|Aircraft Security
Agreement


For Aircraft Loans, except Inventory
Loans, in all States. This form is subject to State legal requirements.


1. Grant of Security
Interest; Description of Collateral.


The undersigned Debtor, meaning all
Debtors jointly and severally (Debtor), to secure payment of the indebtedness
evidenced hereby to the below named Secured Party, its successors and assigns
(Secured Party), hereby grants to Secured Party a security interest in the
following-described aircraft, engine(s), propeller(s) and equipment, together with all
attachments, replacements, substitutions, additions, proceeds, and all log books,
hereinafter referred to as Collateral:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|New/Used | Year | Manufacturer | ModelNumber               | Serial Number | "N"Number
|-------- | ---- | ------------ | ------------------------- | ------------- | ---------
|Used     | 1996 | Canadair     | CL600-2B19Special Edition | 7140          | N711WM   

Engine(s): [X] Horsepower 750 or more. Insert make, model and serial number of each engine.

Left Engine Model GE
CF34-3B1 s\n 872109Right Engine Model GE CF34-3b1 s\n 872106 _________________

|                                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------
|Describe radio(s), propeller(s) and other equipment and accessories fully including make, kind of unit, model
and serial numbers

|See Schedule A consisting
of one (1) page for equipment description, attached hereto and made a part hereof.


2. Warranties.


Debtor warrants that the Collateral
is not and will not be registered under the laws of any foreign country, that Debtor is
the absolute owner of and has good legal and beneficial title to the Collateral and is in
lawful possession thereof, and the same is and will be kept free and clear of all liens,
adverse claims and encumbrances except for this Security Agreement and
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|None                                                        
|------------------------------------------------------------
|If none other than this Security Agreement, indicate None.

|Debtor warrants that he is a citizen
of the United States as defined in the Federal Aviation Act of 1958, as amended; that the
aircraft will not be registered under the laws of any foreign country, and will not be
used in violation of any law, regulation, ordinance or policy of insurance affecting the
maintenance, use or flight of aircraft. These warranties are conditions of the
Debtors right of possession and use, and delivery is made in reliance thereon.


3. Use and Location
of Collateral.


Said aircraft shall be kept at:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|McCarren International Airport    | Las Vegas | Clark  | Nevada |         
|--------------------------------- | --------- | ------ | ------ | --------
|Name of airport or street address | City      | County | State  | Zip Code

|Debtor may not permanently remove the
Collateral from the aforesaid location nor permit any such act.


Debtor warrants and agrees that the
Collateral is to be used primarily for:
[X] business or commercial purposes (other than agricultural),
[ ] agricultural purposes, or
[ ] consumer purposes (see notice on final page)


4. Promise to Pay; Terms
and Place of Payment.


Debtor promises to pay Secured Party
all amounts shown on the promissory note attached hereto and made a part hereof. Payments
shall be made at the address of Secured Party shown herein or such other place as Secured
Party may designate from time to time. This Security Agreement shall continue effective
irrespective of any retaking and redelivery of Collateral to Debtor until all amounts
secured hereby are fully paid. Any note taken herewith shall evidence indebtedness and not
payment.


5. Late Charges and
Other Fees.


Any payment not made within five (5)
days after its scheduled due date shall, upon notice to Debtor, at the option of Secured
Party, bear a late charge of 1 1/2% of the late payment, but in no event greater than the
highest rate permitted by relevant law. Debtor shall be responsible for and pay to Secured
Party a returned check fee, not to exceed the maximum permitted by law, which fee will be
equal to the sum of (i) the actual bank charges incurred by Secured Party plus (ii) all
other actual costs and expenses incurred by Secured Party. The returned check fee is
payable upon demand as indebtedness secured by the Collateral under this Security
Agreement.


