Document:

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                                 NEVADA STATE

                                     BANK

                                  $5,000,000

                              REVOLVING LINE AND

                                    NOTE

<PAGE>

                       MASTER REVOLVING LINE OF CREDIT
                              PROMISSORY NOTE

                                ("This Note")

                                                              Las Vegas, Nevada
LINE OF CREDIT:   $5,000,000.00                               April 22, 1999

     FOR VALUE RECEIVED, the undersigned PDS FINANCIAL CORPORATION, a
Minnesota corporation, and PDS FINANCIAL CORPORATION-NEVADA, a Nevada
corporation (hereinafter collectively "Borrower"), hereby promises to pay to
the order of NEVADA STATE BANK (hereinafter "Lender"), the aggregate
principal amount of all outstanding notes made by Borrower in favor of Lender
evidencing advances made hereunder ("Advance Note"), not to exceed at any one
time outstanding the aggregate principal amount of FIVE MILLION AND NO/100THS
DOLLARS ($5,000,000.00), in lawful money of the United States with interest
accruing on each Advance Note at a fixed rate of interest equal to 300 basis
points over the 3-year LIBOR Interest Rate on the date of execution of the
Advance Note. The LIBOR Interest Rate is an index which is determined and
announced by Lender to determine the interest rate charged. It is not the
lowest rate charged by Lender. The index is related to the London Interbank
Offered Rate but does not equal the London Interbank Offered Rate. The LIBOR
Interest Rate is not intended to serve any purpose or have any meaning other
than to provide an index to determine the interest rate to be paid by
Borrower.

     This Note shall mature one (1) year from the date first above written
(unless extended by Lender), at which time no further advances under the line
of credit will be allowed. Each Advance Note made hereunder shall mature in
accordance with its own terms.

     The term of each Advance Note shall not exceed the lesser of the term
of the Eligible Contract(s) (as that term is defined in the Security
Agreement of even date) which is (are) funded under and Advance Note, or 42
months. Principal and interest shall be payable monthly under each Advance
Note in accordance with its own terms.

     This Note shall be a revolving line credit under which Borrower may
repeatedly draw (by way of Advance Notes) and repay funds, so long as no
default has occurred hereunder or under the Security Agreement or other
agreement providing collateral for this indebtedness; provided that the
aggregate principal balances of all Advance Notes outstanding at any one time
shall not exceed FIVE MILLION AND NO/100THS DOLLARS ($5,000,000.00). If at
any time prior to the maturity of this Note, this Note shall have a zero
balance owing, this Note shall not be deemed satisfied or terminated but
shall remain in full force and effect for future draws unless terminated upon
other grounds.

     This Note is executed and delivered pursuant to a SECURITY AGREEMENT of
even date herewith between Lender and Borrower (the "Security
Agreement"), and repayment of this Note shall be secured by the Collateral
described in the Security Agreement.

                                 EXHIBIT "A"

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     All references herein to certain defined terms shall refer to those
defined terms contained in the Security Agreement, which are incorporated into
this instrument by reference.

     As additional security for this Note, Lender has a lien on, a continuing
security interest in, and a right of setoff at any time without notice,
against all property and deposit accounts under the control of Lender which
belong to Borrower or any other party to this Note.

     In the event that (i) any amount due under this Advance Note is reduced
to judgment, (ii) Borrower is ten (10) days late in making any payment
provided in an Advance Note, or (iii) an Event of Default as defined in the
Security Agreement, occurs, Borrower shall be considered in default if any of
the above are not cured within ten (10) days after the date of written notice
sent by Lender to Borrower at the address set forth herein notifying Borrower
of the default, after which time the total of the unpaid balance of principal
and the accrued unpaid interest (past due interest being compounded) shall
then begin accruing interest at the rate stated above, plus three percent
(3.00%) per annum (the "Default Rate"), until such time as all past due
payments and accrued interest are paid. At that time, the interest rate will
revert to the rate stated above. Borrower acknowledges that the effect of
this Default Rate provision could operate to compound some of the interest
obligations due, and Borrower hereby expressly assents to such compounding
should it occur.

     Should the indebtedness represented by this Note, or any part hereof, be
collected at law, in equity, or in any bankruptcy, receivership or other
court proceeding, or this Note be placed in the hands of any attorney for
collection after default, Borrower agrees to pay, in addition to the
principal and interest due hereon, all reasonable attorney fees, plus all
other costs and expenses of collection and enforcement, including any fees
incurred in connection with such proceedings or collection of this Note
and/or enforcement of the Lender's rights with respect to the administration,
supervision, preservation or protection of, or realization upon, and property
security payment hereof.

     The failure of Lender to act or to exercise any right or remedy shall
not in any way affect or impair the obligation of Borrower to Lender, or
constitute a waiver by Lender of, or otherwise affect any of, Lender's rights
under this Note, under any endorsement or guaranty of this Note or under any
document or instrument evidencing any security for payment of this Note.

     The invalidity or unenforceability of any one or more provisions of this
Note shall in no way affect the other provisions.

     Borrower waives presentment, demand, protest and notice of nonpayment.

     All titles used in this Note are intended solely for convenience and
reference; said titles shall not affect any terms, provisions, or meanings of
this Note.

     The laws of the State of Nevada shall govern the validity, construction,
performance and effect of this Note.

                                    -2-

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ARBITRATION DISCLOSURES:

1.   ARBITRATION IS FINAL AND BINDING ON THE PARTIES AND SUBJECT TO ONLY
     VERY LIMITED REVIEW BY A COURT.

2.   IN ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN COURT,
     INCLUDING THEIR RIGHT TO A JURY TRIAL.

3.   DISCOVERY IN ARBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT.

4.   ARBITRATORS ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL
     REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK MODIFICATION
     OF ARBITRATORS' RULINGS IS VERY LIMITED.

5.   A PANEL OF ARBITRATORS MIGHT INCLUDE AN ARBITRATOR WHO IS OR WAS
     AFFILIATED WITH THE BANKING INDUSTRY.

6.   IF YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR THE
     AMERICAN ARBITRATION ASSOCIATION.

     a.  Any claim or controversy ("Dispute") between or among the parties
     and their assigns, including but not limited to Disputes arising out of
     or relating to this agreement, this arbitration provision ("arbitration
     clause"), or any related agreements or instruments relating hereto or
     delivered in connection herewith ("Related Documents"), and including
     but not limited to a Dispute based on or arising from an alleged tort,
     shall at the request of any party be resolved by binding arbitration in
     accordance with the applicable arbitration rules of the American
     Arbitration Association (the "Administrator"). The provisions of this
     arbitration clause shall survive any termination, amendment, or
     expiration of this agreement or related Documents. The provisions of
     this arbitration clause shall supersede any prior arbitration agreement
     between or among the parties. If any provision of this arbitration
     clause should be determined to be unenforceable, all other provisions of
     this arbitration clause shall remain in full force and effect.

     b.  The arbitration proceedings shall be conducted in Las Vegas, Nevada,
     at a place to be determined by the Administrator. The Administrator and
     the arbitrator(s) shall have the authority to the extent practicable to
     take any action to require the arbitration proceeding to be completed
     and the arbitrator(s)' award issued within one hundred fifty (150) days
     of the filing of the Dispute with the Administrator. The arbitrator(s)
     shall have the authority to impose sanctions on any party that fails to
     comply with time periods imposed by the Administrator or the
     arbitrator(s), including the sanction of summarily dismissing any
     Dispute or defense with prejudice. The arbitrator(s) shall have the
     authority to resolve any Dispute regarding

                                     -3-

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     the terms of this agreement, this arbitration clause or Related Documents,
     including any claim or controversy regarding the arbitrability of any
     Dispute. All limitations periods applicable to any Dispute or defense,
     whether by statute or agreement, shall apply to any arbitration
     proceeding hereunder and the arbitrator(s) shall have the authority to
     decide whether any Dispute or defense is barred by a limitations period
     and, if so, to summarily enter an award dismissing any Dispute or
     defense on that basis. The doctrines of compulsory counterclaim, res
     judicata, and collateral estoppel shall apply to any arbitration
     proceeding hereunder so that a party must state as a counterclaim in the
     arbitration proceeding any claim or controversy which arises out of the
     transaction or occurrence that is the subject matter of the Dispute. The
     arbitrator(s) may in the arbitrator(s)' discretion and at the request of
     any party: (1) consolidate in a single arbitration proceeding any other
     claim or controversy involving another party that is substantially
     related to the Dispute where that other party is bound by an arbitration
     clause with the Lender, such as borrowers, guarantors, sureties, and
     owners of collateral; (2) consolidate in a single arbitration proceeding
     any other claim or controversy that is substantially similar to the
     Dispute; and (3) administer multiple arbitration claims or controversies
     as class actions in accordance with the provisions of Rule 23 of the
     Nevada Rules of Civil Procedure or Rule 23 of the Federal Rules of Civil
     Procedure.

     c.  The arbitrator(s) shall be selected in accordance with the rules of
     the Administrator from panels maintained by the Administrator. A single
     arbitrator shall have expertise in the subject matter of the Dispute.
     Where three arbitrators conduct an arbitration proceeding, the Dispute
     shall be decided by a majority vote of the three arbitrators, at least
     one of whom must have expertise in the subject matter of the Dispute and
     at least one of whom must be a practicing attorney. The arbitrator(s)
     shall award to the prevailing party recovery of all costs and fees
     (including attorneys' fees and costs, arbitration administration fees and
     costs, and arbitrator(s)' fees). The arbitrator(s), either during the
     pendency of the arbitration proceeding or as part of the arbitration
     award, also may grant provisional or ancillary remedies, including but
     not limited to an award of injunctive relief, foreclosure,
     sequestration, attachment, replevin, garnishment, or the appointment of
     a receiver.

     d.  Judgment upon an arbitration award may be entered in any court
     having jurisdiction, subject to the following limitation: the
     arbitration award is binding upon the parties only if the amount does
     not exceed Four Million Dollars ($4,000,000.00); if the award exceeds
     that limit, either party may demand the right to a court trial. Such a
     demand must be filed with the Administrator within thirty (30) days
     following the date of the arbitration award; if such a demand is not
     made within that time period, the amount of the arbitration award shall
     be binding. The computation of the total amount of an arbitration award
     shall include amounts awarded for attorneys' fees and costs, arbitration
     administration fees and costs, and arbitrator(s)' fees.

     e.  No provision of this arbitration clause, nor the exercise of any
     rights hereunder,

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     shall limit the right of any party to: (1) judicially or non-judicially
     foreclose against any real or personal property collateral or other
     security; (2) exercise self-help remedies, including but not limited to
     repossession and setoff rights; or (3) obtain from a court having
     jurisdiction there over any provisional or ancillary remedies,
     including but not limited to injunctive relief, foreclosure,
     sequestration, attachment, replevin, garnishment, or the appointment of
     a receiver. Such rights can be exercised at any time, before or during
     initiation of an arbitration proceeding, except to the extent such
     action is contrary to the arbitration award. The exercise of such rights
     shall not constitute a waiver of the right to submit any Dispute to
     arbitration, and any claim or controversy related to the exercise of
     such rights shall be a Dispute to be resolved under the provisions of
     this arbitration clause. Any party may initiate arbitration with the
     Administrator; however, if any party initiates litigation and another
     party disputes any allegation in that litigation, the disputing party -
     upon the request of the initiating party - must file a demand for
     arbitration with the Administrator and pay the Administrator's filing
     fee. The parties may serve by mail a notice of an initial motion for an
     order of arbitration.

     f.  Notwithstanding the applicability of any other law to this
     agreement, the arbitration clause, or Related Documents between or among
     the parties, the Federal Arbitration Act,  9 U.S.C. Section 1 ET SEQ.,
     shall apply to the construction and interpretation of this arbitration
     clause.

    If there is a lawsuit, Borrower agrees upon Lender's request to submit
to the jurisdiction of the courts of Clark County, State of Nevada (INITIAL
HERE /s/ S). Lender and Borrower hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by either Lender or
Borrower against the other.

     IN WITNESS WHEREOF, this Note has been executed effective this date and
place above written.

"Borrower"

PDS FINANCIAL CORPORATION,             PDS FINANCIAL CORPORATION-NEVADA,
a Minnesota corporation                a Nevada corporation

By:  /s/ Steven M. Des Champs          By: /s/ Steven M. Des Champs
   -------------------------------        ------------------------------

Its: Chief Financial Officer           Its: Chief Financial Officer
    ------------------------------         -----------------------------

Borrowers' Address:
6171 McLeod Drive
Las Vegas, Nevada 89120

                                     -5-

<PAGE>

                              SECURITY AGREEMENT

     THIS SECURITY AGREEMENT is made and entered into this 22 day of April,
1999, by and between PDS FINANCIAL CORPORATION, a Minnesota corporation, and
PDS FINANCIAL CORPORATION-NEVADA, a Nevada corporation (collectively
"Grantor"), and NEVADA STATE BANK, a Nevada corporation ("Lender").

                                   RECITALS

     WHEREAS, Grantor has applied to Lender for a revolving line of credit
loan (the "Loan") in the principal amount of FIVE MILLION AND NO/100THS
DOLLARS ($5,000,000.00) as provided for in the Master Revolving Line of
Credit Promissory Note, a copy of which is attached hereto and incorporated
herein as Exhibit "A"; and

     WHEREAS, Lender has determined to make the Loan upon the terms and
conditions set forth below;

     NOW THEREFORE, in accordance with the above recitals and for other good
and valuable consideration, receipt of which is hereby acknowledged, Grantor
hereby grants to Lender a security interest in the Collateral (as described
below) to secure the Indebtedness (as defined below), and agrees that Lender
shall have the rights stated in this Agreement with respect to the
Collateral, in addition to all other rights which Lender may have by law.

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

     1.01   ACCEPTED ELIGIBLE CONTRACT.  The words "Accepted Eligible
     Contract" mean an Eligible Contract presented by Grantor to Lender,
     which meets the Lender's review criteria (as required by Exhibit B), and
     is approved and accepted by Lender for funding.

     1.02   AGREEMENT.  The word "Agreement" means this Security Agreement,
     as may be modified in writing from time to time, evidencing, governing,
     representing, or creating a Security Interest.

     1.03   BORROWER.  The word "Borrower" means, collectively, PDS FINANCIAL
     CORPORATION, a Minnesota corporation and PDS FINANCIAL
     CORPORATION-NEVADA, a Nevada corporation, and their successors, assigns,
     and transferees.

     1.04   COLLATERAL.  The word "Collateral" means all the following
     described property of Grantor and the proceeds therefrom whether now
     owned or hereafter acquired, and wherever located:

<PAGE>

            a.  CHATTEL PAPER. "Chattel paper" means all writings which
            evidence both a monetary obligation and a security interest in or
            a lease of specific goods related to an Accepted Eligible
            Contract. When a transaction is evidenced by both a security
            agreement or a lease and by an instrument or a series of
            instruments, the group of writings taken together constitutes
            chattel paper.

            b.  CONTRACT RIGHTS. "Contract rights" means all of the Grantor's
            rights to payment under an Accepted Eligible Contract, whether
            not yet earned by performance, and not evidenced by an instrument
            or chattel paper.

            c.  DEPOSIT ACCOUNTS.  "Deposit account" means all of Grantor's
            demand, time, savings, passbook or like account maintained with
            the Lender, if any.

            d.  EQUIPMENT.  "Equipment" means that equipment, or equipment
            in which Grantor has rights, wherever located, including, without
            limitation, gaming devices, tables, and all other machinery,
            furniture, furnishings, leasehold improvements, fixtures, motor
            vehicles, forklifts, stock, dyes and tools related solely to an
            Accepted Eligible Contract.

            e.  FIXTURES.  "Fixtures" means all of Grantor's good which have
            been so annexed to land that it is regarded as part of the land
            related solely to an Accepted Eligible Contract.

            f.  FURNITURE.  "Furniture" means all of Grantor's property that
            furnishes or is supplied to a room, office, place of business, or
            public building or the like, to make it habitable, convenient or
            agreeable related solely to an Accepted Eligible Contract.

            g.  GENERAL INTANGIBLES.  "General Intangibles" means all general
            intangibles of Grantor, including, but not limited to, all
            copyrights, royalties, trademarks, trade names, service marks,
            patent and proprietary marks, customer lists, goodwill,
            blueprints, drawings, designs, trade secrets, plans, diagrams,
            schematics, assembly and display materials relating thereto,
            contract rights, income tax refunds, chooses in action, and any
            other personal property other than goods, accounts, chattel
            paper, documents, instruments, and money related solely to an
            Accepted Eligible Contract.

           h.  GOODS. "Goods" means all of Grantor's tangible personal
           property that is movable at the time the security interest
           attaches or that is a fixture, whether now owned or hereafter
           acquired, but does not include money, documents, instruments,
           accounts, chattel paper, general intangibles, or minerals or the
           like related solely to an Accepted Eligible Contract.

           i.  INSTRUMENT. "Instrument" means all of Grantor's negotiable
           instruments or

                                     -2-

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            certified securities or any other writings which evidence a right
            to payment of money and is not itself a security agreement or
            lease and is of a type which is in the ordinary course of
            business transferred by delivery with any necessary endorsement
            or assignment related solely to an Accepted Eligible Contract.

           j.  PROCEEDS.  The word "Proceeds" includes all the following,
           whether now owned by Grantor or hereafter acquired, whether now
           existing or hereafter arising, and wherever located related to an
           Accepted Eligible Contract:

            (1)   All attachments, accessions, tools, parts, supplies,
                  increases and additions to and all replacements of and
                  substitutions for any property described in this section 1.04.

            (2)   All products and produce of any of the property described
                  in this section 1.04.

            (3)   All accounts, contract rights, general intangibles,
                  instruments, monies payments and all other rights, arising
                  out of a sale, lease or other disposition of any of the
                  property described in this section 1.04.

            (4)   All proceeds (including insurance proceeds) from the sale,
                  destruction, loss, or other disposition of any of the
                  property described in this section 1.04.

            (5)   All records and data relating to any of the property
                  described in this Collateral section, whether in the form
                  of a writing, photograph, microfilm, microfiche, or
                  electronic media, together with all of Grantor's right,
                  title and interest in and to all computer software required
                  to utilize, create, and process any such records or data on
                  electronic media.

     1.05   ELIGIBLE CONTRACT. The words "Eligible Contract" shall mean a
     contract evidencing debt or lease payment obligations by Grantor's
     obligor in favor of Grantor and pledged as collateral which meets the
     criteria described in Exhibit "B", attached hereto and incorporated
     herein, and shall include any substitute, replacement or refinancing
     contract or contracts thereof.

     1.06   EVENT OF DEFAULT.  The term "Event of Default" means and includes
     any of the Events of Default set forth below in section 9 of this
     Agreement entitled "Event of Default."

     1.07   GRANTOR.  The word "Grantor" collectively means PDS FINANCIAL
     CORPORATION, a Minnesota corporation, and PDS FINANCIAL
     CORPORATION-NEVADA, a Nevada corporation, their successors, assigns and
     transferees.

