx and the Holder each desire to facilitate the Transaction by
agreeing to the terms and conditions set forth in this Agreement.

                                   AGREEMENT

     The parties to this Agreement hereby covenant and agree as follows:

1.   DEFINITIONS

     For purposes of this Agreement:

     1.1  The term "Registrable Securities" means the shares of Onyx Common
                    ----------------------
Stock issued to the Holder in the Transaction, either at or after the Closing
thereof (and any other shares of Onyx Common Stock issued as a dividend or other
distribution with respect to, or in exchange for or in replacement of, such
shares); provided, however, that the foregoing definition shall exclude any
         -------- --------
Registrable Securities sold by a person or entity in a transaction in which his,
her or its rights under this Agreement are not permissibly assigned or
transferred in accordance with Section 3 hereof.

     1.2  The term "Holder" means (a) as of the date of this Agreement, the
                    ------
Holder and (b) after the date of this Agreement, any person to whom Registrable
Securities have been permissibly assigned or transferred in accordance with
Section 3 hereof.
<PAGE>

     1.3  The term "Form S-3" means such form of registration statement under
                    --------
the Securities Act of 1933, as amended (the "Securities Act"), or any successor
                                             --------------
form under the Securities Act that permits significant incorporation by
reference of Onyx's public filings under the Securities Exchange Act of 1934, as
amended (the "Exchange Act").
              ------------

     1.4  The term "Disclosure Condition" means, that in the good-faith judgment
                    --------------------
of Onyx's Board of Directors, the sale of the Registrable Securities (or any
public disclosure that would be necessary or advisable in connection with such
sale) would materially interfere with any pending or proposed acquisition,
corporate reorganization or other material transaction involving Onyx or its
subsidiaries, would require Onyx to make either necessary or advisable public
disclosure of information, the disclosure of which would have a material adverse
effect on Onyx, or would otherwise create a substantial likelihood of detriment
or injury to Onyx or its business or affairs.

2.   FORM S-3 REGISTRATION

     2.1  Shelf Registration.
          ------------------

          (a)  No later than 60 days after the Closing Date, Onyx shall prepare
and file with the Securities and Exchange Commission (the "SEC") a registration
                                                           ---
statement on Form S-3 or the shortest form of registration statement then
available for use by Onyx (the "Registration Statement") registering for resale
                                ----------------------
the Registrable Securities issued to the Holder pursuant to Section 1.3(a)(i) of
the Purchase Agreement, which sales may be effected from time to time on the
Nasdaq National Market or in privately negotiated transactions.  Onyx shall use
commercially reasonable efforts to cause the Registration Statement to (i)  be
declared effective by the SEC as soon as practicable after filing and (ii)
remain effective until the earlier of (A) one year after the Closing Date and
(B) the date on which all of the Registrable Securities covered by the
Registration Statement have been sold.  This period of effectiveness of the
Registration Statement shall be referred to herein as the "Selling Period" for
                                                           --------------
the Registrable Securities registered thereon.

          (b)  No later than 30 days after the issuance of shares of Onyx Common
Stock, if any, to the Holder pursuant to Section 1.3(a)(ii) of the Purchase
Agreement, Onyx shall prepare and file with the SEC a registration statement on
Form S-3 or the shortest form of registration statement then available for use
by Onyx (the "Second Registration Statement") registering for resale such
              -----------------------------
Registrable Securities, which sales may be effected from time to time on the
Nasdaq National Market or in privately negotiated transactions.  Onyx shall use
commercially reasonable efforts to cause the Second Registration Statement to
(i) be declared effective by the SEC as soon as practicable after filing and
(ii) remain effective until the earlier of (A) the first anniversary of the
issuance of the Registrable Securities covered by the Second Registration
Statement and (B) the date on which all such Registrable Securities have been
sold.  This period of effectiveness of the Second Registration Statement shall
be referred to herein as the "Selling Period" for the Registrable Securities
                              --------------
registered thereon.

          (c)  Onyx shall not be obligated to effect any such registration
pursuant to this Section 2.1 if Onyx shall furnish to the Holder a certificate
signed by the president, chief executive officer or chief financial officer of
Onyx stating that: (A) in the good-faith judgment

                                       2
<PAGE>

of Onyx's Board of Directors, effectuating a registration would be materially
detrimental to Onyx and its shareholders or (B) there exists a Disclosure
Condition, in which event Onyx shall have the right to defer the filing of
either the Registration Statement or the Second Registration Statement, as
applicable, until the filing would no longer be detrimental or until disclosure
is made, but in no event later than 60 days after the date of such certificate
(subject to the limitation on delays and suspensions set forth in Section 2.3(b)
hereof); provided, however, that Onyx may not so delay the filing at any time
         --------  -------
during which Onyx is publicly selling shares of its capital stock; and provided
                                                                       --------
further, that the applicable Selling Period shall be extended by the number of
-------
days by which the initial filing of the Registration Statement or, as
applicable, the Second Registration Statement was so delayed.

          (d)  Notwithstanding any other provision of this Agreement, Onyx shall
have the right, in its sole discretion, to include shares of Onyx Common Stock
held by other selling shareholders on either the Registration Statement, the
Second Registration Statement, or both.

     2.2  Obligations of Onyx.
          -------------------

     In effecting the registration of the Registrable Securities under Section
2.1 hereof, Onyx shall use commercially reasonable efforts to:

          (a)  during each Selling Period, prepare (and afford counsel for the
Holders a reasonable opportunity to review and comment on) and file with the SEC
such amendments and supplements to the Registration Statement or the Second
Registration Statement and the prospectus used in connection with each such
registration statement (each, a "Prospectus") as may be necessary to comply with
                                 ----------
the provisions of the Securities Act and applicable state securities laws with
respect to the disposition of all Registrable Securities covered by the
Registration Statement and the Second Registration Statement;

          (b)  during each Selling Period, furnish to each of the Holders such
numbers of copies of the applicable Prospectus, including the applicable
preliminary Prospectus, and such other documents as the Holders may reasonably
request to facilitate the disposition of the Registrable Securities covered by
the Registration Statement or the Second Registration Statement;

          (c)  promptly notify the Holders when the SEC notifies Onyx the
Registration Statement or the Second Registration Statement, as the case may be,
becomes effective;

          (d)  register and qualify the Registrable Securities covered by the
Registration Statement and the Second Registration Statement under the
securities or blue sky laws of such states or jurisdictions as shall be
reasonably requested by the Holders; provided, however, that Onyx shall not be
                                     --------  -------
required, in connection with or as a condition to such registration and
qualification, to qualify to do business or to file a general consent to service
of process in any such states or jurisdictions;

                                       3
<PAGE>

          (e)  cause all such Registrable Securities covered by the Registration
Statement and the Second Registration Statement to be listed on the Nasdaq
National Market or such other securities exchange on which Onyx Common Stock is
then listed; and

          (f)  during the period in which a Prospectus is required to be
delivered under the Securities Act, promptly notify each Holder of Registrable
Securities covered by the Registration Statement or the Second Registration
Statement, as applicable, in the event there exists a Disclosure Condition.

     2.3  Suspension of Registration Statement.
          ------------------------------------

          (a)  If at any time, and from time to time, during either Selling
Period Onyx shall furnish to the Holders a certificate signed by the president,
chief executive officer or chief financial officer of Onyx stating that (i) in
the good-faith judgment of Onyx's Board of Directors, permitting the sale of
Onyx Common Stock pursuant to the Registration Statement or the Second
Registration Statement at such time would be materially detrimental to Onyx and
its shareholders or (ii) there exists a Disclosure Condition, Onyx may require
that no sales be made by the Holders under the Registration Statement, the
Second Registration Statement or the applicable Prospectus until such time as
the board of directors notifies the Holders in writing that such sales may be
resumed; provided, however, that Onyx shall not exercise this right for more
         -------- --------
than a total of 60 days in the case of any one delay (subject to the limitation
on delays and suspensions set forth in Section 2.3(b) hereof); and provided
                                                                   --------
further that Onyx may not so suspend the use of the Registration Statement or
-------
the Second Registration Statement during any time in which Onyx is publicly
selling shares of its capital stock; and provided further that the applicable
                                         -------- -------
Selling Period shall be extended by the aggregate number of days for which the
use of the Registration Statement or the Second Registration Statement is
suspended.

          (b)  Notwithstanding any other provision in this Agreement, Onyx shall
not exercise its rights under Section 2.1(c), Section 2.3(a) and Section 2.3(c)
hereof to delay or suspend the Registration Statement and the Second
Registration Statement, collectively, for more than an aggregate of 90 days.

          (c)  If such suspension shall relate to a Disclosure Condition, then
Onyx shall (i) make the required disclosure as soon as practicable after such
notice to the Holders and (ii) if necessary, prepare and file as soon as
reasonably practicable any amendment to the Registration Statement or the Second
Registration Statement or supplement to the applicable Prospectus or any
Exchange Act filing as shall be required to correct any untrue statement or
omission causing a Disclosure Condition, notify the Holders of any such filing
and furnish the Holders with a reasonable number of copies of any such amendment
or supplement.  Onyx may delay filing, preparing or distributing any such
amendment or supplement, however, if Onyx shall deliver a certificate signed by
the president, chief executive officer or chief financial officer of Onyx
stating that, in the good-faith judgment of Onyx's Board of Directors, amending
the Registration Statement or the Second Registration Statement or supplementing
the Prospectus at such time would be materially detrimental to Onyx and its
shareholders; provided, however, that Onyx shall not exercise this right for
              -------- --------
more than 60 days in the case of any one delay (subject to the limitation on
delays and suspensions set forth in Section 2.3(b) hereof); and provided further
                                                                -------- -------
that Onyx may not so delay such amendment or supplement

                                       4
<PAGE>

during any time in which Onyx is publicly selling shares of its capital stock;
and provided further that the applicable Selling Period shall be extended by the
    -------- -------
aggregate number of days for which the amendment or supplement is delayed.

          (d)  If a Holder receives notification from Onyx pursuant to Section
2.3(a) that the use of the Registration Statement or the Second Registration
Statement or the applicable Prospectus shall be suspended, then such Holder
shall: (i) keep the fact of such notification and its contents confidential and
(ii) immediately suspend all sales of Onyx Common Stock and any use of the
Registration Statement, the Second Registration Statement or Prospectus to which
the notification applies, until such time as such Holder receives notification
from Onyx that such sales may be made.

     2.4  Information With Respect to Holders.
          -----------------------------------

     Onyx shall not be required to take any action pursuant to this Article 2
with respect to the Registrable Securities of any selling Holder unless such
Holder shall furnish to Onyx such information as shall be required to effect the
registration of such Holder's Registrable Securities, including information
regarding such Holder, the Registrable Securities held by such Holder and such
Holder's intended method of disposing of the Registrable Securities.

