Document:

Exhibit 10.10

    
      Exhibit
        10.10

      
        

      

      
 

      

      

      AMENDED
        AND RESTATED

      

      OPERATING
        AGREEMENT

      

      OF

      

      BUENA
        VISTA DEVELOPMENT COMPANY, LLC

      

      

      A
        NEW YORK LIMITED LIABILITY COMPANY

      

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TABLE
        OF CONTENTS

        

          
            
              	 	
                       Page

                    
	
                       

                      ARTICLE
                        1. DEFINITIONS

                    	
                       

                      1

                    
	
                       

                      ARTICLE
                        2. FORMATION OF THE COMPANY

                    	
                       

                      6

                    
	
                      2.1.

                    	
                      Formation

                    	
                      6

                    
	
                      2.2.

                    	
                      Purpose

                    	
                      6

                    
	
                      2.3.

                    	
                      Principal
                        Place of Business

                    	
                      7

                    
	
                      2.4.

                    	
                      Registered
                        Office and Registered Agent

                    	
                      7

                    
	
                      2.5.

                    	
                      Term

                    	
                      7

                    
	
                      2.6.

                    	
                      Licensing

                    	
                      7

                    
	
                      2.7.

                    	
                      Tax
                        Classification

                    	
                      7

                    
	
                       

                      ARTICLE
                        3. ESTABLISHMENT OF CLASSES; RIGHTS AND OBLIGATIONS OF
                        MEMBERS

                    	
                       

                      7

                    
	
                      3.1.

                    	
                      Establishment
                        of Classes of Membership Interest

                    	
                      7

                    
	
                      3.2.

                    	
                      Limitation
                        of Liability

                    	
                      7

                    
	
                      3.3.

                    	
                      Company
                        Debt Liability

                    	
                      7

                    
	
                      3.4.

                    	
                      Access
                        to Information; Records

                    	
                      7

                    
	
                      3.5.

                    	
                      Right
                        to Conduct Business with Company

                    	
                      8

                    
	
                      3.6.

                    	
                      Indemnification

                    	
                      8

                    
	
                      3.7.

                    	
                      Confidentiality

                    	
                      8

                    
	
                      3.8.

                    	
                      Additional
                        Members

                    	
                      8

                    
	
                       

                      ARTICLE
                        4. MANAGEMENT; MEETINGS; VOTING RIGHTS

                    	
                       

                      8

                    
	
                      4.1.

                    	
                      Managing
                        Member

                    	
                      8

                    
	
                      4.2.

                    	
                      Duty
                        of Good Faith

                    	
                      9

                    
	
                      4.3.

                    	
                      Meetings
                        of the Members

                    	
                      9

                    
	
                      4.4.

                    	
                      Voting
                        of Membership Interests

                    	
                      9

                    
	
                      4.5.

                    	
                      Required
                        Vote

                    	
                      9

                    
	
                      4.6.

                    	
                      Outside
                        Businesses

                    	
                      9

                    
	
                       

                      ARTICLE
                        5. CONTRIBUTIONS TO THE COMPANY AND CAPITAL
                        ACCOUNTS

                    	
                       

                      10

                    
	
                      5.1.

                    	
                      Initial
                        Capital Contributions

                    	
                      10

                    
	
                      5.2.

                    	
                      Additional
                        Capital Contributions and Changes in Percentage
                        Interests

                    	
                      10

                    
	
                      5.3.

                    	
                      Capital
                        Accounts

                    	
                      10

                    
	
                      5.4.

                    	
                      No
                        Withdrawal or Reduction of Members’ Capital
                        Contributions

                    	
                      10

                    
	
                       

                      ARTICLE
                        6. DISTRIBUTIONS, ALLOCATIONS, INCOME TAX, ELECTIONS
                        AND REPORTS

                    	
                       

                      10

                    
	
                      6.1.

                    	
                      Distribution
                        Rights of Members

                    	
                      10

                    
	
                      6.2.

                    	
                      Allocations
                        of Net Profit and Loss

                    	
                      10

                    
	
                      6.3.

                    	
                      Special
                        Allocations

                    	
                      11

                    
	
                      6.4.

                    	
                      Withheld
                        Amounts

                    	
                      11

                    
	
                      6.5.

                    	
                      Limitation
                        upon Distributions

                    	
                      11

                    
	
                      6.6.

                    	
                      Accounting
                        Principles

                    	
                      11

                    
	
                      6.7.

                    	
                      Accounting
                        Period

                    	
                      11

                    

            

             

             

            
              
                
                

              

              
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            TABLE
              OF
              CONTENTS

             (continued)

             

            
              	 	 	
                       Page
 
	
                      6.8.

                    	
                      Financial
                        Statements

                    	
                      11

                    
	
                      6.9.

                    	
                      Returns
                        and Other Elections

                    	
                      11

                    
	
                      6.10.

                    	
                      Tax
                        Matters Partner

                    	
                      12

                    
	
                       

                      ARTICLE
                        7. TRANSFERABILITY

                    	
                       

                      12

                    
	
                      7.1.

                    	
                      General
                        Conditions on Assignments

                    	
                      12

                    
	
                      7.2.

                    	
                      Assignment

                    	
                      13

                    
	
                      7.3.

                    	
                      Rights
                        of Assignee

                    	
                      17

                    
	
                      7.4.

                    	
                      Death
                        or Incompetency

                    	
                      18

                    
	
                       

                      ARTICLE
                        8. DISSOLUTION AND TERMINATION

                    	
                       

                      18

                    
	
                      8.1.

                    	
                      Dissolution

                    	
                      18

                    
	
                      8.2.

                    	
                      Winding
                        Up, Liquidation and Distribution of Assets

                    	
                      18

                    
	
                      8.3.

                    	
                      Deficit
                        Account

                    	
                      19

                    
	
                      8.4.

                    	
                      Articles
                        of Dissolution

                    	
                      19

                    
	
                      8.5.

                    	
                      Effect
                        of Filing Articles of Dissolution

                    	
                      19

                    
	
                      8.6.

                    	
                      Return
                        of Contribution Nonrecourse to Other Members

                    	
                      19

                    
	
                       

                      ARTICLE
                        9. AMENDMENTS

                    	
                       

                      19

                    
	
                      9.1.

                    	
                      Amendments

                    	
                      19

                    
	
                       

                      ARTICLE
                        10. DISPUTE RESOLUTION AND ARBITRATION

                    	
                       

                      20

                    
	
                      10.1.

                    	
                      Dispute
                        Resolution

                    	
                      20

                    
	
                      10.2.

                    	
                      Arbitration

                    	
                      20

                    
	
                      10.3.

                    	
                      Binding
                        Decision

                    	
                      20

                    
	
                       

                      ARTICLE
                        11. MISCELLANEOUS PROVISIONS

                    	
                       

                      20

                    
	
                      11.1.

                    	
                      Notices

                    	
                      20

                    
	
                      11.2.

                    	
                      Application
                        of New York Law

                    	
                      21

                    
	
                      11.3.

                    	
                      Further
                        Agreements

                    	
                      21

                    
	
                      11.4.

                    	
                      Construction

                    	
                      21

                    
	
                      11.5.

                    	
                      Headings

                    	
                      21

                    
	
                      11.6.

                    	
                      Waivers

                    	
                      21

                    
	
                      11.7.

                    	
                      Rights
                        and Remedies Cumulative

                    	
                      21

                    
	
                      11.8.

                    	
                      Severability

                    	
                      21

                    
	
                      11.9.

                    	
                      Heirs,
                        Successors and Assigns

                    	
                      21

                    
	
                      11.10.

                    	
                      Third
                        Parties

                    	
                      21

                    
	
                      11.11.

                    	
                      Counterparts

                    	
                      21

                    
	
                      11.12.

                    	
                      Material
                        Contracts

                    	
                      22

                    
	
                      11.13.

                    	
                      Entire
                        Agreement

                    	
                      22

                    

            

          

        

      

       

      EXHIBIT
        A
        INITIAL CAPITAL CONTRIBUTIONS AND PERCENTAGE INTERESTS

      EXHIBIT
        B
        CAPITAL ACCOUNTS

      EXHIBIT
        C
        SPECIAL ALLOCATIONS

      

      

      
        
          
          

        

        
          -
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      AMENDED
        AND RESTATED

      OPERATING
        AGREEMENT

      OF

      BUENA
        VISTA DEVELOPMENT COMPANY, LLC

      

      A
        NEW YORK LIMITED LIABILITY COMPANY

      

      THIS
        AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”)
        is
        made and entered into as of the 21st
        day of
        April, 2005, by and between Casino Development & Management Company, LLC
        (“CD&M”)
        and
        Nevada Gold BVR, L.L.C. (“Nevada
        Gold”).

      

      WHEREAS,
        Articles of Organization were filed for Buena Vista Development Company,
        LLC
        (originally known as Buena Vista, LLC, the “Company”)
        with
        the Office of the New York Secretary of State on the 25th
        day of
        June, 2002, in accordance with the Limited Liability Company Law of the State
        of
        New York (the “Act”);
        

      

      WHEREAS,
        subsequent to the formation of the Company, CD&M, as the sole Member (as
        such term is defined herein) of the Company, adopted an Operating Agreement
        for
        the Company dated July 25, 2004 (the “Operating
        Agreement”);

      

      WHEREAS,
        pursuant to an Investment Agreement of even date herewith (the “Investment
        Agreement”),
        CD&M and Nevada Gold have agreed that in exchange for the Capital
        Contribution by Nevada Gold described and set forth in the Investment Agreement,
        Nevada Gold will be granted a Membership Interest (as defined herein) in
        the
        Company;

      

      WHEREAS,
        pursuant to the Investment Agreement, Nevada Gold has agreed to make the
        Loan to
        the Company; and

      

      WHEREAS,
        the undersigned wish to enter into this Agreement to amend and restate the
        Operating Agreement in order to, among other things, provide for the management
        of the Company and set forth the rights, preferences, privileges and obligations
        of the Members.

      

      NOW,
        THEREFORE, in consideration of the mutual covenants and promises set forth
        herein, and for other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the parties hereto agree as
        follows:

      

      ARTICLE
        1.