     1.08   INDEBTEDNESS.  The word "Indebtedness" is used in its most
     comprehensive sense and means and includes all indebtedness, liabilities
     and obligations of Borrower to Lender,

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     including, without limiting the generality of the foregoing, any
     indebtedness, liability or obligation of Borrower to Lender under any
     loan made to Borrower by Lender prior to the date hereof and any and all
     extensions or renewals thereof in whole or in part; any indebtedness,
     liability or obligation of Borrower by Lender prior to the date hereof
     and any and all extensions or renewals thereof in whole or in part; any
     indebtedness, liability or obligation of Borrower to Lender arising
     hereunder or as a result hereof, whether evidenced by the Promissory
     Note, or any other promissory note given by Borrower to Lender, or
     otherwise, and any and all extensions or renewals thereof in whole or in
     part; any indebtedness, liability or obligation of Borrower to Lender
     under any later or future advances or loans made by Lender to Borrower,
     and any and all extensions or renewals thereof in whole or in part; any
     and all present and future indebtedness of Borrower to other creditors
     which is purchased by Lender from such other creditors; and any and all
     future or additional indebtedness, liabilities or obligations of
     Borrower to Lender whatsoever and in any event, whether existing as of
     the date hereof or hereafter arising, whether arising under a loan,
     lease, credit card arrangement, line of credit, letter of credit or
     other type of financing, whether direct, indirect, absolute or
     contingent, voluntary or involuntary, liquidated or unliquidated,
     determined or undetermined, as maker, endorser, guarantor, surety or
     otherwise, and whether evidenced by, arising out of or relating to, a
     promissory note, bill of exchange, check, draft, bond, letter of credit,
     guaranty agreement, bankers's acceptance, foreign exchange contract,
     commitment fee, service charge or otherwise; whether recovery of the
     indebtedness may be or may become barred or unenforceable against
     Borrower for any reason whatsoever; and whether the indebtedness arises
     from transactions which may be voidable on account of infancy, insanity,
     ultra vires, or otherwise.

     1.09  LENDER.  The word "Lender" means Nevada State Bank, a Nevada
     corporation its successors and assigns.

     1.10  PROMISSORY NOTE.  The words "Promissory Note" mean the Master
     Revolving Line of Credit Promissory Note of even date herewith in the
     principal amount of $5,000,000.00 given by Grantor to Lender.

     1.11  PERMITTED LIENS.  The words "Permitted Liens" mean: (a) liens and
     security interests securing indebtedness owed by Grantor to Lender; (b)
     liens for taxes, assessments, or similar charges either not yet due or
     being contested in good faith; (c) liens of materialmen, mechanics,
     warehousemen, or carriers, or other like liens arising in the ordinary
     course of business and securing obligations which are not yet delinquent.

     1.12  RELATED DOCUMENTS.  The words "Related Documents" mean and include
     without limitation the Promissory Note, all other promissory notes,
     including Advance Notes as defined under the Promissory Note, credit
     agreements, loan agreements, guaranties, security agreements, mortgages,
     deeds of trust, assignments, pledges and all other instruments and
     documents, whether now or hereafter existing, executed in connection
     with Grantor's Indebtedness to Lender.

                                      -4-

<PAGE>

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

2.  RIGHT OF SETOFF.  Grantor hereby grants Lender a contractual possessory
Security Interest in and hereby assigns, conveys, delivers, pledges, and
transfers all of Grantor's right, title and interest in and to Grantor's
deposit accounts with Lender (whether checking, savings, or some other
account), including all accounts held jointly with someone else and all
accounts Grantor may open in the future, excluding however all IRA, Keogh,
and trust accounts.  Grantor authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all Indebtedness against any and all such
accounts.

3.  OBLIGATIONS, REPRESENTATIONS, WARRANTIES AND WAIVERS OF GRANTOR.  Grantor
covenants, represents, warrants and makes the following waivers to Lender as
follows:

     3.01  ORGANIZATION.  Grantors are both corporations authorized to do
     business in the State of Nevada.

     3.02  AUTHORIZATION.  The execution, delivery, and performance of this
     Agreement by Grantor is duly authorized by all necessary action by
     Grantor and do not conflict with, result in a violation of, or
     constitute a default under: (a) any provision of any organizational
     document from Grantor or any other agreement or other instrument binding
     upon Grantor; or (b) any law, governmental regulation, court decree, or
     order applicable to Grantor.

     3.03  PERFECTION OF SECURITY INTEREST.  Grantor acknowledges that Lender
     has a valid and perfected Security Interest in the Collateral, and
     further agrees to execute such additional financing statement and
     continuations of financing statements and to take whatever other actions
     are required by Lender to perfect and continue perfection of Lender's
     Security Interest in the Collateral.  Upon request of Lender, Grantor
     will deliver to Lender any and all of the documents evidencing or
     constituting the Collateral, and Grantor will note Lender's interest
     upon any and all titles for titled property and chattel paper if not
     delivered to Lender for possession by Lender.  Grantor hereby appoints
     Lender as its irrevocable attorney-in-fact for the purpose of executing
     any documents necessary to perfect or to continue the Security Interest
     granted in this Agreement.  Lender may at any time, and without further
     authorization from Grantor, file a carbon, photographic or other
     reproduction of any financing statement or of this Agreement for use as
     a financing statement.  Grantor will reimburse Lender for all expenses
     for the perfection and the continuation of the perfection of Lender's
     Security Interest in the Collateral.  Grantor promptly will notify
     Lender of any change in Grantor's name or address, and any change to the
     assumed business

                                     -5-

<PAGE>

     name or names of Grantor.

     3.04  ENFORCEABILITY OF COLLATERAL.  To the extent the Collateral
     consists of contract rights, chattel paper, or general intangibles,
     Grantor represents that the Collateral is enforceable in accordance with
     its terms, is genuine, and complies with applicable laws concerning
     form, content and manner of preparation and execution, and all persons
     appearing to be obligated on the Collateral have authority and capacity
     to contract and are in fact obligated as they appear to be on the
     Collateral.

     3.05  LOCATION OF GRANTOR'S OFFICES AND RECORDS.  Grantor's place of
     business, or Grantor's chief executive office, if Grantor has more than
     one place of business, is located at 6171 McLeod Drive, Las Vegas,
     Nevada 89120.  Unless Grantor has designated otherwise in writing this
     location is also the office or offices where Grantor keeps its records
     concerning the Collateral.

     3.06  REMOVAL OF COLLATERAL.  Grantor shall keep the Collateral (or to
     the extent the Collateral consists of intangible property such as
     contract rights or general intangibles, the records concerning the
     Collateral) at Grantor's address shown above, or at such other locations
     as are disclosed to and acceptable to Lender.  The acceptance of an
     Eligible Contract shall constitute disclosure and acceptance by Lender.
     Except in the ordinary course of its business, Grantor shall not remove
     the Collateral or records from its existing locations without the prior
     written consent of Lender.

     3.07  TRANSACTIONS INVOLVING COLLATERAL.  Grantor shall not sell, offer
     to sell, or otherwise transfer or dispose of the Collateral.  Grantor
     shall not pledge, mortgage, encumber or otherwise permit the Collateral
     to be subject to any lien, security interest, encumbrance, or charge,
     other than the Security Interest provided for in this Agreement, without
     the prior written consent of Lender.  This includes security interests
     even if junior in right to the Security Interests granted under this
     Agreement.  Unless waived by Lender, all proceeds from any disposition
     of the Collateral (for whatever reason) shall be held in trust for
     Lender and shall not be commingled with any other funds; provided,
     however, this requirement shall not constitute consent by Lender to any
     sale or other disposition.  Upon receipt, Grantor shall immediately
     deliver any such proceeds to Lender.

     3.08  TITLE.  Grantor represents and warrants to Lender that it holds
     good and marketable title to the Collateral.  No financing statement
     covering any of the Collateral is on file in any public office other
     than those which reflect the security interest created by this
     Agreement. Grantor acknowledges that Lender has a first priority
     perfected Security Interest in the Collateral, and Grantor shall defend
     Lender's rights in the Collateral against the claims and demands of all
     other persons or entities.

     3.09  COLLATERAL SCHEDULES AND LOCATIONS.  Insofar as the Collateral
     consists of equipment, Grantor shall deliver to Lender at least
     annually, or more often as Lender shall otherwise require, such lists,
     descriptions, and designations of such Collateral as Lender may require
     to identify the nature, extent, and location of such Collateral.  Such
     information shall be submitted for Grantor and each of its subsidiaries
     or related companies.

                                      -6-
<PAGE>

     3.10  INSPECTION OF RECORDS; MAINTENANCE AND INSPECTION OF COLLATERAL.
     Grantor shall use its best efforts to ensure that all tangible Collateral
     remains in good condition and repair.  Grantor will not commit or permit
     damage to or destruction of the Collateral or any part of the Collateral.
     Lender and its designated representatives and agents shall have the
     right at all reasonable times to examine, inspect, audit, Grantor's
     books, accounts, records, and Collateral subject to the terms and
     conditions of the documents between Grantor and its obligor, and, if
     Lender deems it necessary, repair and maintain the Collateral wherever
     located.  Grantor shall immediately notify Lender of all cases involving
     the return, rejection, repossession, loss or damage of or to any
     Collateral; of any request for credit or adjustment or of any other
     dispute arising with respect to the Collateral; and generally of all
     happenings and events affecting the Collateral or the value or the
     amount of the Collateral.  Borrower shall reimburse Lender upon demand
     for any sums expended by Lender to repair or maintain the Collateral.
     All information received by Lender under this Section shall be held
     confidential.

     3.11  TAXES, ASSESSMENTS AND LIENS.  Grantor shall pay when due all of
     its local, state and federal taxes, and any other taxes, assessments and
     liens upon the Collateral, its use or operation, upon this Agreement,
     upon any promissory note or notes evidencing the Indebtedness, or upon
     any of the other Related Documents. Grantor may withhold any such
     payment or may elect to contest any lien if Grantor is in good faith
     conducting an appropriate proceeding to contest the obligation to pay
     and so long as Lender's interest in the Collateral is not jeopardized in
     Lender's sole opinion. If the Collateral is subjected to a lien which is
     not discharged within fifteen (15) days, Grantor shall deposit with
     Lender cash, a sufficient corporate surety bond or other security
     satisfactory to Lender in an amount adequate to provide for the
     discharge of the lien plus any interests, costs, attorneys' fees or
     other charges that could accrue. In any contest Grantor shall defend
     itself and Lender and shall satisfy any final adverse judgment before
     enforcement against the Collateral. Grantor shall name Lender as an
     additional obligee under any surety bond furnished in the contest
     proceedings.

     3.12  COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS.  Grantor shall comply
     promptly with all laws, ordinances and regulations of all governmental
     authorities applicable to the production, disposition, or use of the
     Collateral. Grantor may contest in good faith any such law, ordinance or
     regulation and withhold compliance during any proceeding, including
     appropriate appeals, so long as Lender's interest in the Collateral, in
     Lender's opinion, is not jeopardized.

     3.13  HAZARDOUS SUBSTANCES.  Grantor represents and warrants that the
     Collateral never has been, and never will be so long as this Agreement
     remains a lien on the Collateral, used for the generation, manufacture,
     storage, treatment, disposal, release or threatened release of any
     hazardous waste or substance, as those terms are defined in the
     Comprehensive Environmental Response, Compensation, and Liability Act of
     1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the
     Superfund Amendments and Reauthorization Act of 1986, Publ. L. No.
     99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C.
     Section 1801, et seq., the Resource Conservation and Recovery Act, 49
     U.S.C.

                                       -7-

<PAGE>

     Section 6901, et seq., the Underground Storage Tanks Act, 42 U.S.C.
     Section 6991, et seq., or other applicable state or Federal laws, rules,
     or regulations adopted pursuant to any of the foregoing. The
     representations and warranties contained herein are based on Grantor's
     due diligence in investigating the Collateral for hazardous waste.
     Grantor hereby (a) releases and waives any future claims against Lender
     for indemnity or contribution in the event Grantor becomes liable for
     cleanup or other costs under any such laws, and (b) agrees to indemnify
     and hold harmless Lender against any and all claims and losses resulting
     from a breach of this provision of this Agreement. This obligation to
     indemnify shall survive the payment of the Indebtedness and the
     satisfaction of this Agreement.

     3.14  MAINTENANCE OF CASUALTY INSURANCE.  Grantor shall use its best
     efforts to ensure that all risks insurance is procured and maintained,
     including without limitation fire, theft and liability coverage together
     with such other insurance as Lender may require with respect to the
     Collateral, in form, amounts, coverages and basis reasonably acceptable
     to Lender and issued by a company or companies reasonably acceptable to
     Lender. Grantor will use its best efforts to deliver to Lender the
     policies or certificates of insurance in form satisfactory to Lender,
     including stipulations that coverages will not be canceled or diminished
     without at least ten (10) days' prior written notice to Lender. In
     connection with all policies covering the Collateral and other assets in
     which Lender holds or is offered a security interest for the
     Indebtedness, Grantor will provide Lender with such loss payable, or
     additional insured status, or other endorsements as Lender may require.
     If Grantor at any time fails to obtain or maintain any insurance as
     required under this Agreement, Lender may (but shall not be obligated
     to) obtain such insurance as Lender deems appropriate, including if it
     so chooses "single interest insurance," which will cover only Lender's
     interest in the Collateral. Grantor shall pay Lender for the costs of
     such insurance as provided in section 5 of this Agreement.

     3.15  APPLICATION OF INSURANCE PROCEEDS.  Grantor shall promptly notify
     Lender of any loss or damage to the Collateral. Lender may make proof of
     loss if Grantor fails to do so within fifteen (15) days of the casualty.
     All proceeds of any insurance on the Collateral, including accrued
     proceeds thereon, shall be held by Lender as part of the Collateral. If
     Lender consents to repair or replacement of the damaged or destroyed
     Collateral, Lender shall, upon satisfactory proof of expenditure, pay or
     reimburse Grantor from the proceeds for the reasonable cost of repair or
     restoration. If Lender does not consent to repair or replacement of the
     Collateral, Lender shall retain a sufficient amount of the proceeds to
     pay all of the Indebtedness, and shall pay the balance to Grantor. Any
     proceeds which have not been disbursed within six (6) months after their
     receipt and which Grantor has not committed to the repair or restoration
     of the Collateral shall be used to prepay the Indebtedness.

     3.16  JUDGMENT LIENS.  No judgment liens have been filed against Grantor.

     3.17  TAX LIENS.  No tax liens have been filed against Grantor.

     3.18  INSOLVENCY.  After giving effect to the execution and delivery of
     this Agreement and/or any Related Documents, Grantor will not be
     "insolvent" as such term is defined in

                                       -8-

<PAGE>

     the Bankruptcy Code, 11 U.S.C. 101 et seq., any successor provision, or
     any state or local law.

     Grantor will not be left with unreasonably small capital and Grantor
     will not be unable to pay its debts generally as such debts become due.

     3.19  CHANGE OF PRINCIPAL PLACE OF BUSINESS, NAME, IDENTITY OR STRUCTURE.
     Grantor will not move its executive office or change its name, identity
     or its structure without first notifying Lender in writing at least
     thirty (30) days prior thereto. Grantor will, if requested to do so by
     Lender, execute any and all documents to make this Agreement and any
     and all Related Documents binding upon Grantor when operating under the
     new name, identity or structure.

     3.20  FINANCIAL INFORMATION.  Grantor shall provide Lender with such tax
     returns, financial statements, and financial reports as may be
     reasonably requested by Lender. Such financial reports shall include,
     but not necessarily be limited to the annual 10K, quarterly 10Q's,
     monthly borrowing base certificates and supporting schedules, and
     evidence of insurance by the obligor's or the lessees on the underlying
     equipment under the Eligible Contract.

     3.21  FINANCIAL PRIVACY.  Grantor waives any privacy rights he may have
     to Lender's files on Grantor. Grantor authorizes Lender to disclose any
     documents contained in its files on Grantor at Lender's sole discretion.
     All information received by Lender under this Section shall be held
     confidential, unless Lender is compelled by law to disclose any of the
     information from Lender's files on Grantor.

     3.22  USE OF PROCEEDS.  Grantor covenants and agrees to use the proceeds
     of each advance under the Loan, as evidenced by a separate Advance Note,
     solely for financing contracts with certain casino operators for the
     purchase or lease of Collateral as defined herein.

     3.23  PAYMENT OF TAXES; CONDUCT OF BUSINESS.  Grantor shall pay all
     taxes when due and conduct and maintain business in accordance with all
     applicable federal and state laws and regulations, including all
     licenses and filing of reports required under the Nevada Gaming
     Commission.

     3.24  SENIOR DEBT.  The nature of the Loan shall be considered "senior
     debt", which is defined to mean a secured borrowing from a financial
     institution and shall be considered pari passu with other senior debt.

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

     3.26  FINANCIAL COVENANTS.  The following financial covenants shall
     apply to Grantor

                                     -9-

<PAGE>

during the term of the Loan:

           3.26.1 MINIMUM TANGIBLE NET WORTH (TOTAL STOCKHOLDER'S EQUITY LESS
                  INTANGIBLE ASSETS PER GAAP): $8,000,000.00 as of December 31,
                  1999, and thereafter.

           3.26.2 FIXED CHARGES COVERAGE RATIO:  2.00 as of December 31, 1999,
                  and thereafter. Calculated Earnings Before Interest, Taxes,
                  Depreciation and Amortization divided by Fixed Charges.
                  (Fixed Charges to include interest expense; subordinated debt
                  principal payments and taxes paid).

           3.26.3 LEVERAGE RATIO NOT TO EXCEED 7:1. LEVERAGE RATIO IS DEFINED
                  AS: Total Debt (Total Liabilities less subordinated debt;
                  non-recourse debt; deferred funds) Divided By Tangible Net
                  Worth (Total Stockholders Equity less Intangible Assets per
                  GAAP) as of December 31, 1999 and thereafter.

     3.27  YEAR 2000 COMPLIANCE. "Year 2000 compliant" means, with regard to
     any entity, that all material software utilized by such entity is able
     to fully function without causing any error to such entity's
     date-sensitive data. "Providers" means the key suppliers, vendors, and
     customers of Grantor whose business failure would, with reasonable
     probability, result in a material adverse change in the financial
     condition or prospects of Grantor.

          Grantor has or will soon have (i) undertaken a detailed assessment
     of all areas within its business and operations that could be adversely
     affected by the failure of Grantor to be Year 2000 compliant, (ii)
     developed and implemented a detailed plan for becoming Year 2000
     compliant on a timely basis, and (iii) made written inquiry of each of
     its Providers as to whether the Providers will be Year 2000 compliant
     in all material respects.  Grantor reasonably anticipates that it and
     the Providers will be Year 2000 compliant on a timely basis. Grantor
     will promptly advise Lender in writing upon the occurrence of any of
     the following: (i) Grantor determines or Grantor is advised by its
     accountants, financial adviser, consultants, or auditors or any Provider
     that it or any Provider will not be Year 2000 compliant on a timely
     basis or (ii) Grantor or any Provider experiences data or data processing
     problems due to failure to be Year 2000 compliant.

     3.28  GRANTOR'S UNDERSTANDING WITH RESPECT TO OBLIGATIONS,
     REPRESENTATIONS, WARRANTIES AND WAIVERS. Grantor hereby acknowledges
     that it made the above obligations, representations, warranties and
     waivers to Lender in order to induce Lender to loan money to Borrower.
     Grantor further acknowledges that Lender has relied upon those
     obligations, representations, warranties and waivers and acknowledges
     that Lender would not have loaned any sum of money to Borrower in the
     absence of those obligations, representations, warranties and waivers.