     2.5  Expenses of Registration.
          ------------------------

     Onyx shall pay all expenses of registration pursuant to this Agreement,
including all registration, filing, qualification, printers' and accounting
fees, and fees and disbursements of counsel for Onyx, but excluding any fees,
commissions or discounts incurred by any selling Holder in connection with the
sale of the Registrable Securities and the fees and disbursements of counsel for
any selling Holder.

3.   ASSIGNMENT

     The Registrable Securities, and the registration rights granted under
Article 2, may be assigned (but only with all related obligations) by a Holder:

     (a)  if such Holder is an entity, to such Holder's constituent partners or
members or to any parent, subsidiary or affiliate entity of such Holder; or

     (b)  if such Holder is an individual, to such Holder's spouse, lineal
descendants, parents or siblings (or trust for the benefit of one or more of
such persons or a custodian of the property of any of the foregoing) during such
Holder's lifetime by gift or upon such Holder's death by will or intestacy; or

     (c)  any transferee who acquires all of such Holder's Registrable
Securities.

Such transfer or assignment shall be effective only if (i) within a reasonable
time after such transfer, the transferring or assigning Holder (or, if
applicable, the representative of such Holder's estate) furnishes Onyx with
written notice of the name and address of such transferee or assignee and the
number of Registrable Securities with respect to which such registration

                                       5
<PAGE>

rights are being assigned, and (ii) immediately following such transfer, the
transferee or assignee agrees in writing to take and hold the Registrable
Securities in accordance with the restrictions, obligations and conditions
specified in this Agreement.

4.   INDEMNIFICATION

     4.1  By Onyx.
          -------

     To the extent permitted by law, Onyx shall indemnify and hold harmless each
Holder, and any person who controls or is controlled by such Holder within the
meaning of the Securities Act, against any losses, claims, damages, or
liabilities, or actions with respect to such losses, claims, damages or
liabilities, to which such Holder or controlling or controlled person may become
subject under the Securities Act, the Exchange Act or other federal or state law
(any of these, a "Loss"), insofar as such Loss arises out of or is based on:
                  ----
(a) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, the Second Registration Statement or
any Prospectus, including any preliminary Prospectus, final Prospectus or any
amendment or supplement to the Registration Statement, the Second Registration
Statement or any Prospectus; (b) the omission or alleged omission to state in
the Registration Statement, the Second Registration Statement or any Prospectus
a material fact required to be stated in the Registration Statement, the Second
Registration Statement or any Prospectus, or necessary to make the statements in
the Registration Statement, the Second Registration Statement or any Prospectus
not misleading; or (c) any violation or alleged violation by Onyx of the
Securities Act, the Exchange Act, any state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state
securities law (any of (a), (b) or (c), a "Violation").  Onyx will promptly pay
                                           ---------
to each such Holder or controlling or controlled person, as incurred, any legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such Loss.  Notwithstanding the foregoing, (i) the
indemnification obligations of Onyx contained in this Section 4.1 shall not
apply to amounts paid in settlement of any Loss if such settlement is effected
without the consent of Onyx (which consent shall not be unreasonably withheld),
(ii) Onyx shall not be liable to any Holder or controlling or controlled person
for any Loss to the extent that such Loss arises out of or is based on written
information furnished by any such Holder or controlling or controlled person
expressly for use in connection with the Registration Statement, the Second
Registration Statement or any Prospectus, and (iii) Onyx shall not be liable to
any Holder or controlling or controlled person for any Loss to the extent such
Loss arises out of the failure of such Holder or controlling or controlled
person to deliver a copy of any Prospectus or Prospectus supplement.

     4.2  By the Holders.
          --------------

     To the extent permitted by law, each selling Holder will indemnify and hold
harmless Onyx, each of its directors, each of its officers who has signed the
Registration Statement or the Second Registration Statement, each person or
entity, if any, who controls or is controlled by Onyx within the meaning of the
Securities Act, any other Holder selling securities in the Registration
Statement or the Second Registration Statement and any controlling person of any
such Holder, against any Loss to which any of the foregoing persons may become
subject, to the extent that such Loss arises out of or is based on any Violation
occurring (a) as a result of

                                       6
<PAGE>

the omission or alleged omission to state in the Registration Statement, the
Second Registration Statement or any Prospectus a material fact required to be
stated in the Registration Statement, the Second Registration Statement or any
Prospectus, or necessary to make the statements in the Registration Statement,
the Second Registration Statement or any Prospectus not misleading, if such
omission or misstatement is made in reliance upon and in conformity with written
information furnished by such Holder expressly for use in connection with the
Registration Statement, the Second Registration Statement or the applicable
Prospectus or (b) as a result of the failure of such Holder or controlling or
controlled person to deliver a copy of any Prospectus or Prospectus supplement.
Each such indemnifying Holder will promptly pay, as incurred, any legal or other
expenses reasonably incurred by any person entitled to indemnification pursuant
to this Section 4.2, in connection with investigating or defending any such
Loss; provided, however, that the indemnification obligations of the Holders
      --------  -------
contained in this Section 4.2 shall not apply to amounts paid in settlement of
any Loss if such settlement is effected without the consent of the Holder (which
consent shall not be unreasonably withheld); and provided, further, that in no
                                                 --------  -------
event shall any indemnification obligations of any Holder under this Section 4.2
exceed the aggregate proceeds received by such Holder in the offering, except in
the case of willful fraud by such Holder.

     4.3  Procedure.
          ---------

          (a)  Promptly after receipt by an indemnified party under this
Article 4 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim for
indemnification with respect to such action is to be made against any
indemnifying party under this Article 4, deliver to the indemnifying party a
written notice of the commencement of such action. The indemnifying party shall
have the right to participate in and, to the extent the indemnifying party so
desires, to assume the defense of such action jointly with any other
indemnifying party similarly noticed, with counsel mutually satisfactory to the
indemnified and indemnifying parties; provided, however, that an indemnified
                                      -------- --------
party (together with all other indemnified parties that may be represented
without conflict by one counsel) shall have the right to retain one separate
counsel, with the reasonable fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure by an indemnified
party to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action, however, will not relieve the
indemnifying party of any liability that it may have to the indemnified party
under this Article 4 unless, and to the extent, such failure is prejudicial to
the indemnifying party's ability to defend such action. No indemnifying party,
in defending any such claim or litigation, shall, except with the consent of
each indemnified party, consent to entry of any judgment or enter into any
settlement, unless the claimant or plaintiff agrees to release the indemnified
party from all liability with respect to such claim or litigation.

          (b)  If the indemnification provided for in this Article 4 is held by
a court of competent jurisdiction (and the time to appeal has expired or appeal
is denied) to be unavailable to an indemnified party with respect to any Loss,
then the indemnifying party, in lieu of indemnifying such indemnified party
pursuant to this Article 4, shall contribute to the

                                       7
<PAGE>

amount paid or payable by such indemnified party as a result of such Loss in
such proportion as is appropriate to reflect the relative fault of each of the
indemnifying party and the indemnified party in connection with the Violation
that resulted in such Loss as well as any other relevant equitable
considerations; provided, however, that in no event shall any contribution by a
                --------  -------
Holder under this Section 4.3(b) exceed the aggregate proceeds from the offering
received by such Holder, except in the case of willful fraud by such Holder. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the Violation relates to
information supplied by the indemnifying party or by the indemnified party and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such Violation.

5.   MISCELLANEOUS

     5.1  Termination of Entire Agreement Upon Change of Control.
          ------------------------------------------------------

     This Agreement shall terminate, and have no further force and effect, in
the event that Onyx shall sell, convey or otherwise dispose of all or
substantially all of its assets or business or merge with or into or consolidate
with any other corporation (other than a wholly owned subsidiary) or effect any
other transaction or series of related transactions in which more than 50% of
the voting power of Onyx is disposed of and Onyx is not the survivor; provided,
                                                                      --------
however, that this Agreement shall not be terminated following a merger effected
-------
solely for the purpose of changing the domicile of Onyx.

     5.2  Successors and Assigns.
          ----------------------

     Except as otherwise provided in this Agreement, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of the parties.  Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties to this
Agreement or their respective successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

     5.3  Amendments and Waivers.
          ----------------------

     Any term of this Agreement may be amended or waived only with the written
consent of Onyx and the Holder.

     5.4  Notices.
          -------

     Any notice, request or demand desired or required to be given under this
Agreement shall be in writing given by personal delivery, confirmed facsimile
transmission or overnight courier service, in each case addressed as set forth
on the signature page of this Agreement or to such other address as any party
shall have previously designated by such a notice.  The effective date of any
notice, request or demand shall be the date of personal delivery, the date on
which successful facsimile transmission is confirmed or the date actually
delivered by a reputable overnight courier service, as the case may be, in each
case properly addressed as provided in this Section 5.4 and with all charges
prepaid.

                                       8
<PAGE>

     5.5  Severability.
          ------------

     If any provision of this Agreement, or the application of such provision to
any person, place or circumstance, shall be held to be invalid, unenforceable or
void, all other provisions of this Agreement, and the invalidated provision as
applied to other persons, places and circumstances, shall remain in full force
and effect, and shall be liberally construed in order to carry out the intent of
the parties to this Agreement as nearly as possible.  Any court or arbitrator
having jurisdiction shall have the power to reform such provision to the extent
necessary for the provision to be enforceable under applicable law.

     5.6  Governing Law.
          -------------

     This Agreement shall be governed by and construed in accordance with the
laws of the state of Washington.

     5.7  Waiver of Jury Trial.
          --------------------

     Each of Onyx and the Holder hereby irrevocably waives all right to trial by
jury in any action, proceeding or counterclaim (whether based on contract, tort
or otherwise) arising out of or relating to this Agreement, the transactions
contemplated hereby or the actions of such parties in the negotiation,
administration, performance and enforcement hereof.

     5.8  Counterparts.
          ------------

     This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

     5.9  Headings.
          --------

     The titles and subtitles used in this Agreement are used for convenience
only and shall not be considered in construing or interpreting this Agreement.

     5.10 Entire Agreement.
          ----------------

     This Agreement, contains the entire agreement and understanding between the
parties with respect to the subject matter of this Agreement and supersedes any
prior or contemporaneous written or oral agreements with respect to such subject
matter between the parties.

     5.11 Rule 144 Reporting.
          ------------------

     With a view to making available the benefits of certain rules and
regulations of the SEC that may permit the sale of the Registrable Securities to
the public without registration, Onyx agrees at all times to:

          (a)  make and keep adequate current public information available, as
those terms are understood and defined in Rule 144 under the Securities Act;

                                       9
<PAGE>

          (b)  use its best efforts to file with the SEC in a timely manner all
reports and other documents required of Onyx under the Securities Act and the
Exchange Act; and

          (c)  furnish to each Holder upon request a written statement by Onyx
as to its compliance with the reporting requirements of such Rule 144 and of the
Securities Act and Exchange Act, a copy of the most recent annual or quarterly
report of Onyx, and such other reports and documents so filed by Onyx as such
Holder may reasonably request in availing itself of any rule or regulation of
the SEC allowing such Holder to sell any Registrable Securities without
registration.

