Exhibit 10.06

SENIOR EXECUTIVE RETENTION AGREEMENT

THIS
AGREEMENT ("Agreement"), by and between ALADDIN GAMING, LLC a Nevada limited liability company (the "Company"), and Thomas A. Lettero (the "Executive").

WITNESSETH:

WHEREAS,
the Company and Executive entered into that certain employment agreement dated March 7, 2000 ("Employment Agreement"), and has determined that the Executive is a key
executive of the Company and it is the desire of the Company to assure itself of the availability of the services of the Executive and to provide assurances to the Executive of employment in the event
of the commencement of a Chapter 11 case for the Company or in the event of a Change of Control (collectively an "Event");

WHEREAS,
in the event that there occurs an Event, the Company believes it imperative that the Company be able to rely upon the Executive to continue in his position and, if required,
to assess any proposal or transaction which would cause an Event and advise management and the Company as to whether such proposal or transaction would be in the best interest of the Company and its
members, free from concern that his recommendations may adversely affect his continued employment:

NOW,
THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of his advice and counsel notwithstanding the possibility,
threat or occurrence of an Event and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged, the Company and the Executive agree as follows:

1.Services During Certain Events. The Executive agrees that he will not voluntarily leave the employ of the Company
and will continue to render services to the Company as provided in the Employment
Agreement until the later of 18 months from the date of this Agreement or an Event Completion, as hereinafter defined ("Expiration Date"), provided, however, if no Event occurs within
18 months from the date of this Agreement, the Expiration Date shall be 18 months from the date of this Agreement. In the event the Employment Agreement terminates prior to the
Expiration Date, then the Employment Agreement shall be extended through the Expiration Date unless otherwise terminated as provided therein.

2.Incentive Bonus Payments.From the date of this Agreement until the earlier of (a) the Expiration Date,
(b) the date the Company terminates the Executive with Cause or (c) the Executive quits the employ of the Company without Good Reason, the Company shall pay Executive, in addition to the
Base Salary pursuant to the Employment Agreement, less customary payroll deductions, the following bonus(es):



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3.Retention Bonus Payment.If there is an Event prior to the Expiration Date, then upon the Payment Date, the Company
shall pay to the Executive as compensation for services rendered to the Company cash in an amount equal to three (3) times his then-existing aggregate annual base salary, (excluding
bonus or options) less customary payroll deductions; provided, however, the foregoing shall not apply if the Executive has quit without Good Reason or has been terminated by the Company with Cause
prior to the Event's occurrence.

4.Definitions.



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5.Indemnification.If litigation shall be brought to enforce or interpret any provision contained herein or to recover
from the Executive any moneys paid pursuant to this Agreement, the Company, to the extent permitted by applicable law and the Company's Articles of Organization, hereby agrees to indemnify the
Executive for his or her reasonable attorneys' fees and disbursements incurred in such litigation, and hereby agrees to pay any money judgment obtained from the Executive and prejudgment interest on
any money judgment obtained from the Executive.

6.Payment Obligations Absolute.The Company's obligation to pay the Executive the payment and to make the arrangements
provided for herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or
other right which the Company may have against him or anyone else. All amounts payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the
Company shall be final, and the Company will not seek to recover all or any part of such payment from the Executive or from whosoever may be entitled thereto, for any reason whatsoever. The Executive
shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment shall in
no event effect any reduction of the Company's obligations to make the payments and arrangements required to be made under this Agreement.

7.Continuing Obligations.The Executive shall retain in confidence any confidential information known to him
concerning the Company and its respective businesses so long as such information is not publicly disclosed and otherwise comply with Section 6(a) of the Employment Agreement in all respects.

8.Successors.This Agreement shall be binding upon and inure to the benefit of the Executive and his estate and the
Company and any successor of the Company, but neither this Agreement nor any rights arising hereunder may be assigned or pledged by the Executive.

9.Severability.Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

10.Prior Agreements.This Agreement supersedes any prior severance and retention agreement between the Executive and
the Company. Notwithstanding the prior sentence, this Agreement does not supersede or amend the Employment Agreement except as to those provisions relating to retention and severance, and is a
separate and independent contract between the Company and the Executive.

[Balance
of Page Intentionally Left Blank]

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11.Chapter 11 Case. In the event the Company commences a Chapter 11 case prior to the Expiration Date, the company
shall file a motion within two (2) business days of the petition date for the Chapter 11 Case to assume this Agreement pursuant to Section 365 of the Bankruptcy Code. In the event
an order is not entered by the Bankruptcy Court approving the assumption of this Agreement within thirty (30) days of the petition date, which order does not become a final,
non-appealable order within fifteen (15) days thereof, Executive has the right to terminate his employment with the Company with good reason.

12.Controlling Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of
the State of Nevada.

13.Termination. This Agreement shall terminate on the Expiration Date; however, the Company's obligations pursuant to
Section 3, 5, 6 and 8 above and the Executive's obligations pursuant to Sections 6, 7 and 9(j) of the Employment Agreement, shall survive termination.

IN
WITNESS WHEREOF, the parties have executed this Agreement on the 11th day of June, 2001.

| |  | ALADDIN GAMING, LLC
| |  | -------------------
| |  | By:                
| |  | Its:               
| |  | EXECUTIVE          
| |  | By:                

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