      DEFINITIONS

       

      The
        following terms used in this Agreement shall have the following
        meanings:

      

      1.1. “Act”
        shall
        mean the Limited Liability Company Law of the State of New York, as amended
        from
        time to time.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        1.2. “Adjusted
          Deficit Capital Account”
          shall
          mean, with respect to any Member, the deficit balance, if any, in such
          Member’s
          Capital Account as of the end of the taxable year, after giving effect
          to the
          following adjustments:

         

      

      1.2.1. credit
        to
        such Capital Account any amount that such Member is obligated to restore
        under
        Treasury Regulation § 1.704-1(b)(2)(ii)(c), as well as any addition thereto
        pursuant to the next to last sentence of Treasury Regulation §§ 1.704-2(g)(1)
        and 1.704-2(i)(5), after taking into account thereunder any changes during
        such
        year in partnership minimum gain (as determined in accordance with Treasury
        Regulation § 1.704-2(d)) and in the minimum gain attributable to any
        partner nonrecourse debt (as determined under Treasury Regulation §
        1.704-2(i)(3)); and

       

      1.2.2. debit
        to
        such Capital Account the items described in Treasury Regulation
§§ 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

       

      This
        definition of Adjusted Deficit Capital Account is intended to comply with
        the
        provisions of Treasury Regulation §§ 1.704-1(b)(2)(ii)(d) and 1.704-2, and shall
        be interpreted consistently with those provisions.

       

      1.3. “Affected
        Member”
        shall
        mean the Member that is notified that it is an Unsuitable Person under
Section 7.2.2.2
        or
Section 7.2.2.3.2.

       

      1.4. “Affiliate”
        shall
        mean a Person whose relationship to a Member is such that a Gaming Authority
        considers such Person’s suitability as a factor in determining the Member’s or
        the Company’s suitability for receiving a Gaming License.

       

      1.5. “Agreed
        Value”
        shall
        mean the fair market value of an asset, the Membership Interests or, where
        applicable, the Capital Accounts as of the date of valuation, which fair
        market
        value shall be determined by unanimous agreement of the Members or, if they
        cannot so agree, by an independent appraiser selected by the
        Members.

       

      1.6. “Agreement”
        shall
        mean this Agreement as originally executed and as amended from time to
        time.

       

      1.7. “Approved
        Expense”
        shall
        mean an expense that has been approved in advance by the Class B Member,
        such
        approval not to be unreasonably withheld. 

       

      1.8. “Articles
        of Organization”
        shall
        mean the Articles of Organization of Buena Vista Development Company, LLC
        as
        filed with Office of the New York Secretary of State, and as amended from
        time
        to time.

       

      1.9. “Auditor”
        shall
        mean the auditor of the Company as appointed by the Members from time to
        time.

       

      1.10. “Business
        Day”
        shall
        mean any day other than Saturday, Sunday or a statutory holiday in New
        York.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        1.11. “California
          Regulatory Authority”
          shall
          mean a Gaming Authority whose approval is necessary in order for the Company
          to
          obtain or maintain Gaming Licenses with respect to the Tribe.

         

      

      1.12. “Capital
        Account”
        as of
        any given date shall mean the Capital Account established for each Member,
        pursuant to Article
        5
        and
        Exhibit B, as adjusted up to such date pursuant to this
        Agreement.

       

      1.13. “Capital
        Contribution”
        shall
        mean any contribution by a Member to the capital of the Company in cash or
        property, whenever made.

       

      1.14. “Catch-up
        Distribution”
        shall
        mean a distribution to the Class B Members in an amount equal to the
        product of (i) the Class B Members’ Percentage Interest, times
        (ii) total Construction Management Profits.

       

      1.15. “Class
        A Members”
        shall
        mean the Class A Member listed on Exhibit A attached hereto, and any Persons
        to
        which such Class A Member’s Membership Interest may be assigned, as
        permitted by Section 7.2.1.

       

      1.16. “Class
        B Members”
        shall
        mean the Class B Member listed on Exhibit A attached hereto, and any Persons
        to
        which such Class A Member’s Membership Interest may be assigned, as
        permitted by Section 7.2.1.

       

      1.17. “Code”
        shall
        mean the Internal Revenue Code of 1986, as amended, or corresponding provisions
        of subsequent superseding federal revenue laws. 

       

      1.18. “Compact”
        shall
        mean the Tribal-State Gaming Compact between the Tribe and the State of
        California, as amended and in effect on the date hereof, and as hereinafter
        amended, supplemented, restated or replaced.

       

      1.19. “Company”
        shall
        mean Buena Vista Development Company, LLC.

       

      1.20. “Confidential
        Information”
        is
        defined as all information, knowledge or data relating to the business of
        the
        Company, its clients and third parties doing business with the Company. This
        includes trade secrets, financial and pricing information, formulas, techniques
        and methods, business plans and strategies, internal correspondence, reports,
        software source code, memoranda, information regarding the equity ownership
        of
        the Company and other documents utilized internally by the Company, and any
        other material which by its nature or notice is intended to be confidential.
        Confidential Information shall not include any information that is in the
        public
        domain or otherwise publicly available (other than through the wrongful act
        of a
        Member).

       

      1.21. “Construction
        Management Profits”
        shall
        mean the amount of any and all compensation received by Wilmorite Inc. from
        the
        Tribe pursuant to the Construction Management Agreement dated as of December
        29,
        2004; provided, however, that reimbursable expenses reimbursed by the Tribe
        to
        Wilmorite, Inc. pursuant to Section 13.4 of the Construction Management
        Agreement shall not be included in computing Construction Management
        Profits.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        1.22. “Development
          Agreement”
          shall
          mean the Development Agreement dated as of December 29, 2004, between the
          Tribe
          and the Company.

         

      

      1.23. “Development
        Fee”
        shall
        mean the Development Fee payable under Section 6.1 of the Development
        Agreement.

       

      1.24. “Development
        Revenue”
        shall
        mean revenues of the Company (calculated in accordance with GAAP) derived
        from
        the Development Agreement, including but not limited to the Development Fee,
        Reimbursable Expenses and payments under the Interim Tribal Loan, and any
        other
        agreement between the Company and the Tribe.

       

      1.25. “Disputing
        Parties”
        shall
        have the meaning set forth in Section 10.1
        hereof.

       

      1.26. Intentionally
        Omitted.

       

      1.27. “Entity”
        shall
        mean any general partnership, limited partnership, limited liability company,
        corporation, joint venture, trust, business trust, cooperative, association,
        foreign trust or foreign business organization.

       

      1.28. “Effective
        Date”
        shall
        mean the date first set forth in the opening paragraph of this Agreement,
        which
        date shall also be deemed to be the execution date of this
        Agreement.

       

      1.29. “Fiscal
        Year”
        shall
        mean a calendar year.

       

      1.30. “GAAP”
        shall
        mean United States generally accepted accounting principles as in effect
        from
        time to time, applied on a consistent basis using the accrual method of
        accounting.

       

      1.31. “Gaming
        Authority”
        shall
        mean any national, state, tribal, local and other governmental, regulatory
        and
        administrative authority, agency, board, commission or official responsible
        for
        or involved in the regulation of gaming activities of the Company or its
        Members
        in any jurisdiction, including the Tribal Gaming Agency and the State Gaming
        Agency within the meaning of the Compact.

       

      1.32. “Gaming
        Laws”
        shall
        mean the Compact and the laws pursuant to which any Gaming Authority possesses
        regulatory, licensing or permit authority over gaming within any
        jurisdiction.

       

      1.33. “Gaming
        License”
        any
        license, permit, authorization, consent or favorable determination from or
        issued by a Gaming Authority pursuant to any Gaming Laws.

       

      1.34. “Initial
        Capital Contribution”
        shall
        mean the initial contribution to the capital of the Company by the Members
        in
        accordance with the terms of this Agreement, and as set forth on Exhibit
        A.

       

      1.35. “Interim
        Tribal Loan”
        shall
        have the meaning ascribed to such term in the Development
        Agreement.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
        1.36. “Investment
          Agreement”
          shall
          mean that Investment Agreement of even date herewith between CD&M and Nevada
          Gold.

         

      

      1.37. “Licensed
        Member”
        shall
        mean any Member to which a Gaming License has been granted, or to whose
        Affiliate a Gaming License has been granted.

       

      1.38. “Loan”
        shall
        mean the loan made or to be made by Nevada Gold to the Company pursuant to
        the
        Investment Agreement.

       

      1.39. “Majority
        in Class Interest”
        shall
        mean, with respect to any class of Membership Interest, fifty-one percent
        (51%)
        of the aggregate Percentage Interest in the Company designated as belonging
        to
        such class.

       

      1.40. “Majority
        in Interest”
        shall
        mean fifty-one percent (51%) of the aggregate Percentage Interests in the
        Company.

       

      1.41. “Managing
        Member”
        has the
        meaning given such term in Section
        4.1.

       

      1.42. “Member”
        shall
        mean each of the parties that executes a counterpart of this Agreement and
        each
        other Person that may become a Member from time to time with the consent
        of all
        of the Members.

       

      1.43. “Membership
        Interest”
        shall
        mean an interest in the Company, including a share of one or more of the
        Company’s Profits or Losses, distributions of the Company’s assets, and
        allocations obtained pursuant to this Agreement and the Act, together with
        the
        right to participate in the management of the business and affairs of the
        Company as set forth in this Agreement or the Act, including (to the extent
        granted pursuant to the terms of this Agreement) the right to vote on, consent
        to, or otherwise participate in any decision or action of or by the Members
        granted pursuant to this Agreement and the Act.

       

      1.44. “Net
        Development Revenue”
        shall
        mean Development Revenue and any other revenue of the Company, reduced by
        any
        cash debt repayments by the Company to Members or their Affiliates made in
        accordance with the priorities established in the Investment Agreement, and
        further reduced by Approved Expenses paid in cash. “Net Development Revenue
        Available for Distribution” shall mean all Net Development Revenue received by
        the Company and not previously distributed to Members.

       

      1.45. “Net
        Loss”
        shall
        mean the excess of the Company’s aggregate Losses over aggregate Profits for an
        accounting period.

       

      1.46. “Net
        Profit”
        shall
        mean the excess of the Company’s aggregate Profits over aggregate Losses for an
        accounting period.

       

      1.47. “Non-Compliant
        Member”
        shall
        have the meaning set forth in Sections 7.2.2.2
        or 7.2.2.3.2
        hereof,
        as applicable.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
        1.48. “Percentage
          Interest”
          shall
          mean, for any class of Members, the percentage interest in the Company
          as set
          forth on Exhibit A as that percentage may be changed from time to time
          in
          accordance with Section 2 of the Investment Agreement.

         

      

      1.49. “Person”
        shall
        mean any individual or Entity, and the heirs, executors, administrators,
        legal
        representatives, successors, and assigns of such “Person” where the context so
        permits.

       

      1.50. “Profits”
        and “Losses”
        shall
        mean the income, gain, loss, deductions and credits of the Company as determined
        in accordance with Exhibit B.

       

      1.51. “Reimbursable
        Expenses”
        shall
        have the meaning ascribed to such term in the Development
        Agreement.

       

      1.52. “Remaining
        Members”
        shall
        mean those Members remaining after a Member has withdrawn from the Company
        as a
        Member for any reason.

       

      1.53. “Special
        Allocations”
        are
        defined in Exhibit C attached hereto.