                           [signature page follows]

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first above written.

ONYX SOFTWARE CORPORATION

     /s/ Brent Frei
-----------------------------------------
By:  Brent Frei
   --------------------------------------
Its: Chief Executive Officer
    -------------------------------------

Address:  3180 139th Ave. S.E., Suite 500
          Bellevue, WA 98005

Fax:  (425) 732-2413

HOLDER:
Odyssey Strategic Partners, LLC

By:  /s/ Walter Schindler
  ---------------------------------------
Its: Chairman and CEO
    -------------------------------------

Address:  610 Newport Center Drive
          Suite 1350
          Newport Beach, CA 92660

Fax:  949-509-7210

                                       11<PAGE>   1

                                                                    EXHIBIT 10.1

                       FIRST AMENDMENT TO CREDIT AGREEMENT

                  THIS FIRST AMENDMENT TO CREDIT AGREEMENT ("First Amendment")
is made and entered into as of the 21st day of December, 2000, by and among
BLACK HAWK/JACOBS ENTERTAINMENT, LLC, a Colorado limited liability company
("BHJE"), BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC., a Colorado corporation
("BHGD"), GILPIN VENTURES, INC., a Colorado corporation ("GVI"), GILPIN HOTEL
VENTURE, a Colorado joint venture partnership ("GHVP") and GOLD DUST WEST
CASINO, INC., a Nevada corporation ("GDWCI" and together with BHJE, BHGD, GVI
and GHVP, collectively the "Borrowers"), WELLS FARGO BANK, National Association,
BANK ONE, NA (formerly The First National Bank of Chicago), KEYBANK NATIONAL
ASSOCIATION and WEST COAST BANK (each individually a "Lender" and, together with
their respective successors and assigns, collectively the "Lenders"), WELLS
FARGO BANK, National Association, as the swingline lender (herein in such
capacity, together with its successors and assigns, the "Swingline Lender"),
WELLS FARGO BANK, National Association, as the issuer of letters of credit
hereunder (herein in such capacity, together with its successors and assigns,
the "L/C Issuer") and WELLS FARGO BANK, National Association, as the arranger
and administrative and collateral agent for the Lenders, Swingline Lender and
L/C Issuer (herein, in such capacity, called the "Agent Bank" and, together with
the Lenders, Swingline Lender and L/C Issuer, collectively referred to as the
"Banks").

                                    RECITALS:

                  WHEREAS:

                  A. BHJE, BHGD, GVI, GHVP and Banks (Wells Fargo Bank, National
Association, having succeeded to the Syndication Interest of First Security
Bank, N.A. by merger) entered into a Credit Agreement dated as of April 16, 1999
(the "Existing Credit Agreement") for the purpose of establishing a reducing
revolving line of credit in the initial principal amount of Sixty-Five Million
Dollars ($65,000,000.00), including a subfacility for the issuance of standby
letters of credit in the maximum aggregate amount of Ten Million Dollars
($10,000,000.00) at any time outstanding and further including a subfacility for
the funding of swingline advances up to the maximum aggregate amount of Five
Million Dollars ($5,000,000.00) at any time outstanding.

                  B. For the purpose of this First Amendment, all capitalized
words and terms not otherwise defined herein shall have the respective meanings
and be construed herein as provided in Section 1.01 of the Existing Credit
Agreement and any reference to a provision of the Existing Credit Agreement
shall be deemed to incorporate that provision as a part hereof, in the same
manner and with the same effect as if the same were fully set forth herein.

<PAGE>   2

                  C. As of the date of this First Amendment: (i) the Maximum
Scheduled Balance is Sixty-Two Million Four Hundred Thousand Dollars
($62,400,000.00), and (ii) the Lenders presently hold the respective Syndication
Interests in the proportions set forth below:

<TABLE>
<CAPTION>
                                                                                               PROPORTIONATE
                                                                                                SYNDICATION
                                                         MAXIMUM AMOUNT                      INTEREST IN CREDIT
                       NAME OF LENDER                     OF PRINCIPAL                            FACILITY
                       --------------                    --------------                      ------------------
<S>                                                      <C>                                 <C>
                Wells Fargo Bank, National
                Association                               $28,800,000.00                         46.1538462%

                Bank One, NA                              $14,400,000.00                         23.0769231%

                KeyBank National Association              $14,400,000.00                         23.0769231%

                West Coast Bank                           $ 4,800,000.00                          7.6923077%
                                                                                                -----------
                            TOTAL                         $62,400,000.00                        100.0%
</TABLE>

                  D. On or about January 7, 2000, BHGD, as buyer, and Gold Dust
Motel, Inc., a Nevada corporation ("GDMI") and John E. Cavanaugh, an individual
("Cavanaugh" and together with GDMI, collectively the "Sellers"), as sellers,
entered into an Asset Purchase Agreement dated January 7, 2000 as amended by
Addendum No. 1 to Asset Purchase Agreement dated January 7, 2000, by Amendment
No. 1 to Asset Purchase Agreement dated August 23, 2000 and by Amendment No. 2
to Asset Purchase Agreement dated December 15, 2000 (collectively, the "Purchase
Agreement") for the sale by Sellers and the purchase by BHGD of the Purchased
Assets, as defined therein, on the terms and subject to the considerations more
particularly therein described.

                  E. GDWCI is a wholly owned subsidiary of BHGD organized for
the purpose of owning and operating the Purchased Assets upon consummation of
the Gold Dust Acquisition.

                  F. Borrowers and Lenders desire to amend the Existing Credit
Agreement, subject to the terms and conditions set forth herein, for the
following purposes:

                           (i) Increasing the Aggregate Commitment and the
                  Maximum Scheduled Balance from Sixty-Two Million Four Hundred
                  Thousand Dollars ($62,400,000.00) to Seventy-Five Million
                  Dollars ($75,000,000.00), an increase of Twelve Million Six
                  Hundred Thousand Dollars ($12,600,000.00) (the "Commitment
                  Increase");

                                       2
<PAGE>   3

                           (ii) Revising the Aggregate Commitment Reduction
                  Schedule and the definition of the Applicable Margin;

                           (iii) Adding GDWCI as a Borrower and member of the
                  Borrower Consolidation;

                           (iv) Consenting to the acquisition of the Purchased
                  Assets by the Borrower Consolidation and the addition of the
                  Purchased Assets as Collateral;

                           (v) Extending the Maturity Date for a one (1) year
                  period;

                           (vi) Modifying certain Financial Covenants and
                  Definitions relating thereto as hereinafter provided; and

                           (vii) Consenting to a one time Distribution of Two
                  Million Dollars ($2,000,000.00) to the JE Membership
                  Interests.

                  G. The Lenders set forth below (collectively the "Increasing
Lenders") have agreed, subject to the terms, conditions, additional
modifications and provisions set forth in this First Amendment, to fund portions
of the Commitment Increase by increasing their respective Pro Rata Shares of the
Aggregate Commitment by the amounts set forth below:

<TABLE>
<CAPTION>
                                                                     PROPORTIONATE SHARES OF
                           NAME OF INCREASING LENDER                  COMMITMENT INCREASE
                           -------------------------                 -----------------------
<S>                                                                  <C>
                Wells Fargo Bank, National Association                    $ 1,200,000.00

                Bank One, N.A.                                            $   600,000.00

                KeyBank National Association                              $ 5,600,000.00

                West Coast Bank                                           $ 5,200,000.00
                                                                          --------------
                           TOTAL COMMITMENT INCREASE                      $12,600,000.00
</TABLE>

                  NOW, THEREFORE, in consideration of the foregoing and other
good and valuable considerations, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to the amendments and
modifications to the Existing Credit Agreement as specifically hereinafter
provided as follows:

                  1. Definitions. As of the First Amendment Effective Date,
Section 1.01 of the Existing Credit Agreement entitled "Definitions" shall be
and is hereby amended to include the following definitions. Those terms which
are currently defined by

                                       3
<PAGE>   4

Section 1.01 of the Existing Credit Agreement and which are also defined below
shall be superseded and restated by the applicable definition set forth below:

                  "Aggregate Commitment" shall mean reference to the aggregate
amount committed by Lenders for advance to or on behalf of Borrowers as
Borrowings under the Credit Facility in the initial principal amount of
Seventy-Five Million Dollars ($75,000,000.00), in each case as reduced on each
Reduction Date by the Scheduled Reductions to the Maximum Scheduled Balance, and
further subject to the additional reductions and/or limitations for advance as
set forth or incorporated in the definition of Maximum Permitted Balance.

                  "Aggregate Commitment Reduction Schedule" shall mean (i) the
Aggregate Commitment Reduction Schedule marked "Schedule 2.01(c)", affixed to
the First Amendment and by this reference incorporated herein and made a part
hereof, setting forth the Scheduled Reductions and Maximum Scheduled Balance as
of each Reduction Date under the Credit Facility, which revised Schedule 2.01(c)
shall fully supersede and restate Schedule 2.01(c) attached to the Existing
Credit Agreement.

                  "Applicable Margin" means for any Base Rate Loan or LIBOR Loan
during the period commencing on the First Amendment Effective Date and
continuing until the Maturity Date, the applicable percentage amount to be added
to the Base Rate or LIBO Rate, as the case may be, as set forth in TABLE TWO
below, in each instance based on the Leverage Ratio calculated with regard to
the Borrower Consolidation as of each Fiscal Quarter end, commencing with the
Fiscal Quarter ended September 30, 2000, any change in the applicable percentage
amount by reason thereof to be effective as of the 1st day of the third (3rd)
month immediately following each such Fiscal Quarter end:

<TABLE>
<CAPTION>
                                                       TABLE TWO                               TABLE THREE
                                     ---------------------------------------------             -----------
                                                                                               COMMITMENT
        LEVERAGE RATIO               BASE RATE MARGIN             LIBO RATE MARGIN             PERCENTAGE
        --------------               ----------------             ----------------             -----------
<S>                                  <C>                          <C>                          <C>
Greater than 2.50 to 1.0                   1.75%                        3.00%                     0.500%

Greater  than  2.00 to 1.0 but             1.25%                        2.50%                     0.500%
less  than or equal to 2.50 to
1.00

Greater  than  1.50 to 1.0 but             .75%                         2.00%                     0.375%
less  than or equal to 2.00 to
1.00

Less  than or equal to 1.50 to             .50%                         1.75%                     0.375%
1.00
</TABLE>

                  "Assignment of Piazzo Lease" shall mean the Assignment
executed by GDWCI on or before the First Amendment Effective Date as additional
security for the

                                       4
<PAGE>   5

Bank Facilities, pursuant to which GDWCI assigns to Agent Bank all of its right,
title and interest under the Piazzo Lease.