6. Debtors
Warranties and Representations.


Debtor warrants and represents:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) | that Debtor is justly indebted to Secured Party for the full amount of the
                    foregoing indebtedness;
| |  | --- | ----------------------------------------------------------------------------------------------------------------------

| |  | (b) | that, except for the security interest granted hereby, the Collateral is free
                    from and will be kept free from all liens, claims, security interests and
                    encumbrances;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) | that no financing statement or mortgage covering the Collateral, or the proceeds
                    thereof, is on file;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------

| |  | (d) | Debtor has full authority to enter into this agreement and in so doing it is not
                    violating its charter or by-laws, any law or regulation or agreement with third
                    parties, and it has taken all such action as may be necessary or appropriate to
                    make this agreement binding upon it; and
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (e) | if Debtor is an organization, Debtor (a) is the type of organization, (b) is
                    organized under the laws of the jurisdiction, (c) has its chief executive
                    office, and (d) if it is a registered organization as defined in
                    Article 9 of the Uniform Commercial Code (i.e., organized solely under the laws
                    of a single state and as to which the state must maintain a public record
                    showing the organization to have been organized), has the organizational
                    identification number (or, if none, has been assigned no such number by the
                    state of organization), all as set forth under Debtors name (which is its
                    exact and complete legal name) at the signature line of this Security Agreement.
                    If Debtor is an individual, Debtors exact and complete legal name and
                    principal residence are as set forth at and under Debtors name at the
                    signature line of this Security Agreement. Debtor agrees to notify Secured Party
                    in writing immediately in the event of a change in any of the foregoing facts
                    and information.
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. Debtors
Agreements.


Debtor agrees:
|----------------------------------------

| |  | (a) | to defend at Debtors own cost any action, proceeding, or claim affecting
                    the Collateral;
| |  | --- | -------------------------------------------------------------------------------------------------------------

| |  | (b) | to pay reasonable attorneys fees and other expenses incurred by Secured
                    Party in enforcing its rights after an Event of Default;
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) | to reimburse Secured Party for all expenses incurred by Secured Party in
                    connection with the recordation of this Security Agreement, filing financing
                    statements, the registration of the Collateral and search of any appropriate
                    records including the FAA records;
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) | that Debtor will not, without Secured Partys prior written consent, sell,
                    rent, lend, secrete, encumber, transfer or otherwise dispose of the Collateral,
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (e) | to pay promptly all taxes, assessments, license fees and other public or private
                    charges when levied or assessed against the Collateral or this Security
                    Agreement or any accompanying note;
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (f) | that Collateral will be used at all times in accordance with the laws, rules,
                    regulations and ordinances of the United States, the several states and
                    municipalities thereof, and any other sovereign jurisdictions in which
                    Collateral may be used;
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (g) | that all flights will originate and terminate in the United States of America
                    and that the aircraft will not operate in the airspace of any foreign country,
                    unless the Secured Partys prior written consent has been obtained;
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (h) | that Collateral will be operated at all times by a currently certified pilot
                    having the minimum total pilot hours required by the insurance covering such
                    Collateral;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) | that Collateral will be maintained at all times in an airworthy condition
                    necessary for aircraft licenses under the laws, ordinances, rules and
                    regulations of the United States, the several states and municipalities and any
                    other jurisdictions in which the Collateral shall be at any time operated;
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (j) | that Debtor will not use or permit Collateral to be used contrary to any laws
                    relating to intoxicating liquors, narcotics, or similar products, and shall
                    conform with all laws governing aircraft;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.  Debtors
Agreements (Continued)
|-----------------------------------

| |  | (k) | that all equipment, engines, radios, accessories, instruments and parts now or
                    hereafter used in connection with the Collateral shall become part thereof by
                    accession;
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (l) | to satisfy all liens against the aircraft;
| |  | --- | ------------------------------------------

