Document:

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                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is made and entered into
this 7th day of March 2000, by and between Aladdin Gaming, LLC ("Company"),
Aladdin Gaming Holdings, LLC ("Gaming Holdings") and Thomas A. Lettero
("Executive").

         WHEREAS, the Company considers it important and in its best interest
and the best interest of its owners to foster the employment of key
management personnel and desires to retain the services of Executive on the
terms and subject to the conditions of this Agreement;

         WHEREAS, the Executive desires to accept employment with the Company
to render services to the Company on the terms and subject to the conditions
of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the following
mutual covenants and agreements, the parties agree as follows:

1.       EMPLOYMENT.

         a.   The Company hereby employs Executive as Senior Vice President and
              Chief Financial Officer of Gaming Holdings and the Company and
              Executive shall serve as a member on the Company's Executive
              Committee. Executive hereby accepts such employment and positions
              for the compensation and subject to the terms and conditions in
              this Agreement.

         b.   Notwithstanding anything to the contrary contained in this
              Agreement, this Agreement shall only be effective upon the earlier
              of: (i) the lawful termination of Mr. Lettero's current employment
              agreement and any and all obligations therein; or (ii) the date
              upon which Mr. Lettero's current employer waives in writing the
              notification and termination provisions of his current employment
              agreement ("Effective Date").

2.       TERM. The term of the Executive's employment under this Agreement
("Term") shall commence on the Effective Date ("Commencement Date") and shall
continue for three (3) years unless earlier terminated as provided in this
Agreement. (The date of any termination of this Agreement as provided herein
is the "Termination Date.")

3.       DUTIES AND RESPONSIBILITIES. During the Term, Executive will serve
as Senior Vice President and Chief Financial Officer of Gaming Holdings and
the Company and Executive shall serve as a member on the Company's Executive
Committee. Executive will have such authority, responsibilities and duties as
are customarily associated with this position. At all times Executive shall
faithfully and to the best of his abilities perform his duties and
responsibilities hereunder to the reasonable satisfaction of the Board of
Directors. In addition, Executive shall devote his full time, efforts and
attention to the business and affairs of the Company, use his best efforts to
further the interest of the Company and at all times conduct himself in a
manner which reflects credit upon the Company.

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4.   COMPENSATION.

     a.  SALARY. For his services hereunder, the Company shall pay Executive a
         base salary of Three Hundred Thousand Dollars ($300,000) ("Base
         Salary") for each consecutive 12-month period during the Term beginning
         with the Commencement Date subject, however, to Section 4(b)(ii). (Each
         such consecutive 12 month period is an "Employment Year"). Executive's
         Base Salary will be prorated for any partial Employment Year. On each
         year after the Commencement Date, the Board of Directors will consider
         an increase in the Base Salary based upon criteria determined by the
         Board of Directors and applicable to other members of the executive
         management group. Any such increases, however, shall be in the sole
         discretion of the Board of Directors. There shall be no reduction in
         Base Salary during the Term. The Base Salary shall be payable in equal
         periodic installments subject to customary deductions for social
         security, other taxes and amounts customarily withheld from salaries of
         employees of the Company, all in accordance with the Company's usual
         and customary payroll practices.

     b.  SIGNING BONUS.

         (i)      Subject to the terms and conditions of this
                  Agreement, including, without limitation, the
                  provisions of Section 4(b)(ii) below, the Company
                  shall pay to the Executive, on the Commencement Date,
                  a signing bonus ("Signing Bonus") in the amount of
                  $300,000.

         (ii)     In the event that this Agreement is terminated pursuant
                  Section 5(c) or (d) below, the Executive shall pay to the
                  Company (a) in the event that the Termination Date with
                  respect such termination occurs prior to the second
                  anniversary of the Commencement Date, an amount equal to the
                  net after-tax amount of the Signing Bonus received by the
                  Executive and (b) in the event that the Termination Date with
                  respect such termination occurs after the second anniversary
                  of the Commencement Date, an amount equal to the product of
                  (x) the net after-tax amount of the Signing Bonus received by
                  the Executive times (y) a fraction (1) the numerator of which
                  shall be the remainder of (A) 365 minus (B) the number of days
                  elapsed from the second anniversary of the Commencement Date
                  to the date of such termination and (2) the denominator of
                  which shall be 365; provided, that during the third Employment
                  Year only, the Base Salary shall be reduced by the amount of
                  the Signing Bonus. In the event that this Agreement is
                  terminated other than pursuant to Section 5(c) or (d) below,
                  the Executive shall be entitled to retain the full amount of
                  the Signing Bonus.

     c.  ANNUAL BONUS. From and after the date the Company opens and begins
         operating the Aladdin Resort & Casino ("Operational Date"). Executive
         is eligible to receive from the Company an annual cash bonus, provided
         Executive is employed by the Company on the date the Board of Directors
         grants the bonus. The Board of Directors will determine such criteria
         and standards in a bonus plan, which will be competitive with industry
         standards and applicable to other members of the executive management
         group. Executive's bonus

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         will be prorated accordingly if the Aladdin Resort & Casino is only
         open and operating during a portion of the bonus year.

     d.  BENEFITS. During the Term, Executive shall be entitled to receive from
         the Company such health, pension, retirement and other employee
         benefits as the Company provides to other members of the executive
         management group. During the Term, the Company, at its expense, will
         provide Executive with term life insurance in the amount of Executive's
         annual Base Salary. During the Term, the Company, at its expense, will
         provide Executive with long-term disability coverage under a group
         long-term disability plan the Company provides other members of the
         executive management group.

     e.  VACATION. Executive shall be entitled to two (2) weeks paid vacation
         for each Employment Year, prorated for any partial Employment
         Year. The Board of Directors in its discretion may increase Executive's
         vacation entitlement. The timing and duration of specific vacations
         will take into account the business needs of the Company and will be
         mutually agreed to by the parties. In the event any such vacation is
         not used by Executive in any Employment Year, the Executive has a right
         to accumulate and carry forward such number of unused vacation days
         from year to year as may be consistent with the Company's policy for
         other members of the executive management group. Upon termination of
         employment, all unused vacation time shall be paid to Executive.

     f.  REIMBURSEMENT OF EXPENSES. The Company shall pay all reasonable
         expenses incurred by Executive in the performance of his duties and
         responsibilities for the Company. Executive shall submit to the Company
         statements and documentation reflecting such expenses incurred, with
         such detail, backup and confirmation as the Company may reasonably
         require. Subject to any audit Company deems necessary, the Company
         shall promptly reimburse Executive the full amount of any such expenses
         incurred by Executive.

     g.  EQUITY INTEREST. Executive will receive a restricted membership
         interest of one percent (1.0%), or the economic equivalent thereof,
         in Gaming Holdings which Gaming Holdings is currently evaluating
         which may include, but not be limited to, a "profits only interest,"
         "option," or "phantom stock" (collectively, "Equity"). Such Equity
         arrangement shall include the right to receive one percent (1%)
         of the distributions which are made to the holders of Gaming Holdings
         Common Membership Interests. When Gaming Holdings finalizes the
         Equity arrangement, the parties will amend this Agreement so that the
         Executive shall participate in such program substantially in the form
         previously presented to the Executive. Such Equity arrangement shall
         vest 1/3 on each anniversary of the Commencement Date as that upon
         the completion of the 3-year term of the Agreement, such Equity
         arrangement shall be fully vested. If Gaming Holdings does not create
         an Equity arrangement by the Operational Date, the parties will
         negotiate in good faith to establish a compensation arrangement in lieu
         of an Equity arrangement, which would have the same economic benefit to
         the Executive.

     h.  AUTO ALLOWANCE. During the Term, the Company shall pay Executive an
         auto allowance of Five Hundred Dollars ($500) per month.