4.   LOAN ADVANCES. Loan Advances under the Loan shall be made in the
following manner:

     4.01  ADVANCE NOTES. Each Loan Advance shall be evidenced by a separate
     non-revolving

                                     -10-

<PAGE>

     note ("Advance Note") drawn under the Master Revolving Promissory Note.
     The principal amount of each Advance Note shall be determined by taking
     ninety percent (90%) of the value of the equipment securing the Eligible
     Contracts. There shall be a minimum of $250,000.00 for each Advance
     Note. No more than five (5) Eligible Contracts with a minimum balance of
     $50,000.00 each shall be aggregated under any one (1) Advance Note. No
     more than ten percent (10%) of the collateral securing the Eligible
     Contracts which are aggregated for funding under one (1) Advance Note,
     shall consist of non-gaming devices at the time of funding. The term of
     each Advance Note shall not exceed the terms of the Eligible Contracts
     being funded under the Advance Note, or 42 months, which ever is less.
     Payments under each Advance Note shall be made by monthly principal and
     interest payments, fully amortized over the term of the Advance Note,
     based upon a fixed interest rate equal to the 3-year LIBOR rate at the
     time of execution of the Advance Note, plus 300 basis points.

     4.02  CESSATION OF ADVANCES. If Lender has made any commitment to make
     any Loan to Grantor, whether under this Agreement or under any other
     agreement, Lender shall have no obligation to make Loan Advances or to
     disburse Loan proceeds if: (a) Grantor is in default under the terms of
     this Agreement or any of the Related Documents or any other agreement
     that Grantor has with Lender; (b) Grantor becomes insolvent, files a
     petition in bankruptcy or similar proceedings, or is adjudged a
     bankrupt; or (c) there occurs a material adverse change in Grantor's
     financial condition, or in the value of any Collateral securing the Loan.

5.   BORROWING AND REPAYMENT. Grantor may, from time to time during the term
of the Promissory Note, borrow or partially or wholly repay its outstanding
borrowing in the amount of FIVE MILLION AND NO/100THS DOLLARS
($5,000,000.00), or integral multiples thereof, and re-borrow, subject to all
of the limitations, terms and conditions contained herein, provided that the
total outstanding borrowing hereunder at any one time, as represented by the
aggregate principal amount of all Advance Notes outstanding, shall at no time
exceed FIVE MILLION AND NO/100THS DOLLARS ($5,000,000.00).

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

     (a)  Engage in any business activities substantially different than
     those in which Borrower is presently engaged; (b) cease operations,
     liquidate, merge, transfer, acquire or consolidate with any other
     entity, change ownership, change its name, dissolve or transfer or sell
     Collateral out of the ordinary course of business; (c) pay any dividends
     on Borrower's stock (other than dividends payable in its stock),
     provided, however, that notwithstanding the foregoing, but only so long
     as no Event of Default has occurred and is continuing or would result
     from the payment of dividends, if Borrower is a "Subchapter S
     Corporation" (as defined in the Internal Revenue Code of 1986, as
     amended), Borrower may pay cash dividends on its stock to its
     shareholders from time to time in amounts necessary to enable the
     shareholders to pay income taxes and make estimated income tax payments
     to satisfy their liabilities under federal and state law which arise
     solely from their status as Shareholders of a Subchapter S Corporation

                                     -11-

<PAGE>

     because of their ownership of shares of stock of Borrower; (d) purchase
     or retire any of Borrower's outstanding shares or alter or amend
     Borrower's capital structure; (e) encumber any of the Collateral under
     the Loan, except for Lender's encumbrance; or (f) allow any Event of
     Default to continue past any cure period provided for herein.

7.   GRANTOR'S RIGHT TO POSSESSION.  Until default, Grantor may have possession
of the tangible personal property and beneficial use of all the Collateral
and may use it in any lawful manner not inconsistent with this Agreement or
the Related Documents, provided that Grantor's right to possession and
beneficial use shall not apply to any Collateral where possession of the
Collateral by Lender is required by law to perfect Lender's security interest
in such Collateral. If Lender at any time has possession of any Collateral,
whether before or after an Event of Default, Lender shall be deemed to have
exercised reasonable care in the custody and preservation of the Collateral
if Lender takes such action for that purpose as Grantor shall request or as
Lender, in Lender's sole discretion, shall deem appropriate under the
circumstances, but failure to honor any request by Grantor shall not of
itself be deemed to be a failure to exercise reasonable care. Grantor shall
hold Lender harmless for any depreciation in the Collateral caused by
fluctuations in the market for that Collateral. Lender shall not be required
to take any steps necessary to preserve any rights in the Collateral against
prior parties, nor to protect, preserve or maintain any Security Interest
given to secure the Collateral.

8.  EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may
but shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without
limitation, all insurance premiums, taxes, liens, security interests,
encumbrances, and other claims, at any time levied or placed on the
Collateral. Lender also may (but shall not be obligated to) pay all costs for
insuring, maintaining and preserving the Collateral. All such expenditures
incurred or paid by Lender for such purposes will then bear interest at the
highest rate charged under the Related Documents evidencing the Indebtedness
from the date incurred or paid by Lender to the date of repayment by Grantor.
All such expenses shall become a part of the Indebtedness and, at Lender's
option, will:

     a.  be payable on demand; or

     b.  be added to the balance of the Indebtedness and be payable with any
     installment payments due under the Indebtedness to become due during the
     term of any applicable insurance policy; or

     c.  be treated as a balloon payment which will be due and payable at the
     maturity of the applicable Related Document for the Indebtedness.

     This Agreement also will secure payment of these amounts. Such right
shall be in addition to all other rights and remedies to which Lender may be
entitled upon the occurrence of an Event of Default.

9.   EVENT OF DEFAULT.  Occurrence of any of the following events shall be an
"Event of Default" under this Agreement:

                                     -12-

<PAGE>

     9.01  DEFAULT ON INDEBTEDNESS.  Failure of Grantor to make any payment
     when due on the Indebtedness.

     9.02  OTHER DEFAULTS.  Failure of Grantor to comply with or to perform
     any term, obligation, covenant or condition contained in this Agreement
     or in any of the Related Documents.

     9.03  FALSE STATEMENTS.  Any warranty, representation or statement made
     or furnished to Lender by or on behalf of Grantor under this Agreement
     is false or misleading in any material respect, either now or at the
     time made or furnished.

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

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

     9.06.  CREDITOR PROCEEDINGS.  Commencement of foreclosure, whether by
     judicial proceeding, self-help repossession or any other method, by any
     creditor of Grantor against the Collateral or any other collateral
     securing the Indebtedness.  This includes a garnishment of any of
     Grantor's deposit accounts with Lender.  However, except for garnishment
     of accounts, this Event of Default shall not apply if there is a good
     faith dispute by Grantor as to the validity or reasonableness of the
     claim which is the basis of the creditor proceeding  and if Grantor
     gives Lender written notice of the creditor proceeding and deposits with
     Lender monies or a security bond for the creditor proceeding, in an
     amount determined by Lender, in its sole discretion, as being an
     adequate reserve or bond for the dispute.

     9.07.  LOSS, REVOCATION OR SUSPENSION OF LICENSE.  The loss, lapse,
     revocation, condition, suspension or any other adverse or negative
     action taken against Grantor or against any gaming, liquor, business or
     other license issued by any governmental body or entity to Grantor.

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

     9.09.   TITLE TO COLLATERAL.  The acquisition at any time of title to
     the whole, or any part of, the Collateral which is Security for the
     Promissory Note, by any person, partnership, limited liability company,
     or corporation other than Borrower.

10.  RIGHTS AND REMEDIES ON DEFAULT.  If an Event of Default occurs under
this Agreement, at any time thereafter, Lender shall have all the rights of a
secured party under the

                                     -13-
<PAGE>

Nevada Uniform Commercial Code or any successor law.  In addition and without
limitation, Lender may exercise any one or more of the following rights and
remedies:

     10.01.   ACCELERATE INDEBTEDNESS.  Lender may declare the entire
     Indebtedness immediately due and payable, without notice.

     10.02.  ASSEMBLE COLLATERAL.  Lender may require Grantor to deliver to
     Lender all or any portion of the Collateral and any and all certificates
     of title and other documents relating to the Collateral.  Lender may
     require Grantor to assemble the Collateral and make it available to
     Lender at a place to be designated by Lender.  Lender also shall have
     full power to enter upon the property of Grantor to take possession of
     and remove the Collateral.  If the collateral contains other goods not
     covered by this Agreement at the time of repossession, Grantor agrees
     Lender may take such other goods, provided that Lender makes reasonable
     efforts to return them to Grantor after repossession.

     10.03.  SELL THE COLLATERAL.  Lender shall have full power to sell,
     lease, transfer, or otherwise deal with the Collateral or proceeds
     thereof in its own name or that of Grantor. Lender may sell the
     Collateral at public auction or private sale.  Unless the Collateral
     threatens to decline speedily in value or is of a type customarily sold
     on a recognized market, Lender will give Grantor reasonable notice of
     the time after which any private sale or any other intended disposition
     of the Collateral is to be made.  The requirements of reasonable notice
     shall be met if such notice is given at least ten (10) days before the
     time of the sale of disposition.  All expenses relating to the
     disposition of the Collateral, including without limitation the expenses
     of retaking, holding, insuring, preparing for sale and selling the
     Collateral, shall become a part of the Indebtedness secured by this
     Agreement and shall be payable on demand, with interest at the agreed
     upon rate in the applicable Related Document from date of expenditures
     until repaid.

     10.04.  APPOINT RECEIVER.  To the extent permitted by applicable law,
     Lender shall have the following rights and remedies regarding the
     appointment of a receiver: (a) Lender may have a receiver appointed as a
     matter of right;  (b) the receiver may be an employee of Lender and may
     serve without bond; (c) all fees of the receiver and his or her attorney
     shall become part of the Indebtedness secured by this Agreement.

     10.05.  COLLECT REVENUES, APPLY ACCOUNTS.  Lender, either itself or
     through a receiver, may collect the payments, rents, income, and
     revenues from the Collateral.  Lender may at any time in its discretion
     transfer any Collateral into its own name or that of its nominee and
     receive the payments, rents, income and revenues therefrom and hold the
     same as security for the Indebtedness or apply it to payment of the
     Indebtedness in such order of preference as Lender may determine.
     Insofar as the Collateral consists of accounts, general intangibles,
     contract rights, insurance policies, instruments, chattel paper, chooses
     in action, or similar property, Lender may demand, collect, receipt for,
     settle, compromise, adjust, sue for, foreclose, or realize on the
     Collateral as Lender may determine.  For these purposes, Lender may, on
     behalf of and in the name of Grantor, receive, open and dispose of mail
     addressed to Grantor and endorse notes, checks, drafts, money orders,
     documents of title, instruments

                                     -14-
<PAGE>

     and items pertaining to payment, shipment, or storage of any Collateral.
     To facilitate collection, Lender may notify account debtors and
     obligors on any Collateral to make payments directly to Lender.

     10.06  OBTAIN DEFICIENCY.  If Lender chooses to sell any or all of the
     Collateral, Lender may obtain a judgment against Grantor for any
     deficiency remaining on the Indebtedness due to Lender after application
     of all amounts received from the exercise of the rights provided in this
     Agreement.  Grantor shall be liable for a deficiency even if the
     transaction described in this subsection is a sale of accounts or
     chattel paper.

     10.07.  OTHER RIGHTS AND REMEDIES.  Lender shall have all the rights and
     remedies of a secured creditor under the provisions of the Nevada
     Uniform Commercial Code and any successor law, as they may be amended
     from time to time.  In addition, Lender shall have and may exercise any
     or all other rights and remedies it may have available at law, in equity,
     or otherwise.

     10.08.  CUMULATIVE REMEDIES.  All of Lender's rights and remedies,
     whether evidenced by this Agreement or the Related Documents or by any
     other writing, shall be cumulative and may be exercised singularly or
     concurrently.  Election by Lender to pursue any remedy shall not exclude
     pursuit of any other remedy, and an election to make expenditures or to
     take action to perform an obligation of Grantor under this Agreement,
     after Grantor's failure to perform, shall not affect Lender's right to
     declare a default and to exercise its remedies.

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

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

     11.02.  APPLICABLE LAW; VENUE; JURY WAIVER.  This Agreement has been
     delivered to Lender and accepted by Lender in the State of Nevada.
     Subject to the provision on arbitration, this Agreement shall be
     governed by and construed in accordance with the laws of the State of
     Nevada.  If there is a lawsuit, Grantor agrees upon Lender's request to
     submit to the jurisdiction of the courts of Clark County, State of
     Nevada (INITIAL HERE_____).  Grantor and Lender hereby waive the right
     to any jury trial in any action, proceeding or counterclaim brought by
     either Lender or Grantor against the other.

     11.03  ARBITRATION.  Arbitration Disclosures:

            (1)  ARBITRATION IS FINAL AND BINDING ON THE PARTIES AND SUBJECT
                 TO ONLY VERY LIMITED REVIEW BY A COURT.

                                    -15-

<PAGE>

     (2)  IN ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN
          COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL.

     (3)  DISCOVERY IN ARBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT.

     (4)  ARBITRATORS ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL
          REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK
          MODIFICATION OF ARBITRATORS' RULINGS IS VERY LIMITED.

     (5)  A PANEL OF ARBITRATORS MIGHT INCLUDE AN ARBITRATOR WHO IS OR WAS
          AFFILIATED WITH THE BANKING INDUSTRY.

     (6)  IF YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR
          THE AMERICAN ARBITRATION ASSOCIATION.

     a.  Any claim or controversy ("Dispute") between or among the parties and
     their assigns, including but not limited to Disputes arising out of or
     relating to this agreement, this arbitration provision ("arbitration
     clause"), or any related agreements or instruments relating hereto or
     delivered in connection herewith ("Related Documents"), and including but
     not limited to a Dispute based on or arising from an alleged tort, shall
     at the request of any party be resolved by binding arbitration in
     accordance with the applicable arbitration rules of the American
     Arbitration Association (the "Administrator").  The provisions of this
     arbitration clause shall survive any termination, amendment, or
     expiration of this agreement or related Documents. The provisions of
     this arbitration clause shall supersede any prior arbitration agreement
     between or among the parties. If any provision of this arbitration
     clause should be determined to be unenforceable, all other provisions of
     this arbitration clause shall remain in full force and effect.

     b.  The arbitration proceedings shall be conducted in Las Vegas, Nevada,
     at a place to be determined by the Administrator. The Administrator and
     the arbitrator(s) shall have the authority to the extent practicable to
     take any action to require the arbitration proceeding to be completed
     and the arbitrator(s)' award issued within one hundred fifty (150) days
     of the filing of the Dispute with the Administrator. The arbitrator(s)
     shall have the authority to impose sanctions on any party that fails to
     comply with time periods imposed by the Administrator or the
     arbitrator(s), including the sanction of summarily dismissing any
     Dispute or defense with prejudice. The arbitrator(s) shall have the
     authority to resolve any Dispute regarding the terms of this agreement,
     this arbitration clause or Related Documents, including any claim or
     controversy regarding the arbitrability of any Dispute. All limitations
     periods applicable to any Dispute or defense, whether by statute or
     agreement, shall apply to any arbitration proceeding hereunder and the
     arbitrator(s) shall have the

                                    -16-

<PAGE>

     authority to decide whether any Dispute or defense is barred by a
     limitations period and, if so, to summarily enter an award dismissing
     any Dispute or defense on that basis. The doctrines of compulsory
     counterclaim, res judicata, and collateral estoppel shall apply to any
     arbitration proceeding hereunder so that a party must state as a
     counterclaim in the arbitration proceeding any claim or controversy
     which arises out of the transaction or occurrence that is the subject
     matter of the Dispute. The arbitrator(s) may in the arbitrator(s)'
     discretion and at the request of any party: (1) consolidate in a single
     arbitration proceeding any other claim or controversy involving another
     party that is substantially related to the Dispute where that other
     party is bound by an arbitration clause with the Lender, such as
     borrowers, guarantors, sureties, and owners of collateral; (2)
     consolidate in a single arbitration proceeding any other claim or
     controversy that is substantially similar to the Dispute; and (3)
     administer multiple arbitration claims or controversies as class actions
     in accordance with the provisions of Rule 23 of the Nevada Rules of
     Civil Procedure or Rule 23 of the Federal Rules of Civil Procedure.

     c.  The arbitrator(s) shall be selected in accordance with the rules of
     the Administrator from panels maintained by the Administrator. A single
     arbitrator shall have expertise in the subject matter of the Dispute.
     Where three arbitrators conduct an arbitration proceeding, the Dispute
     shall be decided by a majority vote of the three arbitrators, at least
     one of whom must have expertise in the subject matter of the Dispute and
     at least one of whom must be a practicing attorney. The arbitrator(s)
     shall award to the prevailing party recovery of all costs and fees
     (including attorneys' fees and costs, arbitration administration fees
     and costs, and arbitrator(s)' fees). The arbitrator(s), either during the
     pendency of the arbitration proceeding or as part of the arbitration
     award, also may grant provisional or ancillary remedies, including but
     not limited to an award of injunctive relief, foreclosure,
     sequestration, attachment, replevin, garnishment, or the appointment of
     a receiver.

     d.  Judgment upon an arbitration award may be entered in any court
     having jurisdiction, subject to the following limitation: the
     arbitration award is binding upon the parties only if the amount does
     not exceed Four Million Dollars ($4,000,000.00); if the award exceeds
     that limit, either party may demand the right to a court trial. Such a
     demand must be filed with the Administrator within thirty (30) days
     following the date of the arbitration award; if such a demand is not
     made within that time period, the amount of the arbitration award shall
     be binding. The computation of the total amount of an arbitration award
     shall include amounts awarded for attorneys' fees and costs, arbitration
     administration fees and costs, and arbitrator(s)' fees.

     e.  No provision of this arbitration clause, nor the exercise of any
     rights hereunder, shall limit the right of any party to: (1) judicially
     or non-judicially foreclose against any real or personal property
     collateral or other security; (2) exercise self-help remedies,
     including but not limited to repossession and setoff rights; or (3)
     obtain from a court having jurisdiction thereover any provisional or
     ancillary remedies,

                                     -17-

<PAGE>

     including but not limited to injunctive relief, foreclosure,
     sequestration, attachment, replevin, garnishment, or the appointment of
     a receiver. Such rights can be exercised at any time, before or during
     initiation of an arbitration proceeding, except to the extent such
     action is contrary to the arbitration award. The exercise of such rights
     shall not constitute a waiver of the right to submit any Dispute to
     arbitration, and any claim or controversy related to the exercise of
     such rights shall be a Dispute to be resolved under the provisions of
     this arbitration clause. Any party may initiate arbitration with the
     Administrator; however, if any party initiates litigation and another
     party disputes any allegation in that litigation, the disputing party -
     upon the request of the initiating party - must file a demand for
     arbitration with the Administrator and pay the Administrator's filing
     fee. The parties may serve by mail a notice of an initial motion for an
     order of arbitration.

     f.  Notwithstanding the applicability of any other law to this agreement,
     the arbitration clause, or Related Documents between or among the
     parties, the Federal Arbitration Act,  9 U.S.C. Section 1 ET SEQ.,
     shall apply to the construction and interpretation of this arbitration
     clause.