                  "Assignments" shall mean collective reference to the
Assignments of Spaceleases, Contracts, Rents and Revenues, Assignments of
Permits, Licenses and Contracts, Assignment of Parking Garage Lease and
Assignment of Piazzo Lease.

                  "Assignments of Permits, Licenses and Contracts" shall mean
collective reference to the Lodge Assignment of Permits, Licenses and Contracts,
Gilpin Assignment of Permits, Licenses and Contracts and Gold Dust Assignment of
Permits, Licenses and Contracts.

                  "Assignments of Spaceleases, Contracts, Rents and Revenues"
shall mean collective reference to the Lodge Assignment of Spaceleases,
Contracts, Rents and Revenues, Gilpin Assignment of Spaceleases, Contracts,
Rents and Revenues and Gold Dust Assignment of Spaceleases, Contracts, Rents and
Revenues.

                  "Borrower Consolidation" shall mean collective reference to
Borrowers and each Restricted Subsidiary on a consolidated basis, without regard
to any Unrestricted Subsidiary or other Affiliate.

                  "Borrowers" shall mean collective reference to BHJE, BHGD,
GVI, GHVP and GDWCI.

                  "Buyer's Conditions Precedent" shall have the meaning ascribed
to such term in the Purchase Agreement, without regard to any amendment or
modification thereof which is not first approved in writing by Requisite
Lenders.

                  "Cavanaugh" shall have the meaning ascribed to such term in
Recital Paragraph D of the First Amendment.

                  "Change in Control" shall mean the date on which any one or
more of the following statements are true:

                           a. the Jacobs Family Group owns less than twenty-five
percent (25%) of the total voting power of all classes of voting stock of BHGD;

                           b. the Jacobs Family Group owns less than twenty-five
percent (25%) of the membership interest in BHJE, save and except as a
consequence of the sale or transfer of such membership interests in exchange for
additional voting stock of BHGD;

                                       5
<PAGE>   6

                           c. BHGD, either directly or through wholly owned
subsidiaries, fails to own one hundred percent (100%) of the Gilpin Hotel/Casino
Facilities and of the Gold Dust Motel/Casino Facilities; or

                           d. BHGD, together with the Jacobs Family Group,
either directly or through wholly owned subsidiaries, partnership or limited
liability companies, fail to own one hundred percent (100%) of the Lodge
Hotel/Casino Facilities.

                  "Collateral" shall mean: (a) a collective reference to the
Lodge Collateral, the Gilpin Collateral and the Gold Dust Collateral; and (b)
any and all other property and/or intangible rights, interests or benefits
inuring to or in favor of Borrowers which are in any manner assigned, pledged,
encumbered or otherwise hypothecated in favor of Lenders or Agent Bank on behalf
of the Lenders to secure repayment of the Bank Facilities, but shall not include
the Gaming Permits.

                  "Collateral Properties" shall mean collective reference to the
real properties, improvements and associated FF&E which are pledged and
encumbered as Collateral securing repayment of the Bank Facilities from time to
time, which shall consist of the Lodge Real Property, the Gilpin Real Property,
the Parking Garage Leasehold and the Gold Dust Real Property, together with any
other real property or interests therein which may be held by Agent Bank from
time to time to secure repayment of the Bank Facilities.

                  "Colorado Closing Letter" shall mean the closing instruction
letter to be given by Agent Bank to the Colorado Title Insurance Company at or
prior to the First Amendment Effective Date setting forth the requirements of
the Banks for issuance of the Colorado Title Endorsements and other conditions
for the occurrence of the First Amendment Effective Date, as such letter may be
amended or modified prior to the First Amendment Effective Date to the
reasonable satisfaction of Agent Bank.

                  "Colorado Gaming Authorities" means collective reference to
the Division of Gaming of the Colorado Department of Revenue, the Colorado
Limited Gaming Control Commission and each other agency or other political
subdivision which has jurisdiction over the gaming activities of Borrower at the
Colorado Hotel/Casino Facilities.

                  "Colorado Gaming Laws" shall mean the Colorado Limited Gaming
Act and the regulations relating thereto and all other rules, regulations,
statutes and ordinances having authority or with which compliance is required
for the conduct of gambling, gaming and casino activities at the Colorado
Hotel/Casino Facilities.

                  "Colorado Title Endorsements" shall mean collective reference
to the following endorsements, which shall be issued to the Existing Colorado
Title Insurance Policy by the Colorado Title Insurance Company, as of the First
Amendment Effective

                                       6
<PAGE>   7

Date, in accordance with the Colorado Closing Letter: (i) 110.5 Endorsement
providing assurances, among other things, that the Existing Gilpin Deed of Trust
has been validly amended by the First Amendment to Gilpin Deed of Trust and the
Existing Lodge Deed of Trust has been validly amended by the First Amendment to
Lodge Deed of Trust; and (ii) such other endorsements as may be requested by
Agent Bank (including, without limitation, a tie-in endorsement with respect to
the Nevada Title Insurance Policy); all of which shall be in a form and
substance acceptable to Agent Bank.

                  "Colorado Title Insurance Company" shall mean First American
Title Insurance Company and its issuing agent, Clear Creek-Gilpin Abstract &
Title Corporation, with offices located at 619 Fifth Street, P.O. Box 545,
Georgetown, Colorado 80444, together with such reinsurers with direct access as
are requested by Agent Bank or other title insurance company or companies as may
be acceptable to Agent Bank.

                  "Colorado Title Insurance Policy" shall mean a collective
reference to the Existing Colorado Title Insurance Policy and the Colorado Title
Endorsements.

                  "Commitment Increase" shall have the meaning ascribed to such
term in Recital Paragraph F(i) of the First Amendment.

                  "Commitment Increase Fee" shall have the meaning set forth in
Paragraph 14(l) of the First Amendment.

                  "Commitment Increase Fee Side Letter" shall mean the Side
Letter of Understanding Regarding Commitment Increase Fee dated as of December
7, 2000, executed by and between Borrowers and Agent Bank concerning payment of
the Commitment Increase Fee more particularly described therein.

                  "Credit Agreement" shall mean the Existing Credit Agreement as
amended by the First Amendment, together with all Schedules, Exhibits and other
attachments thereto, as it may be further amended, modified, extended, renewed
or restated from time to time.

                  "Deeds of Trust" mean collective reference to the Gilpin Deed
of Trust, the Lodge Deed of Trust and the Gold Dust Deed of Trust.

                  "Environmental Certificate" shall mean the Amended and
Restated Certificate and Indemnification Regarding Hazardous Materials to be
executed by Borrowers on or before the First Amendment Effective Date, as a
further inducement to the Banks to amend the Existing Credit Agreement for the
purposes set forth herein, which shall completely amend and restate the
Certificate and Indemnification Regarding Hazardous Materials that was executed
by the Existing Borrowers concurrently, or

                                       7
<PAGE>   8

substantially concurrent, with the Existing Credit Agreement, all for the
purpose, among other things, of: (i) providing for GDWCI to join in execution
thereof and to become jointly and severally liable thereunder; and (ii) causing
the provisions thereof to apply to the Gold Dust Real Property; as such Amended
and Restated Certificate and Indemnification Regarding Hazardous Materials may
be amended, modified, extended, renewed or restated from time to time.

                  "Equipment Leases and Contracts" shall mean collective
reference to the Gilpin Equipment Leases and Contracts, the Lodge Equipment
Leases and Contracts and Gold Dust Equipment Leases and Contracts.

                  "Existing Borrowers" shall mean collective reference to BHJE,
BHGD, GVI and GHVP.

                  "Existing Colorado Title Insurance Policy" shall mean the ALTA
Extended Coverage Lender's Policy of Title Insurance which was issued by the
Colorado Title Insurance Company, under Policy No. CW2992110 and dated as of
April 23, 1999, together with the endorsements which were issued concurrently
therewith, with such policy and endorsements providing coverage in the aggregate
amount of Sixty-five Million Dollars ($65,000,000.00), insuring the Existing
Gilpin Deed of Trust as a first priority mortgage lien encumbering the Gilpin
Real Property and insuring the Existing Lodge Deed of Trust as a first priority
mortgage lien encumbering the Lodge Real Property; all subject only to the
exceptions referred to therein.

                  "Existing Credit Agreement" shall have the meaning set forth
in Recital Paragraph A of the First Amendment.

                  "Existing Gilpin Deed of Trust" shall mean the Deed of Trust,
Fixture Filing and Security Agreement with Assignment of Rents (Gilpin) which
was executed by BHGD, GVI and GHVP in favor of Agent Bank, on April 16, 1999 and
recorded in the Official Records of Gilpin County, Colorado on April 23, 1999,
in Book 668 at Page 42 as Document No. 100061, encumbering the Gilpin Real
Property, the Gilpin FF&E and the other Gilpin Collateral therein described, all
for the purpose, among other things, of securing the Existing Borrowers' payment
and performance under the Bank Facilities in accordance with the Existing Credit
Agreement.

                  "Existing Lodge Deed of Trust" shall mean the Deed of Trust,
Fixture Filing and Security Agreement with Assignment of Rents (Lodge) which was
executed by BHJE in favor of Agent Bank, on April 23, 1999 and recorded in the
Official Records of Gilpin County, Colorado on April 23, 1999 in Book 667 at
Page 452 as Document No. 100056, encumbering the Lodge Real Property, the Lodge
FF&E therein described and the other Lodge Collateral therein described, all for
the purpose, among other things, of securing

                                       8
<PAGE>   9

the Existing Borrowers' payment and performance under the Bank Facilities in
accordance with the Existing Credit Agreement.

                  "FF&E" shall mean reference to the Gilpin FF&E, the Lodge FF&E
and the Gold Dust FF&E and any other furniture, fixtures and equipment,
including, without limitation, all gaming devices and associated equipment,
inventories and supplies used in connection with the Hotel/Casino Facilities.

                  "Financing Statements" shall mean collective reference to the
Gilpin Financing Statements, Lodge Financing Statements and Gold Dust Financing
Statements.

                  "First Amendment" shall mean the First Amendment to Credit
Agreement dated as of December 21, 2000.

                  "First Amendment Effective Date" shall mean January 4, 2001,
subject to the occurrence of each of the Conditions Precedent set forth in
Paragraph 13 of the First Amendment.

