EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT


     THIS  EMPLOYMENT  AGREEMENT  (the  "Agreement")  is made and  entered  into
effective  this  ____  day  of  April  2000,  by  and  between  Natalie  Schramm
(hereinafter  referred to as "Employee") and Peninsula  Gaming  Company,  LLC, a
Delaware limited liability company (hereinafter referred to as "Employer").

     WHEREAS,  the Employer and the Employee  desire to enter into an employment
agreement on the terms and conditions hereinafter provided.

     NOW, THEREFORE, in consideration of the promises made in this Agreement and
for other good and valuable consideration,  the receipt and sufficiency of which
are acknowledged by the parties, the parties agrees as follows:

     1. TERM OF AGREEMENT.  The term of the  Agreement  shall be for a three (3)
year  period  commencing  April 1, 2000  through  March 31,  2003 (the  "Initial
Term").  This Agreement  shall  automatically  renew and continue for successive
one-year  terms  commencing  at the  end of the  Initial  Term  and  every  year
thereafter,  unless  either  party gives the other party  written  notice of the
party's  intention not to renew this  Agreement  for a further  one-year term at
least thirty (30) days prior to the expiration of a term,  unless  terminated by
agreement of the parties or pursuant to Section 2 of this Agreement (the Initial
Term,  together with any subsequent renewal period,  hereinafter  referred to as
the "Term").

     2.  TERMINATION.  This  Agreement  may be terminated at any time before any
expiration  date by the  agreement  of the  parties,  and may be  terminated  by
Employee  upon ninety (90) days advance  written  notice to the Chief  Executive
Officer or the General Manager of the Employer. In the event that this Agreement
is terminated by Employee upon ninety (90) days advance written notice, Employee
shall be  entitled  to  continue  receiving  her  regular  salary for so long as
Employee is permitted to and actually  continues to render  services to Employer
during the ninety (90) day period following such notice. If Employee is directed
by  Employer  to cease work prior to  expiration  of the ninety (90) day period,
Employee  shall  nevertheless  be entitled to receive her regular salary for the
ninety (90) day period.  In addition,  this  Agreement  may be terminated by the
Employer  immediately  upon the occurrence of any of the following  events:  (a)
Employee's  death,  (b) Employee  becoming  physically  or mentally  disabled (a
"Disability"), which Disability renders Employee unable to perform, as certified
by a mutually agreeable  competent medical physician,  a substantial  portion of
Employee's  duties  hereunder  for a  continuous  period of sixty (60) days or a
total of ninety (90) days in any three hundred  sixty-five (365) day period, (c)
Employee's commission of an act of embezzlement, fraud, misappropriation against
the Employer, (d) Employee's conviction of, or entry of a plea of guilty or nolo
contendere or its equivalent of, a felony,  (e) Employee's  continued neglect or
failure to  discharge  Employee's  duties or  responsibilities  or the  repeated
taking of any action prohibited by Employee's immediate supervisor, the managing
member  or the  board of  managers  of the  Employer  materially  affecting  the
fundamental  operating  results of the  Employer,  or  Employee's  engagement of
conduct  injurious to the Employer or having an adverse effect on the Employer's


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reputation  or  business  operations,  all of which  threatens  or is  likely to
threaten  the  licensed  status  of  the  Employee  or  the  Employer,  (f)  the
revocation,   suspension   for  more  than  thirty  (30)  days,   or   voluntary
relinquishment of any gaming license necessary for the performance of Employee's
duties hereunder,  or (g) Employee's breach or violation of any material term or
material provision of this Agreement;  provided,  however,  that, in the case of
clauses (e), (f) and (g) of this Section 2, Employee shall be entitled to thirty
(30) days notice of  termination,  during which thirty (30) day period  Employee
shall have the right to remedy any such breach or default,  but in no event will
Employee  be  entitled  to more than one  thirty  (30) day  notice for breach of
violation of the same offense;  subsequent  commission of the same offense shall
warrant immediate  termination.  In the event of a termination of this Agreement
by Employer,  other than for violation or breach of subparagraphs (a), (b), (c),
(d),  (e),  (f) or (g) or this  paragraph,  during  any  Term of the  Agreement,
Employee  shall be entitled to receive as  severance  pay the greater of (a) the
balance of base  compensation  due to Employee for the remainder of the Term, or
(b) six  month's  compensation,  which  payments  shall  be  made as they  would
otherwise have become due under the payroll schedule of Employer. Employee shall
also be entitled to receive a prorated share of the cash bonus to which Employee
otherwise  would be entitled had Employee's  employment  continued to the end of
the Term, as provided in paragraph 4(a).

     3.  DUTIES.  Employee  shall  carry  out the  duties  and  responsibilities
generally  as  identified  as the  Assistant  General  Manager of the  Employer,
consistent with the terms of the Position  Description appended to the Agreement
as Exhibit A and which may be  amended  from time to time,  consistent  with the
above-defined  general   responsibilities  by  the  Employer's  Chief  Executive
Officer. Employer acknowledges and agrees that Employee, in her sole discretion,
shall set the time period,  number of hours and location that Employee  works in
carrying out her duties as the Assistant  General  Manager under this Agreement.
Employer further  acknowledges  and agrees that Employee may provide  consulting
and other services to third parties, provided such services do not significantly
interfere with the performance of Employee's duties as Assistant General Manager
under this Agreement,  and further  provided such services would not result in a
breach by Employee of the non-competition or non-disclosure agreements set forth
in Section 8 of this Agreement.