11.04  ATTORNEYS' FEES; EXPENSES.  Grantor agrees to pay upon demand all of
Lender's costs and expenses, including attorneys' fees and legal costs,
accountants' fees, appraisers' fees and other professional fees and costs
incurred in connection with the enforcement of this Agreement. Lender may
pay someone else to help enforce this Agreement and Grantor shall pay the
costs and expenses of such enforcement. Costs and expenses include Lender's
attorneys' fees and legal expenses whether or not there is a lawsuit,
including attorneys' fees and legal expenses for bankruptcy proceedings,
appeals, any anticipated post-judgment collection services, and any travel
expenses and lodging expenses incurred by Lender and any professional or other
agent it may employ. Grantor also shall pay all court costs and such
additional fees as may be directed by the court.

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

11.06  COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which when fully executed shall be an original, and all
of said counterparts taken together shall be deemed to constitute one and
the same agreement. For the purpose of this section only, a telefax copy or a
facsimile copy of a counterpart is an original counterpart.

11.07  NOTICES.  All notices required to be given under this Agreement shall
be given in writing and shall be effective when actually delivered or when
deposited in the United States mail, first class, postage prepaid, addressed
to the party to whom the notice is to be given at the address shown below.
Any party may change its address for notices under this Agreement by giving
formal written notice to the other parties, specifying that the purpose of
the notice to the other parties, specifying that the purpose of the notice is
to change the party's address.

Grantor:   PDS Financial Corporation and PDS Financial Corporation-Nevada

                                     -18-

<PAGE>

           6171 McLeod Drive
           Las Vegas, NV 89120

                                      -19-

<PAGE>

Lender:       Nevada State Bank
              P.O. Box 990
              Las Vegas, NV 89125-0990
              Attention: Corporate Banking Group

11.08  POWER OF ATTORNEY.  Upon the occurrence of an Event of Default as
defined herein, Grantor hereby appoints Lender as its true and lawful
attorney-in-fact, irrevocably, with full power of substitution to do the
following:

a.  to demand, collect, receive, receipt for, sue and recover all sums of
    money or other property which may now or hereafter become due, owing or
    payable from the Collateral;

b.  to execute, sign and endorse any and all claims, instruments, receipts,
    checks, drafts or warrants issued in payment for the Collateral;

c.  to settle or compromise any and all claims arising under the Collateral,
    and, in the place and instead of Grantor, to execute and deliver its
    release and settlement for the claim; and

d.  to file any claim or claims or to take any action or institute or take
    part in any proceedings, either in its own name or in the name of
    Grantor, or otherwise, which in the discretion of Lender may seem to be
    necessary or advisable.  This power is given as security for the
    Indebtedness, and the authority hereby conferred is and shall be
    irrevocable and shall remain in full force and effect until renounced by
    Lender or this Security Agreement is terminated.

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

11.10  SUCCESSOR INTERESTS.  Subject to the limitations set forth above on
transfer of the Collateral, this Agreement shall be binding upon and inure to
the benefit of the parties, their successors, assigns, estates, heirs and
transferees.

11.11  WAIVER.  Lender shall not be deemed to have waived any rights under
this Agreement unless such waiver is given in writing and signed by Lender.
No delay or omission on the part of Lender in exercising any right shall
operate as a waiver of such right or any other right.  A waiver by Lender of
a provision of this Agreement shall not prejudice or constitute a waiver of
Lender's right otherwise to demand strict compliance with that

                                     -20-

<PAGE>

provision or any other provision of this Agreement.  No prior waiver by
Lender, nor any course of dealing between Lender and Grantor, shall
constitute a waiver of any of Lender's rights or of any of Grantor's
obligations as to any future transactions.  Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent to subsequent instances
where such consent is required and in all cases such consent may be granted
or withheld in the sole discretion of Lender.  This provision cannot be
waived by the conduct, acts or agreement of Lender and Grantor.

11.12  ADVICE OF COUNSEL.  In entering into this Agreement, the Grantor
acknowledges that it has been fully advised and represented by its own legal
counsel and is fully familiar with all of the terms, conditions, restrictions
and covenants entered into herein.  In executing this Agreement, Grantor does
so relying wholly upon its own judgment and on the advice of its counsel of
its own independent selection, and has been in no way influenced whatsoever
in entering into this Agreement by any representation or statement of Lender
regarding the matters set forth herein.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS SECURITY
AGREEMENT, AND GRANTOR AGREES TO ITS TERMS.  THIS SECURITY AGREEMENT IS
EFFECTIVE ON THE DATE FIRST ABOVE WRITTEN.

GRANTOR:                                    LENDER:

PDS FINANCIAL CORPORATION,                  NEVADA STATE BANK,
a Minnesota corporation                     a Nevada corporation

By: /s/ Steven M. Des Champs                By: /s/ [ILLEGIBLE]
   -------------------------------             ------------------------------

Its: Chief Financial Officer                Its: Vice President
   -------------------------------             ------------------------------

PDS FINANCIAL CORPORATION-NEVADA,
a Nevada corporation

By: /s/ Steven M. Des Champs
   -------------------------------

Its: Chief Financial Officer
   -------------------------------

                                      -21-

<PAGE>

                              EXHIBIT "B"

                            ELIGIBLE CONTRACT

An Eligible Contract ("Contract") shall have these terms and conditions:

Evidence:  Each Contract shall be one of these:  (a) a full recourse
installment sales contract; (b) a full recourse finance or an operating lease.

Contract Parties:  Contracts with foreign entities or Contracts that are
subject to the Indian Gaming Regulatory Act shall not be permitted; and
contracts placed on maritime vessels shall not, at any time, exceed 20% of
the outstanding balance, in aggregate, of all the Advance Notes outstanding
under the Loan at the time of funding of any maritime contract.

Advance Values:

A) Installment Sales Contract(s):  The Advance Note funding such Contract(s)
shall not have an initial or subsequent outstanding balance or more than 90%
of the equipment value under the Contract(s) at all times.  Equipment value
shall be the equipment sales price excluding any sales or use tax, delivery
charges and installation charges.

B) Finance Lease(s):  The Advance Note funding such Contract(s) shall not
have an initial or subsequent outstanding balance of more than 90% of the
equipment value under the Contract(s) at all times.  Equipment value shall be
the capitalized cost to the lessee excluding any sales or use tax, delivery
charges and installation charges.

C) Operating Lease(s):  The Advance Note funding such Contract(s) shall not
have an initial or subsequent outstanding balance of more than 90% of the
equipment value under the Contract(s) at all times. (It is understood that
the corresponding depreciation schedule for the equipment under Contract(s)
is on a "straight-line" basis on Grantor's accounting records; and as such
may indicate a note balance in comparison to the equipment value of more than
90% during the first twelve months after initial funding).  The equipment
value shall be the capitalized cost to the lessee excluding any sales or use
tax, delivery charges, installation charges on any security deposits, after
depreciation.

Reporting:  The equipment values for each Contract shall be presented to
Lender in the form of a Borrowing Base Certificate at the initial point of
funding under the corresponding Advance Note as well as at the end of each
month thereafter as long as there is an outstanding balance under the Advance
Note.  In essence, there shall be a separate Borrowing Base Certificate for
each Advance Note vis-a-vis each Contract.  The 90% loan-to-value ratio shall
be maintained at all times with pay downs occurring as a result of early
expiration of the Contract, sale of equipment, return of equipment,
repurchase of the Contract or any delinquency exceeding 60 days on the stream
of payments to Grantor from the obligor or lessee.  The situation of a 60-day
delinquency on any part of the outstanding balance under any funded Contract
shall require a payoff the outstanding balance

                                      -1-

<PAGE>

of the delinquent balance directly by Grantor within 15 days after the 60 day
delinquency has occurred.  Failure of Grantor to pay off the outstanding
balance within the 15 days shall constitute an Event of Default.

Contract Review:  Prior to funding of each Advance Note Grantor shall submit
each Contract and all supporting documentation to Lender for review of
eligibility as per the following review criteria:

Review Criteria:

A) For Contracts with balances under $250,000.00:  There shall be no review
required as long as: (i) contract party is not in bankruptcy; and (ii)
Grantor has no knowledge of any pending or existing default by the contract
party nor any pending bankruptcy.

B) For Contracts with balances over $250,000.00: (i) Grantor shall provide
Lender with a summary of the transaction; (ii) Lender shall advise Grantor
within five (5) business days if the Contract is acceptable; and (iii)
Lender's approval acceptance of the Contract and willingness to fund shall be
valid for a 60-day period.

Contract Confirmation: Each funded Contract shall be subject to a "delivery
and acceptance" acknowledgment to Lender directly by the obligor.

                                     -2-
<PAGE>

                      CORPORATE RESOLUTION TO BORROW

I, THE UNDERSIGNED SECRETARY OF PDS FINANCIAL CORPORATION, AND PDS FINANCIAL
CORPORATION-NEVADA, (COLLECTIVELY, THE "CORPORATIONS"), HEREBY CERTIFY THAT
the Corporations are organized and existing under and by virtue of the laws
of the State of Minnesota, and Nevada, respectively as corporations for
profit, with their principal office at 6171 McLeod Drive, Las Vegas, Nevada
89120, and are duly authorized to transact business in the State of Nevada.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporations,
duly called and held on April 21, 1999, at which a quorum was present and
voting, or by other duly authorized corporate action in lieu of a meeting,
the following resolutions were adopted:

BE IT RESOLVED, that ANY ONE (1) of the following named officers, employees,
or agents of the Corporations, whose actual signatures are shown below:

<TABLE>
<CAPTION>
      NAME                         POSITION                  ACTUAL SIGNATURE
      ----                         --------                  ----------------
<S>                                <C>                       <C>
Johan P. Finley                    President                 /s/ Johan P. Finley
                                                             -------------------------

Steven M. Des Champs               Chief Financial Officer   /s/ Steven M. Des Champs
                                                             -------------------------

Joe S. Rolston IV                  Vice President            /s/ Joe S. Rolston IV
                                                             -------------------------

Lona M.B. Finley                   Secretary                 /s/ Lona M.B. Finley
                                                             -------------------------
</TABLE>

acting for and on behalf of the Corporations and as its act and deed be, and he
or she hereby is, authorized and empowered:

     BORROW MONEY.  To borrow from time to time from NEVADA STATE BANK
     ("Lender"), on such terms as may be agreed upon between the Corporations
     and Lender, such sum or sums of money as in his or her judgment should
     be borrowed, without limitation.

     EXECUTE NOTES.  To execute and deliver to Lender the promissory note or
     notes, or other evidence of credit accommodations of the Corporations,
     on Lender's forms, at such rates of interest and on such terms as may be
     agree upon, evidencing the sums of money so borrowed or any indebtedness
     of the Corporations to Lender, and also to execute and deliver to Lender
     one or more renewals, extensions modifications, refinancings,
     consolidations, or substitutions for one or more of the notes, any
     portion of the notes, or any other evidence of credit accommodations.

     GRANT SECURITY.  To mortgage, pledge, transfer, endorse, hypothecate, or
     otherwise encumber and deliver to Lender, as security for the payment of
     any loans or credit

                                       -1-
<PAGE>

     accommodations so obtained, any promissory notes so executed (including
     any amendments to or modifications, renewals, and extensions of such
     promissory notes), or any other further indebtedness of the Corporations
     to Lender at any time owing, however the same may be evidenced, any
     property now or hereafter belonging to the Corporations or in which the
     Corporations now or hereafter may have an interest, including without
     limitation all real property and all personal property (tangible or
     intangible) of the Corporations.  Such property may be mortgaged, pledged,
     transferred, endorsed, hypothecated, or encumbered at the time such loans
     are obtained or such indebtedness is incurred, or at any other time or
     times, and may be either in addition to or in lieu of any property
     theretofore mortgaged, pledged, transferred, endorsed, hypothecated, or
     encumbered.

     EXECUTE SECURITY DOCUMENTS.  To execute and deliver to Lender the forms
     of mortgage, deed of trust, pledge agreement, hypothecation agreement,
     and other security agreements and financing statements which may be
     submitted by Lender, and which shall evidence the terms and conditions
     under and pursuant to which such liens and encumbrances, or any of them,
     are given; and also to execute and deliver to Lender any other written
     instruments, any chattel paper, or any other Collateral, of any kind or
     nature, which he or she may in his or her discretion deem reasonably
     necessary or proper in connection with or pertaining to the giving of the
     liens and encumbrances.

     NEGOTIATE ITEMS.  To draw, endorse, and discount with Lender all drafts,
     trade acceptances, promissory notes, or other evidences of indebtedness
     payable to or belonging to the Corporations in which the Corporations
     may have an interest, and either to receive cash for the same or to
     cause such proceeds to be credited to the account of the Corporations
     with Lender, or to cause such other disposition of the proceeds derived
     therefrom as they may deem advisable.

     FURTHER ACTS.  In the case of lines of credit, to designate additional
     or alternate individuals as being authorized to request advances
     thereunder, and in all cases, to do and perform such other acts and
     things, to pay any and all fees and costs, and to execute and deliver
     such other documents and agreements, INCLUDING AGREEMENTS REQUIRING
     DISPUTES WITH LENDER TO BE SUBMITTED TO BINDING ARBITRATION FOR FINAL
     RESOLUTION AND WAIVING THE RIGHT TO TRIAL BY JURY, as he or she may in
     his or her discretion deem reasonably necessary or proper in order to
     carry into effect the provisions of these Resolutions.  The following
     person or persons currently are authorized, except as provided below, to
     request advances and authorize payments under the line of credit until
     Lender receives written notice of revocation of their authority: Johan
     P. Finley, President, Steven M. Des Champs, Chief Financial Officer, Joe
     Rolston, Vice President, and Lona M.B. Finely, Secretary.  All
     covenants regarding Eligible Contracts must be reviewed and approved by
     Lender before any advance request will be completed.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
Resolutions and performed prior to the passage of these Resolutions are
hereby ratified and approved, that these

                                       -2-
<PAGE>

Resolutions shall remain in full force and effect and Lender may rely on
these Resolutions until written notice of his or her revocation shall have
been delivered to and received by Lender.  Any such notice shall not affect
any of the Corporations' agreements or commitments in effect at the time
notice is given.

BE IT FURTHER RESOLVED, that the Corporations will notify Lender in writing
at Lender's address shown above (or such other addresses as Lender may
designate from time to time) prior to any (a) change in the name of the
Corporations, (b) change in the assumed business name(s) of the Corporations,
(c) change in the management of the Corporations, (d) change in the
authorized signer(s), (e) conversion of the Corporations to a new or
different type of business entity, or (f) change in any other aspect of the
Corporations that directly or indirectly relates to any agreements between
the Corporations and Lender.  No change in the name of the Corporations will
take effect until after Lender has been notified.

I FURTHER CERTIFY that the officers, employees, or agents named above are
duly elected, appointed, or employed by or for the Corporations, as the case
may be, and occupy the positions set opposite their names; that the foregoing
Resolutions now stand of record on the books of the Corporations; and that
the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever.  The Corporations have no corporate seal,
and therefore, no seal is affixed to this certificate.

IN TESTIMONY WHEREOF, I HAVE HEREUNTO SET MY HAND ON THIS 21ST DAY OF APRIL,
1999 AND ATTEST THAT THE SIGNATURES SET OPPOSITE THE NAMES LISTED ABOVE ARE
THEIR GENUINE SIGNATURES.

                                        CERTIFIED TO AND ATTESTED BY:

                                        By: /s/ Lona Finley
                                           ----------------------------------

                                        Its: Secretary
                                            ---------------------------------

                                      -3-
<PAGE>

                                  ADVANCE NOTE

Principal Amount: $_________  Interest Rate: __________  Date of Note: _________

     FOR VALUE RECEIVED, PDS FINANCIAL CORPORATION, a Minnesota corporation,
or, PDS FINANCIAL CORPORATION-NEVADA, a Nevada corporation 6171 McLeod Drive,
Las Vegas, Nevada 89120 (hereinafter "Borrower"), promises to pay NEVADA
STATE BANK, a Nevada corporation, 201 South Fourth Street, Las Vegas, Nevada
89101 (hereinafter "Lender") or order, in lawful money of the United States
of America, the principal amount of ___________________________
($___________), together with interest thereon at a fixed rate of interest
equal to ______ percent (______%), per annum, which interest rate is equal to
300 basis points over the 3-year LIBOR Interest Rate on the date of this
Advance Note, until paid in full. The LIBOR Interest Rate is an index which
is determined and announced by Lender to determine the interest rate charged.
It is not the lowest rate charged by Lender. The index is related to the
London Interbank Offered Rate but does not equal the London Interbank offered
rate. The LIBOR Interest Rate is not intended to serve any purpose or have
any meaning other than to provide an index to determine the interest rate to
be paid by Borrower.

     Borrower will pay this loan in _________ equal monthly principal and
interest payments of $__________ each. Borrower's first monthly payment is
due on ____________, and all subsequently monthly payments are due on the
same day of each month thereafter, with Borrower's final payment being due on
__________, which shall be in an amount of all outstanding principal and
interest due. The annual interest rate for this Note is computed on a 365/360
basis; that is, by applying the ratio of the annual interest rate over a year
of 360 days, multiplied by the outstanding principal balance, multiplied by
the actual number of days the principal balance is outstanding. Borrower will
pay Lender at Lender's address shown above or at such other place as Lender
may designate in writing.  Unless otherwise agreed or required by applicable
law, payments will be applied first to any unpaid collection costs and any
late charges, then to any unpaid interest, and any remaining amount to
principal.

     This Advance Note is executed and delivered pursuant to a Master
Revolving Line of Credit Promissory Note and a Security Agreement ("Security
Agreement") each dated ____________, executed between Lender and Borrower,
and repayment of this Advance Note shall be secured by the Collateral
described in the Security Agreement.

     All references herein to certain defined terms shall refer to those
defined terms contained in the Security Agreement, which are incorporated
into this instrument by reference.

     As additional security for this Advance Note, Lender has a lien on, a
continuing security interest in and a right of setoff at any time without
notice, against all property and deposit accounts under the control of Lender
which belong to Borrower or any other party to this Advance Note.

     In the event that (i) any amount due under this Advance Note is reduced
to judgment, (ii) Borrower is ten (10) days late in making any payment
provided in this Advance Note, or (iii) an Event of Default as defined in the
Security Agreement, occurs, Borrower shall be considered in

<PAGE>

default if any of the above are not cured within ten (10) days after the date
of written notice sent by Lender to Borrower at the address set forth herein
notifying Borrower of the default, the total of the unpaid balance of
principal and the accrued unpaid interest (past due interest being
compounded) shall then begin accruing interest at the rate stated above, plus
three percent (3.00%) per annum (the "Default Rate"), until such time as all
past due payments and accrued interest are paid. At that time, the interest
rate will revert to the rate stated above. Borrower acknowledges that the
effect of this Default Rate provision could operate to compound some of the
interest obligations due, and Borrower hereby expressly assents to such
compounding should it occur.

     Should the indebtedness represented by this Advance Note, or any part
hereof, be collected at law, in equity, or in any bankruptcy, receivership or
other court proceeding, or this Advance Note be placed in the hands of any
attorney for collection after default, Borrower agrees to pay, in addition to
the principal and interest due hereon, all reasonable attorney fees, plus all
other costs and expenses of collection and enforcement, including any fees
incurred in connection with such proceedings or collection of this Advance
Note and/or enforcement of the Lender's rights with respect to the
administration, supervision, preservation or protection of, or realization
upon, any property securing payment hereof.