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5.   TERMINATION. This Agreement shall terminate in accordance with the
     following provisions:

     a.  EXPIRATION OF THE TERM. Unless earlier terminated in accordance with
         the provisions hereof, this Agreement shall terminate on expiration of
         the term as provided in Section 2.

     b.  DEATH. If the Executive dies during the Term, this Agreement shall
         terminate, with the Termination Date being the date of the Executive's
         Death.

     c.  DISABILITY. If the Executive has been absent from service to the
         Company as required in this Agreement for a period of ninety (90) days
         or more during any one hundred eighty (180) day period during the Term
         as a result of any physical or mental disability, the Company has the
         right to terminate this Agreement, the Termination Date being ten (10)
         days after notice thereof is given to Executive.

     d.  TERMINATION BY COMPANY FOR CAUSE. The Company has the right to
         terminate this Agreement for Cause as defined herein, the Termination
         Date being the date upon which the Company delivers notice thereof to
         the Executive. For purposes of this Agreement, Cause shall mean
         Executive's: (1) conviction of any felony; (2) embezzlement or
         misappropriation of money or property of the Company; (3) denial,
         rejection, suspension or revocation of any gaming license or permit;
         (4) Executive's material breach of section 6 hereof which material
         breach has an adverse impact on the Company; and (5) Executive quits
         his employment with the Company without Good Reason. Good Reason is
         defined as: (i) the assignment to Executive of duties materially
         inconsistent with his position and title without his consent; or (ii) a
         material reduction in Executive's duties, authorities and
         responsibilities without his consent; or (iii) a reduction by the
         Company in Executive's Base Salary, in effect immediately prior to such
         reduction, without his consent, provided Executive gives the Company
         written notice specifying such assignment or reduction and the Company
         has not cured or abated such assignment or reduction within twenty (20)
         days thereafter; or (iv) the Operational Date has not occurred within
         365 calendar days from the Effective Date.

     e.  TERMINATION BY COMPANY WITHOUT CAUSE OR TERMINATION BY EXECUTIVE WITH
         GOOD REASON OR UPON A CHANGE OF CONTROL. Subject to the provisions of
         Section 8(e), (i) the Company has the right to terminate this
         Agreement without Cause, (ii) the Executive has the right to terminate
         this Agreement for Good Reason and (iii) the Executive has the right to
         terminate this Agreement upon a Change of Control by giving the other
         party written notice thereof. In each case above, the Termination Date
         being the date upon which notice of termination is delivered by the
         terminating party to the other party. For purposes of this Agreement, a
         Change of Control shall be deemed to occur only if collectively the
         Sommer Family Trust and London Clubs International, plc, through their
         affiliates, own less than fifty percent (50%) of the membership
         interests of either Gaming Holdings or the Company.

6.   EXECUTIVE'S COVENANTS. The Executive acknowledges that the Company and
     Gaming Holdings have substantial, legitimate and continuing interest in the
     protection of their

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     business relationships with others including, without limitation,
     current and prospective employees, consultants, advisors, customers,
     vendors, suppliers, partners or joint venturers and financing sources,
     and in the protection of their Confidential Information and have
     invested substantial sums, time and effort and will continue to invest
     substantial sums, time and effort to develop, maintain and protect such
     relationships and Confidential Information. Accordingly, Executive
     covenants and agrees as follows:

     a.  CONFIDENTIALLY. During the Term and thereafter, Executive shall keep
         secret and retain in strictest confidence and shall not, without the
         prior written consent of the Company or Gaming Holdings, furnish, make
         available or disclose to any third party or use for the benefit of
         himself or any third party any Confidential Information. Confidential
         Information is information related to or concerning Gaming Holdings,
         the Company and their businesses which is confidential, proprietary or
         not generally known to and cannot be readily ascertained through proper
         means by persons or entities (including Gaming Holdings' and the
         Company's present or future competitors), who can obtain any type of
         value from its disclosure or use. Confidential Information includes all
         secret, confidential or proprietary information, knowledge or data
         specifically relating to Gaming Holdings and the Company, such as,
         without limitation, finances and financing methods, sources, proposals
         or plans; operational methods; marketing or development proposals,
         plans or strategies; pricing strategies; business or property
         acquisition or development proposals or plans; new personnel
         acquisition proposals or plans; customer lists and any descriptions or
         data concerning current or prospective customers. While employed by the
         Company and in furtherance of the business and for the benefit of
         Gaming Holdings and the Company, Executive may provide Confidential
         Information as appropriate to attorneys, accountants, financial
         institutions, and other persons or entities engaged in business with
         the Company and to Executive's personal attorney and/or accountant to
         the extent necessary to advise Executive; provided, however, such
         individual(s) will be similarly bound to maintain the confidentiality
         of the information disclosed.

     b.  NON-COMPETITION.

         1)   Executive covenants and agrees that he will not compete with the
              Company, its affiliates or subsidiaries at any time during the
              Term, or for one (1) year from the Termination Date upon a
              Termination by the Company for Cause under Section 5(d) (including
              Executive quitting without Good Reason under Section 5(d)(5)).
              Under this paragraph, Executive agrees that he will not, directly
              or indirectly, whether as employee, owner, partner, agent,
              director, officer, consultant, independent consultant or
              stockholder (except as the beneficial owner of not more than 2% of
              the outstanding shares of a corporation, any of the capital stock
              of which is listed on any national or regional securities exchange
              or quoted in the daily listing of over-the-counter market
              securities and, in each case, in which the Executive does not
              undertake any management or operational or advisory role) or in
              any other capacity, for his own account or for the benefit of any
              other person or entity, establish, engage, work for or be
              connected in any manner with any person or entity which is, at the
              time, engaged in a business which is in competition with the
              business of the Company (or any of its subsidiaries or
              affiliates); it being understood that for purposes of this Section
              6(b), the business of owning, managing, operating or financing a
              casino or similar gaming

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              activities in Clark County, Nevada, shall be deemed to be
              business in which the Company is engaged; provided, however,
              nothing herein prohibits Executive from a working for a
              competing business outside Clark County, Nevada.

         2)   Notwithstanding anything to the contrary contained herein,
              Executive shall not be subject to the non-competition provisions
              of this Agreement, if this Agreement is terminated other than
              pursuant to the provisions of Section 5(d).

     c.  EMPLOYEES OF THE COMPANY. For one (1) year following the Termination
         Date, Executive shall not, directly or indirectly, solicit, or cause
         others to solicit, for employment by any person or entity other than
         the Company, any employee of the Company or encourage any such employee
         to leave the employment of the Company.

     d.  PROPERTY OF THE COMPANY. Executive acknowledges and agrees that all
         memoranda, notes, lists, records and other documents or papers,
         including copies thereof, containing or reflecting Confidential
         Information (whether or not such items are kept or stored in computer
         memories, microfiche, hard copy or any other manner) made or compiled
         by Executive or made available to Executive are and remain the property
         of the Company ("Company Property") and shall be delivered to the
         Company promptly upon any termination of this Agreement. Under Section
         5 hereof, Executive shall retain no copies of Company Property
         following the Termination Date.

     e.  REASONABLENESS AND SEVERABILITY OF COVENANTS. The Executive
         acknowledges and agrees that the Executive's covenants herein are
         necessary for the protection of the Company's legitimate interests, are
         reasonable and valid in duration and geographical scope, and in all
         other respects. If any court determines that any of the Executive
         covenants or any part thereof, invalid or unenforceable, the remainder
         of the restrictive covenants shall not thereby be affected and shall be
         given full effect without regard to the invalid portions.

     f.  BLUE-PENCILLING. If any court determines that any of the Executive's
         covenants, or any part thereof, is unenforceable because of the
         duration or geographical scope of such provision, such court shall have
         the power to reduce the duration or scope of such provision, as the
         case may be, and, in its reduced form, such provision shall then be
         enforceable.