| |  | (m) | that Secured Party and The CIT Group/Equipment Financing, Inc. (CIT)
                    shall not be liable to Debtor for, and Debtor shall indemnify and save Secured
                    Party and CIT harmless (except where due to the gross negligence or willful
                    misconduct of Secured Party or CIT) from and against any and all liability,
                    loss, damage, expense, causes of action, suits, claims or judgments arising from
                    or caused directly or indirectly by (i) Debtors failure to promptly
                    perform any of its obligations under the provisions of this Security Agreement,
                    (ii) injury to person or property resulting from or based upon the actual or
                    alleged use, operation, delivery or transportation of the Collateral or its
                    location or condition, or (iii) inadequacy of the Collateral for any purpose or
                    any deficiency or defect therein or the use or maintenance thereof or any
                    repairs, servicing or adjustments thereto or any delay in providing or failure
                    to provide any thereof or any interruption or loss of service or use thereof or
                    any loss of business; and shall, at its own cost and expense, defend any and all
                    suits which may be brought against Secured Party or CIT, either alone or in
                    conjunction with others upon any such liability or claim or claims and shall
                    satisfy, pay and discharge any and all judgments and fines that may be recovered
                    against Secured Party and CIT in any such action or actions, provided, however,
                    that Secured Party or CIT shall give Debtor written notice of any such claim or
                    demand; and
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (n) | upon the request of Secured Party, if any of the Collateral consists of
                    software, to inform Secured Party of the name of the licensor of such software
                    and to provide Secured Party with a copy of the license agreement.
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. Insurance and Risk
of Loss.


All risk of loss, damage or
destruction of the Collateral shall at all times be on Debtor. Debtor shall procure
forthwith and maintain at Debtors expense aircraft hull insurance, including
all-risk ground and flight insurance on the Collateral for the full insurable value
thereof for the life of this Security Agreement plus breach of warranty insurance and such
other insurance thereon in amounts and against such risks as Secured Party may specify,
and shall promptly deliver a copy of each policy to Secured Party with a standard
long-form mortgagee endorsement attached thereto showing loss payable to Secured Party;
and providing Secured Party with not less than 30 days written notice of cancellation;
each such policy shall be in form, terms and amount and with insurance carriers
satisfactory to Secured Party; Secured Partys acceptance of policies in lesser
amounts or risks shall not be a waiver of Debtors foregoing obligations. As to
Secured Partys interest in such policy, no act or omission of Debtor or any of its
officers, agents, employees or representatives shall affect the obligations of the insurer
to pay the full amount of any loss.


If any loss, destruction or damage
occurs with respect to the Collateral, Debtor shall diligently pursue its rights to
compensation against all relevant insurers with respect to such loss. Debtor shall not,
without the consent of Secured Party, compromise or settle any claim with respect to the
Collateral involving an amount in excess of $250,000. If after any such loss, destruction
or damage the Debtor and the Secured Party determine the Collateral can be repaired to
comparable value, all awards, amounts, damages, compensation, payments, settlements and
proceeds in respect of any such loss, damage or destruction to the Collateral at the
option of Debtor, shall be used to repair or replace the Collateral, and if such amounts
are insufficient to repair the Collateral to comparable value, the Debtor shall use its
own funds to complete the repairs. If after any such loss, destruction or damage the
Debtor and the Secured Party cannot agree that the Collateral can be repaired to
comparable value, all awards, amounts, damages, compensation, payments, settlements and
proceeds in respect of any such loss, damage or destruction to the Collateral in an amount
of $250,000 or more, at the option of Secured Party, shall be used to repair or replace
the Collateral or to repay the obligations secured hereby.


Effective upon the occurrence and
during the continuance of an Event of Default, Debtor hereby assigns to Secured Party any
monies which may become payable under any such policy of insurance and irrevocably
constitutes and appoints Secured Party as Debtors attorney in fact (a) to make,
settle and adjust claims under each policy of insurance; (b) to make claims for any monies
which may become payable under such and other insurance on the Collateral including
returned or unearned premiums; and (c) to endorse Debtors name on any check, draft
or other instrument received in payment of claims or returned or unearned premiums under
each policy and to apply the funds to the payment of the indebtedness owing to Secured
Party; provided, however, Secured Party is under no obligation to do any of the foregoing.