                  "First Amendment to Gilpin Deed of Trust" shall mean that
certain First Amendment to Deed of Trust, Fixture Filing and Security Agreement
with Assignment of Rents and Notice of Additional Commitment (Gilpin) which is
to be executed by BHGD, GVI, GHVP and by Agent Bank, on or before the First
Amendment Effective Date, and is to be recorded in the Official Records of
Gilpin County, Colorado, concurrently, or substantially concurrent, with the
First Amendment Effective Date for the purpose of amending the Existing Gilpin
Deed of Trust in order to provide, among other things, for the Existing Gilpin
Deed of Trust to reflect Borrowers' entry into the First Amendment to Credit
Agreement and to confirm its security for payment and performance under the Bank
Facilities.

                  "First Amendment to Lodge Deed of Trust" shall mean that
certain First Amendment to Deed of Trust, Fixture Filing and Security Agreement
with Assignment of Rents and Notice of Additional Commitment (Lodge) which is to
be executed by BHJE and by Agent Bank, on or before the First Amendment
Effective Date, and is to be recorded in the Official Records of Gilpin County,
Colorado, concurrently, or substantially concurrent, with the First Amendment
Effective Date for the purpose of amending the Existing Lodge Deed of Trust in
order to provide, among other things, for the Existing Lodge Deed of Trust to
reflect Borrowers' entry into the First Amendment to Credit Agreement and to
confirm its security for payment and performance under the Bank Facilities.

                  "GDMI" shall have the meaning ascribed to such term in Recital
Paragraph D of the First Amendment.

                                       9
<PAGE>   10

                  "GDWCI Stock Pledge" shall have the meaning ascribed to such
term in Paragraph 7 of the First Amendment.

                  "Gaming Authorities" shall mean collective reference to the
Colorado Gaming Authorities and the Nevada Gaming Authorities.

                  "Gaming Devices" shall mean slot machines and other devices
which constitute gaming devices and related equipment as defined by the Gaming
Authorities and Gaming Laws.

                  "Gaming Laws" shall mean collective reference to the Colorado
Gaming Laws and the Nevada Gaming Laws.

                  "Gilpin Deed of Trust" shall mean collective reference to the
Existing Gilpin Deed of Trust, as amended by the First Amendment to Gilpin Deed
of Trust, and as it may be further amended, modified, extended, renewed or
restated from time to time.

                  "Gold Dust Acquisition" shall mean the acquisition of title
and ownership by GDWCI of the Purchased Assets in the accordance with the terms
of the Purchase Agreement.

                  "Gold Dust Assignment of Permits, Licenses and Contracts"
shall mean the assignment to be executed by GDWCI on or before the First
Amendment Effective Date, pursuant to which GDWCI assigns to Agent Bank on
behalf of the Lenders, as additional security for the Bank Facilities, all of
its right, title and interest in and to all assignable permits, licenses and
contracts relating to the Gold Dust Motel/Casino Facilities, except Gaming
Permits and those permits, licenses and contracts which are unassignable, as
such assignment may be amended, modified, extended, renewed or restated from
time to time.

                  "Gold Dust Assignment of Spaceleases, Contracts, Rents and
Revenues" shall mean the Assignment to be executed by GDWCI on or before the
First Amendment Effective Date, pursuant to which GDWCI assigns to Agent Bank on
behalf of the Lenders, as additional security for the Bank Facilities: (a) all
of its right, title and interest under all Gold Dust Equipment Leases and
Contracts and Gold Dust Spaceleases relating to the Gold Dust Motel/Casino
Facilities, and (b) all rents, issues, profits, revenues and income from the
Gold Dust Motel/Casino Facilities and any other business activity conducted at
the Gold Dust Motel/Casino Facilities, together with any future expansions
thereof, related thereto or used in connection therewith, as such assignment may
be amended, modified, extended, renewed or restated from time to time.

                                       10
<PAGE>   11

                  "Gold Dust Collateral" shall mean collective reference to: (i)
all of the Gold Dust Real Property, Gold Dust FF&E and the contract rights,
leases, intangibles and other interests of GDWCI, which are subject to the liens
and security interests of the Gold Dust Security Documents; (ii) all rights of
GDWCI assigned as additional security pursuant to the terms of the Gold Dust
Security Documents; and (iii) any and all other property and/or intangible
rights, interest or benefits inuring to or in favor of GDWCI, which are in any
manner assigned, pledged, encumbered or otherwise hypothecated in favor of Agent
Bank on behalf of Lenders to secure payment of the Bank Facilities.

                  "Gold Dust Deed of Trust" shall mean the Deed of Trust,
Fixture Filing and Security Agreement with Assignment of Rents to be executed,
as of the First Amendment Effective Date, by GDWCI, as trustor and debtor, to
the Nevada Title Insurance Company, as trustee, in favor of Agent Bank on behalf
of Lenders, as beneficiary, for the purposes of providing security for the Bank
Facilities encumbering the Gold Dust Collateral more particularly therein
described as a first mortgage lien, or in the case of the Piazzo Lease a first
leasehold mortgage lien, as the same may be amended, modified, supplemented,
replaced, renewed or restated from time to time.

                  "Gold Dust Equipment Leases and Contracts" shall mean the
executed leases and purchase contracts pertaining to the Gold Dust FF&E wherein
GDWCI is the lessee or vendee, as the case may be, as set forth on that certain
schedule marked "Schedule 4.16(c)", affixed to the First Amendment and by this
reference incorporated herein and made a part hereof.

                  "Gold Dust FF&E" shall mean the furniture, fixtures and
equipment and all gaming equipment and devices which have been installed or are
to be installed and used or owned by GDWCI in connection with the operation of
the Gold Dust Motel/Casino Facilities.

                  "Gold Dust Financing Statements" shall mean the Uniform
Commercial Code Financing Statements to be filed in the office of the Secretary
of State of the State of Nevada, and in the office of the County Recorder of
Washoe County, Nevada, in order to perfect the security interest granted to
Agent Bank on behalf of the Lenders under the Gold Dust Security Documents in
accordance with the requirements of the Nevada Uniform Commercial Code, as such
financing statements may be amended, modified, extended, renewed or restated
from time to time.

                  "Gold Dust Motel/Casino Facilities" shall mean collective
reference to the Gold Dust Real Property, the hotel and casino business and
related activities conducted by GDWCI in and on the Gold Dust Real Property and
all improvements now or hereafter situate thereon, together with any other real
property, personal property or interests therein which are used by GDWCI as a
part of the operation of the motel and casino business

                                       11
<PAGE>   12

conducted by GDWCI on the Gold Dust Real Property under the style and name of
Gold Dust Motel and Casino.

                  "Gold Dust Permitted Encumbrances" shall mean, at any
particular time, (i) Liens for taxes, assessments or governmental charges not
then due and payable or not then delinquent, (ii) statutory liens for labor
and/or materials and liens for taxes, assessments or governmental charges the
validity of which, in either instance, are being contested in good faith by
Borrowers by appropriate proceedings, and as provided in Sections 5.04 and 5.10
of the Credit Agreement, respectively, provided that, Borrowers shall have
maintained adequate reserves in accordance with GAAP for payment of same, (iii)
Liens incurred or deposits made in the ordinary course of business in connection
with workers' compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, surety
and appeal bonds, bids, leases, government contracts, trade contracts,
performance and return-of-money bonds and other similar obligations (exclusive
of obligations for the payment of borrowed money); (iv) leases or subleases
granted to others (including, without limitation, any Subsidiary) not
interfering in any material respect with the ordinary conduct of the business of
the Gold Dust Motel/Casino Facilities; (v) Liens created or contemplated by the
Gold Dust Security Documents, (vi) the liens, encumbrances and restrictions on
the Gold Dust Real Property, Gold Dust FF&E and existing improvements which are
shown as exceptions on Schedule B of the Nevada Title Insurance Policy to be
issued by Nevada Title Insurance Company as of the First Amendment Effective
Date, (vii) Liens consented to in writing by Agent Bank upon the approval of
Requisite Lenders, (viii) Liens of legally valid capital leases and purchase
money security interests for Gold Dust FF&E to the extent permitted by Section
6.08(d) of the Credit Agreement, (ix) each and every easement, license,
restriction or right-of-way that (A) is hereafter granted to any Governmental
Authority or public utility providing services to the Gold Dust Real Property or
(B) does not interfere in any material respect with the Gold Dust Motel/Casino
Facilities; and (x) judgment liens, writs, warrants, levies, distraints,
attachments and other similar process which do not constitute an Event of
Default.

                  "Gold Dust Real Property" shall mean the real property to be
owned by GDWCI on and after the consummation of the Gold Dust Acquisition, save
and except for the Piazzo Property which shall be leased by GDWCI pursuant to
the Piazzo Lease, all of which real property is described on that certain
exhibit marked "Exhibit S", affixed hereto and by this reference incorporated
herein and made a part hereof.

                  "Gold Dust Security Documents" shall mean collective reference
to the Gold Dust Deed of Trust, Gold Dust Financing Statements, Gold Dust
Assignment of Permits, Licenses and Contracts, Gold Dust Assignment of
Spaceleases, Contracts, Rents and Revenues, Assignment of Piazzo Lease and all
other documents, instruments or agreements encumbering or assigning assets
related to the Gold Dust Motel/Casino

                                       12
<PAGE>   13

Facilities which are executed or delivered by or on behalf of GDWCI, and
accepted by Agent Bank, on behalf of Lenders, as security for payment of the
Bank Facilities.

                  "Gold Dust Spaceleases" shall mean the executed leases and
concession agreements pertaining to the Gold Dust Motel/Casino Facilities, or
any portion thereof, wherein GDWCI is the lessor as set forth on the certain
schedule marked "Schedule 4.15(c)", affixed hereto and by this reference
incorporated herein and made a part hereof.

                  "Hotel/Casino Facilities" shall mean collective reference to
the Lodge Hotel/Casino Facilities, the Gilpin Hotel/Casino Facilities and the
Gold Dust Motel/Casino Facilities.

                  "Increasing Lender(s)" shall have the meaning ascribed to such
term in Recital Paragraph E of the First Amendment.

                  "Lodge Deed of Trust" shall mean collective reference to the
Existing Lodge Deed of Trust as amended by the First Amendment to Lodge Deed of
Trust and as it may be further amended, modified, extended, renewed or restated
from time to time.

                  "Maturity Date" shall mean April 16, 2004.

                  "Maximum Scheduled Balance" shall mean the maximum amount of
scheduled principal which may be outstanding on the Credit Facility from time to
time in the amount of Seventy-Five Million Dollars ($75,000,000.00) as of the
First Amendment Effective Date, as reduced from time to time by the Scheduled
Reductions as set forth on the Aggregate Commitment Reduction Schedule.