7.   NON-DISPARAGEMENT. Each of the parties agrees that after the Termination
     Date, neither shall, publicly or privately, disparage or make any
     statements (written or oral) that could impugn the integrity, acumen
     (business or otherwise), ethics or business practices of the other, except
     in each case, to the extent (but solely to the extent) necessary: (i) in
     any judicial or arbitral action to enforce the provisions of this
     Agreement; or (ii) in connection with any judicial or administrative
     proceeding to the extent required by applicable law.

8.   EFFECT OF TERMINATION. The following provisions shall apply in the event of
     the termination of this Agreement as provided in Section 5 above, and
     neither party shall have any further liability or obligation to the other,
     except as provided herein:

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     a.  EXPIRATION OF TERM. Upon expiration of the term under Section 5(a)
         hereof, this agreement shall terminate and be of no further force and
         effect, except as provided in Sections 4(b)(ii), 6(a), 6(c), 6(d),
         6(e), 6(f) and 7; provided that, subject to the provisions of Section
         4(b)(ii), the Executive shall be entitled to such salary, bonus and
         benefits then accrued or vested to the Termination Date, and any
         expense reimbursement amounts accrued to the Termination Date;

     b.  DEATH. Upon termination of this Agreement as provided in Section 5(b)
         hereof, this Agreement shall terminate and be of no further force and
         effect; provided, further, that the Company shall pay to Executive's
         estate any salary, bonus and benefits then accrued or vested to the
         Termination Date, and any expense reimbursement amounts accrued to the
         Termination Date;

     c.  DISABILITY. Upon termination of this Agreement as provided in Section
         5(c) hereof, this Agreement shall terminate and be of no further force
         and effect, except as provided in Sections 6(a), 6(c), 6(d), 6(e), 6(f)
         and 7; provided that Executive shall be entitled to such salary, bonus
         and benefits then accrued or vested to the Termination Date, and any
         expense reimbursement amounts accrued to the Termination Date;

     d.  TERMINATION PURSUANT TO SECTION 5(d). Upon termination of this
         Agreement as provided in Section 5(d) hereof, this Agreement shall
         terminate and be of no further force and effect, except as provided in
         Sections 6 and 7; provided that Executive shall be entitled to such
         salary, bonus and benefits then accrued or vested to the Termination
         Date, and any expense reimbursement amounts accrued to the Termination
         Date;

     e.  TERMINATION PURSUANT TO SECTION 5(e). Upon termination of this
         Agreement as provided in Section 5(e) hereof, this Agreement shall
         terminate and be of no further force and effect, except as provided in
         Sections 6(a), 6(c), 6(d), 6(e), 6(f) and 7; provided, further, that
         Executive shall be entitled to such salary, bonus and benefits
         including but not limited to health benefits and expense reimbursements
         to which Executive would have been entitled for the remainder of the
         Term or twelve (12) months, whichever is longer, as if there had been
         no earlier termination.

9.   GENERAL PROVISIONS.

     a.  ASSIGNMENT. Neither this Agreement nor any right or interest hereunder
         shall be assignable by the Executive, or the Company or Gaming Holdings
         without prior written consent of the other; provided, that (1) in the
         event of the Executive's Death during the Term, the Executive's estate
         and his heirs, executors, administrators, legatees and distributees
         shall have the rights and obligations set forth herein, as provided
         herein, and (2) nothing contained in this Agreement shall limit or
         restrict the Company's ability (A) to merge or consolidate or effect
         any similar transaction with any other entity, irrespective or whether
         the Company is the surviving entity (including a split up, spin off or
         similar type transaction), provided, that one or more of such surviving
         entities shall continue to be bound by the provisions hereof binding
         upon the Company, (B) to assign this Agreement in conjunction with a
         sale of all or substantially all of the Company's

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         assets, or (C) an assignment of this Agreement to an affiliate
         controlled by or under common control with the Company. Gaming
         Holdings has the same rights and obligations under this Section as the
         Company.

     b.  BINDING AGREEMENT. Except as otherwise provided in this Agreement, this
         Agreement shall be binding upon, and inure to the benefit of, the
         Executive, Gaming Holdings and the Company and their respective heirs,
         executors, administrators, legatees and distributees, successors and
         permitted assigns. Any such successor of the Company or Gaming Holdings
         shall be deemed substituted for the Company or Gaming Holdings under
         the terms of this Agreement for all purposes. As used herein,
         "successor" shall include any person, firm, corporation or other
         business entity which at any time, whether by purchase, merger or
         otherwise, directly or indirectly acquires all or substantially all or
         the assets or business or the Company or Gaming Holdings and supercedes
         any prior understandings or agreements between the parties hereto.

     c.  AMENDMENT OF AGREEMENT. This Agreement may not be modified or amended
         except by an instrument in writing signed by the parties hereto.

     d.  SEVERABILITY. If, for any reason, any provision of this Agreement is
         determined to be invalid or unenforceable, such invalidity or lack of
         enforceability shall not affect any other provision of this Agreement
         not so determined to be invalid or unenforceable, and each such other
         provision shall, to the full extent consistent with applicable law,
         continue in full force and effect, irrespective of such invalid or
         unenforceable provision. Gaming Holdings has the same rights and
         obligations under this Section as the Company.

     e.  ENTIRE AGREEMENT. Except for those matters detailed in Section 4(f),
         this Agreement represents the entire agreement and understanding
         between the Company, Gaming Holdings and the Executive concerning the
         matters herein and supercede any prior understandings or agreements
         between the parties.

     f.  INDEMNIFICATION. Notwithstanding the termination of this Agreement, the
         Company shall indemnify and hold Executive harmless to the full extent
         permitted by Chapter 86 of the Nevada Revised Statutes against costs,
         expenses, liabilities and losses, including reasonable attorney's fees
         and disbursements of counsel, incurred or suffered by him in connection
         with his service as an employee of the company during the Term of this
         Agreement.

     g.  NOTICES. For the purpose of this Agreement, notices and all other
         communications provided for in this Agreement shall be in writing and
         shall be deemed to have been duly given (1) when delivered, if sent by
         telecopy or by hand, (2) one business day after sending, if sent by
         reputable overnight courier service, such as Federal Express, or (3)
         three business days after being mailed, if sent by United States
         certified or registered mail, return receipt requested, postage
         prepaid. Notices shall be sent by one of the methods described above;
         provided, that any notice sent by telecopy shall also be sent by any
         other method permitted above. Notices shall be sent:

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           If to the Executive:  Thomas A. Lettero
                                 8704 Castle View Avenue
                                 Las Vegas, NV 89129

           If to the Company     Aladdin Gaming Holdings, LLC
           and/or Gaming         Aladdin Gaming, LLC
           Holdings:             831 Pilot Road
                                 Las Vegas, NV 89119
                                 Attn: Richard Goeglein