Should Debtor fail to furnish
evidence of such insurance policy to Secured Party, or to maintain such policy in full
force, or to pay any premium in whole or in part relating thereto, then Secured Party,
without waiving or releasing any default or obligation by Debtor, may (but shall be under
no obligation to) obtain and maintain insurance and pay the premium therefor on behalf of
Debtor and charge the premium to Debtors indebtedness under this Security Agreement.
The full amount of any such premium paid by Secured Party shall be payable by Debtor upon
demand, and failure to pay same shall constitute an event of default under this Security
Agreement.


9. Events of Default;
Acceleration.


A very important element of this
Security Agreement is that Debtor make all its payments promptly as agreed upon. Also
essential is that the Collateral continue to be in good condition and adequate security
for the indebtedness. The following are events of default under this Security Agreement
which will allow Secured Party to take such action under this Paragraph and under
Paragraph 10 as it deems necessary:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) | any of Debtors obligations to Secured Party under any agreement with
                    Secured Party is not paid within five (5) days after its scheduled due date and
                    after notice to Debtor;
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | Debtor breaches any material warranty or provision hereof, or of any note or of
                    any material instrument or agreement delivered by Debtor to Secured Party or of
                    any policy of insurance covering the Collateral, or if any such policy be
                    canceled;
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) | Debtor dies, becomes insolvent or ceases to do business as a going concern;
| |  | --- | ---------------------------------------------------------------------------

| |  | (d) | it is determined that Debtor has given Secured Party materially misleading
                    information regarding its financial condition;
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

| |  | (e) | any of the Collateral is lost, secreted, misused, destroyed, encumbered, seized,
                    confiscated or disposed of in violation of the terms hereof;
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (f) | a petition in bankruptcy or for arrangement or reorganization is filed by or
                    against Debtor or Debtor admits its inability to pay its debts as they mature;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.  Events of Default;
Acceleration (Continued)
|-----------------------------------------------

| |  | (g) | property of Debtor is attached or a receiver is appointed for Debtor;
| |  | --- | ---------------------------------------------------------------------

| |  | (h) | an Event of Default occurs under and as defined in that certain
                    Amended and Restated Loan Agreement dated as of September 16,1999 by and among
                    Coast Hotels and Casinos, Inc. , as Borrower and The Lenders, Syndication Agent,
                    Senior Management Agent, Co-Agents referred to therein and Bank of America,
                    N.A.as Administrative Agent, as such agreement is amended, modified,
                    supplemented or restated from time to time, including any refinancings or
                    replacements thereof by an institutional lender or syndicate of institutional
                    lenders (the Credit Agreement); provided, however,
                    that the cure or waiver of any such Event of Default under the
                    Credit Agreement shall result in automatic cure of the corresponding Event of
                    Default under this clause (h) without any action by any party hereto;
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) | any guarantor, surety or endorser for Debtor defaults in any obligation or
                    liability to Secured Party or any guaranty obtained in connection with this
                    transaction is terminated or breached;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (j) | a third party takes any action to foreclose on, obtain possession or control,
                    collect, sell or otherwise dispose of, or exercise any rights with respect to,
                    any of the Collateral without the express written consent of Secured Party.
| |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|If an Event of Defaultoccurs
and is continuing hereunder, the indebtedness herein described and all other debts then
owing by Debtor to Secured Party under this or any other present or future agreement
shall, if Secured Party shall so elect, become immediately due and payable, except for and
excluding any debt owing by Debtor to Secured Party pursuant to the Credit Agreement or
any note issued pursuant to an Indenture or similar agreement unless Secured Party is the
only holder of indebtedness issued under such agreement. This acceleration of all
indebtedness, if elected by Secured Party, shall be subject to all applicable laws,
including laws as to rebates and refunds of unearned charges.


