|SECOND
AMENDMENT TO GROUND LEASE AGREEMENT


THIS
SECOND AMENDMENT TO GROUND LEASE AGREEMENT (Amendment) is dated and
made effective as of May 26, 2003 and is made and entered into by and between
21 STARS, LTD., a Nevada limited-liability company (Landlord) and COAST
HOTELS AND CASINOS, INC., a Nevada corporation (Tenant).


W I T N E S S E
T H


WHEREAS,
Landlord, Barbary Coast Hotel and Casino, a Nevada general partnership
(Barbary), Wanda Peccole, as successor Trustee of the Peccole 1982
Trust dated February 15, 1982 (Trust) and William and Wanda
Peccole Limited Partnership, a Nevada limited partnership, formerly and then named
William Peter and Wanda Ruth Peccole Family Limited Partnership
(Partnership) were the original parties to a Ground Lease Agreement
dated October 28, 1994 relating to real property (Premises)
consisting of a portion of Sections 31 and 32 in Township 20 South,
Range 60 East, M.D.M. in the City of Las Vegas, Clark County, Nevada currently
legally described as follows:
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| | Parcel
1 as shown on the Parcel Map on file in File 83 of Parcel Maps, Page 86 in the
Office of the County Recorder of Clark County, Nevada; and
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|WHEREAS,
the Ground Lease Agreement was originally memorialized by a Memorandum of Ground Lease
Agreement recorded on November 1, 1994 as Instrument No. 01375 in
Book 941101 of Official Records in the Office of the County Recorder of Clark County,
Nevada; and


WHEREAS,
the Ground Lease Agreement was amended by First Amendment to Ground Lease Agreement,
Waiver and Agreement (First Amendment) dated August 30, 1995, and
the Ground Lease Agreement as amended by the First Amendment is herein referred to as the
Lease; and


WHEREAS,
Trust and Partnership conveyed and transferred all of their right, title and interest in
and to the Premises to Landlord, thereby conveying and transferring to Landlord all of the
rights and interests of Trust and Partnership in, to and under the Lease; and


WHEREAS,
pursuant to an Assignment of Ground Lease Agreement dated September 1, 1995, Gold
Coast Hotel and Casino, a Nevada limited partnership (Gold Coast) was
assigned and did acquire all of the rights and interests of Barbary in, to and under the
Lease; and


WHEREAS,
pursuant to an Assignment of Ground Lease Agreement dated December 31, 1995, the
corporation now named Coast Casinos, Inc., a Nevada corporation (Coast
Casinos), formerly, and at that time named Coast Resorts, Inc., was
assigned and did acquire all of the rights and interests of Gold Coast in, to and under
the Lease; and


WHEREAS,
pursuant to that same Assignment of Ground Lease Agreement dated December 31, 1995,
Coast West, Inc., a Nevada corporation (Coast West) was assigned and
did acquire all of the rights and interests of Coast Casinos in, to and under the Lease,
which acquisitions and assignments were memorialized by a Memorandum of Ground Lease
Assignment recorded on January 26, 1996 as Document No. 01164 in Book 960126 of
Official Records in the Office of the County Recorder of Clark County, Nevada; and


WHEREAS,
the foregoing was further memorialized by the recording of an Amended Memorandum of Ground
Lease Agreement relative to the Lease on February 16, 1996 as Document No. 00670
in Book 960216 of Official Records in the Office of the County Recorder of Clark County,
Nevada; and



WHEREAS,
pursuant to Articles of Merger filed in the Office of the Secretary of State of the State
of Nevada on March 23, 1999, Coast West was merged into Tenant and upon such merger,
Tenant was assigned and succeeded to all of Coast Wests rights and interests in, to
and under the Lease, as further reflected in an Assignment of Ground Lease Agreement
executed in March, 1999 by Coast West and Tenant and memorialized by a Memorandum of
Ground Lease Assignment recorded on _________, 2003 as Instrument No. ______ in
Book 2003____ of Official Records in the Office of the County Recorder of Clark
County, Nevada; and


WHEREAS,
Landlord and Tenant have determined it to be in their best interests to amend the Lease as
provided herein,


NOW,
THEREFORE, in consideration of the agreements and forbearances occasioned by the
execution of this Amendment, the parties hereto agree as follows:


     1.  
          The following is hereby added to the Lease as new Section 3.06:
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| | 3.06.  
               Assessment District No. 143. Landlord and Tenant
               acknowledge and agree that the construction of a bridge for Alta Drive over the
               Las Vegas Beltway west of the Premises, together with all necessary
               appurtenances and incidental improvements, including four (4) travel lanes,
               curb, gutter, sidewalk, street lights, traffic control facilities, transitions,
               foundations, abutment, superstructure, approach slabs, pavement, utility
               relocations, drainage facilities and other appurtenances necessary for a
               complete and functional facility (collectively, the Project)
               would benefit the Premises, including Tenants leasehold interest under
               this Lease and Landlords reversionary interest in the Premises. Landlord
               and Tenant acknowledge that the Project would be physically located in the
               unincorporated area of Clark County, Nevada, and that the County of Clark, a
               political subdivision of the State of Nevada (County) has
               expressed an interest and desire in having the Project constructed. County has
               proposed the formation of a special improvement district under the provisions of
               Chapter 271 of Nevada Revised Statutes
               (Chapter 271), being proposed Improvement District No.
               143 (District No. 143) comprised solely and exclusively
               of the Premises, pursuant to which bonds would be issued by the County for
               construction of the Project and assessments would levied against the Premises in
               a principal amount not to exceed TWO MILLION DOLLARS ($2,000,000.00) (the
               Assessment). Pursuant to Chapter 271, the Assessment
               could be paid in twenty (20) semi-annual substantially level installments of
               principal and interest (Installments). Landlord hereby
               consents and agrees to the creation of District No. 143 and the levying of the
               Assessment against the Premises in a total principal amount not to exceed
               $2,000,000.00. Landlord further consents, agrees and elects to have the
               Assessment payable in the Installments. Landlord agrees to take such actions and
               execute such documents as may be reasonably necessary or advisable to permit the
               County to create District No. 143; to levy the Assessment against the Premises
               in accordance with the foregoing in an amount not to exceed $2,000,000.00; and
               to permit payment of the Assessment in the Installments. If or when levied
               against the Premises, Tenant covenants and agrees to timely pay the Assessment
               as additional rent under this Lease. Tenant may pay the Assessment by timely
               payment of the Installments as they become due and payable. Any failure of
               Tenant to timely pay any Installment as it becomes due and payable shall
               constitute a failure of Tenant to pay a charge required to be paid by
               Tenant under this Lease as contemplated under the provisions of Subsection
               14.01(a) of this Lease, with the same consequences as the failure to timely pay
               an installment of Basic Monthly Rent, the continued failure of which may
               constitute and become a Default of Tenant under this Lease pursuant to the
               provisions of Section 14.01.
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|2

2.  
          The parties hereto hereby reaffirm and confirm the Lease as amended hereby.


EXECUTED
to be effective as of the day and year first written.
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|"TENANT"                                             |                                                                       | "LANDLORD"                                        
|---------------------------------------------------- | --------------------------------------------------------------------- | --------------------------------------------------
|COAST HOTELS AND CASINOS, INC., a Nevada Corporation |                                                                       | 21 STARS, LTD., a Nevada limited-liability company
|By                                                   | /s/ MICHAEL J. GAUGHAN                                                |                                                   
|                                                     | MICHAEL J. GAUGHAN, Chairman of the Board and Chief Executive Officer |                                                   
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3

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|CONSENT TO AMENDMENT
OF GROUND LEASE AGREEMENT


The
undersigned BANK OF AMERICA, N.A. (formerly known as Bank of America National Trust and
Savings Association), a national banking association, in its capacity as
Beneficiary under the Amended and Restated Construction Deed of Trust with
Assignment of Rents and Fixture Filing recorded November 15, 1999 as Instrument No. 00703
in Book 991115 of Official Records in the Office of the County Recorder of Clark County,
Nevada, and its capacity as Administrative Agent for itself and other lenders
(collectively, the Lenders) now or hereafter a party to that certain Amended
and Restated Loan Agreement dated as of September 16, 1999 among the Lenders as the
lenders, COAST HOTELS AND CASINOS, INC., a Nevada corporation as the borrower and the
undersigned as the administrative agent, does hereby consent to the execution of the
Second Amendment to Ground Lease Agreement (Amendment), a copy of which is
attached hereto, amending the Lease as described and defined in the Amendment.


DATED
this 24th day of June, 2003.
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| |                                                                                             |                               
| | ------------------------------------------------------------------------------------------- | ------------------------------
| | BANK OF AMERICA, N.A., a national banking association, Beneficiary and Administrative Agent
| | By                                                                                          | /s/ Janice Hammond            
| |                                                                                             | JANICE HAMMOND, Vice President