           With a copy to:       Aladdin Gaming Holdings, LLC
                                 Aladdin Gaming, LLC
                                 831 Pilot Road
                                 Las Vegas, Nevada 89119
                                 Attn: General Counsel

         or to such other address as either party may have furnished to the
         other in writing in accordance herewith, except that notice of change
         of address shall be effective only upon receipt.

     h.  COUNTERPARTS. This Agreement may be executed in several counterparts,
         each of which shall be deemed to be an original but all of which
         together shall constitute one and the same instrument. Gaming Holdings
         has the same rights and obligations under this Section as the Company.

     i.  INDULGENCES, ETC. Neither the failure nor any delay on the part of
         either party to exercise any right, remedy, power or privilege under
         this Agreement shall operate as a waiver thereof, nor shall any single
         or partial exercise of any right, remedy, power or privilege preclude
         any other or further exercise of the same or of any other right,
         remedy, power or privilege, nor shall any waiver of any right, remedy,
         power or privilege with respect to any occurrence be construed as a
         waiver of such right, remedy, power or privilege with respect to any
         other occurrence.

     j.  BINDING ARBITRATION. Except for an action by the company for injunctive
         or other equitable relief, any dispute or controversy arising under or
         in connection to this Employment Agreement shall be resolved through
         binding arbitration, conducted in Las Vegas, Nevada, in accordance with
         the rules of the American Arbitration Association. Judgment may be
         entered on the arbitration award in any court of competent
         jurisdiction.

     k.  HEADINGS. The headings of sections and paragraphs herein are included
         solely for convenience of reference and shall not control the meaning
         or interpretation of any of the provisions of this Agreement. Gaming
         Holdings has the same rights and obligations under this Section as the
         Company.

     l.  NEUTRAL CONSTRUCTION. Each party to this Agreement has had the
         opportunity to retain counsel, and to review and participate in the
         drafting of this Agreement, and, accordingly, the normal rule of
         construction to the effect that any ambiguities are to be resolved

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         against the drafting parties will not be employed or used in any
         interpretation of enforcement of this Agreement.

     m.  GAMING LAW. Anything to the contrary herein notwithstanding, the
         parties hereto agree and acknowledge that they are subject to and that
         they shall comply in all respects with the gaming laws of the state of
         Nevada including the Nevada Gaming Control Act and the rules and
         regulations promulgated by the Nevada Gaming Commission and the Gaming
         Control Board. To the extent anything in this Agreement is inconsistent
         with any gaming laws or regulations, the gaming laws and regulations
         shall control.

     n.  GOVERNING LAW. This Agreement has been executed and delivered in the
         state of Nevada, and its validity, interpretation, performance, and
         enforcement shall be governed by the laws of such state, without regard
         to principles of conflicts of laws.

                                       ALADDIN GAMING, LLC

                                       By: /s/ Richard J. Goeglein
                                          ------------------------------------
                                               Richard J. Goeglein
                                               President and Chief
                                               Executive Officer

                                       ALADDIN GAMING HOLDINGS, LLC

                                       By: /s/ Richard J. Goeglein
                                          ------------------------------------
                                               Richard J. Goeglein
                                               President and Chief
                                               Executive Officer

                                       EXECUTIVE

                                       /s/ Thomas A. Lettero
                                       ----------------------------------------
                                                   Thomas A. Lettero

                                       10<PAGE>

                                                              December 10, 1999

London Clubs International, p.l.c.
10 Brick Street
London WTY 8HQ, England

London Clubs Nevada Inc.
c/o Aladdin Gaming, LLC
831 Pilot Road
Las Vegas, Nevada  89119

         Re:  Aladdin Gaming Holdings, LLC Capital Restructuring

Ladies and Gentlemen:

         This letter, when fully executed, shall be a binding legal agreement.

         Reference is made to the following agreements:

         1.   Guaranty of Performance and Completion ("Completion Guaranty")
dated February 26, 1998, by London Clubs International, plc. ("LCI"), the
Trust under Article Sixth u/w/o of Sigmund Sommer (the "Trust") and Aladdin
Bazaar Holdings, LLC in favor of the Administrative Agent and the lenders, as
amended;

         2.   Contribution Agreement ("Contribution Agreement") dated
February 26, 1998 by and among the Trust, Aladdin Holdings, LLC, Sommer
Enterprises, LLC ("Sommer Enterprises"), LCI and London Clubs Nevada Inc.
("LCNI");

         3.   Operating Agreement ("Operating Agreement") of Aladdin Gaming
Holdings, LLC ("Gaming Holdings") dated February 26, 1998 by and among Sommer
Enterprises, LCNI, Aladdin Gaming Enterprises, Inc. ("Gaming Enterprises")
and GAI, LLC ("GAI"); and

         4.   Indenture ("Indenture") dated February 26, 1998 by and among
Gaming Holdings, Aladdin Capital Corp. and State Street Bank and Trust
Company, as Trustee.

         Capitalized terms used but not defined herein shall have the
meanings assigned to them in the above listed agreements. The Trust, LCI,
LCNI, Sommer Enterprises, Gaming Enterprises, GAI and Gaming Holdings hereby
agree as follows:

    I.   RESTATEMENT OF OPERATING AGREEMENT AND CONTRIBUTION AGREEMENT

<PAGE>

         In 1999 to and until September 30, 1999 the Guarantors under the
Completion Guaranty have contributed directly and indirectly $46,150,572 to
the capital of Gaming Holdings as Completion Guaranty Payments. Of this
amount, LCI has contributed $41,817,539 and the Trust has contributed
$4,333,034. It is anticipated that additional Completion Guaranty Payments
will be required.

         The Operating Agreement and the Contribution Agreement provide terms
and conditions with respect to Completion Guaranty Payments, Completion
Guaranty Excess Amounts and Delinquent Amounts. The Guarantors acknowledge
and agree that in connection with the current status of construction of the
Aladdin Hotel and Casino and the amounts of Completion Guaranty Payments,
Completion Guaranty Excess Amounts and Delinquent Amounts currently
anticipated, the Guarantors believe that the existing mechanism for
contributing such amounts is not adequate. Accordingly, the Guarantors and
the undersigned parties wish to and hereby restate the Operating Agreement
and the Contribution Agreement as appropriate and enter into a new agreement
with respect to Completion Guaranty Payments.

II   1999 COMPLETION GUARANTY PAYMENTS PRIOR TO OCTOBER 1, 1999.

         A.   CAPITAL CONTRIBUTIONS. Each Completion Guaranty Payment made by
a Guarantor directly or indirectly to Gaming Holdings from January 1, 1999
through September 30, 1999 shall be treated as contributed to the capital of
Gaming Holdings at the time actually made, and as made by, and credited to
the Capital Account of, the Guarantor or the affiliate of the Guarantor that
actually advanced the funds.

         B.   THE EXCESS CONTRIBUTION PREFERRED RETURN.   For purposes of
this Agreement, the Excess Contribution Preferred Return ('ECPR") shall mean
the total preferred return which accumulated from January 1, 1999 through
September 30, 1999 on LCI's Completion Guaranty Excess Amounts originating
prior to October 1, 1999, computed at the rate of 20% per annum. It is
determined and agreed that the total ECPR is $ 2,534,519.61.

         For all purposes of the Operating Agreement, the ECPR shall be
treated as accrued and unpaid cumulative preferred return at September 30,
1999.

         C.   SERIES C CONVERTIBLE PREFERRED SHARES. 1. Series C Convertible
Preferred Shares are hereby authorized and shall be issued to LCNI as of
October 1, 1999, as described and with the rights and properties set forth
below.

         a. Series C Convertible Preferred shares shall be issued to LCNI in
exchange for LCNI's capital contribution of $30,000,000 which shall be
treated as made with respect to the total Completion Guaranty Excess Amount
made by LCI in 1999 prior to October 1, 1999.