                  "Nevada Closing Letter" shall mean the closing instruction
letter to be given by Agent Bank to the Nevada Title Insurance Company at or
prior to the First Amendment Effective Date setting forth the requirements of
the Banks for issuance of the Nevada Title Insurance Policy and other conditions
for the occurrence of the First Amendment Effective Date, as such letter may be
amended or modified prior to the First Amendment Effective Date to the
reasonable satisfaction of Agent Bank.

                  "Nevada Gaming Authorities" shall mean a collective reference
to the Nevada Gaming Commission, the State Gaming Control Board or any agency of
any state, county, city or other political subdivision which has jurisdiction
over the gaming activities of Borrowers at the Gold Dust Motel/Casino Facility.

                  "Nevada Title Insurance Company" shall mean First American
Title Insurance Company and its issuing agent, First American Title Company of
Nevada,

                                       13
<PAGE>   14

with offices located at 5310 Kietzke Lane, Suite 100, Reno, Nevada 89511,
together with such reinsurers with direct access as are requested by Agent Bank
or other title insurance company or companies as may be acceptable to Agent
Bank.

                  "Nevada Title Insurance Policy" shall mean the ALTA Extended
Coverage Lender's Policy of Title Insurance, and the endorsements thereto
(including, without limitation, a tie-in endorsement with respect to the
Colorado Title Insurance Policy), which is to be issued by the Nevada Title
Insurance Company, as of the First Amendment Effective Date, in the amount of
Thirteen Million Nine Hundred Thousand Dollars ($13,900,000.00) in favor of
Agent Bank, insuring the Gold Dust Deed of Trust as first priority mortgage
liens encumbering the Gold Dust Real Property therein described subject only to
the exceptions shown therein in Schedule B, Part I, all in accordance with the
Nevada Closing Letter.

                  "Piazzo Lease" shall mean that certain Lease Agreement dated
November 24, 1975 wherein: (i) Chester J. Piazzo, Darlene Piazzo, Lincoln E.
Piazzo and Helen J. Piazzo are the lessors and John E. Cavanaugh and Barbara A.
Cavanaugh are the lessees of the Piazzo Property; and (ii) the Piazzo Option is
granted to the lessees thereunder; record notice of which Lease Agreement is
given pursuant to a Memorandum of Lease recorded in the Official Records of
Washoe County, Nevada on November 25, 1975 in Book 932 at Page 820 as Document
No. 386577, as such Lease Agreement is amended by an Addendum to Lease recorded
in the Official Records of Washoe County, Nevada on July 26, 1977 in Book 1108
at Page 339 as Document No. 478005, a Supplement to Lease recorded in the
Official Records of Washoe County, Nevada on July 26, 1977 in Book 1108 at Page
351 as Document No. 478006, an Amendment to Lease recorded in the Official
Records of Washoe County, Nevada on July 26, 1977 in Book 1108 at Page 355 as
Document No. 478007, a document entitled "Agreement" recorded in the Official
Records of Washoe County, Nevada on July 26, 1977 in Book 1108 at Page 358 as
Document No. 478008; with (x) all interest of Lincoln E. Piazzo and Helen J.
Piazzo in the Piazzo Property having been conveyed to Chester J. Piazzo and
Darlene Piazzo pursuant to that certain Deed of Conveyance recorded in the
Official Records of Washoe County, Nevada on September 26, 1984 in Book 2071 at
Page 558 as Document No. 952043; (y) all interest of Barbara A. Cavanaugh under
the Piazzo Lease having been assigned to Cavanaugh pursuant to an Assignment of
Lease recorded in the Official Records of Washoe County, Nevada on November 8,
1991 in Book 3360 at Page 364 as Document No. 1522682 and Cavanaugh having
assigned all of his right and interest thereunder to GDWCI concurrently or
substantially concurrent with the First Amendment Effective Date; and (z) all
interest of Chester J. Piazzo and Darlene Piazzo in the Piazzo Property having
been conveyed to the Piazzo Trust pursuant to that certain Grant Deed recorded
in the Official Records of Washoe County, Nevada on February 12, 1992 in Book
3417 at Page 325 as Document No. 1545623.

                                       14
<PAGE>   15

                  "Piazzo Lease Estoppel Certificate" shall mean an Estoppel
Certificate duly executed by the Piazzo Trust, as lessor and GDWCI as lessee
under the Piazzo Lease, wherein they each certify and represent to Agent Bank,
among other things, that: (a) the Piazzo Lease represents the entire agreement
between the parties thereto with respect to the property which is subject to the
Piazzo Lease and supersedes all other previous documents and agreements between
them, (b) that the Piazzo Lease has not been modified, supplemented or amended
except as described herein, (c) there are no defaults presently existing or
continuing under any of the provisions of the Piazzo Lease, and (d) other
provisions regarding notice to Agent Bank in the event of default thereunder.

                  "Piazzo Option" shall mean an option to purchase the Piazzo
Property which is granted to the lessees under the Piazzo Lease subject to the
terms and conditions set forth therein.

                  "Piazzo Property" shall mean that real property which is
particularly described as Parcel 1 on Exhibit S attached hereto and incorporated
by reference herein.

                  "Piazzo Trust" shall mean Chester J. Piazzo and Darlene Piazzo
as Co-Trustees of the C.&D. Piazzo Family Trust created by Trust Agreement dated
January 8, 1992 and their successors in interest as owners of the Piazzo
Property.

                  "Purchase Agreement" shall have the meaning ascribed to such
term in Recital Paragraph D of the First Amendment.

                  "Purchased Assets" shall mean a collective reference to all of
the assets which are to be purchased by GDWCI under the Purchase Agreement,
including, without limitation: (i) the "Purchased Assets" which are defined by
Section 1.43 of the Purchase Agreement; and (ii) all other assets which are to
be transferred to GDWCI pursuant to execution and delivery of the documents
which GDMI and Cavanaugh are required to deliver under Section 8 of the Purchase
Agreement.

                  "Revolving Credit Note" shall mean the Revolving Credit Note
(First Restated), a copy of which is marked "Exhibit A", affixed to the First
Amendment and by this reference incorporated herein and made a part hereof,
executed by Borrower on or before the First Amendment Effective Date, payable to
the order of Agent Bank on behalf of the Lenders, evidencing the Credit
Facility, as the same may be amended, modified, supplemented, replaced, renewed
or restated from time to time, which restated Exhibit A shall fully restate and
supersede Exhibit A attached to the Existing Credit Agreement.

                                       15
<PAGE>   16

                  "Schedule of Lenders' Proportions in Credit Facility" shall
mean the Schedule of Lenders' Proportions in Credit Facility as of January 4,
2001, a copy of which is set forth as Schedule 2.01(a), affixed to the First
Amendment and by this reference incorporated herein and made a part hereof,
setting forth the respective Syndication Interest and maximum amount to be
funded under the Credit Facility by each Lender, as the same may be amended or
restated from time to time in connection with an Assignment and Assumption
Agreement, which revised Schedule 2.01(a) shall fully restate and supersede
Schedule 2.01(a) attached to the Existing Credit Agreement and all previous
amendments and restatements thereof.

                  "Security Documentation" shall mean a collective reference to
the Gilpin Security Documents, the Lodge Security Documents, Gold Dust Security
Documents and Stock Pledges, Subsidiary Guaranties, the Trademark Security
Agreement and all other instruments and agreements to be executed by or on
behalf of members of the Borrower Consolidation or other applicable Persons, in
favor of Agent Bank on behalf of the Lenders securing repayment of the Bank
Facilities.

                  "Sellers" shall have the meaning ascribed to such term in
Recital Paragraph D of the First Amendment.

                  "Stock Pledges" shall mean collective reference to the GDWCI
Stock Pledge and any other stock pledges given with reference to a Restricted
Subsidiary, from time to time, subsequent to the First Amendment Effective Date.

                  "Trademark Security Agreement" shall mean the Amended and
Restated Trademark Security Agreement to be executed by Borrowers and Agent Bank
of the First Amendment Effective Date for the purpose, among other things, of
amended and restating the Trademark Security Agreement which was executed and
delivered by Existing Borrowers pursuant to the Existing Credit Agreement to
provide, among other things: (i) for GDWCI to join in execution thereof; and
(ii) to encumber all service marks, trademarks and similar collateral in which
GDWCI holds an interest, all as more particularly set forth therein.

                  2. Commitment Increase. From and after the First Amendment
Effective Date, each Increasing Lender shall and does hereby assume and agree to
perform all of the promises and covenants of a Lender as to its respective Pro
Rata Share of the Commitment Increase in the amounts and proportions set forth
in Recital Paragraph G.

                  3. Adjustment of Syndication Interests. On the First Amendment
Effective Date, the respective aggregate Syndication Interests of the Lenders in
the Credit Facility shall be as set forth on the Schedule of Lenders'
Proportions in Credit

                                       16
<PAGE>   17

Facility as of January 4, 2001, a copy of which is marked "Schedule 2.01(a)"
affixed to the First Amendment and by this reference incorporated herein and
made a part hereof, which shall restate the Schedule of Lenders' Proportions in
Credit Facility attached as Schedule 2.01(a) to the Existing Credit Agreement,
and all previous amendments and restatements thereof, for the purpose of showing
the Maximum Scheduled Balance, as increased by the Commitment Increase, the
adjustment of the respective Syndication Interests held by each of the Lenders
and evidencing each Lender's applicable Syndication Interest in the Credit
Facility on and after the First Amendment Effective Date.

                  4. Modification of Aggregate Commitment, Maximum Scheduled
Balance, Aggregate Commitment Reduction Schedule and Extension of Maturity Date.
As of the First Amendment Effective Date, the definitions of "Aggregate
Commitment", "Maximum Scheduled Balance", "Aggregate Commitment Reduction
Schedule" and "Maturity Date" shall be and are hereby modified as set forth in
the definitions of Aggregate Commitment, Maximum Scheduled Balance, Aggregate
Commitment Reduction Schedule and Maturity Date contained in the First
Amendment.

                  5. Consent to Creation of GDWCI as an Additional Subsidiary.
Banks do hereby consent to the organization and creation of GDWCI as a wholly
owned subsidiary of BHGD and member of the Borrower Consolidation.

                  6. Assumption by GDWCI. GDWCI joins in the execution of this
First Amendment to Credit Agreement for the purpose of evidencing its agreement
to and effective as of the date hereof, does hereby, jointly and severally with
the other members of the Borrower Consolidation, assume all duties, obligations
and liabilities of Borrowers under the Credit Agreement, the Notes and each of
the other Loan Documents as a Borrower and member of the Borrower Consolidation
and agrees to jointly and severally perform all of the promises, covenants and
other obligations of Borrowers thereunder arising or performable from and after
the date hereof.