       

      1.54. “Treasury
        Regulations”
        shall
        include proposed, temporary and final regulations promulgated from time to
        time
        under corresponding provisions of the Code.

       

      1.55. “Tribe”
        shall
        mean the Buena Vista Rancheria of Me-Wuk Indians, a federally recognized
        Indian
        Tribe, and after the Assumption Date (as defined in the Development Agreement)
        shall include the Gaming Authority (as defined in the Development
        Agreement).

       

      1.56. “Trigger
        Date”
        shall
        mean the later of the date of receipt by the Company and receipt by all other
        Members of a notice from a Licensed Member under Sections 7.2.2.2
        or
7.2.2.3
        that it
        intends to exercise the rights set forth in Section 7.2.2.4.

       

      1.57. “Unsuitable
        Person”
        shall
        mean (i) any Person who, if the Person is an Affiliate of the Company
        or
        any Member, will cause the Company, any Member or any Affiliate of any Member
        (A) not to obtain any Gaming License, or (B) to have a Gaming License revoked
        or
        note renewed, or (ii) a Member who is properly determined by a second
        Member to be an Unsuitable Person in accordance with Sections 7.2.2.2
        or 7.2.2.3.2
        for
        reasons that remain unremedied.

       

      ARTICLE
        2.

      FORMATION
        OF THE COMPANY

       

      2.1. Formation.
        The
        Company has been organized as a New York limited liability company by executing
        and delivering Articles of Organization to the Office of the New York Secretary
        of State in accordance with and pursuant to the Act.

       

      2.2. Purpose.
        The
        purpose of the Company shall be to engage in and conduct any lawful activity
        for
        which limited liability companies may be organized under the Act; provided,
        however, that the prior written consent of all the Members shall be required
        before the Company engages in any material business other than in furtherance
        of
        its relationship with the Tribe.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
        2.3. Principal
          Place of Business.
          The
          principal place of business of the Company shall be located at Rochester,
          New
          York, or such other place as the Members shall designate in accordance
          with the
          Act.

         

      

      2.4. Registered
        Office and Registered Agent.
        The
        Company’s initial registered office shall be at 1265 Scottsville Road,
        Rochester, New York 14624, and thereafter at such other location as the Members
        may designate in accordance with the Act. The name of its initial registered
        agent shall be CT Corporation System and thereafter its registered agent
        shall
        be such person as the Members may designate in accordance with the
        Act.

       

      2.5. Term.
        The
        Company shall have perpetual existence, unless the Company is dissolved earlier
        pursuant to the provisions of this Agreement or the Act.

       

      2.6. Licensing.
        The
        Company shall become licensed to do business in any jurisdiction where it
        is
        necessary for the Company to become licensed to do business and shall comply
        with all Gaming Laws.

       

      2.7. Tax
        Classification.
        The
        Company intends to be classified as a partnership for federal and state tax
        purposes.

       

      ARTICLE
        3.

      ESTABLISHMENT
        OF CLASSES; RIGHTS AND OBLIGATIONS OF MEMBERS

       

      3.1. Establishment
        of Classes of Membership Interest.
        On the
        Effective Date there shall be Class A and Class B Membership Interests. Each
        class of Membership Interest shall have the relative rights, powers,
        preferences, privileges and duties as set forth in this Agreement. Subsequent
        to
        the Effective Date, the rights, powers, preferences, privileges and duties
        of a
        specific class of Membership Interest shall not be altered or amended without
        the consent of the Members holding a Majority in Class Interest of the class
        of
        Membership Interest to be affected by such amendment (which consent shall
        be in
        addition to any other vote required hereunder in order to amend this
        Agreement).

       

      3.2. Limitation
        of Liability.
        Each
        Member’s liability with respect to the Company shall be limited to the fullest
        extent provided in the Act, this Agreement, or any applicable law.

       

      3.3. Company
        Debt Liability.
        A
        Member shall not be personally liable for any debts, obligations, liabilities
        or
        losses of the Company beyond its Capital Contribution.

       

      3.4. Access
        to Information; Records.
        Each
        Member has the right to obtain from the Company from time to time upon
        reasonable demand for any purpose reasonably related to the Member’s interest as
        a Member of the Company:

       

      3.4.1. true
        and
        full information regarding the status of the business and financial condition
        of
        the Company;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        3.4.2. promptly
          after becoming available, a copy of the Company’s federal, state, and local
          income tax returns and all other tax returns deemed necessary and required
          for
          each jurisdiction in which the Company does business;

         

      

      3.4.3. a
        copy of
        any Company agreement, Articles of Organization, and all amendments
        thereto;

       

      3.4.4. true
        and
        full information regarding the amount of cash and a description and statement
        of
        the Agreed Value of any other property or services contributed by each Member
        or
        which the Member has agreed to contribute in the future to the Company, and
        the
        date on which each became a Member; and

       

      3.4.5. other
        information regarding the affairs of the Company as is reasonable or required
        to
        be provided to a Member under the Act.

       

      3.5. Right
        to Conduct Business with Company.
        Upon
        the consent of all of the Members, a Member may lend money to, borrow money
        from, act as a surety, guarantor or endorser for, guarantee or assume one
        or
        more specific obligations of, provide collateral for and transact other business
        with the Company, including entering into any contract with the Company on
        an
        arms’-length basis. Each of the Members on the date of this Agreement is
        conclusively deemed to have consented to the loans and other transactions
        between Members and the Company that are described and/or specifically approved
        in the Investment Agreement.

       

      3.6. Indemnification.
        The
        Company shall, to the fullest extent permitted by law, indemnify and hold
        harmless the Members from and against any and all claims and demands whatsoever
        in connection with the business of the Company. The Company shall advance
        indemnification payments, including legal fees and costs, that reasonably
        appear
        to be due hereunder upon the request of a party subject to indemnity hereunder
        and the execution by such party of a written agreement to return such payments
        in the event that the indemnification is ultimately determined not to be
        due
        such party hereunder.

       

      3.7. Confidentiality.
        Each
        Member agrees that such Member will not copy, distribute, disclose, or
        disseminate Confidential Information to anyone, except the Company’s employees
        or authorized agents who have a need to know such Confidential Information
        for
        the purpose for which it is disclosed or as may be required by applicable
        law,
        including but not limited to, applicable Gaming Laws and securities
        laws.

       

      3.8. Additional
        Members.
        The
        Company may admit additional Members with the consent of all of the existing
        Members. No new Members shall be (i) entitled to any retroactive allocation
        of
        the Company’s Profits or Losses or (ii) an Unsuitable Person.

       

      ARTICLE
        4.

      MANAGEMENT;
        MEETINGS; VOTING RIGHTS

       

      4.1. Managing
        Member.
        The
        Company’s business and affairs shall be managed by a Managing Member chosen by a
        Majority in Interest and as directed thereby. As of the Effective Date, the
        Managing Member shall be CD&M.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
        4.2. Duty
          of Good Faith.
          The
          Managing Member shall perform its management duties in good faith and in
          a
          manner such Managing Member reasonably believes to be in the Company’s best
          interests. The Managing Member’s liability for acts performed or omitted in such
          capacity shall be limited to the extent permitted by the Act and other
          relevant
          law. The Managing Member shall not be liable to the Company or any other
          Member
          unless any loss or damage suffered by the Company or such other Member
          was the
          result of the Managing Member’s bad faith, gross negligence, intentional
          misconduct, or a knowing violation of law.

         

      

      4.3. Meetings
        of the Members.
        The
        Company shall not be required to hold annual meetings of the Members. A meeting
        shall be held upon prior written request by a Majority in Class Interest
        of any
        class of Members, delivered to the Managing Member not more frequently than
        once
        each calendar quarter. A meeting may be held by conference among the Members
        using any means of communication permitted by the Act. For all meetings,
        Members
        holding a Majority in Interest shall constitute a quorum. Any action required
        or
        permitted to be taken at a meeting of Members may be taken without a meeting
        by
        written action signed by Members holding aggregate Percentage Interests that
        would be required to take the same action at a meeting. Such written action
        shall be effective when signed by the required Members. When written action
        is
        taken by fewer than all Members, but only if there is not a requirement of
        unanimity set forth in this Agreement, all Members shall be notified immediately
        of its text and effective date.

       

      4.4. Voting
        of Membership Interests.
        Each
        Member shall have a vote equal to such Member’s Percentage Interest in the
        Company.

       

      4.5. Required
        Vote.
        Unless
        a greater vote is required by the Act or is expressly provided for hereunder,
        the affirmative vote of a Majority in Interest of the Members entitled to
        vote
        shall be required to approve any proposed action with respect to which the
        Members are entitled to vote.

       

      4.6. Outside
        Businesses.
        Except
        as provided in any other agreement, any Member may engage in or possess an
        interest in other business ventures of any nature or description, independently
        or with others, similar or dissimilar to the business of the Company, and
        the
        Company and/or Members shall have no rights by virtue of this Agreement in
        and
        to such independent ventures or to the income or gains derived therefrom,
        and
        the pursuit of any such venture, even if competitive with the business of
        the
        Company, shall not be deemed wrongful or improper. No Member shall be obligated
        to present any particular investment opportunity to the Company even if such
        opportunity is of a character that, if presented to the Company, could be
        taken
        by the Company, and any Member shall have the right to take for his, her
        or its
        own account (individually or as a partner or fiduciary) or to recommend to
        others any such particular investment opportunity. Notwithstanding the
        foregoing, the Members hereby agree that any and all business activities
        related
        to the Tribe shall be conducted solely by and through the Company unless
        all of
        the Members consent to a Member’s engaging in business activities with the Tribe
        independent of the Company. 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      ARTICLE
        5.

      CONTRIBUTIONS
        TO THE COMPANY AND CAPITAL ACCOUNTS

       

      5.1. Initial
        Capital Contributions.
        Each
        Member has contributed the amount set forth next to its name on Exhibit A
        as its
        share of the Initial Capital Contribution.

       

      5.2. Additional
        Capital Contributions and Changes in Percentage Interests.
        Upon
        the consent of all of the Members, additional contributions may be made to
        the
        Company by the Members in proportion to their Percentage Interests; provided,
        however, that no Member shall be required to make additional contributions
        to
        the Company without such Member’s consent. 
        Upon any
        such contribution, the Percentage Interest of each Member shall be increased
        or
        decreased, as the case may be, as determined by all of the Members.

       

      5.3. Capital
        Accounts.
        Capital
        Accounts shall be maintained in accordance with Exhibit B.

       

      5.4. No
        Withdrawal or Reduction of Members’ Capital Contributions.
        A
        Member may not withdraw any or all of its Capital Contribution without the
        approval of all of the Members, which approval may be withheld for any reason.
        

       

      ARTICLE
        6.