     The failure of Lender to act or to exercise any right or remedy shall
not in any way affect or impair the obligation of Borrower to Lender, or
constitute a waiver by Lender of, or otherwise affect any of, Lender's rights
under this Advance Note, under any endorsement or guaranty of this Advance
Note or under any document or instrument evidencing any security for payment
of this Advance Note.

     The invalidity or unforceability of any one or more provisions of this
Advance Note shall in no way affect the other provisions.

     Borrower waives presentment, demand, protest and notice of nonpayment.

     All titles used in this Advance Note are intended solely for convenience
and reference; said titles shall not affect any terms, provisions, or
meanings of this Advance Note.

     The laws of the State of Nevada shall govern the validity, construction,
performance and effect of this Advance Note.

     ARBITRATION DISCLOSURES:

     1.  ARBITRATION IS FINAL AND BINDING ON THE PARTIES AND SUBJECT TO ONLY
         VERY LIMITED REVIEW BY A COURT.

     2.  IN ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN
         COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL.

                                       -2-
<PAGE>

     3.  DISCOVERY IN ARBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT.

     4.  ARBITRATORS ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL
         REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK
         MODIFICATION OF ARBITRATORS' RULINGS IS VERY LIMITED.

     5.  A PANEL OF ARBITRATORS MIGHT INCLUDE AN ARBITRATOR WHO IS OR WAS
         AFFILIATED WITH THE BANKING INDUSTRY.

     6.  IF YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR THE
         AMERICAN ARBITRATION ASSOCIATION.

         a. Any claim or controversy ("Dispute") between or among the parties
         and their assigns, including but not limited to Disputes arising out
         of or relating to this agreement, this arbitration provision
         ("arbitration clause"), or any related agreements or instruments
         relating hereto or delivered in connection herewith ("Related
         Documents"), and including but not limited to a Dispute based on or
         arising from an alleged tort, shall at the request of any party be
         resolved by binding arbitration in accordance with the applicable
         arbitration rules of the American Arbitration Association (the
         "Administrator"). The provisions of this arbitration clause shall
         survive any termination, amendment, or expiration of this agreement
         or related Documents. The provisions of this arbitration clause
         shall supersede any prior arbitration agreement between or among the
         parties. If any provision of this arbitration clause should be
         determined to be unenforceable, all other provisions of this
         arbitration clause shall remain in full force and effect.

         b. The arbitration proceedings shall be conducted in Las Vegas,
         Nevada, at a place to be determined by the Administrator. The
         Administrator and the arbitrator(s) shall have the authority to the
         extent practicable to take any action to require the arbitration
         proceeding to be completed and the arbitrator(s)' award issued
         within one hundred fifty (150) days of the filing of the Dispute
         with the Administrator. The arbitrator(s) shall have the authority
         to impose sanctions on any party that fails to comply with time
         periods imposed by the Administrator or the arbitrator(s), including
         the sanction of summarily dismissing any Dispute or defense with
         prejudice. The arbitrator(s) shall have the authority to resolve any
         Dispute regarding the terms of this agreement, this arbitration
         clause or Related Documents, including any claim or controversy
         regarding the arbitrability of any Dispute. All limitations periods
         applicable to any Dispute or defense, whether by statute or
         agreement, shall apply to any arbitration proceeding hereunder and
         the arbitrator(s) shall have the authority to decide whether any
         Dispute or defense is barred by a limitations period and, if so, to
         summarily enter an award dismissing any Dispute or defense on that
         basis. The doctrines of compulsory counterclaim, res judicata, and
         collateral

                                   -3-
<PAGE>

         estoppel shall apply to any arbitration proceeding hereunder so that
         a party must state as a counterclaim in the arbitration proceeding
         any claim or controversy which arises out of the transaction or
         occurrence that is the subject matter of the Dispute.  The
         arbitrator(s) may in the arbitrator(s)' discretion and at the
         request of any party: (1) consolidate in a single arbitration
         proceeding any other claim or controversy involving another party
         that is substantially related to the Dispute where that other party
         is bound by an arbitration clause with the Lender, such as
         borrowers, guarantors, sureties, and owners of collateral; (2)
         consolidate in a single arbitration proceeding any other claim or
         controversy that is substantially similar to the Dispute; and (3)
         administer multiple arbitration claims or controversies as class
         actions in accordance with the provisions of Rule 23 of the Nevada
         Rules of Civil Procedure or Rule 23 of the Federal Rules of Civil
         Procedure.

         c. The arbitrator(s) shall be selected in accordance with the rules
         of the Administrator from panels maintained by the Administrator. A
         single arbitrator shall have expertise in the subject matter of the
         Dispute. Where three arbitrators conduct an arbitration proceeding,
         the Dispute shall be decided by a majority vote of the three
         arbitrators, at least one of whom must have expertise in the
         subject matter of the Dispute and at least one of whom must be a
         practicing attorney. The arbitrator(s) shall award to the prevailing
         party recovery of all costs and fees (including attorneys' fees and
         costs, arbitration administration fees and costs, and arbitrator(s)'
         fees). The arbitrator(s), either during the pendency of the
         arbitration proceeding or as part of the arbitration award, also
         may grant provisional or ancillary remedies, including but not
         limited to an award of injunctive relief, foreclosure,
         sequestration, attachment, replevin, garnishment, or the appointment
         of a receiver.

         d. Judgment upon an arbitration award may be entered in any court
         having jurisdiction, subject to the the following limitation: the
         arbitration award is binding upon the parties only if the amount
         does not exceed Four Million dollars ($4,000,000.00); if the award
         exceeds that limit, either party may demand the right to a court
         trial. Such a demand must be filed with the Administrator within
         thirty (30) days following the date of the arbitration award; if
         such a demand is not made within that time period, the amount of
         the arbitration award shall be binding. The computation of the total
         amount of an arbitration award shall include amounts awarded for
         attorneys' fees and costs, arbitration administration fees and
         costs, and arbitrator(s)' fees.

         e. No provision of this arbitration clause, nor the exercise of any
         rights hereunder, shall limit the right of any party to: (1)
         judicially or non-judicially foreclose against any real or personal
         property collateral or other security; (2) exercise self-help
         remedies, including but not limited to repossession and setoff
         rights; or (3) obtain from a court having jurisdiction thereover any
         provisional or ancillary remedies, including but not limited to
         injunctive relief, foreclosure, sequestration, attachment, replevin,
         garnishment, or the appointment of a receiver. Such rights can be
         exercised

                                     -4-
<PAGE>

         at any time, before or during initiation of an arbitration
         proceeding, except to the extent such action is contrary to the
         arbitration award. The exercise of such rights shall not constitute
         a waiver of the right to submit any Dispute to arbitration, and any
         claim or controversy related to the exercise of such rights shall be
         a Dispute to be resolved under the provisions of this arbitration
         clause. Any party may initiate arbitration with the Administrator;
         however, if any party initiates litigation and another party
         disputes any allegation in that litigation, the disputing party -
         upon the request of the initiating party - must file a demand for
         arbitration with the Administrator and pay the Administrator's
         filing fee. The parties may serve by mail a notice of an initial
         motion for an order of arbitration.

         f. Notwithstanding the applicability of any other law to this
         agreement, the arbitration clause, or Related Documents between or
         among the parties, the Federal Arbitration Act, 9 U.S.C. Section 1
         ET SEQ., shall apply to the construction and interpretation of this
         arbitration clause.

     If there is a lawsuit, Borrower agrees upon Lender's request to submit
to the jurisdiction of the courts of Clark County, State of Nevada (INITIAL
HERE ________). Lender and Borrower hereby waive the right to any jury trial
in any action, proceeding, or counterclaim brought by either Lender or
Borrower against the other.

IN WITNESS WHEREOF, this Advance Note has been executed effective the date
and place above written.

"Borrower"

PDS FINANCIAL CORPORATION,     "OR"      PDS FINANCIAL CORPORATION-NEVADA,
a Minnesota corporation                  a Nevada corporation

By:                                      By:
   ---------------------------              --------------------------------
Its:                                     Its:
    ---------------------------              -------------------------------

Borrowers' Address:
6171 McLeod Drive
Las Vegas, Nevada 89120

                                      -5-<PAGE>

--------------------------------------------------------------------------------

                               MASTER LOAN AGREEMENT

                                    BY AND AMONG

                             PDS FINANCIAL CORPORATION

                          PDS FINANCIAL CORPORATION-NEVADA

                        PDS FINANCIAL CORPORATION-MISSISSIPPI

                                        AND

                     MILLER & SCHROEDER INVESTMENTS CORPORATION

--------------------------------------------------------------------------------

Drafted by:

Fredrikson & Byron, P.A.
1100 International Centre
900 Second Avenue South
Minneapolis, Minnesota 55402-3397

<PAGE>

                                MASTER LOAN AGREEMENT

     THIS AGREEMENT is made as of October __, 1999, by and among PDS FINANCIAL
CORPORATION, a Minnesota corporation ("PDS"), PDS FINANCIAL CORPORATION-NEVADA,
a Nevada corporation ("PDS-Nevada") and PDS FINANCIAL CORPORATION-MISSISSIPPI, a
Mississippi corporation ("PDS-Mississippi") (PDS, PDS-Nevada and PDS-Mississippi
are jointly and severally, the "Borrower") and MILLER & SCHROEDER INVESTMENTS
CORPORATION, a Minnesota corporation ("M&S"), and certain other participating
institutions identified in the Participation Agreements among M&S and the
participants (M&S and the participants being collectively, the "Lender").

                                      RECITALS

     A.   The Borrower has requested that the Lender make available to the
Borrower a multiple advance credit facility in an aggregate principal amount of
Two Million Dollars ($2,000,000) (the "Credit Facility") evidenced by a
Promissory Note dated the date hereof from the Borrower in favor of the Lender
(the "Note") and secured by a Master Security Agreement dated the date hereof
between the Borrower and the Lender (as such Master Security Agreement may be
amended from time to time, the "Security Agreement").

     B.   The Lender is willing to make advances under the Credit Facility (each
a "Loan") to the Borrower upon the terms and subject to the conditions set forth
herein.

     C.   The Lender has entered or will enter into one or more participation
agreements (the "Participation Agreements") pursuant to which the participants
named therein agree to participate in the Credit Facility.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1.   DEFINITIONS.

     "Addendum and Assignment" is defined in Section 1 of the Security
Agreement.

     "Capitalized Cost to Lessee" means the fair market value of the Equipment
as of the date of the Contract as reasonably determined by Borrower in
accordance with FASB 13, excluding any charges for insurance, maintenance,
delivery and sales or use taxes.

     "Closing Date" means the date hereof.

     "Collateral" is defined in Section 2 of the Security Agreement.

     "Contract" means any Contract which is identified in an Addendum and
Assignment, and which meets the eligibility criteria set forth in EXHIBIT A
attached hereto.

                                          1
<PAGE>

     "Delinquent Contract" means any Contract where payment in full of all
installments then due have not been made within 30 days of the due date or where
any other material default has occurred and such default has continued for a
period of at least 30 days.

     "Equipment" is defined in Section 1 of the Security Agreement.

     "Equipment Value" means, (i) with respect to any Contract which is an
installment sales contract or installment note, the sales price of the Equipment
subject to such Contract, EXCLUDING sales or use tax, delivery charges,
installation charges and any security deposit that is or will be applied as a
credit against the first or last installment payment in whatever form collected;
(ii) with respect to any Contract which is a finance lease, the Capitalized Cost
to Lessee, EXCLUDING sales or use tax, delivery charges, installation charges
and any security deposit that is or will be applied as a credit against the
first or last rent payment; and (iii) with respect to any Contract which is an
operating lease, the Capitalized Cost to Lessee, EXCLUDING sales or use tax,
delivery charges, installation charges and any security deposit that is or will
be applied as a credit against the first or last rent payment.

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

     "Loan Documents" means this Agreement, the Note, the Security Agreement,
the Addendum and Agreement, the Repossession Agreement, the UCC-1 and UCC-3
Financing Statements, and all other documents, instruments or agreements
(excluding the Contracts) necessary to give effect to this Agreement and the
transaction contemplated hereby.

     "Maturity Date" means November 1, 2003.

     "Obligor" means, with respect to any Contract, the person identified on a
Contract as the lessee or purchaser.

     "Repossession Agreement" means that certain Repossession Agreement among
the Borrower and the Lender, dated the date hereof, as it may be amended from
time to time.

     "Required Payment Amount" means as of any Installment Payment Date (as
defined in the Note), that amount equal to the monthly amount necessary to fully
amortize the then outstanding principal balance and accrued interest under the
Note in equal monthly installments by the Maturity Date, together with payment
of the Servicing Fee described in the Note.

     2.   THE CREDIT FACILITY.  Subject to and upon the terms and conditions
hereof, and in reliance upon the representations and warranties of the Borrower
herein, the Lender will make Loans to the Borrower under the Credit Facility
from time to time from the date hereof until November 1, 2003, at such time and
in such amount as to each Loan as the Borrower may request up to but not
exceeding an aggregate principal amount of $2,000,000 for the purpose of funding
Contracts to certain casino operators, and to pay all related transaction costs.
The Credit

                                          2
<PAGE>

Facility will be advanced based on multiple Advance Requests (as hereafter
defined) but will not be a revolving credit facility and the Borrower may not
borrow, repay and reborrow amounts advanced.  The Advance amount of any Loan
shall not exceed ninety percent (90%) of the Equipment Value of any Contract(s)
being financed therewith and no more than $1,750,000 will be advanced on an
individual Contract, and in no event shall the aggregate principal amount of
Loans, the proceeds of which are used to finance Contracts where the Equipment
subject to such Contracts is located on ships or is subject to maritime laws,
exceed twenty-five percent (25%) of the aggregate principal amount of all Loans.
The Loans under the Credit Facility shall be evidenced by a single Note which
will be made payable to the order of the Lender.  The Credit Facility shall bear
interest at the rate of nine and three quarters percent (9.75%) per annum.  The
Credit Facility shall be payable over a forty-eight (48)-month term.  Commencing
December 1, 1999 and continuing on each Installment Payment Date (as defined in
the Note) thereafter, the Borrower shall pay installments of principal and
interest equal to the Required Payment Amount; provided that the unpaid
principal balance of the Note, interest accrued thereon and all charges payable
pursuant to the terms of the Note shall become due and payable in full on the
earlier to occur of the following: (i) the Maturity Date, (ii) the occurrence of
an Event of Default and (iii) the Installment Payment Date (as defined in the
Note) next following the Installment Payment Date on which the unpaid principal
balance of the Note declines below $100,000.  Any prepayments made on any
Contract shall be used to prepay the Credit Facility to the extent required by
Section 3(t) of the Security Agreement.  The Note may be prepaid in whole or in
part at any time, provided that any prepayment shall be made on fifteen (15)
days' advance written notice to the Lender and shall be made only on a regularly
scheduled Installment Payment Date and shall be made in denominations of no less
than $100,000 or provide for payment in full of the outstanding balance of the
Note.  After a prepayment, the then outstanding principal balance and accrued
interest will be reamortized over the period remaining between the date of
prepayment and the Maturity Date.  All amounts paid in respect of the Note shall
be applied in accordance with Section 5(b) of the Security Agreement.  All
payments and prepayments of the principal of and interest on the Loan shall be
made by the Borrower to the Lender pursuant to the terms of the Note and other
Loan Documents, and shall be made by wire transfer in accordance with Lender's
instructions.

     3.   BORROWING PROCEDURE AND DISBURSEMENT OF LOAN PROCEEDS.  On the date
hereof, the Lender has disbursed to the Borrower $____________ for payment of
closing costs for the Credit Facility.  The balance of the Credit Facility in
the amount of $_____________ will be advanced under the Note and deposited in an
interest bearing account with the Lender (the "Escrow).  Each time the Borrower
desires to obtain a disbursement from the Escrow, the Borrower shall submit to
the Lender a written advance request, duly signed by the Borrower, substantially
in the form of EXHIBIT B attached hereto (each an "Advance Request").  Each
Advance Request shall be submitted by the Borrower to the Lender at least five
(5) business days prior to the date of the requested advance.  Each Advance
Request shall specify (i) the advance date (which shall be a business day), (ii)
the Equipment being acquired or financed therewith and the Equipment Value
thereof, (iii) the terms of the Contract(s) to which such Equipment will be sold
or leased, and (iv) the amount of the requested Loan, and shall set forth the
information requested therein.  Unless the Lender reasonably determines any
applicable condition specified in this Agreement has not been satisfied, the
Lender will make the amount of the requested Loan available to the Borrower at
the Lender's principal office in Minneapolis, Minnesota not later

                                          3
<PAGE>

than 5:00 p.m., Minneapolis time, on the date requested.  The Borrower shall be
obligated to repay all Loans notwithstanding the fact that the person requesting
the same was not in fact authorized to do so.  The proceeds of each Loan will be
disbursed to the Borrower upon delivery to the Lender of the following documents
or other items:

          a.   ITEMS NECESSARY AT TIME THIS AGREEMENT IS EXECUTED:

               (1)  this Agreement, the Note, the Security Agreement, and the
Repossession Agreement, each executed by the Borrower in favor of the Lender;

               (2)  resolutions of the executive committees of the boards of
directors of each of the Borrowers, certified by an officer of each of the
Borrowers, authorizing the execution, delivery and performance of the Loan
Documents and related documents and the transactions contemplated thereby;

               (3)  evidence in form and substance acceptable to the Lender that
the Borrower has all licenses necessary to carry on its business and to enable
it to perform its obligations under the Repossession Agreement, including
without limitation all licenses required under Nevada and Mississippi gaming law
for the operation of the Borrower's business;

               (4)  Articles of Incorporation of PDS, certified by the Minnesota
Secretary of State, a copy of the Bylaws of PDS, certified by an officer of PDS,
and an unqualified certificate of good standing for PDS issued by the Minnesota
Secretary of State;

               (5)  Articles of Incorporation of PDS-Nevada, certified by the
Nevada Secretary of State, a copy of the Bylaws of PDS-Nevada, certified by an
officer of PDS-Nevada, and an unqualified certificate of good standing for PDS-
Nevada issued by the Nevada Secretary of State;

               (6)  Articles of Incorporation of PDS-Mississippi, certified by
the Mississippi Secretary of State, a copy of the Bylaws of PDS-Mississippi,
certified by an officer of PDS-Mississippi, and an unqualified certificate of
good standing for PDS-Mississippi issued by the Mississippi Secretary of State;

               (7)  UCC searches with respect to each Borrower;

               (8)  an opinion of counsel to PDS as to the due organization and
good standing of PDS, the due authorization, execution and delivery by PDS of
the Loan Documents, the validity and enforceability of the Loan Documents, and
as to such other matters regarding PDS and the transactions and documents
contemplated hereby as the parties may agree;

               (9)  an opinion of counsel to PDS-Nevada as to the due
organization and good standing of PDS-Nevada, the due authorization, execution
and delivery by PDS-Nevada of the Loan Documents, the validity and
enforceability of the Loan Documents, the availability of and basic elements of
the procedure to perfect a purchase money security interest

                                          4
<PAGE>

under Nevada state law, and as to Nevada gaming law matters and such other
matters regarding PDS-Nevada and the transactions and documents contemplated
hereby as the parties may agree;

