Related Party Transactions and Outside Related Director Information

Monarch Casino & Resort, Inc. (MCRI)

4/24/2006 Proxy Information

John Farahi, Bob Farahi and Ben Farahi are brothers.

The three principal stockholders of the Company, John Farahi, Bob Farahi and Ben Farahi, through their affiliates, directly or indirectly control the ownership and management of the Sierra Marketplace Shopping Center directly adjacent to the Atlantis (the "Shopping Center"). The Shopping Center occupies 18.7 acres and consists of 213,000 square feet of retail space. The Company does not have any ownership, options to purchase (except with respect to the driveway discussed below) or first rights of refusal over or control of the Shopping Center. The Company currently rents approximately 13,000 square feet in the Shopping Center that it uses as office and storage space and paid rent of approximately $85,730 plus common area expenses in 2005.

In 2004, the Shopping Center constructed of a new driveway that is being shared between the Atlantis and the Shopping Center. As part of this project, the company has leased a 37,368 square-foot corner section of the Shopping Center for a minimum lease term of 15 years at a monthly rent of $25,000, subject to increase every 60 months based on the Consumer Price Index. The Company also uses part of the common area of the Shopping Center and pays its proportional share of the common area expense of the Shopping Center. The Company has the option to renew the lease for 3 five-year terms, and at the end of the extension period, the Company has the option to purchase the leased section of the Shopping Center at a price to be determined based on an MAI Appraisal. The leased space is being used by the Company for pedestrian and vehicle access to the Atlantis, and the Company has use of a portion of the parking spaces at the Shopping Center. The total cost of the project was $2.0 million; the Company was responsible for two thirds of the total cost, or $1.35 million. The project was completed, the driveway was put into use and the Company began paying rent on September 30, 2004. During the year ended December 31, 2005, the Company paid rent to the Shopping Center in connection with the driveway of $300,000 plus common area expenses.

The Company is currently leasing billboard advertising space from affiliates of its controlling stockholders for a total annual cost of $31,500 in 2005, $53,000 in 2004 and $54,000 in 2003.

The Company is currently renting office and storage space from a company affiliated with Monarch's controlling stockholders and paid annual rent of approximately $27,900 for these spaces for each of the years 2005, 2004 and 2003.

The Company is currently leasing sign space from the Shopping Center. The lease took effect in March 2005 for a monthly cost of $1. The lease was renewed for another year for a monthly lease of $1,000 effective January 1, 2006.