      DISTRIBUTIONS,
        ALLOCATIONS, INCOME TAX, ELECTIONS

      AND
        REPORTS

       

      6.1. Distribution
        Rights of Members.
        No
        later than 5 business days following the close of each calendar month, Net
        Development Revenue Available for Distribution shall be distributed to the
        Members as follows:

       

      6.1.1. Distributions
        to Class B Member.
        First,
        to the Class B Members, pro-rata in accordance with their Class B Membership
        Interests an amount equal to the product of the Net Development Revenue
        Available for Distribution multiplied by the Class B Members’ Percentage
        Interest.

       

      6.1.2. Catch-up
        Distributions.
        Second,
        to the Class B Members, pro-rata in accordance with their Class B Membership
        Interests until such time as the Class B Members have received aggregate
        distributions under this Section
        6.1.2
        equal to
        the Catch-Up Distribution.

       

      6.1.3. Distributions
        to Class A Member.
        Third,
        after the Class B Members have received aggregate distributions under
Section
        6.1.2
        equal to
        the Catch-Up Distribution, the balance (after taking into account distributions
        under Section
        6.1.1)
        to the
        Class A members, pro-rata in accordance with their Class A Membership
        Interests.

       

      6.2. Allocations
        of Net Profit and Loss.
        Subject
        to Section
        6.3,
        Net
        Profit and Net Loss shall be allocated to the Members in accordance with
        their
        respective Percentage Interests.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      6.3. Special
        Allocations.
        Notwithstanding Section 6.2,
        Special
        Allocations shall be made to the Members in accordance with Exhibit C.
        

       

      6.4. Withheld
        Amounts.
        All
        amounts withheld pursuant to the Code or any provisions of state or local
        tax
        law with respect to any payment or distribution to the Members from the Company
        shall be treated as amounts distributed to the relevant Member or Members
        for
        purposes of Section
        6.1.
        

       

      6.5. Limitation
        upon Distributions.
        No
        distributions or return of Capital Contributions shall be made if, after
        the
        distribution or return of contribution is made, the liabilities of the Company
        (other than liabilities to Members on account of their Membership Interests,
        and
        liabilities for which the recourse of creditors is limited to specified property
        of the Company), exceed the fair value of the assets of the Company, provided
        that the fair value of property that is subject to a liability for which
        the
        recourse of creditors is limited, shall be included in the assets of the
        Company
        only to the extent that the fair value of that property exceeds that
        liability.

       

      6.6. Accounting
        Principles.
        The
        Company shall maintain books and records, which shall include statements
        of
        Profit and Loss and Capital Accounts, in accordance with this Agreement and
        GAAP.

       

      6.7. Accounting
        Period.
        The
        Company’s accounting period shall be from January 1 to December 31 of each
        year.

       

      6.8. Financial
        Statements.
        Within
        15 days after the end of each calendar quarter, the Company shall prepare
        and
        deliver to each Member an income/expense statement. In addition, within 45
        days
        after the end of each Fiscal Year, the Company shall prepare and deliver
        to each
        Member a financial statement which shall include a balance sheet, a profit
        and
        loss statement, and, with respect to the annual statements, a report of the
        Capital Accounts of the Members, including the Profits and Losses, and the
        share
        of the Profits and Losses of each Member for such period. The annual statements
        shall be reviewed by the accountants of the Company. Notwithstanding anything
        contained herein to the contrary, the Members shall have the right, at their
        own
        expense, (A) to review with the accountants the accounting methods and
        procedures to be used, and (B) to review and audit the books and records
        of the
        Company for the purpose of verifying any financial statements of the Company.
        If
        the audit of the books and records reflects more than a two percent error
        in the
        income or loss of the Company, then the Company shall reimburse the Member
        performing the audit all of such Member’s costs and expenses for the audit. In
        connection with such accounting methods, all decisions as to accounting
        principles, including any elections to be made by or for the Company under
        the
        provisions of the Code or other applicable tax law shall be determined by
        the
        Members upon the affirmative vote of a Majority in Interest, provided that
        all
        such accounting methods and principles shall be consistent with
        GAAP.

       

      6.9. Returns
        and Other Elections.
        The
        Members shall cause the preparation and timely filing of all tax returns
        required to be filed by the Company pursuant to the Code and all other tax
        returns deemed necessary and required in each jurisdiction in which the Company
        does business or is subject to taxation. Copies of such returns, or pertinent
        information therefrom, shall be furnished to the Members within a reasonable
        time after the end of the Fiscal Year upon the Members’ written request. All
        elections permitted to be made by the Company under Federal or state laws
        shall
        be made by the Members upon the affirmative vote of a Majority in Interest,
        except that the consent of all of the Members shall be required in order
        to
        elect not to treat the Company as a flow-through entity or partnership for
        tax
        purposes.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        6.10. Tax
          Matters Partner.
          The
          Class A Member is designated the “Tax Matters Partner” (as defined in Code
          Section 6231), and is authorized and required to represent the Company
          (at the
          Company’s expense) in connection with all examinations of the Company’s affairs
          by tax authorities, including, without limitation, administrative and judicial
          proceedings, and to expend Company funds for professional services and
          costs
          associated therewith. The Members agree to cooperate with each other and
          to do
          or refrain from doing any and all things reasonably required to conduct
          such
          proceedings.

         

      

      ARTICLE
        7.

      TRANSFERABILITY

       

      7.1. General
        Conditions on Assignments.
        No
        assignment of a Membership Interest after the date of this Agreement will
        be
        effective unless all of the conditions set forth below are
        satisfied:

       

      7.1.1. Unless
        waived by the Company, the assignor signs and delivers to the Company an
        undertaking in form and substance satisfactory to the Company to pay all
        reasonable expenses incurred by the Company in connection with the assignment
        (including, but not limited to, reasonable fees of counsel and accountants
        and
        the costs to be incurred with any additional accounting required in connection
        with the assignment, and the cost and fees attributable to preparing, filing
        and
        recording such amendments to the organizational documents or filings as may
        be
        required by law);

       

      7.1.2. Such
        assignment does not require the registration of such assigned Membership
        Interests pursuant to any applicable federal or state securities laws, and
        the
        assignor delivers to the Company an opinion of counsel for the assignor
        satisfactory in form and substance to the Company to the effect that the
        assignment of the Membership Interest is in compliance with the applicable
        federal and state securities laws, and a statement of the assignee in form
        and
        substance satisfactory to the Company making appropriate representations
        and
        warranties in respect to compliance with the applicable federal and state
        securities laws and as to any other matter reasonably required by the
        Company;

       

      7.1.3. The
        Company receives an opinion from its counsel that (i) the assignment
        does
        not cause the Company to lose its classification as a partnership for federal
        or
        state income tax purposes, and (ii) unless waived by the Company,
        the
        assignment, together with all other assignments within the preceding twelve
        months, does not cause a termination of the Company for federal or state
        income
        tax purposes;

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        7.1.4. The
          assignor signs and delivers to the Company a copy of the assignment of
          the
          Membership Interests to the assignee, together with the certificates
          representing such Membership Interests, duly executed for
          assignment;

         

      

      7.1.5. The
        assignee signs and delivers to the Company its agreement to be bound by this
        Agreement;

       

      7.1.6. Such
        assignment does not cause the Company to become a “Publicly Traded Partnership,”
        as such term is defined in Sections 469(k)(2) or 7704(b) of the
        Code;

       

      7.1.7. Such
        assignment does not subject the Company to regulation under the Investment
        Company Act of 1940, the Investment Advisers Act of 1940 or the Employee
        Retirement Income Security Act of 1974, each as amended;

       

      7.1.8. Such
        assignment is not made to an Unsuitable Person and is in compliance with
        any and
        all applicable gaming acts and regulations now or hereafter existing in the
        State of California, including a finding of suitability of such assignee
        or any
        owners or beneficial owners of such assignee;

       

      7.1.9. Such
        assignment is not made to any Person who lacks the legal right, power or
        capacity to own such Membership Interest; and

       

      7.1.10. The
        assignment is in compliance with the other provisions of this
        Agreement.

       

      7.2. Assignment.
        A
        Membership Interest may be assigned only in accordance with this Section
        and in
        compliance with all applicable Gaming Laws.

       

      7.2.1. Voluntary
        Assignment.
        A
        Member or assignee thereof may assign all or a portion of its Membership
        Interest only upon the consent of all of the Members, provided, however,
        such
        consent shall not be required in connection with the merger or consolidation
        by
        the publicly held parent company of Nevada Gold with another party that is
        not
        an Unsuitable Person or, so long as it does not cause the Company to become
        an
        Unsuitable Person, the sale or transfer of all or substantially all of the
        assets of the publicly held parent company of Nevada Gold. Any transfer of
        all
        or any part of a Member’s interest without the consent of all of the Members as
        required by this Section shall be null and void.

       

      7.2.2. Finding
        of Unsuitability and Buy-Out.

       

      7.2.2.1.
        No
        Unsuitability Knowledge.
        Each
        Member represents to the other that it is not aware of any facts or
        circumstances which would make it an Unsuitable Person.

       

      7.2.2.2.
        Regulatory
        Compliance in the State of California.
        Each
        Member acknowledges that it and its Affiliates will be subject to licensing
        and
        other regulatory review and approval procedures by California Regulatory
        Authorities. Each Member agrees to cooperate fully and to cause its Affiliates
        to cooperate fully with the representatives of all California Regulatory
        Authorities. If any California Regulatory Authority determines at any time
        that
        a necessary Gaming License will not be issued or renewed for the Company,
        or
        must be revoked, as a result of a Member’s, or a Member’s Affiliate’s
        relationship to the Company or a Member, then such Member shall, if possible,
        remedy or cause its Affiliate to remedy the condition that gave rise to such
        determination to the satisfaction of the California Regulatory Authority.
        If the
        Member (the “Non-Compliant Member”) does not remedy the condition that gave rise
        to such determination prior to the expiration of the period prescribed by
        the
        California Regulatory Authority, then the Licensed Member may provide written
        notice to the Non-Compliant Member that it is an Unsuitable Person, and of
        its
        intention to exercise the provisions set forth in Section 7.2.2.4.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      7.2.2.3.
        Gaming
        Regulations in Jurisdictions Outside of California.

       

      7.2.2.3.1.
        Each Member acknowledges that each other Member and its Affiliates may or
        will
        be a Licensed Member because of Gaming Licenses related to Gaming Authorities
        other than California Regulatory Authorities. Each Member acknowledges that
        the
        issuance and maintenance of Gaming Licenses are highly regulated by these
        other
        Gaming Authorities and that the laws of applicable jurisdictions may require
        a
        Licensed Member to disclose private or otherwise confidential information
        about
        the other Members and their respective Affiliates. If requested to do so
        by a
        Licensed Member, any other Member shall obtain any Gaming License,
        qualification, clearance or the like which shall be requested or required
        of
        such other Member by any Gaming Authority having jurisdiction over the Licensed
        Member.