                                       -2-
<PAGE>

         b. The Series C Convertible Preferred Shares shall earn a return
equal to twenty percent (20%) per annum, cumulative and compounded
semi-annually from October 1, 1999.

         2.   LCI shall have the option to cause the conversion of all (but
not less than all) of the Series C Convertible Preferred Shares into Common
Shares at any time on or before April 30, 2000; the Series C Convertible
Preferred Shares shall cease earning a return on April 4, 2000. Such
conversion shall be effected as follows, with effect on and from the date
immediately following the date of conversion:

         a. Series C Convertible Preferred Shares relating to the $30,000,000
capital contribution shall be converted into Common Shares. Such transaction
shall have no effect on the LCNI Capital Account.

         b. The Percentage Interest of LCNI shall be increased by 15
percentage points, and the Percentage Interest of Sommer Enterprises shall be
decreased by 15 percentage points. The shift of Percentage Interest shall
constitute a transfer of a profits interest in Gaming Holdings with respect
to periods after the date of conversion, and will not involve or require any
transfer of or change in Capital Account amounts at the date of conversion.

         c. Series CC Preferred Shares are hereby authorized and shall be
issued to LCNI in exchange for the accrued and unpaid cumulative preferred
return on the Series C Convertible Preferred Shares from October 1, 1999
through the date of conversion. The unamortized amount relating to such
Series CC Preferred Shares shall continue to constitute accrued but unpaid
cumulative preferred return until such amounts are earned by Gaming Holdings
and are both allocated and distributed to the holder. The Series CC Preferred
Shares shall earn a return equal to twenty percent (20 %) per annum,
cumulative and compounded semi-annually.

         D.   SERIES D PREFERRED SHARES. 1. Series D Preferred Shares are
hereby authorized and shall be issued to LCNI or the Trust or a wholly owned
subsidiary of the Trust or Sommer Enterprises to be designated by the Trust,
as the case may be, as of October 1, 1999, as described and with the rights
and properties set forth below. Series D Preferred Shares and Series A
Preferred Shares shall be issued:
         a. to LCNI with respect to the accrued and unpaid preferred return
of $2,534,519.61 owed to LCI as of September 30, 1999;
         b. to LCNI with respect to the amount of capital contributions of
$471,157.25 made by LCI on behalf of the Trust in excess of $30,000,000;
         c. to LCNI with respect to the amount of Completion Guaranty
Payments of $11,346,382 made by LCI prior to October 1, 1999 for its own
account; and
         d. with respect to Completion Guaranty Payments made after October
1, 1999, as set forth in Article III, below. Series D Preferred Shares shall
earn a return equal to eighteen percent (18%) per annum, cumulative and
compounded semi-annually

         2.   REASONABLE COMMERCIAL EFFORTS. LCI and the Trust will use all
reasonable commercial efforts to cause the Series D Preferred Shares issued
to them

                                       -3-
<PAGE>

to be redeemable by Gaming Holdings as soon as practicable after the Opening
Date (subject to the terms of the Indenture) so as to facilitate a
refinancing of Gaming Holdings. LCI and the Trust shall keep each other and
their respective financial advisors informed of their efforts in this
respect. The Series A and D Preferred Shares shall be subject to a Redemption
Agreement between the Trust, LCNI, LCI and Gaming Holdings as provided in
Article VI herein.

         E.   SERIES E PREFERRED SHARES. Series E Preferred Shares are hereby
authorized and shall be issued to the Trust or a wholly owned subsidiary of
the Trust or Sommer Enterprises to be designated by the Trust as of October
1, 1999 with respect to Completion Guaranty Payments made by the Trust in
1999 prior to October 1, 1999 for its own account. The Trust or a wholly
owned subsidiary of the Trust or Sommer Enterprises to be designated by the
Trust shall be issued Series E Preferred Shares in exchange for the Trust's
capital contributions of $4,333,034. Series E Preferred Shares shall replace
any Series A Preferred Shares that may have been issued to Sommer Enterprises
with respect to Completion Guaranty Payments. Series E Preferred Shares shall
earn a return equal to thirty percent (30%) per annum, cumulative and
compounded semi-annually.

III  COMPLETION GUARANTY PAYMENTS AFTER OCTOBER 1, 1999

         Series A Preferred Shares and Series D Preferred Shares shall be
issued to LCNI and the Trust or a wholly owned subsidiary of the Trust or
Sommer Enterprises to be designated by the Trust in consideration of all
Completion Guaranty Payments made after October 1,1999 by LCI and the Trust,
respectively.

IV.  ALLOCATIONS OF PROFITS AND LOSSES, AND DISTRIBUTIONS

         With respect to the allocations of Profits and Losses, and
Distributions including distributions in liquidation, the Operating Agreement
is hereby amended to provide the following order of priority of Preferred
Shares: Series A Preferred Shares, Series D Preferred Shares, Series C
Convertible and Series CC Preferred Shares, and, collectively (pari passu)
Series E and B Preferred Shares.

V.   CONTRIBUTION PERCENTAGE

         The Contribution Agreement is amended to provide that effective
October 1, 1999, "Contribution Percentage" shall mean, for the purposes of
Completion Guaranty Payments, (a) 60% in the case of the Trust and (b) 40% in
the case of LCI.

                                       -4-
<PAGE>

    VI.  REDEMPTION AGREEMENT

         Gaming Holdings, the Trust, LCNI and LCI hereby enter into a
Redemption Agreement with regard to their respective rights to redeem or
purchase, as the case may be, the Series A and D Preferred Shares (as a unit
consisting of one Series A Preferred Share and one Series D Preferred
Share)("Redeemable Preferred Shares")) as follows:

         A.   REDEMPTION BY GAMING HOLDINGS. 1. Gaming Holdings shall have
the right, subject to and in conformity with the provisions of the Indenture
(and in any event, as soon as practicable after the Notes (as defined in the
Indenture) are paid in full), to redeem any amount of Redeemable Preferred
Shares at an amount equal to the fully accreted value of such shares at the
time of redemption, together with a "make whole" agreement (which shall be
comparable to the financing terms obtained by LCI and the Trust, as the case
may be, on an all reasonable commercial efforts basis, which efforts LCI and
the Trust will keep the other party and its financial advisors informed of),
whereby the holder of the Redeemable Preferred Shares being redeemed shall be
made whole by Gaming Holdings with respect to the holder's costs and expenses
incurred in financing the Redeemable Preferred Shares and making them
available for redemption by Gaming Holdings.

         2. The parties agree that all disputes concerning redemption of
Redeemable Preferred Shares by Gaming Holdings pursuant to VI.A.1. shall be
submitted to an expedited dispute resolution procedure.

         B.   PURCHASE BY THE TRUST OF REDEEMABLE PREFERRED SHARES HELD BY LCI.
         1.   If the Trust, Sommer Enterprises or a wholly owned subsidiary
of the Trust or Sommer Enterprises to be designated by the Trust is in a
position to offer payment to LCI or LCNI at the fully accreted value on the
date of offer to buy Redeemable Preferred Shares of Gaming Holdings held by
LCI and LCNI, the Trust, Sommer Enterprises or a wholly owned subsidiary of
the Trust or Sommer Enterprises to be designated by the Trust shall have the
right from time to time but not the obligation to purchase from LCI and LCNI
an amount of such shares so that the total Redeemable Preferred Shares held
by the Trust, Sommer Enterprises or a wholly owned subsidiary of the Trust or
Sommer Enterprises to be designated by the Trust and all its Affiliates
(including such Redeemable Preferred shares they may have held) would be up
to 60% of all outstanding Redeemable Preferred Shares at a price equal to
their then fully accreted value. LCI agrees to negotiate in good faith with
the Trust and/ or Sommer Enterprises any terms in connection with the above
contemplated purchase not specified herein.