     10.    
          Secured Partys Remedies After Default; Consent to Enter Premises.


Upon Debtors default and at any
time thereafter, Secured Party shall have all the rights and remedies of a secured party
under the Uniform Commercial Code and any other applicable laws, including the right to
any deficiency remaining after disposition of the Collateral for which Debtor hereby
agrees to remain fully liable. Secured Party may require Debtor to return the Collateral
to Secured Party at a place to be designated by Secured Party which is reasonably
convenient to both parties. Secured Party may sell or lease the Collateral at a time and
location of its choosing provided that the Secured Party acts in good faith and in a
commercially reasonable manner. Secured Party will give Debtor reasonable notice of the
time and place of any public sale of the Collateral or of the time after which any private
sale of the Collateral or any other intended disposition thereof is to be made. Unless
otherwise provided by law, the requirement of reasonable notice shall be met if such
notice is mailed, postage prepaid, to the address of Debtor shown herein at least ten days
before the time of the sale or disposition. If permitted by law, the Sheriff of any county
in which the Collateral is located may, on request of Secured Party and the delivery to
the Sheriff of a copy hereof, take possession of the Collateral and sell the same in the
manner prescribed by applicable law. Expenses of retaking, holding, preparing for sale,
selling and the like shall include reasonable attorneys fees and other legal
expenses. While repossessing Collateral, or removing it from a place of repossession to a
place of storage and/or sale, Secured Party may, if permitted by law, use any of
Debtors licenses in respect to Collateral.


11. Waiver of Defaults;
Agreement Inclusive.


Secured Party may in its sole
discretion waive a default, or cure, at Debtors expense, a default. Any such waiver
in a particular instance or of a particular default shall not be a waiver of other
defaults or the same kind of default at another time.


No modification or change in this
Security Agreement or any related note, instrument or agreement shall bind Secured Party
unless in writing signed by Secured Party. No oral agreement shall be binding.


12. Financing
Statements; Certain Expenses; FAA Documents.


Debtor authorizes Secured Party to
file a financing statement with respect to the Collateral and ratifies the filing by
Secured Party of such financing statements previously filed. At the request of Secured
Party, Debtor will execute any financing statements, agreements or documents, in form
satisfactory to Secured Party which Secured Party may deem necessary or advisable to
establish and maintain a perfected security interest in the Collateral, and will pay the
cost of filing or recording the same in all public offices deemed necessary or advisable
by Secured Party. Debtor also agrees to pay all costs and expenses incurred by Secured
Party in conducting UCC, tax or other lien searches against the Debtor or the Collateral
and such other fees as may be agreed. At the request of Secured Party, Debtor will join
Secured Party in executing any additional documents needed to properly register Collateral
with the FAA.



13. Waiver of Defenses
Acknowledgment.


If Secured Party assigns this
Security Agreement to a third party (Assignee), then after such assignment:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) | Debtor will make all payments directly to such Assignee at such place as
                    Assignee may from time to time designate in writing;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | Debtor agrees that it will settle all claims, defenses, setoffs and
                    counterclaims it may have against Secured Party directly with Secured Party and
                    will not set up any such claim, defense, setoff or counterclaim against Assignee
                    which accrues before the Debtor receives a notification of the assignment
                    authenticated by the Secured Party and the Assignee, Secured Party hereby
                    agreeing to remain responsible therefor;
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) | Secured Party shall not be Assignees agent for any purpose and shall have
                    no authority to change or modify this Security Agreement or any related document
                    or instrument; and
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) | Assignee shall have all of the rights and remedies of Secured Party hereunder
                    but none of Secured Partys obligations.
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------

|14. Miscellaneous.