       

      7.2.2.3.2.
        All Members acknowledge and agree that if a Gaming Authority shall determine
        that any Member or any of its Affiliates (a) is or might be engaged
        in, or
        is about to be engaged in, any activity or activities, or (b) was
        or is
        involved in a relationship with any Person, and if as a result of such
        determination any Gaming Authority (i) fails to issue a Gaming License,
        (ii) fails to grant or renew any required or requested Gaming License
        or
        related application upon terms and conditions which are in the Licensed Member’s
        reasonable discretion acceptable to the Licensed Member, (iii) unreasonably
        delays any Gaming License sought by the Licensed Member, (iv)  conditions
        any Gaming License sought by the Licensed Member upon terms and conditions
        which
        are in the Licensed Member’s reasonable discretion not acceptable to the
        Licensed Member, (v) revokes any Gaming License, or (vi) disciplines,
        in any manner, the Licensed Member, then such other Member (the “Non-Compliant
        Member”) shall immediately (A) terminate any relationship with the Person
        which is the source of the problem, or (B) cease the activity creating
        the
        problem. In the event that the Non-Compliant Member does not comply with
        item
        (A) or (B) above, then the Licensed Member may provide written notice to
        the
        Non-Compliant Member that it is an Unsuitable Person, and of its intention
        to
        exercise the provisions set forth in Section 7.2.2.4.

       

      
        
          
          

        

        
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        7.2.2.4.
          Buy-Out
          Provisions.

         

      

      7.2.2.4.1.
        In the event of an unremedied finding that a Member is an Unsuitable Person
        and
        the sending of notice by a Licensed Member of its intention to exercise the
        rights set forth in this Section 7.2.2.4,
        the
        provisions of this Section 7.2.2.4
        shall
        apply, notwithstanding any other provision herein to the contrary.

       

      7.2.2.4.2.
        During the period commencing with the Trigger Date and ending with the transfer
        or sale of the Affected Member’s Membership Interest pursuant to a subsection of
        this Section 7.2.2.4,
        (i) the Company shall not be required or permitted to pay any distribution
        or interest with regard to the Membership Interests and the amount of such
        distributions or interest shall be held in escrow by the Company, (ii) the
        holder of such Membership Interests shall not be entitled to vote on any
        matter,
        and (iii) the Company shall not pay any remuneration in any form to
        the
        holder of the Membership Interests except in exchange for such Membership
        Interests as provided in Section 7.2.2.4.6.
        Upon
        any sale or transfer of the Affected Member’s Membership Interest in accordance
        herewith, all voting rights shall be reinstated with respect to the Membership
        Interest and all amounts held in escrow shall be applied to pay to the Affected
        Member the purchase price of the Membership Interest.

       

      7.2.2.4.3.
        For a period of 120 days following the Trigger Date (or such shorter period
        of
        time as the California Regulatory Authority or the Gaming Authority, as
        applicable, otherwise allows), the Affected Member shall have the option
        to
        transfer its Membership Interest to an immediate family member of an individual
        who, together with other immediate family members, owns at least 50% of such
        Member, directly or indirectly, or a trust, partnership, or other entity
        established for the benefit of one or more such immediate family members;
        provided that such transfer meets the requirements of Section 7.1.

       

      7.2.2.4.4.
        For a period of 120 days following the Trigger Date (or such shorter period
        of
        time as the California Regulatory Authority or the Gaming Authority, as
        applicable, otherwise allows), the Affected Member shall have the right to
        sell
        its Membership Interest to a third party for cash, subject to the provisions
        of
Section 7.1
        and
        the
        right of first refusal in favor of the other Members pursuant to and in
        accordance with the terms of Section 7.2.2.4.8.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      
        7.2.2.4.5.
          If the Affected Member has not given notice to the other Members on or
          before
          120 days following the Trigger Date (or such shorter period of time as
          the
          California Regulatory Authority or the Gaming Authority, as applicable,
          otherwise allows), that the Membership Interest of the Affected Member
          has been
          transferred to a family member as permitted in Section 7.2.2.4.3
          or that
          a third party (who is permitted to receive an assignment of the Membership
          Interest pursuant to Section 7.1),
          has
          entered into a binding agreement to purchase the Membership Interest for
          cash,
          or if the cash purchase is not consummated within the period provided in
          Section 7.2.2.4.8,
          any one
          or more of the remaining Members may purchase the Membership Interest by
          giving
          written notice of such Member’s or Members’ purchase intent to the Company and
          the Affected Member. The price of this purchase shall be an amount equal
          to the
          sum of (a) the outstanding principal balance of and accrued and
          unpaid
          interest on the Affected Member’s loans to the Company, plus (b) the Agreed
          Value of the Affected Member’s Membership Interest as of the Trigger Date. Such
          purchase price shall be payable, without interest on the Agreed Value of
          the
          Affected Member’s Membership Interest but with interest on the Affected Member’s
          loans to the Company, by the Company applying the distributions of purchasing
          Member or Members from the Company to pay the Affected Member until the
          purchase
          price has been paid in full.

         

      

      7.2.2.4.6.
        In the event that the Affected Member does not give proper notice that it
        is
        transferring its Membership Interest to a family member as permitted by
Section 7.2.2.4.3
        or that
        it has entered into a binding agreement to sell its Membership Interest pursuant
        to Section 7.2.2.4.4,
        or if,
        in the case of a sale, the cash purchase is not consummated within the period
        provided in Section 7.2.2.4.8,
        and if
        no Member chooses to purchase the Membership Interest as provided for in
        Section 7.2.2.4.5,
        the
        Majority in Interest of the remaining Members may choose to continue the
        business of the Company. In such event, the Company shall repay any loans
        owed
        to the Unsuitable Person and shall repurchase the Unsuitable Person’s Membership
        Interest for its Agreed Value plus any escrowed amounts under Section
        7.2.2.4.2.
        The
        Company shall repay the Unsuitable Person’s loans when the Company receives cash
        payments that the Company would have been required to use to repay loans
        made by
        the Unsuitable Person, had the Unsuitable Person remained a Member. The Agreed
        Value of the Unsuitable Person’s Membership Interest (without interest) shall be
        payable when the Company receives cash payments that the Company would have
        been
        required to distribute to all Members under Section
        3.4,
        had the
        Unsuitable Person remained a Member.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      7.2.2.4.7.
        In the event that the Majority in Interest of the remaining Members decides
        not
        to continue the business of the Company, the Company shall be
        dissolved.

       

      7.2.2.4.8.
        Prior to any assignment of a Membership Interest to a third party pursuant
        to
Section 7.2.2.4.5,
        the
        Affected Member must obtain a written offer to purchase for cash meeting
        the
        requirements of this Section (a “Third Party Offer”). The Third Party Offer must
        not be subject to unstated conditions or contingencies or be part of a larger
        transaction such that the price for the Membership Interests stated in such
        Third Party Offer does not accurately reflect fair market value (reduced
        by the
        amount of associated liabilities of such Membership Interests). The Third
        Party
        Offer must contain a description of all of the consideration, material terms
        and
        conditions of the proposed assignment. The Affected Member must give notice
        of
        the Third Party Offer to the Company and all other Members, together with
        a
        written offer to sell the Membership Interests (which is the subject of the
        Third Party Offer) to the other Members on the same price and terms as the
        Third
        Party Offer as provided herein. The other Members shall have the right, on
        a pro
        rata basis in accordance with the ratio of their Percentage Interests to
        total
        Percentage Interests held by the other Members, to purchase, in whole but
        not in
        part, the Membership Interests of the Affected Member in accordance with
        the
        terms of the Third Party Offer by giving notice to the Affected Member within
        30
        days after notice of such offer. Unless otherwise agreed, the closing of
        such
        sale will be held at the Company’s principal place of business in Rochester, New
        York on a date to be specified by the assignees which is not later than 120
        days
        after the date of the notice of acceptance by the assignees. At the closing,
        the
        assignees will deliver the consideration in accordance with the terms of
        the
        Third Party Offer, and the Affected Member will by appropriate documents
        assign
        to the assignees the Membership Interests to be sold, free and clear of all
        liens, claims and encumbrances. If all of the other Members reject the right
        of
        first refusal or if the acceptance of the right of first refusal is not closed
        in accordance with this Section 7.2.2.4.8,
        the
        Affected Member will be free for a period of 60 days after the last
        day for
        such acceptance to sell all, but not less than all, of such Membership Interests
        so offered, but only to the third party for a price and on terms no more
        favorable to the third party than the Third Party Offer and subject to
Section 7.1.
        If such
        Membership Interests are not so sold within such 60-day period (or within
        any
        extensions of such period agreed to in writing by the non-selling members),
        all
        rights to sell such Membership Interests pursuant to such Third Party Offer
        (without making another offer to the other Members pursuant to this Section 7.2.2.4.8)
        will
        terminate.

       

      7.3. Rights
        of Assignee.
        An
        assignee that does not become a Member shall not have the rights of a Member
        except that so long as the assignee is not an Unsuitable Person, the assignee
        shall be entitled to share in Profits and Losses, to receive such distribution
        or distributions, and to receive such allocation of Net Profit or Net Loss
        to
        which the assignor was entitled, to the extent assigned to the assignee.
        An
        assignee that does become a Member shall have all the rights, duties and
        liabilities under this Agreement of its assignor, except liabilities not
        reasonably known to him upon the assignment and which could not be ascertained
        from the Agreement.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      7.4. Death
        or Incompetency.
        If a
        Member who is an individual dies or a court of competent jurisdiction adjudges
        him to be incompetent to manage his person or his property, such Member’s
        executor, administrator, guardian, conservator or other legal representative
        may
        exercise all of the Member’s rights for the purpose of settling his estate or
        administering his property, including any power under this Agreement of an
        assignee that becomes a Member. If the Member is a corporation, trust or
        other
        Entity and is dissolved or terminated, the powers of that Member may be
        exercised by its legal representative or successor.

       

      ARTICLE
        8.

      DISSOLUTION
        AND TERMINATION

       

      8.1. Dissolution.
        The
        Company shall be dissolved and its affairs shall be wound up upon the occurrence
        of any of the following events:

       

      8.1.1. an
        election to dissolve the Company by all of the Members; 

       

      8.1.2. any
        event
        that is a termination of a limited liability company under the Act;
        or

       

      8.1.3. the
        death, retirement, resignation, expulsion, bankruptcy or dissolution of a
        Member
        or the occurrence of any other event that terminates the continued membership
        of
        the Member of the Company, unless the business of the Company is continued
        by
        the consent of a majority of the Remaining Members within ninety (90) days
        of
        the occurrence of the terminating event. 