     4. COMPENSATION AND BENEFITS.

          a.  Employee  shall be paid by Employer  (i) as  compensation  for her
     services for the 2000  calendar  year the base annual salary of One Hundred
     Twenty Five  Thousand  Dollars  ($125,000).  Employee's  base annual salary
     shall be reviewed on an annual  basis and adjusted  upward  annually by not
     less than five percent (5%) of the prior year's  compensation.  In addition
     to the base  salary,  upon  completion  of each  year of  service  with the
     Employer, Employee shall be entitled to receive a cash bonus payable by the
     Employer  based on Employee's  performance  during the previous  employment
     year, which shall be consistent with the bonus plan in place for department
     directors  of the  Employer.  If this  Agreement  is  terminated  prior  to
     completion of any Term,  EMPLOYEE shall be eligible for a prorated bonus at
     termination.

          b. To the extent not inconsistent with Employee's status as a salaried
     employee  under a continuing  contract,  Employee  shall be entitled to all
     benefits accorded


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     full  time  employees  of  Employer  in  accordance  with the  terms of the
     Employer's personnel policies.

     5.  CONSULTING  OPTION.   Until  the  expiration  or  termination  of  this
Agreement,  at the time of and at any time  after the  Employer  has a change of
General  Manager or Chief  Operating  Officer  from Jerome  Grippe,  the current
General  Manager of  Employer,  Employee  shall  have the option to convert  the
employment  arrangement  contemplated  by  this  Agreement  into a  nonexclusive
consulting  arrangement or maintain the existing employment agreement.  Employee
shall provide  Employer with thirty (30) days prior written notice of Employee's
intent to exercise the option. If the option is exercised by Employee,  Employee
agrees to, at the request of Employer,  act as a consultant  with respect to the
Employer's  excursion  boat  gambling  business  at  Dubuque,  Iowa  during  the
remaining Term of the Agreement (the "Consulting Services"), consistent with the
Employee's  availability  and  knowledge.  In  consideration  of any  Consulting
Services to be provided by Employee  hereunder,  and in lieu of the compensation
pursuant to Section 4 hereof,  Employer  shall pay Employee a consulting  fee of
50% of Employee's base salary per annum for the first year and 40% of Employee's
base salary per annum thereafter for each year in which Employee is engaged as a
consultant,  payable in equal  quarterly  installments  at the beginning of each
quarter of such year. Employer shall also reimburse and pay Employee for any and
all  reasonable  expenses  incurred  by Employee in  performing  the  Consulting
Services, including, but not limited to, reimbursement of travel expenses in the
event that Employee  agrees to perform  Consulting  Services at a location other
than Employer's place of business in Dubuque, Iowa. While Employee is engaged as
a  consultant  during  the  Term of this  Agreement,  Employee  shall  (i) be an
independent contractor with full power and authority to select the means, manner
and method of performing the Consulting Services without direction or control of
Employer, (ii) not be an agent or employee of the Employer,  (iii) have no right
or power to bind the Employer under any agreement or to transact any business or
make any  representations  or promises in the Employer's  name or on its behalf,
except  insofar  as she  is  expressly  authorized  to do so in  writing  by the
Employer,  and (iv) continue to be bound by the provisions of paragraph  8(c)(1)
below.  In her capacity as a consultant  hereunder,  Employee  shall be entitled
during the Term to provide consulting services to other persons or entities that
are not directly  competing  with the Employer,  engaged in the casino or gaming
business located within a 50 mile radius of Dubuque, Iowa.

     6. SALE OF EMPLOYER'S  BUSINESS.  In the event the controlling  interest in
the Employer or  substantially  all of the Employer's  assets and operations are
transferred  or sold and the sale or  transfer  is closed at any time during the
Term of this  Agreement,  Employee  shall  receive  at the  time of  closing  as
severance pay an amount equal to twelve (12) months' base salary. This paragraph
shall not be  applicable  so long as the  transfer  is to or for the  benefit of
Brent Stevens or so long as Brent Stevens  remains as Managing Member and/or CEO
of the Employer.

     7.  INDEMNIFICATION.  Employer  shall  indemnify,  defend and hold and save
Employee, her heirs,  administrators or executors and each of them harmless from
any and all actions and causes of action, claims, demand,  liabilities,  losses,
damages  or  expenses,  of  whatsoever  kind and  nature,  including  judgments,
interest and reasonable attorney's fees and all other reasonable costs, expenses
and charges which Employee, her heirs, administrators or



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executors  and  each of them  shall  or may at any  time or from  time to  time,
subsequent to the effective date of this Agreement,  sustain or incur, or become
subject  to by  reason  of any  claim or claims  against  Employee,  her  heirs,
administrators  or executors  and each of them while acting  within the scope of
her  employment,  except for gross  negligence,  misconduct  or criminal acts or
omissions on the part of the Employee,  and provided that  Employee,  her heirs,
administrators  or  executors  or one of them  properly  and  promptly  notifies
Employer of adverse  claims or  threatened  or actual  lawsuits.  Employee,  her
heirs,  administrators  or  executors as  appropriate,  shall  provide  complete
cooperation  to Employer,  its  attorneys  and agents in such case to the extent
possible.