               (10) an opinion of counsel to PDS-Mississippi as to the due
organization and good standing of PDS-Mississippi, the due authorization,
execution and delivery by PDS-Mississippi of the Loan Documents, the validity
and enforceability of the Loan Documents, the availability of and basic elements
of the procedure to perfect a purchase money security interest under Mississippi
state law, and as to Mississippi gaming law matters and such other matters
regarding PDS-Mississippi and the transactions and documents contemplated hereby
as the parties may agree;

               (11) a certificate of an officer of each Borrower to the effect
that the representations, warranties and covenants of such Borrower contained
herein and in the other Loan Documents are true and correct as of the date of
such documents and as of the date of delivery of the certificate;

               (12) certificates of insurance and insurance endorsements
required hereby;

               (14) a certificate by each Borrower regarding Year 2000 computer
compliance.

          b.   BORROWER ITEMS NECESSARY BEFORE ANY LOAN:

               (1)  an Addendum and Assignment and UCC-1 and UCC-3 Financing
Statements, each executed by the Borrower in favor of the Lender with respect to
the Contract(s) being financed with the Loan, and an assignment of the
Borrower's interest as secured party in the UCC-1 Financing Statement as to the
related Equipment;

               (2)  with respect to each of the Contracts in which Borrower is
granting a security interest to the Lender pursuant to the Addendum and
Assignment, the executed original of each such Contract, with all collateral
schedules, and copies of such additional instruments, opinions, documents,
certificates, searches and reports as the Borrower has obtained in connection
with such Contract;

               (3)  a Notice, Consent and Acknowledgment of Assignment with
respect to the Contract(s) being financed with the Loan, duly executed by the
Borrower;

               (4)  updated UCC searches with respect to each Borrower who is
requesting a loan on a Contract owned by that Borrower;

               (5)  Except as to financing statements in favor of the Lender,
UCC-3 financing statements terminating security interests filed with respect to
the Contracts and the Equipment, including without limitation a release executed
by U.S. Bank (or any other creditor holding a blanket lien) with respect to the
Contracts and the Equipment;

                                          5
<PAGE>

               (6)  the first time a Loan is requested regarding a Contract
(other than an operating lease) where the Equipment is located in a jurisdiction
(other than Nevada), an opinion of counsel to PDS as to the availability of and
basic elements of the procedure to perfect a purchase money security interest
under the law of that jurisdiction;

               (7)  certificates of insurance and insurance endorsements
required hereby;

               (8)  all other items as may be required pursuant to the
eligibility criteria set forth in EXHIBIT A attached hereto.

          c.   OBLIGOR ITEMS NECESSARY BEFORE ANY LOAN:

               (1)  a Notice, Consent and Acknowledgment of Assignment duly
executed by the Obligor under each Contract being financed with the Loan;

               (2)  UCC-1 Financing Statements, executed by the Obligor in favor
of the Borrower and assigned to the Lender (or with respect to an installment
note, assigned to Lender and the other holder(s) of note(s) evidencing the same
loan on a joint and several basis) with respect to the Contract(s) being
financed with the Loan, and the related Equipment and releases, terminations or
other appropriate filings, if any;

               (3)  certificates of insurance and insurance endorsements
required hereby;

               (4)  all other items as may be required pursuant to the
eligibility criteria set forth in EXHIBIT A attached hereto.

     4.   REPRESENTATIONS AND WARRANTIES OF THE BORROWER.  In order to induce
the Lender to advance the proceeds of each Loan, the Borrower hereby represents
and warrants to the Lender as follows:

          a.   PDS is a corporation duly organized and validly existing under
the laws of the State of Minnesota, PDS-Nevada is a corporation duly organized
and validly existing under the laws of the State of Nevada and PDS-Mississippi
is a corporation duly organized and validly existing under the laws of the State
of Mississippi.  The Borrower is duly qualified to do business and is in good
standing in every other jurisdiction wherein the nature of its business or the
character of its properties makes such qualification necessary and where failure
to be so qualified and in good standing, in the aggregate, would not have a
material adverse effect on the business, properties, operations, assets,
liabilities or condition (financial or otherwise) of the Borrower.  The Borrower
has all requisite power and authority to carry on its business as now conducted
and as presently proposed to be conducted.

          b.   The Borrower has full power and authority to execute and deliver
the Loan Documents and to incur and perform its obligations hereunder and
thereunder.  The execution, delivery and performance by the Borrower of the Loan
Documents and any and all other

                                          6
<PAGE>

documents and transactions contemplated hereby or thereby, have been duly
authorized by all necessary corporate action, will not violate any provision of
law or of the Articles of Incorporation or the Bylaws of the Borrower or result
in the breach of, constitute a default under, or create or give rise to any lien
under, any indenture or other agreement or instrument to which the Borrower is a
party or by which the Borrower or its property may be bound or affected.  The
Loan Documents have been executed and delivered to the Lender by an appropriate
officer of the Borrower who is authorized by and specified in the Borrower's
Bylaws to execute and so deliver such agreements.  The Borrower is not in
violation of or subject to any contingent liability on account of any statute,
law, rule, ordinance, order, writ, injunction or decree to the extent that such
violation or contingent liability would result in a material adverse effect on
the condition (financial or otherwise), business, properties, or assets of
Borrower.  As used herein, material adverse effect means a violation or
contingent liability that would result in a cost or loss to Borrower of $500,000
or more.

          c.   The Loan Documents constitute the legal, valid and binding
obligations of the Borrower, enforceable in accordance with their respective
terms.

          d.   Except as set forth in EXHIBIT C hereto, there is no action, suit
or proceeding pending or, to the knowledge of the Borrower, threatened against
or affecting the Borrower, or any basis therefor, which, if adversely
determined, would have a material adverse effect on the condition (financial or
otherwise), business, properties or assets of the Borrower or which would
question the validity of the Loan Documents or any instrument, document or other
agreement related hereto or required hereby, or impair the ability of the
Borrower to perform its obligations under the foregoing agreements.

          e.   The Borrower possesses adequate licenses, permits, franchises,
patents, copyrights, trademarks and trade names, or rights thereto (collectively
"Licenses"), to conduct its business substantially as now conducted and as
presently proposed to be conducted.  Without limiting the foregoing, PDS-Nevada
possesses all licenses required under Nevada gaming law for the operation of
PDS-Nevada's business.  Without limiting the foregoing, PDS-Mississippi
possesses all licenses required under Mississippi gaming law for the operation
of PDS-Mississippi's business.  Each License is validly issued and in full force
and effect.  Borrower has fulfilled and performed all of its obligations with
respect thereto.  No event has occurred which: (1) results in, or after notice
or lapse of time or both would result in, suspension, surrender, failure to
renew, revocation or termination of any material License; or (2) materially and
adversely affects or in the future may (so far as Borrower can now reasonably
foresee) materially adversely affect any of the rights of Borrower thereunder.
Borrower is not a party to and the Borrower does not have any knowledge of any
notice of violation, order or complaint issued by or before any court or
regulatory body or of any other proceedings which could in any manner result in
suspension, surrender, failure to renew, revocation or termination of any
material License or otherwise threaten or adversely affect the validity or
continued effectiveness of the Licenses of Borrower.  Borrower has no reason to
believe that any Licenses will not be renewed in the ordinary course.  Borrower
has fully cooperated with every regulatory body having jurisdiction over any of
the Licenses or the activities of Borrower with respect thereto, and Borrower
has filed all material reports, applications, documents, instruments, and
information

                                          7
<PAGE>

required to be filed by it pursuant to applicable laws, rules and regulations.
Borrower has posted all required bonds required under its Licenses.

          f.   The Borrower owns the Contracts constituting part of the
Collateral, subject to no prior security interests, assignments, liens or
encumbrances.  The Lender has a valid first perfected security interest in the
Collateral subject to no prior security interests or encumbrances.  The security
interest of the Lender has been recorded with the appropriate recording offices,
and the Lender's security interest in the Equipment is a first perfected
security interest, subject only to the rights of the Obligors and the Borrowers
under the Collateral.

          g.   No director, shareholder, officer, employee of or consultant to
the Borrower is prohibited by law, regulation, contract or the terms of any
license, franchise, permit, certificate, approval or consent from participating
in the business of the Borrower as director, shareholder, officer, employee of
or as consultant to the Borrower.

          h.   Except with respect to reporting and compliance requirements of
the regulatory gaming authorities in the jurisdictions in which either of the
Borrowers or the Obligors conducts business, no consent, approval, order or
authorization of, or registration, declaration or filing with, or notice to, any
governmental authority or any third party is required in connection with the
execution and delivery of the Loan Documents or any of the agreements or
instruments contemplated thereby to which the Borrower is a party, or in
connection with the carrying out or performance of any of the transactions
required or contemplated hereby or thereby or, if required, such consent,
approval, order or authorization has been obtained or such registration,
declaration or filing has been accomplished or such notice has been given prior
to the date hereof.

          i.   The Borrower has filed all local, state, federal and other tax
returns required to be filed by it and either paid all taxes shown thereon to be
due, including interest and penalties, which are not being contested in good
faith and by appropriate proceedings, or provided adequate reserves for payment
thereof.  The Borrower has no information or knowledge of any objections to or
claims for additional taxes in respect of local, state and federal or other
income or excess profits tax returns of the Borrower for prior years.

          j.   The Borrower does not intend to, or believe that it will, incur
debts beyond its ability to pay such debts as they mature.

          k.   All financial and other information provided to the Lender by or
on behalf of the Borrower in connection with the Borrower's request for the Loan
fairly presented the financial condition of the Borrower as of the dates thereof
and disclosed fully all liabilities of the Borrower.  Since the date of such
financial and other information, there has been no material adverse change in
the financial condition of the Borrower.

          l.   Each qualified retirement plan of the Borrower, if any, presently
conforms to and is administered in a manner consistent with the Employee
Retirement Income Security Act of 1974.

                                          8
<PAGE>

          m.   As of the date hereof, no Contract is a Delinquent Contract.

          n.   The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System),
and no proceeds of the Loan will be used to purchase or carry any margin stock
or to extend credit to others for the purpose of purchasing or carrying any
margin stock.

          o.   No proceeds of the Loan will be used to acquire any security in
any transaction which is subject to Sections 13 and 14 of the Securities
Exchange Act of 1934.

          p.   The transaction evidenced by this Agreement does not violate any
law pertaining to usury or the payment of interest on loans.

          q.   The Borrower will use the proceeds of the Loan solely for lawful
and proper corporate purposes of the Borrower.

     5.   AFFIRMATIVE COVENANTS.  The Borrower covenants and agrees as follows:

          a.   The Borrower will use the proceeds of each Loan solely for the
financing of Contracts to certain casino operators.

          b.   The Borrower will pay all of its taxes (including payroll and
withholding taxes), levies, assessments and governmental charges prior to the
time when any penalties or interest accrue, unless contested in good faith with
an adequate reserve for payment.

          c.   The Borrower will continue the conduct of its business, maintain
its corporate existence, maintain all rights, licenses and franchises necessary
or desirable in the normal conduct of its business, comply with all rules,
regulations and orders of any governmental or other authority or agency and all
applicable federal and state laws and regulations.  Without in any way limiting
the generality of the foregoing, the Borrower will maintain all licenses
required under Nevada gaming law for the operation of Borrower's business, and
will timely file all reports as the Nevada Gaming Commission may from time to
time require or request.  Without in any way limiting the generality of the
foregoing, the Borrower will maintain all licenses required under Mississippi
gaming law for the operation of Borrower's business, and will timely file all
reports as the Mississippi Gaming Commission may from time to time require or
request.

          d.   The Borrower shall use best efforts to cause the Obligors to
maintain and service the Equipment so as to keep such Equipment in good
operating condition, ordinary wear and tear from normal use excepted.

          e.   The Borrower will deliver to the Lender:

               (1)  Within one hundred twenty (120) days after the end of each
fiscal year, the consolidated audited financial statements of the Borrower for
such fiscal year, certified

                                          9
<PAGE>

(without qualification as to the opinion or scope of examination) by a firm of
independent certified public accountants selected by the Borrower and acceptable
to the Lender.

               (2)  Within forty-five (45) days after the end of each fiscal
quarter, consolidated quarterly financial statements of the Borrower.

               (3)  Upon the reasonable request of the Lender, all backup data
regarding the Contracts and the Equipment.

               (4)  Within thirty (30) days after the end of each calendar
quarter, a Contract Status report setting forth the information set forth on
EXHIBIT D hereto.

               (5)  As soon as practicable, but in any event within thirty (30)
days after the end of each calendar month, a certificate of the Chief Financial
Officer (or Chief Accounting Officer or other officer of Borrower serving in
such capacity) of the Borrower substantially in the form of EXHIBIT E hereto
stating (i) whether or not such officer has knowledge of the occurrence of any
Event of Default under any of the Loan Documents or any event which with the
giving of notice or the passage of time would constitute an Event of Default
under any of the Loan Documents, other than Events of Default previously
reported and remedied and, if so, stating in reasonable detail the facts with
respect to such Event of Default, and (ii) that the Borrower is in compliance
with each of the covenants set forth in Sections 5 and 6 of this Agreement.
Without limiting the foregoing, the certificate shall specifically state (A) the
aggregate number and aggregate unpaid payments of Delinquent Contracts, and (B)
the aggregate amount of prepayments on the Contracts in such month.

               (6)  Copies of any and all reports, filings, financial statements
or other information as and when filed with the United States Securities and
Exchange Commission and with the Nevada Gaming Commission, and the Mississipi
Gaming Commission (only in connection with the Loan, the Contracts, the
Equipment, the Lender or its participants), and copies of all information and
notices as and when delivered to the Borrower's shareholders.

               (7)  Promptly upon becoming aware thereof, notice of any default
with respect to any other indebtedness, whether owed to the Lender or any other
creditor.

          f.   Upon reasonable notice of not less than 48 hours, the Borrower
will permit any officer, employee, attorney or accountant for the Lender to
review, make extracts from, or copy any and all corporate and financial books
and records of the Borrower relating to the Contracts at all times during
ordinary business hours, to send and discuss with Obligors requests for
verification of amounts owed to the Borrower if Lender has a reasonable basis
for believing such a verification is necessary, and to discuss the affairs of
the Borrower with any of its officers.  After the occurrence of an Event of
Default, the rights to review and copy books and records shall not be limited to
those relating to the Contracts but will be all of the Borrower's books and
records.

          g.   The Borrower will provide the Lender with an insurance
certificate, issued by Obligor's insurer, in form and content and from an
insurer acceptable to the Lender,

                                          10
<PAGE>

providing for ten (10) days' written notice to the Lender of cancellation or
non-renewal (without qualification), and evidencing the following categories and
amounts of coverage:

               (1)  Comprehensive public liability coverage for the Obligor.

               (2)  Comprehensive physical damage insurance for the full
insurable value of the Equipment, naming the Lender as loss payee, as their
interests may appear.

               (3)  If circumstances warrant, warehouse and transportation
insurance on the Equipment which is being stored or transported, as the case may
be, for the full insurable value of the Equipment naming the Lender as loss
payee, as their interests may appear.

               (4)  With respect to any Equipment which is located on any ship
or which is otherwise subject to any maritime laws, shipwreck, piracy,
abandonment and hull insurance in such amounts as the Lender may request, with a
lender's loss payable endorsement provided to the Lender.

          h.   The Borrower will notify the Lender promptly of (i) any material
disputes or claims by any Obligor; (ii) any Equipment returned to or recovered
by the Borrower or damaged, destroyed or stolen from the Borrower or an Obligor;
(iii) any change in the persons constituting the directors or officers of the
Borrower; (iv) the occurrence of any breach, default or event of default by or
attributable to the Borrower under this Agreement or any of the Loan Documents;
(v) the occurrence of any breach, default or event of default by or attributable
to any Obligor under the Obligor's Contract; and (vi) any event which may have
any effect on the enforceability of any lien in favor of the Lender, or on the
ability of the Borrower or the Obligor to perform its obligations under the Loan
Documents or any Contract, as the case may be.

          i.   The Borrower will notify the Lender in writing promptly after the
commencement of any lawsuit, legal proceeding or proceedings before any
governmental or regulatory agency against the Borrower which would have a
material adverse effect on the Loan, the Contracts, the Equipment, the Lender or
its participants or the business of Borrower.  As used herein, material adverse
effect means a lawsuit or proceeding involving a potential cost or loss to
Borrower of $500,000 or more.

          j.   PDS will maintain the following financial covenants:

               (i)  At all times, a Tangible Net Worth in an amount not less
than $8,000,000 plus 15% of positive Net Income earned after January 1, 1999.
As used herein, "Tangible Net Worth" means, at a particular date, (a) the
aggregate amount of assets of PDS as may be properly classified as such in
accordance with GAAP excluding such other assets as are properly classified as
intangible assets under GAAP, less (b) the aggregate amount of all liabilities
of PDS.  As used herein, "Net Income" means, with respect to any period, the
aggregate of the net income of PDS for such period determined in accordance with
GAAP.

               (ii) A Cash Flow Ratio not less than 1.5 to 1.0 as of the end of
each calendar month measured on a trailing twelve (12) month basis.  As used
herein, "Cash Flow

                                          11
<PAGE>

Ratio" means the ratio of (a) Net Income PLUS Interest Expense, income taxes,
depreciation and amortization TO (b) Interest Expense PLUS Dividends.

               As used herein, "Dividends"  means any payment for the purchase,
redemption or acquisition  for value of any shares of PDS's stock, or the
payment of any dividends thereon or any distribution on, or payment on account
of the purchase, redemption, defeasance or other acquisition  or retirement for
value of any shares of PDS's stock or set aside of funds for any such purpose.

               As used herein, "Interest Expense" means the total scheduled
interest expense (including any default rate of interest if then applicable)
whether paid or accrued, on Indebtedness.

               As used here, in "Indebtedness" means without duplication, all
obligations, contingent or otherwise, which in accordance with GAAP should be
classified upon the PDS's balance sheet as liabilities, but in any event
including the following (whether or not they  should be classified as
liabilities upon such balance sheet):  (a) obligations secured by any mortgage,
pledge, security interest, lien, charge or other encumbrance existing on
property owned or acquired subject thereto, whether or not the obligation
secured thereby shall have been assumed and whether or not the obligation
secured is the obligation of the owner or another party; (b) any obligation on
account of deposits or advances; (c) any obligation for the deferred purchase
price of any property or services, except trade accounts payable, (d) any
obligation as lessee under any capitalized lease; (e) all guaranties,
endorsements and other contingent obligations respecting Indebtedness of others;
and (f) undertakings or agreements to reimburse or indemnify issuers of letters
of credit.

          k.   With respect to any Delinquent Contract, the Borrower shall
comply with Section 7 hereof.

          l.   The Borrower will keep full and complete books of record and
accounts for itself and other records reflecting the results of the Borrower's
operations, all in accordance with GAAP.

          m.   At any time upon request from the Lender after the occurrence of
an Event of Default, the Borrower will cause the Obligors under the Contracts
which constitute a part of the Collateral to be notified to make payment
directly to the Lender, and the Lender shall be entitled to take control of any
proceeds thereof.

          n.   After the occurrence of an Event of Default, all proceeds of
Collateral not released from the lien of the Security Agreement pursuant to
Section 3 of the Security Agreement, including without limitation, proceeds from
the sale or re-leasing of the Equipment, proceeds of insurance and all other
unscheduled recoveries, shall be paid by the Borrower into a collateral account
administered by the Lender in the manner described in Section 5 of the Security
Agreement.