         2.   Purchase by the Trust of any Redeemable Preferred Shares held
by LCI or LCNI shall include a "make whole" payment by the Trust to LCI or
LCNI consisting of (i) the Trust's applicable proportionate share of all
fees, transaction costs, call premiums and other expenses borne by LCI or
LCNI in connection with the financing of the acquisition of the Redeemable
Preferred Shares (but solely with respect to the proportionate share of the
proceeds from such financing which are directly invested in the Aladdin Hotel
and Casino project) and their purchase by the Trust including interest at the
rate of prime plus two percent (2%)per annum

                                       -5-
<PAGE>

from the time expenses were incurred by LCI to the time of the make whole
payment; and (ii) 100% of any increased tax consequences to LCI or LCNI
resulting from the purchase of the Redeemable Preferred Shares by the Trust
as opposed to redemption by Gaming Holdings.

              3.   Upon purchase by the Trust, and at its option to be
exercised at the time of purchase, the Redeemable Preferred Shares purchased
from LCI or LCNI may either (i) (a) be subordinated to those Redeemable
Preferred Shares still held by LCI or LCNI, but rank ahead of all other
Preferred Shares, and (b) earn a reduced unit return to be no greater than
twenty percent (20%) or less than fifteen percent (15%) per annum, cumulative
and compounded semi-annually to be determined no later than the time the
parties enter into formal amendments to the Operating and Contribution
Agreements; or (ii) (a) be PARI PASSU with the Redeemable Preferred Shares
still held by LCI or LCNI and (b) earn a reduced unit return equal to the
yield to worst on the Senior Discount Notes at the time of purchase by the
Trust plus 100 basis points, such return to be per annum, cumulative and
compounded semi-annually.

              4.   In the event that the Trust is in the position to offer
payment as set forth in Article VI. B (I) and (2) above, and makes a good
faith offer to purchase up to 60% of the Redeemable Preferred Shares but LCI
or LCNI, as the case may be, is unable to sell such shares for any reason,
LCI will negotiate in good faith with the Trust a "make whole" agreement
whereby the Trust shall be compensated no more than its actual losses, taking
account of the full costs including financing costs and "make whole" payments
it would have incurred in acquiring and holding such shares, and in any event
no more than the return it would have received by owning the Redeemable
Preferred Shares it offered to purchase from LCI or LCNI and exercising the
option set forth in VI. B(3)(i), less the return the Trust would receive if
it acquired an equivalent amount of United States Treasury securities, at the
then prevailing rate.

         C.   In the event that the terms of the financing arrangements
obtained by LCI with respect to financing future Completion Guaranty Payments
requires a transfer of Gaming Holdings common equity or profits interest to
LCI's lenders in the form of non-voting warrants, or otherwise ("Equity
Transfer"), LCNI shall be diluted by the initial one-half percent (1/2%) with
respect to the initial Equity Transfer. For the next nine (9) quarters after
the date of the initial Equity Transfer, Sommer Enterprises and LCNI shall
bear any dilution such that with respect to each of the nine (9) quarters,
Sommer Enterprises and LCNI shall be diluted in a ratio of 1.5 to 1.2,
respectively. For the following nine (9) quarters, LCNI shall bear the full
dilutive effect of all additional Equity Transfers not to exceed an equity
dilution of 2.7% for such period and not to exceed a total equity dilution of
4.4% for eighteen (18) quarters. The dilution percentages set forth in this
section are with respect to LCI's and the Trust's current understanding that
a transfer of 5.9% of the common equity of Gaming Holdings is required as
part of the cost of LCI's bank financing in the manner set forth above. If
such requirements are modified, the foregoing provision shall be modified by
agreement of the parties hereto.

VII. TRANSFER OF SHARES

                                       -6-
<PAGE>

              A.   The Operating Agreement is amended to provide that any
holder of any class of Preferred Shares of Gaming Holdings shall have the
right to Transfer all or part of its Preferred Shares, and all or part of its
Common Shares, subject to receipt of all necessary approvals required by the
Nevada Gaming Authorities and to the rights of the Lenders, and in no event
to a Prohibited Transferee and providing the Trust, Sommer Enterprises, LCI
or LCNI, as the case may be, the right of first offer and last refusal as set
forth in the Operating Agreement.

              B.   The parties further agree that the definitions of
Permitted Transferee and Prohibited Transferee in the Operating Agreement,
respectively, are amended to provide as follows:

                   1.   PERMITTED TRANSFEREE:   The definition of "Permitted
Transferee" is expanded to include all institutional investors, and every
potential investor identified on the list prepared by Berenson Minella &
Company, dated May 3, 1999, as modified from time to time, by the mutual
agreement of LCI and the Trust.

                   2.   PROHIBITED TRANSFEREE:  The definition of "Prohibited
Transferee" is amended such that all institutional investors, and every
potential investor identified on the list prepared by Berenson Minella &
Company dated May 3, 1999, as modified from time to time, by the mutual
agreement of LCI and the Trust, shall not be Prohibited Transferees.

              C.   If any holder of any class of Preferred or Common
Shares of Gaming Holdings has discussions with any prospective transferee of
all or any part of such Shares, the holder shall give written notice to each
other holder of Shares promptly after such discussions.

VIII.    BOARD OF MANAGERS

         A.   GAMING HOLDINGS. The Operating Agreement is amended to provide
that the Board of Managers shall be expanded to seven Board Members and
appointed as follows: (i) Aladdin Enterprises shall appoint three Board
Members and (ii) LCNI shall appoint four Board Members. As of the date of
this Agreement, the Board Members shall be: Jack Sommer, Ronald B. Dictrow
and Richard J. Goeglein as Aladdin Enterprises appointees and Alan L.
Goodenough, G. Barry C. Hardy, William Timmins and one other appointee who
shall be an officer, director or employee of LCI still to be named as LCNI
appointees. This Letter Agreement shall not modify or amend any provision of
the Operating Agreement or the Employment and Consulting Agreement relating
to Richard Goeglein.

         B.   ALADDIN GAMING, LLC. The Board of Managers of Aladdin Gaming,
LLC shall be identical to the Board of Managers of Gaming Holdings.

         C.   ALADDIN MUSIC HOLDINGS, LLC AND ALADDIN MUSIC, LLC. The Board
of Managers of Aladdin Music Holdings, LLC and Aladdin Music, LLC shall each
have six

                                       -7-
<PAGE>

Board Members appointed as follows: (i) the Trust shall appoint three Board
Members and (ii) LCI shall appoint three Board Members.

         D.   FAILURE TO CONTRIBUTE. The Operating Agreement is amended to
provide that the failure of either the Trust or LCI to pay its pro rata share
of Completion Guaranty Payments (i) shall not result in the removal by LCNI,
if LCI has failed to pay its pro rata share, or Aladdin Enterprises, if the
Trust has failed to pay its pro rata share, of one of their respective
designated Board Members and (ii) shall not result in the replacement of Jack
Sommer as Chairman of the Board.

         E.   MEMBER VOTING. The Operating Agreement is amended to eliminate
the requirement of the vote or consent in writing of a Supermajority to take
the following action: any declaration setting aside or payment of any
Distribution with respect to Series A Preferred Shares. All other
Supermajority rights shall remain in effect.