       

      8.2. Winding
        Up, Liquidation and Distribution of Assets.
        

       

      8.2.1. Upon
        the
        occurrence of an event terminating the Company and if the Members do not
        continue the business of the Company, an accounting shall be made by the
        Company’s independent accountants of the accounts of the Company and of the
        Company’s assets, liabilities and operations, from the date of the last previous
        accounting until the date of dissolution. The Company’s creditors shall be paid
        in satisfaction of the liabilities of the Company (and loans by Members will
        be
        paid in the priority set forth in the Investment Agreement) and its assets
        shall
        be distributed as soon as practicable. To the extent that the Company has
        assets
        remaining after the satisfaction of its liabilities, such assets shall be
        distributed to the Members in the manner specified in Section 6.1,
        and for
        this purpose, any and all assets of the Company shall be deemed to be Net
        Development Revenues Available for Distribution.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      
        8.2.2. If
          any
          asset is to be distributed in kind, the Members’ Capital Accounts shall be
          adjusted as provided for in Section
          5.3
          hereof
          (consistent with the requirements of Regulation Section 1.704-1(b)(2)(iv)
          under
          Section 704 of the Code) before any such distribution is made to reflect
          the
          increases or decreases to said Capital Accounts which would have occurred
          if
          such asset to be distributed in kind had been sold for its fair market
          value by
          the Company immediately prior to such distribution. All such liquidating
          distributions shall be made by the end of the taxable year of the Company
          in
          which there is a liquidation of the Company for purposes of paragraphs
          (b)(2)(ii)(b) and (b)(2)(ii)(g) of Regulation Section 1.704-1 under Code
          Section
          704 or, if later, within 60 days after the date of such liquidation

         

      

      8.3. Deficit
        Account.
        Notwithstanding anything to the contrary contained herein, upon a liquidation
        within the meaning of Treasury Regulation § 1.704-1(b)(2)(ii)(g), if any Member
        has an Adjusted Deficit Capital Account (after giving effect to all
        contributions, distributions, allocations and other Capital Account adjustments
        for all taxable years, including the year during which such liquidation occurs),
        such Member shall have no obligation to make any Capital Contribution, and
        the
        negative balance of such Member’s Adjusted Capital Account shall not be
        considered a debt owed by such Member to the Company or to any other Person
        for
        any purpose whatsoever. 

       

      8.4. Articles
        of Dissolution.
        When
        all debts, liabilities and obligations of the Company have been paid and
        discharged or adequate provisions have been made therefor and all of the
        remaining property and assets of the Company have been distributed, Articles
        of
        Dissolution shall be executed and filed with the Office of the New York
        Secretary of State as required by the Act.

       

      8.5. Effect
        of Filing Articles of Dissolution.
        Upon
        the filing of Articles of Dissolution with the Office of the New York Secretary
        of State, the existence of the Company shall cease, except for the purpose
        of
        suits, other proceedings and appropriate action as provided in the Act. The
        Members shall have authority to distribute any Company property discovered
        after
        dissolution, convey real estate and take such other action as may be necessary
        on behalf of and in the name of the Company. In no event shall any Member
        conduct business on behalf of the Company after Articles of Dissolution have
        been filed with the Office of the New York Secretary of State.

       

      8.6. Return
        of Contribution Nonrecourse to Other Members.
        Except
        as provided by law, or by separate agreement between the parties, upon
        dissolution, each Member shall look solely to the assets of the Company for
        the
        return of its Capital Contribution. If the Company’s property remaining after
        the payment or discharge of the debts and liabilities of the Company is
        insufficient to return the cash contribution of one or more Members, such
        Members shall have no recourse against any other Member, except as otherwise
        provided by law.

      
 

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
        ARTICLE
          9.

      

      AMENDMENTS

       

      9.1. Amendments.
        Except
        as otherwise specifically provided herein, this Agreement may only be amended
        upon the consent of all of the Members. 

       

      ARTICLE
        10.

      DISPUTE
        RESOLUTION AND ARBITRATION

       

      10.1. Dispute
        Resolution.
        In the
        event that a dispute arises between Members or between Members and the Company
        (“Disputing Parties”) that is related to this Agreement or the Company, the
        Disputing Parties shall attempt in good faith to resolve any dispute promptly
        by
        negotiations between representatives with authority to settle the dispute.
        If
        the matter has not been resolved within thirty (30) days of the first day
        of
        such negotiations, any Disputing Party may initiate arbitration as provided
        in
Section
        10.2
        of this
        Agreement. All negotiations pursuant to this clause will be confidential
        and
        will be treated as compromise and settlement negotiations under the U.S.
        Federal
        Rules of Evidence.

       

      10.2. Arbitration.
        Any
        dispute arising out of or relating to this Agreement or the Company that
        is not
        resolved pursuant to Section
        10.1
        shall be
        finally settled by arbitration conducted in accordance with the Rules of
        the
        American Arbitration Association. Any such arbitration shall be conducted
        before
        a single arbitrator selected in accordance with such rules. Any such arbitration
        shall take place in Rochester, New York. The arbitrator shall not alter,
        amend
        or modify the terms and conditions of this Agreement, but shall consider
        the
        pertinent facts and circumstances and be guided by the terms and conditions
        of
        this Agreement, which shall be binding upon them in resolving any dispute
        or
        controversy hereunder. The cost of the arbitration hereunder, including the
        cost
        of the record of transcripts (if any), the arbitrator’s fees, administrative
        fees, attorney’s fees, and all other fees involved, shall be paid by the
        Disputing Party determined by the arbitrator to be the non-prevailing Disputing
        Party, or otherwise allocated in an equitable manner as determined by the
        arbitrator.

       

      10.3. Binding
        Decision.
        The
        decision by the arbitrator shall be binding and conclusive on the Disputing
        Parties and their successors and assigns, and the parties shall comply with
        such
        decision in good faith. The decision or award of the arbitrator may be entered
        in any state or federal court having jurisdiction to enforce the judgment.
        The
        Disputing Parties shall be deemed to have consented to venue and personal
        jurisdiction in the jurisdictions provided in this Section.

       

      ARTICLE
        11.

      MISCELLANEOUS
        PROVISIONS

       

      11.1. Notices.
        Any
        required notice (including for meetings of the Members) shall be delivered
        personally or by facsimile transmission, electronic mail or any other electronic
        means, United States mail or courier to each Person entitled to such notice
        at
        its business address. Notice by mail shall be deemed to be given when deposited
        in the United States mail properly addressed, with postage thereon prepaid.
        Facsimile transmission notice shall be deemed to be given upon completion
        of the
        transmission of the message to the number given to the Company by the Person
        entitled to such notice and receipt of a completed answer-back indicating
        receipt. Electronic notice shall be deemed to have been given when transmitted.
        Notice given personally or by courier shall be deemed to have been given
        when
        actually delivered. Neither the business to be transacted at, nor the purpose
        of, any annual or special meeting of the Members need be stated in the notice,
        unless specifically required by statute or this Agreement.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      11.2. Application
        of New York Law.
        This
        Agreement and its interpretation shall be governed exclusively by its terms
        and
        by the laws of the State of New York, and specifically the Act. This Agreement
        and the Investment Agreement have been partially negotiated in New York and
        the
        parties have signed this Agreement and the Investment Agreement in New York.
        All
        payments due to Nevada Gold hereunder shall be made to an account in New
        York
        designated by Nevada Gold.

       

      11.3. Further
        Agreements.
        Each
        Member hereby agrees to execute such other and further statements of interest
        and holdings, designations and other instruments necessary to comply with
        any
        laws, rules or regulations.

       

      11.4. Construction.
        Whenever the singular number is used in this Agreement and when required
        by the
        context, the same shall include the plural and vice versa, and the masculine
        gender shall include the feminine and neuter genders and vice versa. All
        references to Articles, Sections, Exhibits and the like shall refer to this
        Agreement, unless specified otherwise.

       

      11.5. Headings.
        The
        headings in this Agreement are inserted for convenience only and are in no
        way
        intended to describe, interpret, define, or limit the scope, extent or intent
        of
        this Agreement or any provision hereof.

       

      11.6. Waivers.
        No
        failure or delay on the part of any Member in exercising any power or right
        under this Agreement or the Act shall operate as a waiver thereof, nor shall
        any
        single or partial exercise of any such power or right preclude any other
        or
        further exercise thereof or the exercise of any other power or right. Any
        waiver
        hereunder must be express and in writing by the party agreeing to waive any
        right hereunder.

       

      11.7. Rights
        and Remedies Cumulative.
        The
        rights and remedies provided by this Agreement are cumulative and the use
        of any
        one right or remedy by any party shall not preclude or waive the right to
        use
        any other remedy. Said rights and remedies are given in addition to any other
        legal rights the parties may have.

       

      11.8. Severability.
        If any
        provision of this Agreement or the application thereof to any person or
        circumstance shall be invalid, illegal or unenforceable to any extent, the
        remainder of this Agreement and the application thereof shall not be affected
        and shall be enforceable to the fullest extent permitted by law.

       

      11.9. Heirs,
        Successors and Assigns.
        Each
        and all of the covenants, terms, provisions and agreements herein contained
        shall be binding upon and inure to the benefit of the parties hereto and,
        to the
        extent permitted by this Agreement, their respective heirs, legal
        representatives, successors and assigns.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      
        11.10. Third
          Parties.
          None of
          the provisions of this Agreement shall be for the benefit of or enforceable
          by
          any creditors of the Company (other than a Member) or any other third
          party.

         

      

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

       

      11.12. Material
        Contracts.
        Every
        material contract and agreement obligating the Company, or to which the Company
        may become a party, or by which it may be bound, shall be in
        writing.

       

      11.13. Entire
        Agreement.
        This
        Agreement, including any Exhibits presently or subsequently attached hereto,
        and
        the Investment Agreement constitute, collectively, the entire agreement between
        the parties hereto with respect to the subject matter hereof, and supersede
        all
        prior agreements and amendments, whether written or oral, between the parties
        with respect to the subject matter hereto.

       

      

      [SIGNATURE
        PAGE FOLLOWS]

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the undersigned Members have caused their signatures, or
        the
        signatures of their duly authorized representatives, to be set forth below
        on
        the day and year first above written in New York.

      

      

      CLASS
        A MEMBER:

       

      Casino
        Development & Management Company, LLC

      By:
        CDM
        Management, LLC, its Managing Member

      

      

      By:
        ___________________________________

      Thomas
        C.
        Wilmot, Sr.

      Its:
        Manager

      

      

      STATE
        OF
        ___________________ )

                                                                       
        )
        ss

      COUNTY
        OF
        _________________  )

      

      The
        foregoing instrument was acknowledged before me this ___ day of April, 2005,
        by
        Thomas C. Wilmot, Sr., as the Manager of CDM Management, LLC, a New York
        limited
        liability company, on behalf of said company.