                                          12
<PAGE>

          o.   In the event any Equipment has been repossessed, the Borrower
shall pay promptly to the Lender the proceeds of the sale or other disposition
of the Equipment, together with a cash payment equal to the amount necessary to
fully pay the unamortized amount of the loan proceeds advanced with respect to
Contract(s) relating to such Equipment.

          p.   In the event any Equipment is damaged, destroyed, lost or stolen,
the Borrower shall pay promptly to the Lender the proceeds of any insurance on
the Equipment, together with a cash payment equal to the amount necessary to
fully pay the unamortized amount of the loan proceeds advanced with respect to
Contract(s) relating to such Equipment.

          q.   The Borrower shall service the Contracts which form a part of the
Collateral in accordance with the industry standards applicable to servicers of
such contracts, and the Borrower shall have ultimate responsibility for such
servicing.  If the Borrower shall fail in any material respect in the
performance of its duties hereunder, and such failure shall continue for thirty
(30) days, the Lender shall appoint a servicer, chosen at the discretion of the
Lender, to perform such duties, and the Borrower shall promptly make available
to such servicer all books and records in any and all formats with respect to
the Collateral, and shall also make available to the servicer without fee any
and all computer software necessary to service the Collateral.  Fees of the
servicer shall be paid in the manner described in the Security Agreement.

          r.   The Borrower will provide notice to all applicable gaming
authorities, to the extent required by the applicable gaming law, of the
Lender's security interest in the Contracts and the Equipment.

          s.   After the occurrence of an Event of Default and not later than
two (2) days prior to a date on which a payment is due under the Note, the
Borrower shall provide the Lender with a detailed report with respect to all
monies, if any, deposited in the collateral account pursuant to Section 5 of the
Security Agreement, including amounts paid in respect of Payments on all
Contracts (as due and as a prepayment) and amounts paid in respect of interest.
The report shall be prepared in such manner as may be required by the Lender for
purposes of properly applying funds in accordance with Section 5(b) of the
Security Agreement, if applicable.

          t.   With respect to each of the Contracts, the Borrower shall:  (i)
perform all acts necessary to preserve the validity and enforceability of each
such Contract; (ii) take all actions reasonably necessary to assist Lender in
collecting when due all amounts owing to Borrower with respect to each such
Contract; (iii) at all times keep accurate and complete records of performance
by Borrower and the Obligor under each such Contract; and (iv) upon request of
Lender verify with the Obligor under each Contract the payments due to Borrower
under such Contract, except that (A) prior to the occurrence of an Event of
Default or an event which with the passage of time or the giving of notice, or
both, would be an Event of Default, such requests shall not occur any more
frequently than once each year and (B) after the occurrence and during the
continuance of an Event of Default or an event which with the passage of time or
the giving of notice, or both, would be an Event of Default such requests may
occur as often as Lender shall require.

                                          13
<PAGE>

          u.   The Borrower will store the Equipment (which is not in the
possession of an Obligor) only in the Borrower's warehouses or in bonded
warehouses.

     6.   NEGATIVE COVENANTS.  The Borrower covenants and agrees that, except
with the prior written approval of the Lender:

          a.   The Borrower will not create, incur or cause to exist any
mortgage, security interest, encumbrance, lien or other charge of any kind upon
any of the Collateral, whether now owned or hereafter acquired, except for the
security interests created by the Loan Documents.  Except as permitted by the
Security Agreement, the Borrower will not sell, dispose of, lease, mortgage,
assign, sublet or transfer all or any part of the Borrower's right, title or
interest in or to all or any portion of the Collateral.

          b.   The Borrower will not substantially alter the nature of the
business in which it is engaged, or engage in any line of business substantially
different from its current business.

          c.   Following the occurrence of and during the continuance of an
Event of Default, the Borrower will not declare or pay any distributions or
purchase or redeem any of its capital stock, or otherwise distribute any
property on account of its capital stock, or enter into any agreement therefor.

          d.   The Borrower will not permit any material breach, default or
event of default to occur under any note, loan agreement, indenture, lease,
mortgage, contract for deed, security agreement or other contractual obligation
binding upon the Borrower which is not cured within the applicable cure
provisions thereof.

          e.   The Borrower will not materially amend, supplement, modify,
compromise or waive any of the terms of any Contract, without the prior written
consent of the Lender, provided that Borrower will have the right to substitute
Equipment subject to any Contract with other Equipment that is like-kind in
value as long as Borrower files an amended or updated UCC financing statement
signed by Lender as to the substituted Equipment within the time period required
by the law of the applicable jurisdiction to perfect a purchase money security
interest and delivers such filed financing statements to the Lender with its
quarterly Contract Status Report.

          f.   If any of the following transactions would result in the
surviving entity not complying with the Tangible Net Worth test and the Cash
Flow Ratio test set forth in Section 5(j) hereof or otherwise cause an Event of
Default hereunder, the Borrower will not consolidate with or merge into any
person or entity, or permit any other person or entity to merge into it, or
acquire (in a transaction analogous in purpose or effect to a consolidation or
merger) all or substantially all of the assets of any other person or entity, or
enter into any partnership or joint venture.

          g.   The Borrower will not make any payments on any of the Borrower's
indebtedness to any of the Borrower's affiliated entities, or to any of the
Borrower's

                                          14
<PAGE>

shareholders, officers, directors or employees, following the occurrence of and
during the continuance of an Event of Default or a failure to comply with a
covenant contained in Section 5 or this Section 6.

          h.   After delivery of the Equipment to Obligor, the Borrower will not
cause or allow any movement of the Equipment, except as permitted under Section
6(e) hereof or in connection with any repossession by the Borrower of such
Equipment.

     7.   DELINQUENT CONTRACTS.  So long as no Event of Default or event which
with the giving of notice or the passage of time would constitute an Event of
Default has occurred under this Agreement, Delinquent Contracts that are in
monetary default only may remain part of the Collateral provided that (i) the
Borrower gives written notice to the Lender within thirty (30) days of each
monthly monetary default; (ii) the defaults by the Obligor do not exceed three
(3) consecutive monthly payments or a total of four (4) nonconsecutive monthly
payments.  With respect to Delinquent Contracts that are in non-monetary
default, including without limitation, the involvement of the Obligor in any
bankruptcy or insolvency proceedings, or Delinquent Contracts that are in
monetary default beyond the limitations of the foregoing sentence, the Borrower
shall within fifteen (15) days, either (i) pay to the Lender an amount equal to
the outstanding balance of the loan proceeds advanced with respect to such
Contract, and such payment shall be applied to the unpaid principal balance of
the Note, or (ii) execute and deliver to the Lender an Addendum and Assignment
(and appropriate UCC financing statements) respecting one or more other
Contracts with an aggregate Equipment Value multiplied by 90% that is equal to
or greater than the outstanding balance of the loan proceeds advanced with
respect to such Delinquent Contract, and Obligor Acknowledgment(s) relating to
such Contract(s) duly executed by each Obligor under such Contract, and all such
other documents, instruments and agreements as required under Section 3(b) and
3(c) or as the Lender may request.

     8.   REPLACEMENT RIGHTS.  The Borrower may, from time to time, upon ten
(10) days prior written notice to the Lender, obtain a release of a particular
Contract from the Collateral (the "Released Contract") and substitute one or
more other Contracts (the "Replacement Contract"), provided that (i) neither the
Released Contract or the Replacement Contracts are Delinquent Contracts; (ii)
the Borrower execute and deliver to the Lender an Addendum and Assignment (and
appropriate UCC financing statements) respecting the Replacement Contracts(s)
with an aggregate Equipment Value multiplied by 90% that is equal to or greater
than the outstanding balance of the loan proceeds advanced with respect to the
Released Contract (the "Unamortized Advance"), and Obligor Acknowledgment(s)
relating to the Replacement Contract(s) duly executed by each Obligor under such
Contract(s), and all such other documents, instruments and agreements as
required under Section 3(b) and 3(c) or as the Lender may request; (iii) the
Borrower pay to the Lender a Replacement Fee equal to one percent (1%) of the
Unamortized Advance; and (iv) the Borrower pay $750 for lender's legal fees in
connection with the replacement.

     9.   RETURNED EQUIPMENT.  Certain Contracts that may be funded pursuant to
the Credit Facility will contain a provision giving the Obligor the right, under
certain circumstances, to return and replace some portion of the Equipment that
is subject to a particular Contract.  In that

                                          15
<PAGE>

event, the Borrower has agreed with the Obligor to amend the Contract to reduce
the obligations of the Obligor thereunder and create a new Contract for
replacement Equipment.  The Borrower agrees that, in such event, in exchange for
the Lender's release of its security interest in the returned Equipment (the
"Returned Equipment"), the Borrower will make a prepayment on the Note equal to
the outstanding balance of the amount advanced by the Lender with respect to the
Returned Equipment under the applicable Contract.  The Borrower agrees to
provide the Lender with a written certification (i) identifying the Returned
Equipment, (ii) the aggregate Equipment Value of the Returned Equipment, (iii)
90% of such aggregate Equipment Value that was advanced by the Lender and
(iv) the outstanding balance of the amount advanced.  The Borrower also agrees
to provide UCC-3 Releases to be executed by the Lender to release such
Equipment.

     10.  EVENT OF DEFAULT.  Each of the following occurrences shall constitute
an Event of Default under this Agreement and under the Loan Documents (herein
called an "Event of Default"):

          a.   The Borrower shall fail to pay any or all of the indebtedness
arising out of this Agreement or Loan Documents (the "Obligations") when due or,
if payable on demand, on demand and such failure shall continue for a period of
five (5) days after such payment becomes due; or

          b.   The Borrower shall fail to observe or perform any covenant or
agreement binding on the Borrower under this Agreement or under any other
assignment, conveyance, instrument or agreement now in effect or hereafter made
between the Borrower and the Lender, or under the Loan Documents for a period of
thirty (30) days for any default which can be reasonably cured within thirty
(30) days and a reasonable period of time for a default not reasonably capable
of cure within thirty (30) days, provided the Borrower diligently commences and
continues a course of action acceptable to the Lender to so cure; or

          c.   The Borrower shall make any representations or warranties in this
Agreement or in any such other assignment, conveyance, instrument, agreement,
financial statements, reports or certificates heretofore or at any time
hereafter submitted by or on behalf of the Borrower to the Lender, and such
representations or warranties, shall prove to have been false or materially
misleading when made; or

          d.   As a result of a default or failure by Borrower, payment of any
substantial indebtedness of the Borrower (other than the Obligations and other
than indebtedness of the Borrower to the extent the indebtedness is non-recourse
to the Borrower) shall be demanded, or the maturity of any substantial
indebtedness shall be accelerated, or any precondition or circumstance
permitting any creditor of the Borrower (acting individually or with the consent
of other creditors) to accelerate the maturity of any substantial indebtedness
shall have occurred; for this purpose indebtedness shall be deemed substantial
if it exceeds $500,000; or

          e.   The Borrower shall become insolvent or shall commit an act of
bankruptcy under the United States Bankruptcy Act, or shall file or have filed
against it, voluntarily or involuntarily, a petition in bankruptcy or for
reorganization or for the adoption of an arrangement or plan under the United
States Bankruptcy Act or shall procure or suffer the

                                          16
<PAGE>

appointment of a receiver for any substantial portion of its properties, or
shall initiate or have initiated against it, voluntarily or involuntarily, any
act, process or proceeding under any insolvency law or other statute or law
providing for the modification or adjustment of the rights of creditors and such
petition, receiver, act, process or proceeding shall not be dismissed or
discharged within ninety (90) days; or

          f.   A garnishment summons or writ of attachment for an amount in
excess of $500,000 shall have been issued against or served upon the Lender for
the attachment of any property of the Borrower in the Lender's possession or any
indebtedness owing the Borrower; or

          g.   The Borrower shall have been dissolved, whether voluntarily or by
operation of law; or

          h.   Any of Borrower's licenses required under the gaming laws of
Nevada, Mississippi or any other jurisdiction in which any of the Collateral is
located is revoked or rescinded, lapses, or is otherwise no longer maintained by
or available to the Borrower.

     11.  RIGHTS AND REMEDIES UPON DEFAULT.  Upon the occurrence of an Event of
Default and at any time thereafter, subject to the gaming laws of any
jurisdiction in which any of the Collateral is located, the Lender may exercise
one or more of the following rights and remedies:

          a.   The Lender may declare all unmatured Obligations to be
immediately due and payable, and the same shall thereupon be immediately due and
payable, without presentment or other notice or demand;

          b.   Subject to the rights of the Obligors, the Lender may exercise
and enforce any and all rights and remedies available upon default to a secured
party under the Uniform Commercial Code including, without limitation, the right
to take possession of the Collateral, or any evidence thereof, proceeding
without judicial process or by judicial process (without a prior hearing or
notice thereof, which the Borrower hereby expressly waives) and the right to
sell, lease or otherwise dispose of any or all of the Collateral, and the
Borrower agrees to make the Collateral available to the Lender at a place to be
designated by the Lender which is reasonably convenient to both parties.  If
notice to the Borrower of any intended disposition of the Collateral or any
other intended action is required by law in a particular instance, such notice
shall be deemed commercially reasonable if given at least ten (10) calendar days
prior to the date of intended disposition or other action;

          c.   The Lender may request the Borrower to, and upon such request the
Borrower will, assist the Lender in repossessing and selling the Equipment in
compliance with all applicable laws and in accordance with the Repossession
Agreement (this provision in no way limits the Lender's ability to use any other
person or entity to repossess and sell the Equipment);

          d.   Without notice or demand, the Lender may offset any indebtedness
the Lender or any of its participants, successors or assigns then owes to the
Borrower whether or not then due, against any Obligation then owed to the Lender
or any of its participants, successors or assigns by Borrower, whether or not
then due;

                                          17
<PAGE>

          e.   The Lender may exercise the recourse rights of the Borrower
against the Obligor on any Contracts; and

          f.   The Lender may exercise or enforce any and all other rights or
remedies available by law or agreement against the Collateral, against the
Borrower or against any other person or property.

     12.  MISCELLANEOUS.  The Borrower agrees that:

          a.   The performance or observance of any promise or condition set
forth in this Agreement may be waived in writing by the Lender, but not
otherwise.  No delay in the exercise of any power, right or remedy of the
Lender, shall operate as a waiver thereof, nor shall any single or partial
exercise thereof or the exercise of any other power, right or remedy operate as
a waiver thereof.

          b.   This Agreement shall be binding upon the Borrower and its
successors and assigns and shall inure to the benefit of the Lender and its
participants and the successors and assigns of any of them, provided that the
Borrower may not transfer or assign its rights hereunder without the prior
written consent of the Lender.  This Agreement shall be effective the date
written above.  All rights and powers specifically conferred upon the Lender may
be transferred or delegated by the Lender to any of its successors or assigns.
Except to the extent otherwise required by law, this Agreement and the
transactions evidenced hereby shall be governed by the substantive laws of the
State of Minnesota without regard to principles of conflicts of laws.  If any
provision or application of this Agreement is held unlawful or unenforceable in
any respect, such illegality or unenforceability shall not affect other
provisions or applications which can be given effect, and this Agreement shall
be construed as if the unlawful or unenforceable provision or application had
never been contained herein or prescribed hereby.  All representations and
warranties contained in this Agreement or in any other agreement between the
Borrower and the Lender shall survive the execution, delivery and performance of
this Agreement and the creation and payment of any indebtedness to the Lender.
This Agreement may be executed in any number of counterparts, each of which is
to be deemed to be an original and all of which constitute one agreement.

     13.  NOTICES.  All notices, consents, requests, demands and other
communications hereunder shall be given to or made upon the respective parties
hereto at their respective addresses specified below or, as to any party, at
such other address as may be designated by it in a written notice to the other
party.  All notices, requests, consents and demands hereunder shall be effective
when personally delivered or five (5) days after depositing in the United States
mail, certified or registered, postage prepaid, or when sent by confirmed
facsimile, or when delivered by overnight courier.

                                          18
<PAGE>

     If to Borrower:     PDS Financial Corporation
                         6171 McLeod Drive
                         Las Vegas, NV  89120
                         Attn:  Johan Finley
                         Telephone:  702-736-0700
                         Fax:  702-740-8692

     If to M&S:          Miller & Schroeder Investments Corporation
                         220 South Sixth Street, Suite 300
                         Minneapolis, Minnesota 55402
                         Attn:  Gaming Department
                         Telephone:  612/376-1500
                         Fax:  612/376-1410

     14.  JURISDICTION.  THE BORROWER HEREBY SUBMITS ITSELF TO THE JURISDICTION
OF THE STATE OF MINNESOTA AND THE FEDERAL COURTS OF THE UNITED STATES LOCATED IN
SUCH STATE IN RESPECT OF ALL ACTIONS ARISING OUT OF OR IN CONNECTION WITH THE
INTERPRETATION OR ENFORCEMENT OF THIS AGREEMENT AND THE DOCUMENTS RELATED
THERETO.

     15.  DUTIES OF LENDER WITH RESPECT TO COLLATERAL.  Except with respect to
the exercise of remedies under this Agreement or the Security Agreement, the
Lender shall have no duty, responsibility or obligation of any nature whatsoever
to service, collect, administer, enforce or account for the Contracts.  The
Borrower shall service, account for, administer, collect all payments and
enforce all rights with respect to such Contracts.  Upon the occurrence of an
Event of Default, the Borrower shall deposit such payments promptly upon receipt
and in the form received in the collateral account established by the Lender
pursuant to Section 5 of the Security Agreement.

     16.  INDEMNIFICATION.  Except for losses, claims, damages or liability
arising out of the gross negligence or willful misconduct of the Lender, the
Borrower agrees to indemnify and hold harmless the Lender, its officers, agents
(including outside legal counsel) and employees, against any and all losses,
claims, damages or liability to which the Lender, its officers, agents and
employees, may become subject under any law in connection with the carrying out
of the transactions contemplated by this Agreement or any other Loan Document,
or the conduct of any activity related to the Equipment and to reimburse the
Lender, its officers, agents and employees, for any out-of-pocket legal and
other expenses (including reasonable attorneys' fees, whether incurred at trial,
on appeal, in bankruptcy proceedings, or otherwise) incurred by the Lender, its
officers, agents and employees, in connection with investigating any such
losses, claims, damages or liabilities or in connection with defending any
actions relating thereto.  The Lender agrees, at the request and reasonable
expense of the Borrower, to cooperate in the making of any investigation in
defense of any such claim and promptly to assert any or all of the rights and
privileges and defenses which may be available to the Lender.  The Borrower
further releases and agrees to hold harmless the Lender, its officers, agents
and employees, from and against all losses, damages, penalties, liabilities, or
expenses (including reasonable legal fees, whether incurred at trial, on appeal,
in bankruptcy proceedings, or otherwise) due to or arising out of any
misrepresentation of information furnished to Lender by Borrower or out of a
breach of any

                                          19
<PAGE>

covenant, representation or undertaking of the Borrower contained in this
Agreement or any other Loan Document.  The Borrower's liability hereunder shall
not be limited to the extent of such insurance or subject to any exclusions from
coverage in any insurance policy.  The provisions of this Section shall survive
the payment of the Note and the Loan.