Debtor waives all exemptions and
homestead laws and all rights thereunder are waived to the extent permitted by law.
Secured Party may correct patent errors herein with the Debtors consent and fill in
such blanks as serial numbers, date of first payment and the like with the Debtors
consent. Any provisions hereof contrary to, prohibited by or invalid under applicable laws
or regulations shall be inapplicable and deemed omitted herefrom, but shall not invalidate
the remaining provisions hereof. Debtor and Secured Party each hereby waive any right to a
trial by jury in any action or proceeding with respect to, in connection with, or arising
out of this Security Agreement, or any note or document delivered pursuant to this
Security Agreement. If Debtor is a corporation, this Security Agreement is executed
pursuant to authority of its Board of Directors. Debtor and Secured
Party as used in this Security Agreement include the heirs, executors or
administrators, successors or assigns to those parties. If more than one Debtor executes
this Security Agreement, their obligations under this Security Agreement shall be joint
and several.


If at any time this transaction would
be usurious under applicable law, then regardless of any provision contained in this
Security Agreement or in any other agreement made in connection with this transaction, it
is agreed that:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) | the total of all consideration which constitutes interest under applicable law
                    that is contracted for, charged or received upon this Security Agreement or any
                    other agreement shall under no circumstances exceed the maximum rate of interest
                    authorized by applicable law and any excess shall be credited to the Debtor; and
| |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | if Secured Party elects to accelerate the maturity of, or if Secured Party
                    permits Debtor to prepay the indebtedness described in Paragraph 4, any amounts
                    which because of such action would constitute interest may never include more
                    than the maximum rate of interest authorized by applicable law, and any excess
                    interest, if any, provided for in this Security Agreement or otherwise, shall be
                    credited to Debtor automatically as of the date of acceleration or prepayment.
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.  Special Provisions.


See Addendum consisting of one (1)
page attached hereto and made a part hereof.
|----------------------------------------------------------------------------------------------------------

|Dated: | 2-26-03 | 
|------ | ------- | 

|Debtor:
|-------

|Coast Hotels and Casino, Inc. |                                                                                                                                                                     
|----------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|By                            | /s/  Gage Parrish                                                                                                                                                   
|                              | Debtor will sign each copy in ink.
If corporation, have signed by President, Vice President or Treasurer, and give official title.
If owner or partner, state which.

|4500 West Tropicana Blvd. |      
|------------------------- | -----
|Address                   |      
|Las Vegas                 | NV   
|City                      | State

|If an organization,           |             |  | If an individual,    | 
|----------------------------- | ----------- |  | -------------------- | 
|Type of organization:         | Corporation |  | Principal residence: | 
|Jurisdiction of organization: | Nevada      |  |                      | 
|Organizational identification |             |  |                      | 
|Number (or "None"):           | 2411-73     |  |                      | 

|Location of chief executive office: | 4500 W. Tropicana Ave., Las Vegas, NV 89103 | 
|----------------------------------- | ------------------------------------------- | 

|Secured Party:
|--------------

|The CIT Group/Equipment Financing, Inc. |                                                                                                                                                                            
|--------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|By                                      | /s/  Frank O. Young                                                                                                                                                        
|                                        | Secured Party will sign each copy in ink.
If corporation, have signed by President, Vice President or Treasurer, and give official title.
If owner or partner, state which.
|By                                      |                                                                                                                                                                            

|P. O. Box 27248 |      
|--------------- | -----
|Address         |      
|Tempe           | AZ   
|City            | State

|                                                 
|-------------------------------------------------
|If Debtor is a partnership, enter:Partners' names

|SPECIAL PROVISIONS INSTRUCTIONS 
The notations to be entered in the Special Provisions section of this document for use in
ALABAMA, FLORIDA, GEORGIA, IDAHO, NEVADA, NEW HAMPSHIRE, OREGON, SOUTH DAKOTA and
WISCONSIN are shown in the applicable State pages of the Loans and Motor Vehicles Manual.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTICE: | Do not use this form for transactions for personal, family or household purposes. Crop dusting
aircraft may be subject to Federal or State regulations. Consult legal counsel to determine documentation requirements.
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
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