                  7. GDWCI Stock Pledge. As of the First Amendment Effective
Date, and subject to the prior approval of the Nevada Gaming Authorities, BHGD
shall execute and deliver to and for the benefit of Agent Bank on behalf of
Lenders (collectively, the "GDWCI Stock Pledge"): (a) the original stock
certificate evidencing all of the issued and outstanding capital stock of GDWCI,
(b) Irrevocable Stock Power executed in blank with respect to such capital
stock, and (c) Security Agreement and Pledge of Stock for the purpose of
pledging to and granting a security interest in favor of Agent Bank in and to
all of the issued and outstanding capital stock of GDWCI.

                                       17
<PAGE>   18

                  8. Acquisition of Purchased Assets and Additional Collateral.
As of the First Amendment Effective Date:

                           a. Agent Bank shall have received a true and correct
copy of the Purchase Agreement, together with all amendments and modifications
thereto;

                           b. Agent Bank shall have received written evidence to
its reasonable satisfaction that as of the First Amendment Effective Date each
of the "Buyer's Conditions Precedent" shall have been fully satisfied and a copy
of all certificates, documents, deeds, assignments, bills of sale and other
instruments relating to the transfer, assignment and conveyance of the Purchased
Assets to GDWCI pursuant to the Purchase Agreement shall have been delivered to
Agent Bank, and

                           c. the Purchased Assets shall be added as additional
Collateral by execution and delivery by Borrowers of the Gold Dust Security
Documents as set forth in Paragraph 14(f) of the First Amendment.

                  9. Addition of Subsection 5.22(c) - Performance under the
Piazzo Lease. As of the First Amendment Effective Date, Section 5.22(c) shall be
and is hereby added to the Existing Credit Agreement as follows:

                           "c. Until Bank Facility Termination GDWCI, as lessee,
         shall fully perform and comply with or cause to be performed and
         complied with all of the covenants, terms and conditions imposed or
         assumed by it under the Piazzo Lease."

                  10. Restatement of Leverage Ratio Covenant. As of the First
Amendment Effective Date, Section 6.01 of the Existing Credit Agreement entitled
"Leverage Ratio" shall be and is hereby fully amended and restated in its
entirety as follows:

                           "Section 6.01. Leverage Ratio. Commencing as of the
                  first Fiscal Quarter end occurring subsequent to the First
                  Amendment Effective Date and continuing as of each Fiscal
                  Quarter end until Bank Facilities Termination, the Borrower
                  Consolidation shall maintain a Leverage Ratio no greater than
                  the ratios described hereinbelow to be calculated as of the
                  end of each Fiscal Quarter in accordance with the following
                  schedule:

<TABLE>
<CAPTION>
                                 FISCAL QUARTER END                              MAXIMUM LEVERAGE RATIO
                                 ------------------                              ----------------------
<S>                                                                              <C>
                 As of the Fiscal Quarter ending March 31, 2001                       3.00 to 1.00

                 As of the Fiscal Quarter ending June 30, 2001 and as of each
                 Fiscal Quarter end through the Fiscal Quarter ending September
                 30, 2002                                                             2.75 to 1.00

                 As of the Fiscal Quarter ending December 31, 2002, and as of
                 each Fiscal Quarter end through Bank Facilities Termination          2.50 to 1.00"
</TABLE>

                                       18
<PAGE>   19

                  11. Restatement of Capital Expenditures Covenant. As of the
First Amendment Effective Date, Section 6.04 of the Existing Credit Agreement
entitled "Limitation on Capital Expenditures", shall be and is hereby fully
amended and restated in its entirety as follows:

                           "Section 6.04. Capital Expenditures. During each
                  Fiscal Year, commencing with the Fiscal Year beginning January
                  1, 2001:

                                    a. The Borrower Consolidation shall make or
                  cause to be made, Capital Expenditures to the Collateral
                  Properties in a minimum aggregate amount no less than three
                  percent (3%) of net revenues derived from the Collateral
                  Properties during the immediately preceding Fiscal Year; and

                                    b. The Borrower Consolidation shall not make
                  or cause to be made, Capital Expenditures to the Collateral
                  Properties greater than: (i) an aggregate amount equal to six
                  percent (6%) of gross revenues derived from the Collateral
                  Properties by the Borrower Consolidation during the
                  immediately preceding Fiscal Year, plus (ii) the amount then
                  available for expenditure under the Net Equity Proceeds
                  Expenditure Basket."

                  12. Restatement of Subsection 6.08(a). As of the First
Amendment Effective Date, Section 6.08(a) of the Existing Credit Agreement shall
be and is hereby fully amended and restated in its entirety as follows:

                           "a. Secured Interest Rate Hedges up to the maximum
                  aggregate notional principal amount of Sixty Million Dollars
                  ($60,000,000.00) at any time outstanding;"

                                       19
<PAGE>   20

                  13. Consent to One-Time Distribution to JE Membership
Interests. Notwithstanding anything contained in Section 6.09 of the Existing
Credit Agreement to the contrary, and in addition to the Distributions otherwise
permitted under Section 6.09, on the First Amendment Effective Date, Lenders
shall and do hereby agree that the Borrower Consolidation may make a
Distribution to the JE Membership Interests on a one-time basis only up to the
aggregate maximum amount of Two Million Dollars ($2,000,000.00) subject to
compliance with each of the following conditions:

                           a. That no Default or Event of Default has occurred
and remains continuing;

                           b. That such Distribution is made prior to March 31,
2001;

                           c. That the Distribution to Diversified shall not
exceed Eighty Thousand Dollars ($80,000.00) in the aggregate; and

                           d. That the Distribution to Entertainment shall not
exceed One Million Nine Hundred Twenty Thousand Dollars ($1,920,000.00) in the
aggregate.

                  14. Conditions Precedent to First Amendment Effective Date.
The occurrence of the First Amendment Effective Date is subject to Agent Bank
having received the following documents and payments, in each case in a form and
substance reasonably satisfactory to Agent Bank, and the occurrence of each
other condition precedent set forth below on or before January 4, 2001:

                           a. Due execution by Borrowers and Banks of six (6)
duplicate originals of this First Amendment;

                           b. Due execution by Borrowers of the original
Revolving Credit Note (First Restated);

                           c. Organizational and corporate documentation of
Borrowers, consisting of:

                                    (i) a Certificate of Good Standing for GDWCI
                  issued by the Secretary of State of the State of Nevada and
                  dated within thirty (30) calendar days of the First Amendment
                  Effective Date;

                                    (ii) a copy of the articles of incorporation
                  and by-laws of GDWCI certified as of the First Amendment
                  Effective Date to be true, correct and complete by a duly
                  Authorized Officer of the Borrowers;

                                       20
<PAGE>   21

                                    (iii) an original Certificate of Corporate
                  Resolution for each of the Borrowers authorizing each
                  respective Borrower to enter into all documents and agreements
                  to be executed by it pursuant to this First Amendment and
                  further authorizing and empowering the officer or officers who
                  will execute such documents and agreements with the authority
                  and power to execute such documents and agreements on behalf
                  of each respective corporation; and

                                    (iv) a revised Authorized Representatives
                  Certificate providing for the joinder of GDWCI;

                           d. True and correct copy of the Purchase Agreement,
together with written evidence reasonably acceptable to Agent Bank of the
satisfaction of each of the Buyer's Conditions Precedent and all other
documentation relating to the Gold Dust Acquisition as described in Paragraph 8
of the First Amendment;

                           e. The Nevada Gaming Authorities shall have approved
the GDWCI Stock Pledge and Agent Bank shall have received each of the documents
and instruments as described in Paragraph 7 of the First Amendment;

                           f. Each of the Gold Dust Security Documents and
related Loan Documents, consisting of:

                                    (i) Gold Dust Deed of Trust;

                                    (ii) Gold Dust Financing Statements;

                                    (iii) Gold Dust Assignment of Spaceleases,
                  Contracts, Rents and Revenues;

                                    (iv) Gold Dust Assignment of Permits,
                  Licenses and Contracts;

                                    (v) Assignment of Piazzo Lease; and

                                    (vi) Piazzo Lease Estoppel Certificate.

                           g. First Amendment to Lodge Deed of Trust and First
Amendment to Gilpin Deed of Trust;

                                       21
<PAGE>   22

                           h. Additional Security Documentation consisting of:

                                    (i) Environmental Certificate;

                                    (ii) Trademark Security Agreement; and

                                    (iii) the GDWCI Stock Pledge, together with
                  the original stock certificate and Irrevocable Stock Power as
                  required under Paragraph 7 of the First Amendment.

                           i. Borrower shall have executed and delivered to
Agent Bank any further amendments to the Security Documentation reasonably
requested by Agent Bank for the purpose of securing repayment of the Commitment
Increase and the Bank Facilities and shall pay the costs of the Nevada Title
Insurance Policy and a 110.5 endorsement or other applicable endorsement to the
Colorado Title Insurance Policy evidencing its continued application to the Bank
Facilities, as increased by the Commitment Increase, and to the Security
Documentation;

                           j. Each Lender realizing a decrease in its respective
Syndication Interest has received from Agent Bank such amount as is necessary to
adjust such Lender's Pro Rata Share of the Funded Outstandings as of the First
Amendment Effective Date equal to such Lender's Syndication Interest as set
forth on the Schedule of Lenders' Proportions in Credit Facility as of January
4, 2001, attached hereto;

                           k. Each Increasing Lender realizing an increase in
its respective Syndication Interest has delivered to Agent Bank an amount
representing its Pro Rata Share of the Funded Outstandings as of the First
Amendment Effective Date, less such Increasing Lender's Pro Rata Share of the
Funded Outstandings immediately prior to the First Amendment Effective Date, for
distribution to the Lenders in such amounts as are necessary to adjust each such
Lenders' Pro Rata Share of the Funded Outstandings as of the First Amendment
Effective Date to a percentage equal to the Syndication Interests set forth on
the Schedule of Lenders' Proportions in Credit Facility as of January 4, 2001,
attached hereto. Interest accrued but remaining unpaid on the outstanding
principal balance under the Credit Facility shall be prorated to the First
Amendment Effective Date and disbursed by Agent Bank to Lenders from the next
payment of accrued interest under the Revolving Credit Note in accordance with
their respective Pro Rata Shares;

                           l. Payment to Agent Bank of a non-refundable fee (the
"Commitment Increase Fee") in the amount set forth in the Commitment Increase
Fee Side Letter to be retained by Agent Bank or distributed to the Increasing
Lenders as agreed between Agent Bank and Increasing Lenders;

                           m. Borrowers shall have caused their attorneys to
deliver a legal opinion in substantially the form of the Legal Opinion attached
as Exhibit Y to the Existing

                                       22
<PAGE>   23

Credit Agreement (inclusive of the Gold Dust Security Documents and GDWCI Stock
Pledge) and in all other respects reasonably satisfactory to Agent Bank;

                           n. Borrowers shall provide Agent Bank with insurance
certificates and endorsements substantially consistent with Section 5.09 of the
Existing Credit Agreement evidencing insurance coverage for the Gold Dust
Collateral and Gold Dust Motel/Casino Facilities, together with such additional
coverages and endorsements as may be reasonably required by Agent Bank;

                           o. A Notice of Closing Disbursement, substantially in
the form of a Notice of Borrowing, setting forth funding instructions to Agent
Bank and Lenders as of the First Amendment Effective Date;

                           p. Reimbursement to Agent Bank by Borrower for all
reasonable fees and out-of-pocket expenses incurred by Agent Bank in connection
with the Commitment Increase, First Amendment and addition of the Gold Dust
Collateral, including, but not limited to, reasonable attorneys' fees of
Henderson & Morgan, LLC and all other like expenses remaining unpaid as of the
First Amendment Effective Date; and

                           q. Such other documents, instruments or conditions as
may be reasonably required by Agent Bank.