IX.      CONSENTS AND APPROVALS

                 To the extent that any part of this Agreement may require
the consent or approval of any person not a party hereto, this Agreement or
such part thereof shall not be effective until the obtaining of such consent
or approval, and the Parties agree to cooperate and use all reasonable
commercial efforts to obtain such consents or approvals.

X.       MISCELLANEOUS

              A.   SUBSIDIARY.  The Operating Agreement is amended to include
Music within the definition of Subsidiary of Gaming Holdings.

              B.   LCI SECOND HOTEL OPTIONS. Section 6.7 (b), (c) and (d)of
the Amended and Restated Purchase Agreement dated as of February 26, 1998
between LCNI, LCI, Gaming Holdings, Gaming, Aladdin Holdings, LLC, Sommer
Enterprises and the Trust, is hereby deleted.

              C.   RESPONSIBILITY FOR CONSENTS. Each party hereto shall be
solely obliged to obtain any consent, if necessary, (i) from any member,
shareholder, partner of, or other holder of a beneficial interest in, such
party, or (ii) related directly to or arising because of such party and not
applicable to Gaming Holdings in its own capacity.

              D.   FORMAL AMENDMENTS. The Parties agree to enter into a
formal amendment of the Operating Agreement and Contribution Agreement, in
accordance with this Agreement and the November 30, 1998 Letter Agreement and
the March 30, 1999 Letter Agreement (and such further conforming
modifications or amendments to these and other agreements as the parties
mutually agree are necessitated as a result thereof, including the admission
of the Trust (or a designated wholly-owned subsidiary of the Trust or Sommer
Enterprises) as a member of Gaming Holdings, and a more

                                       -8-
<PAGE>

formal Redemption Agreement as promptly as possible after the date hereof; it
being the intention of the parties hereto, that, notwithstanding the
foregoing, the modifications, amendments and agreement provided for herein
shall be effective as of the date hereof. LCNI shall take all necessary
action to discontinue its security interest in any Shares held by the Trust
or Sommer Enterprises.

              E.   NON-DISQUALIFIED STOCK In any event, the terms of all
Preferred Shares described herein shall include such terms as are necessary
so that such Preferred Shares are not Disqualified Stock pursuant to, and as
defined in, the Indenture.

              F.   COUNTERPARTS.    This Agreement may be executed by the
parties hereto in any number of counterparts and on separate counterparts,
each of which shall be an original but all of which together shall constitute
one and the same instrument.

              G.   NON WAIVER CLAUSE. This Agreement is intended by
the Parties to replace the existing mechanism for Completion Guaranty
Payments. Except as expressly provided herein, or as may be expressly
provided in the formal amendments to the Operating Agreement and Contribution
Agreement, this Agreement shall not modify any right, duty, privilege,
obligation or remedy, in contract or law arising out of or related to the
Completion Guaranty, the Contribution Agreement, the Operating Agreement, the
Indenture, and/or any other contracts or agreements related to the
development, construction or operation of the Aladdin Hotel and Casino
including, but not limited to, any agreements or contracts with a third
party, nor shall entering into this Agreement, or any other act or failure to
act, constitute a waiver of any such right, duty, privilege, obligation or
remedy.

              H.   EFFECTIVENESS. Notwithstanding any other provision in this
Agreement, if the Parties are unable for any reason to effect a transfer of
fifteen percent (15%) of the Common Shares of Gaming Holdings to LCNI upon
conversion of the Series C Convertible Preferred Shares, no part of this
Agreement shall be effective.

              I.   OUTSTANDING LIABILITY. The Trust acknowledges a debt to
LCI of approximately $66,000 bearing interest at the rate of twenty percent
(20%) per annum (the precise amount of the principal indebtedness to be
confirmed by Gaming Holdings) which shall be paid to LCI as soon as
practicable.

                                       -9-
<PAGE>

              Please indicate your agreement to the provisions of this
Agreement by signing the enclosed copy as indicated.

                                         Very truly yours,

                                         TRUST UNDER ARTICLE SIXTH u/w/o
                                         SIGMUND SOMMER

                                         By: /s/ Viola Sommer
                                             ---------------------------------
                                              Viola Sommer, as Trustee and not
                                                        Individually

                                         By: /s/ Jack Sommer
                                             ---------------------------------
                                              Jack Sommer, as Trustee and not
                                                        Individually

                                         By: /s/ Eugene Landsberg
                                             --------------------------------
                                         Eugene Landsberg, as Trustee and not
                                                      Individually

                                       -10-
<PAGE>

AGREED TO this 10th day of
December, 1999

LONDON CLUBS INTERNATIONAL, P.L.C.

By: /s/ William Timmins
    ------------------------------

LONDON CLUBS NEVADA INC.

By: /s/ William Timmins
    ------------------------------

ALADDIN GAMING HOLDINGS, LLC

By: /s/ Jack Sommer
    ------------------------------

SOMMER ENTERPRISES, LLC

By: /s/ Jack Sommer
    ------------------------------

ALADDIN GAMING ENTERPRISES, INC.

By: /s/ Jack Sommer
    ------------------------------

GAI, LLC

By: /s/ Richard J. Goeglein
    ------------------------------

                                       -11-
<PAGE>

With respect to Article X. B only;

AGREED to this 10th day of December, 1999

ALADDIN HOLDINGS, LLC

By: /s/ Jack Sommer
    -----------------------------

                                       -12-
<PAGE>

                                                              February 23, 2000

London Clubs International, plc
10 Brick Street
London WTY 8HQ, England

London Clubs Nevada Inc.
c/o Aladdin Gaming, LLC
831 Pilot Road
Las Vegas, Nevada  89119

         Re: (i) Restructure Letter Agreement ("Restructure Agreement"), dated
         as of December 12, 1999, between the Trust under Article Sixth u/w/o
         Sigmund Sommer (the "Trust"), Aladdin Holdings, LLC ("Aladdin
         Holdings"), London Clubs International, plc ("LCI"), London Clubs
         Nevada ("LCNI"), Aladdin Gaming Holdings, LLC ("Gaming Holdings") ,
         Sommer Enterprises, LLC ("Sommer Enterprises") Aladdin Gaming
         Enterprises, Inc. ("Gaming Enterprises") and GAI, LLC (GAI"); (ii)
         Operating Agreement, as amended, ("Operating Agreement") of Gaming
         Holdings, dated as of February 26, 1998 and (iii) Contribution
         Agreement, as amended, ("Contribution Agreement"), dated as of
         February 26, 1998 between the Trust, Aladdin Holdings, Sommer
         Enterprises, LCI and LCNI.
         ----------------------------------------------------------------------

Ladies and Gentlemen:

         Reference is made to that certain Facilities Agreement ("Facilities
Agreement"), dated as of June 26, 1998, as amended, between General Electric
Capital Corporation ("GECC") for itself and as agent for certain
participants, and Aladdin Gaming, LLC ("Gaming"). Capitalized terms used but
not defined herein shall have the meanings assigned to them in the relevant
above listed agreements.