     17.  PLACEMENT FEE/PARTICIPATION SERVICING FEE.  The Borrower shall pay to
the Lender the following amounts:  (i) a placement fee that will be deducted
from the proceeds of the Note on the Closing Date, and (ii) a participation
servicing fee on the unpaid principal balance of the Note from time to time
outstanding (computed on the basis of a year consisting of twelve (12) thirty
(30) day months) accruing at a rate equal to one-fourth of one percent (0.25%),
payable monthly on each payment date under the Note.

     18.  ATTORNEYS FEES AND TAXES.  The Borrower shall reimburse the Lender,
upon demand, for all reasonable costs and expenses actually incurred, including
without limitation reasonable attorney's fees paid or incurred by the Lender in
connection with:

          a.   The preparation or review of the Loan Documents (provided,
however, that the Borrower's obligation to pay legal fees to the Lender for
legal services rendered by counsel for the Lender in connection with the initial
preparation and review of the Loan Documents shall be limited to $2,000), the
perfection, protection, enforcement or foreclosure of the security interests
created by the Loan Documents, the protection or enforcement of the interests
and collateral security of the Lender in any litigation or bankruptcy or
insolvency proceeding or the prosecution or defense of any action or proceeding
relating in any way to the transactions contemplated by this Agreement, travel
to and from the offices and place of business of the Borrower, the negotiation
and preparation of the Loan Documents and all other documents necessary or
desirable in connection with the original execution and delivery of Loan
Documents;

          b.   For each Advance Request made pursuant to this Agreement, legal
fees associated with review of the documentation submitted by Borrower, and the
perfection of the security interests in the Collateral (provided, however, that
the legal fees for each Advance Request shall be limited to $750.00 and shall be
paid out of the Advance Request).

          c.   Subsequent to the initial Closing, the negotiation of any
amendments or modifications to any of the Loan Documents requested by or
consented to by Borrower or, if an Event of Default has occurred and is
continuing, requested by Lender, and any related documents, instruments or
agreements and the preparation of any and all documents necessary or desirable
to effect such amendments or modifications; and

          d.   The enforcement by the Lender during the term hereof or
thereafter of the rights or remedies of the Lender hereunder or under any of the
foregoing documents, instruments or agreements, including without limitation
reasonable costs and expenses of collection in the Event of Default, whether or
not suit is filed with respect thereto and whether such costs are paid or
incurred, or to be paid or incurred, prior to or after entry of judgment.

                                          20
<PAGE>

The Borrower agrees to pay all stamp, document, transfer, recording or filing
taxes or fees and similar impositions now or hereafter reasonably determined by
the Lender to be payable in connection with the Loan Documents, or any other
documents, instruments or transactions pursuant to or in connection herewith or
therewith, and the Borrower agrees to save the Lender harmless from and against
any and all present or future claims, liabilities or losses with respect to or
resulting from any omission to pay or delay in paying any such taxes, fees or
impositions, unless such omission or delay is due to gross negligence or willful
misconduct on the part of Lender.  All such expenses, taxes or attorney's fees
shall be payable to the Lender on demand.  The obligations of Borrower under
this Section 18 shall survive the repayment of the Note and Loan.

     19.  RELATIONSHIP AMONG BORROWERS.

          a.   JOINT AND SEVERAL LIABILITY.  BY SIGNING THIS AGREEMENT, EACH OF
THE BORROWERS AGREES THAT IT IS LIABLE, JOINTLY AND SEVERALLY WITH THE OTHER
BORROWER, FOR THE PAYMENT OF THE NOTE AND ALL OTHER OBLIGATIONS OF THE BORROWERS
UNDER THIS AGREEMENT, AND THAT LENDER CAN ENFORCE SUCH OBLIGATIONS AGAINST
EITHER BORROWER, IN LENDER'S SOLE AND UNLIMITED DISCRETION.

          b.   LENDER RIGHTS TO ADMINISTER THE LOAN.  Lender may at any time and
from time to time, without the consent of, or notice to, either Borrower,
without incurring responsibility to either Borrower, and without affecting,
impairing or releasing any of the obligations of either Borrower hereunder:

               (1)  alter, change, modify, extend, release, renew, cancel,
supplement or amend in any manner the Loan Documents provided at least one
Borrower has consented thereto, and the Borrowers' joint and several liability
shall continue to apply after giving effect to any such alteration, change,
modification, extension, release, renewal, cancellation, supplement or
amendment;

               (2)  sell, exchange, surrender, realize upon, release (with or
without consideration) or otherwise deal with in any manner and in any order any
property of any person or entity mortgaged to Lender or otherwise securing the
Borrowers' joint and several liability, or otherwise providing recourse to
Lender with respect thereto;

               (3)  exercise or refrain from exercising any rights against
either Borrower or others with respect to the Borrowers' joint and several
liability, or otherwise act or refrain from acting;

               (4)  settle or compromise any of the Borrowers' joint and several
liability, any security therefor or other recourse with respect thereto, or
subordinate the payment or performance of all or any part thereof to the payment
of any liability (whether due or not) of either Borrower to any creditor of
either Borrower, including without limitation, Lender and either Borrower;

                                          21
<PAGE>

               (5)  apply any sum received by Lender from any source in respect
of any liabilities of either Borrower to Lender to any of such liabilities,
regardless of whether the Note remains unpaid;

               (6)  fail to set off and/or release, in whole or in part, any
balance of any account or any credit on its books in favor of either Borrower,
or of any other person, and extend credit in any manner whatsoever to either
Borrower, and generally deal with either Borrower and any security  for the
Borrowers' joint and several liability or any recourse with respect thereto as
Lender may see fit; and/or

               (7)  consent to or waive any breach of, or any act, omission or
default under, this Agreement or any other Loan Document, including, without
limitation, any agreement providing collateral security for the payment of the
Borrowers' joint and several liability or any other indebtedness of either
Borrower or Lender.

          c.   PRIMARY OBLIGATION.  No invalidity, irregularity or
unenforceability of all or any part of either Borrower's joint and several
liability or of any security therefor or other recourse with respect thereto
shall affect, impair or be a defense to the other Borrower's joint and several
liability, and all obligations under the Note and this Agreement are primary
obligations of each Borrower.

          d.   PAYMENTS RECOVERED FROM LENDER.  If any payment received by the
Lender and applied to any obligations is subsequently set aside, recovered,
rescinded or required to be returned for any reason (including, without
limitation, the bankruptcy, insolvency or reorganization of a Borrower or any
other obligor), the obligations to which such payment was applied shall be
deemed to have continued in existence, notwithstanding such application, and
each Borrower shall be jointly and severally liable for such obligations as
fully as if such application had never been made.  References in this Agreement
to amounts "irrevocably paid" or to "irrevocable payment" refer to payments that
cannot be set aside, recovered, rescinded or required to be returned for any
reason.

          e.   NO RELEASE.  Until the Note and all other obligations under this
Agreement have been paid in full and each and every one of the covenants and
agreements of this Agreement are fully performed, the obligations of either
Borrower hereunder shall not be released, in whole or in part, by any action or
thing (other than irrevocable payment in full) which might, but for this
provision of this Agreement, be deemed a legal or equitable discharge of a
surety or guarantor, or by reason of any waiver, extension, modification,
forbearance or delay or other act or omission of Lender or its failure to
proceed promptly or otherwise, or by reason of any action taken or omitted by
Lender whether or not such action or failure to act varies or increases the risk
of, or affects the rights or remedies of, either Borrower, nor shall any
modification of any of the Note or this Agreement or release of any security
therefor by operation of law or by the action of any third party affect in any
way the obligations of either Borrower hereunder, and each Borrower hereby
expressly waives and surrenders any defense to its liability hereunder based
upon any of the foregoing acts, omissions, things, agreements, or waivers of any
of them.  Neither Borrower shall be exonerated with respect to its liabilities
under this Agreement by any act or thing except irrevocable payment and
performance of the

                                          22
<PAGE>

obligations, it being the purpose and intent of this Agreement that the
obligations constitute the direct and primary obligations of each Borrower and
that the covenants, agreements and all obligations of each Borrower hereunder be
absolute, unconditional and irrevocable.

          f.   ACTIONS NOT REQUIRED.  Each Borrower hereby waives any and all
right to cause a marshalling of the other Borrower's assets or any other action
by any court or other governmental body with respect thereto insofar as the
rights of Lender hereunder are concerned or to cause Lender to proceed against
any security for the Borrowers' joint and several liability or any other
recourse which Lender may have with respect thereto, and further waives any and
all requirements that Lender institute any action or proceeding at law or in
equity against the other Borrower or anyone else, or with respect to this
Agreement, the Loan Documents, or any collateral security for the Borrowers'
joint and several liability, as a condition precedent to making demand on, or
bringing an action or obtaining and/or enforcing a judgment against, either
Borrower.  Each Borrower further waives any requirement that Lender seek
performance by the other Borrower or any other person, of any obligation under
this Agreement, the Loan Documents or any collateral security for the Borrowers'
joint and several liability as a condition precedent to making a demand on, or
bringing an action or obtaining and/or enforcing a judgment against, either
Borrower.  No Borrower shall have any right of setoff against Lender with
respect to any of its obligations hereunder.  Any remedy or right hereby granted
which shall be found to be unenforceable as to any person or under any
circumstance, for any reason, shall in no way limit or prevent the enforcement
of such remedy or right as to any other person or circumstance, nor shall such
unenforceability limit or prevent enforcement of any other remedy or right
hereby granted.

          g.   DEFICIENCIES.  Each Borrower specifically agrees that in the
event of a foreclosure under the Security Agreement, any other security
agreement or other similar agreement held by Lender which secures any part or
all of the Borrowers' joint and several liability and in the event of a
deficiency resulting therefrom, each Borrower shall be, and hereby is expressly
made, liable to Lender for the full amount of such deficiency notwithstanding
any other provision of this Agreement or provision of such agreement, any
document or documents evidencing the indebtedness secured by such agreement or
any other document or any provision of applicable laws which might otherwise
prevent Lender from enforcing and/or collecting such deficiency.  Each Borrower
hereby waives any right to notice of a foreclosure under any security agreement
or other similar agreement given to Lender by any other Borrower which secures
any part or all of the Borrowers' joint and several liability.

          h.   BORROWERS BANKRUPTCY.  Each Borrower expressly agrees that its
liability and obligations under the Note and this Agreement shall not in any way
be affected by the institution by or against the other Borrower or any other
person or entity of any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or any other similar proceedings for relief under any
bankruptcy law or similar law for the relief of debtors, or any action taken or
not taken by Lender in connection therewith, and that any discharge of either
Borrower's joint and several liability pursuant to any such bankruptcy or
similar law or other laws shall not discharge or otherwise affect in any way the
obligations of the other Borrower under the Note and this Agreement, and that
upon or at any time after the institution of any of the above actions, at
Lender's sole discretion, the Borrowers' joint and several obligations shall be

                                          23
<PAGE>

enforceable against either Borrower that is not itself the subject of such
proceedings.  Each Borrower expressly waives any right to argue that Lender's
enforcement of any remedies against that Borrower is stayed by reason of the
pendency of any such proceedings against the other Borrower.

          i.   NO SUBROGATION.  Notwithstanding any payment or payments made by
either Borrower hereunder or any setoff or application of funds of either
Borrower by the Lender, such Borrower shall not be entitled to be subrogated to
any of the rights of the Lender against the other Borrower or any other
guarantor or any collateral security or guaranty or right of offset held by the
Lender for the payment of the obligations, nor shall such Borrower seek or be
entitled to seek any contribution or reimbursement from the other Borrower or
any other guarantor in respect of payments made by such Borrower hereunder,
until all amounts owing to the Lender by the Borrowers on account of the
obligations are irrevocably paid in full.  If any amount shall be paid to a
Borrower on account of such subrogation rights at any time when all of the
obligations shall not have been irrevocably paid in full, such amount shall be
held by that Borrower, and shall, forthwith upon receipt by the Borrower, be
turned over to the Lender in the exact form received by the Borrower (duly
endorsed by the Borrower to the Lender, if required), to be applied against the
obligations, whether matured or unmatured, in such order as the Lender may
determine.

          j.   BORROWERS' FINANCIAL CONDITION.  Each Borrower is familiar with
the financial condition of the other Borrower, and each Borrower has executed
and delivered this Agreement and the Note based on that Borrower's own judgment
and not in reliance upon any statement or representation of the Lender.  The
Lender shall have no obligation to provide either Borrower with any advice
whatsoever or to inform either Borrower at any time of the Lender's actions,
evaluations or conclusions on the financial condition or any other matter
concerning the Borrowers.

          k.   RELATIONSHIP OF BORROWERS.  Each Borrower represents that it
expects to derive benefits from the extension of credit accommodations to the
Borrowers by the Lender and finds it advantageous, desirable and in its best
interests to execute and deliver this Agreement and the Note to the Lender.

     20.  PARTICIPATION DISCLOSURE.  The Borrower hereby acknowledges that and
consents to the Lender selling participation interests in the Loan, and hereby
authorizes the Lender to disclose to any potential participant the Loan
Documents and any and all financial and other information relating to the
Borrower and delivered to the Lender in connection with this transaction,
provided that Lender shall comply with all laws, including but not limited to
federal and state securities laws, in connection with the offer or sale of such
participation interests.  The Lender and anyone claiming by or through the
Lender shall not hold Borrower responsible for any false representations Lender
may have made to its participants.

     21.  AMENDMENTS.  No amendment, modification or waiver of any provision of
the Loan Documents and no consent to any departure by the Borrower therefrom
shall in any event be effective unless the same shall be in writing and signed
by the Lender, and then such amendment, modification, waiver or consent shall be
effective only in the specific instance and

                                          24
<PAGE>

for the purpose for which given.  Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally, but only by an
instrument in writing signed by the party against whom enforcement of the
change, waiver, discharge or termination is sought.

     22.  MARSHALLING; PAYMENTS SET ASIDE.  The Lender shall be under no
obligation to marshall any assets in favor of the Borrower or any other Person
or against or in payment of the Loan and other Indebtedness of the Borrower to
the Lender.  To the extent that the Borrower makes a payment or payments to the
Lender or the Lender exercises its rights of setoff, and such payment or
payments or the proceeds of such setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

     23.  INVALID PROVISIONS.  If fulfillment of any provision hereof, or any
transaction related thereto at the time performance of any such provision shall
be due, shall involve transcending the limit of validity prescribed by law,
then, ipso facto, the obligation to be fulfilled shall be reduced to the limit
of such validity; and such clause or provision shall be deemed invalid as though
not herein contained, and the remainder of this Agreement shall remain operative
in full force and effect.

     24.  NOT JOINT VENTURES.  The Lender is not, and shall not by reason of any
provision of any of the Loan Documents be deemed to be, a joint venturer with or
partner or agent of the Borrower.

     25.  ESTOPPEL CERTIFICATE.  At any time and from time to time, within
fifteen (15) Business Days after receipt from the other party hereto of a
written request therefor, Borrower or Lender, as the case may be, shall prepare,
execute and deliver to the such party, and/or any other party which Borrower or
Lender, as the case may be, may designate, an estoppel certificate stating:  (a)
the amount of the unpaid principal balance and accrued interest on the date
thereof; (b) the date upon which the last payment was made and the date the next
payment is due; and (c) that Borrower has no defenses, claims or offsets against
full enforcement hereof according to the terms hereof, or listing and describing
any such amendments, changes, defaults, events of default, defenses, claims or
offsets which do exist.

     26.  NOTICE OF CHANGE OF LOCATION.  Borrower shall promptly notify Lender
of any change in location of Borrower's principal places of business or the
offices where it keeps its records concerning accounts and contract rights.

     27.  TAX IDENTIFICATION NUMBER.  The federal tax identification number for
PDS Financial Corporation is 41-1605970.  The federal tax identification number
for PDS Financial Corporation-Nevada is 88-0357859.   The federal tax
identification number for PDS Financial Corporation-Mississippi is 41-1605970.

     28.  SETOFFS.  If the unpaid principal amount of the Loan, interest accrued
thereon or any other amount owing by the Borrower under the Loan Documents shall
have become due and

                                          25
<PAGE>

payable (by demand, acceleration or otherwise), the Lender shall have the right,
in addition to all other rights and remedies available to it, without notice to
the Borrower, to set off against, and to appropriate and apply to such due and
payable amounts any debt owing to, and any other funds held in any manner by the
Lender for the account of, the Borrower.  Such right shall exist whether or not
the Lender shall have made any demand hereunder or under any other Loan
Document, whether or not such debt owing to or funds held for the account of the
Borrower is or are matured or unmatured, and regardless of the existence or
adequacy of any collateral, guaranty or any other security, right or remedy
available to the Lender.

     29.  REMEDIES CUMULATIVE.  The rights and remedies herein specified of the
parties hereto are cumulative and not exclusive of any rights or remedies which
the parties hereto would otherwise have at law or in equity or by statute.

     30.  INTEGRATION; CONFLICTING TERMS.  This Agreement together with the
other Loan Documents comprises the entire agreement of the parties on the
subject matter hereof and supersedes and replaces all prior agreements, oral and
written, on such subject matter.  If any term of any of the other Loan Documents
expressly conflicts with the provisions of this Agreement, the provisions of
this Agreement shall control; provided, however, that the inclusion of
supplemental rights and remedies of Lender in any of the other Loan Documents
shall not be deemed a conflict with this Agreement.

     31.  GOVERNING LAW; CONSTRUCTION.  The Loan Documents shall be governed by,
and construed in accordance with, Minnesota law.  Whenever possible, each,
provision of the Loan Documents and any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto shall
be interpreted in such manner as to be effective and valid under such applicable
law, but, if any provision of the Loan Documents or any other statement,
instrument or transaction contemplated hereby or thereby or relating hereto or
thereto shall be held to be prohibited or invalid under such applicable law,
such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of the Loan Documents or any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto.  The
parties shall endeavor in good-faith negotiations to replace any invalid,
illegal or unenforceable provisions with a valid provision the economic effect
of which comes as close as possible to that of the invalid, illegal or
unenforceable provision.  The provisions of this Section are irrevocable and may
not be rescinded, revoked or amended without the prior written consent of
Lender.  Borrower acknowledges Lender has relied upon them in entering into the
Loan Documents.

     32.  WAIVER OF JURY TRIAL.  Borrower hereby irrevocably waives any and all
right to trial by jury in any legal proceeding arising out of or relating to
this Agreement, the Note or any of the documents executed in connection
therewith or the transactions contemplated hereby or thereby.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
the proper officers thereunto duly authorized on the day and year first above
written.

                                          26
<PAGE>

MILLER & SCHROEDER                 PDS FINANCIAL CORPORATION
   INVESTMENTS CORPORATION

By:                                By:
   ---------------------------        --------------------------------
  Its:                               Its:
      ------------------------           -----------------------------

                                   PDS FINANCIAL CORPORATION-
                                   NEVADA

                                   By:
                                      --------------------------------
                                     Its:
                                         -----------------------------

                                   PDS FINANCIAL CORPORATION-
                                   MISSISSIPPI

                                   By:
                                      --------------------------------
                                     Its:
                                         -----------------------------

LIST OF EXHIBITS

A.   Contract Eligibility Criteria
B.   Form of Advance Request
C.   Pending Litigation
D.   Contract Status Report Format
E.   Compliance Certificate

                                          27

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