      

      _____________________________________

      Notary
        Public

      

       

       

      

      

      (Signature
        Page 1 of 2 to Amended and Restated Operating Agreement)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        CLASS
          B MEMBER:

      

      Nevada
        Gold BVR, L.L.C.

      By:
        Nevada Gold & Casinos, Inc., its Sole Member

      

      

      By:
        ____________________________________

      Cathryn
        L. Porter

      Its:
        General Counsel and Secretary

      

      

      STATE
        OF
        ___________________ )

                                                                       
        )
        ss

      COUNTY
        OF
        _________________ )

      

      The
        foregoing instrument was acknowledged before me this ___ day of April, 2005,
        by
        Cathryn L. Porter, as the General Counsel and Secretary of Nevada Gold &
        Casinos, Inc. the sole member of Nevada Gold BVR, L.L.C., on behalf of said
        company.

       

                                      _____________________________________

      
        Notary
          Public

        

      

      

       

      

      

      

      

      (Signature
        Page 2 of 2 to Amended and Restated Operating Agreement)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        A

      

      Initial
        Capital Contributions and Percentage Interests

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Exhibit
        B

       

      Capital
        Accounts

      

      A
        separate Capital Account will be maintained for each Member. Each Member’s
        Capital Account will be increased by (1) the amount of money contributed
        by
        such Member to the Company; (2) the Agreed Value of property contributed
        by
        such Member to the Company (net of liabilities secured by such contributed
        property that the Company is considered to assume or take subject to under
        Code
        Section 752); and (3) allocations to such Member of Net Profit. Each
        Member’s Capital Account will be decreased by (1) the amount of money
        distributed to such Member by the Company; (2) the Agreed Value of
        property
        distributed to such Member by the Company (net of liabilities secured by
        such
        distributed property that such Member is considered to assume or take subject
        to
        under Code Section 752); and (3) allocations to the account of such
        Member
        of Net Loss as set forth in the Treasury Regulations.

       

      In
        the
        event of a permitted sale or exchange of a Membership Interest in the Company,
        the Capital Account of the transferor shall become the Capital Account of
        the
        transferee to the extent it relates to the transferred Membership Interest
        in
        accordance with Treasury Regulation § 1.704-1(b)(2)(iv).

       

      The
        manner in which Capital Accounts are to be maintained pursuant to this
Exhibit B
        is
        intended to comply with the requirements of Code Section 704(b) and the Treasury
        Regulations promulgated thereunder. If the Company determines that the manner
        in
        which Capital Accounts are to be maintained pursuant to the preceding provisions
        of this Exhibit B
        should
        be modified in order to comply with Code Section 704(b) and the Treasury
        Regulations, then notwithstanding anything to the contrary contained in the
        preceding provisions of this Exhibit, the method in which Capital Accounts
        are
        maintained shall be so modified; provided, however, that any change in the
        manner of maintaining Capital Accounts shall not materially alter the economic
        agreement between or among the Members as set forth in the
        Agreement.

       

      Except
        as
        otherwise required in the Act, no Member shall have any liability to restore
        all
        or any portion of a deficit balance in such Member’s Capital
        Account.

       

      For
        purposes of maintaining the Capital Account, “Net Profit” is any excess of
        aggregate “Profits” over aggregate “Losses” for an accounting period, and “Net
        Loss” is any excess of aggregate “Losses” over aggregate “Profits” for an
        accounting period. “Profits” and “Losses” means, for each accounting period, an
        amount equal to the Company’s taxable income or loss (including any amounts of
        the Company’s gross income, loss, gain or deduction which may be specifically
        allowed pursuant to the provisions of Exhibit C
        hereto
        and losses and deductions described in Treasury Regulation
§ 1.704-1(b)(2)(iv)(g)) for such year period, determined in accordance
        with
        Code Section 703(a) (for this purpose, all items of income, gain,
        loss, or
        deduction required to be stated separately pursuant to Code
        Section 703(a)(1) shall be included in taxable income or loss), with
        the
        following adjustments:

       

      (i)Any
        income of the Company that is exempt from federal income tax and not otherwise
        taken into account in computing Profits and Losses pursuant to this paragraph
        shall be added to such taxable income or loss;

       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

       

      (ii)Any
        expenditures of the Company described in Code Section 705(a)(2)(B)
        or
        treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury
        Regulation § 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in
        computing Profits or Losses pursuant to this paragraph shall be subtracted
        from
        such taxable income or loss;

       

      (iii)In
        the
        event the Agreed Value of any Company asset is adjusted pursuant to Exhibit C,
        paragraph 11 thereof, the amount of such adjustment shall be taken into account
        as gain or loss from the disposition of such asset for purposes of computing
        Profits or Losses;

       

      (iv)Gain
        or
        loss resulting from any disposition of Company property with respect to which
        gain or loss is recognized for federal income tax purposes shall be computed
        by
        reference to the Agreed Value of the property disposed of, notwithstanding
        that
        the adjusted tax basis of such property differs from its Agreed
        Value;

       

      (v)If
        the
        Agreed Value of any Company property differs from its adjusted tax basis,
        then
        in lieu of the depreciation, amortization, and other cost recovery deductions
        taken into account in computing such taxable income or loss, there shall
        be
        taken into account depreciation for such fiscal year or other period, based
        on
        the Agreed Value;

       

      (vi)To
        the
        extent an adjustment to the adjusted tax basis of any Company asset pursuant
        to
        Code Section 734(b) or Code Section 743(b) is required pursuant
        to
        Treasury Regulation § 1.704-1(b)(2)(iv)(m)(4) to be taken into account in
        determining Capital Accounts as a result of a distribution other than in
        liquidation of a Member’s interest in the Company, the amount of such adjustment
        shall be treated as an item of gain (if the adjustment increases the basis
        of
        the asset) or loss (if the adjustment decreases the basis of the asset) from
        the
        disposition of the asset and shall be taken into account for purposes of
        computing Profits or Losses.

       

      

       

      

      
        
          
          

        

        
          B-2

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        C

      

      Special
        Allocations

      

      1. In
        the
        event any Member unexpectedly receives any adjustments, allocations, or
        distributions described in Treasury Regulation §§ 1.704-1(b)(2)(ii)(d)(4), (5),
        (6), which create or increase an Adjusted Deficit Capital Account of such
        Member, then items of Company income and gain (consisting of a pro
        rata
        portion
        of each item of Company income, including gross income, and gain for such
        year
        and, if necessary, for subsequent years) shall be specially credited to the
        Capital Account of such Member in an amount and manner sufficient to eliminate,
        to the extent required by the Treasury Regulations, the Adjusted Deficit
        Capital
        Account so created as quickly as possible. It is the intent that this Exhibit
        be
        interpreted to comply with the alternate test for economic effect set forth
        in
        Treasury Regulation § 1.704-1(b)(2)(ii)(d).

       

      2. In
        the
        event any Member would have an Adjusted Deficit Capital Account at the end
        of
        any Company taxable year, the Capital Account of such Member shall be specially
        credited with items of Membership income (including gross income) and gain
        in
        the amount of such excess as quickly as possible.

       

      3. If
        there
        is a net decrease in the Company’s minimum gain as defined in Treasury
        Regulation Section 1.704-2(d) during a taxable year of the Company, then,
        the
        Capital Account of each Member shall be allocated items of income (including
        gross income) and gain for such year (and if necessary for subsequent years)
        equal to that Member’s share of the net decrease in Company minimum gain. The
        items so allocated shall be determined in accordance with Treasury Regulation
§
        1.704-2(j)(2)(i). This paragraph 5 is intended to comply with the minimum
        gain
        chargeback requirement of Treasury Regulation § 1.704-2 and shall be interpreted
        consistently therewith. If in any taxable year that the Company has a net
        decrease in the Company’s minimum gain, and the minimum gain chargeback
        requirement would cause a distortion in the economic arrangement among the
        Members and it is not expected that the Company will have sufficient other
        income to correct that distortion, the Members may in their discretion seek
        to
        have the Internal Revenue Service waive the minimum gain chargeback requirement
        in accordance with Treasury Regulation § 1.704-2(f)(4).

       

      4. Except
        as
        otherwise provided in Treasury Regulation § 1.704-2(i)(4) notwithstanding
        any other provision of this Exhibit, if there is a net decrease in partner
        nonrecourse debt minimum gain as determined under Treasury Regulation
§ 1.704-2(i)(3) attributable to a partner nonrecourse debt as defined
        in
        Treasury Regulation § 1.704-2(b)(4) during any Fiscal Year, each Member who
        has a share of the partner nonrecourse debt minimum gain attributable to
        such
        partner nonrecourse debt, determined in accordance with Treasury Regulation
        § 1.704-2(i)(5), shall be specially allocated items of Partnership
        Profit
        and Loss for such Fiscal Year (and, if necessary, subsequent Fiscal Years)
        in an
        amount equal to such Member’s share of the net decrease in partner nonrecourse
        debt minimum gain attributable to such partner nonrecourse debt, determined
        in
        accordance with Treasury Regulation § 1.704-2(i)(4). Allocations pursuant
        to the previous sentence shall be made in proportion to the respective amounts
        required to be allocated to each Member pursuant thereto. The items to be
        so
        allocated shall be determined in accordance with Treasury Regulation
§§ 1.704-2(i)(4) and 1.704-2(j)(2)(ii). This paragraph 6 is intended
        to
        comply with the minimum gain chargeback requirement in Treasury Regulation
        § 1.704-2(i)(4) and shall be interpreted consistently
        therewith.

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      

      5. Items
        of
        Company loss and deduction (including non-deductible expenditures described
        in
        Code Section 705(a)(2)(B) which are attributable to any nonrecourse debt
        of the
        Company and are characterized as partner (Member) nonrecourse deductions
        under
        Treasury Regulation § 1.704-2(i)) shall be allocated to the Members’ Capital
        Accounts in accordance with Treasury Regulation § 1.704-2(i).

       

      6. Beginning
        in the first taxable year in which there are allocations of “nonrecourse
        deductions” (as described in Treasury Regulation § 1.704-2(b)) such deductions
        shall be allocated to the Members in accordance with, and as a part of, the
        allocations of Company Profit or Loss for such period.

       

      7. In
        accordance with Code Section 704(c), the Treasury Regulations promulgated
        thereunder, and Treasury Regulation § 1.704-1(b)(2)(iv)(d), if a Member
        contributes property with a fair market value that differs from its adjusted
        basis at the time of contribution, income, gain, loss and deductions with
        respect to the property shall, solely for federal income tax purposes, be
        allocated among the Members so as to take account of any variation between
        the
        adjusted basis of such property to the Company and its fair market value
        at the
        time of contribution in such manner as the Members shall agree.