     8. NON-COMPETITION AGREEMENT.

          a. Both parties  acknowledge  that the  Employee's  position is one of
     considerable    responsibility   and   requires   considerable    training,
     relationships and contacts with customers,  clients and potential customers
     and  clients,  and  experience  that it will take a  substantial  amount of
     Employer's  time to replace an employee  who has  received  such  training,
     relationships,  contacts  and  experience  as  are  typically  afforded  by
     Employer; and

          b. As a condition of employment  and continued  employment of Employee
     by Employer,  the parties mutually agree that  confidentiality  of material
     matters is  required in  connection  with the  business of Employer  and in
     connection  with the operations  and the names of Employer's  customers and
     clients, and that accordingly,  it is vital that Employer be protected from
     direct or indirect competition from key employees whose employment might be
     terminated by or from Employer,  said protection required during employment
     and for a reasonable period of time after termination thereof.

          c. It is hereby  agreed by and between the parties  that, as a part of
     the valuable  consideration  of the employment and continued  employment of
     Employee by Employer:

               (1) That  Employee  shall  treat  and keep  secret  all  material
          matters  relating  directly or indirectly to the business of Employer,
          including  but not limited to, the content of all manuals,  memoranda,
          production,  marketing,  promotional and training materials, financial
          statements,  sales and operations records,  business methods,  systems
          and forms,  production  records,  billing rates, cost rates,  employee
          salaries and work histories, customer and client lists, mailing lists,
          processes,  inventions,  formulas,  job  production  and cost records,
          special  terms  with  customers  and  clients  or any  other  material
          information relative to the past, present or prospective customers and
          operations as  completely  confidential  information  entrusted to her
          solely for use in her  capacity as an employee of  Employer.  Employee
          further  agrees not to keep  and/or use any  papers,  records,  or any
          information  whatsoever  relative to any of the matters referred to in
          the preceding sentence,  nor shall Employee furnish, make available or
          otherwise divulge such information to any person during or after her



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          employment  by Employer,  unless  specifically  instructed to do so in
          writing signed by the Chief Executive Officer of Employer.

               (2)  That  if  for  any  reason  Employee  shall  voluntarily  or
          involuntarily  terminate her  employment or Employer  shall  terminate
          Employee, it is specifically agreed and understood that Employee,  for
          a period  of one (1) year  from the date of  termination,  shall  not,
          within  a  radius  of  fifty   (50)  miles  of   Dubuque,   Iowa  (the
          "Territory"),  directly or indirectly  engage in, be interested in, or
          in any manner  whatsoever be connected  with any casino located within
          the Territory.

               (3)  That  if  for  any  reason  Employee  shall  voluntarily  or
          involuntarily  terminate her  employment or Employer  shall  terminate
          Employee, it is specifically agreed and understood that Employee,  for
          a period  of one (1) year  from the date of  termination,  shall  not,
          directly or indirectly,  in any capacity  whatsoever,  hire or solicit
          for employment any employee of Employer.

     9. ENTIRE AGREEMENT;  SUCCESSORS AND ASSIGNS.  This Agreement  contains the
entire agreement of the parties and there are no other promises or conditions in
any other agreement whether oral or written. This Agreement supersedes any prior
written or oral agreement between the parties.

     10. AMENDMENTS. This Agreement may be modified or amended, if the amendment
is made in writing and is signed by both parties.

     11.  SEVERABILITY.  If any provision of this Agreement  shall be held to be
invalid or unenforceable for any reason, the remaining provisions shall continue
to be  valid  and  enforceable.  If a court  finds  that any  provision  of this
Agreement is invalid or  unenforceable,  but that by limiting such  provision it
would become valid and  enforceable,  then such provision  shall be deemed to be
written, construed and enforced as so limited.

     12. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any
provision of this Agreement  shall not be construed as a waiver or limitation of
that party's right to  subsequently  enforce and compel strict  compliance  with
every provision of this Agreement.

     13.  APPLICABLE  LAW. This  Agreement  shall be governed by the laws of the
State of Iowa.

     14.  REPRESENTATION.  The undersigned  persons executing this Agreement for
and on behalf of Employer as its sole Managing Member and as its General Manager
represent  that they are fully  authorized  to sign  this  Agreement  for and on
behalf of Employer, and Employee may rely upon this representation.




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IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement  effective
the day and year first above written.

EMPLOYER:                                 EMPLOYEE:
Peninsula Gaming Company, LLC


By   /s/ M. Brent Stevens                     /s/ Natalie Schramm
  ---------------------------------      --------------------------------
      M. Brent Stevens                          Natalie Schramm
      Chief Executive Officer




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