         The Facilities Agreement provides for $80 million of FF&E financing
consisting of a term loan of $20 million and operating leases of $60 million;
no funding has occurred pursuant to the Facilities Agreement. Gaming needs to
begin purchasing certain FF&E items as soon as practicable. Said items are to
be ordered by Leonard Parker Company ("Parker"). Prior to ordering the items,
Parker requires that Gaming

                                       -13-
<PAGE>

deliver letters of credit in the total amount of $5 million (the "LCs") and
to make cash deposits in the combined amount of approximately $900,000 (the
"Cash Deposit", and together with the LCs, the "Deposit Amounts"). In
connection with the payment of the above Deposit Amounts, the Trust, LCI,
LCNI, Sommer Enterprises, GAI and Gaming Holdings hereby agree as follows:

         1.   The Trust and LCI shall pay the Deposit Amounts, and all costs
and expenses directly related to the payment of the Deposit Amounts,
including, without limitation, bank fees, in proportion to their respective
Contribution Percentage set forth in the Contribution Agreement with respect
to Completion Guaranty Payments (i.e., 60% in the case of the Trust and 40%
in the case of LCI).

         2.   The Trust acknowledges that as of the date of this Agreement it
is not able to contribute any portion of the Deposit Amounts. The Trust
repeats, reiterates and confirms its explicit contractual agreement to use
all reasonable efforts and use all available resources to liquefy, reassign
or monetize its assets so that it may fulfil its obligation to pay its
proportionate share of the Deposit Amounts.

         3.   On behalf of Gaming, LCI shall cause the following four LCs to
be opened when required, for the benefit of Parker:

              (i)    in the amount of $1 million, expiring on May 31, 2000;
              (ii)   in the amount of $1 million, expiring on June 30, 2000;
              (iii)  in the amount of $1 million, expiring on July 31, 2000; and
              (iv)   in the amount of $2 million, expiring on August 17, 2000.

On behalf of Gaming, LCI shall also cause the Cash Deposit to be paid when
required to Parker or as directed by Parker. The Cash Deposit and any amounts
drawn on the LC shall be repaid to LCI by GECC pursuant to the Facilities
Agreement or by Parker.

         4.   The Trust agrees that if at any time prior to the expiration of
any one or more of the LCs it has liquefied its assets sufficiently or
otherwise has put itself in a position to contribute all or part of its pro
rata share of the Deposit Amounts, it shall immediately reimburse LCI for
that amount up to sixty (60%) percent of the amounts, if any, which have been
drawn down under the LCs, and, to the extent that the Trust is in a position
to do so, produce LCs in an amount up to sixty (60%) percent of the then
outstanding LCs.

         5.   The Deposit Amounts shall be treated as, but shall not be
deemed, Completion Guaranty Payments pursuant to the Restructure Agreement
and the Operating Agreement. Specifically, the Operating Agreement is amended
to provide:

              (i)    If all or any part of the Cash Deposit is not repaid to
LCI, by GECC or otherwise, on or before thirty (30) days after the Opening
Date ("Deposit Due Date"), Series A and D Preferred Shares of Gaming Holdings
shall be issued to LCNI in an amount corresponding to the outstanding amount
(the "Deposit Delinquent Amount") as if the Series A and D Preferred Shares
had been issued on the date or dates the

                                       -14-
<PAGE>

Deposit Delinquent Amount(s) were paid to Parker or as directed by Parker.
LCNI's Capital Account with respect to Series A Preferred Shares shall be
increased by the Deposit Delinquent Amount.

              (ii)   If all or any part of the LCs are drawn upon by Parker
and such drawn upon amount (the "Drawn Amount") is not repaid to LCI, by GECC
or otherwise, by the Deposit Due Date, Series A and D Preferred Shares of
Gaming Holdings shall be issued to LCNI in an amount that shall correspond to
the Drawn Amount(s) as if the Series A and D Shares had been issued on the
respective date or dates on which the LC was drawn down. LCNI's Capital
Account with respect to Series A Preferred Shares shall be increased by the
Drawn Amount(s).

              (iii)  In the event that LCI is reimbursed for all or any part
of the Deposit Delinquent Amount or Drawn Amount ("Reimbursed Amount") after
the Deposit Due Date, and Series A and D Preferred Shares have been issued to
LCNI as set forth in (i) and (ii) above, LCI and LCNI shall have the option
either (x) to refuse the Reimbursed Amount, retain Series A and D Preferred
Shares held by LCNI in an amount equal to the Reimbursed Amount (which shares
shall continue to be subject to the redemption rights set forth in paragraph
VI of the Restructure Agreement) and have no adjustment made to LCNI's
Capital Account with respect to the Series A and D Preferred Shares; or (y)
to accept the Reimbursed Amount in redemption of Series A and D Preferred
Shares held by LCNI in an amount equal to the Reimbursed Amount, or in the
event that the Trust has paid the Reimbursed Amount, to cause Series A and D
Preferred Shares in an amount equal to the Reimbursed Amount to be
transferred to the Trust or Sommer Enterprises (or other Trust Affiliate
designated by the Trust). In either case, LCNI shall retain the Series A and
D Preferred Returns with respect to the shares, whether previously
distributed or not, through the date of payment of the Reimbursed Amount.

              (iv)   In the event that the issuance of the Series A and D
Preferred Shares as set forth in this section shall not be permitted in
accordance with the Discount Note Indenture, the parties hereto shall provide
for some equivalent manner of evidencing such contributions mutually
agreeable to the parties.

         6.   The Operating Agreement and the Restructure Agreement are both
amended to provide that in all situations where Series A and D Preferred
Shares are issued, such shares shall provide a combined preferred return
equal to the return earned on the Series E Preferred Shares (I.E., thirty
(30%) percent).

         7.   Upon receipt of evidence thereof, the Trust shall promptly
reimburse LCI for sixty (60%) percent of all costs and expenses of LCI
directly related to the payment of the Deposit Amounts (other than the
Deposit Amounts themselves), including, without limitation, bank fees, and
the reasonable fees and expenses of counsel incurred in connection with the
negotiation and documentation of this letter agreement.

                                       -15-
<PAGE>

         8.   The parties hereto agree to enter into a formal amendment to
the Operating Agreement, in accordance with Paragraph 3 hereof (and such
further conforming modifications as the parties mutually agree are
necessitated as a result thereof, if any), as promptly as possible after the
date hereof; it being the intention of the parties hereto that,
notwithstanding the foregoing, the modifications provided for herein shall be
effective as of the date hereof.

         This letter agreement may be executed by the parties hereto in any
number of counterparts and on separate counterparts, each of which shall be
an original but all of which together shall constitute one and the same
instrument.

            [The remainder of this page has been left blank intentionally.]

                                       -16-
<PAGE>

         Please indicate your agreement to the provisions of this letter
agreement by signing the enclosed copy as indicated.

                                  Very truly yours,

                                  TRUST UNDER ARTICLE SIXTH u/w/o
                                  SIGMUND SOMMER

                                  By: /s/ Viola Sommer
                                      ------------------------------------
                                      Viola Sommer, as trustee and not
                                                individually

                                  By: /s/ Jack Sommer
                                      ------------------------------------
                                      Jack Sommer, as trustee and not
                                              individually

                                       -17-
<PAGE>

Agreed to this 23rd day of
February, 2000

LONDON CLUBS INTERNATIONAL, P.L.C.

By: /s/ William Timmins
    -------------------------------

LONDON CLUBS NEVADA INC.

By: /s/ William Timmins
    -------------------------------

ALADDIN GAMING HOLDINGS, LLC

By: /s/ Jack Sommer
    -------------------------------

SOMMER ENTERPRISES, LLC

By: /s/ Jack Sommer
    -------------------------------
ALADDIN GAMING ENTERPRISES, INC.

By:/s/ Jack Sommer
   --------------------------------

GAI, LLC

By:/s/ Richard J. Goeglein
   ---------------------------------

                                       -18-

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