       

      8. Pursuant
        to Code Section 704(c)(1)(B), if any contributed property is distributed
        by the
        Company other than to the contributing Member within seven years of being
        contributed, then, except as provided in Code Section 704(c)(2), the
        contributing Member shall be treated as recognizing gain or loss from the
        sale
        of such property in an amount equal to the gain or loss that would have been
        allocated to such Member under Code Section 704(c)(1)(A) if the property
        had
        been sold at its fair market value at the time of the distribution.

       

      9. In
        the
        case of any distribution by the Company to a Member, such Member shall be
        treated as recognizing gain in an amount equal to the lesser of:

       

      (i) the
        excess (if any) of (A) the fair market value of the property (other than
        money)
        received in the distribution over (B) the adjusted basis of such Member’s
        Membership Interest in the Company immediately before the distribution reduced
        (but not below zero) by the amount of money received in the distribution,
        or

      

      (ii) the
        Net
        Precontribution Gain (as defined in Code Section 737(b)) of the Member. The
        Net
        Precontribution Gain means the net gain (if any) which would have been
        recognized by the distributee Member under Code Section 704(c)(1)(B) if all
        property which (1) had been contributed to the Company within seven years
        of the
        distribution, and (2) is held by the Company immediately before the
        distribution, had been distributed by the Company to another Member. If any
        portion of the property distributed consists of property which had been
        contributed by the distributee Member to the Company, then such property
        shall
        not be taken into account under this paragraph 11 and shall not be taken
        into
        account in determining the amount of the Net Precontribution Gain. If the
        property distributed consists of an interest in an Entity, the preceding
        sentence shall not apply to the extent that the value of such interest is
        attributable to the property contributed to such Entity after such interest
        had
        been contributed to the Company.

      
        
          
          

        

        
          C-2

          
            

          

        

        
          
          

        

      

      

      10. In
        connection with a Capital Contribution of money or other property (other
        than a
        de minimis amount) by a new or existing Member as consideration for a Membership
        Interest, or in connection with the liquidation of the Company or a distribution
        of money or other property (other than a de minimis amount) by the Company
        to a
        retiring Member (as consideration for a Membership Interest), the Capital
        Accounts of the Members shall be adjusted to reflect a revaluation of Company
        property (including intangible assets) to its Agreed Value in accordance
        with
        Treasury Regulation § 1.704-1(b)(2)(iv)(f). If, under Treasury Regulation
§ 1.704-1(b)(2)(iv)(f), Company property that has been revalued is
        properly
        reflected in the Capital Accounts and on the books of the Company at its
        Agreed
        Value and that differs from the adjusted tax basis of such property, then
        depreciation, depletion, amortization and gain or loss with respect to such
        property shall be shared among the Members in a manner that takes account
        of the
        variation between the adjusted tax basis of such property and its Agreed
        Value,
        in the same manner as variations between the adjusted tax basis and fair
        market
        value of property contributed to the Company are taken into account in
        determining the Members’ shares of tax items under Code Section
        704(c).

       

      11. All
        recapture of income tax deductions resulting from the sale or disposition
        of
        Company property shall be allocated to the Members to whom the deduction
        that
        gave rise to such recapture was allocated hereunder to the extent that such
        Member is allocated any gain from the sale or other disposition of such
        property.

       

      12. Upon
        the
        dissolution and liquidation of the Company, after all required special
        allocations of Profit or Loss are made, Profit or Loss (or items of income,
        gain
        or loss included in the computation of Profit or Loss) shall be allocated
        to the
        Members so that the balance in each Member’s Capital Accounts is equal to the
        amount to be distributed to such Member pursuant to the provisions of
Section
        8.2.

       

      13. To
        the
        extent an adjustment in the adjusted tax basis of any Company asset, pursuant
        to
        Code Section 734(b) or Code Section 743(b) is required, pursuant to Treasury
        Regulation § 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken
        into account in determining Capital Accounts as the result of a distribution
        to
        a Member in complete liquidation of such Member’s interest in the Company, the
        amount of such adjustment to Capital Accounts shall be treated as an item
        of
        gain (if the adjustment increases the basis of the asset) or loss (if the
        adjustment decreases such basis) and such gain or loss shall be specially
        allocated to the Members in accordance with their interests in the Company
        in
        the event Treasury Regulation § 1.704-1(b)(2)(iv)(m)(2) applies, or to the
        Member to whom such distribution was made in the event Treasury Regulation
§
        1.704-1(b)(2)(iv)(m)(4) applies.

       

      C-3Unassociated Document

    
      
        Exhibit
          10.11

        
          

        

      PROMISSORY
        NOTE

      

      
        

        
          	
                  $14,810,200

                	
                  Rochester,
                    New York

                
	 	
                  May
                    4, 2005

                

        

      

      

      For
        Value
        Received, the undersigned, BUENA VISTA DEVELOPMENT COMPANY, LLC, a New York
        limited liability company (the “Borrower”), hereby promises to pay to NEVADA
        GOLD BVR, L.L.C. (the “Lender”), with
        its
        registered office c/o Nevada Agency & Trust Company, 50 West Liberty St.,
        Suite 880, Reno, Nevada 89501,
        or at
        such other place as the holder of this Note may designate, in lawful money
        of
        the United States of America, the principal sum of Fourteen Million Eight
        Hundred Ten Thousand Two Hundred Dollars ($14,810,200). Interest shall accrue
        on
        the unpaid principal amount of this Note from the date hereof through the
        date
        of payment in full at a variable rate equal to the prime rate most recently
        reported from time to time in the “Money Rates” section of The Wall
        Street Journal,
        plus
        1%. Interest shall be calculated on the basis of a 365- or 366-year, as
        applicable, and actual days elapsed.

      

      This
        Note
        is the promissory note referred to in the Investment Agreement dated April
        21,
        2005 between the Borrower and the Lender (the “Investment Agreement”).
        Capitalized terms used in this Note and not defined herein shall have the
        meanings given such terms in the Investment Agreement.

      

      Principal
        and interest of this Note shall be payable on the date determined under
        paragraph 1(b) of the Investment Agreement. Principal and interest
        on this
        Note may be prepaid in whole or in part at any time, as provided in
        paragraph 1(c) of the Investment Agreement.

      

      As
        security for its obligations hereunder, Borrower has granted to Lender a
        security interest in the Collateral (as defined in the Investment Agreement)
        pursuant to paragraph 3 of the Investment Agreement.

      

      All
        payments due pursuant to this Note shall be made in immediately available
        funds
        by wire transfer to the following account at J.P. Morgan Chase & Co. or such
        other account designated by Lender:

      

      Account
        Number 739 298 860

      Account
        Name Thompson & Knight LLP

      Full
        Bank
        Name JPMorgan Chase Bank

                      New
        York, New
        York

      Bank
        ABA#
        021 000 021

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        occurrence of any of the following shall constitute a default under this
        Note:

      

      (a) The
        Borrower
        shall fail to pay when due any amount owing under this Note.

      

      (b) The Borrower
        shall: (i) apply for or consent to the appointment of, or the taking
        of
        possession by, a receiver, custodian, trustee or liquidator of itself or
        of all
        or a substantial part of its property; (ii) admit in writing its inability,
        or be generally unable to pay its debts as they become due; (iii) make
        a
        general assignment for the benefit of creditors; (iv) commence a voluntary
        case under the federal bankruptcy laws (as now or hereafter in effect);
        (v) be adjudicated insolvent or be the subject of an order for relief
        under
        any chapter of the Bankruptcy Code (11 U.S.C. § 101, et. sec.);
        (vi) file a petition seeking to take advantage of any other law relating
        to
        bankruptcy, insolvency, reorganization, winding up or composition or adjustment
        of debts; or (vii) acquiesce in, or fail to controvert in a timely
        manner,
        any petition filed against it in an involuntary case under such bankruptcy
        laws.

      

      (c) A
        case or
        other proceeding shall be commenced, without the application or consent of
        the
        Borrower, in any court of competent jurisdiction, seeking the liquidation,
        reorganization, dissolution, winding up, or composition or readjustment of
        debts, of the Borrower, the appointment of a trustee, receiver, custodian,
        liquidator or the like of the Borrower or of all or any substantial part
        of its
        assets, or any similar action with respect to the Borrower under the federal
        bankruptcy laws (as now or hereafter in effect) or any other laws relating
        to
        bankruptcy, insolvency, reorganization, winding up or composition or adjustments
        of debt, and such case or proceeding shall continue undismissed, or unstayed
        and
        in effect, for a period of 90 days, or an order for relief against the Borrower
        shall be entered in an involuntary case under such bankruptcy laws.

      

      If
        a
        default shall occur, the holder of this Note, at the holder’s option, may
        declare all sums of principal outstanding hereunder to be immediately due
        and
        payable without presentment, demand, notice of nonperformance, notice of
        protest, protest or notice of dishonor, all of which are expressly waived
        by the
        Borrower. The Borrower shall pay to the holder immediately upon demand the
        full
        amount of all payments, advances, charges, costs and expenses, including
        reasonable attorney’s fees, expended or incurred by the holder in connection
        with the enforcement of the holder’s rights and/or the collection of any amounts
        which become due the holder under this Note, and the prosecution or defense
        of
        any action in any way related to this Note, including without limitation,
        any
        action for declaratory relief, whether incurred at the trial or appellate
        level,
        in an arbitration proceeding or otherwise, and including any of the foregoing
        incurred in connection with any bankruptcy proceeding (including without
        limitation, any adversary proceeding, contested matter or motion brought
        by
        Lender or any other person) relating to the Borrower or any person affiliated
        with the Borrower.

      

      No
        waiver
        of any provision of this Note, or any agreement or instrument evidencing
        or
        providing security for this Note, made by agreement of Lender and any other
        person or party, shall constitute a waiver of any other terms hereof, or
        otherwise release or discharge the liability of Borrower under this Note.
        No
        failure to exercise and no delay in exercising, on the part of Lender, any
        right, power or privilege under this Note shall operate as a waiver thereof
        nor
        shall simple or partial exercise of any right, power or privilege preclude
        any
        other or further exercise thereof, or the exercise of any other power, right
        or
        privilege. The rights and remedies herein provided are cumulative and are
        not
        exclusive of any rights or remedies provided by law.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      This
        Note
        shall be governed by and
        is to
        be construed in accordance with
        the
        State of New York without
        regard to its doctrine of conflict of laws.

      

      IN
        WITNESS WHEREOF, the Borrower has executed this Note as of the date first
        written above.

      

      
        	 	
                Buena
                  Vista Development Company, LLC

                By: Casino
                  Development & Management Company, LLC, its Managing
                  Member

                By: CDM
                  Management, LLC, its Managing Member

                 

                By:
                  _________________________________

                Thomas
                  C. Wilmot

                Its:
                  Manager

              

      

    

     

     

     

    3

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