                  15. Representations of Borrowers. Borrowers hereby represent
to the Banks, which representations shall survive the First Amendment Effective
Date and be deemed incorporated into Article IV of the Credit Agreement, that:

                           a. As of the First Amendment Effective Date and at
all times during the term of the Bank Facilities:

                                    (i) GDWCI shall have good and marketable
                  title to the Gold Dust Real Property (other than the Piazzo
                  Lease);

                                    (ii) BHGD shall be the owner and holder of
                  all outstanding shares of the common voting stock of GDWCI;
                  and

                                    (iii) GDWCI shall have a leasehold interest
                  pursuant to the Piazzo Lease or fee title to the Piazzo
                  Property.

                           b. A schedule of all executed Gold Dust Spaceleases
pertaining to the Gold Dust Motel/Casino Facilities or any portion thereof, in
existence as of the First Amendment Effective Date hereof, are set forth on
Schedule 4.15(c) attached to the First Amendment;

                                       23
<PAGE>   24

                           c. A schedule of all executed Gold Dust Equipment
Leases and Contracts pertaining to the Gold Dust Motel/Casino Facilities or any
portion thereof, in existence on the date hereof, is set forth on Schedule
4.16(c) attached to the First Amendment;

                           d. Each of the patents, trademarks, service marks,
trade names and copyrights owned by Borrowers which is registered with any
Governmental Authority is set forth on Schedule 4.27, attached to the First
Amendment;

                           e. The copy of the Piazzo Lease and all modifications
and amendments thereof (if any) which have been delivered to Agent Bank:

                                    (i) constitute a true, correct and complete
                  copy of the respective original thereof, as in effect on the
                  First Amendment Effective Date, and no amendments or
                  modifications have been made to such Piazzo Lease, except as
                  set forth by documents delivered to Agent Bank; and

                                    (ii) the Piazzo Lease has not been
                  terminated and is in full force and effect;

                           f. All Gaming Permits required to be held by
Borrowers are current and in good standing and GDWCI presently holds all Gaming
Permits necessary for the ownership and operation of the Gold Dust Motel/Casino
Facilities;

                           g. the representations and warranties contained in
Article IV of the Existing Credit Agreement and contained in each of the other
Loan Documents (other than representations and warranties which expressly speak
only as of a different date, which shall be true and correct in all material
respects as of such date) are true and correct on and as of the First Amendment
Effective Date in all material respects as though such representations and
warranties had been made on and as of the First Amendment Effective Date, except
to the extent that such representations and warranties are not true and correct
as a result of a change which is permitted by the Credit Agreement or by any
other Loan Document or which has been otherwise consented to by Agent Bank or,
where applicable, the Requisite Lenders;

                           h. Since the date of the most recent financial
statements referred to in Section 5.08 of the Existing Credit Agreement, no
Material Adverse Change has occurred and no event or circumstance which could
reasonably be expected to result in a Material Adverse Change or Material
Adverse Effect has occurred;

                                       24
<PAGE>   25

                           i. no event has occurred and is continuing which
constitutes a Default or Event of Default under the terms of the Credit
Agreement; and

                           j. The execution, delivery and performance of this
First Amendment, the Revolving Credit Note and each of the related documents has
been duly authorized by all necessary action of Borrowers and this First
Amendment, the Revolving Credit Note and each of the related documents
constitute valid, binding and enforceable obligation of Borrowers.

                  16. Incorporation by Reference. This First Amendment shall be
and is hereby incorporated in and forms a part of the Existing Credit Agreement.

                  17. Governing Law. This First Amendment to Credit Agreement
shall be governed by the internal laws of the State of Nevada without reference
to conflicts of laws principles.

                  18. Counterparts. This First Amendment may be executed in any
number of separate counterparts with the same effect as if the signatures hereto
and hereby were upon the same instrument. All such counterparts shall together
constitute one and the same document.

                  19. Continuance of Terms and Provisions. All of the terms and
provisions of the Credit Agreement shall remain unchanged except as specifically
modified herein.

                  20. Additional/Replacement Schedules and Exhibits Attached.
The following additional and replacement Schedules and Exhibits are attached
hereto and incorporated herein and made a part of the Credit Agreement as
follows:

                           Schedule 2.01(a) - Schedule of Lenders' Proportions
                                              in Credit Facility as of First
                                              Amendment Effective Date

                           Schedule 2.01(c) - Aggregate Commitment Reduction
                                              Schedule

                           Schedule 4.15(c) - Schedule of Gold Dust Spaceleases

                           Schedule 4.16(c) - Schedule of Gold Dust Equipment
                                              Leases and Contracts

                           Exhibit A -        Revolving Credit Note (First
                                              Restated) - Form

                           Exhibit F -        Compliance Certificate - Form

                           Exhibit H -        Authorized Representatives
                                              Certificate (Restated) - Form

                           Exhibit S -        Gold Dust Real Property -
                                              Description

                                       25
<PAGE>   26

                  IN WITNESS WHEREOF, the parties hereto have caused this First
Amendment to Credit Agreement to be executed as of the day and year first above
written.

                                       BORROWERS:

                                       BLACK HAWK/JACOBS ENTERTAINMENT, LLC, a
                                       Colorado limited liability company

                                       By: BH ENTERTAINMENT LTD., an Ohio
                                           limited liability company, its
                                           Co-Manager

                                           By: JACOBS ENTERTAINMENT LTD., an
                                               Ohio limited liability company,
                                               its Manager

                                               By
                                                 -------------------------------
                                                 Jeffrey P. Jacobs,
                                                 President

                                       By: BLACK HAWK GAMING & DEVELOPMENT
                                           COMPANY, INC., a Colorado
                                           corporation, its Co-Manager

                                           By
                                             -----------------------------------
                                             Stephen R. Roark,
                                             President

                                       BLACK HAWK GAMING & DEVELOPMENT COMPANY,
                                       INC., a Colorado corporation, its
                                       Co-Manager

                                       By
                                         ---------------------------------------
                                         Stephen R. Roark,
                                         President

                                       26
<PAGE>   27

                                       GILPIN VENTURES, INC.,
                                       a Colorado corporation

                                       By
                                         ---------------------------------------
                                         Stephen R. Roark,
                                         President

                                       GILPIN HOTEL VENTURE,
                                       a Colorado joint venture partnership

                                       By: BLACK HAWK GAMING & DEVELOPMENT
                                           COMPANY, INC., a Colorado
                                           corporation, joint venture partner

                                           By
                                             -----------------------------------
                                             Stephen R. Roark,
                                             President

                                       By: GILPIN VENTURES, INC., a Colorado
                                           corporation, joint venture partner

                                           By
                                             -----------------------------------
                                             Stephen R. Roark,
                                             President

                                       GOLD DUST WEST CASINO, INC.,
                                       a Nevada corporation

                                       By
                                         ---------------------------------------
                                         Stephen R. Roark,
                                         Secretary

                                       27
<PAGE>   28

                                       Address for Borrowers:

                                       240 Main Street
                                       P.O. Box 21
                                       Black Hawk, CO 80422
                                       Attn: Stephen R. Roark

                                       Telephone: (303) 582-1117
                                       Facsimile: (303) 582-0239

                                       with a copy to:

                                       Jeffrey P. Jacobs
                                       c/o Jacobs Investments, Inc.
                                       425 Lakeside Avenue
                                       Cleveland, Ohio 44114

                                       Telephone: (216) 861-4080
                                       Facsimile: (216) 861-6315

                                       28
<PAGE>   29

                                       BANKS:

                                       WELLS FARGO BANK,
                                       National Association,
                                       Agent Bank, Lender,
                                       Swingline Lender and
                                       L/C Issuer

                                       By
                                         --------------------------

                                       Name
                                           ------------------------

                                       Title
                                            -----------------------

                                       Address:

                                       Credit Matters

                                       Wells Fargo Bank, N.A.
                                       3800 Howard Hughes Parkway
                                       Las Vegas, NV 89109
                                       Attn: Clark Wood

                                       Telephone: (702) 791-6351
                                       Facsimile: (702) 791-6248

                                       Borrowings, Payments, Conversions

                                       Wells Fargo Bank, NA, as Agent Bank
                                       Commercial Bank Loan Center
                                       Agency Dept. 2840
                                       201 3rd Street, 8th Floor
                                       San Francisco, CA 94103
                                       Attn: Manager
                                       Telephone: (415) 477-5379
                                       Facsimile: (415) 512-9408

                                       29
<PAGE>   30

                                       Payment Instructions

                                       Wells Fargo Bank, NA
                                       San Francisco, CA
                                       ABA # 1210-00248
                                       For Acct.: 4081-656936
                                       Ref: Black Hawk

                                       BANK ONE, NA,
                                       Lender

                                       By
                                         --------------------------

                                       Name
                                           ------------------------

                                       Title
                                            -----------------------

                                       Address:

                                       777 S. Figueroa Street, 4th Floor
                                       Los Angeles, CA 90017-5801
                                       Attn: Jim Junker

                                       Telephone: (213) 683-4948
                                       Facsimile:
                                                 ------------------

                                       30
<PAGE>   31

                                       KEYBANK NATIONAL ASSOCIATION,
                                       Lender

                                       By
                                         --------------------------
                                         Jeanette Ganousis,
                                         Senior Vice President

                                       Address:

                                       1675 Broadway, Suite 500
                                       Denver, CO 80202
                                       Attn: Philip J. Randell, V.P.

                                       Telephone: (720) 904-4534
                                       Facsimile: (720) 904-4515

                                       WEST COAST BANK,
                                       Lender

                                       By
                                         --------------------------
                                         Timothy B. Johnson,
                                         Vice President

                                       Address:

                                       301 Church Street
                                       P.O. Box 428
                                       Salem, OR 97308-0428

                                       Telephone: (800) 422-5735
                                                  Ext. 2951
                                       Facsimile: (503) 399-3937

                                       31

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